Post on 03-Jul-2020
AnnuAl RepoRt
2009
Contents2
Contents
1. 5 overview
2. 6 reportbythesupervisoryboard
3. 8 forewordbythemanagementboard
4. 10 Ctsshares
5. 12 CorporategovernanCereportofCtseventimag
6. 16 Combinedmanagementreport 16 preliminarystatements 16 businessandmacroenvironment 24 earningsperformanceandfinancialposition 43 briefassessmentofthebusinessyear 43 appropriationofearningsbyCtsag 43 dependenciesreportforCtsag 43 eventsafterthebalancesheetdate 44 riskreport 50 disclosurespursuantto§315(4)hgband/or§289(4)hgb 51 Corporategovernancedeclaration 52 outlook
7. 54 ConsolidatedfinanCialstatements2009 54 Consolidatedbalancesheet 56 Consolidatedincomestatement 56 Consolidatedstatementofcomprehensiveincome 57 Consolidatedstatementofchangesinshareholders´equity(ifrs) 58 Consolidatedcashflowstatement 59 notestotheconsolidatedfinancialstatements
8. 112 finanCialstatementsofCtsag2009 112 balancesheetofCtsag 114 incomestatementofCtsag 116 notestothefinancialstatements
133 Contact,publishers´notes
contents
3
overview4
overview
keygroupfigures
oveRview
* numberofshares:24million** numberofemployeesatendofyear(activeworkforce)
2009 2008
[EUR‘000] [EUR‘000]
revenue 466,698 404,348grossprofit 124,437 97,447personnelexpenses 44,989 39,484operatingprofitbeforedepreciationandamortization(ebitda) 79,974 57,830depreciationandamortization 8,694 7,547operatingprofit(ebit) 71,280 50,282profitfromordinarybusinessactivities(ebt) 71,496 53,377netincomeafternon-controllinginterest 39,943 29,207Cashflow 58,258 44,396
[eur] [eur]
earningspershare*,undiluted(=diluted) 1.66 1.22
[Qty.] [Qty.]
numberofemployees** 1,143 1,111ofwhichtemporary (159) (155)
1.
5
reportbythesupervisoryboard
reportbythesupervisoryboardofCtseventimagontheannualfinancialstatements,thecon-solidatedfinancialstatementsandthecombinedmanagementreportforthecompanyandthegroupasawholeforthefinancialyearfrom1January2009to31december2009.
i.themembersofthesupervisoryboardofthecompanyduringthereportingyearweremr.edmundhug(oberstenfeld),dr.peterhaßkamp(bremen,until14may2009),prof.Jobstw.plog(hamburg)andhorstr.schmidt(aschaffenburg,from14may2009).mr.hugactedasChairmanthroughouttheyear,withdr.haßkampactingasvice-Chairmanuntil14may2009andprof.plogasvice-Chairmanasfrom14may2009.nocommitteeswereformed.
ii.throughout theyear, thesupervisoryboarddischarged its responsibilitiesas requiredby lawand thearticlesof incorporation. itwas regularly informedby themanagementboard inwriting,verbally, promptly andextensively about all issues relevant for corporateplanningand strategicdevelopment,abouttheprogressofbusinessactivitiesandthesituationofthegroup,includingrisksandriskmanagement.thesupervisoryboardprovidedthemanagementboardwithregularadviceconcerningthemanagementofthecompany,andmonitoredhowthecompanyanditsgroupweremanaged.itensuredthatmanagementofthecompanywaslawfullyconducted,andwasinvolvedinalldecisionsoffundamentalimportanceforthecompany.afterthoroughexaminationandconsultation,thesupervisoryboardsubmitteditsopiniononthereportspreparedandtheresolutionsproposedbythemanagementboard,totheextentthatthisisrequiredbylawandbyprovisionsinthearticlesofincorporation.theactivitiesofthesupervisoryboardduringthereportingyearalsoincludedintensiveinvolvementinacquisitionsmadebythecompany,providingadviceanddeciding,wherenecessary,onconsent for suchmeasures.decisionswerealso takenusing thewrittenprocedure,wheresorequired.
thesupervisoryboardwaskeptinformedbythemanagementboardnotonlyatsupervisoryboardmeetingsbutalsobeyondsuchmeetings–forexamplewhentransactionsofspecialimportanceorurgencywerebeingconducted.inthereportingyear,thesupervisoryboardmeton24march2009(‘financialstatementsmeeting’),13may2009,14may2009(constitutivemeetingafterchangeofamember),4september2009and11november2009.themanagementboardofthecompanyalsotookpartatthesemeetingsandhadanopportunitytocommentonbusinessactivitiesofimportanceforthecompany.onthebasisofthesubmittedreportsandotherinformation,thesupervisoryboardexaminedthegeneralbusinessdevelopmentofthecompanyanditsvarioussubsidiaries,inparticulartheachievementofthebudgetedperformancefiguresforrevenueandearnings,aswellasthegrowthofcashflowandthemainprojectscarriedoutbythecompanyandthegroupasawhole.
iii.attheannualshareholders’meetingofthecompanyheldinbremenon14may2009,pricewa-terhouseCoopersagwirtschaftsprüfungsgesellschaft inosnabrück,a firmofpublicauditors,waschosentoaudittheannualfinancialstatementsandtheconsolidatedfinancialstatementsasat31december2009.theauditcommissionwasdulygrantedby thesupervisoryboardChairmanonbehalfofallsupervisoryboardmembers.
the2009annual financial statements, the2009consolidated financial statements, thecombinedmanagementreportandtherespectiveauditreportsweresubmittedbythemanagementboardofthecompanytothesupervisoryboardintimelymanner,andweredulyexaminedbythesupervisoryboard.
atthesupervisoryboardmeetingon19march2010,theannualfinancialstatementsandtheconso-lidatedfinancialstatementsfor2009,aswellasthecombinedmanagementreportandthemanage-mentboard’sproposalforappropriationofprofits,werediscussedindetailwiththesupervisoryboard.thesupervisoryboardwasabletoconferwiththeauditor,whoalsoattendedthemeeting.
RepoRt by the supeRvisoRy boARd
edmundhugChairman
2.
6
reportbythesupervisoryboard
theannualfinancialstatementswerepreparedbythemanagementboardincompliancewiththestatutoryregulationsandwereissuedwithanunqualifiedauditopinionbytheauditor.
havingexaminedtheauditreport,thesupervisoryboardapprovestheannualfinancialstatementsaspreparedby themanagementboard,whichare therefore formallyadopted inaccordancewith§172aktg(stockCorporationact).thesupervisoryboardalsoapprovestheconsolidatedfinancialstatementspreparedbythemanagementboardforthe2009financialyear,towhichnoobjectionsareraised.themanagementboard’sproposalforappropriationofthebalancesheetprofitwasrevie-wedandacceptedbythesupervisoryboardasaccordingwiththeinterestsofthecompanyanditsshareholders.
iv.inaccordancewith§312aktg,themanagementboardhaspreparedareportforthe1January–31december2009financialyearontherelationshipstoaffiliatedcompanies,inwhichitisstatedthat,judgingfromthecircumstancesknownatthetimelegaltransactionsrequiringdisclosurewerecon-ducted,thecompanyreceivedadequateconsiderationineachcaseandthatnomeasuresrequiringdisclosurewereeithereffectedorwaivedinthe2009businessyearatthebehestorintheinterestofaffiliatedenterpriseswithinthemeaningof§312aktg.
theauditorprovidedthefollowingunqualifiedauditopinionregardingthefindingsobtainedduringhisauditofthereportondependencies:
‘havingauditedandassessedthereportinaccordancewithprofessionalstandards,weconfirmthat
(1)thedisclosuresoffactmadeinthereportaretrueandcorrect,
(2)thattheperformancerenderedbythecompanyinconnectionwiththelegaltransactionsdetailedinthereportarenotunreasonablyhigh.’
thesupervisoryboardlikewiseexaminedthereportondependenciespreparedbythemanagementboardandconcurswith theaudit findings.accordingto theconclusivefindingsof thesupervisoryboardinthecontextofsaidexamination,noobjectionsareraisedagainstthefinaldeclarationbythemanagementboardcontainedinsaidreport.
v.nochangesweremadetothecompositionofthemanagementboardduringthereportingyear.
vi.on19march2010,thesupervisoryboardandthemanagementboardissuedtheirmostrecentlyupdatedjointdeclarationofcompliancewiththegermanCorporategovernanceCode,inaccordancewith§161aktg;thisdeclarationispublishedonthecompanywebsiteatwww.eventim.de.
thesupervisoryboardwishestothankthemanagementboardandallemployeesofthecompanyfortheworktheyperformedduringthe2009financialyear.
march2010
horstr.schmidtprof.Jobstw.plogvice-Chairman
edmundhugChairman
7
forewordbythemanagementboard
ladiesandgentlemen,
2009sawourcompanycontinuingitssuperbtrackrecordofsuccessandgrowthestablishedinpreviousyears–inbothticketingandliveentertainment.inourtenthyearonthefrankfurtstockexchange,theshareprice,revenueandearningswereoutstanding,despitetheglobaleconomicandfinancialcrisis.mostimportantly–thefansremainedloyaltousin2009.myexplanationforthegrowthinticketssold:whentheeconomyisincrisis,peopleallowthemselvessmalltreatssuchasconcertsorsportsandculturalevents.thankstothelargenumberofattractiveevents,wewereabletomeetthishugedemand.
weareverysatisfiedwiththefiguresfor2009.ourcompanygeneratedeur466.7millionbetween1Januaryand31december2009–ayear-on-yearincreaseof15.4%.earningsbeforeinterestandtaxes(ebit)roseby41.8%toreachafigureofeur71.3million.
europeanexpansionstillhashighpriority
theCtsgroupcontinued toextend its leadershipof theeuropeanmarket in2009.additionalmarketsharesweregainedinthenetherlands,finland,swedenandhungary,inparticular.withtheplannedjointventurewithringierag,switzerland’sbiggestprivatemediacompany,thefoun-dationshasnowbeenlaidformarketgrowthinthatcountry.atthebeginningof2010,continuationof thisstrategy led to the takeoverofticketcornerholdingag, the leaderof theswiss ticketingmarket.systematicgrowthinothereuropeancountriesisalsoplannedfortheyearsahead.
onlinetiCketing–ourgrowthmarket
high-marginonlineticketsellingwasanotherhugelyimportantfieldofexpansionforus.ourweb-sites,especiallywww.eventim.deandwww.getgo.de,loggedmorethan303millionvisitorslastyear–around71millionmorethantheyearbefore.around13.4millionticketsweresoldonline,whichis3.8millionmorethanin2008.fortheCtsgroup,internetticketingisanenormousgrowthmarket.ourcompanybenefitsfromdecreasingunitcostsperticketsold,i.e.fromaleveragedincreaseinprofitmargin.
iwouldliketodrawattentioninthiscontexttotwovaluablepartnershipsthatweenteredintointhepastyear.theeventim.deticketshopandthefansale.deticketresellingplatformarenowdirectlyavailabletotheusersofmyspace,theworld’sleadingentertainmentandlifestyleplatform.allthatpromotersandbandsneedtodotosellticketsinthiswayistoincludeaticketingwidgetintheirmyspaceprofile.theother verypromising venture is thepartnershipwithamazon, itunesandmusicload,theleadingmusicdownloadstores.withthesepartners,theCtsgroupiscombiningthepromotionofalbumsandticketswhilealsolaunchingexclusivepromotioncampaignsformusicfans.theaimistoofferexclusivebundlesandtoreachouttonewtargetgroups.wewillcontinu-ouslyimproveinternetservicesthatoffervalue-addedtoweb-savvytargetgroups.
acombinationofinternationalstarsandattractiveculturalandsportseventshelptoreinforceourmarketleadershipposition.ourcustomersknowthattheCtsgroupdeliversthefullrangeofenter-tainmentaswellasall-roundsupport:beatmusicfansarejustaswelcomeasloversofpop,rock
FoRewoRd by the MAnAgeMent boARd
klaus-peterschulenbergChiefexecutiveofficer
3.
8
forewordbythemanagementboard
orclassicalmusic,passionatesportsfansjustasmuchasdrama,musicalandoperalovers.inthemonthsahead,wecontinuetooffertopactssuchasaliciakeys,petermaffay,greenday,western-hagen,aC/dC,pink,whitneyhoustonandu2–anddemandfortheseeventsisasstrongasever.
twothirdsofallgermanfootballleagueClubsworkwitheventimsystems
ourprogressinthesportsmarketwasalsoverygood.ourservicesareusedbymorethan80clubs,associationsandsportspromotersinover20differentdisciplines.withfootball,handball,icehockey,basketball,tennis,boxing,formula1andthegermantouringmasters,ourcoverageforfansisenormous.inthegermanfirst-divisionfootballleague,forexample,almosttwo-thirdsoftheclubsworkwitheventimsystems.
allthesedevelopmentsallowmetohaveaverypositiveviewofthefuture.wewillcontinuetoworkhard to rigorouslyexpandour internetbusinessand topush forwardwithour internationalexpansion,sothatoursharesremainanattractiveequityinvestmentanddividend-payingsecurityinthefuture.inthe2010businessyear,weaimforfurtherincreasesinrevenueandearningsandhencetocontinuewritingoursuccessstory.youarewarmlyinvitedtoaccompanytheCtsgrouponourwayforwards.
klaus-peterschulenbergChiefexecutiveofficer
9
Ctsshares
Ctsshares–arewardinginvestment,evenintimesofCrisis
sharesinCtseventimagtrendedstronglyupwardsinthe2009financialyear;overtheyear,thesharepriceincreasedbyover40%,substantiallyoutperformingthesdaxindexinwhichitislisted.thesharepricebenefittedfromthefactthatCtseventimagsurvivedtheglobaleconomicand financial crisis unscathed–both revenueandgroupearnings rosebydouble digits in thecourseof2009.
bytheendofdecember2009,Ctsshareswereovereur34,almostreachingtheall-timehighachievedin2007.forthemediumterm,analystsseeapricetargetofeur44,sotheupwardtrendshouldcontinue.
in2009,Ctseventimagpaidadividendforthefourthtimeinsuccession.attheshareholders’meetingon14may2009,themanagementboardandsupervisoryboardproposedthatadividendofeur0.61persharebepaidtoshareholders,aftereur0.49ayearearlier.for24millionshares,thisequatestoaroundeur14.6millionintotaldistribution,comparedtoeur11.8milliontheyearbefore.
analysesofCtssharesareproducednotonlybythedesignatedsponsors–iCfkursmakleragonbehalfofdZbankandCommerzbankag–interalia,alsobyberenbergbank,CréditagricoleCheuvreux,westlb,deutschebank,sal.oppenheimandbankofamericamerrill lynch.thismeansthatCtsshareshaveunusuallybroadcoverage.intheviewofmanyanalysts,theuniquebusinessmodelaswellasthenew,attractiveandlong-termpartnershipsmakethesharesaninter-estingandprofitableinvestment.
cts shARes4.
10
Ctsshares
160%
120%
140%
100%
70%
150%
170%
110%
80%
130%
90%
60%
Jan09 feb09 mar09 apr09 may09 Jun09 Jul09 aug09 sep09 oct09 nov09 dec09 Jan10 feb10
Cts sdax
Ctsshares(01.01.2009to28.02.2010–indexed)
2009 2008[EUR] [EUR]
typeofshares no-parvalueordinarybearershares earningspershare 1.66 1.22securitiescode 547030 Cashflow 58,258,380 44,395,549isinnumber de0005470306 high(xetra) 35.99 31.00symbol evd low(xetra) 17.03 17.00firstlisted 01.02.2000 year-end-price(xetra) 34.14 23.94stockexchangesegmentindices
primestandardsdax;primeallshare
marketcapitalisation(basedonyear-end-price)
819,360,000
574,560,000
sectoralindex primemedia sharesoutstandingon31.12. 24,000,000 24,000,000sharecapitalafteripo 12,000,000 12,000,000
11
Corporategovernancereport
Ctseventimaghasalwayscompliedwithnationallyand internationallyacceptedstandardsofgoodandresponsibleenterprisemanagement.forus,Corporategovernanceisafundamentalstandardapplying toall areasof thecompany.externaldirectorshipsheldbymanagementandsupervisoryboardmembersareshownunderpoints18and19inthenotestotheconsolidatedfinancialstatements.relatedpartydisclosuresaremadeunderpoint16inthenotessection.themanagementboardprovidesthefollowingreportoncorporategovernancewithinthecompany–simultaneouslyonbehalfofthesupervisoryboard–inaccordancewithitem3.10ofthegermanCorporategovernanceCode(gCgC):
1. CorporategovernanCedeClarationpursuantto§161aktg
themanagementboardandsupervisoryboardsubmittedanotherdeclarationofcompliancewiththerecommendationscontainedinthegCgCinaccordancewith§161aktgon19march2010.thedeclarationofcompliancereadsasfollows:
duringtheperiodsincesubmissionofthepreviousdeclarationofconformity,CtseventimagfulfilledtherecommendationsoutlinedinthegCgCof6June2008andinlargepartcomplieswiththerecommendationsofthegCgCdated18June2009,withthefollowingexceptions.
incompliancewiththeregulationsgoverningtheprimestandardsegmentofthefrankfurtstockexchange, interim reports are publishedwithin 60 days after the end of each reporting period(gCgC,item7.1.2),sincethismakesiteasiertoensurethatreliablefiguresmayalsobeobtainedfromthemanyunlistedcorporationsingermanyandabroad.
informationrelatingtothird-partycompaniesinwhichthecompanyholdsparticipationsarepub-lishedwhensuchparticipationsareincludedinconsolidation(gCgC,item7.1.4),whichmeansthatallsignificantparticipationsaredisclosed.
nosupervisoryboardcommitteesareformedbecausetheboardconsistsofonlythreemembers.in theestimationof thecompany, thecreationofcommittees isnotconducive to increasing theefficiencyofthesupervisoryboard’swork(items5.3.1,5.3.2and5.3.3).
performance-basedcompensationofsupervisoryboardmembershasbeenwaivedforreasonsofcost,sincesuchasystemwouldonlymakesenseifaccompaniedbyasubstantialincreaseinthecompensationpaidtosupervisoryboardmembers(gCgC,item5.4.6).
anagelimitformanagementboardmembershasnotbeenspecifiedbythesupervisoryboardasyet(gCgC,item5.1.2)becausethecompanyseesnocauseforlimitingtheoptionsavailabletothesupervisoryboard–andhencetoshareholders–whenappointingmembersofthemanagementboard.
thed&opoliciesforthemanagementboardandsupervisoryboarddonotincludeanyown-riskdeductionstodate(dCgk,item3.8).existingcontractsformanagementboardmemberswillbeadjusted,by1July2010,tothenewrulesin§93(2)sentence3aktgintroducedbythelawlimitingexecutivecompensation(vorstandvergütungsbegrenzungsgesetz),butowncontributionsbymem-bersofthesupervisoryboardappearstobeneitherrequired,norappropriate,norreasonableinviewofthemoderateamountofcompensationpaid.
coRpoRAte goveRnAnce RepoRt oF cts eventiM Ag
5.
12
Corporategovernancereport
theagendaoftheannualshareholders’meetingandpossiblysomemanagementboardreportsare published on the internet in addition to theannualreport, other documents pertaining toagendaitems,suchascontractsorannualfinancialstatements,arenotpublishedinordertoprotectthecompany’sconfidentialinformation.thesedocumentsaremadeavailabletocompanysharehol-dersonly,inaccordancewithstatutoryrequirements(gCgC,item2.3.1).’
inaddition,CtseventimagalreadyadheresinlargemeasuretotheadditionalgCgCsugges-tionsregardinggoodcorporategovernance.
2. ownershipofCompanysharesorfinanCialderivativesrelatingto suChsharesonthe partofmanagement boardandsupervisory boardmembers
asattheclosingdatefortheannualfinancialstatements,31december2009,membersofthemanagementboardandsupervisoryboardofCtseventimagheldthefollowingquantitiesofno-parvaluebearersharesinthecompany(isinde0005470306):
3. purChaseorsaleofCompanysharesorfinanCialderivatives relatingtosuChsharesbymanagementboardandsupervisory boardmembers
duringtheperiodunderreview,executiveofficersofCtseventimagdidnotengage inanytransactionsinvolvingno-parvaluebearersharesinthecompany(isinde0005470306).
Number of shares
Share
[Qty.] [in %]
Members of the Management Board:klaus-peterschulenberg(Chiefexecutiveofficer) 12,016,000 50.067%volkerbischoff 0 0.000%alexanderruoff 2,000 0.008%
Members of the Supervisory Board:edmundhug(Chairman) 4,650 0.019%horstr.schmidt 0 0.000%prof.Jobstw.plog 0 0.000%
13
Corporategovernancereport
4. notestothemanagementboardCompensationsystempursuant toitem4.2.3gCgCanddisClosuresontheindividualCompen- sationofmanagementboardmembers,inaCCordanCewiththe lawgoverningsuChdisClosures(vorstandvergütungsoffen- legungsgesetZ)
thetotalamountofcompensationpaidtomembersoftheCtseventimagmanagementboardisdisclosedannuallyinthenotestotheannualfinancialstatementsofthecompany,andamountedinthe2009businessyeartoeur2.131million.Compensationconsistsoffixedannualemolumentsandavariable,performance-basedpayment.theagreedcriteriaforgrantingthevariablecompo-nent,andfortheamountpaid,arerevenue,ebit(earningsbeforeinterestandtaxes)andotherperformance-basedkeyfigures,i.e.clearlydefined,auditableandrelevantsuccesscriteriathatarecontinuouslymonitoredbythesupervisoryboard.themembersofthemanagementboardalsoreceivepaymentsinkind,specificallyintheformofanappropriatecompanycar.
stockoptionsorsimilarcomponentsofcompensationhavenotbeencontractuallyagreedandarenotgrantedtomembersoftheCtseventimagmanagementboard,sonodisclosuresinthisregardneedtobemade.therearenocontractualcommitmentsregardingpaymentswhenboardmembershipends.theamountsofcompensationpaidtotheindividualmembersofthemanage-mentboardandwhichmustbedisclosedbylawareshowninthefollowingtable.
CompensationpaidtomembersoftheCtseventimagmanagementboard:
5. workingmethodsofthemanagementboardand supervisoryboard
themanagementboardandsupervisoryboardworkcloselytogetherforthebenefitofthecom-panyandmaintainregularcontact.thesupervisoryboardholdsfourregularmeetingsayear.themanagementboardkeepsthesupervisoryboardfullyandregularly informedingoodtimeofallrelevantbusinessdevelopments,plans,potentialrisksandriskmanagement.theactivitiesofthemanagementboardandthesupervisoryboardarespecifiedinthestandingorders.thestandingordersofthemanagementboardprovideguidanceinparticularwithregardtothedepartmentalres-ponsibilitiesofitsindividualmembers.theChiefexecutiveofficerregularlyexchangesinformationwiththeChairmanofthesupervisoryboard.
themanagementboardnormallymeetsonaweeklybasis.asarule,itsresolutionsareadoptedbysimplemajority.inaccordancewiththemanagementboard’sscheduleofresponsibilitiestherearethreeboarddepartments:theChiefexecutiveofficer(Ceo),theChieffinanceofficer(Cfo)andtheChiefoperatingofficer(Coo).
Name Fixed salary Benefits Management Bonus Total
[EUR] [EUR] [EUR] [EUR]
klaus-peterschulenberg 1,000,000 0 300,000 1,300,000volkerbischoff 250,000 11,815 105,000 366,815alexanderruoff 350,000 8,824 105,000 463,824 1,600,000 20,639 510,000 2,130,639
14
Corporategovernancereport 15
Combinedmanagementreport
1. preliminarystatements
inaddition tostandalone financial statements forCtseventimag (hereinafter ‘Ctsag’) inaccordancewiththeaccountinglegislationinthegermanCommercialCode(handelsgesetzbuch-hgb),themanagementboardhasalsopreparedconsolidatedfinancialstatementsinaccordancewiththeinternationalfinancialreportingstandards(ifrs),complyingtherebywithallifrsandwith interpretationsof the internationalfinancialreporting interpretationsCommittee(ifriC)asapplicable in theeuropeanunion (eu)on thebalance sheet date.Consolidated financial state-mentsreflectingapplicablehgbprincipleswerenotprepared.
themanagement report ofCtsagand thegroupmanagement report havebeen combined.unless statedotherwise, the information contained in this combinedmanagement report referstothefinancialsituationandbusinessdevelopmentof thegroupasawhole. informationonthefinancialsituationandbusinessdevelopmentofCtsagasastandalonecompanyareprovidedinseparatesectionsofthisannualreportorisshownbyareferenceto‘Ctsag’.
inordertoensureuniformpresentation,receivablesrelatingtoticketmoniesfrompre-salesintheticketingsegment,whichwerepreviouslycarriedascurrenttradereceivables,areaccountedforasothercurrentassetsasatthebalancesheetdateof31december2009.theprioryearcarryingamountsofcurrenttradereceivablesandothercurrentassetsasat31december2008andasat1January2008havebeenadjustedaccordingly(seesection7,Consolidatedfinancialstatements2009,Consolidatedbalancesheet,page54).
theaccountingpoliciesandconsolidationmethodsarethesameasthoseappliedintheconsoli-datedfinancialstatementsasat31december2008.thecomparativefiguresincludedintheincomestatementsrelatetotheconsolidatedfinancialstatementsasat31december2008,andthoseinthebalancesheettotheadjustedconsolidatedfinancialstatementsasat31december2008.
