Group - L. Possehl & Co. mbH

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aCCoUNtiNG PriNCiPLES intangible assets acquired for valuable consideration are carried at cost less scheduled amortization on a straight-line basis and any unscheduled amortization as necessary. Scheduled amortization normally takes place over the contractual or expected useful life of the individual assets. Licenses and similar rights are normally amortized over a useful life of one to five years. Goodwill resulting from initial consolidation is recognized directly in equity in the Group’s retained earnings. All other goodwill is amortized over the expected amortization period of up to 15 years. Property, plant, and equipment are carried at cost, less scheduled depreciation for use and any unscheduled depreciation as necessary. If the basis for unscheduled depreciation no longer exists, the assets are written back. Costs of property, plant, and equipment produced internally include an appropriate portion of overhead costs, including depreciation of production equipment, as well as the direct costs. Costs of debt financing are not included in production costs. Assets of minor value are fully depreciated in the year purchased and shown in the asset schedule under disposals. Public subsidies for the purchase or manufacture of assets are deducted from the cost of those assets. Property, plant, and equipment are normally depreciated over their expected useful life on a straight-line basis. In the Electronics division, tools are depreciated based on a combination of useful life and actual use over a maximum period of four years. Scheduled depreciation is based on the following assumptions of useful life: 40 years Buildings 20 – 50 Technical plant and machinery 5 – 10 Tools 1 – 4 Operating and office equipment 3 – 10 Carrying amounts for associated companies reported under financial assets are adjusted for the pro rata share of profit and loss, taking account of dividend payments. These adjustments are disclosed in the asset schedule as additions or disposals. Equity investments in subsidiaries that are not fully consolidated and other equity investments are recognized at cost less any impairment losses. Loans bearing no or a low rate of interest are recognized at present value. Interest bearing loans are always recognized at nominal value. Securities held as fixed assets are recognized at cost. inventories are carried at the lower of cost or quoted/market price or fair value on the balance sheet date. Production-related overhead costs and depreciation of production-related property, plant, and machinery are included in addition to direct costs of production. Financing costs are not included. Inventories are measured using the average cost method, except for precious metals, which are measured using the Last-in-First-out method, in line with common practice in the industry. Inventories are written down if their realizable value is diminished due to longer storage periods. The principle of “lower of cost or market” is respected. advanced payments received for inventories are deducted directly from the carrying amounts. receivables and other assets are normally recognized at the lower of nominal value or fair value as per the balance sheet date. Any risks are accounted for by individual write downs of 1 % of the carrying amount of receivables not written down individually. tax receivables and tax liabilities are normally recognized at the amount expected to be received or paid to the tax authorities. For the first time, pension provisions are measured according to the projected benefit credit method in line with IAS 19 taking into account future compensation and pension adjustments. The calculation is based on the following parameters: Actuarial interest rate 5.3 % Salary growth 3.0 % Pension growth 1.5 %
The biometric data underlying the measurement of pension pro visions were based on the actuarial tables G for 2005 by Dr. Klaus Heubeck. The difference of e 10.2 million between the previous valuation in line with § 6a German Income Tax Law (Einkommensteuergesetz, EstG) and the valuation in line with IAS 19 is reflected in earnings via the extraordinary result from pension provisions. other provisions were recognized for all available risks and uncertain obligations as necessary using reasonable commercial judgment. Longer-term provisions are only recognized at present value if the underlying obligation includes an interest portion. Liabilities are recognized at their repayment amount. Liabilities in foreign currencies are translated at the rate applicable as per the date they arose or the rate as per the balance sheet date. NotES to tHE CoNSoLidatEd BaLaNCE SHEEt fixed assets Detailed information is available in the schedule of changes in consolidated fixed assets. Historical cost as per January 1, 2007 includes adjustments for currency translation without effect on profit or loss of e 121,000 in intangible assets and e 11,320,000 in property, plant, and equipment. 1. intangible assets in E ’000 12/31/2007 12/31/2006 1. Concessions, commercial rights and similar rights and assets and licenses to such rights and assets 2,299 2,719 2. Goodwill 486 572 3. Advance payments received 6 6 2,791 3,297 This item mainly contains software. Only the amounts reported in the individual Group companies are shown as goodwill here. Goodwill arising on consolidation of equity is recognized directly in Group equity. In the reporting year, a total of e 8,533,000 was recognized without effect on the income statement. 2. Property, Plant, and Equipment Letter from the Executive Board Company Boards Report of the Controlling Boards Successful over the Long Term Group Management Report Consolidated Financial Statements Further Information in E ’000 12/31/2007 12/31/2006 1. Land, equivalent titles, and buildings including buildings on leased land 62,487 61,524 2. Technical plant and machinery 36,651 46,885 3. Other plant, operating, and office equipment 17,055 11,393 4. Advance payments made and plant under construction 4,093 8,456 120,286 128,258 The Production segment accounted for the majority of total capital expenditure of e 21,512,000 for property, plant, and equipment; in particular the divisions Cleaning Machines (e 9,460,000), Electronics (e 4,340,000), and Elastomer Processing (e 2,683,000). 3. financial assets in E ’000 12/31/2007 12/31/2006 1. Shares in affiliated companies 61 643 2. Loans to affiliated companies 110 110 3. Equity investments in associates 13,230 15,666 4. Other equity investments 289 916 5. Loans to investee and investor companies 5,515 4,397 6. Securities held as fixed assets 348 39,518 7. Other loans 1,219 1,944 20,772 63,194 The reduction in securities held as fixed assets reflects the sale of the equity stake in Norddeutsche Affinerie AG. The complete list of the parent company’s equity investments is published along with the financial statements in the electronic version of the German Federal Gazette. 41
Page 1 and 2: Annual Report 2007 Successful over
Page 3 and 4: Possehl - the Entrepreneurs’ Gr C
Page 5 and 6: Table of Contents Letter from the E
Page 7 and 8: Uwe Lüders, Born 1952, Dipl.-Volks
Page 9 and 10: dr. Lutz Peters Letter from the Exe
Page 11 and 12: All of this is essential for the su
Page 13 and 14: The organizational structure of Pos
Page 15 and 16: Possehl initially becomes deeply in
Page 17 and 18: Possehl views each of its companies
Page 19 and 20: ovErviEW of tHE ECoNoMiC CoNditioN
Page 21 and 22: StratEGiC dirECtioN aNd MaNaGEMENt
Page 23 and 24: The increase in net sales came prim
Page 25 and 26: Cleaning Machines: Significant Grow
Page 27 and 28: BALANCE SHEET STRUCTURE Fixed asset
Page 29 and 30: Letter from the Executive Board Com
Page 31 and 32: The regular reporting is supplement
Page 33 and 34: EPort oN SUBSEqUENt EvENtS, oPPortU
Page 35 and 36: Consolidated Balance Sheet as of De
Page 37 and 38: Consolidated Cash flow Statement fr
Page 39 and 40: Cumulative 01/01/2007 Exchange rate
Page 41 and 42: Group shareholders’ equity withou
Page 43: Equity is consolidated under the eq
Page 47 and 48: As per the balance sheet date, the
Page 49 and 50: NotES to tHE CoNSoLidatEd iNCoME St
Page 51 and 52: NotES to tHE CoNSoLidatEd CaSH fLoW
Page 53 and 54: auditors’ report * We have audite
Page 55 and 56: Name Registered in Letter from the
Page 57 and 58: CONTACT AND IMPRINT L. Possehl & Co

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