ENABLING
MOTION
ENHANCING
PROGRESS
A N N U A L R E P O R T / 2 0 1 6
KEY
FIGURES
IN EUR MILLIONS
Revenue
EBIT
Adjusted EBIT
Profit for the period
Capital expenditure
Free cash flow (FCF)
Adjusted FCF
EBIT as % of revenue
Adjusted EBIT as % of revenue
Profit in % of revenue
Capital expenditure as % of revenue
FCF in % of revenue
Adjusted FCF in % of revenue
CHANGE
% CHANGE
126.2
20.9
22.6
31.0
(2.2)
20.6%
37.5%
29.7%
>100,0%
4.3%
(273.2)
<(100,0)%
22.5
64.7%
Year ended Sept 30,
2016
737.5
76.6
98.8
48.0
(53.7)
(238.4)
57.3
10.4%
13.4%
6.5%
7.3%
(32.3)%
7.8%
2015
611.3
55.7
76.2
17.0
(51.5)
34.8
34.8
9.1%
12.5%
2.8%
8.4%
5.7%
5.7%
FCF = cash flow from operating activities + cash flow from investing activities
Adjusted FCF = FCF before acquisitions
REVENUE BY MARKETS
REVENUE BY REGION
(LOCATION OF STABILUS COMPANY)
1 1
9
3
5
0
50%
39%
11%
Europe
NAFTA
Asia / Pacific and RoW
30
23 4 3
27
4
3
70
70%
43%
27%
30%
23%
3%
4%
Automotive Buisiness
Automotive Gas Spring
Automotive Powerrise
Industrial Buisiness
Industrial / Capital Goods
Vibration & Velocity Control
Swivel Chair
ENABLING
MOTION
ACROSS ALL
INDUSTRIES
As one of the world’s leading providers of gas
springs, damping solutions and electromechani-
cal drives, we have been showing our expertise
for eight decades: In the automotive industry,
mechanical engineering, renewable energies,
the furniture sector, house and building tech-
nology and a variety of other sectors such as
medical products and rehabilitation equipment.
Our gas springs, dampers and electromechan-
ical POWERISE drives optimize opening, closing,
lifting, lowering and adjusting actions and pro-
vide protection against vibration.
1
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17
Production
sites
Production Powerise
Production Gas springs
Production Vibration & Velocity Control
Sales office / Representation
Stabilus S.A.
New Zealand Auckland
Australia Dingley
CON-
TENTS
0
4
A
TO OUR SHAREHOLDERS
06
Letter from the Chief Executive Officer
08
Report of the Supervisory Board
International Management Team
10
12 Enabling Motion Enhancing Progress
34 Stabilus Share
B
COMBINED MANAGEMENT
REPORT
39 General
Strategy
39
Business and General Environment
41
Significant Events
43
44
Results of operations
48 Development of operating segments
49
51
53
Financial position
Liquidity
Statutory results of operations and financial
position of Stabilus S.A.
Risks and opportunities
53
59 Corporate Governance
61
Subsequent events
61 Outlook
C
D
E
CONSOLIDATED FINANCIAL STATEMENTS
65 Consolidated Statement of Comprehensive Income
66 Consolidated Statement of Financial Position
68 Consolidated Statement of Changes in Equity
69 Consolidated Statement of Cash Flows
70 Notes to Consolidated Financial Statements
135 Responsibility Statement
136 Management Board of Stabilus S.A.
137 Supervisory Board of Stabilus S.A.
138 Independent Auditor’s Report
ANNUAL ACCOUNTS
142 Balance Sheet
144 Profit and Loss Account
145 Notes to the Annual Accounts
Independent Auditor’s Report
153
ADDITIONAL INFORMATION
156 Financial Calendar
156 Disclaimer
157 Table Directory
159
Information Resources
STABILUSTO OUR SHAREHOLDERS
A
C H A P T E R A
S
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B
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5
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S
R
E
D
L
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R
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H
S
R
U
O
O
T
TO OUR
SHARE-
HOLDERS
LETTER FROM
THE CHIEF
EXECUTIVE
OFFICER
0
6
Dear Shareholders, Customers,
Business Partners, Employees,
Ladies and Gentlemen,
We set ourselves ambitious targets for the 2016 fiscal year and
met all of them. This means we can look back on a year that was
dynamic, eventful and successful in equal measure. In the past fiscal
year, our sales rose by more than 20% to €737.5 million – making it a
further record year for our company. We successfully and profitably
continued our organic growth across all segments and sales markets.
Our claim is to be the world’s leading company for systems and solu-
tions to initiate, control and damp motion. The acquisition of ACE,
Hahn Gasfedern, Fabreeka and Tech Products in summer 2016 repre-
sented an important step in this long-term growth strategy and
allowed us to achieve several strategic objectives at once, expanding
our expertise in motion control and vibration damping while also
strengthening our industrial business. The transaction forms part of our
systematic development into a comprehensive supplier for motion
control and serves to expand our portfolio of future-oriented product
solutions that ideally complement our product range. It also allowed
us to welcome the highly committed employees of these companies
to Stabilus.
Thanks to rapid reaction times for industrial solutions for small
batch sizes, we are now gaining access to new customer groups and
industries. Strategically, the acquisition has also made us less dependent
on the cycles of individual industries. Following the completion of the
acquisition, the ratio of automotive to industrial sales has returned to
our long-term target level.
The companies acquired have made a contribution to consoli-
dated sales from the fourth quarter of the 2016 fiscal year onwards
and have been allocated to Stabilus' industrial business. This there-
fore comprises three business segments: “Industrial / Capital Goods”,
which now includes Hahn Gasfedern; “Swivel Chair”; and “Vibration &
Velocity Control”, which includes ACE, Fabreeka and Tech Products.
We assessed the market in depth to identify the companies that
could accelerate our development while also ideally complementing
our Group. This process is now paying off. The integration of the
acquired companies is proceeding extremely well, and we will be able
to quickly realize the expected added value from joint market cultiva-
tion. The corporate cultures are a good fit and the new employees
share our passion and enthusiasm for our growth strategy. Following
these acquisitions, we renewed our financing and go into the 2017
business year with a significantly higher equity ratio and long-term
financing agreed at attractive interest terms. Stabilus therefore has
stable financial foundations on which to realize our operational devel-
opment potential.
We invested significantly in the expansion and optimum use of
our existing structures in the past fiscal year in order to ensure the
further growth of the Stabilus Group. Stabilus is continuing to benefit
from the three megatrends of demographic development, growing
demand for comfort and higher standards in occupational health and
safety. By expanding our production capacity in Germany, China, Mex-
ico, Romania and the USA, we are creating the basis for further growth
in the Europe, NAFTA and Asia regions. Regional production allows us
STABILUSTO OUR SHAREHOLDERS to address the respective markets more quickly and work with our cus-
tomers extremely successfully on a local basis. In China, we have
expanded production to include products for our industrial business.
We also started to manufacture POWERISE drives for our local custom-
ers in June 2016.
In the NAFTA region, a new damper production line in Mexico
began operations in early 2016 in response to rising demand in the solar
segment in particular, while the plant in Gastonia, USA, has been aug-
mented with a high-performance, fully automated gas-spring facility.
We also made significant investments at our main plant in
Koblenz in the 2016 fiscal year. In addition to a new fully automated
production line for gas springs and dampers, new grinding lines, a new
wastewater treatment facility and a combined heat and power plant
are contributing to the further modernization of the site, which plays a
central role in our strategy for the European market.
Our innovations were also successfully marketed in the past fiscal
year. For instance, our POWERISE drives are now being used in indus-
trial business for the first time with their application in centrifuges for
blood banks. Along with the wing doors of the Tesla Model X, this is
already the second non-tailgate application for POWERISE. We regard
this product group as a further source of strong potential. Production
figures also show that our optimism is not misplaced: The ten millionth
POWERISE drive was produced in the past fiscal year. We regard inno-
vations as a key factor in attaining our long-term targets, which is why
we have realigned our innovation process. As one of the world’s lead-
ing companies in the motion-control sector, we are not only meeting
customers’ wishes but also continuously generating impetus in the
markets through innovations.
In the past fiscal year, automotive sales enjoyed strong growth of
18.7% to €515.3 million. Industrial sales also rose sharply by 25.5%
to €222.2 million. The trend towards SUVs and sales of POWERISE
drives were major growth drivers in the automotive segment, with the
latter increasing by 39.7% from €139.8 million to €195.3 million. In the
area of industrial business, strong organic growth was accompanied by
the consolidation of the newly acquired companies starting from the
fourth quarter, which made a positive sales contribution of €27.3 mil-
lion compared with the previous year. Our regional performance shows
that our products are in demand around the world, with double-digit
growth in Europe, NAFTA, Asia / Pacific and RoW (Rest of World).
7
0
while net income also increased significantly from €17.0 million in the
2015 fiscal year to €48.0 million in the 2016 fiscal year. We want our
shareholders to participate in this development and will propose a div-
idend of €0.50 per share to the forthcoming Annual General Meeting.
We are seeing an unabated trend towards the increased use of
gas springs, electromechanical drives and vibration damping solutions
across a wide range of industries. The newly acquired companies will
contribute to the Group’s continued growth. As a result, we are fore-
casting sales of €865 million for the 2017 fiscal year, corresponding to
a growth rate of 17.3%. In terms of earnings, we are anticipating an
adjusted EBIT margin of 13% to 14%.
I would like to take this opportunity to thank our shareholders
for the confidence they have shown in Stabilus, which was also
clearly demonstrated in the context of our successful capital increase
in July 2016. On behalf of the entire management team, I would also
like to thank our long-serving employees and the new colleagues who
have joined us as a result of the acquisitions. Their valuable contribu-
tion forms the backbone for our success as a company. Many thanks
are also due to our customers for their loyalty and commitment to
quality and to our business partners for the strong partnership we
enjoy, which dates back many years in some cases.
We have big plans for the 2017 fiscal year as well and will be
delighted if you would continue to accompany us on our growth path.
Yours sincerely,
We are proud to have also achieved earnings growth in spite of
the necessary substantial investments in our company. At €98.8 mil-
lion, adjusted EBIT was around 29.7% higher than in the previous year,
D I E T M A R S I E M S S E N
CEO
STABILUSTO OUR SHAREHOLDERS REPORT OF THE
REPORT OF THE
SUPERVISORY
SUPERVISORY
BOARD
BOARD
0
8
The Supervisory Board was involved in the main projects of Stabi-
lus. In particular, the Board of Management informed the Supervisory
Board in all Supervisory Board Meetings in detail about the acquisition
of ACE, Hahn, Fabreeka and Tech Products. Also, the Board of Manage-
ment provided information in regard to the capital increase and other
financing aspects in connection with this acquisition. As far as approv-
als by the Supervisory Board were required for these topics, the
Management Board applied for such approvals timely and provided
all information necessary for a proper assessment by the Supervisory
Board.
The Board of Management regularly provided reports about
Stabilus’ business performance in the various geographic markets
(operating segments) and about Stabilus products. Major invest-
ments of the Group companies, in particular investments for capacity
extensions in key markets, were presented to and approved by the
Supervisory Board. The Board of Management reported also about
cost and quality matters as well as other operational topics related to
Stabilus’ products.
Audit Committee and Remuneration Committee
Material questions concerning auditing, accounting, risk man-
agement and compliance and respective controls and systems have
been discussed in Audit Committee meetings. The Audit Committee
discussed in particular the quarterly reports. During the reporting
period, the Audit Committee held five meetings and two meetings
since the beginning of the current fiscal year.
Remuneration matters and the adequacy of the Management
Board compensation have been discussed by the Remuneration Com-
mittee. During the reporting period, the Remuneration Committee
held five meetings and one meeting since the beginning of the current
fiscal year.
Dear Shareholders,
During the reporting period from October 1, 2015 to September
30, 2016, the Supervisory Board of Stabilus S.A. performed its tasks
and monitored the management activities of the Board of Manage-
ment in accordance with legal requirements and the Articles of Asso-
ciation of Stabilus S.A. The Board of Management and the Supervi-
sory Board maintained close and regular contacts. The Supervisory
Board advised the Board of Management in regard to strategic and
operational decisions as well as governance topics and decided on
matters requiring supervisory approval.
Cooperation with the Board of Management
The Board of Management reported regularly, promptly and
extensively in verbal and written form to the Supervisory Board regard-
ing the position and performance of the Company and the Stabilus
Group, including its commercial position as well as its key financial
data. Furthermore, the Board of Management informed the Supervi-
sory Board on a regular basis concerning the future business policy,
including the strategic and organizational direction of the Group.
Between Supervisory Board meetings, of which there were nine in total
during the last fiscal year and so far two in the current fiscal year,
Stabilus’ management kept the Chairman of the Supervisory Board
informed about new developments.
STABILUSTO OUR SHAREHOLDERS 9
0
Drawing up of the Financial Statements
The Supervisory Board examined the Company’s stand-alone
annual accounts, the consolidated financial statements and the man-
agement report for the financial year ending on September 30, 2016.
Representatives of the auditor KPMG Luxembourg Société Coopérative
attended the meetings of the Audit Committee on November 23, 2016
and on December 13, 2016 at which the 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 objections to the Compa-
ny’s annual accounts or to the consolidated financial statements
drawn up by the Board of Management for the financial year ending
on September 30, 2016 and to the auditors’ presentation. According
to the recommendation of the Audit Committee, the Supervisory
Board agreed to the proposal of the Board of Management to
approve both, the Company’s annual accounts and the consolidated
financial statements for fiscal year 2016. The auditor issued unqual-
ified audit opinions on December 13, 2016.
On behalf of the Supervisory Board, I want to thank the Board
of Management for the open and effective collaboration during the
year, the Stabilus employees for their excellent contributions to the
Company’s success as well as our shareholders for the trust they
place in Stabilus.
Luxembourg, December 13, 2016
On behalf of the Supervisory Board of Stabilus S.A.
U D O S T A R K
Chairman of the Supervisory Board
STABILUSTO OUR SHAREHOLDERS INTERNATIONAL
MANAGEMENT
TEAM
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01
02
03
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05
06
07
STABILUSTO OUR SHAREHOLDERS 01
P I N K , J O H A N N E S
Vice President
Global Operations
02
T I A N , X U E F E N G ( A L E X )
Country Head
China
03
R O L A N D, J Ü R G E N
Vice President Business Unit
Vibration & Velocity Control
05
K A D E N B A C H , E K K E H A R D
Vice President
Global Purchasing
06
S I E M S S E N , D I E T M A R
Chief Executive Officer
09
H I N C K , M I C H A E L
Country Head
Japan
13
H U B E R , R A L P H
Vice President
Business Unit Industrial
10
H Ä R I N G, F R E D
Vice President
Business Unit Swivel Chair
14
W I L H E L M S, M A R K
Chief Financial Officer
07
S A B E T, DAV I D
Vice President
Business Unit Powerise
11
B A L M E R T, J O A C H I M
Vice President
Quality Management
15
H A B A , A N T H O N Y
Regional Head
NAFTA
04
S A N D E R , K A R S T E N
Vice President
Business Unit Automotive
08
W I D M E R , M A R T I N A
Vice President
Global HR
12
L E E , J O O N G - H O ( J A M E S )
Country Head
Korea
08
09
10
11
12
13
14
15
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STABILUSTO OUR SHAREHOLDERS ENABLING
MOTION
ENHANCING
PROGRESS
S
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T
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S
Invisible
support
There was no indication that products such as gas springs,
hydraulic dampers and indeed POWERISE would go on to become so
prominent in all areas of everyday life when Stabilus was founded in
1934. Back then, the first product was the STABILISATOR, which was
aimed at helping to improve the road handling of US automobiles and
also gave the company its name.
After the Second World War, production was extended to damp-
ers, and in 1962, Stabilus started series production of LIFT-O-MAT gas
springs. Shortly afterwards, the first locking gas springs, named BLOC-
O-LIFT, were launched. The success of these two product ranges, used
in automotive engineering and the furniture industry, enabled a com-
prehensive expansion of production.
In the 1950s, export business marked the start of the company’s
internationalization, which gained momentum in the 1970s with the
first subsidiary in the Americas. This approach is still rigorously applied
today with production locations in nine countries around the world
and sales partners in over 50 countries.
System supplier for the automotive industry
In 2002, the start of production of the forerunner to today’s elec-
tromechanical POWERISE system for opening and closing lids and
more marked a major milestone in the company’s history: In subse-
quent years, with the POWERISE product range, Stabilus progressively
evolved from a manufacturer of individual components to a system
provider for the international automotive supply industry. As well as
designing the optimum gas springs for tailgates, trunk lids and other
moving vehicle parts, Stabilus is now also responsible for the desired
kinematics as a system supplier, actively helping its customers to
develop custom solutions to their specific requirements.
To date, more than ten million Stabilus POWERISE drives have
been brought into the market. POWERISE has shown a very successful
development since its commercial launch. Today, electromechanical lid
drives are used not only in top-of-the-range vehicles but also increas-
ingly in mid-range and compact vehicles. The upcoming vehicle manu-
facturer Tesla is also setting innovative trends with eye-catching wing
doors in the Model X – powered by POWERISE.
S
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Great prospects
The success of POWERISE products and Stabilus gas springs and
dampers is being driven by three global megatrends: A growing and
aging global population, a growing convenience-loving middle class in
developed countries and emerging nations and global progress in
compliance with occupational health and safety standards. The impact
of these megatrends will continue to provide a further powerful boost
to demand for Stabilus products in the future. Many of our solutions
help people to lift, lower, open or close things easily, while others pro-
tect against potentially damaging impacts or vibrations. Key industries
such as regenerative energies, the automotive industry, automation
engineering, agricultural and construction machinery, aviation,
shipping and medical and rehabilitation equipment therefore rely on
the expertise of Stabilus right from the development of optimized
motion sequences.
Stabilus used the past fiscal year to achieve an important step in
its strategy and develop into an end-to-end provider for motion con-
trol: The acquisition of ACE, Hahn Gasfedern and Fabreeka, Tech Prod-
ucts considerably increased the product range for industrial business
and allowed Stabilus to tap into further customer groups and applica-
tions. The strategic aim of the acquisition was to add attractive new
product offerings and enable a swift, flexible response to demands of
different batch sizes. With this transaction, Stabilus has further reduced
its dependence on individual sectors and economic cycles. Stabilus will
therefore be an even more prominent player as a leading manufacturer
of “invisible aids” for day-to-day life now and in the future.
DETAILS
DECIDE...
1
4
STABILUSTO OUR SHAREHOLDERS ...ON THE
SUCCESS OF
REVOLUTIONARY
INNO VATIONS
POWERISE opens the Falcon Wing doors of the Tesla Model X and much moreElectric mobility will be a key factor in the development of car mobility in the years ahead. While around 500,000 electric vehicles were sold worldwide in 2015, industry experts expect sales to rise to 10 million units by 2020 and envisage further strong growth in the years beyond. The expansion of electric mobility also involves ongoing digitalization of key vehicle functions, which constitutes another future trend. For instance, the proportion of vehicles that provide wide-ranging assistance systems up to semi-autonomous driving has been rising sharply for years. Subject to the corresponding legal framework, multiple manufacturers are also close to market maturity with the develop-ment of entirely driverless vehicles. These tech-nologies are mainly being used in electric vehi-cles to begin with, although they could also feature increasingly in conventional automo-biles in the years ahead.Digitalization of convenience features requires powerful electric drivesHowever, beyond autonomous driving, increasing digitalization is also shaping many other aspects of car mobility, including the enhancement of numerous functions that are meeting customers’ growing demand for con-venience. As well as requiring considerable IT expertise, reliable control of vehicle doors, tail-gates, lids, etc. via smartphone apps or sensors only works in combination with electric drives that convert the control signals into motion in a reliable and targeted way. The trends of electric mobility, autono-mous driving and digitalization are overlapping with the sharp rise in recent years in the market share of SUVs and multi-purpose vehicles, which provide sufficient room for the growing space and convenience requirements of a discerning clientele. Electric POWERISE drives from Stabilus for the tailgates, lids or doors of automobiles are a hugely popular convenience function as a result of this development. As well as in the top-of-the-range segment, they are also being installed in mid-range and compact vehicles with rapidly increasing frequency. Around 50 car models now boast this convenience feature. One example of how much growth poten-tial there is with further innovative applications for POWERISE drives is the Falcon Wing doors that have gone into series production for the first time in the new Tesla Model X. This is a rev-olutionary concept for accessing the rear seats of a vehicle. With sophisticated kinematics, an innovative sensor system and eight POWERISE drives per vehicle, they take up much less space when opening than conventional vehicle doors while also making it easier for passengers to get in and out of the vehicle. Another POWERISE drive opens and closes the trunk lid. The future will bring further new applications of the POWERISE technology for the automotive and industrial business.Eight POWERISE drives make the innovative concept for accessing the rear seats possible.STABILUSTO OUR SHAREHOLDERS17 ...ON THE SUCCESS OF REVOLUTIONARY INNO VATIONS Eight POWERISE drives make the innovative
concept for accessing the rear seats possible.
7
1
POWERISE
opens the
Falcon Wing
doors of the Tesla
Model X and
much more
Electric mobility will be a key factor in the
development of car mobility in the years ahead.
While around 500,000 electric vehicles were
sold worldwide in 2015, industry experts expect
sales to rise to 10 million units by 2020 and
envisage further strong growth in the years
beyond.
legal framework, multiple manufacturers are
also close to market maturity with the develop-
ment of entirely driverless vehicles. These tech-
nologies are mainly being used in electric vehi-
cles to begin with, although they could also
feature increasingly in conventional automo-
biles in the years ahead.
Digitalization of convenience features
requires powerful electric drives
However, beyond autonomous driving,
increasing digitalization is also shaping many
other aspects of car mobility, including the
enhancement of numerous functions that are
meeting customers’ growing demand for con-
venience. As well as requiring considerable IT
expertise, reliable control of vehicle doors, tail-
gates, lids, etc. via smartphone apps or sensors
only works in combination with electric drives
that convert the control signals into motion in a
reliable and targeted way.
The expansion of electric mobility also
involves ongoing digitalization of key vehicle
functions, which constitutes another future
trend. For instance, the proportion of vehicles
that provide wide-ranging assistance systems
up to semi-autonomous driving has been rising
sharply for years. Subject to the corresponding
The trends of electric mobility, autono-
mous driving and digitalization are overlapping
with the sharp rise in recent years in the market
share of SUVs and multi-purpose vehicles, which
provide sufficient room for the growing space
and convenience requirements of a discerning
clientele. Electric POWERISE drives from Stabilus
for the tailgates, lids or doors of automobiles are
a hugely popular convenience function as a
result of this development. As well as in the top-
of-the-range segment, they are also being
installed in mid-range and compact vehicles
with rapidly increasing frequency. Around 50 car
models now boast this convenience feature.
One example of how much growth poten-
tial there is with further innovative applications
for POWERISE drives is the Falcon Wing doors
that have gone into series production for the
first time in the new Tesla Model X. This is a rev-
olutionary concept for accessing the rear seats
of a vehicle. With sophisticated kinematics, an
innovative sensor system and eight POWERISE
drives per vehicle, they take up much less space
when opening than conventional vehicle doors
while also making it easier for passengers to get
in and out of the vehicle. Another POWERISE
drive opens and closes the trunk lid. The
future will bring further new applications of the
POWERISE technology for the automotive and
industrial business.
...ON THE SUCCESS OF REVOLUTIONARY INNO VATIONSSTABILUSTO OUR SHAREHOLDERS DETAILS
DECIDE...
1
8
STABILUSTO OUR SHAREHOLDERS ...WHETHER NEW
TECHNOLOGIES
CAN BE TESTED
EFFECTIVELY
Stabilus dampers ensure the reliabil-ity of automotive and industrial productsIn our globalized economy, automotive and industrial firms face major competitive pres-sure as a result of the ever-faster pace of change in end customers’ requirements. Consequently, companies always need to be well ahead with their products in order to enjoy long-term suc-cess. Accordingly, innovation cycles for new products have been getting ever shorter across all sectors for years.In order to increase the pace of develop-ment and achieve the perfect simulation of real use conditions in test runs while also limiting development costs, manufacturers and test agencies operate complex, high-quality testing systems such as driving simulators in the auto-motive industry. If these systems are to deliver precise measurement data reliably and if valua-ble measuring equipment is not to be impaired by vibrations or impacts during testing, they need protection. For example, building founda-tions and large test stations are decoupled from vibrations in the surrounding area using air springs, or the movement system of a driving simulator is protected by safety shock absorbers in the final positions of its movements. Innovations from Stabilus increase safety, service life and convenienceStabilus vibration and motion dampers give valuable technical equipment effective pro-tection against damage and impairments. This is why they are used in all kinds of industrial prod-ucts and systems these days: In test benches and simulators as well as industrial processing machinery, vehicle steering systems and agricul-tural machinery. With its acquisition of the damping and gas-spring specialists ACE, Hahn Gasfedern, Fabreeka and Tech Products in 2016, Stabilus has broadened its profile as a leading provider of industrial damping technology. High-perfor-mance solutions for vibration and shock isola-tion now also form part of the Stabilus product portfolio. The four companies have added numerous innovative solutions for customers from the automation and mechanical-engineer-ing sectors in particular. Easier, stronger, smaller – expert development teams are trans-forming the available expertise into products that meet every customer requirement. As a result, numerous new potential applications arise each year in the context of the Stabilus innovation process.High-performance dampers enable controlled, safe operation of a driving simulator all the way to its end positions.STABILUSTO OUR SHAREHOLDERS21 ...WHETHER NEW TECHNOLOGIES CAN BE TESTED EFFECTIVELY High-performance dampers enable controlled, safe operation of a driving
simulator all the way to its end positions.
1
2
Stabilus dampers
ensure the reliabil-
ity of automotive
and industrial
products
In our globalized economy, automotive
and industrial firms face major competitive pres-
sure as a result of the ever-faster pace of change
in end customers’ requirements. Consequently,
companies always need to be well ahead with
their products in order to enjoy long-term suc-
cess. Accordingly, innovation cycles for new
products have been getting ever shorter across
all sectors for years.
In order to increase the pace of develop-
ment and achieve the perfect simulation of real
use conditions in test runs while also limiting
development costs, manufacturers and test
agencies operate complex, high-quality testing
systems such as driving simulators in the auto-
motive industry. If these systems are to deliver
precise measurement data reliably and if valua-
ble measuring equipment is not to be impaired
by vibrations or impacts during testing, they
need protection. For example, building founda-
tions and large test stations are decoupled from
vibrations in the surrounding area using air
springs, or the movement system of a driving
simulator is protected by safety shock absorbers
in the final positions of its movements.
Innovations from Stabilus increase safety,
service life and convenience
Stabilus vibration and motion dampers
give valuable technical equipment effective pro-
tection against damage and impairments. This is
why they are used in all kinds of industrial prod-
ucts and systems these days: In test benches and
simulators as well as industrial processing
machinery, vehicle steering systems and agricul-
tural machinery.
With its acquisition of the damping and
gas-spring specialists ACE, Hahn Gasfedern,
Fabreeka and Tech Products in 2016, Stabilus
has broadened its profile as a leading provider
of industrial damping technology. High-perfor-
mance solutions for vibration and shock isola-
tion now also form part of the Stabilus product
portfolio. The four companies have added
numerous innovative solutions for customers
from the automation and mechanical-engineer-
ing sectors
in particular. Easier, stronger,
smaller – expert development teams are trans-
forming the available expertise into products
that meet every customer requirement. As a
result, numerous new potential applications
arise each year in the context of the Stabilus
innovation process.
...WHETHER NEW TECHNOLOGIES CAN BE TESTED EFFECTIVELYSTABILUSTO OUR SHAREHOLDERS DETAILS
DECIDE...
2
2
Stabilus gas springs make agricultural machinery more efficientThe world’s population is growing rapidly: In 1927, just two billion people lived on our planet, compared with 7.4 billion people today. Although global population growth is likely to level out in the coming decades, the UN revised its estimate upwards once again in 2015: It now expects 9.7 billion people by 2050, with the figure forecast to rise as high as 11.2 bil-lion by 2100. While the population is growing, land available for agricultural use remained relatively stable at approximately five billion hectares in the period from 2000 to 2013. However, this land is used very unequally: Whereas an EU citi-zen now requires an average of 1.3 hectares of land each to cover their consumption, a resident of Bangladesh only uses a sixth of this area. Even so, due to rising life expectancy worldwide and the growing standard of living, average demand per head is likely to increase, particu-larly in emerging and developing nations. It is therefore hardly surprising that agri-cultural companies are dealing with the ques-tion of how to make agriculture more intensive worldwide and how to make cultivation more efficient and sustainable. Sufficient food sup-plies for the world’s population will only still be possible in 2100 if this is achieved.Technology is the crucial factorAlong with the development of sustainable land-use concepts, efficient fertilizers and the ongoing digitalization of agriculture, state-of-the-art machinery is also increasing productivity in the agricultural industry. These days, success-ful agricultural businesses are extremely effi-ciently organized companies for which low downtimes and the optimum use of machinery are essential aspects of economic efficiency. Harvesting machines such as combine harvest-ers, which can only be deployed in a narrow time frame, represent sizable investments where maximum machine running times are a key suc-cess factor.Stabilus gas springs and dampers help to make agricultural machinery easier, more con-venient and safer to operate and maintain. Leading agricultural machinery manufacturers worldwide are aware of this: For example, the five largest globally established manufacturers are all Stabilus customers. Up to 36 gas springs and dampers are used in modern harvesting machines. Through controlled and damped lift-ing, lowering and adjustment of components such as hoods, tailgates, lids, covers, hatches, doors and seats, they make operation easier for the machine drivers and simplify access for maintenance work. In this way, Stabilus makes a significant contribution to optimal machine utili-zation. This is especially important during the harvest, when farmers are active almost 24 hours a day as the weather permits. Gas springs and dampers therefore help them to make accu-rate investment calculations and ensure that their agricultural production is able to keep pace with the growth in consumer demand.Harvest demands optimum performance from workers and machinery alike. Stabilus products enable convenient and efficient working.STABILUSTO OUR SHAREHOLDERS25STABILUSTO OUR SHAREHOLDERS ...THE
RELIABILITY
OF OUR FOOD
SUPPLY
Stabilus gas springs make agricultural machinery more efficientThe world’s population is growing rapidly: In 1927, just two billion people lived on our planet, compared with 7.4 billion people today. Although global population growth is likely to level out in the coming decades, the UN revised its estimate upwards once again in 2015: It now expects 9.7 billion people by 2050, with the figure forecast to rise as high as 11.2 bil-lion by 2100. While the population is growing, land available for agricultural use remained relatively stable at approximately five billion hectares in the period from 2000 to 2013. However, this land is used very unequally: Whereas an EU citi-zen now requires an average of 1.3 hectares of land each to cover their consumption, a resident of Bangladesh only uses a sixth of this area. Even so, due to rising life expectancy worldwide and the growing standard of living, average demand per head is likely to increase, particu-larly in emerging and developing nations. It is therefore hardly surprising that agri-cultural companies are dealing with the ques-tion of how to make agriculture more intensive worldwide and how to make cultivation more efficient and sustainable. Sufficient food sup-plies for the world’s population will only still be possible in 2100 if this is achieved.Technology is the crucial factorAlong with the development of sustainable land-use concepts, efficient fertilizers and the ongoing digitalization of agriculture, state-of-the-art machinery is also increasing productivity in the agricultural industry. These days, success-ful agricultural businesses are extremely effi-ciently organized companies for which low downtimes and the optimum use of machinery are essential aspects of economic efficiency. Harvesting machines such as combine harvest-ers, which can only be deployed in a narrow time frame, represent sizable investments where maximum machine running times are a key suc-cess factor.Stabilus gas springs and dampers help to make agricultural machinery easier, more con-venient and safer to operate and maintain. Leading agricultural machinery manufacturers worldwide are aware of this: For example, the five largest globally established manufacturers are all Stabilus customers. Up to 36 gas springs and dampers are used in modern harvesting machines. Through controlled and damped lift-ing, lowering and adjustment of components such as hoods, tailgates, lids, covers, hatches, doors and seats, they make operation easier for the machine drivers and simplify access for maintenance work. In this way, Stabilus makes a significant contribution to optimal machine utili-zation. This is especially important during the harvest, when farmers are active almost 24 hours a day as the weather permits. Gas springs and dampers therefore help them to make accu-rate investment calculations and ensure that their agricultural production is able to keep pace with the growth in consumer demand.Harvest demands optimum performance from workers and machinery alike. Stabilus products enable convenient and efficient working.STABILUSTO OUR SHAREHOLDERS25 ...THE RELIABILITY OF OUR FOOD SUPPLY Harvest demands optimum performance from
workers and machinery alike. Stabilus products
enable convenient and efficient working.
land is used very unequally: Whereas an EU citi-
zen now requires an average of 1.3 hectares of
land each to cover their consumption, a resident
of Bangladesh only uses a sixth of this area.