2. businessandmaCroenvironment2.1 maCroeConomiCClimate
atthebeginningof2009,theglobalrecessionledingermanytoahistoricallyunprecedenteddec-lineinexportsandcapitalspending.althoughthegermaneconomywasabletorestabiliseitselfbymid-2009,grossdomesticproductfellby5%relativetotheyearbefore.
anevengreaterfallinoutputwascounteractedbyabroadrangeofprogrammesimplementedbythefederalgovernmenttostabilisetheeconomy,combinedwithasignificantcutintheprimeratebytheeuropeanCentralbank.theemploymentmarketingermanywasstabilisedaboveallbyinten-sifieduseofshort-timeworkingandbyflexiblearrangementsincollectivebargainingagreements.
thecurrent financial crisishadnonoticeable impacton theperformanceof theCtsgroup inthepastbusinessyear.incontrasttogeneralconsumerrestraint,revenueandebitgrowthwereachieved in both theticketing segment and the liveentertainment segment.demand for liveevents appears unbroken, evenor preciselywhen theeconomy is going throughdifficult times.
coMbined MAnAgeMent RepoRt6.
16
Combinedmanagementreport
2.2 industry-speCifiCenvironment
thegroupoperates in the leisureeventsmarketwith itsticketingandliveentertainmentseg-ments.Ctsag,theparentcompanyofthegroup,operatesinthefieldofticketingandisthedomi-nantplayerinthatsegmentonaccountofitssheerimportancefortheticketingindustry.statementsmadeinrespectoftheticketingsegmentthereforeapplyinparticulartoCtsagaswell.
organisingandexecutingevents is theprimaryobjectof theliveentertainmentbusiness.thesituationinthisindustryischaracterisedbyacceleratedglobalisationandmonopolisation.owingtoitsmarketposition,thegroupisconfrontedintheliveentertainmentsegmentbyveryfewcom-petitorsingermany,austriaandswitzerland.
promotersofleisureeventsconsidersalesoftheirticketstobethecriticalfactorfortheirsuccess.thesesalesactivitiesarethebasicobjectoftheticketingsegment,whichmarketsevents(tickets)throughitsleadingnetworkplatform(eventim.net),itsin-houseticketingproduct(eventim.inhouse),asportsticketingproduct(eventim.tixx)andaproprietarysolutionfor ticketsalesandadmissioncontrolinstadiumsandarenas.duetothenetworkingandinternationalisationofticketingsoftwareatnetwork,webandinhouselevel,implementedin2007,itisalsopossibleforticketstobeofferedinastandardisedticketingsystem(globalticketingsystem).
besidesthegermanmarket,thegroupalsooperatesintheticketingsegmentinothereuropeancountries(italy,sweden, theuk, theCzechrepublic,Croatia, thenetherlands,austria,finland,poland,russia,switzerland,theslovakrepublic,slovenia,hungary,bulgaria,romaniabosnia-herzegovinaandserbia),where it competeswith domestic and foreignnetwork operators andticketingsoftwareproviders.
theevents forwhich tickets are sold using theproprietaryCts ticketing software range fromconcertsofclassicalmusic,throughrockandpop,plays,festivals,fairsandexhibitionstosportsevents,especiallyfootball.astheleadingticketsupplier,theCtsgroupissuperblypositionedinthemarket.thatpositionhasbeenreinforcedandextendedintheticketingfieldbyabroaddistribu-tionsystemfeaturingafull-coveragenetworkofboxoffices,salesviacallcentresandinternetticketshops.byholdingparticipationsinleadinggermantourandconcertpromoters,thegroup’spositiononthismarkethasbeenstrengthenedforthefutureaswell.
theCtsgroup competeswith national and regional networkoperators both ingermanyandabroad.the companyenjoys competitive advantagesover competitors, in that theCtsgroupoperateswithfullgeographiccoverageinavarietyofmarketsegmentsusinganetworkedticketingsystem,andbecauseitlinksallsaleschannelsinacommondatabase.anotheradvantageliesinthegroup’sallianceswithmajorpromotersofliveevents,thusallowingalargenumberofdifferentandattractiveevents tobemarketed thoughall thegroup’s sales channels.thesecompetitivestrengthswerefurtherenhancedinthe2009businessyearbyestablishingandgrowingticketingcompaniesinothercountries–alsoonthebasisoftheticketingpartnershipdealsignedindecem-ber2007withlivenationworldwideinc.(hereinafter:livenation),theworldmarketleaderintheliveentertainmentbusiness.
17
Combinedmanagementreport
2.3 groupbusinessperformanCe
inspiteofaglobalfinancialcrisis,theCtsgroupgrewwithundiminishedintensityduringthepastbusinessyear.keyperformancefiguresareshowninthetablebelow:
ticketingsegmentoperationsexpandedbothingermanyandabroadduringthe2009reportingyear,accompaniedbysubstantialgrowthininternetsales,thusleadingtotheanticipatedgrowthinrevenueandearnings.
inoctober2009,theorganisingCommittee(oC)ofthegermanfootballassociation(dfb)con-cludedanexclusivecooperationagreementwithCtsagfortheentireticketingoperationforthefirstfifawomen’sworldCup,tobeheldingermanyin2011.
europeanexpansion included theestablishmentof twomore ticketingcompanies:eventimuklimitedinlondon,andeventimCZs.r.o.inprague.
indecember2009,ajointventurewasagreedwithringierag,thebiggestprivatemediacompanyinswitzerland.theaimof thepartnership is toassumemarket leadership intheswissticketingsector.
in theliveentertainmentsegment,significantyear-on-year increases in revenueandearningswereachievedwithalargenumberofsuccessfulconcerteventsandtours,andbydevelopingnewandsuccessfultypesofevents.thissegmentachieveditsbesteverearningssincetheipoin2000.
inthe‘edutainment’field,additionalvenuesforthe‘tutankhamun’exhibitionwerefound,suchashamburgandbarcelona.
2009 2008[EUR million] [EUR million]
Revenue (before consolidation between segments)ticketing 152.5 120.1liveentertainment 318.7 288.0group 466.7 404.3
EBITticketing 49.0 34.6liveentertainment 22.2 15.7group 71.3 50.3
Cashflow 58.3 44.4numberofemployees(atendofyear) 1,143 1,111
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2.4 organisationandCorporatestruCture2.4.1 organisation
inadditiontomanagingitsownoperativebusiness,themostimportanttasksofCtsagasparentcompanyincludecorporatestrategy,riskmanagementandinsomerespectsthefinancingoftheCtsgroup.
accordingtothearticlesofincorporation,Ctsagasparentcompanyhasitsregisteredofficeinmunich;theadministrativeheadofficeisinbremen.
thegroupcompaniesareclassifiedintotwosegments,namelyticketingandliveentertainment.
theCtsgroupismanageddecentrallytoallowdecisionstobemadeascloseaspossibletothemarket.thismeansthatthesubsidiarieshaveconsiderablediscretioninallmarket-andcustomer-relatedactivities.themanagementandoversightstructuresaswellasthecompensationsystemarecompliantwithstatutoryrequirementsandaregearedtolong-termbusinesssuccess.forthisreason,thecompensationpackagesformembersofthemanagementboardarecomprisedofvari-ouscomponents,specificallythenon-performance-basedfixedsalaryandadditionalbenefitsintheformofpaymentsinkindandaperformance-basedbonus.thefixedsalaryandbenefitsarepaidmonthly.benefitsmustbetaxedasincomebytheindividualboardmember.thebonusespaidtoeachindividualmemberaredecideduponbythesupervisoryboardonthebasisofperformancecriteria.therearenocontractualcommitmentsregardingpaymentswhenboardmembershipends.noloansaregrantedtomanagementboardmembersortheirrelatives.referenceismadetopoint18inthenotestotheconsolidatedfinancialstatementsandtopoint4intheCorporategovernancereportregardingdetailsofindividualcompensationpackages.
forthe2009businessyear,themembersofthesupervisoryboardofCtsagreceivedemolu-mentstotallingeur80thousand,aswellasreimbursedexpensesofeur5thousand.
2.4.2 ChangesingroupstruCture
inadditiontoCtsagasparentcompany,theconsolidatedfinancialstatementsalsoincludeallrelevantsubsidiaries.
inthe2009reportingperiod,thefollowingchangesoccurredinthegroupofentitiesincludedinconsolidation.
tiCketing
inJanuary2009,eventimuklimited(hereinafter:eventimuk)wasestablishedwithitsregisteredofficeinlondon,uk.Ctsagholds100%ofthesharesinthiscompany.
infebruary 2009,eventimsportsConsultinggmbh,bremen,was renamedgetgo consultinggmbh,hamburg,anditsregisteredofficewasrelocatedtohamburg.thesechangeswereenteredinthecommercialregisteron22april2009.
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inmarch2009,Cardplusoy,helsinki,wasmergedwithlippupisteoy,tampere.themergerwasenteredinthefinnishregisterofcompanieson31march2009.
inapril2009,Zritelo.o.o.,moscowchangeditsnametoCtseventimruo.o.o.,moscow.
inapril2009,eventimCZs.r.o.(hereinafter:eventimCZ)wasestablishedwithitsregisteredofficeinprague,Czechrepublic.Ctsagholds100%ofthesharesinthiscompany.
indecember2009,afurther40.48%ofthesharesintempodomegmbh,hamburg,wereacqui-red.Ctsagnowholds60%ofthesharesinthiscompany.theobjectsoftempodomegmbh,hamburgaretodeveloponline-basedbusinessmodelsandtocreate,operateandmarketinternetplatformsforentertainmentproductsforbusinessandfinalcustomers.
indecember2009,100%of theshares in theshelf companyeinundsechzigste ‘lydia’vermö-gensverwaltungsgesellschaftmbh,hamburg,wereacquired.theregisteredofficeofthecompanyhasbeenrelocatedtobremen.
liveentertainment
intheliveentertainmentsegmenttherewerenochangesinthecompaniesincludedinconsoli-dation.
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thecorporatestructureasat31december2009isshownbelow:
gsoholdinggmbh,bremen
100.0%CTS EVENTIM AG, Munich
gsogesellschaftfürsoftwareentwicklungundorganisationmbh&Co.kg,bremen
gsoverwaltungsgesellschaftmbh,bremen
Ctseventimsportsgmbh,hamburg
tsCeventimticket&tourist-service-Centergmbh,bremen
ticketexpressgesellschaftzurherstellungundzumvertrieb
elektronischereintrittskartenmbh,vienna
Ö-ticket-südost,gesellschaftzurherstellungundzumvertriebelektronischer
eintrittskartenmbh,wienerneustadt
Ö-ticketnordwestgmbh,vienna
Öts,gesellschaftzumvertriebelektronischereintrittskartenmbh,stainz
Ö-ticket-nordosteintrittskartenvertriebgmbh,tulln
ticketexpresshungarykft.,budapest
getgoConsultinggmbh,hamburg(former:eventimsportsConsultinggmbh,
bremen)
Ctseventimsolutionsgmbh,bremen
eventimonlineholdinggmbh,bremen
Ctseventimschweizag,basle
Ctseventimruo.o.o.,moscow(former:Zritelo.o.o.,moscow)
lippupisteoy,tampere
Ctseventimswedenab,stockholm
eventimuklimited,london
eventimCZs.r.o.,prague
tempodomegmbh,hamburg
61.„lydia“vermögensverwaltungs-gesellschaftmbh,bremen
50.0%
100.0%
86.0%
100.0%
100.0%
100.0%
100.0%
51.0%
70.0%
100.0%
100.0%
100.0%
60.0%
100.0%
50.0%
100.0%
100.0%
66.7%
51.0%
77.5%
50.1%
71.0%
Ctseventimnederlandb.v.,amsterdam
texhungarykft.,budapest
71.0%
100.0%
rp-eventimgmbh,düsseldorf
51.0%
ticketones.p.a.,milan
49.8%
t.o.s.t.,ticketonesistemiteatralis.r.l.,milan
panischis.r.l.,milan
60.0%
100.0%
medusamusicgroupgmbh,bremen
eventimpopkurshamburggemeinnützigegmbh,hamburg
mareklieberbergkonzertagenturholdinggmbh,frankfurtammain
dirkbeckerentertainmentgmbh,Cologne
peterriegerkonzertagenturholding,Cologne
semmelconcertsveranstaltungsservicegmbh,bayreuth
argokonzertegmbh,würzburg
greensavegmbh,würzburg
fkpscorpiokonzertproduktionengmbh,hamburg
oCtopusgmbhagenturfürkommunikation,hamburg
Crpkonzertagenturgmbh,hamburg
palazzoproduktionengmbh,hamburg
palazzoproduktionengmbh,vienna
palazzoproductiesb.v.,amsterdam
palazzoproduktionenberlingmbh,hamburg
actentertainmentag,basle
greenfieldfestivalag,hünenberg
mareklieberbergkonzertagenturgmbh&Co.kg,frankfurtammain
mareklieberbergkonzertagenturverwaltungsgmbh,frankfurtammain
peterriegerkonzertagenturgmbh&Co.kg,Cologne
peterriegerverwaltungsgmbh,Cologne
lskonzertagenturgmbh,vienna
pgmpromotersgroupmunichkonzertagenturgmbh,munich
94.4%
51.0%
100,0%
73.0%10.0%
100.0%
10.0%
100.0%
100.0%
50.0%
25.2%
26.0%
50.2%
25.0%
37.4%
50.2%
50.2%
100.0%
50.2%
100.0%
100.0%
100.0%
100.0%
51.0%
20.0%
30.0%
37.4%
13.0%
70.0%100.0%
Ticketing Live Entertainment
show-factoryentertainmentgmbh,bregenz25.0%
51.0%
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2.5 Corporatemanagement
Companypolicyisfocusedonsustainedgrowthinthevalueofthecompany.inordertomanagethecompanyaccordingtovalue-basedprinciples,asystemofperformanceindicators isusedtoensureefficientuseoffunds.
thekeycriteriaforassessingthevaluegrowthoftheoperatingbusiness,foreachsegment,arethesustainedincreaseinebitda(earningsbeforeinterest,taxes,depreciationandamortization),ebit (earnings before interest and taxes) andeps (earnings per share).thegroup’s earningpower is reflected in its ability to improveebitda,ebitandepscontinuouslyby successfullyexpandingitsbusinessoperations.
asaresultofitssuccessfulstrategyofprofitablegrowth,thegroupachievedsignificantyear-on-yearimprovementsinitskeyperformanceindicatorsin2009.ateur71.280million,thegroupebitwaseur20.998millionhigherthattheequivalentfigureforthe2008businessyear(eur50.282million).
theaimoffinancialmanagementistoensuresolvencyandtomaintainfinancialbalancewithinthegroup.Cashreserves,intheformofoverdraftfacilitiesandcash,areheld.
theCtsgroupmanagesitscapitalwiththeaimofmaximisingprofitsforshareholdersbyoptimi-singthedebt-to-equityratio.thegroupcompaniesoperateunderthegoingconcernpremise.
thecapitalstructureoftheCtsgroupcomprisesdebt,cashandcashequivalentsandtheshare-holders´equityowedtoinvestorsinCtsag.thisshareholders´equityiscomposed,specifically,ofoutstandingshares,thecapitalreserveandbalancesheetprofit.
akeyvariableusedincapitalriskmanagementisthegearingratio(accordingtoifrs),i.e.theratiobetweennetconsolidateddebtandgroupshareholders´equity.riskconsiderationsmeanthattheaimmustbetohaveahealthynetdebt/equityratio.
attheendoftheyear,thenetdebt/equityratiowasasfollows:
31.12.2009 31.12.2008[EUR‘000] [EUR‘000]
debts*) 33,179 30,016Cashandcashequivalents -229,794 -213,072Net debts -196,615 -183,056shareholders´equity**) 149,864 125,437netdebtstoshareholders´equity -131% -146%
*) debtsaredefinedasnon-currentandcurrentfinancialliabilities**)includingnon-controllinginterest
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netdebt indicatestheamountofdebtsacompanyhasafterall liabilitieshavebeenredeemedwithcurrentassets.theCtsgrouphasmorecashandcashequivalentsthandebt.thenegativenetdebt/equityratiomeansthatthegroupisdefactofreeofdebt.theleverageofloancapitalhaspositiveeffectsonthereturnonequity.
2.6 internalaCCountingControlsystem
the internalaccountingcontrolsystem(iaCs)contains thepolicies,proceduresandmeasuresdesignedtoensurecorrectandreliablegroupaccounting,andissubjectedtocontinuousimprove-ment.theaimoftheriskmanagementsystemistoidentify,assess,controlanddocumentmaterialrisks,aswellrisksthatthreatenthecontinuedexistenceofthecompanyasagoingconcern.furtherdescriptionsoftheriskmanagementsystemareprovidedunderpoint8.1intheriskreport.
process-integratedandprocess-independentmonitoringmeasuresarethekeyelementsof theinternalmonitoringsystemwithintheCtsgroup.inadditiontomanualprocesscontrols–suchasthe‘foureyesprinciple’–automaticitcontrolsarealsoanessentialpartoftheprocess-integratedmeasures.theauditorofthegroup,andotherauditingbodiessuchasthefiscalauditor,areinvol-vedinprocess-independentauditingactivities inthecontrolenvironmentof theCtsgroup.themainprocess-independentmonitoringmeasuresforthegroupaccountingprocessaretheauditingoftheconsolidatedfinancialstatementsbytheindependentgroupauditorandtheauditingofthefinancialstatementssubmittedonformsbythecompaniesincludedinconsolidation.
inthestandalonefinancialstatementsofthesubsidiariesofCtsag,bookkeepingtransactionsaremainlyrecordedbythelocalbookkeepingsystems.inordertopreparetheconsolidatedfinan-cialstatementsoftheCtsgroup,thesubsidiariesaddtotheirrespectivefinancialstatementsbysubmittingfurtherdetailsinstandardisedreportingpackages.allsubmittedreportingpackagesarethen importedviaan interface into the ‘lucanetword’consolidationsystemtoproduce thecon-solidatedfinancialstatements.theconsolidationsoftwaredeployedbyCtsaghasbeenusedformanyyearsalready toprepare theconsolidated financialstatements.all theconsolidationstepsinvolvedinpreparingtheconsolidatedfinancialstatements–suchascapitalconsolidation,consoli-dationofdebts,ortheeliminationofintercompanyexpensesandprofitsandlosses,includingequitymeasurement–aregeneratedandfullydocumentedin‘lucanetword’.
themeasuresoftheinternalcontrolsystemaimedatreliabilityandcorrectnessofgroupaccount-ingensurethattransactionsarerecordedpromptlyandfully, inaccordancewithstatutoryregula-tionsandthearticlesofincorporation.theyalsoensurethatthephysicalinventoryisproperlycon-ducted,thatassetsandliabilitiesarecorrectlyrecognised,measuredandstatedintheconsolidatedfinancialstatements.
thecontrolactivities toensure thataccounting iscorrectandreliable include, forexample, theanalysisoffactsandtrendsbyconductingspecificanalysesofkeyfigures.organisationalsepara-tionofadministrative,executive,settlementandapprovalfunctions,andtheirperformancebydiffe-rentpersons,reducesthepossibilityoffraudulentactivities.organisationalmeasuresareaimedatpromptlyandproperlyrecording,inthegroupaccountingsystem,anyrestructuringatenterpriseorgrouplevel,andanychangesintheoperationsofindividualbusinessunits.
theaccountingrulesappliedintheCtsgroup,includingtheaccountingruleslaiddownintheinternationalfinancialreportingstandards(ifrs),stipulatethestandardaccountingpoliciesforthegermanandforeigncompaniesincludedintheconsolidatedfinancialstatementsoftheCts
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group.theCtsaccountingrulesalsostipulatespecificformalrequirementstobemetbythecon-solidated financialstatements. inaddition todefining thescopeofconsolidation, theaccountingrulesalsocontaindetaileddefinitionsofthespecificelementsinthereportingpackagestobepro-ducedbythegroupcompanies.theseformalrequirementsstipulate,interalia,themandatoryuseofastandardisedandcompletesetofforms.
Centralisedconductingof impairment tests for thespecificcash-generatingunits (Cgus), fromthegroupperspective,ensuresthatcommonandstandardisedmeasurementcriteriaareapplied.thecashgeneratingunitscorrespondtothegroupreportingentitites(segments),i.e.ticketingandliveentertainment.atgrouplevel,regulationalsoextends,forexample,tocentraliseddefinitionoftheparameterstobeappliedwhenmeasuringpensionprovisions.measuresatgrouplevelalsoincludetheprocessingandaggregationofadditionaldatainordertoprepareexternalinformationinthenotessectionandthecombinedmanagementreport(includingsignificanteventsafter thebalancesheetdate).
bymeansoftheorganisational,controlandmonitoringsystemsstipulatedwithintheCtsgroup,theinternalaccountingcontrolandriskmanagementsystemmakesitpossibletorecord,processandanalysecompanyinformationandtopresentitproperlyinthegroupaccountingsystem.how-ever,thenatureofdiscretionarypersonaldecisions,errorsduringchecks,criminalactsandothercircumstancesmeansthattheycannotbeexcludedentirely,andwillresultinlimitationsintheeffec-tivenessandreliabilityoftheinternalcontrolandriskmanagementsystem,withtheconsequencethatevengroup-wideapplicationofthedeployedsystemscannotguaranteeabsolutesecuritywithregardtocorrect,completeandpromptrecordingoffactsinthegroupaccountingsystem.
2.7 softwaredevelopment
inordertobroadentherangeofticketing-relatedservices,totapintoadditionalsourcesofrevenueandtocontinuemeetingtherequirementsofeventpromoters,boxofficesandinternetcustomers,theticketsalessystemisbeingconstantly improvedandexpanded.allsoftwaredevelopment ispredominantlycarriedoutbydepartmentswithinthegroup.inthefieldofticketingandsoftwaredevelopment, thegrouphasamassedawealth of expertise. in order to tap into newmarkets,thegroup isplanningfurtheradvancements innewtechnologies,suchaschip ticketsormobileticketing.softwaredevelopmentcostsarerecognisedasgroupassetsiftheymeetthecriteriaspe-cifiedinias38.Costsnoteligibleforcapitalisationaremainlystatedascostofsales.
noexpenseneedstobestatedunderresearchanddevelopment.
3. earningsperformanCeandfinanCialposition3.1 effeCtsofthefinanCialCrisisontheearningsperformanCe andfinanCialpositionoftheCtsgroupandofCtsag
inthe2009financialyear,nosignificantnegativeimpactsofthefinancialcrisisonearningsperfor-manceandfinancialpositionwereidentifiedeitherintheCtsgrouporinCtsag.
despite thedifficulties facing theeconomy,consumerdemandforeventswasunbrokenduringthereportingyear.duetothelowrequirementforexternalborrowing,changesinbanks’ lendingpracticeshavenothadanyeffectsonthegroup.sincetheCtsgroupandCtsagpursueavery
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short-termandthusconservativestrategyformonetaryinvestments,therewasadeclineininterestincomeduetolowerinterestoncashandbankbalances.
