Consolidated Financial Statements - L. Possehl & Co. mbH

Net assets: Balance sheet total increases by 20.7 %
The Group balance sheet total increased during the reporting period
by € 91.4 million to € 533.5 million. The increase in assets accrues almost
exclusively to the current assets, while the fi xed assets increased
only slightly.
The shares we hold in Norddeutsche Affi nerie AG continue to comprise
the main item being reported within the participations, while the Süd-
Chemie shares have been reorganized into the current assets due to
the disposal during the new year.
The stock exchange price of the NA share developed very well during
2005, so that the silent reserves in our block of shares increased
considerably.
Within the current assets, the inventory holdings increased in particular
by € 48.0 million to € 148.3 million. This increase accrues mainly to
International Trading and the fi rst-time consolidation of the Harburg-
Freudenberger Group. In International trading, the request by our customers
to keep consignment stocks on the books is continuing to intensify.
Trade receivables increased overall by € 27.1 million to €150.6
million. This increase can be traced back almost exclusively to the revised
scope of consolidation.
The non-recourse selling of receivables as part of an asset-backed securities
transaction reduced the receivables portfolio by € 16.4 million.
At the same time, the working capital increased by about 14 % compared
to the previous year, to € 192.4 million. This increase is therefore
due mainly to the exchange rate.
Group equity increases by € 20.8 million
Alongside the increased assets, equity that is now higher by € 20.8
million as well as the mainly short-term outside capital that increased
by € 70.6 million can be noted on the liabilities side.
The increase in equity from € 181.6 million to € 202.4 million is based
mainly on the Group net income for the year of € 26.5 million. In addition,
the weaker Euro compared to the previous year had a positive
effect on the amount of Group equity. Contrary to this was the instant
offsetting of goodwill from the acquisition of the Harburg-Freudenberger
Group as well as the dividend to the Possehl Stiftung.
Despite the absolute increase in Group equity, the equity ratio was reduced
from 41.1 % to 37.9 % due to the considerably higher balance
sheet total. The long-term tied-up assets continue to be covered in full
by the equity.
EMPLOYEES
Group demonstrates a high level of internationality
The Possehl Group employed an annual average of 4,267 employees
worldwide during the reporting period. Compared to the previous year,
this represents an increase of 608 persons. Due to the fi rst-time inclusion
of the Harburg-Freudenberger Group, the number of employees
within the Group increased by an average of 822 employees, while the
number of employees in the Precious Metals and Electronics divisions
declined slightly during the same period.
Employees by segment
Number
238
70
■ Holding company
■ Services
■ Trading
■ Production
45
3,914
Total: 4,267
In accordance with the international orientation of the Possehl Group,
72 % of our employees are working outside of Germany. This percentage
has declined somewhat compared to the previous year, since Harburg-
Freudenberger Maschinenbau GmbH employed a total of 632 persons
at their two production sites in Germany as of December 31, 2005.
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