Even so, due to rising life expectancy worldwide
and the growing standard of living, average
demand per head is likely to increase, particu-
larly in emerging and developing nations.
It is therefore hardly surprising that agri-
cultural companies are dealing with the ques-
tion of how to make agriculture more intensive
worldwide and how to make cultivation more
efficient and sustainable. Sufficient food sup-
plies for the world’s population will only still be
possible in 2100 if this is achieved.
Technology is the crucial factor
Along with the development of sustainable
land-use concepts, efficient fertilizers and the
ongoing digitalization of agriculture, state-of-
the-art machinery is also increasing productivity
in the agricultural industry. These days, success-
ful agricultural businesses are extremely effi-
ciently organized companies for which low
downtimes and the optimum use of machinery
are essential aspects of economic efficiency.
Harvesting machines such as combine harvest-
ers, which can only be deployed in a narrow
time frame, represent sizable investments where
maximum machine running times are a key suc-
cess factor.
Stabilus gas
springs make
agricultural
machinery more
efficient
The world’s population is growing rapidly:
In 1927, just two billion people lived on our
planet, compared with 7.4 billion people today.
Although global population growth is likely to
level out in the coming decades, the UN revised
its estimate upwards once again in 2015: It
now expects 9.7 billion people by 2050, with
the figure forecast to rise as high as 11.2 bil-
lion by 2100.
While the population is growing, land
available for agricultural use remained relatively
stable at approximately five billion hectares in
the period from 2000 to 2013. However, this
5
2
Stabilus gas springs and dampers help to
make agricultural machinery easier, more con-
venient and safer to operate and maintain.
Leading agricultural machinery manufacturers
worldwide are aware of this: For example, the
five largest globally established manufacturers
are all Stabilus customers. Up to 36 gas springs
and dampers are used in modern harvesting
machines. Through controlled and damped lift-
ing, lowering and adjustment of components
such as hoods, tailgates, lids, covers, hatches,
doors and seats, they make operation easier for
the machine drivers and simplify access for
maintenance work. In this way, Stabilus makes a
significant contribution to optimal machine utili-
zation. This is especially important during the
harvest, when farmers are active almost 24
hours a day as the weather permits. Gas springs
and dampers therefore help them to make accu-
rate investment calculations and ensure that
their agricultural production is able to keep pace
with the growth in consumer demand.
...THE RELIABILITY OF OUR FOOD SUPPLYSTABILUSTO OUR SHAREHOLDERS DETAILS
DECIDE...
2
6
Stabilus dampers strengthen solar panels Global generation of solar power is grow-ing quickly year by year. While units with a total power output of just five gigawatts (GW) were installed worldwide in 2005, the figure was already 227 GW in 2015 – an almost fifty- fold increase in just a decade, and it continues to rise. Since the turn of the century, climate change, the essentially finite nature of fossil-en-ergy production and the growing move away from nuclear power in some parts of the world have given a significant boost to the global expansion of renewable energies – and solar energy is prominent among them. To date, sev-eral billion euros have been spent on subsidies for renewable energies. Consequently, the past decade was characterized by significant expan-sion in renewable-energy production as well as the development of the underlying technologies. State funding is now being scaled back. The new objective is grid parity, i.e. the competitiveness of renewable energies compared with conven-tional energies without public-sector funding. The share of renewable energies, particu-larly solar energy, in the global energy mix will continue to rise sharply. Key factors here are solar farms, where large sites in favorably located regions are fitted with photovoltaic sys-tems that in turn consist of a large number of individual solar modules. This is a global growth market in which the solar-module providers that offer the most efficient and long-lasting product solutions will prevail.Consistently high output is crucialSolar-power units need to produce electric-ity reliably for over 20 years in order to be eco-nomically viable. They are exposed to wind and weather all day, every day. Maintaining their functionality throughout this period with no appreciable decline in output places huge demands on the design of the units and their production quality. In many regions of the world, precise alignment of the panels at the right angle in relation to the sun, the longevity of the modules and low maintenance intensity are critical suc-cess factors. If these factors are guaranteed, solar-power generation is economically viable across the life cycle and grid parity is attainable. These are not easy conditions given that many large solar farms are built in remote regions with consistently high solar radiation (deserts and desert-like regions) where winds are often strong and persistent.Stabilus dampers are already in use in numerous solar farms. Overall, solar farms with a capacity of 4.8 GW have been built or are planned with this technology. Stabilus dampers minimize the impact of wind on solar modules and their carrier systems by preventing vibrations that adversely affect the structure, thereby preventing damage to the units. This protective function means that less steel is used in the mounting frames of the solar panels, making them cost- optimized to build. Consequently, the dampers help the solar industry to generate maximum income reliably and over several decades.Stabilus dampers in solar farms are a factor in the economic efficiency of investments.STABILUSTO OUR SHAREHOLDERS29STABILUSTO OUR SHAREHOLDERS ...WHETHER
INVESTMENTS
PAY OFF IN THE
LONG TERM
Stabilus dampers strengthen solar panels Global generation of solar power is grow-ing quickly year by year. While units with a total power output of just five gigawatts (GW) were installed worldwide in 2005, the figure was already 227 GW in 2015 – an almost fifty- fold increase in just a decade, and it continues to rise. Since the turn of the century, climate change, the essentially finite nature of fossil-en-ergy production and the growing move away from nuclear power in some parts of the world have given a significant boost to the global expansion of renewable energies – and solar energy is prominent among them. To date, sev-eral billion euros have been spent on subsidies for renewable energies. Consequently, the past decade was characterized by significant expan-sion in renewable-energy production as well as the development of the underlying technologies. State funding is now being scaled back. The new objective is grid parity, i.e. the competitiveness of renewable energies compared with conven-tional energies without public-sector funding. The share of renewable energies, particu-larly solar energy, in the global energy mix will continue to rise sharply. Key factors here are solar farms, where large sites in favorably located regions are fitted with photovoltaic sys-tems that in turn consist of a large number of individual solar modules. This is a global growth market in which the solar-module providers that offer the most efficient and long-lasting product solutions will prevail.Consistently high output is crucialSolar-power units need to produce electric-ity reliably for over 20 years in order to be eco-nomically viable. They are exposed to wind and weather all day, every day. Maintaining their functionality throughout this period with no appreciable decline in output places huge demands on the design of the units and their production quality. In many regions of the world, precise alignment of the panels at the right angle in relation to the sun, the longevity of the modules and low maintenance intensity are critical suc-cess factors. If these factors are guaranteed, solar-power generation is economically viable across the life cycle and grid parity is attainable. These are not easy conditions given that many large solar farms are built in remote regions with consistently high solar radiation (deserts and desert-like regions) where winds are often strong and persistent.Stabilus dampers are already in use in numerous solar farms. Overall, solar farms with a capacity of 4.8 GW have been built or are planned with this technology. Stabilus dampers minimize the impact of wind on solar modules and their carrier systems by preventing vibrations that adversely affect the structure, thereby preventing damage to the units. This protective function means that less steel is used in the mounting frames of the solar panels, making them cost- optimized to build. Consequently, the dampers help the solar industry to generate maximum income reliably and over several decades.Stabilus dampers in solar farms are a factor in the economic efficiency of investments.STABILUSTO OUR SHAREHOLDERS29 ...WHETHER INVESTMENTS PAY OFF IN THE LONG TERM Stabilus dampers in solar farms are a factor in
the economic efficiency of investments.
9
2
Stabilus dampers
strengthen solar
panels
Global generation of solar power is grow-
ing quickly year by year. While units with a
total power output of just five gigawatts (GW)
were installed worldwide in 2005, the figure
was already 227 GW in 2015 – an almost fifty-
fold increase in just a decade, and it continues
to rise.
Since the turn of the century, climate
change, the essentially finite nature of fossil-en-
ergy production and the growing move away
from nuclear power in some parts of the world
have given a significant boost to the global
expansion of renewable energies – and solar
energy is prominent among them. To date, sev-
eral billion euros have been spent on subsidies
for renewable energies. Consequently, the past
decade was characterized by significant expan-
sion in renewable-energy production as well as
the development of the underlying technologies.
State funding is now being scaled back. The new
objective is grid parity, i.e. the competitiveness
of renewable energies compared with conven-
tional energies without public-sector funding.
The share of renewable energies, particu-
larly solar energy, in the global energy mix will
continue to rise sharply. Key factors here are
solar farms, where large sites in favorably
located regions are fitted with photovoltaic sys-
tems that in turn consist of a large number of
individual solar modules. This is a global growth
market in which the solar-module providers that
offer the most efficient and long-lasting product
solutions will prevail.
Consistently high output is crucial
Solar-power units need to produce electric-
ity reliably for over 20 years in order to be eco-
nomically viable. They are exposed to wind and
weather all day, every day. Maintaining their
functionality throughout this period with no
appreciable decline in output places huge
demands on the design of the units and their
production quality.
In many regions of the world, precise
alignment of the panels at the right angle in
relation to the sun, the longevity of the modules
and low maintenance intensity are critical suc-
cess factors. If these factors are guaranteed,
solar-power generation is economically viable
across the life cycle and grid parity is attainable.
These are not easy conditions given that many
large solar farms are built in remote regions
with consistently high solar radiation (deserts
and desert-like regions) where winds are often
strong and persistent.
Stabilus dampers are already in use in
numerous solar farms. Overall, solar farms with a
capacity of 4.8 GW have been built or are planned
with this technology. Stabilus dampers minimize
the impact of wind on solar modules and their
carrier systems by preventing vibrations that
adversely affect the structure, thereby preventing
damage to the units. This protective function
means that less steel is used in the mounting
frames of the solar panels, making them cost-
optimized to build. Consequently, the dampers
help the solar industry to generate maximum
income reliably and over several decades.
STABILUSTO OUR SHAREHOLDERS CRUCIAL
DETAILS:
AUTOMOTIVE
3
0
Components and system solutions for the
automotive industry
Along with electric mobility and autono-
mous driving, convenience is a key megatrend
for the future of the car industry. Buyers of new
vehicles increasingly want intelligent solutions
to make their car easier to drive and operate.
These include intelligent operating systems,
effective sound insulation, powerful air-condi-
tioning systems with minimum draft and innova-
tive chassis technologies, as well as gas springs,
dampers and electromechanical drives for lids,
tailgates, seats and doors in cars. The trend
towards the increased use of convenience func-
tions in the automotive industry is continuing.
Together with the ability of Stabilus to develop
and successfully market new, value-added appli-
cations, this development offers significant
growth potential for the company.
Stabilus solutions are used to realize key convenience
functions in modern passenger cars.
STABILUSTO OUR SHAREHOLDERS 1
3
Globally there is a market trend towards SUVs
and multi-purpose vehicles.
Around 800 car models worldwide use
Stabilus products and solutions.
In the past business year, the automotive business
of Stabilus posted strong growth.
Growth in gas springs and dampers too
However, high and further growing num-
bers of Stabilus gas springs are also being used
in tailgates, trunk lids, engine hoods and vehi-
cle-seat adjustment mechanisms. They make
operation easier and increase safety as well as
convenience.
Dorstop, a convenience application cur-
rently used primarily in top-of-the-range vehi-
cles that continuously holds the opened door in
a selected position, helps to prevent unwanted
door movements. When getting in and out, this
prevents adverse contact with adjacent vehicles
and stops the unintentional movement of the
rear door in off-road vehicles.
Democratization of convenience
This market trend is increasingly being bol-
stered by the ongoing strong growth in market
share of SUVs and multi-purpose vehicles that
give their users a choice of seats or lots of stow-
age space and are closed with relatively large
trunk lids or tailgates. These seats and trunk lids
or tailgates can be moved easily and safely with
the assistance of gas springs. Electromechanical
drives are increasingly used for the trunk lids
and tailgates.
Whereas the POWERISE drives were mainly
installed in top-of-the-range vehicles in the
past, POWERISE is now capturing the mid-range
and compact classes. This development in par-
ticular is responsible for the strong growth rates
for unit sales of POWERISE systems.
Summary: Demand for ease of operation
combined with driving convenience and com-
fort is steadily growing. This means there is a
corresponding upturn in the number of poten-
tial applications for Stabilus gas springs, damp-
ers and POWERISE drives.
≈ 800STABILUSTO OUR SHAREHOLDERS CRUCIAL DETAILS:
INDUSTRIAL
BUSINESS
3
2
Ergonomics, safety and convenience for
industrial applications
Stabilus gas springs, dampers and electro-
mechanical drives are used to optimize the
ergonomics and operating safety of all kinds of
commercial applications and consumer prod-
ucts. They help to improve working conditions
while preventing work-related health hazards,
thus playing a key role in keeping a generally
aging global population on the move and able
to work.
In the area of industrial business alone,
more than 10,000 customers rely on Stabilus
solutions. These solutions can be found wher-
ever motion needs to be initiated, controlled
and damped, and they ensure simple, ergonomic
operation. Along with a wide range of variants
and maximum quality, another crucial factor in
full utilization of this potential is product devel-
opment geared towards the specific application
requirements of the end products.
Electromechanical spindle drives are used in
industrial products to support manual work.
STABILUSTO OUR SHAREHOLDERS Gas springs enable optimal
gate movement.
3
3
First successful industrial application
of POWERISE
In the industrial sector, companies in
segments such as mechanical engineering,
automation engineering, regenerative energy
production and building services engineering
use Stabilus solutions. The electromechanical
POWERISE drive is now also taking a hold in
industrial applications: For instance, they are
now being used in high-quality centrifuges for
blood banks that open automatically, indicat-
ing to the laboratory staff that the next step
can now be taken.
Summary: The trend towards simpler oper-
ation of things is robust across all sectors and
is being bolstered by the three megatrends of
demographic change, worldwide growth of the
middle classes, and a global rise in occupa-
tional health and safety. The creativity of cus-
tomers in finding technical solutions for these
challenges is the main driving force behind the
growth of Stabilus.
Working behind the scenes
Stabilus gas springs, dampers and electro-
mechanical drives do most of their work “behind
the scenes” and can be found wherever conven-
ience and creativity were much more than an
afterthought. For example, they are used in store
construction and in private households for appli-
cations such as store counters, living-room cabi-
nets and kitchen furniture – including for motion
damping in the much-loved pull-out cabinets or
in high-quality cooker hoods. Further applica-
tions range from rehabilitation equipment and
wheelchairs to seats in airplanes, commercial
vehicles and office chairs. The
interaction
between multiple gas springs enables conven-
ient adjustment mechanisms.
Gas springs are used in many everyday objects,
making them easier to use.
10,000
More than 10,000 customers worldwide rely on
Stabilus products.
STABILUSTO OUR SHAREHOLDERS STABILUS
SHARE
Stabilus’ share price
up by 50%.
The Management Board and Supervisory Board
propose a dividend of €0.50 per share.
3
4
Stabilus share price up by 50%
Stabilus’ share price increased by 50% over the course of the
fiscal year 2016 and once again substantially outperformed peer
indices: SDAX, DAXsector All Automobile and DAXsector Industrial.
Capital increase
On July 6, 2016, Stabilus utilized some of its authorized capital by
issuing 3,976,744 new shares and placing these shares with instituti-
onal investors. As a result, the total number of shares increased from
20,723,256 to 24,700,000 and the share capital increased from
€207,232.56 to €247,000 correspondingly. The gross proceeds totaled
€159.1 million and were primarily used for the partial financing of
the acquisition of SKF Group entities ACE, Hahn Gasfedern and
Fabreeka / Tech Products. The capital increase strengthened the
Company’s balance sheet providing greater financial flexibility and
supporting further growth of the Stabilus Group.
Shareholder structure
According to the voting rights notifications received until Sep-
tember 30, 2016, Marathon Asset Management LLP, BlackRock, Inc.
and Deutsche Asset Management Investment GmbH each hold more
than 5% of Stabilus shares. Stabilus management, i.e. members of the
Management Board and of the Supervisory Board, hold 0.7% of the
total shares. The aforementioned and all other voting-right notifica-
tions are published on www.ir.stabilus.com.
Shareholder Structure
in % as of September 30, 2016
7.1 5.9 5 . 3 0.7
81.1%
7.1%
5.9%
5.3%
81.1
Other institutional
and private investors
Marathon Asset
Management LLP
BlackRock, Inc.
Deutsche Asset
Management
Investment GmbH
0.7%
Management
Stabilus share data
Ticker symbol
Bloomberg ticker symbol
Reuters ticker symbol
ISIN
STM
STM:GR
STAB:DE
LU1066226637
German security identification number (WKN)
A113Q5
Number of shares outstanding (Sept 30, 2016)
24,700,000
Type of shares
Bearer shares with
a nominal value
of €0.01
Capital stock (Sept 30, 2016)
€247,000
+50%€0.50STABILUSTO OUR SHAREHOLDERS
60%
50%
40%
30%
20%
10%
0%
Opening price
Oct 1, 2015
€33.46
– 10%
– 20%
Closing price
Sept 30, 2016
€50.10
5
3
Oct
Dec
Feb
Apr
June
Aug
Stabilus SDAX (Price index) DAXsector All Automobile (Price index) DAXsector Industrial (Price index)
Regular dialog with investors and analysts
In fiscal year 2016 we continued to pursue our goal of providing
all market participants with relevant and reliable information. We con-
ducted 19 roadshows in Europe’s and North America’s major financial
centers and participated in the following ten international conferences:
Societe Generale Nice Conference
Nice, France
Commerzbank German Investment Seminar
New York, USA
Berenberg European Conference USA 2016
Tarrytown, USA
Kepler Cheuvreux 15th German Corporate Conference
Frankfurt am Main, Germany
J.P. Morgan 4th Annual Auto Conference
London, UK
Bankhaus Lampe Deutschlandkonferenz
Baden-Baden, Germany
Commerzbank Sector Conference 2016
Frankfurt am Main, Germany
UBS Pan European Small and Mid-Cap Conference 2016
London, UK
Berenberg Goldman Sachs Fifth German Corporate Conference
Munich, Germany
Commerzbank Mid Cap Investment Conference 2016
Boston and New York, USA
Over the course of fiscal 2016, we hosted 11 plant visits at the
company’s operational headquarters in Koblenz, Germany.
Share price performanceSTABILUSTO OUR SHAREHOLDERS
Development of Stabilus share price since IPO
Closing price
Sept 30, 2016
€50.10
€50
€45
€40
€35
€30
€25
€20
First trading day
May 23, 2014
€22.75
3
6
May
July
Sept
Nov
Jan
2015
Mar
May
July
Sept
Nov
Mar
July
Sept
Jan
2016
Research coverage
The following equity analysts currently publish regular assess-
ments and recommendations on Stabilus stock:
Bankhaus Lampe
Christian Ludwig
Commerzbank
Sascha Gommel, Yasmin Moschitz
Hauck & Aufhäuser
Christian Glowa
J.P. Morgan
Nikhil Bhat, Jose M Asumendi
Kepler Cheuvreux
Hans-Joachim Heimbürger
Macquarie
MainFirst
Christian Breitsprecher
Florian Treisch
Oddo Seydler
Stefan Augustin
Societe Generale
Stephen Reitman, Erwann Dagorne,
Phillippe Barrier
Annual General Meeting
Approximately 55% of equity capital was represented at our
Annual General Meeting which was held on February 17, 2016 in Lux-
embourg. Each of the agenda points proposed by the company’s
management was approved by a large majority of the shareholders. Dr.
Joachim Rauhut and Dr. Ralf-Michael Fuchs were appointed as members
of the Supervisory Board. All of the documents and information regar-
ding the Annual General Meeting can be found at www.ir.stabilus.com.
Dividend proposal or €0.50 per share
The Management Board and the Supervisory Board have resolved
to propose a dividend distribution of €0.50 per share to the Annual
General Meeting to be held in Luxembourg on February 15, 2017.
With this proposal, our shareholders participate in the Company’s suc-
cess. The total dividend will thus amount to €12.35 million (PY: – ) and
the distribution ratio will be 25.7% of the consolidated profit attribu-
table to the Stabilus shareholders.
STABILUSTO OUR SHAREHOLDERS B
C H A P T E R B
COMBINED
MANAGEMENT
REPORT
COMBINED MANAGEMENT REPORT
as of and for the fiscal year ended September 30, 2016
3 9
G E N E R A L
5 1
L I Q U I D I T Y
3 9
S T R A T E G Y
5 3
S T A T U T O R Y R E S U LT S O F O P E R A T I O N S A N D
F I N A N C I A L P O S I T I O N O F S T A B I L U S S . A .
4 1
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
5 3
R I S K S A N D O P P O R T U N I T I E S
4 3
S I G N I F I C A N T E V E N T S
5 9
C O R P O R A T E G O V E R N A N C E
4 4
R E S U LT S O F O P E R A T I O N S
6 1
S U B S E Q U E N T E V E N T S
4 8
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
6 1
O U T L O O K
4 9
F I N A N C I A L P O S I T I O N
S
T
A
B
I
L
U
S
3
8
C
O
M
B
I
N
E
D
M
A
N
A
G
E
M
E
N
T
R
E
P
O
R
T
GENERAL
ness through new applications and selected add-on acquisitions
and (iv) maintain and strengthen the Company’s cost and quality
leadership.
Stabilus S.A., Luxembourg, hereafter also referred to as “Stabilus”
or the “Company” is a public limited liability company (société
D R I V E P R O F I TA B L E A N D C A S H G E N E R AT I N G
anonyme) incorporated in Luxembourg and governed by Luxembourg
G R O W T H I N A L L R E G I O N A L S E G M E N T S A N D
law. The registered office is 2 rue Albert Borschette, L-1246 Luxem-
A C R O S S E N D M A R K E T S
bourg, Grand Duchy of Luxembourg.
The Stabilus Management aims to continue to increase revenue,
Stabilus S.A. is the parent company of the Stabilus Group. The
profits and cash flows across all business segments by further
Group is organized and managed primarily on a regional level. The
focusing on regions and sectors where the Stabilus Group has
three reportable operating segments of the Group are Europe,
room to grow, by entering new markets and by strengthening the
NAFTA as well as Asia / Pacific and Rest of World (RoW). Stabilus’
Group with selected add-on acquisitions.
fiscal year is not a calendar year but a twelve-month period from
October 1 until September 30 of the following year.
Automotive Gas Spring & Powerise: Focus on rapidly
growing regions and increased comfort
The Stabilus Group is a leading manufacturer of gas springs, damp-
Stabilus intends to continue to further expand its international
ers as well as electromechanical tailgate opening systems (motion
presence in rapidly growing markets, in particular in Asia, which
control solutions). The products are used in a wide range of appli-
has become a significant growth driver for the automotive sector
cations in the automotive and the industrial sector, including furni-
and where the Company’s market share still lags behind the market
ture applications. Typically the products are used to aid the lifting
share in Europe and NAFTA. Management seeks to increase revenue
and lowering or dampening of movements. As world market leader
from Asian OEMs in the automotive business, supported by new tar-
for gas springs, the Group manufactures for all key vehicle produc-
geted investments in additional production capacity in this region.
ers. A broad spectrum of industrial customers diversify the Group’s
To take advantage of the rapidly growing Chinese automotive man-
customer base. Around 30% of Group’s revenue in fiscal 2016
ufacturing sector, the Company plans to increase revenue from
come from industrial customers.
Chinese OEMs. To achieve this goal, management has implemented
STRATEGY
a targeted sales strategy and is further strengthening engineering
capabilities in China, which has already secured orders from sev-
eral local Chinese OEMs.
Stabilus plans to further take advantage of the strong growth rates
of automatic opening and closing systems driven by comfort require-
The Stabilus Group is a leading supplier of gas springs to automo-
ments across all regions. The strong consumer demand for SUVs,
tive and industrial customers. In addition, the Company has suc-
crossovers and hatchback cars provides a reliable base for business
cessfully expanded into the production and sale of automatic open-
growth. The Company is in the process of adding further capacities
ing and closing systems, primarily used in vehicle tailgates. With
at its three Powerise production plants.
the acquisition of Hahn Gasfedern, ACE and Fabreeka / Tech Prod-
ucts in fiscal 2016 the Group expanded its product offering which
Industrial: Increase regional coverage
now contains additional damping solutions including vibration
While Stabilus has a large industrial market share in certain Euro-
insulation. Stabilus’ strategic aim is to further extend its leadership
pean countries in which the Company has a strong commercial
positions in these industries. The key focus areas of its strategy
presence, the Group believes that there is still potential to increase
STAR are to: (i) drive profitable and cash-generating growth, (ii)
market share in Asia and North America, where the Company’s market
benefit from megatrends, such as increased standard of living,
coverage is comparatively less strong. Management has identified
increasing comfort requirements and aging population, (iii) focus
regions and countries in which the Company has the opportunity
on innovative gas spring solutions, especially in the industrial busi-
to repeat the successful strategies from markets where Stabilus has
9
3
STABILUSCOMBINED MANAGEMENT REPORT 4
0
a high share, by improving market coverage with the objective of
F O C U S O N I N N O VAT I V E C O M P O N E N T S A N D
strengthening the local sales footprint. In addition, Stabilus intends
S YS T E M S TO TA K E A D VA N TA G E O F G L O B A L
to duplicate its production, application engineering and sales know-
I N D U S T RY T R E N D S
how from Europe and NAFTA to the Asia / Pacific region, where
the Group’s footprint is comparatively less strong. The Company is
The products of Stabilus are at the forefront of innovation in
increasing its presence in China. Stabilus has extended its Chinese
motion control. The Company employs 288 people in R&D across
production capabilities and set up local application engineering,
its three regional segments as of September 30, 2016. Stabilus is
sales and project management teams. In China the Company is in
focused on designing and manufacturing highly-engineered com-
the process of ramping up the first production line for Industrial
ponents, modules and system solutions that address key global
products, which will help gain additional local market shares. The
trends in the automotive and industrial sectors. The Company aims
Stabilus management believes that a strong local presence in China
to adapt to these trends by continuously improving its existing
will further strengthen the Group’s position in the Asia / Pacific region.
technology, in particular the requirement for ergonomic solutions
as well as automated opening and closing systems. Management
Swivel Chair: Supplying high quality products
believes that actively addressing these key trends reinforces the
As the only non-Asian producer of gas springs for high quality
Company’s ability to maintain its market share and profitability.
swivel chairs, Stabilus is in an excellent position to gain further mar-
ket share in Europe and NAFTA. Management has successfully turned
In the industrial sector, the Company continues to develop products
around the Swivel Chair business and today the business is growing
for enhanced safety and comfort. For example, it is selling a seat
profitably again. Stabilus expects this positive momentum to continue.
application based on the Bloc-O-Lift system for use in airplane seats.
In addition, dampers manufactured by Stabilus are increasingly used
B E N E F I T F R O M M E G AT R E N D S, S U C H A S
in modules for solar parks that automatically track sunlight in their
I N C R E A S I N G C O M F O R T R E Q U I R E M E N T S A N D
setup, thus being subject to sometimes severe weather conditions
A G I N G P O P U L AT I O N
such as strong winds. The Stabilus dampers help protect the mod-
ules from related wind damage.
Stabilus continues to adapt its product offerings towards meg-
atrends, such as comfort requirements. The Powerise solution
Management expects that recent and continued wins at / from key
enhances comfort through automatically opening and closing car
clients for Powerise solutions due to the superior technology fea-
tailgates and trunk lids. In addition, the Company’s gas springs
tures of the Company’s products will be a key growth driver for
offer more comfortable opening and closing solutions as well as
Stabilus. While Powerise systems were in the past deployed only in
increased comfort in swivel chairs and industrial applications, such
the luxury and SUV car segments, Powerise has recently success-
as airplane seats.
fully gained market shares with mid-class vehicles such as the VW
Passat and Ford Mondeo. The Company is working on and investing
The global population of older people is growing considerably
in improving and further developing its current spindle drive tech-
faster than the population as a whole. Stabilus focuses on capital-
nology to further reduce noise, weight and cost. In addition, Stabi-
izing on this megatrend. It is inevitable that an aging consumer
lus is exploring new industrial applications for its Powerise systems.
base requests more movement support and more automated sys-
tems in their vehicles and in other aspects of their daily lives. The
M A I N TA I N A N D S T R E N G T H E N C O S T A N D
Group intends to benefit from this megatrend as it has a leading
Q U A L I T Y L E A D E R S H I P
position as a system provider of automatic opening and closing
systems which will continue to experience an increasing demand.
Build on the Group’s global footprint and proximity to
customers
Based on Stabilus’ guiding strategy “in the region, for the region”,
it has established its facilities in close proximity to the Group’s cus-
tomers and has done so continuously over the past years e.g. the
US, in China, South Korea, Mexico. It is the Company’s goal to con-
STABILUSCOMBINED MANAGEMENT REPORT tinue to provide a comprehensive product and service offering to
For the coming years, management expects to continue on this
current and new customers globally. The Group seeks to fully glo-
path with productivity improvements, a range of initiatives to prof-
balize its product portfolio and to provide an even broader range
itability backed by a high level of business which has already been
of components and systems to each customer.
locked in. Due to the Company’s production know-how and
long-standing client relationships backed by Stabilus’ quality lead-
Continue to optimize cost base
ership, management is confident that it can protect the Group’s
Stabilus continuously implements operational improvements relat-
market shares in gas springs in Europe and NAFTA and gain further
ing to plant and overhead, which includes productivity improve-
market shares for gas springs in the Asia / Pacific region, especially
ments, overhead optimization and the rollout / implementation of
with local customers. An increasing market share in Powerise sup-
local sourcing, to improve the Company’s operating cost.
ports the positive outlook.
BUSINESS AND GENERAL
ENVIRONMENT
1
4
Stabilus Group operates in automotive and in industrial markets.