3.2 earningsperformanCe3.2.1 groupearningsperformanCe(ifrs)
01.01.2009 - 31.12.2009
01.01.2008 - 31.12.2008
Change
[EUR‘000] [EUR‘000] [EUR‘000] [in %]
revenue 466,698 404,348 62,350 15.4Costofsales -342,261 -306,900 -35,361 11.5Gross profit 124,437 97,448 26,989 27.7
sellingexpenses -34,413 -29,915 -4,498 15.0generaladministrativeexpenses -19,249 -17,146 -2,103 12.3otheroperatingincome 8,337 6,941 1,396 20.1otheroperatingexpenses -7,832 -7,046 -786 11.2Operating profit (EBIT) 71,280 50,282 20,998 41.8
financialresult 216 3,096 -2,880 -93.0Profit from ordinary business activities (EBT) 71,496 53,378 18,118 33.9
taxes -23,307 -17,835 -5,472 30.7
Net income before non-controlling interest 48,189 35,543 12,646 35.6
non-controllinginterest -8,246 -6,336 -1,910 30.1
Net income after non-controlling interest 39,943 29,207 10,736 36.8
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revenue
grouprevenuegrowthoverthepastsevenyearsisshowninthefollowingtable:
expendituresarestatedintheearningsstatementaccordingtofunction.theincomestatementsofthesubsidiariesarefirstlypreparedusingthetypeofexpendituremethod,withcoststhenbeingreassignedtothefunctionalexpensesofthecostofsalesmethodusingconversioncodesfortherespectivecostelements,forintegrationinthegroupfinancialstatementsaccordingtoifrs.usingtheconversioncode,materialexpenses,personnelexpenses,depreciation,amortizationandotheroperatingexpensesoftheindividualcompaniesaccordingtothecostofexpendituremethodareassignedtothecostofsales,sellingexpenses,generaladministrativeexpensesandotheropera-tingexpenditures.
grouprevenueroseinthereportingperiodbyeur62.350millionor15.4%fromeur404.348mil-liontoeur466.698million.revenue(beforeconsolidationbetweensegments)breaksdownintoeur152.493millionintheticketingsegment(prioryear:eur120.130million)andeur318.726millionintheliveentertainmentsegment(prioryear:287.994million).
theticketingsegmentcontinueditsgrowthinthe2009businessyear.revenueinthissegmentrosefromeur120.130milliontoeur152.493million(+26.9%).inadditiontofast-growinginternetsales,thisencouragingtrendisalsoattributabletointernationalexpansioninconnectionwiththepartnershipwithlivenationthatwassuccessfullylaunchedatthebeginningoftheyear.inthe2009reportingperiod,foreignsubsidiariesgenerateda39%shareoftotalrevenue(prioryear:31%).
inthe2009businessyear,around303millionmusicandeventfans(prioryear:232million)visitedthegroup’s internet portals, especiallywww.eventim.deandwww.getgo.de, buyingaround13.4millionticketsintotal(prioryear:9.6million).thisequatestoayear-on-yearincreaseininternetticketsalesofaround40%.
revenue in theliveentertainmentsegmentwas increased in the2009reportingyearbyeur30.732milliontoeur318.726million(+10.7%)asaresultofsuccessfultours,ahighfrequencyofeventsandthecreationofnewtypesofevents.theconcerttoursbytinaturner,pink,pur,depechemodeandu2hadpositiveeffectsonrevenueinthissegment.
384,375404,348
466,698
in EUR‘000
2009200820072006200520042003
342,927256,179
222,746224,382
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oftheeur466.698million(prioryear:eur404.348million)ingrouprevenueachievedinthereportingyear,eur364.541million(prioryear:eur325.686million)wasgeneratedingermany,eur47.691million(prioryear:eur39.163million)inaustria,eur20.335million(prioryear:eur16.517million)initalyandeur34.131million(prioryear:eur22.982million)inothercountries.
grossprofit
asignificantlyimprovedgrossprofitofeur124.437million(prioryear:eur97.448million)wasgenerated in the reporting year.the15.4% increase ingroup revenue isoffset bya lowerpro-portionalincreaseincostofsales(11.5%).
thegrossmarginachievedinthegroupasawholeandinthesegmentsdevelopedasfollows:
in the liveentertainment segment, higher average profit contributions fromevents led to animprovedprofitmargin,andasa resultof this increaseconsolidatedgrossmargin increasedaswell.thegrossmarginintheticketingsegmentshowedayear-on-yeardecreasedue,amongotherfactors,toenlargementofthegroupofentitiesincludedinconsolidationasaresultofinternationalexpansion,especiallyinthecourseofimplementingthelivenationproject.
sellingexpenses
theeur4.498millionincreaseinsellingexpensesismainlyduetohigherpersonnelexpenses(eur+2.307million),depreciationandamortization(eur+774thousand)andlossesonreceivab-lesandallowancesfordoubtfulaccounts(eur+404thousand).asapercentageofrevenue,sellingexpensesremainedstableat7.4%.referenceismadetothe‘personnel’sectiononpage29fforthedevelopmentofpersonnelcosts.
generaladministrativeexpenses
theeur2.103million increase ingeneraladministrativeexpenses ismainlyattributable to in-creased personnel expenses (eur+1.438million), depreciation and amortization (eur+355thousand)andcostsforleviesandinsurances(eur+228thousand).asapercentageofrevenue,generaladministrativeexpenseswerereducedslightlyfrom4.2%to4.1%.referenceismadetothe‘personnel’sectiononpage29fforthedevelopmentofpersonnelcosts.
2009 2008[in %] [in %]
group 26.7 24.1ticketing 55.0 55.9liveentertainment 12.7 10.6
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otheroperatinginCome
otheroperatingincomeincreasedyear-on-yearbyeur1.396million,mainlyduetohighermarke-tingandmagazineincome(eur+1.223million),revenuefrominsurancecompensation(eur589thousand)andotherincome(eur+1.460million).theseincreasesareoffsetbyafallinincomemainlyfromwritten-offliabilitiesandwritten-offreceivables(eur-1.820million).
otheroperatingexpenses
theincreaseofeur786thousandinotheroperatingexpensesismainlyattributabletoexpensesfor third-party services (eur +714 thousand) and to other expenses (eur +611 thousand).Currencytranslationexpensesdecreasedbyeur435thousand.
operatingprofit(ebit)
groupebitincreasedsignificantlyby41.8%fromeur50.282milliontoeur71.280million.theebitmarginwas15.3%(prioryear:12.4%).thepercentageofgroupebitgeneratedbyforeigncompaniesroseyear-on-yearfrom11%to16%.
in theticketing segment, theebit figure rose significantly byeur14.451million fromeur34.590million toeur49.041million (+41.8%).amajor contribution to earningswasmadebythefurtherincreaseinticketvolumessoldthroughtheinternetplatformsoftheCtsgroup,bothinexistingandinnewmarkets.thepercentageofticketingsegmentebitgeneratedbyforeigncompaniesroseyear-on-yearfrom12%to22%.theebitmarginimprovedfrom28.8%to32.2%.
theliveentertaimentsegmentachieveditsbest-everprofitsincetheipoin2000.theebitfigureincreasedsignificantlyby41.6%fromeur15.695milliontoeur22.219million.theebitmarginwas7.0%,comparedto5.5%in2008.growthinthissegmentwasdrivenbymajortoursthatwerenearlyorcompletelysoldtocapacity,forexamplethetinaturnertourinthefirstquarterof2009.
finanCialresult
thefinancialresult,ateur216thousand(prioryear:eur3.096million)includeseur8thousandin income fromparticipations (prior year:eur44 thousand),eur140 thousand income frominvestmentsinassociatedcompanies(prioryear:eur172thousand),eur2.016millioninfinan-cialincome(prioryear:eur4.673million)andeur1.948millioninfinancialexpenses(prioryear:eur1.793million).
asexpected,financialincomedecreasedbyeur2.657millionduemainlytolowerinterestrates.
distributiontonon-controllinginterests(eur93thousand;prioryear:eur93thousand),andthechangeinthepresentvalueofpurchasepriceobligationsinrespectofputoptions(eur1.017mil-lion;prioryear:eur904thousand),werestatedasfinancialexpensesinaccordancewithias32.
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taxes
taxexpensesincreasedinfiscal2009byeur5.472milliontoeur23.307million.taxexpensescomprisedeferred taxes (eur559 thousand; prior year:eur1.577million) and theactual taxexpensesoftheconsolidatedstandalonecompanies(eur22.748million;prioryear:eur16.258million).deferredtaxincomeandtaxexpenseswereformedonthebasisofexistinglosscarryfor-wardsandfortemporarydifferences,andset-offagainsttaxexpenses.fiscal losscarryforwardsforwhichdeferredtaxassetswereformedinthepastarereducedbypositivenet incomeofthestandalonecompaniesandleadtodeferredtaxexpenses.
thetaxrateforthegroupasawholeshowstherelationshipbetweentaxes(includingdeferredtaxes)andtheprofitsfromordinarybusinessactivities.thetaxrateinfiscal2009was32.6%(prioryear:33.4%).
non-Controllinginterest
according to ias32 rules,non-controlling interestneedsnotbe recognised incompanieswithcorrespondingputoptions.
thenon-controllingintereststatedintheincomestatementincreasedbyeur1.910millionfromeur6.336milliontoeur8.246million.theincreaseprimarilyresultsfromstrongercontributionstoearningsintheliveentertainmentsegment.
netinComeafternon-Controllinginterest
net incomeafternon-controlling interest increasedbyeur10.736million (+36.8%) fromeur29.207milliontoeur39.943million.earningspershare(eps)forthe2009businessyearwereeur1.66,upfromeur1.22fortheprioryear.
thenetincomefortheyearofCtsagaslistedstandalonecompany,inaccordancewithgermanCommercialCode´hgb´,waseur27.874million(prioryear:eur23.199million),andwasmainlyadjusted by goodwill amortisation eliminated under ifrs.thedistributable earnings per shareforCtsagwereeur1.16inthe2009financialyear(prioryear:eur0.97).
personnel
duetolargerworkforces,personnelexpensesincreasedyear-on-yearbyeur5.505millionfromeur39.484milliontoeur44.989million.thisincreaseinpersonnelexpensesbreaksdownintoeur3.687millionintheticketingsegmentandeur1.818millionintheliveentertainmentseg-ment.theincreasedpersonnelexpensesintheticketingsegmentweretheresultofinternationalexpansion, inparticular.the increase inpersonnelexpenses in theliveentertainmentsegmentresultedpartlyfromtheexpansionofsuccessfulnewtypesofeventandfromhigheradditionstopensionprovisionsduetoalowerdiscountrateappliedinactuarialcalculations.
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breakdownofemployeesbysegment(year-endfigures):
attheendofthebusinessyear,thegrouphadatotalof1,143employees(prioryear:1,111),ofwhom652wereemployedingermany(prioryear:654),184inaustria(prioryear:165),69initaly(prioryear:98)and238inothercountries(prioryear:194).duetothegreaternumberofcompaniesincludedinconsolidation,thesizeofthegroupworkforceasat31december2009was13morethanayearbefore.
onaverageduring2009,thegrouphad45moreemployeesthaninthe2008businessyear.
developmentofthetiCketingandliveentertainmentsegments
tiCketing
ofthetotalrevenueinthissegment,eur84.645million(prioryear:eur61.939million)weregeneratedviatheinternet,equivalenttointernetrevenuegrowthof37%.revenuegeneratedviatheinternetaccountedfor56%oftotalticketingsegmentrevenuesinthe2009businessyear(prioryear:52%).
2009 2008[Qty.] [Qty.]
ticketing 691 671liveentertainment 452 440Total 1,143 1,111
Ticketing 2005 2006 2007 2008 2009[EUR million] [EUR million] [EUR million] [EUR million] [EUR million]
revenue 64.3 99.3 87.4 120.1 152.5grossprofit 39.8 62.8 50.1 67.1 83.9grossmargin 61.9% 63.2% 57.3% 55.9% 55.0%ebit 19.3 31.1 26.6 34.6 49.0ebitda 23.6 36.8 32.0 40.1 55.4
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liveentertainment
intheliveentertainmentsegment,thebest-everresultsincetheipoin2000wasachieved.sold-to-capacitytoursandtheexpansionofsuccessfulnewtypesofeventledinthebusinessyear2009toanimprovementinearningsandmargin.
3.2.2 resultsofoperationsofCtsag(hgb)
Live Entertainment 2005 2006 2007 2008 2009[EUR million] [EUR million] [EUR million] [EUR million] [EUR million]
revenue 194.6 247.2 301.3 288.0 318.7grossprofit 23.6 26.2 33.4 30.4 40.5grossmargin 12.1% 10.6% 11.1% 10.6% 12.7%ebit 13.5 14.6 20.5 15.7 22.2ebitda 13.9 15.2 21.8 17.7 24.5
01.01.2009 - 31.12.2009
01.01.2008 - 31.12.2008
Change
[EUR‘000] [EUR‘000] [EUR‘000] [in %]
revenue 85,077 71,862 13,215 18.4Costofsales -36,942 -30,503 -6,439 21.1Gross profit 48,135 41,359 6,776 16.4
sellingexpenses -10,934 -11,056 122 -1.1generaladministrativeexpenses -5,338 -4,625 -713 15.4otheroperatingincome 3,991 2,821 1,170 41.5otheroperatingexpenses -2,826 -2,794 -32 1.1Operating profit (EBIT) 33,028 25,705 7,323 28.5
financialresult 6,372 6,812 -440 -6.5Profit from ordinary business activities (EBT) 39,400 32,517 6,883 21.2
taxes -11,526 -9,318 -2,208 23.7
Net income for the year 27,874 23,199 4,675 20.2
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in the2009businessyear,Ctsag revenue increasedmarkedlybyeur13.215million, fromeur71.862milliontoeur85.077million.fast-growinginternetsalesandthepartnershipwithlivenationinnorthamericawereamajorfactorinthispositiverevenuegrowth.
thegrossmarginis56.6%(prioryear:57.6%).marginswerereduced,interalia,byexpenditureforimplementingthepartnershipwithlivenationineurope.
sellingexpensesdeclinedslightlybyeur122thousandfromeur11.056milliontoeur10.934million.asapercentageofrevenue,sellingexpensesfellfrom15.4%in2008to12.9%in2009.
theeur713thousandincreaseingeneraladministrativeexpensesinthereportingyear,toeur5.338million,ismainlyattributabletohigherpersonnelexpensesandhighercostsforleviesandinsurances.asapercentageofrevenue,administrativeexpensesfellfrom6.4%in2008to6.3%in2009.
theeur1.170millionincreaseinotheroperatingincome,toeur3.991million,resultedmainlyfromhigher income from the reversal of provisions (eur+248 thousand), from the reversal ofallowancesfordoubtfulaccounts(eur+182thousand),frominsurancecompensation(eur+157thousand)andfromoperatingexpensespassedontothirdparties(eur+351thousand).
theeur32thousandincreaseinotheroperatingexpensestoeur2.826millionresults,interalia,fromhigherexpensesduetoexchangedifferencesandexpensesforoperatingexpensespassedontothirdparties.theseareoffsetbylowerexpensesrelatingtootherperiods.
earnings before interest and taxes (ebit) amounts to eur 33.028 million (previous year:eur25.705million).theebitmarginrosefrom35.8%to38.8%.
the financial result fell byeur440 thousand fromeur6.812million in theprevious year toeur6.372million.thefinancialresultincludeseur5.513millioninincomeintheformofdividendsandtransferredprofitsfromparticipations(prioryear:eur5.100million),eur1.096millionininte-restincome(prioryear:eur2.155million)andinterestexpensesofeur237thousand(prioryear:eur442thousand).interestexpenserelatestolong-termloansandtootherfinancingexpenses.asexpected, interest incomedeclinedasa resultof lower interest ratesand lower incomefromsecurities.
duetohigherresultsofoperations(ebt),taxexpenserosebyeur2.208millionfromeur9.318milliontoeur11.526million.
attheendofthe2009financialyear,Ctsaghad139employeesonitspayroll(prioryear:142).personnelexpensesincreasedbyeur1.241millionfromeur8.187milliontoeur9.428million.thisriseinpersonnelexpensesforanalmostunchangedworkforcesizeresults,interalia,fromtherelocationofadepartmentwithlowsalaries,withsimultaneouscreationandexpansionofdepart-mentswithhighersalarylevels,whosemaintaskwasfurtherinternationalisation.
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3.3 finanCialposition3.3.1 groupfinanCialposition(ifrs)
*reclassificationofreceivablesrelatingtoticketmoniesfrompre-salesintheticketingsegment(seeitem2inthenotestotheconsolidatedfinancialstatements)
31.12.2009 31.12.2008 Change
[EUR‘000] [in %] [EUR‘000] [in %] [EUR‘000]
Current assetsCashandcashequivalents 229,794 49,8 213,072 52,6 16,722tradereceivables 19,799 4.3 18,020* 4.4 1,779receivablesfromaffiliatedcompanies 3,566 0.8 1,711 0.4 1,855inventories 15,571 3.4 12,733 3.1 2,838otherassets 56,527 12.1 31,008* 7.7 25,519Total current assets 325,257 70.4 276,544 68.2 48,713
Non-current assetsfixedassets 33,582 7.3 33,586 8.3 -4goodwill 96,929 21.0 89,918 22.2 7,011tradereceivables 1,268 0.3 1,330 0.4 -62receivablesfromaffiliatedcompanies 1,186 0.2 1,716 0.4 -530otherassets 2,303 0.5 64 0.0 2,239deferredtaxassets 1,360 0.3 1,929 0.5 -569Total non-current assets 136,628 29.6 128,543 31.8 8,085
Total assets 461,885 100.0 405,087 100.0 56,798
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31.12.2009 31.12.2008 Change
[EUR‘000] [in %] [EUR‘000] [in %] [EUR‘000]
Current liabilitiesshort-termfinancialliabilitiesandcurrentportionoflong-termfinancialliabilities
25,218
5.5
5,026
1.2
20,192
tradepayables 37,120 8.0 33,126 8.1 3,994advancepaymentsreceived 101,766 22.0 84,086 20.8 17,680provisions 11,409 2.5 8,425 2.1 2,984otherliabilities 125,039 27.1 119,874 29.6 5,165Total current liabilities 300,552 65.1 250,537 61.8 50,015
Non-current liabilitiesmedium-andlong-termfinancialliabilities 7,961 1.7 24,990 6.2 -17,029otherliabilities 12 0.0 1,052 0.2 -1,040pensionprovisions 2,716 0.6 2,247 0.6 469deferredtaxliabilities 780 0.2 824 0.2 -44Total non-current liabilities 11,469 2.5 29,113 7.2 -17,644
Shareholders' equitysharecapital 24,000 5.2 24,000 5.9 0Capitalreserve 23,311 5.0 23,311 5.8 0earningsreserve 278 0.1 119 0.0 159balancesheetprofit 97,591 21.1 72,445 17.9 25,146treasurystock -52 0.0 -52 0.0 0non-controllinginterest 4,946 1.1 5,795 1.4 -849othercomprehensiveincome 52 0.0 0 0.0 52Currencydifferences -262 -0.1 -181 0.0 -81Total shareholders' equity 149,864 32.4 125,437 31.0 24,427
Total shareholders‘ equity and liabilities 461,885 100.0 405,087 100.0 56,798
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asat31december2009,thebalanceofcurrentandnon-currentassetsandliabilitiescomparedto31december2008hadimprovedbyeur24.427million,thushavingapositiveeffectonthefinan-cialpositionofthegroup.equityroseaccordinglyfromeur125.437milliontoeur149.864million.
Currentassetsincreasedbyeur48.713milliontoeur325.257million.thisisattributableabovealltoaeur16.722millionincreaseincashandcashequivalentstoeur229.794millionandtoanincreaseofeur25.519inotherassetstoeur56.527million.
Cashandcashequivalents,ateur229.794million(prioryear:eur213.072million)includeticketmoniesfrompre-salesforeventsin2010(ticketmoniesnotyetinvoicedintheticketingsegment),whicharereportedunderother liabilitiesateur94.249million(prioryear:eur92.619million).otherassetsalsoincludereceivablesrelatingtoticketmoniesfrompre-salesintheticketingseg-ment(eur27.541million;prioryear:eur15.668million).takingliabilitiestobanks,ateur5.262million(prioryear:eur5.271million),intoaccount,theresultantnetcashamountstoeur157.824million(prioryear:eur130.850million).
theincreaseinotherassetsismainlyattributabletohigherreceivablesinrespectofticketmonies(eur+11.873million),tocurrentloans(eur+4.448million),toreceivablesinrespectofsecuritydeposits(eur+3.984million)andtosecurities(eur+2.016million).
non-currentassetsincreasedbyeur8.085milliontoeur136.628million.significantchangesoccurredingoodwillandinotherassets.
the change in goodwill (eur7.011million)mainly results fromanacquisition of shares in asubsidiaryintheliveentertainmentsegmentthatwasalreadyincludedinconsolidation.financialadditionoccurredinthe2009financialyear,whereaslegaltransferoftheshareswaseffectedinJanuary2010.anotheradditiontogoodwillresultsfromremeasurement,asattheclosingdate,ofputoptionsintheticketingsegment,toberecognisedinaccordancewithias32.goodwillfromputoptionstoberecognisedinaccordancewithias32decreasedasaresultoffixingaspecificpurchasepricewhenofferingsharesinasubsidiaryalreadyconsolidatedintheticketingsegment,andtheacceptanceofthosesharesindecember2009.legaltransferoftheshareswillbeeffectedatthebeginningof2010.investmentswithinthegroupwerefinancedfromfreecashflow.
theeur2.239millionincreaseinothernon-currentassetsismainlytheresultofreceivablesfornewtypesofevents.
assetstiedupforthelongtermaccountfor29.6%ofthebalancesheettotal(prioryear:31.8%)andisfinancedentirelywithshareholders´equity.
Current liabilities increasedbyeur50.015million.Changesmainlyaroseinrespectofcurrentfinancialliabilitiesandthecurrentportionofnon-currentfinancialliabilities(eur+20.192million),andinrespectofadvancepaymentsreceived(eur+17.680million).theincreaseincurrentfinan-cial liabilitiesand in thecurrentportionofnon-current financial liabilitiesmainly results from thereclassificationofliabilitiesfromtherecognitionofputoptionsfromnon-currenttocurrentliabilities.theincreaseinadvancepaymentsreceivedresultsmainlyfromticketmoniesreceivedinthefourthquarterfrompre-salesofmajortours(interaliau2ingermanyandaC/dCinaustria).advancepay-mentsreceivedbytheliveentertainmentsegmentaretransferredtorevenuewhentherespectiveeventshavetakenplace.
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Combinedmanagementreport
non-currentliabilitieswerereducedbyeur17.644million,mainlyduetoadecreaseinmedium-andlong-termfinancialliabilities(eur-17.029million).thischangearisesprimarilyfromthereclas-sificationofliabilitiesfromtherecognitionofputoptions(eur-16.675million)ascurrentliabilities.
shareholders´equityrosebyeur24.427milliontoeur149.864million.this increasemainlyresultsfromtheeur25.146millionchangeinbalancesheetprofit.thelatterincreasedduetotheeur39.943million innet incomeafternon-controlling interest in2009,offsetprimarilybyadivi-dendpaymentofeur14.639million.non-controllinginterestdecreasedonlyslightlybyeur849thousandtoeur4.946million.thedecreaseinnon-controllinginterestresultsfromadistributionofdividendstoexternalshareholdersinthe2009financialyear(eur-8.111million)andtheeffectsoftheaquisitionofsharesinasubsidiaryintheliveentertainmentsegmentthatwasalreadyinclu-dedinconsolidation(eur-984thousand)offsetfromsharesinnetincomefor2009(eur+8.246million).
in accordancewith ias32, theCtsgrouphasapplied the standard to equity instruments ofnon-controllingshareholdersholdingputoptions.theputoptionsheldbycertainnon-controllingshareholdersarethereforedisclosedunderfinancialliabilitiesandnotasnon-controllinginterest.
theequity ratio (equityminusnon-controlling interest, dividedby thebalancesheet total)wasincreasedfrom29.5%to31.4%,mainlyduetotheincreaseinbalancesheetprofit.
thereturnonequity(netincomeafternon-controllinginterestdividedbyequity)is27.6%,compa-redto24.4%in2008.
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3.3.2 finanCialpositionofCtsag(hgb)
*reclassificationofreceivablesrelatingtoticketmoniesfrompre-sales(seeitem2.1inthenotestothefinancialstatementsofCtsag)
31.12.2009 31.12.2008 Change
[EUR‘000] [in %] [EUR‘000] [in %] [EUR‘000]
Current assetsCashandcashequivalents 86,732 42.7 88,573 47.7 -1,841treasurystock 63 0.0 52 0.0 11tradereceivables 5,069 2.5 4,551* 2.5 518receivablesfromaffiliatedcompanies 18,124 8.9 8,899 4.8 9,225inventories 728 0.4 1,270 0.7 -542prepaidexpenses,accruedincomeandotherassets 15,394 7.6 7,860* 4.2 7,534Total current assets 126,110 62.1 111,205 59.9 14,905
Non-current assetsfixedassets 73,243 36.0 71,693 38.5 1,550goodwill 1,472 0.7 1,799 1.0 -327receivablesfromaffiliatedcompanies 1,146 0.6 1,107 0.6 39otherassets 1,234 0.6 0 0.0 1,234Total non-current assets 77,095 37.9 74,599 40.1 2,496
Total assets 203,205 100.0 185,804 100.0 17,401
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Comparedtotheprioryear,thebalancesheettotalofCtsagincreasedbyeur17.401million(+9.4%)toeur203.205million.ontheassetsside,themainchangeswereincreasesinreceiv-ablesfromaffiliatedcompanies,inprepaidexpenses,accruedincomeandotherassets.theincre-aseontheequityandliabilitiessiderelatedprimarilytoaccruedexpenses,deferredincomeandotherliabilitiesandtoshareholders’equity.
