Annual Report 2007 - Muehlhan AG

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72 23. EARNINGS PER SHARE Earnings per share were calculated on the assumption that 4,000,000 new ordinary shares issued in october 2006 are included in the annual average for two full months. as regards the period prior to the company’s conversion into a joint stock company, it was assumed for comparative purposes that the number of shares amounted to 15,500,000 in the previous year and up to the conversion date in 2006 since the subscribed capital of the former limited liabi lity company had been unchanged. this resulted in an average of 16,166,667 ordinary shares in 2006 and an average of 19,500,000 ordinary shares in 2007. Since there were no potential ordinary shares at the balance sheet date, basic and diluted earnings per share are identical. vi. other disclosures 24. TRANSACTIONS WITH RELATED PARTIES (COMPANIES AND PERSONS) transactions between the company and its subsidiaries deemed to be related parties have been eliminated on consolidation and are not commented on in these notes. related companies and persons have been mentioned under para. 9. the composition of the Executive board and the Supervisory board is described under para. 28 and para. 29. the Chairman of the Supervisory board, dr Wulf-dieter H. Greverath, is a related person within the meaning of iaS 24.9 since he is also a major shareholder of Muehlhan aG through companies controlled by him. dr Wulf-dieter H. Greverath and the companies controlled by him are characterized as “Greverath property” in the following comments. pursuant to a purchase contract of 15 September 2006, Muehlhan aG acquired all shares in Muehlhan Corrosion protection Service (Shanghai) Co., ltd., Shanghai, China (MCN) from Greverath property. the purchase contract was entered into at terms usual in the market. the property (including buildings) at Schlinckstrasse 3 in Hamburg (head office of the Group) has been leased by Muehlhan aG from Greverath property at terms customary in the market. in 2007 the Group’s expenses with respect to Greverath property totaled Eur 491 thousand for rent, real estate taxes, Supervisory board compensation, and reimbursements of costs. these expenses were offset by income in 2007 in the amount of Eur 2,077 thousand, of which Eur 2,009 thousand are attributable to a waiver of receivables and otherwise from interest income and cost transfers. at the balance sheet date, there were trade receivables from cost transfers against the Greverath property in the amount of Eur 20 thousand and trade payables in the amount of Eur 1,027 thousand. the payables involve the purchase price for the acquisition of MCN, Supervisory board compensation and cost reimbursements. 25. OTHER FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES at the balance sheet date, normal contingent liabilities existed in respect of consortium memberships. other financial commitments consisting mainly of rental and lease payments amounted to Eur 3,364 thousand of which Eur 1,309 thousand is due in 2008, Eur 833 thousand is due in 2009 and Eur 1,222 thousand is due at a later date.
ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents 26. ExECUTIVE BOARD Members of the parent company’s Executive board are: dr andreas C. Krüger (Chairman), Hamburg Mr bernd Janssen, buchholz Mr Carsten Ennemann, Hamburg one director represents the company jointly with another director or authorized officer. dr Krüger is exempted from the restrictions imposed by Section 181 of the German Civil Code (bGb). the salaries of the parent company’s Executive board amounted to Eur 895 thousand in the financial year. 27. SUPERVISORY BOARD Members of the Supervisory board in the reporting year were: dr Wulf-dieter H. Greverath (Chairman), Managing director, Hamburg dipl.-ing. dr Gottfried Neuhaus, Managing director, Hamburg Mr philip percival, Managing director, london, Great britain on 11 february 2008, the Supervisory board was paid Eur 50 thousand in expenses for 2007. 28. FINANCIAL INSTRUMENTS With respect to trade receivables, other receivables and other assets, loans, cash and cash equivalents, trade payables and other liabilities, the book value approximates the market value. financial investments include interests that do not trade on an active exchange and whose fair value cannot be determined reliably. therefore, they continue to be valued at their acquisition cost. Similarly, the loan issued in 2006 is valued at its acquisition cost. in addition, we refer to Section ii. of these notes, significant consolidation, accounting and valuation principles. Capital risk management the Muehlhan Group manages its capital with the objective of maximizing the income of stakeholders by optimizing the relationship of external and equity capital. the equity ratio of Group companies should not be less than 25%. No target is set for the parent company. for the Group there is a minimum consolidated equity ratio of 27.5% (from 2008: 30%) in the reporting year, which must be maintained in accordance with bond terms. as of 31 december 2007, the Group had a consolidated equity ratio of 46.5% (previous year: 48.3%). Financial risk management the parent company provides various treasury services to the Group companies. for example, it prepares a rolling liquidity preview at regular intervals. otherwise, a cash pooling system is used whenever it is structurally possible. in addition, the parent company regulates, manages and issues loans and makes available its own and, in cooperation with specialized external companies, external bonding capacities. We assess specific risk exposures as follows: 73
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Annual Report 2007
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Content 2 ManageMent 2 Foreword 5 E
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Executive Bodies executive board Dr
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One is successful not primarily as
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Continued and consistently good bus
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ManaGeMent divisions share Group Ma
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Annual Report 2007 - Muehlhan AG

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