Macroeconomic development
In the industrial markets, we supply customers in a large number
According to the latest figures published by the International Mon-
of sub-industries, e.g. industrial production equipment, automation,
etary Fund (IMF), the global growth in the calendar year 2016 is
construction machinery, transportation (aircraft, truck and buses,
expected to be 3.1% (2015: 3.2%). Advanced economies continue
marine), agriculture machinery, medial applications, renewable
to experience persistent stagnation: The increase of the established
energy (in particular solar, wind) etc. Hence, our revenue develop-
economies’ GDP is expected to be 1.6% in 2016 and 1.8% in
ment in the industrial business depends to a certain degree on the
2017, compared to 2.1% in calendar year 2015. The developing
macroeconomic development, i.e. the growth rate of the gross
economies are experiencing, on the other hand, higher growth
domestic product (GDP) in the countries and regions we operate in.
rates for the first time in the last six years. Their growth rate of
developing countries’ GDP is expected to be 4.2% in 2016 and
In the automotive market, an important driver of our revenue
4.6% in 2017, in contrast to 4.0% growth in 2015.
growth is the global production volume of light vehicles (which
comprise passenger cars and light commercial vehicles weighing
The IMF emphasizes that continuing stagnation in advanced econo-
less than six tons) and ultimately the number of vehicles sold, e.g.
mies could further fuel populist calls for restrictions on trade and
the registration of new vehicles as an indicator of car sales. The
immigration, with negative impact on growth, innovation and pro-
average content of Stabilus products per vehicle differs with the
ductivity. In addition to the continuing monetary policies of quantita-
car body configurations (for instance, hatchbacks and SUVs have
tive easing, structural reforms, as well as higher spending on educa-
generally a higher content per car). Hence, the demand and popu-
tion, infrastructure and technology continue to be needed in many
larity of certain vehicle body configurations should be considered
countries to effectively counter the effects of enduring stagnation.
as an additional variable in a revenue forecast model.
STABILUSCOMBINED MANAGEMENT REPORT Latest growth projections for selected economies
% Y E A R - O N - Y E A R C H A N G E I N T H E C A L E N D A R Y E A R
World
Advanced economies
Euro Area
United Kingdom
United States
Canada
Japan
Developing economies (emerging markets)
Emerging and developing Europe
Russia
China
Mexico
Brazil
Source: IMF, October 2016 World Economic Outlook.
* Projections.
4
2
2015
3.2%
2.1%
2.0%
2.2%
2.6%
1.1%
0.5%
4.0%
3.6%
(3.7)%
6.9%
2.5%
(3.8)%
2016*
3.1%
1.6%
1.7%
1.8%
1.6%
1.2%
0.5%
4.2%
3.3%
(0.8)%
6.6%
2.1%
(3.3)%
T_001
2017*
3.4%
1.8%
1.5%
1.1%
2.2%
1.9%
0.6%
4.6%
3.1%
1.1%
6.2%
2.3%
0.5%
Development of vehicle markets
Estimations of the German Association of the Automotive Industry
(VDA), as of November 2016, show a global year-on-year increase
The global production of light vehicles in the last twelve months
of new car registrations in calendar year 2016 amounting to approx-
developed positively. According to IHS forecasts as of October
imately 3%. The development varies significantly in the world’s
2016, the global production is expected to increase from 88.7 mil-
regions: +13% in Eastern Europe, +12% in Mexico, +10% in
lion units in calendar year 2015 to approximately 91.2 million vehicles
China, + 5% in Western Europe, -2% in the USA, – 10% in Russia
in 2016 which corresponds to a growth rate of 2.8% in 2016. Thus,
and – 20% in Brazil.
in 2016, the output of new passenger cars and light commercial
vehicles is forecast to reach around 51.9 million vehicles (+3.2%
Sport utility vehicles (SUV), multi-purpose vehicles (MPV), cross-
versus 50.3 million units in 2015) in Asia / Pacific and RoW, approx-
overs, as well as station wagons and hatchbacks continue to be
imately 21.4 million vehicles (+2.4% versus 20.9 million units in
favored by an increasing number of end customers – not only
2015) in Europe and around 17.9 million vehicles (+2.3% versus
in North America and Europe, but increasingly in Asia / China. For
17.5 million units in 2015) in the NAFTA region.
instance: The German Department of Motor Vehicles (Kraft-
Production of light vehicles
T_002
I N M I L L I O N S O F U N I T S P E R C A L E N D A R Y E A R
Europe
NAFTA
Asia / Pacific and RoW
Worldwide production of light vehicles*
Source: IHS
* Passenger cars and light commercial vehicles (<6t)
** IHS forecast as of October 2016
2012
19.3
15.4
46.7
81.4
2013
19.5
16.2
49.0
84.7
2014
20.1
17.0
50.2
87.4
2015
20.9
17.5
50.3
88.7
2016**
2017**
21.4
17.9
51.9
91.2
21.8
18.0
53.0
92.8
STABILUSCOMBINED MANAGEMENT REPORT fahrt-Bundesamt, KBA), a government agency administering vehicle
other vehicle segments and total new car registrations which
registrations, publishes monthly statistics of new passenger car
increased by 5.6%. In the ten-month period from January to Octo-
registrations on its website – classified by car models and vehicle
ber 2016, the registrations of new SUVs in Germany increased
segments. According to these statistics for 2015, registrations of
by 25.1% and the registrations of new off-road vehicles by 11.5%,
new SUVs in Germany increased by 15.2% in a year-on-year com-
compared to the respective period of the previous year.
parison and off-road vehicles by 11.0% – i.e. more strongly than
SIGNIFICANT EVENTS
On April 26, 2016, Stabilus signed an agreement with the SKF
On July 5, 2016, the Supervisory Board agreed to the Management
Group to acquire ACE, Hahn Gasfedern and Fabreeka / Tech Prod-
Board’s proposal to utilize some of its existing authorized capital
ucts in an all-cash transaction for a total consideration of US$339
and to increase the share capital from €207,232.56 by €39,767.44
million. The agreement was subject to approval by the relevant
to €247,000.00 via issuance of 3,976,744 new bearer shares which
antitrust authorities. On June 30, 2016, following the approval of
will bear full dividend rights for the fiscal year 2016. Following the
antitrust authorities, Stabilus successfully closed the acquisition of
issuance of new shares, the total number of shares amounts to
these SKF Group entities.
24.7 million shares.
The acquisition is in line with Stabilus’ strategy to strengthen its
On July 6, 2016, the capital increase was successfully completed:
industrial business. With this acquisition Stabilus expands its prod-
Stabilus issued 3,976,744 new bearer shares and placed these
uct portfolio in the industrial sector and taps new customer groups.
shares with institutional investors. On July 7, 2016, the new shares
The acquired companies are established industrial suppliers in the
were admitted for trading and included in the current listing in the
fields of motion control, damping and vibration control for a broad
Prime Standard segment of the Frankfurt Stock Exchange. The gross
spectrum of clients in numerous fast-growing industry segments,
proceeds totaled €159.1 million and were used to fully redeem the
such as automation technology, plant and machine engineering,
€115 million equity bridge facility which had been drawn on June
commercial and rail vehicle manufacture as well as medical tech-
29, 2016, to finance the acquisition of SKF Group entities ACE,
nology. The companies, which employ a total of around 550 people
Hahn Gasfedern and Fabreeka / Tech Products.
worldwide, have distinctive competences in specifically customized
applications for medium to small lot sizes. They generated consoli-
The Consolidated Financial Statements as of and for the fiscal year
dated revenue of approximately US$120 million and EBIT of
ended September 30, 2016 include the results of acquired entities
approx. US$30 million in the fiscal year 2015.
for the last three months ended September 30, 2016 (fourth quar-
ter of fiscal year 2016).
The acquisition was financed by a new €455 million term loan
facility (replacing the existing €265 million term loan facility) and
a €115 million equity bridge facility.
3
4
STABILUSCOMBINED MANAGEMENT REPORT RESULTS OF OPERATIONS
The table below sets out Stabilus Group’s consolidated income state-
ment for the fiscal year 2016 in comparison to the fiscal year 2015:
4
4
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
Income tax income / (expense)
Profit / (loss) for the period
Revenue
Group’s total revenue developed as follows:
Revenue by region
I N € M I L L I O N S
Europe
NAFTA
Asia / Pacific and RoW
Revenue
Year ended Sept 30,
2016
737.5
(547.7)
189.8
(26.6)
(55.5)
(33.9)
12.0
(9.2)
76.6
2.6
(13.3)
65.9
(18.0)
48.0
2015
611.3
(463.6)
147.7
(24.2)
(44.1)
(27.3)
11.2
(7.6)
55.7
17.9
(42.4)
31.1
(14.1)
17.0
T _ 003
Change
% change
126.2
(84.1)
42.1
(2.4)
(11.4)
(6.6)
0.8
(1.6)
20.9
(15.3)
29.1
34.8
(3.9)
31.0
20.6%
18.1%
28.5%
9.9%
25.9%
24.2%
7.1%
21.1%
37.5%
(85.5)%
(68.6)%
>100.0%
27.7%
>100.0%
T _ 004
Year ended Sept 30,
2016
364.2
289.0
84.3
737.5
2015
308.5
229.3
73.5
611.3
Change
% change
55.7
59.7
10.8
126.2
18.1%
26.0%
14.7%
20.6%
STABILUSCOMBINED MANAGEMENT REPORT Revenue by markets
I N € M I L L I O N S
Automotive Gas Spring
Automotive Powerise
Automotive business
Industrial / Capital Goods
Vibration & Velocity Control
Swivel Chair
Industrial business
Revenue
Year ended Sept 30,
2016
320.0
195.3
515.3
171.0
22.5
28.6
222.2
737.5
2015
294.4
139.8
434.2
149.3
–
27.7
177.1
611.3
T _ 005
Change
% change
25.6
55.5
81.1
21.7
22.5
0.9
45.1
126.2
8.7%
39.7%
18.7%
14.5%
n/a
3.2%
25.5%
20.6%
Revenue of our European entities increased year-over-year by
new OEM platform wins and the subsequent launch of new Powerise
18.1% and revenue generated by our US and Mexican entities by
programs for a number of key vehicle OEMs. In addition, the share
26.0%. Revenue of both our operating units Europe and NAFTA
of end customers (buyers of new vehicles) opting for this extra
continues to benefit predominantly from the strong growth in the
equipment continues to rise as well.
Powerise business. In addition, the newly acquired entities Hahn
Gasfedern, ACE as well as Fabreeka / Tech Products contributed
Revenue in the Industrial / Capital Goods unit in fiscal 2016 increased
€17.4 million to Europe’s revenue and €9.0 million to NAFTA’s rev-
by €21.7 million or 14.5% to €171.0 million (PY: €149.3 million).
enue in fiscal 2016. Approximately €12.2 million of the NAFTA’s rev-
€4.8 million of this revenue increase were contributed by newly
enue increase was due to the stronger US dollar, i.e. due to the cur-
acquired company Hahn Gasfedern which is part of this business
rency translation of NAFTA’s revenue from US dollar to euro (average
unit from July 1, 2016 on.
rate per €1: $1.11 in FY2016 versus $1.16 in FY2015). The revenue
of Stabilus plants located in Asia / Pacific and RoW region increased
The newly acquired companies ACE, Fabreeka and Tech Products
by 14.7% from €73.5 million in fiscal 2015 to €84.3 million in fiscal
form a new business unit from July 1, 2016. They contributed
2016, essentially due to new customer wins and increased produc-
€22.5 million to the Group’s revenue in fiscal 2016.
tion capacity in China which more than offset the weakness in South
America. The in fiscal 2016 acquired entities contributed €1.0 million
Swivel Chair revenue increased by 3.2% from €27.7 million in
to the revenue increase in Asia / Pacific and RoW.
fiscal 2015 to €28.6 million in fiscal 2016.
5
4
The increase in total revenue is mainly due to our automotive mar-
ket segment, particularly to our growing Powerise business. The
increase in the Powerise business by 39.7% is mainly the result of
STABILUSCOMBINED MANAGEMENT REPORT 4
6
Cost of sales and overhead expenses
A D M I N I S T R AT I V E E X P E N S E S
C O S T O F S A L E S
Administrative expenses increased from €(27.3) million in fiscal
2015 by 24.2% to €(33.9) million in fiscal 2016 essentially due to
Cost of sales increased from €(463.6) million in fiscal 2015 by
incurred advisory costs of €3.9 million related to the acquisition of
18.1% to €(547.7) million in fiscal 2016. Due to better fixed cost
Hahn Gasfedern, ACE, Fabreeka and Tech Products as well as gen-
absorption (economies of scale especially from continuing growth
eral pay increases at several locations. As a percentage of revenue,
of our Powerise business) and lower cost of sales as a percentage
administrative expenses increased by 10 basis points to 4.6%
of revenue ratios of newly acquired companies, the cost of sales
(FY2015: 4.5%).
increased more slowly than the revenue growth of 20.6%. As a
result, the cost of sales as a percentage of revenue decreased by
OT H E R I N C O M E A N D E X P E N S E
150 basis points to 74.3% (PY: 75.8%) and the gross profit margin
improved to 25.7% (PY: 24.2%).
Other income increased from €11.2 million in fiscal 2015 by
€0.8 million to €12.0 million in fiscal 2016. This income statement
The newly acquired companies Hahn Gasfedern, ACE and Fab-
line item mainly comprises foreign currency translation gains.
reeka / Tech Products are active in the industrial market and offer
custom made products with small lot sizes combined with short
Other expense increased from €(7.6) million in fiscal 2015 by
lead times. This market approach provides stronger gross profit
€(1.6) million to €(9.2) million in fiscal 2016. This income statement
margins than the automotive business typically provides to Stabi-
line item mainly comprises foreign currency translation losses.
lus. On the other hand this approach drives higher overhead cost
and necessitates a different manufacturing approach.
F I N A N C E I N C O M E A N D C O S T S
R & D E X P E N S E S
Finance income decreased from €17.9 million in fiscal 2015 to
€2.6 million in fiscal 2016 primarily due to lower net foreign
R&D expenses (net of R&D cost capitalization) increased by 9.9%
exchange gains on intercompany loans.
from €(24.2) million in fiscal 2015 to €(26.6) million in fiscal 2016.
As a percentage of revenue, R&D expenses decreased by 40 basis
Finance costs decreased from €(42.4) million in fiscal 2015 to
points to 3.6% (PY: 4.0%). The capitalization amount of R&D
€(13.3) million in fiscal 2016. The higher finance costs in the pre-
expenses decreased – from €(13.5) million in fiscal 2015 to
vious fiscal year 2015 comprised a derecognition of embedded
€(12.6) million in fiscal 2016.
derivatives of €(15.4) million and €(9.9) million early redemption
S E L L I N G E X P E N S E S
charges (non-recurring items).
I N C O M E TA X E X P E N S E
Selling expenses increased from €(44.1) million in fiscal 2015 by
25.9% to €(55.5) million in fiscal 2016, mainly due to higher per-
Driven essentially by increased pre-tax profit of €65.9 million in
sonnel expenses following higher staffing in China as well as the
FY2016 (PY: €31.1 million), the income tax expense grew from
acquisition of Hahn Gasfedern, ACE, Fabreeka and Tech Products
€(14.1) million in fiscal 2015 to €(18.0) million in fiscal 2016.
which have higher selling expenses to revenue ratios, compared to
old Stabilus companies. As a percentage of revenue, the selling
expenses increased to 7.5% (FY2015: 7.2%).
STABILUSCOMBINED MANAGEMENT REPORT E B I T DA A N D A D J U S T E D E B I T DA
The table below shows reconciliations of EBIT to EBITDA and
adjusted EBITDA for the fiscal years 2016 and 2015.
Reconciliation of EBIT to adjusted EBITDA
T _ 006
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
PPA adjustments
Total adjustments
Adjusted EBITDA
Year ended Sept 30,
2016
76.6
25.9
23.4
125.9
3.9
–
1.1
2.3
7.3
2015
55.7
22.6
21.2
99.5
1.4
5.3
1.1
–
7.8
133.3
107.3
Change
% change
20.9
3.3
2.2
26.4
2.5
(5.3)
–
2.3
(0.5)
26.0
37.5%
14.6%
10.4%
26.5%
>100.0%
(100.0)%
0.0%
n/a
(6.4)%
24.2%
7
4
Adjusted EBITDA represents EBITDA, as adjusted by management
In fiscal year 2016, advisory expenses of €3.9 million relate to the
primarily in relation to severance, consulting, restructuring and
acquisition of ACE, Hahn Gasfedern, Fabreeka / Tech Products. PPA
other non-recurring costs, expenses for one-time legal disputes as
adjustments of €2.3 million in fiscal 2016 relate to the adjustment of
well as interest on pension changes and expenses related to pur-
acquired entities’ inventories to fair value during the June 2016 pur-
chase price allocations. Adjusted EBITDA is presented because we
chase price allocation, these inventory step-ups were expensed in
believe it is a relevant measure for assessing performance as it is
Q4 FY2016.
adjusted for certain one-time or non-recurring items (e.g. PPA
adjustments – expense of step-ups on inventories) that are not
E B I T A N D A D J U S T E D E B I T
expected to impact our Group going forward, and thus aids in an
understanding of EBITDA in a given period.
The following table shows reconciliations of profit from operating
activities (EBIT) to adjusted EBIT for the fiscal years 2016 and 2015.
Reconciliation of EBIT to adjusted EBIT
T _ 007
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,
2016
76.6
3.9
–
1.1
17.1
22.1
98.8
2015
55.7
1.4
5.3
1.1
12.7
20.5
76.2
Change
% change
20.9
2.5
(5.3)
–
4.4
1.6
22.6
37.5%
>100.0%
(100.0)%
0.0%
34.6%
7.8%
29.7%
STABILUSCOMBINED MANAGEMENT REPORT Adjusted EBIT represents EBIT, as adjusted by management primarily
In fiscal year 2016, advisory expenses of €3.9 million relate to the
in relation to severance, consulting, restructuring and other non-
acquisition of ACE, Hahn Gasfedern, Fabreeka / Tech Products. The
recurring costs, expenses for one-time legal disputes, launch costs
depreciation and amortization of adjustments of Group’s assets to
for new products as well as interest on pension changes and the
fair value resulting from PPA contain €12.7 million related to the
depreciation and amortization of adjustments of Group’s assets to
April 2010 PPA and €4.4 million to the June 2016 PPA.
fair value resulting from purchase price allocations.
DEVELOPMENT OF
OPERATING SEGMENTS
Stabilus Group is organized and managed primarily on a regional
The table below sets out the development of our operating seg-
level. The three reportable operating segments of the Group are
ments for the fiscal years 2016 and 2015.
Europe, NAFTA, Asia / Pacific and RoW.
4
8
Operating segments
I N € M I L L I O N S
Europe
External revenue1)
Intersegment revenue1)
Total revenue1)
Adjusted EBIT
as % of total revenue
as % of external revenue
NAFTA
External revenue1)
Intersegment revenue1)
Total revenue1)
Adjusted EBIT
as % of total revenue
as % of external revenue
Asia/ Pacific and RoW
External revenue1)
Intersegment revenue1)
Total revenue1)
Adjusted EBIT
as % of total revenue
as % of external revenue
1) Revenue breakdown by location of Stabilus company (i. e. “billed-from view”).
Year ended Sept 30,
2016
2015
Change
% change
T _ 008
364.2
28.0
392.2
54.1
13.8%
14.9%
289.0
9.6
298.5
33.4
11.2%
11.6%
84.3
0.8
85.1
11.3
13.3%
13.4%
308.5
28.3
336.8
41.1
12.2%
13.3%
229.3
4.6
233.9
25.1
10.7%
10.9%
73.5
0.4
73.9
10.0
13.5%
13.6%
55.7
(0.3)
55.4
13.0
59.7
5.0
64.6
8.3
10.8
0.4
11.2
1.3
18.1%
(1.1)%
16.4%
31.6%
26.0%
>100.0%
27.6%
33.1%
14.7%
100.0%
15.2%
13.0%
STABILUSCOMBINED MANAGEMENT REPORT The external revenue generated by our European companies
effect of NAFTA’s revenue) and €9 million were generated by the
increased by 18.1% – from €308.5 million in fiscal 2015 to €364.2
acquired entities ACE, Fabreeka, Tech Products. Excluding the effects
million in fiscal 2016. A major portion of the revenue growth, i.e.
from acquisition and currency translation leads to an organic year-
€26.9 million out of the €55.7 million revenue increase was gener-
on-year revenue growth of 16.8% (FY2015: 10.9%). Adjusted EBIT
ated by our Powerise business; in addition, a total of €17.4 million
as percentage of external revenue increased in fiscal year 2016 by
was contributed by the newly acquired companies Hahn Gasfedern,
70 basis points to 11.6% (FY2015: 10.9%).
ACE, Fabreeka and Tech Products. In particular, Hahn Gasfedern
which is now part of our Industrial / Capital Goods business unit con-
In fiscal 2016, the external revenue of our companies in Asia / Pacific
tributed €4.8 million and the entities ACE, Fabreeka, Tech Products
and RoW increased in the year-on-year comparison by €10.8 mil-
which form a new business unit Vibration & Velocity Control contrib-
lion or 14.7%. The major driver of this revenue improvement was
uted €12.6 million to the Europe’s revenue in fiscal 2016. As a result,
our Automotive Gas Spring business which contributed €7.6 mil-
the rate of Europe’s organic year-on-year growth in fiscal 2016 was
lion. Additional €1.4 million revenue were generated by our Auto-
12.4% (FY2015: 15.4%). Adjusted EBIT of the European segment
motive Powerise unit: The new Powerise production line in China
increased by 31.6% or €13.0 million, €3.9 million thereof is the
has been in operation since summer 2016 and is contributing to
contribution of acquired entities. As a result, the adjusted EBIT
revenue of this operating segment. A total of €1.0 million was
margin, i.e. adjusted EBIT in percent of external revenue, increased
generated by our new Vibration & Velocity Control business unit,
by 160 basis points to 14.9% in fiscal 2016 (FY2015: 13.3%).
i.e. by entities which were acquired in fiscal 2016 (first-time con-
solidation in Q4 FY2016). Adjusting for the acquisition effect in
The external revenue of our companies located in the NAFTA region
fiscal 2016 leads to an organic revenue growth of 13.3% (FY2015:
increased from €229.3 million in fiscal 2015 by 26.0% to €289.0
16.3%). The adjusted EBIT increased in the year-on-year compari-
million in fiscal 2016. An amount of €27.2 million out of the €59.7
son by €1.3 million or 13.0%, €0.1 million are the result of the
9
4
million increase was contributed by our Automotive Powerise busi-
acquired entities.
ness, €12.2 million were the result of stronger US dollar (translation
FINANCIAL POSITION
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
Non-current liabilities
Current liabilities
Total liabilities
Total equity and liabilities
Sept 30, 2016
Sept 30, 2015
Change
% change
T _ 009
671.9
265.6
937.4
262.9
522.4
152.1
674.5
937.4
358.7
183.6
542.2
76.7
349.4
116.2
465.5
542.2
313.2
82.0
395.2
186.2
173.0
35.9
209.0
395.2
87.3%
44.7%
72.9%
>100.0%
49.5%
30.9%
44.9%
72.9%
STABILUSCOMBINED MANAGEMENT REPORT TOTA L A S S E T S
N O N - C U R R E N T L I A B I L I T I E S
The Group’s balance sheet total increased from €542.2 million as
Non-current liabilities increased from €349.4 million as of Septem-
of September 30, 2015 by 72.9% to €937.4 million as of Septem-
ber 30, 2015 by €173.0 million to €522.4 million as of September
ber 30, 2016 essentially due to the acquisition (financed through
30, 2016 mainly due to higher non-current financial liabilities
additional debt and equity) and first-time consolidation of Hahn
(+€137.5 million), higher deferred tax liabilities (+€21.6 million)
Gasfedern, ACE, Fabreeka and Tech Products. In particular, this trans-
and higher non-current liability for pension plans and similar obli-
action is reflected in balance sheet as higher goodwill (+€146.0 mil-
gations (+€10.7 million). The increase of non-current financial lia-
lion), higher intangible assets (+€129.3 million), increased non-
bilities is the result of the new €455 million term loan facility the
current financial liabilities (+€137.5 million) and increased equity
Company entered into on June 7, 2016 and used for the acquisi-
(+€186.2 million).
tion of Hahn Gasfedern, ACE, Fabreeka and Tech Products as well
as the replacement of the old €265 million term loan facility. In
N O N - C U R R E N T A S S E T S
fourth quarter of fiscal 2016, the Group redeemed €50 million of
the original €455 million term loan facility, the remaining principal
Our non-current assets increased by €313.2 million primarily due
amount as of September 30, 2016 was therefore €405 million.
to the identifiable non-current assets acquired within business
Deferred tax liabilities amounting to €33.7 million were acquired
combination (i.e. acquisition of Hahn Gasfedern, ACE and Fabreeka /
within business combination. The Group acquired the non-current
Tech Products) amounting to €166.1 million and goodwill arising
liability for pension plans and similar obligations of €2.0 million
on acquisition amounting to €146.9 million.
within business combination; the remaining amount of €8.7 million
C U R R E N T A S S E T S
of the €10.7 million increase were due to the lower discount rate
used for the calculation of this liability (Sept 30, 2016: 1.35% ver-
sus Sept 30, 2015: 2.38%).
Current assets increased from €183.6 million as of September 30,
2015 by 44.7% or €82.0 million as of September 30, 2016. This is
C U R R E N T L I A B I L I T I E S
essentially the consequence of a higher cash balance (+€35.5 mil-
lion) and higher trade accounts receivable (+€34.8 million).
Current liabilities increased from €116.2 million as of September
5
0
30, 2015 by 30.9% to €152.1 million as of September 30, 2016
primarily due to higher trade accounts payable (+€11.5 million)
and higher current provisions (+€10.8 million).
E Q U I T Y
The Group’s equity as of September 30, 2016 increased from €76.7
million as of September 30, 2015 to €262.9 million as of Septem-
ber 30, 2016 as a consequence of higher capital reserves (+€152.8
million), generated and retained earnings of €48.0 million, partially
offset by other comprehensive expense of €(14.3) million. Increase
of capital reserves is the result of the capital increase on July 6, 2016,
i.e. issuance of 3,976,744 new bearer shares. The gross proceeds of
this capital increase amounted to €159.1 million; transaction costs
of €6.3 million were directly recognized in equity. Other comprehen-
sive expense in fiscal 2016 essentially comprised unrealized losses
from foreign currency translation.
STABILUSCOMBINED MANAGEMENT REPORT 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
investing activities increased from €(51.2) million in fiscal 2015 to
€(53.1) million in fiscal 2016.
Cash flow from operating activities increased by €24.4 million
from €86.0 million in fiscal 2015 to €110.4 million in fiscal 2016
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
mainly due to revenue growth and increased earnings (EBITDA
improvement by €26.4 million: FY2016 EBITDA of €125.9 million
Cash flow from financing activities increased from an outflow of
vs. FY2015 EBITDA of €99.5 million), partially offset by higher
€(28.4) million in fiscal 2015 to an inflow of €276.1 million. The
net working capital.
significant improvement by €304.5 million is primarily due to the
refinancing of Group’s financial liabilities, proceeds from the capital
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
increase as well as significantly lower interest payments €(7.0) mil-
lion in FY2016 vs. €(32.2) million in FY2015. See Consolidated
Cash outflow for investing activities increased from €(51.2) million in
Statement of Cash Flows for further details.
fiscal 2015 to €(348.8) million in fiscal 2016, essentially due to the
acquisition of assets and liabilities within business combination
Excluding the cash flows for the refinancing of financial liabilities,
amounting to €(302.5) million (net of cash acquired) and €6.8 million
i.e. receipts of €570.0 million and payments of €(432.5) million, as
proceeds from currency hedging. The capital expenditures in fiscal
well as proceeds from the capital increase of €159.1 million, the
2016, i.e. purchase of tangible and intangible assets (equipment and
cash outflow for financing activities decreased from €(28.4) million
capitalized development costs), increased from €(51.5) million in fiscal
in fiscal 2015 to €(20.5) million in fiscal 2016. This improvement
2015 to €(53.7) million in fiscal 2016. See Consolidated Statement of
was primarily the result of premature and full redemption of all
Cash Flows for further details.
outstanding senior secured notes (interest rate of 7.75%) in June
Excluding the cash outflow for the acquisition of €(302.5) million and
cated loan (interest rate of 1.5%-2.0%) in the following periods.
corresponding currency hedging proceeds of €6.8, the cash outflow for
2015 and the lower interest expenses on the subsequent syndi-
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,
2016
110.4
(348.8)
276.1
37.7
(2.1)
39.5
75.0
2015
86.0
(51.2)
(28.4)
6.4
(0.4)
33.5
39.5
T _ 010
Change
24.4
(297.6)
% change
28.4%
>100.0%
304.5
<(100.0)%
31.3
(1.7)
6.0
35.5
>100.0%
>100.0%
17.9%
89.9%
1
5
STABILUSCOMBINED MANAGEMENT REPORT F R E E C A S H F L O W ( F C F )
payments). Going forward FCF will be defined as the total cash
flow from operating and investing activities.
In the past periods the Group used the following definition of free
cash flow (FCF): Free cash flow (FCF) comprises IFRS cash flow
Free cash flow (before interest payments) decreased from €34.8
statement items “cash flow from operating activities”, “cash flow
million in fiscal 2015 to €(238.4) million in fiscal 2016. The table
from investing activities” and “payments for interest” (net interest
T_011 sets out the composition of both FCF definitions.
Free cash flow
T _ 011
I N € M I L L I O N S
Cash flow from operating activities
Cash flow from investing activities
Free cash flow (before interest payments)
Payments for interest
Free cash flow after interest payments
Year ended Sept 30,
2016
110.4
(348.8)
(238.4)
(7.0)
(245.4)
2015
86.0
(51.2)
34.8
(32.2)
2.6
Change
24.4
(297.6)
% change
28.4%
>100.0%
(273.2)
<(100.0)%
25.2
(78.3)%
(248.0)
<(100.0)%
5
2
A D J U S T E D F R E E C A S H F L O W
The adjusted free cash flow, i.e. free cash flow before acquisitions,
increased from €34.8 million in fiscal 2015 to €57.3 million in fis-
cal 2016. See table T_012.
Adjusted FCF
T _ 012
I N € M I L L I O N S
Cash flow from operating activities
Cash flow from investing activities before acquisitions
Adjusted FCF1)
1) Adjusted FCF = FCF before acquisitions
Year ended Sept 30,
2016
110.4
(53.1)
57.3
2015
86.0
(51.2)
34.8
change
% change
24.4
(1.9)
22.5
28.4%
3.7%
64.7%
STABILUSCOMBINED MANAGEMENT REPORT STATUTORY RESULTS
OF OPERATIONS AND
FINANCIAL POSITION
OF STABILUS S.A.
Non subordinated debts essentially comprise liabilities to affiliated
undertakings.
The Company’s capital and reserves increased from €451.1 million
as of September 30, 2015 to €602.4 million as of September 30,
2016 essentially due to the capital increase: On July 6, 2016 Stabilus
issued 3,976,744 new bearer shares and placed these shares with
For the statutory annual accounts of Stabilus S.A. please refer
institutional investors. The gross proceeds totaled €159.1 million
to Chapter D.
and were used to finance the acquisition of ACE, Hahn Gasfedern
and Fabreeka / Tech Products.