Currentassetsincreasedbyeur14.905million(+13.4%)toeur126.110million.thechangesmainlypertain to theeur9.225million increase inreceivablesfromaffiliatedcompaniesandtotheeur7.534millionincreaseinprepaidexpenses,accruedincomeandotherassets.theseareoffsetbyaeur1.841milliondecline incashandcashequivalents.theincreaseinreceivablesfromaffiliatedcompaniesmainlyresultsfromhighertradereceivables(eur+2.872million),fromreceivables for loans (eur+2.948million), from receivableswith newly established companies(eur+1.035million),andfromreceivablesfromdistributionsofprofitsforthe2009financialyear(eur+1.737million).theincreaseinprepaidexpenses,accruedincomeandotherassetsresultsprimarilyfromhigherreceivablesrelatingtoticketmoniesfrompre-sales(eur+2.922million)andfromreceivablesrelatingtonewtypesofevent(eur+4.288million).
31.12.2009 31.12.2008 Change
[EUR‘000] [in %] [EUR‘000] [in %] [EUR‘000]
Current liabilitiesshort-termfinancialliabilitiesandcurrentportionoflong-termfinancialliabilities
500
0.3
500
0.3
0
tradepayables 5,323 2.6 5,455 2.9 -132provisions 8,759 4.3 9,671 5.2 -912accruedexpenses,deferredincomeandotherliabilities 73,532 36.2 66,771 35.9 6,761Total current liabilities 88,114 43.4 82,397 44.3 5,717
Non-current liabilitiesmedium-andlong-termfinancialliabilities 4,000 2.0 4,500 2.4 -500otherliabilities 0 0.0 1,051 0.6 -1,051Total non-current liabilities 4,000 2.0 5,551 3.0 -1,551
Shareholders' equitysharecapital 24,000 11.8 24,000 12.9 0Capitalreserve 23,821 11.7 23,821 12.8 0treasurystockreserve 63 0.0 52 0.0 11balancesheetprofit 63,207 31.1 49,983 27.0 13,224Total shareholders' equity 111,091 54.6 97,856 52.7 13,235
Total shareholders‘ equity and liabilities 203,205 100.0 185,804 100.0 17,401
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Cashandcashequivalentsincludeticketmoniesfrompre-salesforeventsin2010(ticketsnotyetinvoicedintheticketingsegment),whicharereportedunderotherliabilitiesateur68.119million(prior year:eur60.951million).otherassetsalso include receivables relating to ticketmoniesfrompre-sales (eur9.296million; prior year:eur6.374million).taking liabilities tobanks, ateur4.500million(prioryear:eur5.000million),intoaccount,theresultantnetcashamountstoeur23.409million(prioryear:eur28.996million).
non-currentassetsincreasedbyeur2.496million(+3.3%),ofwhicheur1.550millionarefixedassets.additionstofixedassets,ateur4.878million,areoffsetbyeur3.173millionindepre-ciationandamortizationandeur155thousandindisposals.ofthetotaladditionstofixedassets,eur2.706millionrelatetoadditionstointangibleassets,mainlyresultingfromfurtherdevelopmentoftheglobalticketingsystem(eur2.335million).investmentsinoperatingandofficeequipmentamountedtoeur1.586million,ofwhicheur986thousandwereforithardwareforoperatingtheglobalticketingsystemandeur277thousandforithardwarefortheboxofficesconnectedtotheCtsticketingsoftwaresystem.thesecashoutflowsforinvestmentsinfixedassetswerefinancedfrom freecash flow.theeur1.234million increase inothernon-currentassets is the resultofreceivablesfornewtypesofevents.
Currentliabilitiesrosebyeur5.717million,mainlyduetoanincreaseinotherliabilitiesrelatingtoticketmoniesnotyetinvoiced(eur+7.168million).thisisoffsetbyadecreaseintheresidualothercurrentliabilities(eur-1.863million).theincreaseinticketmoniesnotyetinvoicedis,interalia,duetothepre-salesthatwerecommencedindecember2009forsomemajoreventsandtours,butforwhichtheticketmonieswillnotbepaidoutuntil2010.
non-current liabilities decreasedbyeur1.551million.this decrease results from the reclas-sificationofmedium-and long-termfinancialobligationsascurrent financial liabilities(eur-500thousand)andfromreducedpaymentobligationsrelatingtotheacquisitionofdistributionrights,onaccountofscheduledrepayment(eur-1.051million).
shareholders´equityrosebyeur13.235milliontoeur111.091million.thisincreaseresultedfromthenetincomefortheyear,ateur27.874million,offsetbytheeur14.639milliondividendforthe2008financialyearthatwasadoptedattheannualshareholders’meetingin2009.
theequityratioimproved,from52.7%to54.6%,mainlyduetotheincreaseinbalancesheetprofit.
thereturnonequity(netincomefortheyeardividedbyshareholders´equity)is25.1%,comparedto23.7%in2008.
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Combinedmanagementreport
theamountofcashandcashequivalentsshowninthecashflowstatementisequaltothecashandcashequivalentsinthebalancesheet.
Cashflowfromoperatingactivitiesisderivedindirectlyfromtheconsolidatednetincomefortheyear,whereascashflowfrominvestingandfinancingactivities iscalculatedon thebasisofpay-ments.
Cashflowfromoperatingactivitiesfellyear-on-yearbyeur50.726millionfromeur105.778mil-liontoeur55.052million.theeur50.726milliondecreasemainlyresultsfromtheeur-40.203millionchange in liabilitiesand theeur-28.682millionchange in receivablesandotherassets.strongergroupnetincomeafternon-controllinginterest(eur+10.736million)hadpositiveimpactsoncashflowfromoperatingactivities.
theeur40.203milliondecreaseincashflowfromliabilitiesisattributable, inparticular,totheeur13.660milliondecreaseinadvancepaymentsreceivedbytheliveentertainmentsegment,andtotheeur30.483milliondecreaseinliabilitiesaccruingfromticketmoniesthathavenotyetbeeninvoiced.
asatthebalancesheetdateof31december2008,theliabilitiesfromadvancepaymentsreceivedintheliveentertainmentsegment increasedtoanabove-averageextentduetoticketpre-salesforamajortourin2009.duetothislargeamountofadvancepaymentsreceivedasatthe2008balancesheetdate, cash flow in the2008 financial year increasedbyeur+31.340million.asatthebalancesheetdateof31december2009,theadvancepaymentsreceivedhadincreased(eur+17.680million),buttheincreasewaslessthaninthe2008financialyear,withtheresultthatanegativecashfloweffectofeur-13.660millionresultsfromchangesintheadvancepaymentsreceived.
3.4 Cashflow3.4.1 groupCashflow(ifrs)
01.01.2009 - 31.12.2009
01.01.2008 - 31.12.2008
Change
[EUR‘000] [EUR‘000] [EUR‘000]
Cash flow from:operatingactivities 55,052 105,778 -50,726investingactivities -14,971 -19,374 4,403financingactivities -23,359 -15,096 -8,263
Net increase / decrease in cash and cash equivalents 16,722 71,308 -54,586 Cashandcashequivalentsatbeginningofperiod 213,072 141,764 71,308Cash and cash equivalents at end of period 229,794 213,072 16,722
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Combinedmanagementreport
asatthebalancesheetdateof31december2008,otherliabilitiesrelatingtoticketmoniesnotyetinvoicedincreasedduetothehighlevelofticketpre-salesforamajortour(interaliaaC/dC)thatdidnottakeplaceuntilthefirsthalfof2009.theseticketmonieshadnotyetbeenpaidtothepromotersasatthe2008balancesheetdate.thispaymentwasmadeatthebeginningofthe2009financial year.thestrong increase in these liabilities in respectof ticketmoniesasat the2008balancesheetdateresulted in increasedcashflowofeur+32.113million in the2008financialyear.asatthebalancesheetdateof31december2009,theamountofliabilitiesinrespectofticketmonieswasalmostatthesamelevelastheyearbefore,withtheresultthatthechangeinliabilitiesinrespectofticketmoniesledtoacashflowofonlyeur+1.630millioninthe2009financialyear.thus,thechangesinliabilitiesinrespectofticketmoniesresultedinanegativecashfloweffectofeur-30.483millioninthebusinessyear2009.
asatthebalancesheetdateof31december2009,receivablesandotherassetswereatahighlevel,whichismainlyattributabletohigherreceivablesrelatingtoticketmoniesfrompre-salesandtoreceivablesrelatingtonewtypesofevent.thehigheramountofreceivablesfromticketmoniescompriseticketmoniesreceivablesdueforpaymentintheshortterm,interaliaascreditcardanddirectdebitpayments.Changesinthereceivablesfromticketmoniesandinotherreceivablesresultintotalinanegativecashfloweffectofeur-28.682million.
Cashoutflow for investingactivities felleur4.403million toeur14.971million.thisdeclineprincipallyresultsfromlessinvestmentinintangibleassets(teur-3.535million;mainlytrademarkrights in theliveentertainmentsegment)and inacquiringconsolidatedcompanies(eur-1.302million).thiswasoffsetby increased investment inproperty,plantandequipment (eur+1.221million),primarilyinitinfrastructure.
Cashoutflowforfinancingactivitiesincreasedyear-on-yearbyeur8.263milliontoeur23.359million.this cashoutflowprimarily includes the dividendpayment decideduponat theannualshareholders‘meeting(eur14.639million)andpaymentstonon-controllinginterest(eur8.204million).distribution toshareholdersamounted toeur2.880millionmore than in theprioryear,whenexternalborrowing(eur5.000million)alsohadapositiveimpactoncashflowfromfinancingactivities.
asatthebalancesheetdate,theCtsgrouphaseur229.794millionincashandcashequiva-lents(prioryear:eur213.072million).aseparatecalculationofnetcashispresentedinsection3.3.1,groupfinancialposition,onpage35.
with its current funds, thegroup isable tomeet its financial commitmentsatall timesand tofinanceitsplannedinvestmentsandongoingbusinessoperationsfromitsownfunds.
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Combinedmanagementreport
Cashflowfromoperatingactivitiesfelleur26.221milliontoeur17.993million.thereductionincashflowderivesmainlyfromthechangeinreceivablesfromaffiliatedcompanies(eur-6.731million),inotherassets(eur-8.705million)andinotherliabilitiesrelatingtoticketmoniesnotyetinvoiced for ticketpre-sales forevents in2010 (eur-13.115million).positivecash floweffectsresult,interalia,fromtheeur4.675millionincreaseinnetincomefortheyear.
the increase in receivables fromaffiliatedcompanies ismainlyattributable to receivables fromloans,tobusinesswithnewlyestablishedsubsidiariesandtoreceivablesinrespectofprofitdistribu-tionsforthe2009financialyear.thecashoutflowforotherassetsroseprimarilyduetoreceivablesfornewtypesofevent.thecashflowfromliabilitiesforticketmoniesnotyetinvoiceddecreasedyear-on-yearbecauseat31december2008asubstantialamountofliabilitiesforuninvoicedticketmonieshadarisenduetothehighlevelofticketpre-salesforamajortour,andbecausetheseticketmonieswerenotpaidoutuntilthebeginningofthe2009financialyear.thislargeincreaseuptothebalancesheetdateof31december2008resultedinasignificantlyhighercashflowinthe2008financialyear.asatthebalancesheetdateof31december2009,theamountofliabilitiesforunin-voicedticketmonieshadrisen,butnottothesamelevelasin2008,sothecashflowfromtheseliabilitieswaslessinthereportingthanintheprioryear.
Cashoutflowforinvestingactivitiesfelleur5.965milliontoeur4.695million.thisfallismainlytheresultoflessinvestmentsinacquiringsharesinsubsidiaries(eur+5.635million).
Cashoutflowforfinancingactivitiesincreasedyear-on-yearbyeur8.380milliontoeur15.139million.anadditionaleur2.880millionwasdistributedtoshareholdersthanin2008,whenexternalborrowing(eur+5.000million)hadapositiveimpactoncashflowfromfinancingactivities.
asatthebalancesheetdate,thecashandcashequivalentsheldbyCtsagtotaleur86.732million(prioryear:eur88.573million).aseparatecalculationofnetcashispresentedinsection3.3.2,financialpositionofCtsag,onpage39.
01.01.2009 - 31.12.2009
01.01.2008 - 31.12.2008
Change
[EUR‘000] [EUR‘000] [EUR‘000]
Cash flow from:operatingactivities 17,993 44,214 -26,221investingactivities -4,695 -10,660 5,965financingactivities -15,139 -6,759 -8,380
Net increase / decrease in cash and cash equivalents -1,841 26,795 -28,636 Cashandcashequivalentsatbeginningofperiod 88,573 61,778 26,795Cash and cash equivalents at end of period 86,732 88,573 -1,841
3.4.2 CashflowCtsag(hgb)
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Combinedmanagementreport
4. briefassessmentofthebusinessyear
Ctsagandthegroupasawholeachievedverysuccessfulresultsintheyearunderreview.thekeyfiguresinbothsegmentsonceagainreachedevenbettervalues.withthesesegmentresults,theCtsgroupfullyfulfilledthetargetofimprovingontheprioryear’sperformance.thismeansthat,evenintimesofeconomicandfinancialcrisis,theCtsgroupachievedyetanotherimprovementinitsfinancialfigures.
thegroupandCtsagcontinuedtoimplementtheirgrowthstrategycontinuouslythroughorganicgrowth,targetedacquisitionsandabroaderportfolioofservices.thispositivetrendintheoperativebusinesswasspurredbythegrowthininternetbusiness,combinedwithtoursbypopandrockstarsofnationalandinternationalfamethatattractedbothpublicandmediaattention.
5. appropriationofearningsbyCtsag
inthe2008financialyear,Ctsaggeneratednetincomefortheyear(accordingtogermanCom-mercialCode‘hgb’)ofeur23.199million.theshareholders’meetingon14may2009passedaresolutiontodistributeadividendofeur14.639million(eur0.61pereligibleshare)tosharehold-ers.paymentofthisdividendwaseffectedon15may2009,andtheremainingbalancesheetprofitofeur35.344millionwascarriedforwardtothenewaccount.
inthe2009financialyear,Ctsaggeneratedeur27.874millioninnetincomeaccordingtoger-manCommercialCode.themanagementboardandsupervisoryboardproposetothesharehold-ers’meetingthatadividendofeur19.918million(eur0.83pereligibleshare)bedistributedandthattheremainingeur7.956millionbecarriedforwardtothenewaccount.
6. dependenCiesreportforCtsag
accordingto§17(1)aktg,adependentrelationshipexistsattheclosingdatewiththemajorityshareholder,mr.klaus-peterschulenberg (the controlling company), andwith companieswithwhichheisassociated.inaccordancewith§312aktg,areportshallbesubmittedwhichshallalsobepresentedforreviewtothesupervisoryboardandtheauditor:
thereportpursuantto§312aktgfinisheswiththefollowingstatementbythemanagementboard:
‘Judgingfromthecircumstancesknowntothemanagementboardatthetimelegaltransactionsrequiringdisclosurewereconducted,thecompanyreceivedadequateconsiderationineachcase.nomeasuresor legal transactionswith thirdparties requiringdisclosurewereeithereffectedorwaivedinthebusinessatthebehestoforintheinterestofthecontrollingcompanyoranaffiliatedcompanywithinthemeaningof§312aktg.’
7. eventsafterthebalanCesheetdate
thefollowingspecialeventshaveoccurredsincethebalancesheetdate:
inJanuary2010,theu.s.departmentofJusticegranteditsconsenttothemergeroflivenation,thepromoterofliveevents,andticketmasterentertainmentinc.,theticketingcompany,subjectto
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certainconditions.itisassumedthatthemergerwillnothaveanymaterialimpactontheexistingticketingpartnershipagreementsbetweenlivenationandtheCtsgroup.
infebruary 2010,Ctsagacquired 100%of the shares inticketcornerholdingag,Zurich,(hereinafter:ticketcorner) througha subsidiary.ticketcorner is theundisputedmarket leader inswitzerland,witha60%shareoftheticketingmarket.asaresultofthetakeover,ticketcornercannowavailoftheentireeventimitinfrastructure.indecember2009,Ctsagannouncedplanstoformajointventurewithringierag,thebiggestprivatemediacompanyinswitzerland.infuture,allticketingactivitiesinswitzerlandaretobepooledinasinglejointventure.
therearenoothereventsrequiringdisclosure.
8. riskreport8.1 riskpoliCiesandriskmanagementsystem
thegroup’sriskpolicyisgearedtowardssystematicandcontinuousgrowthinshareholdervalue.the riskpolicy isamajorcomponentof thebusinesspolicy.the reputationofCtsagand thegroup,aswellastheindividualbrandsareofgreatimportanceforthegroup.
reasonable, transparentandmanageable risksareaccepted if theseare related to theexpan-sionandexploitationof thegroup’scorecompetencies.theassociated rewardsmustentailanap-propriateincreaseinshareholdervalue.
themanagementboardisbroadlyguidedbythefollowingprinciplesofriskpolicy:
a)achievingbusinesssuccessinvariablyinvolvesrisk,
b)noactionordecisionmayinvolvearisktothecompanyasagoingconcern,
c)risksinrespectofearningsmustbeassociatedwithcorrespondingreturns,
d)risks,totheextentthattheyareeconomicallyacceptable,mustbehedgedaccordinglyand
e)residualrisksmustbecontrolledbymeansoftheriskmanagementsystem.
inorderto identify,assess,manageanddocumentrisksatanearlystage,thegroupoperatesasystematicandappropriate riskmanagement systemwhich is tightly integratedwithbusinessworkflows.
Quarterlyriskreportsandaninternalreportingsystemensurethattopmanagementispromptlyinformedaboutpotentialrisksaffectingfuturedevelopment.riskmanagementinstruments,suchas a reporting systemwith consolidated budget calculations,monthly financial statements andregularreviewmeetings,arealsousedtoidentifyandanalysethevariousrisks,andtoinformtopmanagementaboutthecourseofbusinessintheindividualentities.theriskmanagementprocessissystematicallysupportedbydedicatedsoftware–the‘riskcompass’.
thus,theriskmanagementsystemoperatedbytheCtsgroupnotonlyservesthepurposeofdetectingexistentialrisksatanearlystage,asrequiredbythegermanlawgoverningenterprisecontrolandtransparency(kontrag),butalsodetectsanyriskswhichmightmateriallyimpairthe
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earningsperformanceofthegroup.inpreparingtheannualfinancialstatements,sufficientprecau-tionswere taken tocover foralldiscernible risks in theongoingbusiness, to theextent that theconditionsfortakingaccountofsuchrisksintheconsolidatedfinancialstatementshavebeenmet.
riskistransferredtoinsurersbytakingout insurancepolicieswithappropriateamountsofcov-erage.thesepoliciesmainly cover property damageand third-party liability claims.some spe-cificoperationalrisksarealsocoveredbyinsurancepolicies.inaddition,corporatemanagementreceivesextensiveadvice fromboth internalandexternalexpertswhen importantdecisionsarebeingtaken.
theauditorevaluatestheefficiencyofourriskmanagementsystemandreportsonhisfindingstothemanagementboardandthesupervisoryboardaftercompletinghisauditoftheannualfinancialstatements.thesefindingsarethenusedtofurtherimprovetheearlydetectionandmanagementofrisks.
8.2 riskCategories
theCtsgroupclassifiesrisksintosixcategories:
1.strategicrisks
2.marketrisks
3.performancerisks
4.financialrisks
5.project-relatedrisks
6.political/legalrisks
ofall the identifiedrisksfacingthegroup,thegeneralandspecificrisksthat, fromtoday’sper-spective,mayhaveasignificantadverseimpactonthefinancialposition,cashflowandearningsperformancearebrieflydescribedbelow.
8.2.1 strategiCrisks
risksrelatingtofuturemaCroeConomiCtrends
thegermanCouncilofeconomicexpertsexpectsonlyamoderateupswingforgermanyandtheeurozoneintheyear2010(grossdomesticproductgrowthratesof+1.6%and+0.7%,respectively).
aspastbusiness trendshaveshown, theeventsmarket is relatively independentofeconomicupswingsanddownswings.
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industry,marketandCompetition
thegroupcurrentlycommandsaleadingmarketpositioninticketsales.itisnotcertainthatthismarketpositioncanbemaintained.inprovidingtheirservices,thegroupcompaniescompetewithregional and supraregional providers both ingermanyandabroad, aswell aswith direct ticketsalesbyeventpromoters.however,effortsarebeingmadetoexpandonthecompany’spositionasmarketleaderbyofferingarangeofspecialservices,suchasanexclusivepre-salesservice,vippackagedeals,onlinereservationofspecificseats,specialbusinessoffers,print-at-homesolutionsandthemobileaccesscontrolsystem‘eventim.access’.
risksalsoensuefromintensifiedglobalisationand/ormonopolisationontheentertainmentmarket.
8.2.2 marketrisks
produCts,serviCesandinnovation
furtherdevelopmentoftheCtsticketingsoftware(globalticketingsystem)occursinacontextofveryrapidchangesintheinformationtechnologyfield,involvingaconstantflowofnewindustrystandards,newproductsandnewservices.thereisnocertaintythattheCtsgroupwillbeabletolaunchnewtechnologiesinatimelymannerandwithoutimpairingthespeedandresponsivenessofthesystem.
thegroup’sbusinessoperationsandtheshareholdervalueof itsassets in theticketingsectordependsignificantlyonpromotersselling theiradmission ticketsvia theCtssalesnetworkandprovidingacertainproportionoftheavailabletickets.thegroupbelievesthateventpromoterswillcontinuetousetheseservicesinfuture,onaccountofthediversifiedstructureofproductsandtheirdistribution.thisriskisminimisedbyacquiringinterestsinvariouswell-knownconcertpromotersatregionalandsupraregionallevel.
thegroup’sbusinessoperationsandtheshareholdervalueofitsassetsintheliveentertainmentsectoraredependenttoasignificantdegreeonpromoterscontinuingtoofferartistsofnationalandinternationalrenown,thusensuringhighattendanceratesatevents.
theCtsgroupwillrespondtoanycompetitiveandprice-relatedpressuresarisingbynewindus-try-specificorcustomer-specificservicesandsalesinitiatives.
8.2.3 performanCerisks
stabilityandreliabilityoftheitinfrastruCturebeingused
theavailabilityandreliabilityofthesoftwareandhardwareusedingermanyandothercountriesareakeyprerequisiteforbusinesssuccess,inthatanymalfunctioningorfailuresmaycausesus-taineddamagetothegroup’sinternalandexternalprocessesortotheservicesitperformsforitscustomers.
theserisksarecounteredwithmanymeasuresthataredefinedinasecuritypolicyadoptedbythemanagementboard.
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proCurement
beinganit-basedserviceprovider,operatorandsupplierofticketingsystemsandapromoterofliveevents,theCtsgroupworkstogetherwithverydifferentsuppliers.potentialrisksinthisareaarecounteredbyestablishingqualitystandards in thesupplyandprocurementprocess,andbyproceduresfortenderingandprojectcosting.
personnelrisks
thefinancialsuccessachievedtodateisattributableinlargemeasuretotheactivityandspecialcommitmentofcertainkeypeoplewithimportantleadershiproles.financialsuccesswillcontinuetodependonthesemanagersremainingintheemployofthegroup,andonwhetherthegroupcancontinuetorecruitnew,highlyskilledpersonnelingermanyandabroad.themanagementdevel-opmentprogrammeprovidesdedicatedsupportfor,andadvancementofmanagementpotential,aswellasincentivesystems.
8.2.4 finanCialrisks
Cashflowrisks
Cashflowrisksarise if thepaymentobligationsof thegroupcannotbecoveredwithavailablecashorcreditlines.
Cashflowisplannedandmanagedtoensurepermanentsolvencyandfinancialflexibility.moniesgeneratedbyadvanceticketsalesaredepositedinseparateserviceaccountsuntilaccountingfortherespectiveeventhasbeencompleted.standardcreditagreementswithvariousbanksareinplace,buttoaminorextentonly.theextensionriskisminimisedbyvaryingthecreditterms.thegrouphadsufficientcashreservesatthe2009balancesheetdate.
as at 31 december 2009, the group has bank liabilities of eur 5.262 million (prior year:eur5.271million).
