Matth. Hohner AG

Notes to the Consolidated Financial Statements for Business Year 2010/2011
2. Property, plant and equipment
The separate presentation of the development of tangible assets is attached as exhibit to the notes.
The additional impairment amounted to TEUR 200 in the business year (prior year: TEUR 0). A manufacturing
assets (segment “Wind-instruments”) amounted to TEUR 116 became useless due to technical faults. It was
depreciated to the fair value less cost to sell. Due to the fact, that this machine is a custom-made article the
fair value less cost to sell was determined to TEUR 0.
The remaining TEUR 85 belongs to further Property, plant and equipment where no use can be determined.
The affected assets are no longer useable due to technical faults.
Since the machines are fixed to the needs of the company, there are no possibilities for sale.
The book value of financial lease’ operating and business equipment amounts TEUR 0 as of March 31, 2011
(prior year: TEUR 5).
The prospective minimum lease rates of irredeemable operating lease are presented in the table below:
2011/2012
2012/2013–
2015/2016
from
2016/2017
March 31, 2011 TEUR TEUR TEUR TEUR
Lease installments 37 39 0 76
2010/2011
2011/2012–
2014/2015
from
2015/2016
March 31, 2010 TEUR TEUR TEUR TEUR
Lease installments 47 60 0 107
The payment which is recorded as expenditure of the operating lease were amounted to TEUR 47 (prior
year: TEUR 41) in the business year 2010/2011. All lease contracts relate to cars and operating and business
equipment and have no purchase options.
To the balance sheet day March 31, 2011, land and buildings amounted to TEUR 5,987 (prior year:
TEUR 6,148) as well as TEUR 267 (prior year: TEUR 255) of operating and business equipment were
used to ensure liabilities to banks.
Total
Total
3. Investments accounted for At-Equity and other financial assets
Hohner Inc., USA holds a 25 % interest in Shanghai Lansheng-Hohner Musical Instruments Co., Ltd.,
Shanghai, China. Shanghai Lansheng-Hohner Musical Instruments Co., Ltd. is a joint venture in China which
produces harmonicas. The balance sheet date is December 31. The carrying amount determined using the
equity method is TEUR 184 (prior year: TEUR 189). The decrease in the amount of this investment accounted
by the use of the equity method is due to the change in the EUR/USD exchange rate with a share in net
income of TEUR 0 of Shanghai Lansheng-Hohner Musical Instruments Co., Ltd., Shanghai, China. The
following table provides financial information for this joint venture as of December 31, 2010 and December
31, 2009:
Shanghai Lansheng-Hohner Musical Instruments Co., Ltd.
December
31, 2010
December
31, 2009
TEUR TEUR
Current assets 803 729
Non-current assets 114 116
917 845
Current liabilities 137 140
Non-current liabilities 0 0
137 140
Revenues 930 807
Cost of sales -833 -727
Administrative expenses -102 -80
Earnings before income taxes -5 0
Income tax expense (prior year: Income tax income) 0 0
Earnings after taxes -5 0
The other financial assets refer to the shares in Hohner-Konservatorium Trossingen GmbH, Tros-singen, held
by Matth. Hohner Aktiengesellschaft. Due to the fact, that no quoted market price can reliably measured,
this financial asset is recognized at cost. The equity instrument is not defined for sale and a sale is also not
intended.
Notes to the CoNsolidated FiNaNCial statemeNts Notes to the CoNsolidated FiNaNCial statemeNts
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