Results of operations
Total charges increased from €9.6 million in fiscal 2015 to €21.3 mil-
lion in fiscal 2016 mainly due to advisory costs related to the acqui-
sition of Hahn Gasfedern, ACE, Fabreeka and Tech Products.
RISKS AND
OPPORTUNITIES
The Company’s income results from services to Stabilus Group
entities. It comprises two items: other operating income as well
as other interest and finance income.
Other operating income essentially contains income from affiliated
Risk management and control
over financial reporting in the
Stabilus Group
3
5
undertakings, as a result of service level agreements.
The Company considers Risk Management (RM) to be a key part of
effective management and internal control. The Company strives
Other interest and financial income in fiscal 2016 comprised €0.7 mil-
for effective RM and financial navigation to safeguard the assets of
lion interest on receivables to affiliated undertakings (FY2015: – ).
the Company and to proactively support the Company’s strategic
As a result, loss for the period increased from €0.1 million in fiscal
to operate more effectively in a dynamic environment by providing
2015 to €7.8 million in fiscal 2016.
a framework for a systematic approach to risk management and
and compliance initiatives. The goal of RM is to help the Company
Financial Position
exploring opportunities with an acceptable level of risk. The Super-
visory Board and the Management Board regularly discuss the
operational and financial results as well as the related risks.
Total assets of Stabilus S.A.’s balance sheet according to the statu-
tory annual accounts increased from €468.7 million as of Septem-
Risk Management covers financial, strategic, compliance as well as
ber 30, 2015 to €623.3 million as of September 30, 2016 mainly
operational aspects. Operational risk is the risk of direct or indirect
due to higher receivables from other Stabilus Group entities.
loss arising from a wide variety of causes associated with the
Fixed assets essentially comprise shares in affiliated undertakings
from external factors other than credit, market and liquidity risks
which remained unchanged at €461.7 million as of September 30,
such as those arising from legal and regulatory requirements and
2016 (Sept 30, 2015: €461.7 million).
generally accepted standards of corporate behavior. These opera-
Group’s processes, personnel, technology and infrastructure, and
tional risks arise from all of the Group’s operations. The Group’s
Current assets mainly comprise receivables from affiliated under-
objective is to manage operational risk in a way to balance the
takings. These receivables increased from €6.1 million as of Sep-
avoidance of financial losses and damage to the Group’s reputa-
tember 30, 2015 to €160.5 million as of September 30, 2016, trig-
tion with overall cost effectiveness, as well as avoiding control pro-
gered by the service level agreements between Stabilus S.A. and
cedures that restrict initiative and creativity. The Company’s policy
the affiliated undertakings.
on managing financial risks seeks to ensure effective liquidity and
STABILUSCOMBINED MANAGEMENT REPORT
5
4
cash flow management and protection of Group equity capital
strength of the global economy. Therefore, our financial perfor-
against financial risks. As part of its evolution, the Company imple-
mance has been influenced, and will continue to be influenced, to
ments continuous improvements in its risk management and inter-
a significant extent, by the general state and the performance of
nal control system.
the global economy.
Our accounting control system is designed to ensure all business
Although the global economy has recovered a lot from the severe
transactions are correctly and promptly accounted for and that reli-
downturn in 2008 and 2009, the recent volatility of the financial
able data on the Company’s financial situation is available. It
markets and also the slower than expected economic growth in
ensures compliance with legal stipulations, accounting standards
Asia show that there can be no assurance that any recovery is sus-
and accounting rules. By separating financial functions and through
tainable or that there will be no recurrence of the global financial
ongoing review, we ensure that potential errors are identified on a
and economic crisis or similar adverse market conditions.
timely basis and accounting standards are complied with.
Stabilus manages these risks and opportunities by operating in dif-
Our internal control system is an integral component of the risk man-
ferent regions and markets for local and global customers.
agement. The purpose of our internal control system for accounting
and reporting is to ensure its compliance with legal stipulations, the
W E O P E R AT E I N C Y C L I C A L I N D U S T R I E S
principles of proper accounting, the rules on the International Finan-
cial Reporting Standards as adopted by the EU and with Group
Our business is characterized by high fixed costs. Should our facili-
standards. In addition, we perform assessments to help identify and
ties be underutilized, this could result in idle capacity costs, write-
minimize any risk with a direct influence on our financial reporting.
offs of inventories and losses on products due to falling average
We monitor changes in accounting standards and enlist the advice of
sale prices. Furthermore, falling production volumes cause declines
external experts to reduce the risk of accounting misstatements in
in revenue and earnings. On the other hand, our facilities might
complex issues.
have insufficient capacity to meet customer demand if the markets
in which we are active grow faster than we have anticipated.
The Company and individual entity financial statements are subject
to external audits which act as an independent check and monitor-
Our automotive business, from which we generated 70% of our
ing mechanism of the accounting system and its output. The princi-
revenue in the fiscal year ended September 30, 2016, sells its prod-
pal risks that could have a material impact on the Group are set
ucts primarily to automotive original equipment manufacturers
out in the Note 33 of the Consolidated Financial Statements and
(“OEMs”) in the automotive industry. These sales are cyclical and
are summarized below.
Risks and opportunities related to the
markets in which we operate
depend, among other things, on general economic conditions as
well as on consumer spending and preferences, which can be
affected by a number of factors, including employment, consumer
confidence and income, energy costs, interest rate levels and the
availability of consumer financing. Given the variety of such eco-
nomic parameters influencing the global automotive demand, the
We are exposed to risks and opportunities associated with the per-
volume of automotive production has historically been, and will
formance of the global economy and the performance of the econ-
continue to be, characterized by a high level of fluctuation, making
omy in the jurisdictions in which we operate.
it difficult for us to accurately predict demand levels for our prod-
ucts aimed at automotive OEMs.
Due to our global presence, we are exposed to substantial risks
and opportunities associated with the performance of the global
We generated, in the aggregate, 30% of our revenue in the fiscal
economy. In general, demand for our products is dependent on the
year ended September 30, 2016 from sales to our industrial cus-
demand for automotive products as well as for commercial vehi-
tomers. We sell our products to customers in diverse industries,
cles, agricultural machinery, medical equipment, aerospace, marine
including agricultural machines, railway, aircraft applications, com-
and furniture components, which in turn is directly related to the
mercial vehicles, marine applications, furniture, health care and
STABILUSCOMBINED MANAGEMENT REPORT production equipment. These sales depend on the industrial pro-
could affect our operations: underdeveloped infrastructure; lack of
duction level in general as well as on the development of new
qualified management or adequately trained personnel; currency
products and technologies by our customers, which include our
exchange controls, exchange rate fluctuations and devaluations;
products as component parts. Stabilus manages these opportuni-
changes in local economic conditions; governmental restrictions on
ties and risks by operating in different regions and markets for the
foreign investment, transfer or repatriation of funds; protectionist
local and global customers.
trade measures, such as anti-dumping measures, duties, tariffs or
embargoes; prohibitions or restrictions on acquisitions or joint ven-
The business environment in which we operate is characterized by
tures; changes in laws or regulations and unpredictable or unlawful
strong competition, which affects some of our products and mar-
government actions; the difficulty of enforcing agreements and col-
kets, which could reduce our revenue or put continued pressure on
lecting receivables through foreign legal systems; variations in pro-
our sales prices.
tection of intellectual property and other legal rights; potential
nationalization of enterprises or other expropriations; and political
The markets in which we operate are competitive and have been
or social unrest or acts of sabotage or terrorism. As personnel costs
characterized by changes in market penetration, increased price
have a significant effect on our business, we are also exposed to the
competition, the development and introduction of new products,
risks of labor cost inflation and limited employment contract flexibil-
product designs and technologies by significant existing and new
ity in the countries in which our production facilities are located
competitors. The majority of gas springs and electromechanical lift-
and where we have sales personnel. Any of these risks could have a
ing and closing systems manufactured globally are used for either
material adverse effect on our business, financial condition and
automotive, industrial or swivel chair applications, which are core
results of operations.
markets for us. Our competitors are typically regional companies
and our competition with them is generally on a regional scale. We
W E A R E E X P O S E D TO O P P O R T U N I T I E S A N D R I S K S
compete primarily on the basis of price, quality, timeliness of deliv-
A S S O C I AT E D W I T H M A R K E T T R E N D S A N D D E V E L-
ery and design as well as the ability to provide engineering support
O P M E N T S
and service on a global basis. Should we fail to secure the quality
of our products and the reliability of our supply in the future, then
There can be no assurance that (i) we will be successful in develop-
more and more of our customers could decide to procure products
ing new products or systems or in bringing them to market in a
from our competitors.
timely manner, or at all; (ii) products or technologies developed by
others will not render our offerings obsolete or non-competitive;
Our efforts to expand in certain markets are subject to a variety of
(iii) our customers will not substitute our products with competing
business, economic, legal and political risks.
products or alternate technologies (such as third arm systems,
hydraulic drives or hinge / direct drives); (iv) the market will accept
We manufacture our products in several countries and we market
our innovations; (v) our competitors will not be able to produce our
and sell our products worldwide. We are actively operating and
non-patented products at lower costs than we can; and (vi) we will
expanding our operations in various markets, with a focus on the
be able to fully adjust our cost structure in the event of contraction
rapidly growing and emerging markets in the Asia / Pacific region,
of demand.
where we have production plants in China and South Korea, oper-
ate a wide network of representative sales offices and employ our
The Company develops appropriate strategies as a response to
own sales force and distribution network. We plan to expand our
these or similar market trends and to enhance existing products,
Asian production capacities to meet growth expectations and sup-
develop new products or keep pace with developing technology, to
plement demand with our other regional productions as needed.
counter loss of growth opportunities, pressure on margins or the
loss of existing customers. We devote resources to the pursuit of
Potential social, political, legal, and economic instability may pose
new technologies and products. In addition, technological advances
significant risks to our ability to conduct our business and expand
and wider market acceptance of our Powerise automatic drive sys-
our activities in certain markets. Inherent in our international oper-
tems (or the development and wider market acceptance of similar
ations is the risk that any number of the following circumstances
5
5
STABILUSCOMBINED MANAGEMENT REPORT automatic lid drive systems by our competitors) could result in can-
and reputation as well as those of our products. Any errors or
nibalization of our gas spring applications.
delays caused by mistakes or miscalculations in our project man-
Risks and opportunities related to our
business
agement could negatively affect our customers’ own production
processes, resulting in reputational damage to us as supplier as
well as to the affected customer as manufacturer. In addition,
defective products could result in loss of sales, loss of customers
and loss of market acceptance.
We are exposed to fluctuations in prices of prefabricated materials
and components.
L E G A L , TA X AT I O N A N D E N V I R O N M E N TA L R I S K S
A N D O P P O R T U N I T I E S
We procure large quantities of prefabricated materials and compo-
nents from third-party suppliers. The prices of prefabricated materi-
We are exposed to warranty and product liability claims.
als, components and manufacturing services we purchase from our
suppliers depend on a number of factors, including to a limited
As a manufacturer, we are subject to product liability lawsuits and
extent the development of prices of raw materials used in these
other proceedings alleging violations of due care, violation of war-
products, such as steel, copper, rubber and water, as well as energy,
ranty obligations, treatment errors, safety provisions and claims
which have been volatile in the past.
arising from breaches of contract (like delivery delays), recall
actions or fines imposed by government or regulatory authorities in
5
6
So far, this has not resulted in a general increase in the cost of pre-
relation to our products. Any such lawsuits, proceedings and other
fabricated materials and components we procure for the manufac-
claims could result in increased costs for us. Additionally, authori-
ture of our products. However, it cannot be excluded that this vola-
ties could prohibit the future sale of our products, particularly in
tility may result in a cost increase in the future. If we are not able
cases of safety concerns. The aforementioned scenarios could result
to compensate for or pass on our cost increases to customers, such
in loss of market acceptance, loss of revenue and loss of customers,
price increases could have a material adverse impact on our finan-
in particular against the background that many of our products are
cial results. Even to the extent that we are successful in compen-
components which often have a major impact on the overall safety,
sating for or passing on our increased costs to our customers by
durability and performance of our customers’ end-product.
increasing prices on new products, the positive effects of such price
increases may not occur in the periods in which the additional
The risks arising from such warranty and product liability lawsuits,
expenses have been incurred, but in later periods. If costs of raw
proceedings and other claims are insured as we consider economi-
materials and energy rise, and if we are not able to undertake cost
cally reasonable, but the insurance coverage could prove insuffi-
saving measures elsewhere in our operations or increase to an ade-
cient in individual cases. Any major defect in one of our products
quate level the selling prices of our products, we will not be able to
could also have a material adverse effect on our reputation and
compensate such cost increases, which could have a material
market perception, which in turn could have a significant adverse
adverse effect on our business, financial condition and results of
effect on our revenue and results of operations.
operations. The long-term increase of our costs (and resultant
increase in the price of our products) may also negatively impact
In addition, vehicle manufacturers are increasingly requiring a con-
demand for our products.
tribution from, or indemnity by, their suppliers for potential product
Our future business success depends on our ability to maintain the
continuing efforts by our customers to change contract terms and
high quality of our products and processes.
conditions concerning warranty and recall participation.
liability, warranty and recall claims and we have been subject to
For customers, one of the determining factors in purchasing our
Furthermore, we manufacture many products pursuant to OEM cus-
components and systems is the high quality of our products and
tomer specifications and quality requirements. If the products man-
manufacturing processes. A decrease in the actual and perceived
ufactured and delivered by us are deemed not to be fit for use by
quality of these products and processes could damage our image
our OEM customers at the agreed date of delivery, production of
STABILUSCOMBINED MANAGEMENT REPORT the relevant products is generally discontinued until the cause of
employees’ employment. As a result, there is a risk that we have
the product defect has been identified and remedied. Furthermore,
failed or will fail to properly utilize inventions of our employees.
our OEM customers could potentially bring claims for damages on
Present or former employees who made or make employee inven-
the basis of breach of contract, even if the cause of the defect is
tions might continue to be the owners of the valuable rights to
remedied at a later point in time. In addition, failure to perform
inventions if we fail to claim the invention in a timely manner.
with respect to quality requirements could negatively affect the
market acceptance of our other products and our market reputa-
The realization of any of these risks could give rise to intellectual
tion in various market segments.
property claims against us. Such claims, if successful, could require us
to cease manufacturing, using or marketing the relevant technolo-
We are and may become party to certain disadvantageous con-
gies or products in certain countries or be forced to make changes to
tracts pursuant to which we are required to sell certain products at
manufacturing processes or products. In addition, we could be liable
a loss or to agree to broad indemnities. For example, we may enter
to pay compensation or damages for infringements or could be
into a contract at an agreed price and production costs may end up
forced to purchase licenses to make use of technology from third
exceeding what was assumed in the development phase. If the
parties. This could have a material adverse effect on our business,
assumptions on which we rely in contract negotiations turn out to
financial condition and results of operations.
be inaccurate, this could have an adverse effect on our revenue
and results of operations.
We are subject to risks from legal, administrative and arbitration
We are exposed to certain risks and opportunities with regards to
proceedings.
our intellectual property, its validity and the intellectual property of
We are involved in a number of legal and administrative proceed-
third parties.
ings related to products, patents and other matters incidental to
our business and could become involved in additional legal, admin-
Our products and services are highly dependent upon our techno-
istrative and arbitration proceedings in the future. These proceed-
logical know-how and the scope and limitations of our proprietary
ings or potential proceedings could involve, in particular in the
rights therein. We have obtained or have applied for a number of
United States, substantial claims for damages or other payments.
intellectual property rights, which can be difficult, lengthy and
Based on a judgment or a settlement agreement, we could be obli-
expensive to procure. Furthermore, patents may not provide us with
gated to pay substantial damages. Our litigation costs and those of
meaningful protection or a commercial advantage. In addition,
third parties could also be significant.
where we incorporate an individual customer’s input to create a
product that responds to a particular need, we face the risk that
Due to our high market share, we may be exposed to legal risks
such customer will claim ownership rights in the associated intel-
regarding anti-competition fines and related damage claims.
lectual property.
Our market share in most of the markets in which we operate is
Our competitors, suppliers, customers and other third parties also
high, which may induce competition authorities to initiate proceed-
submit a large number of intellectual property protection applica-
ings or third parties to file claims against us alleging violation of
tions. Such other parties could hold effective and enforceable intel-
competition laws. A successful anti-competition challenge could
lectual property rights to certain processes, methods or applica-
adversely affect us in a variety of ways. For example, it could result
tions and consequently could assert infringement claims (including
in the imposition of fines by one or more authorities and / or in
illegitimate ones) against us.
third parties (such as competitors or customers) initiating civil liti-
gation claiming damages caused by anti-competitive practices. In
A major part of our know-how is not patented and cannot be pro-
addition, anti-competitive behavior may give rise to reputational
tected through intellectual property rights. Consequently, there is a
risk to us.
risk that third parties, in particular competitors, may copy our know-
how without incurring any expenses of their own. Our intellectual
The realization of this risk could have a material effect on our busi-
property is oftentimes discovered by and during the course of our
ness, financial condition and results of operations.
7
5
STABILUSCOMBINED MANAGEMENT REPORT Interest carry-forwards may be forfeited in part or in full as a result
incurred in connection with such claims are generally difficult to
of subsequent share sales.
predict. Also, if any contamination were to become the subject of a
more intense public discussion, there is a risk that our reputation
Some Stabilus subsidiaries have significant interest carry-forwards as
or relations with our customers could be harmed.
a result of the application of the statutory interest ceiling rules that
limit the deduction of net interest expenses for tax purposes. The
Furthermore, at some of the sites at which we operate, or at which
interest carry-forward may be deducted to the extent that in subse-
we operated in the past, small quantities of hazardous materials
quent assessment periods the then current interest expenses do not
were used in the past, such as asbestos-containing building materi-
reach the interest ceiling applicable to the relevant assessment
als used for heat insulation. While we consider it unlikely, it cannot
period, and, thus, reduce the tax payable by the relevant subsidiary.
be ruled out that the health and safety of third parties (such as
former employees) may have been affected due to the use of such
However, the interest carry-forward will be forfeited on a pro rata
hazardous materials or that other claims may be asserted and we
base or in full if more than defined percentage of the shares in
could therefore be exposed to related damage claims in the future.
entities are directly or indirectly transferred to a new shareholder,
Even if we have contractually excluded or limited our liability in con-
persons related to such shareholder or a group of shareholders act-
nection with the sale of such properties, we could be held responsi-
ing in the same interest, or in case of similar transactions (such as
ble for currently unknown contamination on properties which we
a capital increase) that result in a change of the shareholder struc-
previously owned or used.
ture. Such forfeiture would increase the tax payable by the relevant
5
8
subsidiary if without the forfeiture the interest carry-forward could
The in-house legal department monitors these risks continuously and
have been used in part or in full.
reports regularly to Group management and the Supervisory Board.
We could be held liable for soil, water or groundwater contamina-
tion or for risks related to hazardous materials.
Many of the sites at which we operate have been used for indus-
Risks and opportunities related to our
capital structure
trial purposes for many years, leading to risks of contamination and
Due to our high level of debt we face potential liquidity risks.
the resulting site restoration obligations. In addition, we could be
held responsible for the remediation of areas adjacent to our sites
Our cash from operating activities, current cash resources and exist-
if these areas were potentially contaminated due to our activities.
ing sources of external financing could be insufficient to meet our
Groundwater contamination was discovered at a site in Colmar,
further capital needs, especially if our sales decrease significantly.
Pennsylvania operated by us from 1979 to 1998. In June 2012, the
Disruptions in the financial markets, including the bankruptcy, insol-
U.S. Environmental Protection Agency (“EPA”) issued an adminis-
vency or restructuring of a number of financial institutions, and
trative order against our U.S. subsidiary and determined require-
restricted availability of liquidity could adversely impact the availabil-
ments in respect of the remedy and the remedy cost. Our subsidi-
ity and cost of additional financing for us and could adversely affect
ary, together with the other responsible parties, is requested to
the availability of financing already arranged or committed. Our
reimburse the EPA for past and current expenses and to bear the
liquidity could also be adversely impacted if our suppliers tighten
remediation costs. If additional contamination is discovered in the
terms of payment as the result of any decline in our financial condi-
future, the competent authorities could assert further claims
tion or if our customers were to extend their normal payment terms.
against us, as the owner or tenant of the affected plots, for the
examination or remediation of such soil or groundwater contami-
Stabilus has set an appropriate liquidity risk management frame-
nation, or order us to dispose of or treat contaminated soil exca-
work for the management of the Group’s short, medium and long-
vated in the course of construction. We could also be required to
term funding and liquidity requirements. The Group manages
indemnify the owners of plots leased by us or of other properties, if
liquidity risk by regular reviews, maintaining certain cash reserves,
the authorities were to pursue claims against the relevant owner of
as well as open credit lines.
the property and if we caused the contamination. Costs typically
STABILUSCOMBINED MANAGEMENT REPORT We are exposed to risks and opportunities associated with changes
CORPORATE GOVERNANCE
in currency exchange rates.
We operate worldwide and are therefore exposed to financial risks
As a Luxembourg société anonyme, the Company is subject to the
that arise from changes in exchange rates. Currency exchange fluctu-
corporate governance regime as set forth in particular in the law of
ations could cause losses if assets denominated in currencies with a
August 10, 1915 on commercial companies. As a company whose
falling exchange rate lose value, while at the same time liabilities
shares are listed on a regulated market, the Company is further sub-
denominated in currencies with a rising exchange rate appreciate. In
ject to the law of May 24, 2011 on the exercise of certain share-
addition, fluctuations in foreign exchange rates could enhance or
holder rights in listed companies.
minimize fluctuations in the prices of materials, since we purchase a
considerable part of the prefabricated materials which we source
As a Luxembourg société anonyme whose shares are exclusively
from foreign currencies. As a result of these factors, fluctuations in
listed on a regulated market in Germany, the Company is not
exchange rates could affect our results of operations. External and
required to adhere to the Luxembourg corporate governance
internal transactions involving the delivery of products and services
regime applicable to companies that are traded in Luxembourg or
to and / or by third parties result in cash inflows and outflows which
to the German corporate governance regime applicable to stock
are denominated in currencies other than the functional currency of
corporations organized in Germany. The Company has decided to
our respective Group member. Among other factors, we are particu-
set up own corporate governance rules as described in the follow-
larly exposed to fluctuations of net inflows in U.S. dollar (surplus)
ing paragraphs rather than to confirm such corporate governance
and net outflows in Romanian leu (demand). To the extent that cash
regimes in order to build up a corporate governance structure
outflows are not offset by cash inflows resulting from operational
which meets the specific needs and interests of the Company.
business in such currency, the remaining net foreign currency expo-
sure is not hedged as of September 30, 2016.
The internal control systems and risk management for the establish-
ment of financial information is described in the section “Risk man-
Although we may enter into certain hedging arrangements in the
agement and control over financial reporting in the Stabilus Group”.
future, there can be no assurance that hedging will be available or
continue to be available on commercially reasonable terms. In addi-
According to the Articles of Incorporation of the Company, the Man-
tion, if we were to use any hedging transactions in the future in the
agement Board must be composed of at least two Management Board
form of derivative financial instruments, such transactions may result
members, and the Supervisory Board must be composed of at least
in mark-to-market losses. In addition, we are exposed to foreign
three Supervisory Board members. The Supervisory Board has set up
exchange risks arising from internal loan agreements, which result
the following committees in accordance with the Articles of Incorpora-
from cash inflows and outflows in currencies other than the func-
tion: Audit Committee and Remuneration Committee. The Audit Com-
tional currency of our respective Group member. As of the Septem-
mittee is responsible for the consideration and evaluation of the audit-
ber 30, 2015, these foreign exchange risks are not hedged against
ing and accounting policies and its financial controls and systems. The
by using derivative financial instruments. Our net foreign investments
Remuneration Committee is responsible for making recommendations
are generally not hedged against exchange rate fluctuations. In addi-
to the Supervisory Board and the Management Board on the terms
tion, a number of our consolidated companies report their results
of appointment and the benefits of the managers of the Company.
in currencies other than the Euro, which requires us to convert the
Further details on the composition and purpose of these commit-
relevant items into Euro when preparing our consolidated financial
tees and of the Management Board and the Supervisory Board
statements. Translation risks are generally not hedged.
is described in the section “Management and Supervisory Board
The Management Board does not see any individual or aggregate
risk that could endanger the future of Stabilus in any material way.
of Stabilus S.A.”.
9
5
STABILUSCOMBINED MANAGEMENT REPORT The Annual General Meeting shall be held on the third Wednesday
D) The control rights of any shares issued in connection with
of the month of February at 10 a.m. Luxembourg time. If such day
employee share schemes are exercised directly by the respective
is not a business day in Luxembourg, the meeting shall be held on
employees.
the next following business day, at the same hour. The Manage-
E) The control rights of any shares issued in connection with
ment Board and Supervisory Board may convene extraordinary gen-
employee share schemes are exercised directly by the respective
eral meetings as often as the Company’s interests so require. An
employees.
extraordinary general shareholders’ meeting must be convened
F) The Articles of Incorporation of the Company do not contain
upon the request of one or more shareholders who together repre-
any restrictions on voting rights.
sent at least one tenth of the Company’s share capital.
G) There are no agreements with shareholders which are known to
the Company and may result in restrictions on the transfer of
Each share entitles the holder to one vote. The right of a share-
securities or voting rights within the meaning of Directive
holder to participate in a General Meeting and to exercise the vot-
2004 / 109 / EC (Transparency Directive).
ing rights attached to his shares are determined with respect to
H) Rules governing the appointment and replacement of Manage-
the shares held by such shareholder the 14th day before the Gen-
ment Board members and the amendment of the Articles of
eral Meeting. Each shareholder can exercise his voting rights in
Incorporation:
person, through a proxyholder or in writing (if provided for in the
– The Management Board members are appointed by the
relevant convening notice).
Supervisory Board by the majority of the votes of the mem-
bers present or represented (abstention or non-participation
6
0
The information required by Article 10.1 of Directive 2004 / 25 / EC
being taken into account as a vote against the appoint-
on takeover bids which has been implemented by Article 11 of
ment), or in the case of a vacancy, by way of a decision of
the Luxembourg Law on Takeovers of May 19, 2006 (the “Law on
the remaining Management Board members for the period
Takeovers”) is set forth here below under “Disclosure Regarding
until the next Supervisory Board Meeting.
Article 11 of the Law on Takeovers of May 19, 2006”.
– Management Board members serve for the following terms:
D I S C L O S U R E S P U R S U A N T TO A R T I C L E 1 1
three years and other Board members one year. Manage-
O F T H E L U X E M B O U R G L A W O N TA K E O V E R S
ment Board members are eligible for re-appointment.
Chief Executive Officer four years, Chief Financial Officer
O F M AY 1 9 , 2 0 0 6
– Management Board members may be removed at any time
with or without cause by the Supervisory Board by a simple
A) For information regarding the structure of capital, reference is
majority of the votes.
made to Note 22 of the Consolidated Financial Statements.
– Resolutions to amend the Articles of Incorporation may be
B) The Articles of Incorporation of the Company do not contain
adopted by a majority of two thirds of the votes validly cast,
any restrictions on the transfer of shares of the Company.
without counting the abstentions, if the quorum of half of
C) According to the voting rights notifications received in fiscal
the share capital is met. If the quorum requirement of half
year 2016, the following shareholders held more than 5% of
of the share capital of the Company is not met at the
total voting rights attached to Stabilus shares as of September
Annual General Meeting, then the shareholders may be
30, 2016: Marathon Asset Management LLP, London, UK (direct:
re-convened to a second General Meeting. No quorum is
1,745,599 voting rights attached to shares or 7.07% of total vot-
required in respect of such second General Meeting and the
ing rights, indirect: 1,459,614 voting rights attached to shares or
resolutions are adopted by a supermajority of two-thirds of
5.91% of total voting rights), BlackRock, Inc., Wilmington, DE,
the votes validly cast, without counting the abstentions.
USA (indirect: 1,460,598 voting rights attached to shares or
I) Powers of the Management Board:
5.91% of total voting rights; financial instruments: 664,744 vot-
– The Company is managed by a Management Board under
ing rights through financial instruments or 2.69% of total voting
the supervision of the Supervisory Board.
rights) and Deutsche Asset Management Investment GmbH,
– The Management Board is vested with the broadest powers
Frankfurt am Main, Germany (direct: 1,302,859 voting rights
to perform or cause to be performed any actions necessary
attached to shares or 5.27% of total voting rights).
or useful in connection with the purpose of the Company.
STABILUSCOMBINED MANAGEMENT REPORT – All powers not expressly reserved by the Luxembourg Com-
panies Act or by the Articles of Incorporation to the General
Meeting or the Supervisory Board fall within the authority of
SUBSEQUENT EVENTS
the Management Board.
As of December 13, 2016, there were no further events or develop-
– Certain transactions and measures are subject to the prior
ments that could have materially affected the measurement and pres-
approval of the Supervisory Board on the terms set out in
entation of Group’s assets and liabilities as of September 30, 2016.
the Articles of Incorporation.
– The Management Board may appoint one or more persons,
who may be a shareholder or not, or who may be a member
of the Management Board or not, to the exclusion of any
member of the Supervisory Board, who shall have full author-
ity to act on behalf of the Company in all matters pertaining
OUTLOOK
to the daily management and affairs of the Company.
The global economic environment continues to remain challenging:
– The Management Board is also authorized to appoint a per-
In its latest October 2016 World Economic Outlook, the IMF essen-
son, either a director or not, to the exclusion of any member
tially expects further stagnation of advanced economies in calendar
of the Supervisory Board, for the purposes of performing
years 2016 and 2017. Slowdown in the United States, Brexit, and
specific functions at every level within the Company.
possible further populist calls for restrictions on trade and immigra-
– The Management Board may also appoint committees and
tion could further stifle the growth. The world economy is expected
sub-committees in order to deal with specific tasks, to advise
to expand in the year-on-year comparison by 3.1% in 2016 and by
the Management Board or to make recommendations to the
3.4% in 2017, driven primarily by recoveries in major emerging mar-
Management Board and / or, as the case may be, the General
kets and developing economies, including Russia and Brazil. See
1
6
Meeting, the members of which may be selected either from
table T_001 on page 42 above.
among the members of the Management Board or not, to the
exclusion of any member of the Supervisory Board.
IHS expect the worldwide production of light vehicles to increase
– The Management Board does not have currently any author-
to around 91.2 million units in calendar year 2016 (+2.8% y / y)
ity to issue shares in the Company under the Articles of
and around 92.8 million units in calendar year 2017 (+1.8% y / y).
Incorporation.
See table T_002 on page 42 above.
– The Management Board does not have currently any author-
ity to buy back shares under the Articles of Incorporation or
We intend to grow our automotive and industrial business in all
a buy-back program.
three regions: Thus, in fiscal 2017, in year-on-year comparison, we
J) There are no significant agreements to which the Company is
expect to improve revenue in all our operating segments – Europe,
party and which take effect, alter or terminate upon a change
NAFTA, Asia / Pacific and RoW – by a growth rate in the range of
of control of the Company following a takeover bid.
16% to 18%. Due to our growth projects and initiatives in China
K) There are no agreements between the Company and its Man-
and the anticipated recoveries of emerging markets, we expect
agement Board members or employees providing for compensa-
Asia / Pacific and RoW’s growth to be at the upper end of this
tion if they resign or are made redundant without valid reason
range. In general, a strong US dollar has a positive effect on the
or if their employment ceases because of a takeover bid.