Creditrisks
Creditrisksexistwhenthereisariskofdebtorsbeingunabletosettletheirdebts.themaximumdefaultriskisequalintheorytothefairvalueofallreceivables,minuspayablesowedtothesamedebtorifset-offispossible.intheannualfinancialstatementsofCtsagandthegroup,allowancesfordoubtfulaccountsweremadetooffsetidentifiedcreditrisks.theseareformedonthebasisofhistorical default ratesand futureexpectations for recoveryof the receivables. individual impair-mentsaremadeassoonasthereisanindicationthattherespectivereceivableisirrecov-erableinwholeorinpart.theseindicationsarealsobasedonintensivecontactwiththerespectivedebtorsinthecontextofaccountsreceivablemanagement.
therearenosignificantconcentrationsofcreditrisks.
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forreconciliationoftheimpairmentaccountsandtheagestructureofreceivables,referenceismadetotheadditionaldisclosuresonfinancialinstruments(ifrs7)initem3ofthenotestotheconsolidatedfinancialstatements.
inthe2009businessyear,securityamountingtoeur11.902million(prioryear:eur8.149mil-lion)wasprovidedforgroupcompanies,mainlytohedgetherisksinticketpre-salesbyvariousboxoffices(eur9.112million,prioryear:eur7.838million).
foreignexChangerisks
the foreignexchange risks towhich thegroup is exposedensue from investments, financingactivitiesandoperatingactivitiesinforeigncurrencies.withinthegroup,somecontractswithper-formersaswellaslicensingagreementsaretransactedinforeigncurrencies.
foreignexchangeriskswhichdonotaffectthecashflowofthegroup(i.e.theriskswhichresultfromtranslatingtheassetsandliabilitiesofforeignentitiesintothegroupreportingcurrency)remainunsecured,asabasicprinciple.
acurrencyriskmayalsoarisewhenintercompanyreceivablesorliabilitiesexistinacurrencyotherthanthefunctionalcurrencyoftheconsolidatedfinancialstatements.theeffectsofexchangeratevariationsonthecompanyareminimal.
inordertodisclosefinancialriskexposure,theCtsgrouppreparessensitivityanalysesinaccord-ancewithifrs7,showingtheeffectsthathypotheticalappreciationanddevaluationoftheeuroinrelationtoothercurrencieswillhaveonconsolidatednetincomeaftertaxandonshareholders’equity,where relevant.theperiodiceffectsaredeterminedby relating thehypotheticalchangesinforeignexchangeratestothefinancialinstrumentsinplaceattheclosingdate.itisassumedthatthevolumeofsuchinstrumentsattheclosingdateisrepresentativefortheyearasawhole.foreignexchangeriskswithinthemeaningofifrs7ensuewhenfinancialinstrumentsaredenominatedinacurrencyotherthanthefunctionalcurrencyandareofamonetarynature;currencytranslationdifferences relating to the translation of financial statements into the functional currency of thegroupareignoredinthisregard.
iftheeurohadappreciated(ordecreased)invalueby10%againstallothercurrenciesasat31december2009,theconsolidatednetincomeaftertaxwouldhavebeeneur189thousandhigher(orlower,respectively)(prioryear:eur66higher(lower)).thehypotheticaleffectonnetincomeaftertax,ateur189thousand,resultsmainlyfromthecurrencysensitivitieseur/usd(eur+253thousand)andeur/gbp(eur-45thousand).
interestrisks
fixed interest rateagreementsareprimarily inplace for long-term loans,andshort-termcreditlines are not used continuously throughout the year,with the result that potential interest rateincreasesdonotposeasignificantrisktothegroup.financialderivativesforhedginginterestratesarethereforenotused.
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Changesinthemarketinterestratesoforiginalfinancialinstrumentswithfixedinterestratesaffectearningsonlywhenthesearerecognisedat fairvalue.accordingly,all financial instrumentswithfixedinterestratesandrecognisedatamortizedcostsarenotexposedtoanyinterestriskswithinthemeaningofifrs7.
ifthelevelofmarketinterestrateshadbeen100basepointshigher(lower)asat31december2009,consolidatednetincomeaftertaxwouldhavebeeneur15thousandlower(higher)(prioryear:eur1thousand).thehypotheticaleur15thousandeffectonconsolidatedincomeresultsfromthepotentialeffectsoforiginalcashandcashequivalentsandfinancialdebtsofeur4.482millionthataresubjecttovariableinterestrates.
otherpriCerisks
thesecuritiesheldbytheCtsgrouparesubjecttomarketpricerisks.inaccordancewithifrs7,thesemarketpricerisksarepresentedintheformofsensitivityanalysesbycalculatingtheeffectsthathypotheticalchangesinmarketpriceswillhaveontherecognitionofavailable-forsalefinancialassetsstatedunderinvestmentsorotherfinancialassets.
ifmarketpricesasat31december2009hadbeenhigher(lower)byonestandarddeviationfromthehistoricalrelativechangesinvalueoverthefinancialyear,shareholders’equitywouldhavebeeneur4thousandhigher(lower).
taxes
different opinionson fiscalmattersmay lead to subsequent tax demandsbeing imposed thathaveadverseimpactsonthefinancialsituation.afiscalauditofthegroupwasconductedduringthereportingyearinrespectoftheyears2000to2004.theauditwillnothaveanymaterialeffects.
litigationandClaimsfordamages
pendinglitigationanddamagesclaimsarereportedunderitem12inthenotestotheconsolidatedfinancialstatements.
Capitalmanagement
theaimofcapitalmanagementistoensurethatthegroupisabletoachieveitsaimsandstrate-giesintheinterestofshareholders.maximumgrowthinthevalueofthegroupanditssubsidiariesisstrivenfor.thefinancialsystemwithintheCtsgroupisgearedtocontinuousandsustainedgrowthofthegroup’svalue.inordertooptimiseandsafeguardtheallocationoffinancialresourceswithinthegroup,thegroupseekstocontroltheassociatedfinancialmarketrisksinaforesightedmanner.
in the2009 financialyear,nosignificantnegative impactsof the financialcrisiswere identifiedeitherintheCtsgrouporinCtsag.demandforliveeventsappearsunbroken,evenwhentheeconomyisgoingthroughdifficulttimes.duetothelowrequirementforexternalborrowing,changesinbanks’lendingpracticeshavenothadanyeffectsonthegroup.
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8.2.5 proJeCt-relatedrisks
risksmayariseinconjunctionwithlargerprojects,inparticular.theserisksareprimarilyqualityrisks,i.e.theriskthatthegoalsofprojectsarenotmetinfull,butmayalsotaketheformofcostrisksandrisksrelatingtodeadlines.examplesareitprojectsinthecontextofinternationalexpansion,ornewtypesofevent.project-relatedrisksareidentifiedandmanagedwithanappropriatesystemofprojectmanagement.
8.2.6 politiCal/legalrisks
political/legalrisksmayarisewhenconditionsarestipulatedormodifiedbygovernmentactivities,inparticularbylegislation.examplesaredevelopmentsincommercialandtaxlaw,marketregula-tionmeasures,orrisksderivingfromtheinfluenceofconsumerprotectionorganisations.
8.3 noriskstotheContinuedexistenCeofCtsagandthegroup asagoingConCern
anoverviewofrisksshowsthatthegroupismainlyexposedtomarketandperformancerisks.themanagementboardcurrentlyassumesthattherisksarelimitedandtransparentonthewholeandthattheydonotjeopardiseCtsagandthegroupasagoingconcern.norarethereanyidentifi-ablerisksthatmightjeopardisetheircontinuedexistenceasagoingconcern.
9. managementboardreportpursuantto§120(3)sentenCe2aktg, onthedisClosuresmadeinaCCordanCewith§§289(4) and315(4)hgb
theregisteredcapitalofCtsagiseur24,000,000,dividedinto24,000,000no-parbearershares.eachshareentitlesthebearertoonevote.
themanagementboardoftheCompanyisnotawareofanyrestrictionsonvotingrightsoronthetransferofshares.
mr.klaus-peterschulenberg,bremen,holds50.067%ofthevotingrights.theCompanyhasnoknowledgeofanyothershareholdings,directorindirect,thatexceed10%ofthevotingrights.
shareswithspecialcontrollingrights(‘goldenshares’)donotexist.
thereareno special procedures formonitoring voting rights in theevent that employeesholdsharesintheCompany’scapital.
appointmentanddismissalofmanagementboardmembersisgovernedby§§84and85aktgandby§5iii3oftheCompany’sarticlesofincorporation,accordingtowhichthemembersofthemanagementboardareappointed(anddismissed)bythesupervisoryboardforamaximumoffiveyears.re-appointmentsarepermissible.accordingto§5iofthearticles,themanagementboardcomprisestwoormorepersons;thenumberofmembersisdeterminedbythesupervisoryboard,whichmayalsonominateamember of themanagementboardas itsChairpersonpursuant to§84aktg.
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accordingto§179(1)aktg,thearticlesofincorporationmaybeamendedbyashareholderreso-lution,whichrequiresamajorityequal toat least threequartersof theregisteredcapitalpresentatvoting(§179(2)aktg).§8(8)oftheCtsagarticlesofincorporationavailsoftheoptionpro-videdforin§179(2)aktg,anddefinesthatresolutionsmaybeadoptedwithasimplemajorityofvotescastand,ifamajorityofsharecapitalisrequired,withasimplemajorityofthesharecapital.shareholderresolutionsforwhichaqualifiedmajorityofvotesorsharecapitalisrequiredbylawareadoptedattheshareholders’meetingbyatwo-thirdsmajorityunlessotherwisestipulatedbymandatorystatutoryprovisions.
the management board has been authorised to increase the registered capital by up toeur12,000,000by13may2014, contingent onsupervisoryboardapproval, by issuingup to12,000,000newbearersharesagainstcashcontributionsorcontributionsinkind(approvedcapital,2009).themanagementboardhasalsobeenauthorisedtoincreasethesharecapitalbyuptoeur360,000,contingentonsupervisoryboardapproval,byissuingupto360,000bearersharestohold-ersexercisingoptionsissuedunderthestockoptionplanonthebasisoftheauthorisationgrantedon21January2000(contingentcapital2001/1).
themanagementboardhasalsobeenauthorisedtoissuestockoptionsandconvertiblebondstoa totalvalueofup toeur275millionandwithamaximum termof20years,conditionalonsupervisoryboardapproval,by14may2013,togranttheholdersoptionandconversionrightstoupto11,000,000newno-parbearersharesinthecompany,equaltosharecapitalofuptoeur11,000,000,andtoexcludeshareholders,withinlegallypermittedlimits,fromsubscribingtothecon-vertiblebondsundercertainconditions.inviewofthepossibleissueofsharestoholdersofoptionandconversionrightsonthebasisofthisauthorisation,anadditionaleur11,000,000incontingentcapitalhasbeencreated(‘contingentcapital2008’).
thecompanyisauthorisedtopurchase,by13november2010andastreasurystock,upto10%ofthe24,000,000no-parvaluebearersharesformingtheregisteredsharecapitalofthecompany,atthepriceandsubjecttotheconditionsdefinedintheauthorisationresolutiondated14may2009,andtousethesetreasurysharesforcertainpurposes,partiallyalsowithexclusionofsubscriptionrightsforshareholders.
nodisclosuresneedtobemaderegardingmaterialagreementsconcludedbytheCompanywhicharecontingentonachangeofcontrol followinga takeoverbid,or regarding theeffectsensuingtherefrom.
therearenocompensationagreementswithmembersofthemanagementboardoremployeesthatshalltakeeffectintheeventofatakeoverbid.
10. CorporategovernanCedeClaration
theexecutivebodiesofCtsagareguidedintheiractionsbytheprinciplesofresponsibleandgoodcorporategovernance.themanagementboardsubmitsareportoncorporategovernanceinadeclarationofcompliance,inaccordancewith§289a(1)hgb.thecurrentandallpreviousdeclara-tionsofcompliancearepermanentlyavailableontheinternetatthewww.eventim.dewebsite(http://www.eventim.de/cgi-bin/tinfo.dll?doc=invre/eng/corporate_governance/corporate_03&id=evg).
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11. outlook11.1. eConomiCmaCroenvironment
amoderateupswingisexpectedfor2010,giventhestabilisationofoveralleconomictrendssincemid-2009.theexportsectorwillgrowastheglobaleconomyprogressivelyrecovers,andthefirstandsecondstimulationpackagesadoptedbythegermangovernmentareleadingtoanincreaseinpublic-sectorinvestmentinconstruction.however,theupwardtrendinthebroadereconomywillbehamperedbytheanticipateddownturninprivateconsumptionresultingfromincreasingunem-ployment.thegermanCouncilofeconomicexpertsgenerallyexpectsgrossdomesticproducttogrowatarateof1.6%intheyear2010,withtherisksoflowergrowthoutweighingthelikelihoodofstrongergrowth.theeurozoneandtheeuropeanunionareexpectedtoshowamoderaterecoveryin2010,withgrossdomesticproductgrowingby0.7%.
11.2. developmentofearningsperformanCe
thesuccessof theCtsgroupwillcontinue tobe influenced in largemeasureby itsbusinessmodel,namelythecombinationofticketingandliveentertainmentsegments.
tiCketing
intheticketingsegment,theCtsgroupwillcontinueintheyearsaheadtopursueitsbasicstra-tegicdirectionasleaderoftheeuropeanticketingmarket.inadditiontoorganicgrowth,effortswillalsoremainfocusedoninternationalexpansion.
inexistingmarkets,itisplannedtoincreasethetotalvolumeofticketssoldbydevelopinginternetticketingmorestronglythanthemarketasawhole.themainfocusofthisgrowthstrategywillbethedevelopmentofnewtechnologiesandproducts,includingpartnershipsinthefieldofsocialmediaandweb2.0.exclusivepre-sales,mobileshop&ticketing,cross&upselling,vippackagedeals,onlinereservationofspecificseats,specialbusinessoffers,print-at-homesolutionsandthemobilemobileaccesscontrolsystem‘eventim.access’roundofftheproductrange.
aspartof itsstrategyof internationalexpansion, theticketingsegmentof theCtsgroupwassuccessfullylaunchedontheukticketingmarketatthebeginningoffebruary2010.Contractstoacquireticketcorner,theleaderoftheswissticketingmarket,weresignedinZurichon19febru-ary2010.innewmarketsalso,priorityisattachedtoincreasingthetotalvolumeofticketssoldbyconcentratingoninternetticketingwhilesimultaneouslyexploitingthesynergiesmadepossiblebystandardisingitsystems.
thegrowthstrategyofincreasingticketvolumeinbothexistingandinnewmarketsisexpectedtoresultinfurtherearningsimprovementsduetotheanticipatedscaleeffects.
liveentertainment
intheliveentertainmentsegment,theCtsgroupisexcellentlypositionedwithitssubsidiariesandinvestments.successfulbusinessdevelopmentisplannedforthissegmentalso,bymeansofworld-classtours,events,festivalsandnewtypesofevent.
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11.3. developmentofthefinanCialposition
thegroupisdefactofreeofdebtduetoanegativedebt/equityratio.thestrategyofinternationalexpansioncanbeimplementedusingthegroup’sexistingcashfunds.owingtocurrentconditionsonthelendingmarketfordebt-freecompanieswithgoodcreditworthinessratings,externalborrow-ingwillbeconsideredasameansoffinancingacquisitionsandretainingcashfunds.
11.4. overallviewofprospeCtivedevelopment
ifbusinessexpectationsandstrategicplans,basedonaneventsmarketthatisindependentofupsanddownsintheeconomycometofruition,furtherbusinessadvancementaswellasfurtherimprovement in revenueandearnings canbeexpected in 2010and2011.global uncertaintiesbroughtaboutbytheimpactsofthefinancialandeconomiccrisesmayneverthelesshaveadverseeffectsontheeventsmarketandhenceonthebusinessdevelopmentoftheCtsgroup.
theamountofanydividendwillcontinuetobebasedonearningsandonthestrategicdevelop-mentofthegroup.
forward-lookingstatements
inadditiontohistoricalfinancialdata,thisreportmaycontainforward-lookingstatementsusingtermssuchas‘believe’,‘assume’,‘expect’andthelike.suchstatementsmaydeviate,bytheirverynature,fromactualfutureeventsordevelopments.
bremen,19march2010
Ctseventimaktiengesellschaft
themanagementboard
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Consolidatedfinancialstatements2009
consolidAted FinAnciAl stAteMents 2009
CONSOLIdATEd BALANCE ShEET AS AT 31 dECEMBER 2009 (IFRS)
*reclassificationofreceivablesrelatingtoticketmoniesfrompre-salesintheticketingsegment(seeitem2inthenotestotheconsolidatedfinancialstatements)
ASSETS 31.12.2009 31.12.2008 01.01.2008
[EUR] [EUR] [EUR]
Current assetsCashandcashequivalents (1) 229,793,885 213,072,414 141,764,029tradereceivables (2) 19,798,749 18,019,775* 18,029,861*receivablesfromaffiliatedcompanies (3) 3,566,038 1,710,616 1,197,624inventories (4) 15,571,215 12,732,614 13,193,872receivablesfromincometax (5) 8,805,184 6,974,903 3,991,762otherassets (6) 47,721,828 24,033,914* 24,691,843*Total current assets 325,256,899 276,544,236 202,868,991
Non-current assetsproperty,plantandequipment (7) 11,239,833 9,165,178 7,795,323intangibleassets (8) 20,491,706 21,176,175 15,051,394investments (9) 1,020,810 1,155,619 998,334investmentsstatedatequity (10) 343,089 224,484 32,816loans (11) 486,188 1,864,798 2,298,373tradereceivables (12) 1,267,880 1,329,820 602receivablesfromaffiliatedcompanies (13) 1,186,397 1,716,063 662,784otherassets (14) 2,303,139 63,704 49,347goodwill (15) 96,928,983 89,917,550 79,488,696deferredtaxassets (16) 1,359,580 1,929,144 3,968,358Total non-current assets 136,627,605 128,542,535 110,346,027
Total assets 461,884,504 405,086,771 313,215,018
7.
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Consolidatedfinancialstatements2009
ShAREhOLdERS‘ EQUITY ANd LIABILITIES 31.12.2009 31.12.2008 01.01.2008
[EUR] [EUR] [EUR]
Current liabilitiesshort-termfinancialliabilitiesandcurrentportionoflong-termfinancialliabilities
(17)
25,217,733
5,026,156
2,932,391
tradepayables (18) 35,889,823 31,692,689 26,036,589payablestoaffiliatedcompanies (19) 1,230,496 1,432,502 286,860advancepaymentsreceived (20) 101,766,084 84,085,940 52,746,177otherprovisions (21) 1,331,234 1,159,968 1,121,725taxprovisions (22) 10,077,558 7,265,149 10,143,003otherliabilities (23) 125,038,530 119,874,519 85,408,291Total current liabilities 300,551,458 250,536,923 178,675,036
Non-current liabilitiesmedium-andlong-termfinancialliabilities (24) 7,961,533 24,989,406 19,810,751otherliabilities (25) 12,211 1,052,324 2,102,000pensionprovisions (26) 2,715,559 2,247,016 2,521,589deferredtaxliabilities (27) 780,013 824,047 658,180Total non-current liabilities 11,469,316 29,112,793 25,092,520
Shareholders' equity (28)sharecapital 24,000,000 24,000,000 24,000,000Capitalreserve 23,310,940 23,310,940 23,306,832earningsreserve 277,467 118,626 22,296balancesheetprofit 97,591,309 72,445,380 55,063,582treasurystock -52,070 -52,070 -57,638non-controllinginterest 4,945,973 5,794,783 7,152,876totalcomprehensiveincome 52,078 0 0Currencydifferences -261,967 -180,604 -40,486Total shareholders' equity 149,863,730 125,437,055 109,447,462
Total shareholders‘ equity and liabilities 461,884,504 405,086,771 313,215,018
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Consolidatedfinancialstatements2009
CONSOLIdATEd INCOME STATEMENT FOR ThE PERIOd FROM 1 JANUARY TO 31 dECEMBER 2009 (IFRS)
CONSOLIdATEd STATEMENT OF COMPREhENSIVE INCOME FOR ThE PERIOd FROM 1 JANUARY TO 31 dECEMBER 2009 (IFRS)
01.01.2009 - 31.12.2009
01.01.2008 - 31.12.2008
[EUR] [EUR]
revenue (1) 466,697,634 404,347,753Costofsales (2) -342,260,250 -306,900,351Gross profit 124,437,384 97,447,402
sellingexpenses (3) -34,413,065 -29,914,455generaladministrativeexpenses (4) -19,248,835 -17,146,159otheroperatingincome (5) 8,336,827 6,941,325otheroperatingexpenses (6) -7,832,104 -7,045,616Operating profit (EBIT) 71,280,207 50,282,497
income/expensesfromparticipations (7) 7,800 44,080income/expensesfrominvestmentsstatedatequity (8) 140,205 172,206financialincome (9) 2,016,048 4,671,834financialexpenses (10) -1,948,697 -1,793,434Profit from ordinary business activities (EBT) 71,495,563 53,377,183
taxes (11) -23,306,514 -17,834,712Net income before non-controlling interest 48,189,049 35,542,471
non-controllinginterest (12) -8,245,606 -6,335,823Net income after non-controlling interest 39,943,443 29,206,648
earningspershare(ineur);undiluted(=diluted) 1.66 1.22averagenumberofsharesincirculation;undiluted(=diluted) 24,000,000 24,000,000
01.01.2009 - 31.12.2009
01.01.2008 - 31.12.2008
[EUR] [EUR]
netincomebeforenon-controllinginterest 48,189,049 35,542,471exchangedifferencesontranslatingforeignsubsidiaries -81,363 -140,118available-for-salefinancialassets 52,078 0Other results -29,285 -140,118Total comprehensive income 48,159,764 35,402,353Total comprehensive income attributable to
shareholdersofCtsag 39,916,433 29,051,370non-controllinginterest 8,243,331 6,350,983
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Consolidatedfinancialstatements2009
CONSOLIdATEd STATEMENT OF ChANGES IN ShAREhOLdERS´ EQUITY (IFRS)
Share capital Capital reserveEarnings
reserveBalance
sheet profitTreasury
stockNon-controlling
interest
Other comprehensive
incomeCurrency
differences
Total shareholders‘
equity (28)
[EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR]
Status 01.01.2008 24,000,000 23,306,832 22,296 55,063,582 -57,638 7,152,876 0 -40,486 109,447,462
Changeinthescopeofconsoli-dation 0 0 0 0 0 -429,600 0 0 -429,600Changeintreasurystock 0 0 0 0 5,568 0 0 0 5,568allocationtocapitalreserve 0 4,108 0 0 0 0 0 0 4,108allocationtoearningsreserve 0 0 96,330 -65,916 0 0 0 0 30,414
Changeinnon-controllinginterest(putoption) 0 0 0 0 0 74,744 0 0 74,744dividends 0 0 0 -11,758,934 0 -7,339,060 0 0 -19,097,994
totalcomprehen-siveincome 0 0 0 29,206,648 0 6,335,823 0 -140,118 35,402,353Status 31.12.2008 24,000,000 23,310,940 118,626 72,445,380 -52,070 5,794,783 0 -180,604 125,437,055
Changeinthescopeofconsolidation 0 0 0 0 0 -983,746 0 0 -983,746allocationtoearningsreserve 0 0 175,039 -175,039 0 0 0 0 0transfersfromearningsreserve 0 0 -16,198 16,198 0 0 0 0 0dividends 0 0 0 -14,638,673 0 -8,110,670 0 0 -22,749,343totalcomprehen-siveincome 0 0 0 39,943,443 0 8,245,606 52,078 -81,363 48,159,764Status 31.12.2009 24,000,000 23,310,940 277,467 97,591,309 -52,070 4,945,973 52,078 -261,967 149,863,730
57
Consolidatedfinancialstatements2009
CONSOLIdATEd CASh FLOw STATEMENT FOR ThE PERIOd FROM 1 JANUARY TO 31 dECEMBER 2009 (IFRS)
01.01.2009 -31.12.2009
01.01.2008 31.12.2008
thefollowingcashflowstatementshowstheflowsoffundsfromoperatingactivities,investingactivitiesandfinancingactivitiesofthegroup,andtheresultantchangeincashandcashequivalents:
[EUR] [EUR]
A. Cash flow from operating activitiesnetincomeafternon-controllinginterest 39,943,443 29,206,648non-controllinginterest 8,245,606 6,335,823depreciationandamortizationonfixedassets 9,042,152 7,550,677Changesinpensionprovisions 468,543 -274,573deferredtaxexpenses/income 558,636 1,576,974Cash flow 58,258,380 44,395,549othernon-cashexpenses/income 2,818,044 712,133bookprofit/lossfromdisposaloffixedassets 42,190 -14,701interestincome -1,995,408 -4,246,173interestexpenses 1,600,305 1,790,202incometaxexpenses 22,747,878 16,257,737interestreceived 1,782,142 4,182,477interestpaid -818,488 -755,600incometaxpaid -20,863,793 -22,000,608increase(-)/decrease(+)ininventories;paymentsonaccount -2,838,601 492,090increase(-)/decrease(+)inreceivablesandotherassets -31,913,719 -3,231,658increase(+)/decrease(-)inprovisions 1,130,577 2,891,488increase(+)/decrease(-)inliabilities 25,102,882 65,305,742Cash flow from operating activities (1) 55,052,389 105,778,678
B. Cash flow from investing activitiespaymentsforinvestmentsinintangibleassets -4,302,192 -7,837,667paymentsforinvestmentsinproperty,plantandequipment -5,936,198 -4,715,219paymentsforinvestmentsinnon-currentfinancialassets -16,758 -204,885proceedsfromsalesofproperty,plantandequipment 99,577 176,800proceedsfromsalesofnon-currentfinancialassets 1,168,241 475,323paymentsforacquisitionofconsolidatedcompanies -5,983,917 -7,286,325proceedsfromsalesofsharesinconsolidatedcompanies 0 17,805Cash flow from investing activities (2) -14,971,247 -19,374,168
C. Cash flow from financing activitiespaymentsforredemptionoffinancingloans -823,591 -910,449proceedsfromborrowingfinancingloans 306,510 5,000,000dividendpaymentstonon-controllinginterest -8,203,917 -7,426,742dividendpaymentstoshareholders -14,638,673 -11,758,934Cash flow from financing activities (3) -23,359,671 -15,096,125
d. Net increase / decrease in cash and cash equivalents 16,721,471 71,308,385Cashandcashequivalentsatbeginningofperiod 213,072,414 141,764,029
E. Cash and cash equivalents at end of period 229,793,885 213,072,414F. Composition of cash and cash equivalents
Cashandcashequivalents 229,793,885 213,072,414Cash and cash equivalents at end of period 229,793,885 213,072,414
58
Consolidatedfinancialstatements2009
notestotheConsolidatedfinanCialstatementsforthefinanCialyearfrom1January–31deCember2009(ifrs)
1. prinCiples1.1 struCtureandbusinessoperationsofthegroup
thecompany is registeredasCtseventimag(hereinafter:Ctsag),dingolfingerstrasse6,d-81673munich,germany, in theCommercialregister atmunich localCourt under no.hrb156963.thecompany’sheadofficeisinbremen,germany.sharesinCtsagaretradedundersecuritiescode547030inthesdaxsegmentofthefrankfurtstockexchange.