Group’s revenue, resulting from the currency translation of NAFTA’s
revenue into euro. The above-mentioned revenue growth estima-
tions are based on an US$ / € currency rate assumption of 1.15 $ / €.
STABILUSCOMBINED MANAGEMENT REPORT Considering our product markets, we reason that Powerise will con-
approximately €865 million – which corresponds to a revenue
tinue to be an important growth driver in the next fiscal year as well.
growth rate of around 17% – and an adjusted EBIT margin in the
In the Automotive Gas Spring and Industrial business units we aim to
range of 13%-14%. A five dollar cent lower currency rate assump-
outperform the rate of worldwide light-vehicle production and the
tion of 1.10 $ / € would lead to a c. €15 million higher revenue
growth rate of the global economy (GDP growth) respectively.
expectation of approximately €880 million. On the other hand, a
five dollar cent higher currency rate assumption of 1.20 $ / € would
Under assumption of the average US$ / € currency rate for fiscal
result in a c. €14 million lower revenue forecast of approximately
2017 of 1.15 $ / €, we expect a total revenue in fiscal 2017 of
€851 million.
6
2
STABILUSCOMBINED MANAGEMENT REPORT C
C H A P T E R C
CONSOLIDATED
FINANCIAL
STATEMENTS
CONSOLIDATED FINANCIAL
STATEMENTS
for the fiscal year ended September 30, 2016
6 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
6 6
C O N S O L I D A T E D S T A T E M E N T
103
17 Other assets
103
18
Inventories
104
19 Trade accounts receivable
104
20 Current tax assets
105
21 Cash and cash equivalents
O F F I N A N C I A L P O S I T I O N
105
22 Equity
107
23 Financial liabilities
108
24 Other financial liabilities
6 8
C O N S O L I D A T E D S T A T E M E N T
108
25 Provisions
O F C H A N G E S I N E Q U I T Y
111
26 Pension plans and similar obligations
114
27 Trade accounts payable
114
28 Current tax liabilities
115
29 Other liabilities
115
30 Leasing
117
31
Contingent liabilities and other financial commitments
118
32 Financial instruments
120
33 Risk reporting
123
34 Capital management
124
35
Notes to the consolidated statement of cash flows
124
36
Segment reporting
129
37
Share-based payment
132
38 Auditor’s fees
133
39 Related party relationships
133
40
Remuneration of key management personnel
6 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
7 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 Business combination
5 Revenue
70
71
79
87
89
90
91
91
92
92
92
96
97
99
6
Cost of sales, research and development,
134
41 Subsequent events
selling and administrative expenses
7 Other income
8 Other expenses
9 Finance income
10 Finance costs
11
Income tax expense
12 Earnings per share
1 3 5 R E S P O N S I B I L I T Y S T A T E M E N T
1 3 6
M A N A G E M E N T B O A R D O F S T A B I L U S S . A .
13 Property, plant and equipment
1 3 7 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 .
14 Goodwill
101
15 Other intangible assets
102
16 Other financial assets
1 3 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
S
T
A
B
I
L
U
S
6
4
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
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the fiscal year ended September 30, 2016
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 1)
Unrealized actuarial gains and losses 2)
Cash flow hedges - effective portion of changes in fair value1)
Cash flow hedges - basis adjustment
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
T _ 013
Year ended Sept 30,
2016
737,501
2015
611,271
(547,700)
(463,594)
N OT E
5
6
6
6
6
7
8
9
10
11
189,801
(26,590)
(55,462)
(33,881)
12,074
(9,300)
76,644
2,556
(13,261)
65,938
(17,951)
47,987
16
12
47,971
22
22
22
22
12
12
(8,858)
(5,490)
6,798
(6,798)
(14,348)
33,639
16
33,623
2.21
2.21
5
6
147,677
(24,218)
(44,095)
(27,329)
11,238
(7,602)
55,671
17,851
(42,405)
31,117
(14,120)
16,997
47
16,950
(16,390)
34
–
–
(16,356)
641
47
594
0.82
0.82
1) Item that may be reclassified (‘recycled’) to profit and loss at a future point in time when specific conditions are met.
2) Item that will not be reclassified to profit and loss.
The accompanying Notes form an integral part of these Consolidated Financial Statements.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
as of September 30, 2016
Consolidated statement of financial position
T _ 014
I N € T H O U S A N D S
Assets
Property, plant and equipment
Goodwill
Other intangible 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
6
6
N OT E
Sept 30, 2016
Sept 30, 2015
13
14
15
17
11
18
19
20
16
17
21
167,569
197,457
295,815
3,267
7,743
133,952
51,458
166,475
1,864
4,929
671,851
358,678
74,681
97,600
1,160
3,160
13,923
75,037
265,561
937,412
59,783
62,848
3,465
7,899
10,093
39,473
183,561
542,239
STABILUSCONSOLIDATED FINANCIAL STATEMENTS Consolidated statement of financial position
T _ 014
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
Other 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
The accompanying Notes form an integral part of these Consolidated Financial Statements.
N OT E
Sept 30, 2016
Sept 30, 2015
22
22
22
22
23
24
25
26
11
29
27
23
24
28
25
29
247
225,848
72,535
(35,832)
262,798
94
262,892
396,095
2,314
3,781
58,738
60,634
879
522,441
80,389
5,000
9,399
10,904
30,898
15,489
152,079
674,520
937,412
207
73,091
24,871
(21,484)
76,685
24
76,709
258,644
2,139
1,032
47,989
38,976
576
349,356
68,929
5,000
7,978
3,040
20,128
11,099
116,174
465,530
542,239
7
6
STABILUSCONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
for the fiscal year ended September 30, 2016
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
Balance as of Sept 30, 2014
207
73,091
7,920
(5,128)
T _ 015
Equity
attributable to
shareholders
of Stabilus
Non-
controlling
interests
Total equity
76,090
16,950
33
47
76,123
16,997
Profit / (loss) for the period
Other comprehensive
income / (expense)
Total comprehensive
income for the period
Dividends
6
8
Balance as of Sept 30, 2015
Profit / (loss) for the period
Other comprehensive
income / (expense)
Total comprehensive
income for the period
Dividends
Change in non-controlling interest
Capital increase
22
22
22
22
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
40
152,757
16,950
–
16,950
(16,356)
–
–
–
(16,356)
(16,356)
–
(16,356)
207
73,091
24,871
(21,484)
47,971
–
594
–
76,685
47,971
47
(56)
24
16
641
(56)
76,709
47,987
–
(14,348)
(14,348)
–
(14,348)
47,971
(14,348)
33,623
–
(307)
–
–
–
–
–
(307)
152,797
262,798
16
(78)
133
–
94
33,639
(78)
(174)
152,797
262,892
Balance as of Sept 30, 2016
247
225,848
72,535
(35,832)
The accompanying Notes form an integral part of these Consolidated Financial Statements.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CASH FLOWS
for the fiscal year ended September 30, 2016
Consolidated statement of cash flows
I N € T H O U S A N D S
Profit / (loss) for the period
Current income tax expense
Deferred income tax expense
Net finance result
Depreciation and amortization (incl. impairment losses)
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 provisions
Changes in deferred tax assets and liabilities
Income tax payments
Cash flow from operating activities
Proceeds from disposal of property, plant and equipment
Purchase of intangible assets
Purchase of property, plant and equipment
Acquisition of assets and liabilities within the business combination,
net of cash acquired
Proceeds from currency hedging related to business combinations
Cash flow from investing activities
Receipts from contributions of equity
Receipts under senior facilities
Payments for redemption of senior secured notes
Payments for redemption of senior facilities
Payments for finance leases
Payments of transaction costs
Dividends paid to non-controlling interests
Payment for acquisition of non-controlling interests
Payments for interest
Cash flow 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
The accompanying Notes form an integral part of these Consolidated Financial Statements.
9
6
N OT E
11
11
9/10
6
35
15
13
4
22
23
30
35
T _ 016
Year ended Sept 30,
2016
47,987
29,961
(12,010)
10,705
49,285
(22,098)
277
(23,596)
7,615
10,722
13,190
12,010
(13,599)
110,449
543
(13,783)
(39,895)
(302,478)
6,798
2015
16,997
16,920
(2,800)
24,554
43,813
(3,142)
(10,243)
(6,351)
15,205
(2,718)
8,235
2,800
(17,274)
85,996
267
(15,365)
(36,068)
–
–
(348,815)
(51,166)
159,070
570,000
–
(432,500)
(471)
(12,788)
(78)
(174)
(6,984)
276,075
37,708
(2,145)
39,473
75,037
–
270,000
(256,123)
(2,500)
(1,841)
(5,650)
(56)
–
(32,237)
(28,407)
6,423
(444)
33,494
39,473
STABILUSCONSOLIDATED FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
as of and for the fiscal year ended September 30, 2016
1 General Information
Stabilus S.A., Luxembourg, hereinafter also referred to as “Stabilus” or the “Company” is a public lim-
ited 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 Com-
merce et des Sociétés Luxembourg) under No. B0151589 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.
7
0
The Company´s 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
opening and closing equipment. The products are used in a wide range in automotive and industrial
applications, as well as in the furniture industry. Typically the products are used to support the lifting
and lowering or dampening of movements. As 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 as 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 accord-
ance with International Financial Reporting Standards (IFRS), as adopted by the EU.
The consolidated financial statements were authorized for issue by the Management Board on
December 13, 2016.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 2 Basis for presentation
P R E PA R AT I O N
In the statement of financial position assets and liabilities are classified as non-current and current.
They are reported as current if the remaining term is less than one year and as non-current if the
remaining term is over one year. Deferred tax assets and liabilities, as well as provisions for defined
benefit pension plans and similar obligations are reported as non-current. 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 historical cost basis, except for certain
items, that are measured at fair value, like derivative financial instruments. The 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
The preparation of financial statements requires estimates that involve complex and subjective judg-
ments and the use of assumptions for matters that are uncertain and are subject to change. Estimates
can change from period to period and can have a material impact on financial positions, income and
expenses. Management regularly reviews estimates and assumptions. These are updated if necessary.
Impairment of non-financial assets:
Stabilus monitors whether there are indications that its non-financial assets may be impaired. Goodwill
and development cost under construction are tested for impairment annually. 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.
Trade and other receivables:
The allowance for doubtful accounts requires management judgment and review of individual receiva-
bles based on individual customer creditworthiness, current economic trends and analysis of historical
allowances. Please also refer to Note 19.
Deferred tax assets:
The valuation of deferred tax assets is based on mid-term business plans of the entities carrying the
deferred tax asset. The mid-term business plans range from three to five years and include various
assumptions and estimates relating to the business development, strategic changes, cost optimization
and business improvement and also general market and economic development. Deferred tax assets
are recognized to the extent that sufficient taxable profit will be available for the utilization of the
deductible temporary differences. Stabilus recognizes a valuation allowance for deferred tax assets
when it is unlikely that sufficient future taxable profit will be available. Please also refer to Note 11.
1
7
STABILUSCONSOLIDATED FINANCIAL STATEMENTS Provisions:
Significant estimates are required in the determination of provisions related to pensions and other
obligations, contract losses, warranty costs and legal proceedings. Please also refer to Notes 25 and 26.
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 uncertain-
ties. Actual results can vary from expectations due to changes in the overall economy, evolvement of
price-aggressive competitors, significant price changes for raw materials and overall purchase costs.
Furthermore quality issues may result in significant costs for the Group. The Group financing is based
on variable interest rates and is subject to risks and uncertainties due to the development of the Euri-
bor and the net leverage level of the Company. The term of the loan agreement ends June 2021.
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
The consolidated financial statements include the financial statements of Stabilus S.A. and all subsidi-
aries, which are directly or indirectly controlled by Stabilus. Control exists if the Company has the deci-
sion-making power over the relevant activities of an entity and it participates in positive and negative
variable returns from that entity and it can affect these returns by its decision-making power.
Non-controlling interests represent the portion of profit and loss and net assets not held by the Com-
pany. They are presented separately in the consolidated statement of comprehensive income and the
consolidated 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 date of acquisition or until the date of disposal, as
appropriate.
Next to Stabilus S.A., 41 (PY: 27) subsidiaries (see following list), are included in the consolidated
financial statements as of September 30, 2016.
7
2
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.
Servus Luxembourg Holding S.C.A.
Luxembourg
Servus Sub S.à r.l.
Servus Luxembourg S.à r.l.
Blitz F10-neun GmbH
Koblenz, Germany
Stabilus S.A.
T _ 017
Consolidation
method
Full
Full
Full
Full
Full
100.00%
100.00%
100.00%
99.9968%
0.0032%
100.00%
Interest and control held by
Holding in %
STABILUSCONSOLIDATED FINANCIAL STATEMENTS Subsidiaries
N A M E O F T H E C O M PA N Y
Registered office
of the entity
Interest and control held by
Holding in %
T _ 017
Consolidation
method
Blitz F10-acht-drei-drei GmbH & Co KG
Koblenz, Germany
Servus III (Gibraltar) Limited
Blitz F10-neun GmbH
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.
Stable UK HoldCo Ltd.
Banbury, United Kingdom Stabilus UK Ltd.
LinRot Holding AG
Stabilus UK Ltd.
Stabilus GmbH
Zurich, Switzerland
Stable II S.à r.l.
Banbury, United Kingdom Stable Beteiligungs GmbH
Koblenz, Germany
Stable Beteiligungs GmbH
Stabilus Powerise GmbH
Melle, Germany
LinRot Holding AG
Stabilus Pty. Ltd.
Stabilus Ltda.
Stabilus Espana S.L.
Stabilus Co. Ltd.
Stabilus S.A. de C.V.
Stabilus Inc.
Stabilus Limited
Dingley, Australia
Stable HoldCo Australia Pty. Ltd.
Itajubá, Brazil
Lezama, Spain
Stabilus GmbH
Stabilus GmbH
Busan, South Korea
Stabilus GmbH
Stabilus UK Ltd.
Gastonia, USA
Stable HoldCo Inc.
Auckland, New Zealand
Stabilus GmbH
Ramos Arizpe, Mexico
Stabilus GmbH
99.9998%
Stabilus Japan Corp.
Yokohama, Japan
Stable Beteiligungs GmbH
Stabilus France S.à r.l.
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 US Holding Corp.
Wilmington, USA
Stable II S.à r.l.
Stabilus Motion Controls GmbH
Langenfeld, Germany
Stable II S.à r.l.
Stabilus UK Ltd.
Fabreeka Group Holdings Inc.
Stoughton, USA
Stabilus US Holding Corp.
Fabreeka International Holdings Inc.
Stoughton, USA
Fabreeka Group Holdings Inc.
Fabreeka International Inc.
Stoughton, USA
Fabreeka International Holdings Inc.
Tech Products Corporation
Miamisburg, USA
Fabreeka International Holdings Inc.
Fabreeka GmbH
Fabreeka GB Inc.
ACE Controls Inc.
ACE Controls Japan L.L.C.
Büttelborn, Germany
Fabreeka International Holdings Inc.
Stoughton, USA
Fabreeka International Holdings Inc.
F. Hills, USA
F. Hills, USA
Stabilus US Holding Corp.
ACE Controls Inc.
ACE Controls (Pinghu) Co. Ltd.
Jiaxing City, China
ACE Controls Inc.
ACE Controls International Inc.
F. Hills, USA
Stabilus US Holding Corp.
ACE Stoßdämpfer GmbH
Langenfeld, Germany
ACE Controls International Inc.
Hahn-Gasfedern GmbH
Aichwald, Germany
Stabilus Motion Controls GmbH
Stabilus Motion Controls GmbH
94.90%
5.10%
94.90%
5.10%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.99%
100.00%
100.00%
0.0002%
100.00%
80.00%
100.00%
100.00%
3.01%
96.99%
100.00%
98.00%
2.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
5.10%
94.90%
100.00%
3
7
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
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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 domestic and foreign entities included in the consolidated financial state-
ments are accounted for in accordance with the uniform accounting policies of the Stabilus Group.
Receivables and liabilities or provisions between the consolidated entities are eliminated. Intragroup
revenue and other intragroup income and the corresponding cost and expenses are eliminated. Inter-
company gains and losses on intragroup delivery and service transactions are eliminated through profit
or loss, unless they are immaterial.
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 obtained by the Group. Goodwill is measured as:
•
the fair value of the consideration transferred, plus
•
the recognized amount of any non-controlling interests in the acquiree, less
7
4
•
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 transactions exist-
ing before the business combination. 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 connection with the business combination are expensed as incurred.
Non-controlling interests in the net assets (excluding goodwill) of consolidated subsidiaries consist of
the value of those interests at the date of the original business combination and their share of changes
in equity since that date.
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 (€).
Each entity in the Group determines its functional currency, which is the currency of the primary eco-
nomic environment in which the entity operates. Items included in the financial statements of each
entity are measured using the functional currency. Transactions in foreign currency are initially trans-
lated into the functional currency using the exchange rate at the date of the transaction. Monetary
assets and liabilities denominated in foreign currency are translated into the functional currency using
the exchange rate at the balance sheet date. These foreign currency exchange gains or losses are rec-
ognized in profit and loss.
Non-monetary items in a foreign currency that are measured at historical cost are translated using the
exchange rates as of the date of the initial transaction. Non-monetary items in foreign currency meas-
ured at fair value are translated using the exchange rate at the date when the fair value is determined.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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 operation and translated at the historic rate.
Assets and liabilities of foreign subsidiaries with a functional currency other than euro (€) are trans-
lated using the exchange rates as at the balance sheet date, while their income and expenses are
translated using the average exchange rates during the period.
Foreign currency exchange gains and losses on operating activities are included in other operating
income and expense. Foreign currency gains and losses on financial receivables and debts are included
in interest income and expense.
Translation adjustments arising from exchange rate differences are recognized directly in shareholder’s
equity and are presented as a separate component of equity. On disposal of a foreign entity, the trans-
lation adjustment relating to that particular foreign operation is recognized 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
C O U N T RY
Australia
Brazil
China
South Korea
Mexico
Romania
USA
5
7
T _ 018
Closing rate Sept 30,
Average rate for the
year ended Sept 30,
2016
1.4627
3.6208
7.4854
2015
1.6118
4.6145
7.1672
2016
1.5098
4.0300
7.2606
2015
1.4596
3.4048
7.1614
1,234.2600
1,346.6700
1,293.7400
1,286.5100
21.8853
19.2032
19.9038
17.3371
4.4523
1.1223
4.4167
1.1245
4.4853
1.1110
4.4410
1.1602
I S O C O D E
AUD
BRL
CNY
KRW
MXP
ROL
USD
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 7
6
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 / N E W S TA N DA R D S I S S U E D
The accounting policies applied in the consolidated financial statements comply with the IFRSs
required to be applied in the EU as of September 30, 2016. In financial year 2016, the following new
and revised standards and interpretations had to be applied for the first time in the Group’s financial
statements:
New standards and interpretations
T _ 019
S TA N D A R D / I N T E R P R E TAT I O N
Annual Improvements
Annual Improvements
Amendments to IAS 19
Annual Improvements to IFRSs
2011-2013 Cycle
(issued on December 12, 2013)
Effective date
stipulated by IASB
Effective date
stipulated by EU
Impact on Stabilus
financial statements
July 1, 2014
January 1, 2015
No impact
Annual Improvements to IFRSs 2010-2012 Cycle
(issued on December 12, 2013)
July 1, 2014
February 1, 2015
Immaterial
Defined Benefit Plans:
Employee Contributions
(issued on November 21, 2013)
July 1, 2014
February 1, 2015
Immaterial
The effective date presented above is the date of mandatory application in annual periods beginning on or after that date.
Standards and interpretations issued and endorsed by the EU (not yet adopted)
T _ 020
Amendments to IAS 16
and IAS 41
Amendments to IFRS 11
Amendments to IAS 16
and IAS 38
Annual Improvements
Amendments to IAS 1
Amendments to IAS 27
Amendments to IFRS 10,
IFRS 12 and IAS 28
IFRS 15
Bearer Plants
(issued on June 30, 2014)
Accounting for Acquisitions of Interests in
Joint Operations
(issued on May 6, 2014)
Clarification of Acceptable Methods of
Depreciation and Amortisation (issued on
May 12, 2014)
Effective date
stipulated by IASB
Effective date
stipulated by EU
Impact on Stabilus’
financial statements
January 1, 2016
January 1, 2016
No impact
January 1, 2016
January 1, 2016
No impact
January 1, 2016
January 1, 2016
No impact
Annual Improvements to IFRSs 2012–2014 Cycle
(issued on September 25, 2014)
January 1, 2016
January 1, 2016
No impact
Disclosure Initiative
(issued on December 18, 2014)
Equity Method in Separate Financial Statements
(issued on August 12, 2014)
Investment Entities – Applying the Consolidation
Exception
(issued on 18 December 2014)
Revenue from Contracts with Customers
(issued on May 28, 2014)
including amendments to IFRS 15:
Effective date of IFRS 15
(issued on September 11, 2015)
January 1, 2016
January 1, 2016
Evaluating
January 1, 2016
January 1, 2016
No impact
January 1, 2016
January 1, 2016
No impact
January 1, 2018
January 1, 2018
Evaluating
IFRS 9
Financial Instruments (issued on July 24, 2014)
January 1, 2018
January 1, 2018
Evaluating
The effective date presented above is the date of mandatory application in annual periods beginning on or after that date.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS IFRS 15 Revenue from Contracts with Customers
In May 2014, the IASB issued IFRS 15 “Revenue from Contracts with Customers”. IFRS 15 will apply to all
industries and all customer contracts for the delivery of goods or provision of services and will supersede
all existing provisions governing the recognition of revenue. The core principle of IFRS 15 is that revenue
will be recognized in an amount that corresponds to the consideration that the entity expects to receive.
A so-called “5-step model” is used to determine at which point in time or over which period of time reve-
nues are to be recognized and in what amount. The standard also includes further detailed guidance and
extended disclosure requirements. In April 2016, the IASB issued clarifications to IFRS 15. These amend-
ments include clarifications of a variety of requirements of IFRS 15 and simplifications with respect to the
transition to the new standard. IFRS 15 must be applied for the first time for financial years beginning on
or after January 1, 2018. In general IFRS 15 must be applied retrospectively, but various transition options
are allowed; earlier application is permitted. IFRS 15 will have an impact on the consolidated financial
statements of the Group. The extent of the effects is currently being assessed.
IFRS 9 Financial Instruments
The IASB has published the final version of IFRS 9 “Financial Instruments”, bringing together the classifi-
cation and measurement, impairment and hedge accounting phases of the three-part project to replace
IAS 39 “Financial Instruments: Recognition and Measurement”. IFRS 9 supersedes all previous versions of
IFRS 9. In accordance with the approach of IFRS 9, all financial assets are measured at amortized cost or
fair value. The classification to one of the two measurement categories is based on how an entity manages
its financial instruments (so-called business model) and the contractual cash flow characteristics of the
financial assets. The final version amends the classification and measurement model for financial assets by
adding a new fair value through other comprehensive income (FVTOCI) category for certain debt instru-
ments. Furthermore, IFRS 9 adds a new expected loss impairment model that is based on the concept of
providing for expected losses at inception of a contract, except in the case of purchased or originated credit-
impaired financial assets, where expected credit losses are incorporated into the effective interest rate. In
addition, IFRS 9 establishes a new hedging model that represents a substantial overhaul of hedge account-
ing that will enable entities to better reflect their risk management activities in their financial statements.
Finally, extensive disclosures are required. IFRS 9 must be applied for financial years beginning on or after
January 1, 2018. In general IFRS 9 must be applied retrospectively, but various transition options are allowed;
earlier application is permitted. The investigation of the effects on the consolidated financial statements
of the Group resulting from IFRS 9 has not yet been completed.
7
7
STABILUSCONSOLIDATED 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 but not yet endorsed by the EU
T_021
I F R S S I S S U E D B U T N OT Y E T
A D O P T E D :
S TA N D A R D / I N T E R P R E TAT I O N
IFRS 16
Amendments to IAS 12
Amendments to IAS 7
Clarifications to IFRS 15
Amendments to IFRS 2
Amendments to IFRS 4
Annual Improvements
IFRIC 22
Amendments to IAS 40
Leases
(issued on January 13, 2016)
Recognition of Deferred Tax Assets
for Unrealised Losses
(issued on January 19, 2016)
Disclosure Initiative
(issued on January 29, 2016)
Clarifications to IFRS 15 Revenue
from Contracts with Customers
(issued on April 12, 2016)
Classification and Measurement of Share-
based Payment Transactions
(issued on 20 June 2016)
Applying IFRS 9 Financial Instruments
with IFRS 4 Insurance Contracts
(issued on September 12, 2016)
Annual Improvements to IFRS Standards
2014-2016 Cycle (issued on 8 December
2016)
Foreign Currency Transactions and
Advance Consideration (issued on 8
December 2016)
Transfers of Investmenty Property
(issued on 8 December 2016)
Effective date
stipulated by IASB
Effective date
stipulated by EU
Impact on Stabilus
financial statements
January 1, 2019
Pending
Evaluating
January 1, 2017
Pending
No impact
January 1, 2017
Pending
Evaluating
January 1, 2018
Pending
Evaluating
January 1, 2018
Pending
No impact
January 1, 2018
Pending
No impact
January 1, 2017
January 1, 2018
Pending
Evaluating
January 1, 2018
Pending
Evaluating
January 1, 2018
Pending
No impact
The effective date presented above is the date of mandatory application in annual periods beginning on or after that date.
7
8
The IASB published new standards and amendments, whose application is not yet compulsory in finan-
cial year 2016 or which have not yet been endorsed by the EU. The Group is not planning an early
application of these standards and amendments.
IFRS 16 Leases
In January 2016, the IASB issued IFRS 16 “Leases”. IFRS 16 supersedes the previous standard for lease
accounting (IAS 17) and the relating interpretations (IFRIC 4, SIC-15 and SIC-27). The objective of the
new leasing standard is to recognize all leases and their associated contractual rights and obligations
in the balance sheet. Therefore, the previous distinction in IAS 17 between finance and operating lease
is eliminated from the perspective of a lessee. Apart from short-term and low-value contracts, IFRS 16
introduces a methodology for all lease contracts similar to that previously applied for finance leases,
i.e. alongside a right-of-use asset a corresponding lease liability is also recognized upon initial recogni-
tion. Both items are updated as appropriate. When accounting for leases, lessors are still required to
perform a review to classify leases as operating or finance leases. IFRS 16 must be applied for financial
years beginning on or after January 1, 2019; earlier application is permitted under certain conditions.
IFRS 16 will basically make it necessary to recognize all leases in the balance sheet in future. For the
financial statements of the Group, this relates in particular to those rental agreements previously clas-
STABILUSCONSOLIDATED FINANCIAL STATEMENTS sified as operating leases, which are disclosed as financial commitments in the notes. As a result,
non-current assets and financial debt will both increase in future. Furthermore, changes will also arise
in the income statement. To date, rental payments in connection with operating lease agreements were
mainly included as expenses within operating expenses. In future, these expenses will be split into
depreciation and interest expenses and recognized accordingly. The extent of the effects is currently
being assessed.
Amendments to IAS 7: Disclosure Initiative
Amendments to IAS 7 “Statement of Cash Flows: Disclosure Initiative” are intended to enhance the
information provided on changes in liabilities for financing activities. These amendments must be
applied for the first time in financial years beginning on or after January 1, 2017; earlier application is
permitted. The amendments are intended to expand the disclosure of components of changes in liabili-
ties arising from financing activities for the purpose of reconciliation. Therefore, the amendments are
expected to have an impact on the disclosures of the statement of cash flows in the notes.
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 consideration
received, excluding discounts, rebates, and other sales taxes or duty. Revenue from the sale of goods is
recognized when significant risks and rewards of ownership have been transferred to the customer, a
price is agreed or can be determined and when the payment is probable. Revenue from a contract to pro-
vide 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 will flow to the Group.
C O S T O F S A L E S
Cost of sales comprises costs for the production of goods and for merchandise sold. In addition to
directly attributable material and production costs, indirect production-related overheads like produc-
tion and purchase management, warranty expenses, depreciation on production plants and amortiza-
tion of intangible assets are included. Cost of sales also includes write-downs on inventories to the
lower net realizable value.
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 as incurred.
S E L L I N G E X P E N S E S
Selling expenses include costs for sales personnel and other sales related costs such as marketing and
travelling. Shipping and handling costs are expensed within selling expenses as incurred. Fees charged
to customers are shown as sales. Advertising costs (expenses for advertising, sales promotion and
other sales related activities) are expensed within selling expenses as incurred.
9
7
STABILUSCONSOLIDATED 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
The interest income and expense include the interest expenses from liabilities and the interest income
from the investment of cash. The interest components from defined benefit pension plans and similar
obligations are reported within 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 income and expenses from financial transactions that
are not included in the interest income and expense.
I N C O M E TA X E S
8
0
Income tax expense comprises current and deferred tax.
Current tax comprises the expected tax payable or receivable for the year and any adjustment related
to previous years and is measured using tax rates enacted or substantively enacted at the reporting
date. Current tax assets and liabilities are offset only if certain criteria are met.
Deferred tax is recognized on temporary differences between the carrying value of assets and liabilities
under IFRS and their tax base, except for temporary differences arising from goodwill or from the initial
recognition, other than in a business combination, of assets and liabilities in a transaction that affects
neither taxable nor accounting profit.
Deferred tax assets are recognized for deductible temporary differences, tax loss carry-forwards and tax
credits to the extent that it is probable that future taxable profits will be available against which they can
be utilized. Deferred tax assets are reviewed at each reporting date to determine whether it is probable
that the related tax benefit will be realized. The carrying value is adjusted accordingly.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when
they reverse, based on tax rates enacted or substantively enacted at the reporting date. The measure-
ment of deferred tax reflects the tax consequences that would follow from the manner in which Stabilus
expects to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and
liabilities are offset only if certain criteria are met.
G O O D W I L L
Goodwill is measured at cost less any accumulated impairment losses and is not amortized. It is tested for
impairment at least annually and if an indication for impairment exists.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The Group tests goodwill for impairment by comparing its recoverable amount with its carrying amount.
For this purpose at the acquisition date goodwill is allocated to cash-generating units (CGU), that are
expected to benefit from the business combination. Goodwill is tested for impairment at the lowest level
within the Group at which goodwill is being managed.
An impairment loss on goodwill is recognized if the recoverable amount of the cash-generating unit is
below its carrying amount. Impairment losses are recognized in profit or loss. Impairment losses on
goodwill are not reversed.
OT H E R I N TA N G I B L E A S S E T S
Purchased intangible assets are measured at acquisition cost and internally generated intangible assets
at production cost less any accumulated amortization and impairment losses. Internally generated
intangible assets are only recognized when the criteria in accordance with IAS 38 are met.
Intangible assets with finite useful lives are amortized on a straight-line basis over their useful eco-
nomic life and tested for impairment if there is an indication that the intangible asset may be impaired.
The estimated useful life and the amortization method are reviewed at the end of each reporting
period. The effect of changes in the estimate is being accounted for on a prospective basis. Intangible
assets with indefinite useful lives are not amortized and are tested for impairment at least annually
and if an indication for impairment exists.
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
Research cost are expensed as incurred.
Development costs are capitalized when the criteria in accordance with IAS 38 are met, otherwise
expensed as incurred.
To meet the recognition criteria of IAS 38, Stabilus has to demonstrate the following: (1) the technical
feasibility of completing the intangible asset so that it will be available for use or sale; (2) the inten-
tion 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.
Capitalized development costs comprise all costs directly attributable to the development process and
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.
1
8
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 8
2
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 measured at cost less accumulated depreciation and impairment
losses.
Cost for property, plant and equipment include the purchase price, costs directly attributable to bring-
ing the asset to the location and condition necessary to be capable of operating in the manner
intended. This also applies for self-constructed plant and equipment taking into account the cost of
production.
Subsequent costs are capitalized only if they increase the future economic benefits embodied in the
specific asset to which they relate.
Depreciation on property, plant and equipment is recognized on a straight-line basis over the esti-
mated useful lives of the assets. The residual values, depreciation methods and useful lives are
reviewed annually and adjusted, if necessary.
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).
Stabilus recognizes government grants when there is reasonable assurance that the conditions attached
to the grants are complied with and the grants will be received. Government grants related to the pur-
chase or the production of fixed assets are generally offset against the acquisition or production costs
of the respective assets so that the grant is recognized in profit or loss over the life of the asset
through reduced depreciation expense.
L E A S I N G
Leases are all arrangements that transfer the right to use a specified asset for a stated period of time
in return for a payment.
Leases that transfer substantially all risks and rewards associated with the ownership to Stabilus are
classified as finance leases. The leased asset and a corresponding liability is initially measured 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 the shorter term of the lease. Lease payments
resulting from finance leases are divided into repayments of the principal and interest payments.
Other leases are classified as operating leases. The corresponding lease payments are recognized as
an expense in profit or loss on a straight-line basis over the lease term.
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 is an indication that an asset may be impaired.
If such indication exists Stabilus estimates the recoverable amount of the asset. Goodwill and intangi-
ble assets under construction are tested annually for impairment.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The recoverable amount is determined for individual assets, unless an asset does not generate cash inflows
that are 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 to sell and its value in use. Stabilus deter-
mines the recoverable amount as value in use and compares this with the carrying amounts (including
goodwill). The value in use 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). Peri-
ods not included in the business plans are taken into account by applying a residual value which consid-
ers a growth rate of 1.0%. If the value in use cannot be determined or is lower than the carrying amount,
the fair value less cost to sell is calculated. If the carrying amount exceeds the recoverable amount an
impairment loss has to be recognized.
The calculation of the value in use and the fair value less cost to sell is most sensitive to the following
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 per-
centage 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 developments 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 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.
At each reporting date an assessment is made to determine whether there is any indication that
impairment losses recognized in earlier periods no longer exist. In this case, Stabilus recognizes a
reversal of the impairment loss. Impairment losses on goodwill are not reversed.
I N V E N TO R I E S
Inventories are measured at the lower of cost and net realizable value using the average cost method.
Production costs include all direct costs of material and labor and an appropriate portion of fixed and
variable overhead expenses. Net realizable value is the estimated selling price less all estimated costs
of completion and costs necessary to make the sale. Borrowing costs for the production 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 payable, cash and
cash equivalents and other financial assets or liabilities.
3
8
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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 relevant for Stabilus 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 profit or
loss when the loans and receivables are derecognized or impaired. Interest from using the effective
interest method are similarly recognized in profit or loss. 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
8
4
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, checks and
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.
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
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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
On June 21, 2016, Stabilus entered into four forward exchange transactions to hedge the foreign
exchange risk related to the US dollar payment of the purchase price for the acquired SKF Group
entities that had to be paid on June 30, 2016. Such derivative financial instruments were settled on
June 30, 2016. The effective portion of changes in fair value of cash flow hedges in the year ended
June 30, 2016 amounted to €6,798 thousand and the amount reclassified as basis adjustment amounted
to €(6,798) thousand. As of September 30, 2016 the Group does not have derivative financial instru-
ments. Stabilus designated the forward exchange transactions as a hedging instrument to the US dollar
purchase price, i.e. as cash flow hedge.
When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in
the fair value is recognized in other comprehensive income and the ineffective portion is recognized in
profit and loss. The amount recognized in other comprehensive income is reclassified when the hedged
transaction occurs. Stabilus considers the hedge related to a business combination as a hedge of a
non-financial item and recognizes the gain or loss from the hedging instrument recognized in other
comprehensive income as an adjustment to goodwill.
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 transac-
tion 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 a term loan, trade accounts payable and other financial liabilities.
Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include a term loan.
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 through the amortiza-
tion process or when the liabilities are derecognized.
5
8
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 8
6
Financial liabilities at fair value through profit or loss
As of September 30, 2016 and 2015 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 eco-
nomic benefits arising from the services provided by the employees in exchange for employee benefits.
For defined benefit pension plans the projected unit credit method is used to determine the present value
of a defined benefit obligation.
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.
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 estimate
can be made of the amount of the obligation. All cost elements that are relevant flow into the measure-
ment 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 balance 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.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 4 Business combination
On June 30, 2016, Stabilus acquired 100% of voting shares of ACE, Hahn Gasfedern and Fabreeka / Tech
Products from the SKF Group in an all-cash transaction. With the acquisition, Stabilus expands both its
product portfolio in the industrial sector and its customer base. The acquisition has been accounted for
using the acquisition method.
The fair values of the identifiable assets and liabilities of acquired entities at the date of acquisition
according to IFRS 3.16 amounted to:
Business combination
I N € T H O U S A N D S
Assets
Property, plant and equipment
Other intangible assets
Other assets
Deferred tax assets
Total non-current assets
Inventories
Trade accounts receivable
Other assets
Cash and cash equivalents
Total current assets
Total assets
Liabilities
Financial liabilities
Provisions
Pension plans and similar obligations
Deferred tax liabilities
Total non-current liabilities
Trade accounts payable
Current tax liabilities
Provisions
Other liabilities
Total current liabilities
Total liabilities
Total identifiable net assets at fair value
Goodwill arising on the acquisition
Goodwill adjustment from cash flow hedge of the purchase price
Purchase consideration transferred
7
8
T_022
June 30, 2016
23,117
139,908
1,843
1,229
166,098
15,175
11,156
1,422
7,872
35,625
201,723
30
61
2,877
33,698
36,666
3,845
398
2,650
1,669
8,562
45,228
156,495
146,899
6,798
310,192
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The fair value of other intangible assets as of June 30, 2016 amounting to €139.9 million essentially
comprised €123.6 million for customer relationships, €11.6 million for technology, €3.6 million for trade
names and €1.1 million for software. At the date of the acquisition, the fair value of the trade receivables
amounted to €11.2 million. The gross amount of trade receivables was €11.4 million. The difference
between the fair value and the gross amount is the result of an adjustment for counterparty risk (allow-
ance for doubtful accounts).
The goodwill is attributable mainly to the expected sales synergies arising from the acquisition as well as
to the skills and technical talent of acquired entities’ workforce. A total of €40.0 million of goodwill
amortization is expected to be deductible for U.S. tax purposes (U.S. Code Section 338 election) over the
next 15 years.
Transaction costs of €3.9 million have been expensed and are included in administrative expenses in
the Consolidated Statement of Comprehensive Income and are part of operating cash flow in the
Consolidated Statement of Cash Flows.
8
8
The results of the acquired entities are recognized starting from the date of acquisition. From that date
on revenue of €27.3 million has been recognized. If the acquisition had occurred on October 1, 2015,
estimated consolidated revenue would have been €816.9 million, and consolidated profit for the year
ended September 30, 2016, would have been €51.0 million. In determining these amounts, an
assumption was made that the fair value adjustments, determined provisionally, that arose on the date
of acquisition would have been the same if the acquisition had occurred on October 1, 2015.
Furthermore the acquisition of a small niche business in New Zealand in July 2016 led to goodwill of
€0.2 million. No material assets or liabilities have been acquired or assumed respectively.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 5 Revenue
The Group’s revenue developed as follows:
Revenue by region
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
Automotive Powerise
Automotive business
Industrial / Capital Goods
Vibration & Velocity Control
Swivel Chair
Industrial business
Revenue
Group revenue results from sales of goods. Stabilus operates in automotive and industrial markets. The
Automotive Gas Spring and Automotive Powerise units service our automotive customers, whereas
Industrial / Capital Goods, Vibration & Velocity Control as well as Swivel Chair units supply our indus-
trial customers. The newly acquired entity Hahn Gasfedern is part of Industrial / Capital Goods unit,
while ACE and Fabreeka / Tech Products form a new business unit Vibration & Velocity Control.
T _ 023
Year ended Sept 30,
2016
364,195
288,988
84,318
737,501
2015
308,474
229,285
73,512
611,271
T _ 024
Year ended Sept 30,
2016
320,030
195,314
515,344
171,015
22,540
28,602
222,157
737,501
2015
294,400
139,812
434,212
149,321
–
27,738
177,059
611,271
9
8
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 6 Cost of sales, research and development,
selling and administrative expenses
Expenses by function
I N € T H O U S A N D S
Capitalized development cost
Personnel expenses
Material expenses
Depreciation and amortization
(incl. impairment losses)
Other
Total
I N € T H O U S A N D S
Capitalized development cost
Personnel expenses
Material expenses
Depreciation and amortization
(incl. impairment losses)
Other
Total
9
0
Year ended Sept 30, 2016
Selling
expenses
Administrative
expenses
–
T _ 025
Total
12,592
Cost of sales
–
(132,752)
(358,128)
(30,351)
(26,469)
Research &
development
expenses
12,592
(16,313)
(5,000)
(11,120)
(6,749)
(547,700)
(26,590)
Cost of sales
–
(119,966)
(299,844)
(27,084)
(16,700)
Research &
development
expenses
13,475
(14,278)
(4,384)
(11,280)
(7,751)
(463,594)
(24,218)
–
(19,575)
(10,383)
(5,874)
(19,630)
(55,462)
–
(14,869)
(9,199)
(3,820)
(16,207)
(44,095)
Year ended Sept 30, 2015
Selling
expenses
Administrative
expenses
(30,777)
(199,417)
(3,106)
(376,617)
(1,940)
1,942
(49,285)
(50,906)
(33,881)
(663,633)
Total
13,475
–
(29,288)
(178,401)
(2,479)
(315,906)
(1,629)
6,067
(43,813)
(34,591)
(27,329)
(559,236)
T _ 026
Year ended Sept 30,
2016
2015
(139,127)
(123,993)
(34,566)
(14,931)
(10,793)
(32,637)
(15,183)
(6,588)
(199,417)
(178,401)
Selling expenses include shipping and handling cost amounting to €24,403 thousand (PY: €20,991
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
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The following table shows the Group’s average number of employees.
Number of employees
Wage earners
Salary earners
Trainees and apprentices
Average number of employees
7 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
8 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
Miscellaneous other expenses
Other expenses
Year ended Sept 30,
2016
3,925
1,042
95
5,062
T _ 027
2015
3,399
898
86
4,383
T _ 028
Year ended Sept 30,
2016
9,795
–
42
2,237
12,074
2015
9,261
102
43
1,832
11,238
1
9
T _ 029
Year ended Sept 30,
2016
(8,422)
(162)
–
(716)
2015
(6,631)
(307)
(139)
(525)
(9,300)
(7,602)
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 9
2
T _ 030
Year ended Sept 30,
2016
47
2,169
340
2,556
2015
90
16,936
825
17,851
T _ 031
Year ended Sept 30,
2016
(12,756)
–
(105)
(400)
2015
(26,450)
(15,422)
(169)
(364)
(13,261)
(42,405)
9 Finance income
Finance income
I N € T H O U S A N D S
Interest income on loans and financial receivables not measured at fair value through profit and loss
Net foreign exchange gain
Other interest income
Finance income
10 Finance costs
Finance costs
I N € T H O U S A N D S
Interest expense on financial liabilities not measured at fair value through profit and loss
Loss from changes in fair value of derivative instruments
Interest expenses finance lease
Other interest expenses
Finance costs
The interest expense on finance liabilities not measured at fair value through profit and loss include,
next to interest paid, the amortization of debt issue cost amounting to €2,576 thousand using the
effective interest method. Furthermore unamortized debt issue cost of €3,848 thousand relating to the
repaid SFA were expensed in June 2016.
11
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 calculation of deferred taxes. Deferred taxes are recognized as deferred
tax expenses or income in the statement of comprehensive income, either through profit or loss or
other comprehensive income, depending on the underlying transaction.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS Income tax expense
I N € T H O U S A N D S
Current income taxes
Deferred taxes
Income tax expense
T _ 032
Year ended Sept 30,
2016
(29,961)
12,010
(17,951)
2015
(16,920)
2,800
(14,120)
The respective local rates have been used to calculate the deferred taxes. The current income taxes
comprise prior year taxes amounting to €(16) thousand (PY: €1,589 thousand).
The actual income tax expense of €(17,951) thousand deviates in the amount of €1,830 thousand
from the expected tax expense of €(19,781) thousand that results from applying the expected income
tax rate of 30% to the Group’s profit or loss before income taxes. The individual items that reconcile
the expected income tax expense to the actual income tax expense are disclosed in the table below.
Tax expense reconciliation (expected to actual)
I N € T H O U S A N D S
Profit / (loss) before income tax
Expected income tax expense
Foreign tax rate differential (+/–)
Tax-free income (+)
Non-deductible expenses (–)
Prior year taxes (+/–)
Change of the valuation allowance on deferred tax assets (+/–)
Tax rate changes (+/–)
Other (+/–)
Actual income tax expense
Effective tax rate
T _ 033
Year ended Sept 30,
3
9
2016
65,938
(19,781)
2,767
50
(2,251)
(16)
564
65
652
(17,951)
27.2%
2015
31,117
(9,335)
1,919
(489)
(12,522)
1,589
6,447
(58)
(1,670)
(14,120)
45.4%
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The tax effect reported as a foreign tax rate differential reflects the difference between the expected
tax rate of 30% and the actual tax rates that are applicable to the individual subsidiaries. The tax
effect of non-deductible expenses consist primarily of expenses that are non-deductible in the determi-
nation of the taxable profits in Germany. 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, 2016
Sept 30, 2015
9
4
I N € T H O U S A N D S
Intangible assets
Property, plant & equipment
Inventories
Receivables
Other assets
Provisions and liabilities
Tax and interest losses
Subtotal
Netting
Total
DTA
224
2,766
2,515
1,476
838
15,470
17,502
40,791
DTL
Total
(78,492)
(8,136)
(101)
(1,868)
(4,701)
(384)
–
(78,268)
(5,370)
2,414
(392)
(3,863)
15,086
17,502
(93,682)
(52,891)
DTA
111
2,625
1,109
471
31
11,010
17,150
32,507
DTL
(49,874)
(7,257)
(45)
(3,197)
(300)
(5,881)
–
(33,048)
33,048
–
(27,578)
27,578
–
7,743
(60,634)
(52,891)
4,929
(38,976)
(34,047)
(66,554)
(34,047)
T _ 034
Total
(49,763)
(4,632)
1,064
(2,726)
(269)
5,129
17,150
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, 2016, the Group has unused tax loss carry-forwards (including German interest
loss carry-fowards) of €74,144 thousand (PY: €96,045).
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The following table provides a detailed overview of the tax loss and interest carry-forwards and the
expiration dates.
Tax loss and interest carry-forwards
T _ 035
I N € T H O U S A N D S
Germany
Spain
USA
Great Britain
Brazil
Total
I N € T H O U S A N D S
Germany
Spain
Romania
Total
Year ended Sept 30, 2016
Tax loss and
interest
carry-forward
Tax rate
Deferred tax
asset (gross)
Valuation
allowance
Deferred tax
asset (net)
65,756
27.0 – 30.0%
5,671
1,143
321
1,253
74,144
28.0%
37.0%
22.0%
34.0%
17,724
1,588
423
71
426
(647)
(1,588)
(423)
(71)
–
17,076
–
Expiration date
Indefinite
Indefinite
– Within 20 years
–
426
Indefinite
Indefinite
20,231
(2,729)
17,502
Year ended Sept 30, 2015
Tax loss and
interest
carry-forward
Tax rate
Deferred tax
asset (gross)
Valuation
allowance
Deferred tax
asset (net)
74,393
27.0 – 30.0%
20,149
28.0%
16.0%
1,571
2,567
5,611
16,041
96,045
–
2,567
Within 5 years
24,287
(7,137)
17,150
(5,566)
(1,571)
14,583
–
Expiration date
Indefinite
Indefinite
5
9
The interest carry-forward comes from our German entities and amounts to €63,598 thousand with a
gross deferred tax asset of €17,076 thousand of which a deferred tax assets of €17,076 thousand was
shown in the balance sheet. The unused tax loss carry-forward comprises €10,546 thousand relating to
corporate tax and trade tax. The amount recognized as a deferred tax asset is calculated under consider ation
of the actual corporate planning and its utilization within the planning period.
Tax loss carry-forwards in Luxembourg are not considered, as it is not likely that these carry-forwards
will be utilized.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 12 Earnings per share
On July 6, 2016, Stabilus issued 3,976,744 new bearer shares. The weighted average number of shares
used for the calculation of earnings per share in the fiscal years ended September 30, 2016 and 2015
is set out in the following table.
Weighted average number of shares
D AT E
September 30, 2014
October 1, 2014
September 30, 2015
October 1, 2015
July 6, 2016
September 30, 2016
Number of days
Transaction
Change
Total shares
T _ 036
Total shares
(time-weighted)
365
279
20,723,256
18,751,927
20,723,256
20,723,256
20,723,256
20,723,256
20,723,256
15,797,236
87 Capital increase
3,976,744
24,700,000
5,871,311
24,700,000
21,668,547
9
6
The earnings per share for the fiscal years ended September 30, 2016 and 2015 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 shareholders
of the Company by the weighted average number of shares outstanding.
T _ 037
Year ended Sept 30,
2016
47,971
2015
16,950
21,668,547
20,723,256
2.21
0.82
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 13 Property, plant and equipment
Property, plant and equipment are presented in the following table.
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, 2014
10,987
32,471
119,540
30,583
Foreign currency difference
Additions
Disposals
Reclassifications
Balance as of Sept 30, 2015
Additions from business combination
Foreign currency difference
Additions
Disposals
Reclassifications
(61)
–
–
–
10,926
2,662
(2)
–
–
–
698
3,928
(2)
871
376
8,760
(1,406)
5,736
37,966
133,006
9,887
(242)
2,016
(71)
1,516
7,726
(4,364)
27,495
(957)
7,656
1,751
4,114
(1,095)
1,565
36,918
1,872
(295)
4,358
(634)
1,892
Balance as of Sept 30, 2016
13,586
51,072
170,562
44,111
13,722
(152)
20,800
–
(8,036)
26,334
970
(353)
6,360
(335)
(11,064)
21,912
T _ 038
Total
207,303
2,612
37,602
(2,503)
136
245,150
23,117
(5,256)
40,229
(1,997)
–
301,243
7
9
Accumulated depreciation
Balance as of Sept 30, 2014
Foreign currency difference
Depreciation expense
Disposal
Reclassifications
Balance as of Sept 30, 2015
Foreign currency difference
Depreciation expense
Disposal
Reclassifications
Balance as of Sept 30, 2016
Carrying amount
Balance as of Sept 30, 2015
Balance as of Sept 30, 2016
–
–
–
–
–
–
–
–
–
–
–
(7,336)
(61,881)
(17,626)
(819)
(87,662)
(442)
(1,045)
(1,908)
(14,991)
2
–
1,089
(23)
(1,379)
(5,724)
998
(113)
–
–
–
–
(2,866)
(22,623)
2,089
(136)
(9,684)
(76,851)
(23,844)
(819)
(111,198)
(30)
1,874
222
(3,064)
(16,284)
(6,540)
53
(3)
760
1
533
2
–
–
–
–
2,066
(25,888)
1,346
–
(12,728)
(90,500)
(29,627)
(819)
(133,674)
10,926
13,586
28,282
38,344
56,155
80,062
13,074
14,484
25,515
21,093
133,952
167,569
STABILUSCONSOLIDATED FINANCIAL STATEMENTS Property, plant and equipment includes assets resulting from two finance lease contracts with a carry-
ing amount of €4,133 thousand (PY: €3,312 thousand). One finance lease agreement was signed in
December 2010 by Orion Rent Imobiliare S.R.L., Bucharest, prior to the Stabilus Group taking the majority
of the company and relates to a real estate lease agreement for a building of our Powerise location in
Romania (Brasov). The second finance lease agreement was renewed in July 2016 by Stabilus Romania
S.R.L. for the extension of the gas spring plant.
The property, plant and equipment include the land and building of Stabilus in Spain, where the activ-
ity was shut down in 2011. The Company is preparing the sale of the land and building. We are cur-
rently in the process of clarifying the local administrative requirements for the sale of the land and
building, e.g. necessary payment confirmations regarding local dues and environmental clearance. For
this reason we do not yet consider the sale as highly probable in this phase of the process. Therefore
the assets are not yet classified as assets held for sale according to IFRS 5. In fiscal year 2016, Stabilus
Group has received government grants amounting to €201 thousand (PY: €805) which are linked to
the installation of our third Powerise production line in Romania. For the entitlement to this grant
Stabilus Romania S.R.L. has to meet certain thresholds (headcount and quantity of products) over a
five year period. If such thresholds were not met, the grant would have to be paid back.
9
8
Contractual commitments for the acquisition of property, plant and equipment amount to €5,397 thou-
sand (PY: €10,576 thousand).
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 _ 039
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,
2016
(23,485)
(741)
(374)
(1,288)
(25,888)
2015
(20,568)
(775)
(311)
(969)
(22,623)
Prepayments by the Stabilus Group for property, plant and equipment and intangible assets of €746
thousand (PY: €1,080 thousand) are included in other non-current assets. Larger prepayments are typi-
cally secured by a bank guarantee or an in-depth check of the relevant supplier.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 14 Goodwill
The first-time consolidation of Stable II S.à r. l., Luxembourg as of April 8, 2010, resulted in goodwill of
€51.1 million and the first-time consolidation of Orion Rent Imobiliare S.R.L, Bucharest, Romania
resulted in goodwill of €0.4 million. These acquisitions resulted in total goodwill of €51.5 million (PY:
€51.5 million). This goodwill is allocated to the operating segments (CGUs) based on their relative fair
values. As such €27.8 million have been allocated to Europe, €13.4 million to NAFTA and €10.3 million
to Asia / Pacific and Rest of World (RoW).
The first-time consolidation of ACE, Hahn Gasfedern and Fabreeka / Tech Products as of June 30, 2016,
resulted in goodwill of €146.9 million. This goodwill is allocated to the operating segments based on
EBIT and location of the acquired entities. As such €84.6 million have been allocated to Europe, €59.9
million to NAFTA and €2.4 million to Asia / Pacific and Rest of World (RoW).
The acquisition of a small niche business in New Zealand with €0.2 million annual sales, led to a good-
will of €0.2 million. This goodwill is allocated to Asia / Pacific and Rest of World (RoW).
The foreign currency difference on goodwill is €(1.1) million.
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 and Supervisory Board. The
cash flow planning takes into account price agreements based on experience and anticipated efficiency
enhancements (e.g. relocation from high cost to low cost countries, higher automation, etc.) as well as
average sales growth of approximately 5.0% (PY: 2.8%) for Europe, 5.2% (PY: 5.3%) for NAFTA and
18.2% (PY: 20.0%) for Asia / Pacific and RoW on compound average based on the strategic outlook
leading to an average higher growth rate for the free cash flow. The higher free cash flow growth rate
is also impacted by the product mix effects and the assumed stable gross margins and improved fixed
costs absorption. While the overall economic outlook is very volatile, the Group believes that its
market- orientated approach 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 expected consumer price inflation for the countries included in the
respective cash generating units, adjusted for expected technological progress and efficiency gains in
the overall economy. The discount rate applied to cash flow projections is 8.8% (PY: 9.1%) for Europe,
8.5% (PY: 9.1%) for NAFTA and 8.4% (PY: 8.9%) for Asia / Pacific and RoW. The pre-tax discount rates
are 11.5% (PY: 12.0%) for Europe, 12.5% (PY: 13.3%) for NAFTA and 11.0% (PY: 11.7%) for
Asia / Pacific and RoW.
9
9
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The following table shows the input data to selected key figures required for the respective recoverable
amounts to equal the carrying amount. In management’s view this change is not reasonably possible.
Goodwill sensitivity analysis
T _ 040
I N P E R C E N T
Base interest rate
Budgeted gross margin reduction to plan
Sustainable growth rate after 5-year period
Sept 30, 2016
Input data required for carrying amount to
equal recoverable amount
Europe
15.0
10.0
(36.1)
NAFTA
18.7
11.0
(72.7)
Asia / Pacific and
RoW
15.3
11.1
(58.7)
1
0
0
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 15 Other intangible assets
Other intangible assets are presented in the following table.
Intangible assets
T _ 041
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, 2014
68,897
21,229
Foreign currency difference
937
874
Additions
Disposals
3,675
10,582
(11,134)
–
Reclassifications
5,453
(6,745)
Balance as of Sept 30, 2015
67,828
25,940
Additions from business
combination
Foreign currency difference
Additions
Disposals
–
(62)
3,463
(57)
–
35
9,428
–
Reclassifications
12,727
(12,911)
4,902
(197)
1,105
(132)
1,372
7,050
1,099
2
865
(236)
105
1,315
83,683
58,132
13,246
251,404
8
3
(8)
(80)
–
–
–
–
–
–
–
–
–
–
–
–
1,622
15,365
(11,274)
–
1,238
83,683
58,132
13,246
257,117
–
123,568
11,625
3,616
139,908
(24)
(802)
(103)
(23)
27
–
79
–
–
–
–
–
–
–
–
–
(977)
13,783
(293)
–
Balance as of Sept 30, 2016
83,899
22,492
8,885
1,320
206,449
69,654
16,839
409,538
1
0
1
Accumulated amortization
Balance as of Sept 30, 2014
(31,894)
Foreign currency difference
Amortization expense
Impairment loss
Disposals
(437)
(9,648)
(794)
11,080
Balance as of Sept 30, 2015
(31,693)
Foreign currency difference
Amortization expense
Impairment loss
Disposals
Reclassifications
43
(9,472)
(741)
5
–
Balance as of Sept 30, 2016
(41,858)
Carrying amount
–
–
–
–
–
–
–
–
–
–
–
–
(3,815)
(1,070)
(15,691)
(24,652)
(3,311)
(80,433)
130
(964)
–
132
71
(83)
–
4
1
–
–
(235)
(3,487)
(5,478)
(736)
(20,396)
–
–
–
–
–
–
(794)
11,216
(4,517)
(1,078)
(19,177)
(30,130)
(4,047)
(90,642)
(4)
(1,321)
–
234
(23)
24
(48)
–
–
23
14
1
–
78
(5,335)
(5,616)
(865)
(22,657)
–
–
–
–
–
–
–
–
–
(741)
239
–
(5,631)
(1,079)
(24,498)
(35,745)
(4,912)
(113,723)
Balance as of Sept 30, 2015
36,135
25,940
2,533
160
64,506
28,002
9,199
166,475
Balance as of Sept 30, 2016
42,041
22,492
3,254
241
181,951
33,909
11,927
295,815
STABILUSCONSOLIDATED FINANCIAL STATEMENTS During the fiscal year, costs of €12,891 thousand (PY: €14,257 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 €9,472 thousand (PY: €9,648 thousand). The
borrowing costs capitalized during the period amounted to €299 thousand (PY: €782 thousand). A capi-
talization rate of 2% (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:
1
0
2
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 (incl. impairment loss)
T _ 042
Year ended Sept 30,
2016
(6,867)
2015
(6,515)
(10,379)
(10,506)
(5,500)
(652)
(3,509)
(660)
(23,398)
(21,190)
Amortization expenses on development costs include impairment losses of €741 thousand
(PY: €794 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 €3,214 thousand
(PY: €873 thousand).
16 Other financial assets
Other financial assets
Sept 30, 2016
Sept 30, 2015
I N € T H O U S A N D S
Other miscellaneous
Other financial assets
Current
Non-current
3,160
3,160
–
–
Total
3,160
3,160
Current
Non-current
7,899
7,899
–
–
T _ 043
Total
7,899
7,899
OT H E R M I S C E L L A N E O U S
Other miscellaneous financial assets as of September 30, 2016 mainly comprise assets related to the
sale of trade accounts receivable (€23.3 million (PY: €25.6 million)) amounting to €3,160 thousand
(Sept 30, 2015: €3,404 thousand) and receivables from a warranty insurance company amounting to
€0 thousand (Sept 30, 2015: €3,766 thousand).
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 17 Other assets
Other assets
I N € T H O U S A N D S
VAT
Prepayments
Deferred charges
Other miscellaneous
Other assets
Sept 30, 2016
Sept 30, 2015
Current
Non-current
Total
Current
Non-current
5,698
2,925
3,178
2,122
13,923
–
746
–
2,521
3,267
5,698
3,671
3,178
4,643
4,239
1,005
2,881
1,968
17,190
10,093
–
1,080
–
784
1,864
T _ 044
Total
4,239
2,085
2,881
2,752
11,957
Non-current prepayments comprise prepayments on property, plant and equipment.
18
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 _ 045
3
0
1
Sept 30, 2016
Sept 30, 2015
38,076
17,103
12,616
6,886
74,681
30,969
12,151
10,121
6,542
59,783
Inventories that are expected to be turned over within twelve months amounted to €74,681 thousand
(PY: €59,783 thousand). Write-downs on inventories to net realizable value amounted to €6,545 thou-
sand (PY: €5,376 thousand). In the reporting period raw materials, consumables and changes in fin-
ished goods and work in progress recognized as cost of sales amounted to €358,128 thousand
(PY: €299,844 thousand).
The Stabilus Group’s prepayments for inventories amounting to €1,457 thousand (PY: €873 thousand)
are included in prepayments in other current assets.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 19 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 _ 046
Sept 30, 2016
Sept 30, 2015
99,827
(2,227)
97,600
65,044
(2,196)
62,848
Trade accounts receivable increased in the fiscal year ended September 30, 2016 mainly due to the
higher sales partly compensated by the additional sale of receivables to factors.
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 receiv-
ables. The Group established 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:
1
0
4
Allowance for doubtful accounts
T _ 047
I N € T H O U S A N D S
Allowance for doubtful accounts as of beginning of fiscal year
Additions from business combination
Foreign currency differences
Increase in the allowance
Decrease in the allowance
Sept 30, 2016
Sept 30, 2015
(2,196)
(1,571)
(170)
(35)
(211)
385
-
(24)
(606)
5
Allowance for doubtful accounts as of fiscal year-end
(2,227)
(2,196)
20 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.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 21 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, 2016, it amounted to €75,037 thousand (PY: €39,473 thousand). Cash in banks
earned marginal interest at floating rates based on daily bank deposit rates.
22 Equity
The development of the equity is presented in the statement of changes in equity.
On July 5, 2016, the Management Board of Stabilus S.A., with the approval of the Supervisory Board,
resolved to utilize some of its existing authorized capital and to increase the share capital from
€207,232.56 by €39,767.44 to €247,000.00 via issuance of 3,976,744 new bearer shares which will
bear full dividend rights for the fiscal year 2016. Following the issuance of new shares, the total num-
ber of shares amounts to 24.7 million and the number of authorized shares amounts 31.5 million.