theobjectsofthecompanyintheticketingsegmentaretheproduction,sale,brokering,distribu-tionandmarketingof tickets forconcerts, theatre,art, sportsandotherevents ingermanyandabroad,particularlyinthefederalrepublicofgermanyandothereuropeancountries,inparticularbyusingelectronicdataprocessingandmoderncommunicationanddata transmissiontechnolo-gies.furtherobjectsofthecompanyaretheproduction,sale,brokering,distributionandmarketingofmerchandisingarticlesandtravel,aswellasdirectmarketingactivitiesofallkinds.thecompanycompetesfortheprovisionofitsservicesnotonlywithsupraregionalprovidersofsimilarservicesingermanyandothercountries,butalsowithregionalenterprisesandwithdirectticketsellingbytherespectivepromoters.theobjectsoftheliveentertainmentsegmentaretheplanning,prepara-tionandexecutionofevents,inparticularmusiceventsandconcerts,andthemarketingofmusicproductions.
theannualfinancialstatementsofCtsagandtheconsolidatedfinancialstatementsofCtsag,bearingtheunqualifiedauditopinionofpricewaterhouseCoopersaktiengesellschaftwirtschaftsprü-fungsgesellschaft,osnabrück,arepublishedintheelectronicfederalgazette(bundesanzeiger).
theseconsolidatedfinancialstatementsandthecombinedmanagementreportwereapprovedbythemanagementboardofCtsagon19march2010,forpresentationtothesupervisoryboard.
1.2 aCCountingprinCiples
theconsolidatedfinancialstatementswerepreparedinaccordancewiththeinternationalfinan-cialreportingstandards (ifrs), in the formapplicablewithin theeuropeanunion (eu),and inaccordancewiththesupplementaryaccountingregulationspursuantto§315a(1)ofthegermanCommercialCode(hgb).allifrsissuedbytheinternationalaccountingstandardsboard(iasb)andapplicablewhentheseconsolidatedfinancialstatementswerepreparedhavebeenadoptedbytheeuropeanCommissionforuseintheeu.theconsolidatedfinancialstatementswerepreparedusingthehistoricalcostconvention,limitedbytherecognitionoffinancialassetscarriedatfairvaluebutnotthroughprofitorloss.
the layoutof thebalancesheetconforms to ias1.adistinction ismade in thebalancesheetbetweencurrentandnon-currentassetsandliabilities,someofwhicharedisclosedindetailinthenotes,accordingtotimetorecoveryorsettlement.thelayoutoftheincomestatementisbasedonthe‘costofsales’method.expensesincurredaresetinrelationtotherevenuegeneratedandareclassifiedaccordingtotheirfunctionascostsofsales,sellingexpensesandgeneraladministrativeexpenses.
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Consolidatedfinancialstatements2009
theconsolidatedfinancialstatementsaredenominatedineuros.theamountsintheannualreportareroundedtothenearestthousandeuros.thismayleadtominordeviationsonaddition.
1.3 newaCCountingstandardsissuedbutnotyetapplied
the iasb and the international financial reporting interpretations Committee (ifriC) haveadoptedadditionalstandardsandinterpretationsthatarenotyetmandatoryforthe2009financialyearandwhichhavenotbeenapplied to theconsolidatedannual financial statementsasat31december2009.
adoptedbytheeu:
•ifrs1‘firsttimeadoptionofinternationalfinancialreportingstandards’ (applicableonorafter1July2009)
•ifrs3‘businessCcombinations’andias27‘Consolidatedandseparatefinancial statements’(applicableonorafter1July2009)
•ias32‘Classificationofrightsissues’(applicableonorafter1february2010)
•ias39‘financialinstruments:recognitionandmeasurement–eligiblehedgeditems’ (applicableonorafter1July2009)
•ifriC12‘serviceConcessionarrangements’(applicableonorafter30march2009)
•ifriC15‘agreementsfortheConstructionofrealestate’ (applicableonorafter1January2010)
•ifriC16‘hedgesofanetinvestmentinaforeignoperation’ (applicableonorafter30June2009)
•ifriC17‘distributionsofnon-cashassetstoowners’ (applicableonorafter31october2009)
•ifriC18‘transfersofassetsfromCustomers’(applicableonorafter31october2009)
notyetadoptedbytheeu:
•ifrs1‘additionalexemptionsforfirst-timeadopters’ (applicableonorafter1January2010)
•ifrs2‘groupCash-settledshare-basedpaymenttransactions’ (applicableonorafter1January2010)
•ifrs9‘financialinstruments’(applicableonorafter1January2013)
•ias24‘relatedpartydisclosures’(applicableonorafter1January2011)
60
Consolidatedfinancialstatements2009
•ifriC14‘prepaymentsofaminimumfundingrequirement’ (applicableonorafter1January2011)
•ifrs19‘extinguishingfinancialliabilitieswithequityinstruments‘ (applicableonorafter1July2010)
standardsthatarenotapplicableuntilafter thebalancesheetdatehavenotbeenprematurelyapplied.theeffectsofthestandardsontheearningsperformanceandfinancialpositionoftheCtsgrouparestillbeingreviewed.
1.4 newandamendedstandardswithmandatoryappliCationin2009
thefollowingnewandamendedstandardsand interpretationwereapplied for the first timeasfrom1January2009:
•ifrs1/ias27‘Costofaninvestmentinasubsidiary, Jointly-controlledentityorassociate’
•ifrs2‘share-basedpayment–vestingConditionsandCancellations’
•ifrs7‘improvingdisclosuresaboutfinancialinstruments’
•ifrs8‘operatingsegments’
•ias1‘presentationoffinancialstatements’
•ias23‘borrowingCosts’
•ias32/ias1‘puttablefinancialinstrumentsandobligationsarisingonliquidation’
•ifriC9/ias39‘embeddedderivatives’
•ifriC13‘Customerloyaltyprograms’
•ifriC14/ias19‘thelimitofadefinedbenefitasset, minimumfundingrequirementsandtheirinteraction’
allaccountingstandardsmandatoryfromthe2009financialyearonwardswereapplied.thesemainlycompriseias1onthepresentationoffinancialstatementsandifrs8onsegmentreporting.theamendmentstoias1resultinanewpresentationformatoftheprimaryfinancialstatements.theamendments to ifrs8did not haveanymaterial effects.theother accounting standardsmandatoryforthefirsttimeinfiscal2009alsohavenomaterialimpactsonthepresentationoftheearningsperformanceandfinancialpositionoftheCtsgroup.
61
Consolidatedfinancialstatements2009
1.5 disClosuresConCerningConsolidationpoliCies
allrelevantsubsidiariesareincludedintheconsolidatedfinancialstatements.somesmallerregionalsubsidiaries, inboth theticketingsegmentand theliveentertainmentsegment,havenotbeenincluded in theconsolidated financial statementsbecauseof their insignificance forestablishinga trueand fairviewof thegroup’searningsperformanceand financialposition.the revenueofcapitalisedinvestmentsnotincludedintheconsolidatedfinancialstatementsduetoinsignificanceislessthan1.5%ofgrouprevenue.
asabasicprinciple,thefinancialstatementsofthecompaniesincludedintheconsolidatedfinan-cialstatementsarepreparedinaccordancewithuniformaccountingpolicies.
thebalancesheetdateoftheconsolidatedcompaniesisidenticaltothatoftheparent.
Capitalconsolidationiseffectedusingtheacquisitionmethodbyoffsettingthecarryingamountoftheinvestmentagainsttherevaluedequityofthesubsidiaryatthetimeofacquisition(‘purchaseaccounting’).thecostof theacquisition isequal to the fair valueof the transferredassetsandliabilitiesassumedat the timeof transaction,plus thecostdirectlyattributable to theacquisition.assets, liabilities and contingent liabilitieswhich canbe identified in the context of a corporatemergerarerecognisedattheirrespectivefairvaluesatthetimeofacquisitionwhenfirstincludedinconsolidation.anyamountbywhichthecostexceedsthegroup’sshareinthefairvalueofnetassets is recognisedas goodwill.according to ifrs3and ias36, goodwillmust be reviewedannuallywithregardtocarryingvalueandanyindicationsofimpairment.
Consolidationiscarriedoutasatthetimeofacquisition,whencontrol isacquired,orwhentheminimumsignificancelevelsforinclusioninconsolidationareexceeded.
investmentsincompaniesoverwhichsignificantinfluencecanbeexercisedaremeasuredbytheequitymethod;asignificantinfluencecanbeexercisediftheshareofvotingrightsisbetween20%and50%(‘associates’).investmentsmeasuredatequityarecarriedattheproportionateadjustedinterest in the investee’s equity.Changes in the proportionate equity valuewith effects on netincomearerecognisedintheincomestatementasprofitorlossfrominvestmentsstatedatequity.ifthegroup’sshareinlossesfromanassociateisequaltoorgreaterthatthegroup’sshareinthatcompany,thegroupdoesnotpostanyfurtherlossesunlessithasenteredintoobligationsinre-spectoftheassociate,orhasmadepaymentsfortheassociate.
throughasubsidiary,Ctsagholds49.8%ofthesharesinticketones.p.a.,milan(hereinafter:ticketone).ticketoneanditssubsidiariesarefullyconsolidated.Ctsagexercises‘control’,withinthemeaningofias27,throughcontractualagreements.anagreedpurchaseoptionensuresthatCtsagcanincreaseitsshareholdinginticketoneinthemediumterm.
revenue, interimresults,expensesandincome,aswellasreceivablesandpayablesareelimi-natedbetweenconsolidatedcompanies.
62
Consolidatedfinancialstatements2009
1.6 businessCombinations1.6.1 businessCombinationsinthetiCketingsegment
witheffectfrom28January2009,eventimuklimited(hereinafter:eventimuk)wasestablishedwithitsregisteredofficeinlondon,greatbritain.Ctsagholds100%ofthesharesinsaidcom-pany.eventimukwasformedinthecourseofimplementingthepartnershipwithlivenation.sinceinitialconsolidation,thecompanyhasgeneratednorevenueandnegativeearningsofeur-399thousand.
infebruary 2009,eventimsportsConsultinggmbh,bremen,was renamedgetgo consultinggmbhanditsregisteredofficewasrelocatedtohamburg.thechangeswereenteredintheregisterofcompanieson22april2009.
inmarch2009,Cardplusoy,helsinki,wasmergedwithlippupisteoy,tampere.themergerwasenteredinthefinnishregisterofcompanieson31march2009.
inapril2009,Zritelo.o.o.,moscow,changeditsnametoCtseventimruo.o.o.,moscow.
witheffectfrom20april2009,eventimCZs.r.o.(hereinafter:eventimCZ)wasestablishedwithitsregisteredofficeinprague,Czechrepublic.Ctsagholds100%ofthesharesinsaidcompany.eventimCZwasformedinthecourseofimplementingthepartnershipwithlivenation.sinceinitialconsolidation,thecompanyhasgeneratedeur3thousandinrevenueandnegativeearningsofeur-166thousand.
with effect from22december 2009, a further 40.48%of the shares intempodomegmbh,hamburg,wereacquired.thepricepaidfortheshareswaseur25thousand.Ctsagnowholdsatotal60%ofthesharesinsaidcompany.theobjectsoftempodomegmbh,hamburg,aretodeveloponline-basedbusinessmodelsand tocreate,operateandmarket internetplatforms forentertainmentproductsforbusinessandfinalcustomers.sinceinitialconsolidation,thecompanyhasgeneratednorevenueandnosignificantearnings.ifthecompanyhadbeenacquiredbefore1January2009,revenueinthereportingperiodwouldhavebeeneur526thousandhigherinthereportingperiod,andconsolidatednet incomewouldhavebeeneur3thousandmorethantherevenueandconsolidatednetincomefiguresactuallybeingreported.asaresultofthisinvestment,cashandcashequivalentsamountingtoeur28thousandwereacquired.
witheffectfrom22december2009,100%ofthesharesintheshelfcompanyeinundsechzigste‘lydia’vermögensverwaltungsgesellschaftmbh,hamburg,wereacquired.thepricepaid for theshareswaseur29thousand.theregisteredofficeofthecompanyhasbeenmovedtobremen.thecompanyhasnotgeneratedanyrevenueorsignificantincomeinthecurrentfinancialyear.
1.6.2 businessCombinationsintheliveentertainmentsegment
intheliveentertainmentsegmenttherewerenochangesinthescopeofconsolidationduringthereportingyear.
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Consolidatedfinancialstatements2009
1.7 listofinvestments
alistofshareholdingsispublishedintheelectronicfederalgazette.
1.8 CurrenCytranslationprinCiples
businesstransactionswhicharemadebygroupcompaniesincurrenciesotherthanthelocalcur-rencyaretranslatedattherateapplyingonthedateoftransaction.
the financial statementsof foreign subsidiarieswhose currency is not theeuroare translatedusingthefunctionalmethod.thefunctionalcurrencyusedforthosepartsofthecompanyoutsidegermanyis the localcurrency ineachcase.accordingly,assetsand liabilitiesofentitiesoutsidegermanyoroutsidetheeurozonearetranslatedtoeurousingtherateofexchangeonthebalancesheetdate.revenueandexpensesaretranslatedusingtheaverageexchangeratefortherespec-tivefinancialyear.Currencytranslationdifferencesaredisclosedasaseparateiteminshareholders’equity.
1.9 mainaCCountingpoliCies
aCCountingpoliCies
thefollowingaccountingpoliciesremainedunchangedcomparedtotheyearbefore.
whenpreparingtheconsolidatedfinancialstatements,itisnecessarytoacertaindegreetomakeestimatesandassumptionsthataffecttheassetsandliabilities,thedisclosureofcontingentliabili-tiesasatthebalancesheetdateandthestatementofincomeandexpenditureduringthefinancialyear.inparticular,itisnecessarytomakeassumptionswhenperformingtheannualimpairmenttestongoodwillandwhenrecognisingdeferredtaxassetsinrespectoflosscarryforwards.theactualamountsmaydeviatefromtherespectiveestimates.
noteConCerningreCognitioninaCCordanCewithias32
in accordancewith ias 32, contractswhich obligate a company to purchase its own equityinstrumentsarerecognisedasfinancialliabilitiescarriedatthepresentvalueofthepurchaseprice.thisprinciplealsoapplieswhentheobligationtopurchasesuchinstrumentsisconditionalonthecontractualpartnerexercisinganoption,andisindependentoftheprobabilityofsuchoptionbeingexercised. incompliancewithchanges in internationalaccountingpractice, thisprinciple isalsoapplicable to the forwardpurchaseof non-controlling sharesand to put optionsgranted to non-controllinginterestsintheCtsgroup.inordertocalculatethepotentialpurchasepriceobligations,itwasnecessarytoreclassifythesenon-controllingsharesasliabilitiesinsteadofequity.inaddition,goodwilliscapitalisedtotheamountofdifferencebetweenthepresentvalueoftheliabilitiesandthecarryingamountofthenon-controllingshares,providedthatthepurchasepriceobligationsresultingfromputoptionsareforafixedstrikepriceandalltheopportunitiesandrisksderivingfromtheputoptionarekeptwithintheCtsgroup.
64
Consolidatedfinancialstatements2009
CashandCasheQuivalents
Cashandcashequivalentsincludebankbalancesandcashinhand.bankbalancesandcashinhandaremeasuredattheirnominalvalueatthebalancesheetdate.
reCeivables
receivables andother assets are carried at nominal valueminus adjustments for discerniblerisks.thegroupisfundamentallyexposedtopotentialdefaultrisksinrespectofreceivablesandotherassets.adequateconsiderationwasgiventotheserisksbymakingappropriateallowancesfordoubtfulaccounts.
inventories
inventoriesarecarriedatcostofpurchase,takingancillaryexpensesintoaccountanddeductinganybonusesordiscountsreceived,oratcostofsales,oratthenetrealisablevalueonthebalancesheetdate.borrowingcostsforloancapitalarenotcapitalised.
finanCinginstruments
thestatedvaluesofthegroup’sfinancinginstruments,whichincludecashandcashequivalents,loans, investments, trade receivablesandpayables, receivables fromandpayables to affiliatedcompanies,otherassetsand liabilities,and financial liabilitiesarecompliantwith theaccountingprinciplesinias39.
asabasicprinciple,financialassetsareclassifiedintothefollowingcategoriesinaccordancewithias39:
•loansandreceivables
•financialassetscarriedatfairvaluethroughprofitorloss,
•held-to-maturityinvestments
•available-for-salefinancialassets.
financialliabilitiesarerecordedatamortizedcostsusingtheeffectiveinterestmethod.
Classificationdependson the respectivepurpose forwhich the financialassetswereacquired.managementdetermineshowfinancialassetsaretobeclassifiedwhentheyareinitiallyrecognised,andreviewsthisclassificationateveryclosingdate.
in the reporting year, thegroupdid not classify any financial instruments as ‘held-to-maturityinvestments’or‘financialassetscarriedatfairvaluethroughprofitorloss’.somefinancialassetsclassifiedas‘loansandreceivables’andas‘available-for-salefinancialassets’areheld.
65
Consolidatedfinancialstatements2009
loansandreceivablesarenon-derivative financialassetswith fixedordeterminablepaymentsthatarenotquotedinanactivemarket.theyarisewhenthegroupprovidesmoney,goodsorserv-icesdirectlytoadebtorwithoutanyintentiontotradethereceivables.loansandreceivablesarecarriedinthebalancesheetundercashandcashequivalents,loans,tradereceivables,receivablesfromaffiliatedcompaniesandunderotherassets.loansandreceivablesarecarriedattheircurrentpurchasecost.ateachreportingdate,thecarryingvaluesoffinancialassetsarereviewedtodeter-minewhetherthereareanyobjectivematerialindicationsofimpairment.anyimpairmentexpenseiscarriedthroughprofitorloss.
the available-for-sale financial assets include participations and securities.participations arestatedattheirrespectivecostofpurchasebecausethereisnoactivemarketforthesecompanies,andbecausepresentfairvaluescannotreasonablybecalculatedwithanyreliability. if thereareany indications that fair values are lower, these are applied accordingly.securities are initiallyrecognisedattheirfairvalueonthesettlementdate.gainsandlossesderivedfromsecuritiesarerecognisedinequity,notthroughprofitandloss.
intangibleassetsandproperty,plantandeQuipment
intangibleassetswithadeterminateuseful lifeandfixedassetsarecarriedat theircostofpur-chaseor cost of sales,minus systematic straight-line depreciation andamortization. financingcostsarenotincluded.therearenofinanceleaseagreementsofanysignificance.
development costs for proprietary softwareare recognisedas assets if theymeet the criteriaspecifiedinias38.
systematicdepreciationandamortizationofintangibleassetsandproperty,plantandequipmentismainlybasedonthefollowingusefuleconomiclives:
•software,licences:3-12years
•trademarks:5-10years
•Customerbase:4-10years
•otherproperty,plantandofficeequipment:3-14years
inaccordancewithifrs3,goodwillwithanindeterminateusefullifeisnotamortizedsystemati-cally,butisreviewedforimpairmentonthebasisoftherecoverableamountforthecash-generatingunittowhichthegoodwillisallocated.fortheimpairmenttest,thegoodwillissubdividedandallo-catedtocash-generatingunits.thegoodwillisallocatedtothosecash-generatingunitsexpectedtoderivebenefitsfromthebusinesscombinationinwhichthegoodwillarose.
thegrouptestsitsgoodwillforimpairmentatleastonceayearonthebalancesheetdate,orifsignificanteventsorchangesincircumstancesindicatethatthefairvalueofareportingentitywithinthegroupmightbelowerthanitscarryingamount.impairmentsofgoodwillmaynotbereversed.
in compliancewith ias36, thegroup routinely assesses the carrying valuesof all assets forpossibleimpairment.ifeventsorchangesincircumstancesprovidegroundsforbelievingthatthecarryingvalueofsuchanassetmightnolongerreachtheapplicableamount,thegroupmakesa
66
Consolidatedfinancialstatements2009
comparisonbetweentherecoverableamountandthecarryingvalueoftheparticularasset(impair-menttest).iftheassetisimpaired,thegrouprecordsanimpairmentlosssothattheassetiswrittendowntotherecoverableamount.innocasedidthecarryingvaluesofreportingentitiesexceedtherespectivefairvalue,sotherewerenoindicationsofimpairmentstothestatedvalueofanyreport-ingentityinthe2009financialyear.
deferredtaxes
deferredtaxassetsandliabilitiesarerecognisedincompliancewithias12,accordingtowhichdeferredtaxesarereportedusingthebalancesheetliabilitiesmethod.
deferred tax assets and liabilities are formed for temporary differences between the carryingamountsintheconsolidatedbalancesheetandinthefiscalbalancesheet,aswellasforfiscallosscarryforwards.deferredtaxassetsarerecognisedif it is likelythattaxableearningswillbeavail-ableagainstwhichthedeductibletemporarydifferencecanbeapplied.deferredtaxassetswereformedonexistinglosscarryforwardsonlytotheextentthatitislikely,takingcurrentbudgetingintoaccount,thatthesecanberealised.deferredtaxassetsandliabilitiesarevaluedattheapplicabletaxationratesthatmustprospectivelybeappliedtothetaxableincomeinthoseyearsinwhichthetemporarydifferencesareexpectedtoberecoveredorsettled.theimpactofachangedtaxationrateondeferredassetsandliabilitiesiscarriedastaxincomeorexpense.
liabilities
liabilitiesarerecognisedatamortizedcostusingtheeffectiveinterestmethod,wherenecessary.theircompositionandremainingtermsareshownintheanalysisofliabilities.
provisions
inaccordancewithias37,otherprovisionswereformedwhencommitmentstowardsthirdpar-tiesexistthatarereasonablylikelytorequiresettlement.theprobableamountsofsuchobligationswereestimatedaccordingtothestateofknowledgewhenthebalancesheetwasprepared.
provisionsforpensionsandsimilarobligationsareformedfordefinedbenefitplans.theseareobligationsonthepartofthecompanyresultingfrompensionexpectanciesandongoingbenefitspaidtoactiveemployeeswhoareeligibleforbenefits.pensionobligationsaredependentonyearsofserviceandthepayleveloftherespectiveemployee.
provisions fordefinedbenefitplansarecalculatedusing theprojectedunitcreditmethod.thislattermethodtakesaccountnotonlyofthepensionsandacquiredbenefitsknownonthereport-ingdate,butalsoanyanticipatedincreasesinsalariesandpensions.thecalculationisbasedonactuarialexpertises,takingbiometricfactorsintoaccount.actuarialgainsandlossesresultingfromadjustmentsandamendmentsofactuarialassumptionsinlinewithexperienceareincludedintheincomestatement.
ifreinsurancepoliciesexistforpensioncommitmentsandcanonlybeusedtocoverthebenefitsdueunder thepensioncommitments,and the insurancepolicy ispledged to thebeneficiaryem-ployee,thesearetreatedasqualifyinginsurancepoliciesinaccordancewithias19.thecoverage
67
Consolidatedfinancialstatements2009
valuesaretreatedasplanassetsandareoffsetagainsttherespectivepensionprovisionsinthebalancesheet.
non-Controllinginterest
transactionswithnon-controllinginterestaretreatedastransactionswithpartiesexternaltothegroup.disposals of shares to non-controlling interest result in gains and losses in the consoli-dated financial statements.Conversely, purchasesof shares in non-controlling interest result inrecognitionofgoodwill,toanamountequaltothedifferencebetweenthepurchasepriceandtheproportionalpresentvalueofthesubsidiary’snetassets.
reCognitionofrevenue
revenueandotherincomearerecognisedwhenacontracthasbeenconcludedwithlegaleffect,deliveryhasbeenmadeortheservicehasbeenperformed,apriceisfixedanddeterminable,anditcanbeassumedthatthepricewillbepaid.revenueisstatedlessdiscounts,pricereductions,customerbonusesandrebates.pricereductionsreducerevenueassoonastherespectiverevenueisrecognised.
revenueintheticketingsegmentthatrelatestothesaleofticketstofinalcustomersisrealisedwhentherespectiveCtsticketingcompanydeliverstheticketstothefinalcustomer.intheliveentertainmentsegment,ticketrevenuegeneratedinthepre-salesperiodispostedbythepromoterontheliabilitiessideasadvancepaymentsreceived.whentheeventissubsequentlyheld,theseadvancepaymentsreceivedaretransferredtorevenueandtheprofitsarerealised.
expensereCognition
expensesarerecognisedassuchwhentheyareincurred.
softwaredevelopmentservicesarerecognisedasexpenseiftheydonotmeettherequirementsofias38,andaremostlyincludedincostofsales.
leasingarrangements
leasinginstalmentsforoperatingleasingarrangementsarerecognisedintheincomestatementforthetermoftherespectiveleasingarrangement.