On July 6, 2016, the capital increase was successfully completed: Stabilus issued 3,976,744 new
bearer shares and placed these shares with institutional investors. On July 7, 2016, the new shares
were admitted for trading and included in the current listing in the Prime Standard segment of the
Frankfurt Stock Exchange.
Issued capital
Issued capital as of September 30, 2016 amounted to €247 thousand (September 30, 2015 €207
thousand) and was fully paid in. It is divided into 24,700,000 shares each with a nominal value of
€0.01 each. The authorized capital of the Company is set at €315 thousand represented by a maximum
of 31.5 million shares, each with nominal value of €0.01 each.
Capital reserves
Capital reserves as of September 30, 2016 amounted to €225,848 thousand (September 30, 2015:
€73,091 thousand). The increase is due to the premiums received for the issuance of shares in July
2016 amounting to €159,030 thousand less transaction costs of €6,273 thousand.
Retained earnings
Retained earnings as of September 30, 2016 amounted to €72,535 thousand (September 30, 2015:
€24,871 thousand) and included the Group’s net result in the fiscal year 2016 amounting to €47,971
thousand.
Dividends
In the second quarter of fiscal 2016, a dividend amounting to €78 thousand (September 30, 2015: €56
thousand) was paid to a non-controlling shareholder of a Stabilus subsidiary.
The Management Board and the Supervisory Board have resolved to propose a dividend distribution
of €0.50 per share to the Annual General Meeting to be held in Luxembourg on February 15, 2017.
The total dividend will thus amount to €12.35 million (PY: – ) and the distribution ratio will be 25.7% of
the consolidated profit attributable to the Stabilus shareholders. As this dividend is subject to shareholder
5
0
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS approval at the Annual General Meeting, no liability has been recognized in the consolidated financial
statements as of September 30, 2016.
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. 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)
T_048
I N € T H O U S A N D S
Balance as of Sept 30, 2014
Before tax
Tax (expense) benefit
Net of tax
Non-controlling interest
Balance as of Sept 30, 2015
Before tax
Tax (expense) benefit
Net of tax
Non-controlling interest
1
0
6
Unrealized gains /
(losses)
from foreign
currency translation
3,623
(16,390)
–
(16,390)
–
(12,767)
(8,858)
–
(8,858)
–
Unrealised actuarial
gains and losses
(8,751)
50
(16)
34
–
(8,717)
(7,841)
2,351
(5,490)
–
Balance as of Sept 30, 2016
(21,625)
(14,207)
1) See also consolidated statement of comprehensive income above
Cash flow hedges 1)
Total
–
–
–
–
–
–
–
–
–
–
–
(5,129)
(16,340)
(16)
(16,356)
–
(21,484)
(16,699)
2,351
(14,348)
–
(35,832)
Cash flow hedges in the table above, with a net amount of zero, relate to four forward exchange trans-
actions the Company entered into on June 21, 2016 to hedge the foreign exchange risk related to the
US dollar purchase price for the acquired SKF Group entities that had to be paid on June 30, 2016.
Stabilus designated the forward exchange transactions as a hedging instrument to the US dollar purchase
price, i.e. as a cash flow hedge. The effective portion of changes in fair value of cash flow hedges in the
year ended September 30, 2016 amounted to €6,798 thousand and the amount reclassified as basis
adjustment amounted to €(6,798) thousand. See also Consolidated Statement of Comprehensive Income
and further details regarding accounting treatment of cash flow hedges in Note 2 above.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 23 Financial liabilities
The financial liabilities comprise following items:
Financial liabilities
I N € T H O U S A N D S
Senior facility
Financial liabilities
Sept 30, 2016
Sept 30, 2015
Current
Non-current
Total
Current
Non-current
5,000
5,000
396,095
396,095
401,095
401,095
5,000
5,000
258,644
258,644
T _ 049
Total
263,644
263,644
On June 7, 2016, Stabilus entered into a new €640 million senior facilities agreement with, among others,
Commerzbank Aktiengesellschaft, Crédit Agricole Corporate and Investment Bank, Landesbank Hessen-
Thüringen Girozentrale and UniCredit Bank AG as mandated lead arrangers and UniCredit Luxembourg S.A.
as facility and security agent. The agreement comprises a term loan facility of €455 million, an equity bridge
facility of €115 million and a revolving credit facility of €70 million. The term loan facility and the revolv-
ing credit facility mature on June 30, 2021. The duration of the senior facilities (other than the equity
bridge facility) can be extended by an additional year, at the Company’s request until June 30, 2017, and
by a second year, at the Company’s request until June 30, 2018.
The term loan facility is to be repaid in semi-annual installments (payable on March 31 and September
30) equal to €2.5 million for each repayment date falling on or after the date which is six months after
the closing date but before the date which is 18 months after the closing date and €5.0 million there-
after until termination date on June 30, 2021 on which the remaining facility has to be repaid in full.
The equity bridge facility of €115 million was drawn on June 29, 2016 and repaid on July 12, 2016 using
the proceeds of the equity issue.
On August 31, 2016 Stabilus repaid €50 million of the term loan facility and reduced the outstanding
nominal amount from €455 million to €405 million.
The Group’s liability under the senior facility agreement (the remaining €405 million term loan senior
facility) is measured at amortized cost under consideration of transaction costs.
As of September 30, 2016, the Group had no liability under the committed €70 million revolving credit
facility. The Group utilized €3.8 million out of the €70 million revolving credit facility to secure existing
guarantees.
7
0
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 24 Other financial liabilities
Other financial liabilities
Sept 30, 2016
Sept 30, 2015
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
Other financial liabilities
6,648
2,440
311
9,399
–
–
2,314
2,314
6,648
2,440
2,625
11,713
5,787
1,844
347
7,978
–
–
2,139
2,139
The finance lease obligation relates to leasing contracts for land and buildings for the production
facility in Romania.
25 Provisions
Provisions
Sept 30, 2016
Sept 30, 2015
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
–
36
11,050
415
1,521
115
12,227
5,534
30,898
61
2,599
–
990
–
–
–
131
3,781
Total
61
2,635
11,050
1,405
1,521
115
12,227
5,665
34,679
Current
Non-current
13
659
9,082
376
1,035
90
7,938
935
20,128
–
860
–
–
–
–
–
172
1,032
T _ 050
Total
5,787
1,844
2,486
10,117
T _ 051
Total
13
1,519
9,082
376
1,035
90
7,938
1,107
21,160
1
0
8
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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, 2014
Reclassifications
Foreign currency differences
Costs paid
Release to income
Additions
Balance as of Sept 30, 2015
Additions from business combination
Reclassifications
Foreign currency differences
Costs paid
Release to income
Additions
Balance as of Sept 30, 2016
Anniversary
benefits
Early
retirement
EPA
provision
Other
miscellaneous
295
(13)
–
(208)
(74)
–
–
61
–
–
–
–
–
61
3,372
(659)
–
(1,711)
(142)
–
860
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,739
2,599
990
990
393
(262)
18
–
–
23
172
–
–
–
(41)
–
–
131
T _ 052
Total
4,060
(934)
18
(1,919)
(216)
23
1,032
61
–
–
(41)
–
2,729
3,781
The discount rate used for the calculation of non-current provisions as of September 30, 2016 was
0.0% (PY: 0.9%).
9
0
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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, 2014
Foreign currency differences
Reclassifications
Costs paid
Release to income
Additions
Balance as of Sept 30, 2015
Additions from business
combination
Foreign currency differences
Reclassifications
Costs paid
Release to income
Additions
1
1
0
(128)
8,770
9,082
1,178
(808)
–
(9,038)
(133)
10,769
Balance as of Sept 30, 2016
11,050
Employee-
related
costs
Environ-
mental
protection
measures
3,575
(467)
–
730
308
–
(2,668)
(662)
–
–
Other
risks
578
–
–
(75)
(349)
881
Legal and
litigation
costs
Anniver-
sary
benefits
Early
retirement Warranties
Other
miscella-
neous
135
(45)
–
–
–
–
–
–
13
–
–
–
–
–
659
–
–
–
2,338
1,195
(311)
262
(1,395)
(99)
7,143
7,938
(551)
(1,066)
–
95
(98)
294
935
934
(4,705)
(674)
17,088
20,128
376
1,035
90
13
659
T _ 053
Total
8,551
–
–
–
–
–
39
415
176
(2)
–
(669)
(19)
1,000
1,521
–
25
–
–
–
–
115
–
–
–
–
–
–
86
(1,132)
–
1,210
(131)
–
2,650
(2,048)
–
(13)
(623)
(5,253)
(2,076)
(17,672)
–
–
–
–
–
–
10,588
36
12,227
(10)
6,106
5,534
(162)
28,502
30,898
The provision for employee-related expenses comprises employee bonuses and termination benefits.
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 iden-
tified by the United States Environmental Protection Agency (EPA) as an area requiring environ mental
remediation. In 2011 the EPA contacted seven companies in the North Penn Area 5 as potential responsi-
ble parties for cost sharing, Stabilus being one of them. The Group is currently unable to develop a rea-
sonable 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 an EPA
re imbursement has been reflected in the balance sheet as of September 30, 2016. For the correspond-
ing ongoing long-term bioremediation a current provision of €415 thousand (PY €376 thousand) and
a non-current provision of €990 thousand (PY € –) has been recorded as of September 30, 2016.
The provision for other risks from purchase and sales commitments represents expected sales dis-
counts, 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.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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. This also comprises accruals
that are calculated for individual cases. Insurance reimbursements related to individual cases are pre-
sented in other financial assets if the recognition criteria are met.
26 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 _ 054
Sept 30, 2016
Sept 30, 2015
57,422
1,316
58,738
47,505
484
47,989
1
1
1
I N € T H O U S A N D S
Principal pension plan
Deferred compensation
Pension plans and similar obligations
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 Stabilus Group granted post-employment pension benefits to employees in Germany who joined the
Group prior to January 1, 2006. The level of post-employment benefits is generally based on eligible com-
pensation levels and / or ranking within the Group hierarchy and years of service. As of December 21, 2010,
in order to free the Group of future liquidity risks, the Group’s pension policies in Germany were amended
and the title earned in the former defined benefit plan was frozen. Going forward no additional defined
benefit titles can be earned except for certain older employees. At the same time, the Group introduced a
defined contribution plan in which direct payments to an external insurer are made.
Furthermore post-employment pension benefits have been granted by a company acquired in the June 2016
business combination. This plan is generally based on eligible compensation levels and years of service.
Liabilities for principal pension plans amounting to €57,422 thousand (PY: €47,505 thousand) result
from unfunded accumulated benefit obligations. This includes additions from business combinations
(€2,165 thousand).
The weighted average duration of the defined benefit obligations in the fiscal year 2016 is 16.4 years
(PY: 16.4 years).
Deferred compensation
The 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.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The total deferred compensation as of September 30, 2016 amounts to €1,316 thousand (PY: €484 thou-
sand). The increase is mainly due to additions from business combinations amounting to € 812 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
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
Value of defined benefit obligations from business combinations
1
1
2
Service cost
Interest cost
Financial assumptions
Experience assumptions
Actuarial (gains) / losses
Pension benefits paid
Present value of defined benefit obligations as of fiscal year-end
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
T _ 055
Sept 30, 2016
Sept 30, 2015
58,738
(812)
57,926
47,989
–
47,989
T _ 056
Year ended Sept 30,
2016
47,989
2,877
68
1,133
8,932
(1,055)
7,877
(1,206)
58,738
2015
48,353
–
42
1,141
155
(205)
(50)
(1,497)
47,989
T _ 057
2015
42
1,141
1,183
Year ended Sept 30,
2016
68
1,133
1,201
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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
T _ 058
I N € T H O U S A N D S
Sept 30, 2012
Sept 30, 2013
Sept 30, 2014
Sept 30, 2015
Sept 30, 2016
Defined benefit
obligation
Experience
adjustments
38,066
39,123
48,353
47,989
58,738
(308)
(213)
914
(205)
(1,055)
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:
3
1
1
Significant factors for the calculation of pension obligations
T _ 059
I N % P. A .
Discount rate
Inflation
Salary increases
Pension increases
Turnover rate
Sept 30, 2016
Sept 30, 2015
1.35%
0.00%
0.00%
1.50%
4.00%
2.38%
1.50%
0.00%
1.50%
4.00%
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 €5,176 thousand
lower or €5,162 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 esti-
mated €1,180 thousand higher or €1,841 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
STABILUSCONSOLIDATED FINANCIAL STATEMENTS each beneficiary. The effects on the defined benefit obligation (the “DBO”) as of September 30, 2016
due to a 2 year reduction / increase of the life expectancy would result in a decrease of €2,778 thou-
sand or an increase of €2,029 thousand.
When calculating the sensitivity of the DBO to significant actuarial assumptions, the same method
(present value of the DBO calculated with the projected unit credit method) has been applied as when
calculating the post-employment benefit obligation recognized 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 com-
pound 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.
Expected pension benefit payments for the fiscal year 2017 will amount to €2,018 thousand
(PY: €1,858 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
The expenses incurred under defined contribution plans are primarily related to government-run
pension plans. Expenses for these plans in the reporting period amounted to €13,263 thousand
(PY: €12,504 thousand).
27 Trade accounts payable
Trade accounts payable amount to €80,389 thousand (PY: €68,929 thousand) as of the end of the
fiscal year. The full amount is due within one year. The liabilities are measured at amortized cost. For
information on liquidity and exchange rate risks for trade accounts payable, please see Note 33.
28 Current tax liabilities
The current tax liabilities relate to income and trade taxes.
1
1
4
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 29 Other liabilities
The following table sets out the breakdown of Group’s other current and non-current liabilities:
Other liabilities
Sept 30, 2016
Sept 30, 2015
I N € T H O U S A N D S
Current
Non-current
1,353
3,329
6,964
3,619
224
879
–
–
–
–
Total
2,232
3,329
6,964
3,619
224
Current
Non-current
1,267
2,269
5,515
1,891
157
576
–
–
–
–
T _ 060
Total
1,843
2,269
5,515
1,891
157
Advanced payments received
Vacation expenses
Other personnel-related
expenses
Outstanding costs
Miscellaneous
Other liabilities
30 Leasing
O P E R AT I N G L E A S E
15,489
879
16,368
11,099
576
11,675
5
1
1
The Group entered into non-cancellable operating leases for IT hardware, cars and other machinery
and equipment with lease terms of 2 to 6 years. The future minimum lease payments relating to leas-
ing agreements during the basic rental period when they cannot be terminated are as follows:
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 _ 061
Minimum lease payments in
year ended Sept 30,
2016
5,702
17,988
95
23,785
2015
5,050
16,782
814
22,646
The increase in total minimum lease payments in the next four years is primarily due to the expansion
of the rented production facilities in China. Current period expense for operating leases amounts to
€7,387 thousand (PY: €6,159 thousand).
STABILUSCONSOLIDATED FINANCIAL STATEMENTS F I N A N C E L E A S E
Finance lease
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
T _ 062
Sept 30, 2016
Sept 30, 2015
Minimum lease
payments (MLP)
Present value
of MLP
Minimum lease
payments (MLP)
Present value
of MLP
628
2,763
942
4,333
601
2,223
733
3,557
542
1,214
1,147
2,903
519
1,000
909
2,428
1
1
6
As of September 30, 2016, there are two real estate lease contracts regarding a production facility in
Romania recorded as finance lease.
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 Imobili-
are S.R.L. The agreement contains a purchase option starting at the end of the third year of the 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 €916 thousand (PY: €1,037 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 var-
iable component of the total funding cost with 3-month Euribor as the reference basis.
Stabilus Romania S.R.L. entered into a real estate lease agreement which was classified as finance
lease starting March 1, 2015. On July 1, 2016 Stabilus Romania S.R.L. renewed the real estate lease
agreement to extend the existing production facility for the production of gas springs and dampers.
The underlying interest rate amounts to 4.75% (PY: 2.0%). The net carrying amount at the balance
sheet date was €1,709 thousand (PY: €2,275 thousand). The contract has a duration of 75 months
and can be extended. The payments for finance leases in the fiscal year ended September 30, 2016
amounted to €471 thousand (PY: €1,841 thousand). No contingent rents have been recognized as an
expense during the period.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 31
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 25.
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 used for production facilities 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 to support production space, requirements for the transfer of certain produc-
tion steps to Romania. 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 thousand), 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.
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 28,951 square
meters of land and 5,881 square meters of construction buildings in Ramos Arizpe, State of Coahuila,
Mexico. The lease agreement has a contract period of ten years and will be extended. Stabilus GmbH,
Koblenz, issued a letter of support for the event that STMX will be unable to pay.
On June 7, 2016, the Group entered into a senior facilities agreement. Certain material subsidiaries of
the Group are guarantors, as defined in the senior facilities agreement, give a credit guarantee in favor
of the financing 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, 2016 amounted to €32,396
thousand (PY: €34,095 thousand).
7
1
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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 fixed 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 fixed and other intangible assets
Obligations under rental and leasing agreements
Total
1
1
8
32 Financial instruments
Sept 30, 2016
1 to 5 years
More than
5 years
–
17,988
17,988
–
95
95
Sept 30, 2015
1 to 5 years
More than
5 years
–
16,782
16,782
–
814
814
Less than
1 year
8,611
5,702
14,313
Less than
1 year
11,449
5,050
16,499
T _ 063
Total
8,611
23,785
32,396
Total
11,449
22,646
34,095
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
Other financial assets
Total financial assets
Financial liabilities
Trade accounts payable
Finance lease liabilities
Total financial liabilities
Sept 30, 2016
Sept 30, 2015
Measurement
category
acc. to IAS 39 Carrying amount
Fair value Carrying amount
Fair value
LaR
LaR
LaR
FLAC
FLAC
–
97,600
75,037
3,160
175,797
401,095
80,389
2,625
97,600
75,037
3,160
175,797
376,191
80,389
3,557
62,848
39,473
7,899
110,220
263,644
68,929
2,486
62,848
39,473
7,899
110,220
261,277
68,929
2,428
484,109
460,137
335,059
332,634
Aggregated according to categories in IAS 39:
Loans and receivables (LaR)
Financial liabilities measured at amortized cost
(FLAC)
175,797
481,484
175,797
456,580
110,220
332,573
110,220
330,206
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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).
Financial instruments
T _ 065
I N € T H O U S A N D S
Financial liabilities
Senior facilities
Finance lease liabilities
Sept 30, 2016
Sept 30, 2015
Total
Level 11)
Level 22)
Level 33)
Total
Level 11)
Level 22)
Level 33)
376,191
3,557
–
–
376,191
–
261,277
–
3,557
2,428
–
–
261,277
–
–
2,428
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 in the previous fiscal year:
• 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 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 payments 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.
• 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 hierarchy 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, 2016
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 Notes 9 and 10. The net foreign exchange gain amounted to €2,169
thousand (PY: €16,936 thousand).
Total interest income and expense from financial instruments is reported in Notes 9 and 10.
9
1
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 1
2
0
The value of the embedded derivatives was effected by the interest of the comparable market instru-
ment on each potential exercise date and will rise if the relevant interest rate declines and vice versa.
33 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
analyzed continuously and the information obtained from this serves as an early warning indicator for
possible changes in demand patterns.
In addition, significant KPIs (order intake, sales and EBIT, 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
policies 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 have any derivative
financial instruments as of September 30, 2016.
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 dealing only 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.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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
Other financial assets
Total
I N € T H O U S A N D S
Financial assets
Trade accounts receivable
Other financial assets
Total
Sept 30, 2016
Neither past
due nor
impaired
< 30 days
30 – 60 days
60 – 90 days 90 – 360 days
> 360 days
Total
88,026
3,160
91,186
7,016
–
7,016
958
–
958
598
–
598
404
–
404
598
–
598
97,600
3,160
100,760
Neither past
due nor
impaired
< 30 days
30 – 60 days
60 – 90 days 90 – 360 days
> 360 days
Total
Sept 30, 2015
53,872
7,899
61,771
6,075
1,002
–
–
6,075
1,002
414
–
414
1,280
–
1,280
206
–
206
62,848
7,899
70,747
1
2
1
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 are
also typically 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 and by monitoring forecast cash flows at regular intervals.
The following maturities summary shows how cash flows from the Group’s liabilities as of Septem-
ber 30, 2016 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
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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 Note 23.
Liquidity outflows for liabilities
I N € T H O U S A N D S
Senior facility
Finance lease
Trade accounts
payable
80,389
–
–
–
–
–
T _ 067
Total
95,101
19,571
19,345
19,123
377,097
942
14,084
18,944
18,719
18,494
376,216
–
628
627
626
629
881
942
446,456
4,333
80,389
531,178
2017
2018
2019
2020
2021
after 2021
Total
The senior facilities give planning stability over the next years. At the balance sheet date, the Group
has undrawn committed facilities of €70.0 million (PY: €50.0 million) to reduce liquidity risks.
F I N A N C E M A R K E T R I S K S
1
2
2
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, 2016, the Group has not entered
into any derivative financial instruments. The Group monitors closely its exposure to interest rate risk
and foreign currency risk and regularly checks the opportunities of entering 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 cur-
rency exchange rate fluctuations for the operating business, the Group continually assesses its exposure
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 €0.4 million.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS Interest rate risk
The Group is exposed to interest rate risks, which mainly relate to debt obligations, as the Group
financing is based on Euribor-related credit agreements.
The interest rate risk is monitored by using the cash flow sensitivity of the Group’s cash flows due to
floating interest loans.
An 1% increase of floating interest rates (Euribor) would lead to an increase of financial expense of
approximately €4.0 million. As the Euribor is below 0% as of September 30, 2016 a decrease has no
effect on financial expenses.
34 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.
The equity ratio as of September 30, 2016 is calculated as follows:
Equity ratio
I N € T H O U S A N D S
Equity
Total assets
Equity ratio
The Stabilus Group is not subject to externally imposed capital requirements.
The ratio of net debt to adjusted EBITDA (earnings before interest, taxes, depreciation and amortiza-
tion), which is also used as a covenant in the senior facilities agreement, is an important financial ratio
(debt ratio) used in the Stabilus Group. The objective is to improve the debt ratio in the future. The
Company does not expect a breach of this covenant.
3
2
1
T _ 068
Year ended Sept 30,
2016
262,892
937,412
28.0%
2015
76,709
542,239
14.1%
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 35
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
activities. 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 €6,984 thousand (PY: €32,237 thousand) are reflected in cash outflows from
financing activities. Income tax payments of €13,599 thousand (PY: €17,274 thousand) are recognized
in cash flows from operating activities.
36
Segment reporting
1
2
4
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 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 EBIT”. Adjusted EBIT represents EBIT
(i.e. earnings before interest and taxes), as adjusted by management primarily in relation to severance,
consulting, restructuring and other non-recurring costs, expenses for one-time legal disputes, interest on
pension changes as well as depreciation and amortization of fair value adjustments resulting from pur-
chase price allocations (PPA).
STABILUSCONSOLIDATED FINANCIAL STATEMENTS Segment information for the fiscal years ended September 30, 2016 and 2015 is as follows:
Segment reporting
T _ 069
I N € T H O U S A N D S
External revenue1)
Intersegment revenue1)
Total revenue1)
Depreciation and amortization
(incl. impairment losses)
EBIT
Adjusted EBIT
I N € T H O U S A N D S
External revenue1)
Intersegment revenue1)
Total revenue1)
Depreciation and amortization
(incl. impairment losses)
EBIT
Adjusted EBIT
Europe
NAFTA
Asia / Pacific and RoW
Year ended Sept 30,
Year ended Sept 30,
Year ended Sept 30,
2016
364,195
28,038
392,233
2015
2016
2015
308,474
288,988
229,285
28,293
9,556
4,649
2016
84,318
758
336,767
298,544
233,934
85,076
(24,384)
(21,409)
46,026
54,050
33,987
41,075
(7,877)
32,066
33,423
(6,509)
24,619
25,099
(4,346)
11,230
11,318
2015
73,512
393
73,905
(3,217)
9,743
10,018
Total segments
Other / Consolidation
Stabilus Group
Year ended Sept 30,
Year ended Sept 30,
Year ended Sept 30,
2016
737,501
38,352
775,853
2015
611,271
33,335
644,606
(36,607)
(31,135)
89,322
98,791
68,349
76,192
2016
–
(38,352)
(38,352)
(12,678)
(12,678)
–
2015
–
(33,335)
(33,335)
(12,678)
(12,678)
–
2016
737,501
–
2015
611,271
–
737,501
611,271
(49,286)
(43,813)
76,644
98,791
55,671
76,192
5
2
1
1) Revenue breakdown by location of Stabilus company (i.e. “billed-from view”).
The column “Other / Consolidation” includes among others the effects from the purchase price alloca-
tion for the April 2010 business combination. The effects from the purchase price allocation for the
June 2016 business combination are included in the regions.
The EBIT of operating segment Europe in the fiscal year ended September 30, 2016 includes an impair-
ment loss of €(741) thousand (PY: €(794) thousand). The amounts presented in the column “Other /
Consolidation” above include the elimination of transactions between the segments and certain 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.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS The following table sets out the reconciliation of the total segments’ profit (adjusted EBIT) 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 EBIT)
Other / consolidation
Group adjusted EBIT
Adjustments to EBIT
Profit from operating activities (EBIT)
Finance income
Finance costs
Profit / (loss) before income tax
Year ended Sept 30,
2016
98,791
–
98,791
(22,147)
76,644
2,556
(13,261)
65,938
2015
76,192
–
76,192
(20,521)
55,671
17,851
(42,405)
31,117
1
2
6
The adjustments to EBIT include refinancing, capital increase, pension interest, depreciation and amor-
tization of PPA as well as launch / startup and reorganization- related advisory expenses (only in fiscal
year 2015).
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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
UK
Europe
Mexico
USA
NAFTA
China
South Korea
Brazil
Australia
Japan
New Zealand
Asia / Pacific and rest of world
Revenue
T _ 071
Year ended Sept 30,
2016
262,546
100,508
1,141
364,195
169,985
119,003
288,988
53,741
11,751
5,181
6,760
5,273
1,612
84,318
737,501
2015
236,551
71,923
–
308,474
134,123
95,162
229,285
42,800
12,041
6,513
5,729
4,744
1,685
73,512
611,271
7
2
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS Geographical information: Non-current assets by country
T _ 072
Year ended Sept 30,
I N € T H O U S A N D S
Germany
Romania
Spain
Luxembourg
UK
Switzerland
France
Goodwill
Europe
USA
Mexico
Goodwill
NAFTA
China
South Korea
Brazil
Australia
Japan
New Zealand
Goodwill
Asia / Pacific and RoW
Total
1
2
8
2016
246,838
24,269
2,542
720
6,827
79
6
112,081
393,362
106,238
25,188
72,572
203,998
37,888
10,373
1,961
1,005
1,484
462
12,804
65,977
2015
160,251
21,357
3,470
821
85
78
7
27,787
213,856
44,086
26,562
13,379
84,027
30,277
10,043
2,065
1,054
503
275
10,292
54,509
663,337
352,392
The non-current assets above exclude financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts.
In fiscal year 2016, the Group had three customers which accounted for at least 10% of total exter-
nal revenue. The revenue with these customers was €82,069 thousand (PY: €62,672 thousand),
€81,559 thousand (PY: €68,036 thousand) and €78,344 thousand (PY: €71,952 thousand), respec-
tively. In fiscal year 2016 and 2015 such revenue was generated in all three operatings segments.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 37
Share-based payment
The Group established share-based payment arrangements for members of the Management Board
(Matching Stock Program) and for senior management employees (Phantom Stock Program).
M AT C H I N G S TO C K P R O G R A M
The variable compensation for the members of the Management Board includes a matching stock pro-
gram. The matching stock program (the “MSP”) provides for four annual tranches granted each year
during the time frame fiscal year ending September 30, 2015 until September 30, 2017. Participation
in the matching stock program requires Management Board members to invest in shares of the Com-
pany. The investment generally has to be held for the lock-up period.
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 match-
ing stock program. The amount of stock options received depends upon a factor to be set by the Super-
visory Board (Remuneration Committee) annually in a range between 1.0 and 1.7 times for a certain
tranche. Thus, if a Management Board member were to buy 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 sub-
ject 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 (Remuneration Committee) annually in a range between 0.0 and 0.3 times for a
certain tranche. Thus, if a Management Board member were to be holding 1,000 shares under the MSP
in the Company, he would receive 0 to 300 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 relevant 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 fictitious 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 Man-
agement 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 Company plans a cash settlement. 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 is not taken into
account for MSP A.
9
2
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 1
3
0
P H A N TO M S TO C K P R O G R A M
The Group initiated for 2015 and 2016 a Phantom Stock Program for ten senior management employees
excluding Stabilus S.A. directors. To participate in the program, the employees have to invest a certain
amount in Stabilus shares. The employee receives options in a ratio of two for each self-investment,
capped at an investment level of €10,000 per program year. 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
exercise is triggered by the sale of the underlying shares. The payout price is triggered by the price of
the share sales in the exercise period. The payout is capped at 500% of the invested amount.
M E A S U R E M E N T O F FA I R VA L U E S
The fair value of the share-based payments of the MSP has been measured by using a binomial simulation.
The inputs used in the measurement of the fair values at the grant date and the measurement date of the
MSP include market conditions and were as follows. The expected volatility has been based on the histori-
cal volatility of the 3-year period to September 30, 2016.
Input parameter for fair value measurement of MSP
VA L UAT I O N D AT E
MSP B (2014)
Fair value
Share price
Expected annual volatility
Expected annual dividend yield
Expected remaining duration (timing of exercise)
Risk-free annual interest rate
Exercise price
MSP A/B (2015)
Fair value
Share price
Expected annual volatility
Expected annual dividend yield
Expected remaining duration (timing of exercise)
Risk-free annual interest rate
Exercise price
T_073
Sept 30, 2016
Sept 30, 2015
€8.72
€50.10
1.00%
2.0 years
(0.72)%
€24.82
€7.83
€50.10
33.0%
1.00%
3.0 years
0.72%
€31.08
€8.78
€32.25
31.0%
1.50%
3.0 years
(0.20)%
€24.82
–
–
–
–
–
–
–
STABILUSCONSOLIDATED FINANCIAL STATEMENTS In the fiscal year 2016 options for the MSP A and B were issued.
Number of share options
T_074
Outstanding as at October 01, 2014
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding as at September 30, 2015
Exercisable as at September 30, 2015
Outstanding as at October 01, 2015
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding as at September 30, 2016
Exercisable as at September 30, 2016
MSP B (2014)
MSP A/B (2015)
Number of
options
Exercise price
Number of
options
Exercise price
–
–
19,721
€24.82
–
–
–
–
19,721
€24.82
–
–
19,721
€24.82
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
133
–
–
35,911
€24.82
–
916
–
€31.08
€31.08
–
19,588
€24.82
34,995
€31.08
–
–
–
–
1
3
1
The Phantom Stock Program is measured by using a binomial stimulation and accrued over the vesting time.