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Consolidatedfinancialstatements2009
2. disClosureofreCeivablesrelatingtotiCketmonies inthebalanCesheet
inordertoensureuniformpresentation,receivablesrelatingtoticketmoniesfrompre-salesintheticketingsegment,whichwerepreviouslycarriedascurrenttradereceivables,areaccountedforasothercurrentassetsasatthebalancesheetdateof31december2009.theprioryearcarryingamountsofcurrenttradereceivablesandothercurrentassetsasat31december2008andasat1January2008havebeenadjustedaccordingly.
thefollowingtableprovidesanoverviewofthechangesresultingfromthisreclassification:
3. notestotheConsolidatedbalanCesheet
CashandCasheQuivalents(1)
Cash and cash equivalents of eur 229.794 million (prior year: eur 213.072 million) arepredominantlybankbalances.
aseparatecalculationofnetcashispresentedinsection3.3.1,financialposition,onpage35ofthecombinedmanagementreport.
tradereCeivables(Current)(2)
Currenttradereceivablestotallingeur19.799million(prioryear:eur18.020million)arepayablewithinoneyear.theprioryearcarryingamountsofcurrenttradereceivableswereadjusted(seesection2onthedisclosureofreceivablesrelatingtoticketmoniesinthebalancesheet).
31.12.2008 01.01.2008
After reclassi- fication
Before reclassi- fication
Change
After reclassi- fication
Before reclassi- fication
Change
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
Current assetstradereceivables 18,020 27,236 -9,216 18,030 24,202 -6,172otherassets 24,034 14,818 9,216 24,692 18,520 6,172
69
Consolidatedfinancialstatements2009
rawmaterialsandsuppliesinclude,interalia,blankticketsandcateringstocks.finishedgoodsandmerchandisemainlyrelatedtoithardware,merchandisingarticlesandtickets.
paymentsonaccountpertaintoprepaidproductioncosts(e.g.artists’fees)foreventstakingplacein2010.
noimpairmentsofinventoriesweremade.
reCeivablesfrominCometax(Current)(5)
thereceivablesfromincometaxrelatetotaxrefundentitlementsamountingtoeur8.805million(prioryear:eur6.975million).
reCeivablesfromaffiliatedCompanies(Current)(3)
theeur3.566million incurrent receivables fromaffiliatedcompanies (prioryear:eur1.711million) relateprincipally to receivables fromsubsidiaries ineasterneurope thatarenotconsoli-datedduetoinsignificance(eur3.291million;prioryear:eur1.253million).theincreaseresultedespeciallyfromgrowingreceivablesduetointensifiedoperations.eur6thousandinreceivablesfromassociatedcompaniesarealsoincluded(prioryear:eur19thousand).
inventories(4)
inventoriescomprisedthefollowingitems:
31.12.2009 31.12.2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
rawmaterialsandsupplies 471 514 -43finishedgoodsandmerchandise 1,471 1,905 -434paymentsonaccountforevents 13,629 10,314 3,315
15,571 12,733 2,838
70
Consolidatedfinancialstatements2009
otherassets(Current)(6)
otherassets,ateur47.722million(prioryear:eur24.034million)comprise financialassets(eur43.580million,prioryear:eur19.432million)andnon-financialassets(eur4.142million,prioryear:eur4.602million).theprioryearcarryingamountsofothercurrentassetswereadjus-ted(seesection2onthedisclosureofreceivablesrelatingtoticketmoniesinthebalancesheet).
other financialassets relate, interalia, to receivables from ticketpre-salesateur27.541mil-lion(prioryear:eur15.668million),tocurrentloansateur5.735million(prioryear:eur1.287million), toreceivables inrespectofsecuritydepositsateur4.429million(prioryear:eur445thousand),andsecuritiesmeasuredatfairvaluebutnotthroughprofitandlossateur2.016million(prioryear:eur0thousand).
theother,non-financialassetsrelatetorefundclaimsinrespectofsalestaxandothertaxes,ateur1.495million (prioryear:eur1.932million)andother receivablesamounting toeur407thousand (prior year:eur829 thousand).other, non-financial assets also include a deferredexpenseitemateur2.240million(prioryear:eur1.841million)thatmainlyrelatestocostsforfutureevents.
in the 2009 business year, collateral amounting toeur688 thousand (prior year: eur746thousand)wereprovidedbygroupcompanies,inparticulareur249thousandforrentaldeposits(prioryear:eur317thousand).
71
Consolidatedfinancialstatements2009
property,plantandeQuipment(7)
thecompositionanddevelopmentisshowninthefollowingtable:
Other real estate, land rights and
buildings, including buildings on third-
party propertiesTechnical equipment
and machinery
Other facilities, operating and
office equipmentPayments
on account Total
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
historical cost1January2008 153 749 17,561 1,898 20,361Changeinscopeofconsolidation 0 70 36 0 106additions 0 32 4,025 657 4,714disposals -34 0 -866 0 -900reclassifications 0 0 1,897 -1,897 0Currencydifferences -1 0 -28 0 -29adjustmentsduetotaxaudit 0 0 31 0 3131 december 2008 118 851 22,656 658 24,283
Changeinscopeofconsolidation 0 0 10 0 10additions 145 92 4,934 765 5,936disposals 0 -119 -414 0 -533reclassifications 0 0 660 -660 0Currencydifferences 0 0 -8 0 -831 december 2009 263 824 27,838 763 29,688
Accumulated depreciation and amortization1January2008 65 315 12,186 0 12,566additions 13 180 3,147 0 3,340disposals -34 0 -723 0 -757Currencydifferences -1 0 -30 0 -3131 december 2008 43 495 14,580 0 15,118
additions 36 124 3,575 0 3,735disposals 0 -30 -373 0 -403Currencydifferences 0 0 -2 0 -231 december 2009 79 589 17,780 0 18,448
Carrying value1January2008 88 434 5,375 1,898 7,79531december2008 75 356 8,076 658 9,16531 december 2009 184 235 10,058 763 11,240
72
Consolidatedfinancialstatements2009
intangibleassets(8),goodwill(15)
thecompositionanddevelopmentisshowninthefollowingtable:
investmentsinintangibleassetsandgoodwill,ateur12.535million,relatetoadditionsforsoft-wareandlicences(eur1.781million),capitalizeddevelopmentexpenditure(eur2.462million),trademarksandsimilarrights(eur34thousand),customerbase(eur26thousand)andgoodwill(eur8.232million).
Concessions, industrial property rights and similar rights and assets,
and licences to such rights and assets Goodwill Customer base
Payments on account / Proprietary software in progress Total
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
historical cost1January2008 35,004 84,356 10,736 364 130,460Changeinscopeofconsolidation 931 0 1,595 0 2,526additions 6,886 10,429 0 952 18,267disposals -1,160 0 0 0 -1,160reclassification 304 0 0 -304 0Currencydifferences -14 0 0 -2 -16december 2008 41,951 94,785 12,331 1,010 150,077
Changeinscopeofconsolidation 2 0 0 0 2additions 3,825 8,232 26 452 12,535disposals -420 -1,221 0 0 -1,641reclassification 727 0 0 -727 0Currencydifferences -21 0 0 -1 -22december 2009 46,064 101,796 12,357 734 160,951
Accumulated depreciation and amortization1January2008 25,275 4,867 5,778 0 35,920additions 3,335 0 873 0 4,208disposals -1,137 0 0 0 -1,137Currencydifferences -8 0 0 0 -831 december 2008 27,465 4,867 6,651 0 38,983
additions 4,210 0 748 0 4,958disposals -407 0 0 0 -407Currencydifferences -4 0 0 0 -431 december 2009 31,264 4,867 7,399 0 43,530
Carrying values1January2008 9,729 79,489 4,958 364 94,54031december2008 14,486 89,918 5,680 1,010 111,09431 december 2009 14,800 96,929 4,958 734 117,421
73
Consolidatedfinancialstatements2009
investmentsamounting toeur2.265millionweremade in theCts ‘globalticketingsystem’software for further advancement andnetworkingof additional software systems (network,web,in-house) tomeet international requirements.of those investments,eur2.082millionwere forproprietarysoftwareandeur183thousandforexternalsoftwaredevelopment.
notesonthedevelopmentofgoodwillarepresentedbelowunder‘goodwill(15)’.
withtheexceptionofgoodwill,therearenointangibleassetswithunlimitedusefullife.
investments(9),investmentsstatedateQuity(10),loans(11)
thecompositionanddevelopmentisshowninthefollowingtable:
Shares in affiliated
companies ParticipationsInvestments
stated at equity
Loans due to affiliated companies
Security investments Other loans Total
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
historical cost1January2008 326 866 33 884 33 1,851 3,993additions 30 149 172 25 0 0 376disposals -56 0 0 -479 0 -433 -968reclassifications 0 -19 19 0 0 0 0Currencydifferences 0 0 0 17 0 0 1731 december 2008 300 996 224 447 33 1,418 3,418
additions 15 1 119 0 0 1 136disposals 0 -131 0 -369 0 -668 -1,168reclassifications 0 -12 0 0 0 0 -12Currencydifferences 0 0 0 -2 0 0 -231 december 2009 315 854 343 76 33 751 2,372
Accumulated depreciation and amortization1January2008 69 156 0 437 2 0 664additions 0 0 0 0 3 0 3disposals -56 0 0 -437 0 0 -49331 december 2008 13 156 0 0 5 0 174
additions 0 7 0 0 0 341 34831 december 2009 13 163 0 0 5 341 522
Carrying values1January2008 257 710 33 447 31 1,851 3,32931december2008 287 840 224 447 28 1,418 3,24431 december 2009 302 691 343 76 28 410 1,850
74
Consolidatedfinancialstatements2009
investments(9)
investments,ateur691thousand(prioryear:eur840thousand)relateprimarilytoparticipa-tions.
investmentsstatedateQuity(10)
theadjustedcarryingvalueoftheinterestingreensavegmbh,würzburg,iseur63thousand(prioryear:eur35thousand).asat31december2009,thiscompanydisclosesabalancesheettotalofeur196thousand(prioryear:eur188thousand),revenueofeur387thousand(prioryear:eur218thousand)andnetincomefortheyearofeur98thousand(prioryear:ofeur9thousand).thegroup’sshareintheassetsofgreensavegmbhiscarriedateur55thousand(prioryear:eur53thousand),andtheshare indebtsateur14thousand(prioryear:eur23thousand).
theadjusted carrying valueof the interest ingreenfieldfestivalag,hünenberg, iseur280thousand (prior year:eur189 thousand).asat 31december 2009, this companydisclosesabalancesheettotalofeur516thousand(prioryear:eur1.006million),revenueofeur4.075million (prior year:eur4.534million) and net income for the year ofeur92 thousand (prioryear:eur718thousand).thegroup’sshareintheassetsofgreensavefestivalagiscarriedateur123thousand(prioryear:eur240thousand),andtheshareindebtsateur97thousand(prioryear:eur236thousand).
loans(11)
loans include loan receivables from associates, at eur 51 thousand (prior year: eur 422thousand), and fromaffiliated companies, ateur25 thousand (prior year:eur25 thousand).loanstothirdpartiesamounttoeur410thousand(prioryear:eur1.418million).
tradereCeivables(non-Current)(12)
non-current tradereceivables,ateur1.268million (prioryear:eur1.330million),havea re-mainingtermofbetweenoneandfiveyears.thesereceivablesresultfrommedium-tolong-termpartnershipswithpromotersintheliveentertainmentsegment.
non-currenttradereceivablesareneitherimpairednoroverdueasattheclosingdate.
reCeivablesfromaffiliatedCompanies(non-Current)(13)
non-currentreceivablesfromaffiliatedcompaniesincludeloansgrantedtosubsidiariesineasterneurope, ateur1.146million (prior year:eur1.716million), and receivables fromassociates,ateur40thousand(prioryear:eur0thousand).thesereceivableshavearemainingtermofbetweenoneandfiveyears.
75
Consolidatedfinancialstatements2009
otherassets(non-Current)(14)
ofthenon-currentotherassets,ateur2.303million(prioryear:eur64thousand),eur2.302million(prioryear:eur49thousand)arefinancialassetsandmainlyrelatetoreceivablesfornewtypesofevent,ateur2.254million(prioryear:eur0thousand).
goodwill(15)
thedisclosedgoodwilltotallingeur96.929million(prioryear:eur89.918million)breaksdownintoeur61.025millionintheticketingsegment(prioryear:eur59.172million)andeur35.904millionintheliveentertainmentsegment(prioryear:eur30.746million).ofthatdisclosedgood-will,eur20.690million(prioryear:eur18.839million)relatestogoodwillfromputoptions;thelatterfigurebreaksdownintoeur19.206millionintheticketingsegment(prioryear:eur17.286million)andeur1.484millionintheliveentertainmentsegment(prioryear:eur1.553million).
in theticketing segment, goodwill increasedbyeur1.853million in the reporting year.thechangemainlyrelatestogoodwillfromputoptionstoberecognisedinaccordancewithias32.anadditionofeur2.957millionresultedfromachangeinmeasuredcarryingamountatthebalance-sheetdate,basedonvariablepurchasepriceobligations.thiswasoffsetbyderecognitionofeur1.036millioningoodwillasaresultoffixingaspecificpurchasepricewhenofferingsharesinasub-sidiarythatwasalreadyincludedinconsolidation,andtheacceptanceofthosesharesindecember2009.thelegaltransferofthoseshareswillbeeffectedatthebeginningof2010.
thechangeingoodwillintheliveentertainmentsegment(eur5.158million)principallyinvolvesanadditioningoodwillresultingfromtheacquisitionofsharesinasubsidiarythatwasalreadyinclu-dedinconsolidation.financialadditionoccurredinthe2009financialyear,whereaslegaltransferoftheshareswaseffectedinJanuary2010.
thisgoodwillisallocatedtothecashgeneratingunits(Cgus)ofthegroup.thecashgeneratingunitscorrespondtothegroupreportingentities(segments),i.e.ticketingundliveentertainment.impairmenttestsareperformedongoodwilltodeterminetherecoverableamountofaCgu,equaltothefairvalueminuscostsofsale.thefairvalueisthebestpossibleestimateoftheamountforwhichanindependentthirdpartywouldacquirethecashgeneratingunitonthebalancesheetdate,minusthecostsofsale.thefairvalueiscalculatedonthebasisofacompanyvaluationmodel.thisprocedureandthebasicassumptionsapplytoallCguswithgoodwillthatissubjecttoimpairmenttests.thesecalculationsarebasedonforecastcashflowsderivedfromfive-yearplanning.whendeterminingbudgetfigures,themanagementtookintoaccountcurrentandfuturelikelihoods,busi-nessandeconomictrends,economicdevelopmentandothercircumstances.thecashflowsintheyearofperpetuitycorrespondtothecashflowinthelastyearoffive-yearplanning.adiscountrateof8.4%wasappliedforthispurpose.thediscountratesusedareinterestratesaftertaxandreflectthespecificriskstowhichtherespectiveCgusareexposed.thegroupappliesconstantgrowthratesof1%toextrapolatecashflows.thisgrowthrateisderivedfrompastexperienceanddoesnotexceedthelong-termgrowthoftherespectivemarketsinwhichtheentityoperates.noimpairmentofgoodwill,sub-dividedaccordingtosegment,wasrequiredinthe2009financialyear.
76
Consolidatedfinancialstatements2009
deferredtaxassets(16)
thedeferredtaxassets,ateur1.360million,pertaintothefollowing:
asat31december2009, theviewof thegroup is that, in thecaseof thedeferred taxassetsincludingtheassetsrecognisedfromuseofthelosscarryforwardsamountingtoeur595thousand(prioryear:eur1.345million),thereisalikelihoodthatthegroupcompanieswillgenerateprofitsofleastthesameamountinfutureperiods.
nodeferredtaxassetswerestatedforeur4.693millioninlosscarryforwardsformunicipaltradetaxpurposes(prioryear:eur2.464million),andforeur4.851millioninlosscarryforwardsforcorporationtaxpurposes(prioryear:eur2.588million),andforeur2.087millioninotherlosscarryforwardsforforeigntaxationpurposes(prioryear:eur964thousand).accordingtoias12deferredtaxassetsarenottobeformedinrespectoftheaforementionedlosscarryforwardssinceitisnotexpectedatpresentthatthetaxrefundclaimswillberealisedinthenearterm.
therateofdeferreddomestictaxationaveraged31%.thisrateincludescorporationtaxat15%,thesolidaritysupplementat5.5%ofthecorporationtaxandanaverage15.2%rateofmunicipaltradetax.therespectivelyapplicabletaxrateswereappliedtoforeignsubsidiaries.
31.12.2009 31.12.2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
taxlosscarryforwards 595 1,345 -750temporarydifferences 765 584 181
1,360 1,929 -569
77
Consolidatedfinancialstatements2009
thedeferredtaxassetsandliabilitiesrelatetothefollowingbalancesheetitemsandlosscarry-forwards:
31.12.2009 31.12.2008
deferred tax assets
deferred tax liabilities
deferred tax assets
deferred tax liabilities
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
Cashandcashequivalents 0 0 143 0
tradereceivables 467 195 215 61otherassets 156 231 1 239Current assets 623 426 359 300
property,plantandequipment 0 64 1 81
intangibleassets 296 702 397 839loans 307 0 320 0Non-current assets 603 766 718 920
otherprovisions 14 0 49 0otherliabilities 36 3 33 3Current liabilities 50 3 82 3
pensionprovisions 3 99 0 176Non-current liabilities 3 99 0 176
losscarryforwards 595 0 1,345 0Total 1,874 1,294 2,504 1,399
offset -514 -514 -575 -575deferred tax assets / liabilities 1,360 780 1,929 824
78
Consolidatedfinancialstatements2009
short-termfinanCialliabilitiesandCurrentportionoflong-termfinanCialliabilities(17)
theshort-termfinancialliabilitiesandthecurrentportionsoflong-termfinancialliabilitiesrelatetoshort-termpurchasepriceobligationsderivingfromputoptionsgranted,whichhadtoberecognisedateur22.430millioninaccordancewithias32(prioryear:eur4.370million),topurchasepriceobligationsderivingfromtheacquisitionofsharesinsubsidiariesalreadyincludedinconsolidation,ateur1.725million(prioryear:eur0thousand),andtoliabilitiestobanks,ateur1.063million(prioryear:eur656thousand).
liabilitiestobanksweresubjecttointerestatnormalmarketrates.theinteresteffectscausedbycompoundingpurchasepriceobligations forputoptionswerestatedaseur1.017million (prioryear:eur904thousand)inthefinancialresult.
tradepayables(18)
tradepayables,ateur35.890million(prioryear:eur31.693million)arepayablewithinoneyear.
payablestoaffiliatedCompanies(19)
payablestoaffiliatedcompaniesresultfromsuppliesandservicesandarebrokendownintoeur1.016millionfortheticketingsegment(prioryear:eur1.268million)andeur214thousandfortheliveentertainmentsegment(prioryear:eur165thousand).
advanCepaymentsreCeived(20)
theadvancepaymentsreceived,ateur101.766million(prioryear:eur84.086million),resultfrom ticketmoniesalready received for futureevents in theliveentertainmentsegment.theseadvancepaymentsarepostedtorevenueaftertherespectiveeventshavetakenplaceandaccountshavebeensettled.
79
Consolidatedfinancialstatements2009
theotherprovisionsrelatetomanymatters,withindividualcarryingamountsofonlysecondaryimportance,suchascommissionandlitigationrisks.
taxprovisions(22)
Changesintaxprovisionsareshowninthefollowingtable:
otherliabilities(Current)(23)
otherliabilitiescompriseeur98.413millioninfinancialliabilities(prioryear:eur96.961million)andeur26.626millioninnon-financialliabilities(prioryear:eur22.913million).
the financial liabilities include liabilities from ticketingmoniesnot yet invoiced, ateur94.249million (prior year:eur92.619million), liabilities frompurchaseprice obligations, ateur151thousand(prioryear:eur1.662million),liabilitiesfromthird-partyconcerts,ateur1.396million(prioryear:eur977thousand),andeur2.617inotherfinancialliabilities(prioryear:eur1.703million).
thenon-financialliabilitiesresultfromtaxliabilities,ateur12.298million(prioryear:eur10.124million),socialinsuranceliabilities,ateur2.588million(prioryear:eur2.406million),liabilitiesto personnel, ateur6.629million (prior year:eur5.918million), credit voucher liabilities, ateur3.223million(prioryear:eur2.234million),deferredrevenue,ateur602thousand(prioryear: eur296 thousand), and other non-financial liabilities, at eur1.286million (prior year:eur1.935million).
otherprovisions(21)
Changesinotherprovisionsareshowninthefollowingtable:
01.01.2009Change in consoli-
dated companies Consumption Reversal Addition 31.12.2009
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
Other provisions 1,160 -4 -707 -59 941 1,331
01.01.2009Change in consoli-
dated companies Consumption ReversalCurrency
differences Addition 31.12.2009
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
Tax provisions 7,265 -8 -6,358 -80 -13 9,272 10,078
80
Consolidatedfinancialstatements2009
medium-andlong-termfinanCialliabilities(24)
asatthebalancesheetdate,medium-andlong-termfinancialliabilitiesamountingtoeur7.961millionwerecarried(prioryear:eur24.990million).ofthattotal,eur3.762million(prioryear:eur3.701million)relatetoapurchasepriceobligationforacquisitionofadditionalsharesinasub-sidiaryalreadyincludedinconsolidationandrecognisedatpresentvalue,andeur4.199milliontobankloans(prioryear:eur4.614million).thepurchasepriceobligationsderivingfromputoptionsandrecognisedinthepreviousyearatpresentvalueunderthemedium-andlong-termfinancialliabilities(eur16.675million)werereclassifiedascurrent financial liabilitiesonaccountof theirpaymentterms.
otherliabilities(non-Current)(25)
othernon-currentliabilities,ateur12thousand,resultfromloanliabilities(prioryear:eur1.052million).thedeclinerelativetotheyearbeforeismainlyduetotheredemptionofliabilitiesfortheacquisitionofdistributionrights.theseliabilitiesaredueinonetofiveyears.
thecompositionandremainingtermoftheliabilitiesasat31december2009areshowninthefollowingstatementofliabilities:
Statement of liabilities Total Remaining term
uptooneyear
betweenoneandfiveyears
1)fromtaxes2)forsocialsecurity
[EUR] [EUR] [EUR] [EUR]
financialliabilities 33,179,266 25,217,733 7,961,533(2008:eur30.016m) (2008:eur5.026m) (2008:eur24.989m)
advancepaymentsreceivedforevents 101,766,084 101,766,084
(2008:eur84.086m) (2008:eur84.086m)
tradepayables 35,889,823 35,889,823
(2008:eur31.693m) (2008:eur31.693m)
payablestoaffiliatedcompanies 1,230,496 1,230,496
(2008:eur1.433m) (2008:eur1.433m)
otherliabilities 125,050,741 125,038,530 12,211 1)12,298,214
(2008:eur120.927m) (2008:eur119.875m) (2008:eur1.052m) (2008:eur10.124m)
2)2,587,819
(2008:eur2.406m)
Liabilities, total 297,116,410 289,142,666 7,973,744
81
Consolidatedfinancialstatements2009
pensionprovisions(26)
thesubsidiariesmareklieberbergkonzertagenturgmbh&Co.kg,ticketones.p.a.,t.o.s.t.ticketonesistemiteatralis.r.l.andCtseventimsportsgmbhhavemadedirectand individualpension commitments to selected beneficiaries. in the 2009 financial year, benefits amountingtoeur63 thousandwere paid out of pension obligations to beneficiaries (prior year:eur52thousand).thecurrent2005gheubecktablesareapplicablewhenaccountingforpensionobli-gations.reinsurancebenefitswhichhavebeenpledgedtobeneficiaryemployeesonthebasisofpensioncommitmentsarerecognisedasplanassetsandwereoffsetagainstpensionprovisions.