Phantom Stock Program options
T_075
Outstanding as at October 01, 2014
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding as at September 30, 2015
Exercisable as at September 30, 2015
Outstanding as at October 01, 2015
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding as at September 30, 2016
Exercisable as at September 30, 2016
Phantom Stock
Program 2014/15
Phantom Stock
Program 2015/16
Number of
options
Exercise
price
Number of
options
Exercise
price
–
5,642
–
–
5,642
–
5,642
–
–
–
5,642
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,217
–
–
3,217
–
3,217
–
–
–
3,217
–
–
–
–
–
–
–
–
–
–
–
–
–
STABILUSCONSOLIDATED FINANCIAL STATEMENTS T_076
Sept 30, 2016
Sept 30, 2015
€49.27
€50.10
1.00%
–
€48.78
€50.10
1.00%
–
€32.25
€32.25
–
–
€32.25
€32.25
–
–
Year ended Sept 30,
2016
920
732
–
–
1,652
T _ 077
2015
612
161
–
–
772
Phantom Stock Program options
VA L UAT I O N D AT E
Phantom Stock Program 2014/15
Fair value
Share price
Expected annual dividend yield
Exercise price
Phantom Stock Program 2015/16
Fair value
Price of the Stabilus share
Expected annual dividend yield
Exercise price
1
3
2
E X P E N S E R E C O G N I Z E D I N P R O F I T O R L O S S
An amount of €200 thousand has been recognized in the related employee benefit expenses and an
amount of €330 thousand in provisions for employee-related expenses.
38 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
For fiscal year ended September 30, 2016, a global fee (excluding VAT) of €800 thousand (PY: €612
thousand) was agreed with the group auditors for the audit of the consolidated and annual financial
statements of the Stabilus entities and an additional €120 thousand for the audit of the purchase price
allocation. These fees are included in the Group’s administrative expenses.
In addition, KPMG Luxembourg Société coopérative, Luxembourg, and other member firms of the
KPMG network, billed the Group audit-related fees amounting to, excluding VAT, €732 thousand
(PY: €161 thousand).
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 39 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.
40
Remuneration of key management personnel
The key management personnel are the members of the Management Board Dietmar Siemssen (CEO),
Mark Wilhelms (CFO), Andreas Schröder (Director Group Financial Reporting) and Andreas Sievers
(Director Group Accounting and Strategic Finance Projects) as well as Bernd-Dietrich Bockamp (Director –
until December 2015). In the prior year figures former key management personnel Hans-Josef Hosan
(CTO until May 2015) and Ansgar Krötz (COO – until September 2015) were included.
The total remuneration paid to key management personnel of the Group is calculated as the amount of
remuneration paid in cash, benefits in kind and expenses for share-based payments. Benefits in kind
primarily comprise the provision of company cars and pensions.
The total remuneration of the above-mentioned key management personnel at the various key Stabilus
Group affiliates during the reporting period amounted to €1,975 thousand (PY: €5,810 thousand),
thereof €1,865 thousand (PY: €1,718 thousand) is classified as short-term employee benefits, €0 thou-
sand (PY: €73 thousand) is classified as post-employment benefits, €0 thousand (PY: €3,975 thousand)
is classified as termination benefits and €111 thousand (PY: €43 thousand) classified as share-based
payments.
The compensation of the Management Board members for fiscal year 2016 was split in a fixed com-
pensation of €959 thousand (PY: €976 thousand) and a variable compensation of €906 thousand
(PY: €743 thousand).
The total remuneration to the members of the Supervisory Board amounts to €365 thousand
(PY: €351 thousand).
Members of the Management and Supervisory Board have direct interest in Stabilus S.A. of about
jointly 0.7% of the total shares.
3
3
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 41 Subsequent events
As of December 13, 2016, 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, 2016.
Luxembourg, December 13, 2016
Stabilus S.A.
Management Board
1
3
4
STABILUSCONSOLIDATED FINANCIAL STATEMENTS RESPONSIBILITY STATEMENT
We, Dietmar Siemssen (Chief Executive Officer), Mark Wilhelms (Chief Financial Officer), Andreas
Schröder (Group Financial Reporting Director) and Andreas Sievers (Director Group Accounting and
Strategic Finance Projects), confirm, to the best of our knowledge, that the consolidated financial
statements which have been prepared in accordance with the International Financial Reporting Stand-
ards 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, December 13, 2016
Dietmar Siemssen
Mark Wilhelms
Andreas Schröder
Andreas Sievers
Management Board
5
3
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT BOARD OF STABILUS S.A.
The Management Board comprises four members:
Dietmar Siemssen (Chairman) is the Chief Executive Officer and
Andreas Schröder is the Group Financial Reporting Director and
was appointed to the Management Board in 2014 as well as the
was appointed to the Management Board in 2014. Mr. Schröder
Chairman of the Management Board. With 20 years of experience
joined Stabilus in 2010. Prior to that, he worked for several years
in the automotive industry, Mr. Siemssen joined Stabilus in 2011
in assurance and advisory business services at Ernst & Young. He
following a 19-year career in various management positions at
holds a degree in business administration. Mr. Schröder also holds
Continental AG. He holds a degree in mechanical engineering and
further management positions within the Stabilus Group.
business administration. Mr. Siemssen also holds further manage-
ment positions within the Stabilus Group.
Andreas Sievers is the Director Group Accounting and Strategic
Finance Projects of the Stabilus Group. Mr. Sievers joined Stabilus
Mark Wilhelms is the Chief Financial Officer and was appointed
in 2016. From 2010 to 2015 he worked for the Schaeffler Group
to the Management Board in 2014. With 25 years of experience in
as Vice President Accounting Excellence and External Reporting
the automotive industry, Mr. Wilhelms joined Stabilus in 2009 from
and Vice President Accounting Projects. Prior to that he served as a
FTE Automotive, where he served as Chief Financial Officer for six
German and U.S. Certified Public Accountant including positions at
years. From 2007, he was also head of the NAFTA region at FTE.
PricewaterhouseCoopers AG and Deloitte GmbH. He holds a
Prior to that, he held various management positions in finance, plant
degree in business administration and passed exams as a U.S and
and marketing at various locations over his 17-year career at Ford.
German Certified Public Accountant in 2002 and 2004, respec-
He holds a degree in process engineering as well as a degree in
tively. Mr. Sievers also holds further management positions within the
economics. Mr. Wilhelms also holds further management positions
Stabilus Group.
within the Stabilus Group.
Bernd-Dietrich Bockamp (until December 2015) served Stabilus
as Director Group Accounting and as a member of the Manage-
ment Board since 2014. Mr. Bockamp joined Stabilus in 2011. Prior
to that, he led the financial projects and system team at FTE Auto-
motive following several years at KPMG Bayerische Treuhand. He
holds a degree in industrial engineering and management.
1
3
6
STABILUSCONSOLIDATED FINANCIAL STATEMENTS SUPERVISORY BOARD OF STABILUS S.A.
The Supervisory Board comprises four members:
Udo Stark serves as a member of the Supervisory Board since 2014
Dr. Joachim Rauhut serves as a member of the Supervisory Board
as well as the Chairman of the Supervisory Board. He was Chairman of
since May 12, 2015. He was a member of the Executive Board of Wacker
the Executive Board of MTU Aero Engines AG until 2007. From 1991
Chemie AG until October 31, 2015. He joined the Management Board
until 2000, Mr. Stark led the listed plant construction and machinery
of Wacker-Chemie GmbH in 2001 and supported Wacker Chemie’s
group Agiv AG. Subsequently, he became Chairman of the Shareholder
initial public offering in 2006. Previously, he served in various leading
Committee at Messer Griesheim GmbH, Chairman of the Executive
corporate positions, including posts at Mannesmann AG and Krauss-
Board of mg technologies AG and CEO of MTU Aero Engines AG. From
Maffei AG. He is a member of the Supervisory Board of MTU Aero
2008 to 2013, Mr. Stark served as a member of the Supervisory Board
Engines AG and B. Braun Melsungen AG, member of the Advisory
of MTU Aero Engines AG. Until May 2016, he was a member of the
Counsel of J. Heinrich Kramer Holding GmbH and member of the Advi-
Supervisory Board of Bilfinger SE and until September 2015 he was
sory Board of the Region South of COMMERZBANK Aktiengesellschaft.
the Chairman of the Audit Committee of Bilfinger SE. Until Decem-
ber 2015, he was a member of the Advisory Board of Barmenia
Dr. Ralf-Michael Fuchs serves as a member of the Supervisory
Versicherungen and since September 2014, he is Chairman of the
Board since October 1, 2015. He joined Dürr AG in 2000 and contin-
Advisory Board of Arvos Group.
ues to be a member of the Dürr Senior Executive Management and
Dr. Stephan Kessel serves as a member of the Supervisory Board
is Chairman of the Management Board of Carl Schenck AG, a sub-
since 2014. He was Chief Executive of Continental AG until 2002. Pre-
sidiary of Dürr Group, as well as board member of various Dürr com-
viously, Dr. Kessel held a variety of management positions at Continen-
panies. Previously, he had been serving in various leading roles,
tal AG, joining its Management Board in 1997 and becoming Chief
including positions at AGIV AG and IWKA AG.
CEO of the Division Measuring and Process Systems. Furthermore, he
Executive in 1999. In recent years, Dr. Kessel has taken up a number of
board positions at European companies including, among others,
Stabilus. From 2008 through 2010, Dr. Kessel was Chairman of the
Board of the former holding company of the Operating Stabilus Group.
7
3
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 1
3
8
INDEPENDENT AUDITOR’S REPORT
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 Annual General Meeting of the Shareholders dated February 17, 2016,
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 September 30, 2016
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 explanatory information as set
out on pages 65 to 134.
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 con-
solidated 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.
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 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 65 to 134 give a true and
fair view of the consolidated financial position of Stabilus S.A. as of September 30, 2016, 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 combined management report, including the corporate governance statement, which is the respon-
sibility 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 13, 2016
KPMG Luxembourg Société coopérative
Cabinet de révision agréé
Ph. Meyer
9
3
1
STABILUSCONSOLIDATED FINANCIAL STATEMENTS 1
4
0
STABILUSCONSOLIDATED FINANCIAL STATEMENTS D
C H A P T E R D
ANNUAL
ACCO-
UNTS
BALANCE SHEET
as of September 30, 2016
Balance sheet
I N € T H O U S A N D S
Assets
Fixed assets
Intangible fixed assets
Concessions, patents, licenses, trade marks and similar rights and assets, if they
were acquired for valuable consideration and need not be shown under goodwill,
to the extent that it was acquired for valuable consideration
Tangible fixed assets
Other fixtures and fittings, tools and equipment
Financial fixed assets
Shares in affiliated undertakings
Current assets
Debtors
Amounts owed by affiliated undertakings
becoming due and payable within one year
Other receivables
becoming due and payable within one year
1
4
2
Cash at bank, cash in postal check accounts, checks and cash in hand
Prepayments
Total assets
T_078
N OT E
Sept 30, 2016
Sept 30, 2015
3
461,744
461,766
9
20
16
35
461,715
161,108
461,715
6,341
160,547
6,133
199
362
441
68
139
543
623,293
468,650
4
5
6
STABILUSANNUAL ACCOUNTS Balance sheet
I N € T H O U S A N D S
Liabilities
Capital and reserves
Subscribed capital
Share premium and similar premiums
Reserves
Legal reserve
Other reserves
Profit or loss brought forward
Profit or loss for the financial year
Subordinated debts
Non convertible loans
becoming due and payable after more than one year
Provisions
Provisions for taxation
Non subordinated debts
Trade creditors
becoming due and payable within one year
Amounts owed to affiliated undertakings
becoming due and payable within one year
Tax and social security debts
Tax debts
Social security debts
Other creditors
becoming due and payable within one year
Total liabilities
T_078
N OT E
Sept 30, 2016
Sept 30, 2015
7
602,426
451,115
247
207
419,801
260,771
21
4,836
185,281
(7,759)
–
–
800
800
21
4,836
185,389
(108)
–
–
9
9
20,067
17,525
2,374
922
8
17,009
16,150
–
10
674
25
83
345
623,293
468,650
3
4
1
STABILUSANNUAL ACCOUNTS PROFIT AND LOSS ACCOUNT
for the fiscal year ended September 30, 2016
Profit and loss account
I N € T H O U S A N D S
Charges
Other external charges
Staff costs
Salaries and wages
Social security on salaries and wages
Value adjustments
on formation expenses and on tangible and intangible fixed assets
Other operating charges
Value adjustments and fair value adjustments on financial current assets
1
4
4
Interest and other financial charges
concerning affiliated undertakings
other interest and similar financial charges
Income tax
Profit for the financial year
Total charges
Income
Other operating income
Other interest and other financial income
derived from affiliated undertakings
Loss for the financial year
Total income
T_079
Year ended Sept 30,
N OT E
2016
2015
9
11
10
12
18,960
7,496
906
547
359
22
22
1,291
59
81
–
81
2
–
810
493
316
15
15
351
–
876
303
573
20
–
21,321
9,567
12,872
9,459
–
689
7,759
21,321
–
–
108
9,567
STABILUSANNUAL ACCOUNTS NOTES TO THE ANNUAL ACCOUNTS
for the year ended September 30, 2016
1 General
Stabilus S.A., Luxembourg, hereafter also referred to as “Stabilus” or the “Company” is a public lim-
ited liability company (société anonyme) incorporated in Luxembourg and governed by Luxembourg
law. The registered office of the Company is 2, rue Albert Borschette, L-1246 Luxembourg, Grand
Duchy of Luxembourg. The trade register number is B0151589. The Company was founded under the
name of Servus HoldCo S.à r.l. on February 26, 2010.
The Company is managed by a Management Board under the supervision of the Supervisory Board.
The Company is formed for an unlimited duration.
The purpose of the Company is (i) the acquisition, holding and disposal, in any form, by any means,
whether directly or indirectly, of participations, rights and interests in, and obligations of, Luxembourg
and foreign companies, including but not limited to any entities forming part of the Stabilus group, (ii)
the acquisition by purchase, subscription, or in any other manner, as well as the transfer by sale,
exchange or in any other manner of stock, bonds, debentures, notes and other securities or financial
instruments of any kind (including notes or parts or units issued by Luxembourg or foreign mutual
funds or similar undertakings) and receivables, claims or loans or other credit facilities and agreements
or contracts relating thereto, and (iii) the ownership, administration, development and management of
a portfolio of assets (including, among other things, the assets referred to in (i) and (ii) above).
The Company’s financial year starts on the October 1 and ends on September 30 each year.
The Company has no parent company which prepares consolidated financial statements including the
Company as a subsidiary.
The Company also prepares consolidated financial statements in accordance with EU regulation
1606/2002.
The copies of the consolidated financial statements are available at the registered office of the Com-
pany at 2, rue Albert Borschette L-1246 Luxembourg or on www.stabilus.com.
5
4
1
STABILUSANNUAL ACCOUNTS 2 Summary of significant accounting policies
B A S I S O F P R E S E N TAT I O N
The annual accounts are prepared in accordance with Luxembourg company law and generally accepted
accounting principles applicable in Luxembourg. The accounting policies and valuation principles are,
apart from those enforced by Law, determined by the Management Board.
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 Company maintains its books and records in euro (€). The balance sheet and the profit and loss
account are expressed in this currency.
Formation expenses, intangible, tangible and financial fixed assets denominated in currencies other
than € are translated at the historical exchange rates.
1
4
6
Cash at bank denominated in currencies other than € are translated at the exchange rates prevailing at
the date of the balance sheet.
Current assets and liabilities denominated in currencies other than € (having an economic link and similar
characteristics) are recorded globally at the exchange rates prevailing at the date of the balance sheet.
Long term debts denominated in currencies other than € having an economic link with receivables
recorded in financial assets (and having similar characteristics) are translated at the historical
exchange rates (loans “back to back”).
As a result, realized exchange gains and losses and unrealized exchange losses are recorded in the
profit and loss account. Unrealized exchange gains are not recognized.
VA L U AT I O N O F I N TA N G I B L E A N D TA N G I B L E F I X E D A S S E T S
Intangible and tangible assets are used for business purposes and are measured at cost less accumu-
lated value adjustments. Depreciation on intangible and tangible fixed assets is recorded on a straight-
line basis in accordance with its utilization and based on the useful life of the asset. The residual value,
depreciation methods and useful life are reviewed annually and adjusted, if necessary.
VA L U AT I O N O F F I N A N C I A L F I X E D A S S E T S
Shares in affiliated undertakings, participating interests and securities held as fixed assets are stated at
acquisition cost. Write-downs are recorded if a permanent reduction in the fair value is expected. The
impairment analysis is done individually for each investment.
STABILUSANNUAL ACCOUNTS Loans to affiliated undertakings are recorded at their nominal value. Loans are written down to their
recoverable amount if there is a permanent impairment.
These value adjustments may not be continued if the reasons for which the value adjustments were
recognized have ceased to exist.
D E B TO R S
Current receivables are recorded at their nominal value. Current receivables are written down to their
recoverable amount if there is a permanent impairment.
These value adjustments may not be continued if the reasons for which the value adjustments were
recognized have ceased to exist.
D E B T S
Debts are recorded at their reimbursement value. Where the amount repayable on account is greater than
the amount received, the difference is shown as an asset and is written off over the period of the debt.
Debts are recorded under subordinated debts when their status is subordinated to unsecured debts.
P R O V I S I O N S
Provisions are intended to cover losses or debts, the nature of which is clearly defined and which, at
the date of the balance sheet, are either likely to be incurred or certain to be incurred but uncertain as
to their amount or the date on which they will arise.
7
4
1
STABILUSANNUAL ACCOUNTS 3 Movements in fixed assets
1
4
8
Fixed assets schedule
I N € T H O U S A N D S
Gross value
Balance as of Sept 30, 2015
Additions
Disposals
Balance as of Sept 30, 2016
Accumulated value adjustments
Balance as of Sept 30, 2015
Additions
Disposals
Balance as of Sept 30, 2016
Carrying amount
Balance as of Sept 30, 2015
Balance as of Sept 30, 2016
4 Financial fixed assets
Shares in affiliated
undertakings
I N € T H O U S A N D S
Blitz F10 neun GmbH,
Wallersheimer Weg 100,
56070 Koblenz, Germany
Servus III (Gibraltar) Limited,
57/63 Line Wall Road, Gibraltar
Servus Luxembourg S.à r.l.,
2 rue Albert Borschette,
L-1246 Luxembourg
Servus Sub S.à r.l.,
2 rue Albert Borschette,
L-1246 Luxembourg
Total
Intangible fixed
assets
Tangible
fixed assets
Shares in
affiliated
undertakings
T_080
Total
22
–
–
22
(6)
(7)
–
(13)
16
9
44
–
–
44
(9)
(15)
–
(24)
35
20
461,715
461,781
–
–
–
–
461,715
461,781
–
–
–
–
(15)
(22)
–
(37)
461,715
461,766
461,715
461,744
Proportion of
capital held
Year end date
T_081
Shares in
affiliated
undertakings
as at Sept 30,
2016
Equity as at
year end
(including result)
Profit or loss for
the year ended
100.00%
31.12.2015
100.00%
30.09.2015
28
5,162
2
5,156
100.00%
30.09.2015
13
(33)
100.00%
30.09.2015
456,512
461,715
456,419
(12)
–
(10)
(40)
STABILUSANNUAL ACCOUNTS 5 Amounts owed by affiliated undertakings
The increase is mainly related to cash pool receivables owed by affiliated undertakings amounting to
€149,641 thousand (PY: €5,978 thousand). The remaining increase is due to the reimbursement of costs
incurred for the refinancing and acquisition activities resulting in a receivable of €10,905 thousand.
6 Prepayments
Prepayments mainly relate to insurance contracts.
7 Capital and reserves
On July 5, 2016, the Management Board of Stabilus S.A., with the approval of the Supervisory Board,
resolved to utilize about 37% of its authorized capital (10.8 million shares) and to increase the share
capital from €207 thousand by €40 thousand to €247 thousand via issuance of 3,976,744 new bearer
shares which will bear full dividend rights for the fiscal year 2016. Following the issuance of new
shares, the total number of shares amounts to 24.7 million and the number of authorized shares
amounts to 31.5 million.
On July 6, 2016, the capital increase was successfully completed: Stabilus issued 3,976,744 new
bearer shares and placed these shares with institutional investors. On July 7, 2016, the new shares
were admitted for trading and included in the current listing in the Prime Standard segment of the
Frankfurt Stock Exchange.
Issued capital as of September 30, 2016 amounts to €247 thousand (PY: €207 thousand) and was fully
paid in. It is divided into 24.7 million shares with a nominal value of €0.01 each.
As at September 30, 2016, the share premium amounts to €419,801 thousand and the distributable
other reserve amounts to €4,835 thousand. The increase is due to the premiums received for the issu-
ance of shares in July 2016 amounting to €159,030 thousand.
The authorized capital of the Company is set at €315 thousand represented by maximum of 31.5 mil-
lion shares, each with a nominal value of €0.01.
Under Luxembourg law, the Company is required to allocate annually at least 5% of its statutory net
profit to a legal reserve until the aggregate reserve equals 10% of the subscribed share capital. The
reserve is not available for distribution. In financial year 2016 no additional amount has been allocated
to the legal reserve.
8 Amounts owed to affiliated undertakings
An amount of €17,009 thousand (PY: €16,150 thousand) consists of cash pool liabilities owed to affil-
iated undertakings.
9
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1
STABILUSANNUAL ACCOUNTS 9 Other external charges
Other external charges
I N € T H O U S A N D S
Administration fees
Consulting fees
Audit fees
Group insurance
Legal and professional fees
Bank charges
Total
T_082
2015
500
6,324
378
111
168
15
Year ended Sept 30,
2016
133
17,978
396
207
228
17
18,959
7,496
1
5
0
Consulting fees include fees in relation to the refinancing of the term loan facility and the acquisition
of certain entities (e. g. ACE, Hahn-Gasfedern and Fabreeka/Tec Products) from the SKF Group.
10 Other operating charges
The other operating charges refer in substance to real estate transfer tax and to the remuneration of
the Supervisory Board.
11 Staff costs
The Company employs 5 employees as of September 30, 2016 (PY: 4). The average number of employees
in the financial year 2016 was 5 (PY: 3).
12
Interest and other financial charges
Interest in other financial charges include €51 thousand for the temporary drawing of Equity Bridge
Facility.
13 Other operating income
The other operating income includes reimbursements of refinancing and acquisition costs to the group
of €10,300 thousand (PY: €9,458 thousand).
14 Taxation
The Company is subject to Luxembourg company tax law.
STABILUSANNUAL ACCOUNTS 15 Related Parties
The remuneration of the members of the Management Board amounts to €343 thousand
(PY: €278 thousand).
The remuneration of the members of the Supervisory Board amounts to €365 thousand
(PY: €351 thousand).
As of September 30, 2016 member of the Management and Supervisory Board held 0.7% of the total
shares in Stabilus S.A.
16 Share-based payment
The variable compensation for the members of the Management Board includes a matching stock pro-
gram. The matching stock program (the “MSP”) provides for four annual tranches granted each year
during the financial year ending September 30, 2014 until September 30, 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.
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 Supervisory
Board (Remuneration Committee) annually in a range between 1.0 time and 1.7 times for a certain
tranche. Thus, if a Management Board member were to buy 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 (Remuneration Committee) annually which will be in a range between 0.0 and 0.3 times for a
certain tranche. Thus, if a Management Board member were to be holding 1,000 shares under the MSP
in the Company, he would receive 0 to 300 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 relevant 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 fictitious
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 options. The company plans a cash settle-
ment. 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.
1
5
1
STABILUSANNUAL ACCOUNTS In fiscal year 2016 12,751 options were issued for MSP A and 23,160 for MSP B. The exercise price is
€31.08.
17 Commitments, contingencies and pledges
The Company and other affiliated companies entered into a new senior term loan facility with a total
amount of €640,000 thousand made up of a €455,000 thousand senior A facility, an equity bridge
facility commitment of €115,000 thousand and a €70,000 thousand revolving facility. The equity bridge
facility commitment has already been repaid per September 30, 2016, the new facility agreement is
valid until June 30, 2021. The new loan was used for the redemption of the loan issued on Decem-
ber 19, 2014.
With share pledge agreement dated September 27, 2016 the Company is guarantor of the senior term
loan facility.
The Company has signed a rent contract starting November 1, 2013 and terminating January 31, 2018.
The rental payments for the financial year 2017 will be €171 thousand and for the financial year 2018
€57 thousand. The company issued a bank guarantee amounting to of €100 thousand.
18 Subsequent Events
There were no events or developments that could have materially affected the measurement and pres-
entation of the Company’s assets and liabilities as of September 30, 2016.
1
5
2
STABILUSANNUAL ACCOUNTS INDEPENDENT AUDITOR’S REPORT
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 A N N U A L A C C O U N T S
Following our appointment by the Annual General Meeting of the Shareholders dated February 17, 2016,
we have audited the accompanying annual accounts of Stabilus S.A. which comprise the balance sheet as
at September 30, 2016 and the profit and loss account for the year then ended, and a summary of signifi-
cant accounting policies and other explanatory information as set out on pages 142 to 152.
Management Board’s responsibility for the annual accounts
The Management Board is responsible for the preparation and fair presentation of these annual accounts
in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the
annual accounts, and for such internal control as the Management Board determines is necessary to
enable the preparation of annual accounts 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 annual accounts 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
annual accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the annual accounts. The procedures selected depend on the judgement of the Réviseur d’Entreprises
agréé, including the assessment of the risks of material misstatement of the annual accounts, whether
due to fraud or error. In making those risk assessments, the Réviseur d’Entreprises agréé considers inter-
nal control relevant to the entity’s preparation and fair presentation of the annual accounts 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 annual accounts.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
3
5
1
STABILUSANNUAL ACCOUNTS Opinion
In our opinion, the annual accounts as set out on pages 142 to 152 give a true and fair view of the
financial position of Stabilus S.A. as of September 30, 2016, and of the results of its operations for the
year then ended in accordance with Luxembourg legal and regulatory requirements relating to the
preparation of the annual accounts.
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 combined management report, including the corporate governance statement, which is the respon-
sibility of the Management Board, is consistent with the annual accounts and includes the information
required by the law with respect to the corporate governance statement.
Luxembourg, December 13, 2016
KPMG Luxembourg Société coopérative
Cabinet de révision agréé
Ph. Meyer
1
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4
STABILUSANNUAL ACCOUNTS E
C H A P T E R E
ADDITIONAL
INFORMA-
TION
FINANCIAL CALENDAR
Financial calendar
D AT E 1 ) 2 )
December 15, 2016
February 13, 2017
February 15, 2017
May 15, 2017
August 11, 2017
November 27, 2017
December 15, 2017
T _ 083
P U B L I C AT I O N / E V E N T
Publication of full year results for fiscal year 2016 (Annual Report 2016)
Publication of the first-quarter results for fiscal year 2017 (Interim Report Q1 FY17)
Annual General Meeting
Publication of the second-quarter results for fiscal year 2017 (Interim Report Q2 FY17)
Publication of the third-quarter results for fiscal year 2017 (Interim Report Q3 FY17)
Publication of preliminary financial results for FY2017
Publication of full year results for fiscal year 2017 (Annual Report 2017)
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
2017 comprises a year ended September 30, 2017.
1
5
6
DISCLAIMER
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 take into account only 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 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 combined manage-
ment report. However, other factors could also have an adverse effect on our business
performance and results. Stabilus S.A. neither intends to nor assumes any separate obli-
gation 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 combined management report were calculated using
the underlying data in millions of euros to one decimal place (€ millions).
STABILUSADDITIONAL INFORMATION TABLE DIRECTORY
D E S C R I P T I O N
Latest growth projections for selected economies
Production of light vehicles
Income statement
Revenue by region
Revenue by markets
Reconciliation of EBIT to adjusted EBITDA
Reconciliation of EBIT to adjusted EBIT
Operating segments
Balance sheet
Cash flows
Free cash flow
Adjusted FCF
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Subsidiaries
Exchange rates
New standards and interpretations
Standards and interpretations issued and endorsed by the EU (not yet adopted)
Standards and interpretations issued but not yet endorsed by the EU
Business combination
Revenue by region
Revenue by markets
Expenses by function
Personnel expenses
Number of employees
Other income
Other expenses
Finance income
Finance costs
Income tax expense
Tax expense reconciliation (expected to actual)
Deferred tax assets and liabilities
Tax loss and interest carry-forwards
Weighted average number of shares
Earnings per share
Property, plant and equipment
Depreciation expense for property, plant and equipment
Goodwill sensitivity analysis
Intangible assets
Amortization expense for intangible assets
Other financial assets
Other assets
Inventories
Trade accounts receivable
Allowance for doubtful accounts
7
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N U M B E R
PA G E
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
42
42
44
44
45
47
47
48
49
51
52
52
65
66
68
69
72
75
76
76
78
87
89
89
90
90
91
91
91
92
92
93
93
94
95
96
96
97
98
100
101
102
102
103
103
104
104
STABILUSADDITIONAL INFORMATION D E S C R I P T I O N
Other comprehensive income / (expense)
Financial liabilities
Other financial liabilities
Provisions
Changes of non-current provisions
Changes of current provisions
Pension plans and similar obligations
Unfunded status
Present value of defined benefit obligations
Pension cost for defined benefit plans
Present value of the defined benefit obligation and the experience adjustments on the plan liabilities
Significant factors for the calculation of pension obligations
Other liabilities
Operating lease
Finance lease
Financial commitments
Financial instruments
Financial instruments
Credit risk included in financial assets
Liquidity outflows for liabilities
Equity ratio
Segment reporting
Reconciliation of the total segments’ profit to profit / (loss) before income tax
Geographical information: Revenue by country
Geographical information: Non-current assets by country
Input parameter for fair value measurement of MSP
1
5
8
Number of share options
Phantom Stock Program options
Phantom Stock Program options
Auditor’s fees
Balance sheet
Profit and loss account
Fixed assets schedule
Shares in affiliated undertakings
Other external charges
Financial calendar
N U M B E R
PA G E
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
106
107
108
108
109
110
111
112
112
112
113
113
115
115
116
118
118
119
121
122
123
125
126
127
128
130
131
131
132
132
142
144
148
148
150
156
STABILUSADDITIONAL INFORMATION INFORMATION RESOURCES
Further information including news, reports and publications can be found in the investor relations
section of our website at www.ir.stabilus.com.
Investor Relations
Phone: +352 286 770 21
+352 286 770 99
Fax:
investors@stabilus.com
Email:
S
U
L
I
B
A
T
S
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O
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N
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A
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O
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I
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Picture credits
Page 14: Tesla.com, page 15: Tesla.com, page 18: Bosch Rexroth B. V. & Universität Stuttgart, page 21: Bosch Rexroth B. V. & Universität Stuttgart,
page 22: CLAAS KGaA mbH, Harsewinkel, page 25: © Deere & Company, page 26: NEXTracker, page 29: NEXTracker, page 30: Adam Opel AG, Rüsselsheim,
page 31: FCA Fiat Chrysler Automobiles, page 31: © chungking / Adobe Stock, page 32: Thermo Fisher Scientific, page 33, above: Käuferle GmbH & Co. KG,
Aichach, page 33, below: Exklusiv-Hauben GUTMANN GmbH, Mühlacker
Stabilus S.A.
2, rue Albert Borschette,
L-1246 Luxemburg
Grand Duchy of Luxembourg
Phone: +352 286 770 1
Fax: +352 286 770 99
Email: info.lu@stabilus.com
Internet: www.stabilus.com