31.12.2009 31.12.2008
[EUR‘000] [EUR‘000]
Composition of pension provisions:Currentmarketvalueoftheplanassets -952 -939presentvalueofthenon-fund-financedobligations 3,668 3,186Pension provisions 2,716 2,247
The following amounts were included in the income statement:regularservicecosts 167 143interestexpenses 193 195expectedincomefromplanassets -30 -27actuariallosses/gainsinthecurrentyear 202 -510Total amount included in personnel expenses 532 -199
The amount of provisions included in the balance sheet developed as follows:beginningoftheyear 2,247 2,521totalexpense/incomeincludedintheincomestatement 532 -199deferredbeneficiaries;transfertoothercompanies 0 -23amountspaid -63 -52End of year 2,716 2,247
The following essential actuarial assumptions were made:discountrate 5.3% 6.0%expectedincomefromplanassets 4.1% 4.2%futuresalaryincreases 2.0%-2.5% 2.0%-3.5%futurepensionincreases 1.0%-3.0% 1.9%-3.0%
82
Consolidatedfinancialstatements2009
Changesinplanassetsareshowninthetablebelow.planassetsarereinsurancepoliciesusedtocoverpensionobligations.incombinationwiththeincomegeneratedinpastyearsandtheasso-ciatedexpectationsregardingfuturegains,anaverageof4.1%istakenastheexpectedlong-termrateofreturn.
2009 2008
[EUR‘000] [EUR‘000]
planassets1January 939 857incomefromplanassets 13 82Plan assets 31 december 952 939
deferredtaxliabilities(27)
deferredtaxliabilities,ateur780thousand(prioryear:eur824thousand),resultfromtempo-rarydifferencesinthecarryingamountsstatedintheconsolidatedbalancesheetandinthefiscalbalancesheet.
shareholders’eQuity(28)
theparentcompanyofthegroupisorganisedasapubliclimitedcompany.asabasicprinciple,theshareholdersthereforebearliabilityonlytotheamountoftheircapitalcontribution.
referenceismadetotheconsolidatedstatementofchangesinequity.
theannualshareholders’meetingofthecompanyheldon23august2005resolvedtoincreasethesharecapitalofCtsag,previouslyamounting toeur12,000,000,byaddinganadditionaleur12,000,000 from reserves.theshare capital increasewas registeredat themunichlocalCourton6october2005,andthenewno-parvaluebearershareswerecreditedtoshareholderdepotson30october2005.asattheclosingdate,thecompanyhadthusissued24,000,000no-parvaluebearershares.eachsharerepresentsanarithmeticshareinthesharecapitalofeur1.00.
asattheclosingdate,authorisedcapitalamountedtoeur12,000,000(authorisedcapital2009).it isgranteduntil13may2014.byresolutionoftheshareholders’meetingon14may2009,themanagementboard isauthorised to increase thesharecapitalof thecompanyononeormoreoccasionsintheperiodupto13may2014,contingentonsupervisoryboardapproval,byissuingnewsharesagainstcashdepositsorcontributions inkind, thetotal increasenot toexceedeur12,000,000.the shareholdersmust begranted subscription rights to suchnewshares, but themanagementboardisauthorisedtoexcludesuchsubscriptionrights incertaincases,subjecttosupervisoryboardapproval.nousehasbeenmadesofarofthisauthorisation.
at theshareholders’meetingon21January2000,acontingentsharecapital increaseofeur180,000wasagreed(contingentcapital2000/1).thisincreaseshallbeeffectedonlytotheextentthatholdersofoptionsissuedunderthestockoptionplanonthebasisoftheauthorisationgrantedon21January2000exercisetheirstockoptions.thenewsharesparticipateintheprofitsofthecompany from thebeginningof the financialyear inwhich thestockoptionsareexercised.the
83
Consolidatedfinancialstatements2009
managementboard is authorised, subject to approval by thesupervisoryboard, to specify thefurtherdetailsofthecontingentcapitalincreaseanditsimplementation.asaconsequenceoftheshareholders’resolutionon23august2005toincreasethesharecapitaltoeur24,000,000,thiscontingentsharecapitalhasincreasedaccordinglytoeur360,000inaccordancewith§218sen-tence1aktg.
theannualshareholders’meetingheldon15may2008authorised themanagementboard toissuestockoptionsandconvertiblebonds toa total valueofup toeur275millionandwithamaximumtermof20years,conditionalonsupervisoryboardapproval,by14may2013,togranttheholdersoptionandconversionrightstoupto11,000,000newno-parbearersharesinthecom-pany,equaltosharecapitalofuptoeur11,000,000,andtoexcludeshareholders,withinlegallypermitted limits, from subscribing to the convertible bonds under certain conditions. in viewofthepossibleissueofsharestoholdersofoptionandconversionrightsonthebasisofthisauthor-isation,thecompany’sarticlesofincorporationwereamendedsimultaneouslytocreateanadditionaleur11,000,000incontingentcapital(‘contingentcapital2008’).nousehasbeenmadesofarofthisauthorisation.
byresolutionoftheshareholders’meetingheldon14may2009,thecompanywasalsoauthor-isedunder§71(1)no.8aktgtopurchasetreasurystockamountingtoupto10%oftheregisteredshare capital asat thedateof resolution, by13november 2010, and to use these for specificpurposesasdetailedintheresolution,partiallywithexclusionofsubscriptionrightsforsharehold-ers.thecountervaluepaidforthesesharesmaynotexceedorfallbelowthetradedpricebymorethan10%.theapplicablesharepriceisdefinedasthemeanclosingpriceforsharesonthexetratradingplatformduring the last five tradingdaysbeforepublicationof theoffer to purchase theshares.
thevolumeoftheofferingmaybelimited.ifthetotalsubscriptiontothebidexceedssaidvolume,quotasshallbeallocatedinproportiontothenumberofsharesofferedineachcase.theauthorisa-tiontorepurchaseownsharesmaybeexercisedundertheaforementionedrestrictionsinpartialamounts,ononeormoreoccasions,andtopursueoneormoreaims.
thepremium(§272(2)no.1hgb) for theshares issuedon thestockexchange isdisclosedundercapital reserve.aspartof thesharecapital increase implemented inoctober2005,eur12,000,000ofthecapitalreservewasconvertedtosharecapital,and12,000,000newno-parvaluebearershareswereissued.
non-Controllinginterest
thenon-controllinginterestcomprisesthesharesheldbythirdpartiesintheequityoftheconsoli-datedsubsidiaries.inaccordancewithias1,non-controllinginterestispresentedseparatelywithinshareholders’equity.thenon-controllinginterestdecreasedfromeur5.795milliontoeur4.946million.thischangemainlyresultsfromprofitdistributionstonon-controllinginterest(eur-8.111million)inthe2009financialyearandtheresultsfromtheacquisitionofsharesinasubsidiarythatwasalreadyincludedinconsolidationintheliveentertainmentsegment(eur-984thousand),bal-ancedagainstproportionatesharesintheconsolidatednetincomefor2009(eur+8.246million).
inaccordancewith ias32, theCtsgrouphasappliedsaidstandard toequity instrumentsofnon-controllingshareholdersholdingputoptions.theputoptionsheldbycertainnon-controllingshareholdersarethereforedisclosedunderfinancialliabilities.
84
Consolidatedfinancialstatements2009
4. additionaldisClosuresonfinanCialinstruments(ifrs7)4.1 finanCialassets
thefollowingtableshowsthestructureoffinancialassetsaccordingtoageasat31december2009:
Of which: not impaired but overdue at the balance sheet date
Carrying value 31.12.2009
Of which: neither impaired nor
overdue at the balance sheet date
Less than 30 days
Between 30 - 90 days
Between 90 - 180 days
More than 180 days
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
tradereceivables 21,067 17,540 697 372 574 647receivablesfromaffiliatedcompanies 4,705 2,364 179 265 283 1,614otherfinancialassets 43,865 42,320 693 163 113 478
otherfinancialassets(atfairvaluenotthroughprofitandloss) 2,016 2,016 0 0 0 0investments(atfairvaluenotthroughprofitandloss) 28 28 0 0 0 0investments(atcost) 992 992 0 0 0 0loans 435 435 0 0 0 0
73,108 65,695 1,569 800 970 2,739
Of which: not impaired but overdue at the balance sheet date
Carrying value 31.12.2008
Of which: neither impaired nor
overdue at the balance sheet date
Less than 30 days
Between 30 - 90 days
Between 90 - 180 days
More than 180 days
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
tradereceivables 19,350* 15,189 785 873 621 1,370receivablesfromaffiliatedcompanies 3,427 3,107 0 0 196 7otherfinancialassets 19,481* 17,076 1,297 311 123 533investments(atfairvaluenotthroughprofitandloss) 28 28 0 0 0 0investments(atcost) 1,128 1,128 0 0 0 0loans 1,865 1,865 0 0 0 0
45,279 38,393 2,082 1,184 940 1,910
thefollowingtableshowsthestructureoffinancialassetsaccordingtoageasat31december2008:
*reclassificationofreceivablesrelatingtoticketmoniesfrompre-salesintheticketingsegment(seeitem2inthenotestotheconsolidatedfinancialstatements)
85
Consolidatedfinancialstatements2009
withregardtoreceivablesthatareneitherimpairednoroverdue,therearenoindicationsasattheclosingdatethatdebtorsarenothonouringtheirobligations.
allowancesfordoubtfulaccountschangedasfollows:
4.2 finanCialliabilities
thefollowingtableshowsthecontractuallyagreed(undiscounted)redemptionsandinterestpay-mentsinrespectoftheoriginalfinancialliabilities,asat31december2009:
2009 2008[EUR‘000] [EUR‘000]
allowancesfordoubtfulaccountsasat1January 4,314 3,694Changeinconsolidatedcompanies -1 0Consumption -582 -715reversal -397 -433additions 2,461 1,748Currencydifferences -1 20Allowances for doubtful accounts as at 31 december 5,794 4,314
Carrying value 31.12.2009
Redemption< 1 year
Interest< 1 year
Redemption1 - 2 years
Interest1 - 2 years
Redemption3 - 4 years
Interest3 - 4 years
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
financialliabilities 33,179 -23,490 -204 -3,051 -328 -7,344 -28tradepayables 35,890 -35,873 -1 -11 0 -6 0payablestoaffiliatedcompanies 1,230 -1,193 0 -25 0 -12 0otherfinancialliabilities 98,425 -98,425 -19 0 0 0 0
168,724 -158,981 -224 -3,087 -328 -7,362 -28
86
Consolidatedfinancialstatements2009
thefollowingtableshowsthecontractuallyagreed(undiscounted)redemptionsandinterestpay-mentsinrespectoftheoriginalfinancialliabilities,asat31december2008:
Carrying value 31.12.2008
Redemption< 1 year
Interest< 1 year
Redemption1 - 2 years
Interest1 - 2 years
Redemption3 - 4 years
Interest3 - 4 years
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
financialliabilities 30,016 -5,078 -226 -18,594 -376 -7,965 -174tradepayables 31,693 -31,693 0 0 0 0 0payablestoaffiliatedcompanies 1,433 -1,433 0 0 0 0 0otherfinancialliabilities 98,013 -96,961 0 -1,052 0 0 0
161,155 -135,165 -226 -19,646 -376 -7,965 -174
theaboveincludesallinstrumentsinplaceasatthebalancesheetdateandforwhichpaymentshadalreadybeencontractuallyagreed.budgetfiguresforfutureliabilitiesarenotincluded.foreigncurrencyamountsareconvertedatthespotratesapplyingontheclosingdate.thevariableinterestpaymentsinrespectofthefinancialinstrumentswerecalculatedusingtheinterestratesfixedmostrecentlypriorto31december2009.financialliabilitiesthatarerepayableatanytimearealwaysallocatedtotheearliesttimeframe.
87
Consolidatedfinancialstatements2009
4.3 additionaldisClosuresonfinanCialinstruments
Carryingvalues,recognitionandfairvaluesforthe2009financialyearareshowninthefollowingtableaccordingtorecognitioncategories:
Balance sheet value according to IAS 39
Carrying value 31.12.2009 At amortized cost
At fair value not through
profit and loss Purchase cost Fair value
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
ASSETSCashandcashequivalents 229,794 229,794 229,794tradereceivables 21,067 21,067 20,810receivablesfromaffiliatedcompanies 4,705 4,705 4,705otherfinancialassets 43,865 43,865 44,131
otherfinancialassets(atfairvaluenotthroughprofitandloss) 2,016 2,016 2,016investments(atfairvaluenotthroughprofitandloss) 28 28 28investments(atcost) 992 992loans 435 435 492
LIABILITIESshort-termfinancialliabilitiesandcurrentportionoflong-termfinancialliabilities 25,218 25,218 25,286medium-andlong-termfinancialliabilities 7,961 7,961 7,822tradepayables 35,890 35,890 35,441payablestoaffiliatedcompanies 1,230 1,230 1,215otherfinancialliabilties 98,425 98,425 97,195
Categories according to IAS 39:loansandreceivables 299,866 299,866 299,932financialliabilitiesatamortizedcost 168,724 168,724 166,959available-for-salefinancialassets 3,036 2,044 992 2,044
88
Consolidatedfinancialstatements2009
Carryingvalues,recognitionandfairvaluesforthe2008financialyearareshowninthefollowingtableaccordingtorecognitioncategories:
*reclassificationofreceivablesrelatingtoticketmoniesfrompre-salesintheticketingsegment(seeitem2inthenotestotheconsolidatedfinancialstatements)
the fair value of a financial instrument is defined as the amount forwhich an asset could beexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.
iffinancialinstrumentsarelistedonanactivemarket,likefundshares,inparticular,therespectivelistedpricesignifiesthefairvalueonthatmarket.inthecaseofunlistedfinancinginstruments,thefairvalueiscalculatedasthepresentvalueofthefuturecashflows,takinginterestratecurvesandtherating-dependentcreditriskpremiumoftheCtsgroupintoaccount.
Balance sheet value according to IAS 39
Carrying value 31.12.2008 At amortized cost
At fair value not through
profit and loss Purchase cost Fair value
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
ASSETSCashandcashequivalents 213,072 213,072 213,072tradereceivables 19,350* 19,350 19,350receivablesfromaffiliatedcompanies 3,427 3,427 3,778otherfinancialassets 19,481* 19,481 19,563investments(atfairvaluenotthroughprofitandloss) 28 28 28investments(atcost) 1,128 1,128loans 1,865 1,865 1,877
LIABILITIESshort-termfinancialliabilitiesandcurrentportionoflong-termfinancialliabilities 5,026 5,026 5,026medium-andlong-termfinancialliabilities 24,990 24,990 24,990tradepayables 31,693 31,693 31,693payablestoaffiliatedcompanies 1,433 1,433 1,441otherfinancialliabilties 98,013 98,013 98,013
Categories according to IAS 39:loansandreceivables 257,195 257,195 257,640financialliabilitiesatamortizedcost 161,155 161,155 161,163available-for-salefinancialassets 1,156 28 1,128 28
89
Consolidatedfinancialstatements2009
forcashandcashequivalents,currenttradereceivables,receivablesfromaffiliatedcompanies,otherfinancialassets,financialliabilities,payablestoaffiliatedcompaniesandotherfinancialliabili-ties,thecarryingvaluesaresubstantiallyequaltothefairvalues,duetotheirshortremainingterm.
thefairvaluesofnon-currenttradereceivables,receivablesfromaffiliatedcompanies,otherfinan-cial assets, financial liabilities,payables toaffiliatedcompaniesandother financial liabilitiesareequaltothepresentvalueofthecashflowsassociatedwiththefinancinginstruments.
duetotheabsenceofanactivemarket,thefairvaluesforsharesandparticipationsinothercom-paniescannotbemeasuredreliably.thesefinancialinvestmentsaremeasuredatcost.
ofthetotalavailable-for-salefinancialassets,eur2.044millionareaccountedforatfairvaluebutnotthroughprofitandloss,andeur992thousandareaccountedforatcost.sincethefairvalues(eur2.044million)correspondtoobservablemarketprices,theyqualifyaslevel-oneintheifrs7fairvaluehierarchy.
theavailable-for-salefinancialassetsdevelopedasfollows:
netprofit/lossfromfinanCialinstruments
2009[EUR‘000]
available-for-salefinancialassetsasat1January 1,156additions 1,978disposals -150accumulatedothercomprehensiveincome 52available-for-salefinancialassetsasat31december 3,036
2009 2008[EUR‘000] [EUR‘000]
loansandreceivables -37 3,535financialassetsatfairvaluethroughprofitandloss 0 400available-for-salefinancialassets 60 216financialliabilities -1,632 -2,244
-1,609 1,907
90
Consolidatedfinancialstatements2009
thenetprofits/lossesintherecognitioncategoriesloansandreceivablesandfinancialliabilitiesmainlycompriseinterestincome/expenseandallowancesfordoubtfulaccounts.thegainsandlossesofavailable-for-salefinancialassetsaremainlystatedinshareholders’equity.
finanCialrisks
disclosuresregardingtherisksensuingfromfinancinginstrumentsarepresentedintheriskreportinsection8ofthemanagementreport,inaccordancewithifrs7.b6.
5. notestotheConsolidatedinComestatement
revenue(1)
grouprevenuewasincreasedyear-on-yearby15.4%,oreur62.350million,fromeur404.348million toeur466.698million.revenue(beforeconsolidationbetweensegments)breaksdownintoeur152.493million in theticketing segment (prior year:eur120.130million) andeur318.726millionintheliveentertainmentsegment(prioryear:287.994million).
Costofsales(2)
expensesarestated in the incomestatementaccording to function.the incomestatementsofthesubsidiariesarefirstlypreparedusingthetypeofexpendituremethod,withcoststhenbeingreassignedtothefunctionalexpensesofthecostofsalesmethodusingconversioncodesfortherespectivecostelements,forintegrationinthegroupfinancialstatementsaccordingtoifrs.Costelementsareassignedeitherto100%oronthebasisofworkforcenumberandpersonnelexpenses.usingthisconversioncode,materialexpenses,personnelexpenses,depreciationandamortizationandother operatingexpensesof the individual companies according to the cost of expendituremethodareassignedtocostofsales,sellingexpenses,generaladministrativeexpensesandotheroperatingexpenses.
Costofsalescomprisesallmaterialexpensesaswellasproportionalpersonnelexpenses,depre-ciationandamortizationandotheroperatingexpenses.
inthefollowing,materialexpenses,personnelexpenses,depreciationandamortizationandotheroperatingexpensesarepresentedusingthetypeofexpendituremethod.
Material expenses (according to type of expenditure method) 2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
Costofmaterials,suppliesandpurchasedmerchandise 20,827 20,251 576Costofpurchasedservices 296,177 263,468 32,709
317,004 283,719 33,285
91
Consolidatedfinancialstatements2009
personnelexpensescalculatedusingthetypeofexpendituremethodareallocatedonapercen-tagebasistocostofsales,sellingexpensesandgeneraladministrativeexpensesusingthecostofsalesmethod.oftotalpersonnelexpenses,eur17.140millionwererecognisedascostofsales(prioryear:eur15.380million),eur16.571millionassellingexpenses(prioryear:eur14.264million)andeur11.278millionasgeneraladministrativeexpenses(prioryear:eur9.840million).
employer contributions to pension insurancewere9.95% in the2009 financial year.statutorypensioninsuranceisadefinedcontributionplan.
depreciationandamortizationcalculatedusingthetypeofexpendituremethodareallocatedonapercentagebasistocostofsales,sellingexpensesandgeneraladministrativeexpensesusingthecostofsalesmethod.eur2.571millionindepreciationandamortizationwererecognisedascostofsales(prioryear:eur2.553million),eur4.054millionassellingexpenses(prioryear:eur3.280million)andeur2.069millionasgeneraladministrativeexpenses(prioryear:eur1.714million).depreciationandamortizationoffinancialassetsamountedtoeur348thousand(prioryear:eur3thousand)andwereincludedinthefinancialresult.
depreciation and amortization (according to type of expenditure method) 2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
depreciationandamortizationonintangibleassetsandproperty,plantandequipment 8,694 7,547 1,1478,694 7,547 1,147
Other operating expenses (according to type of expenditure method) 2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
otheroperatingexpenses 33,106 30,309 2,79733,106 30,309 2,797
Personnel expenses (according to type of expenditure method) 2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
wagesandsalaries 37,711 34,681 3,030socialinsurancecontributionsandexpensesforpensionandemployeesupport
7,278
4,803
2,475
44,989 39,484 5,505
materialexpensescalculatedusingthetypeofexpendituremethodareallocatedinfulltocostofsalesusingthecostofsalesmethod.
92
Consolidatedfinancialstatements2009
other operating income includes income from receivables collection, ticket insurances andlogisticsservicesotherthanticketing.
otheroperatingexpensescalculatedusing the typeofexpendituremethodareallocatedonapercentagebasis to cost of sales, sellingexpenses, general administrative expensesandotheroperatingexpensesusingthecostofsalesmethod.oftheotheroperatingexpenses,eur5.584millionwere recognisedascostofsales (prioryear:eur5.301million),eur13.786millionassellingexpenses(prioryear:eur12.369million)andeur5.904millionasgeneraladministrativeexpenses(prioryear:eur5.593million).theremainingeur7.832million(prioryear:eur7.046million)isallocatedtootheroperatingexpenses.
sellingexpenses(3)
sellingexpensesincludeexpendituresforsales,advertisingandmarketing.theeur4.498mil-lionincreaseinsellingexpensesismainlyduetohigherpersonnelexpenses(eur+2.307million),depreciationandamortization(eur+774thousand)andlossesonreceivablesandallowancesfordoubtfulaccounts(eur+404thousand).
generaladministrativeexpenses(4)
theeur2.103millionincreaseingeneraladministrativeexpensesismainlyattributabletoincrea-sedpersonnelexpenses(eur+1.438million),depreciationandamortization(eur+355thousand)andcostsforleviesandinsurances(eur+228thousand).generaladministrativeexpensesincludethoseexpensesforadministrationwhicharenotallocatedtosalesdepartment.
otheroperatinginCome(5)
otheroperatingincomecomprisesthefollowingitems:
2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
marketing 2,111 888 1,223incomefrominsurancecompensation 775 186 589incomefromchargedexpenses 671 513 158paymentsofdamages 466 237 229incomefromthereversalofallowancesfordoubtfulaccounts 397 433 -36incomefromcurrencytranslation 350 513 -163incomerelatingtootherperiods 309 414 -105incomefromwritten-offliabilities/written-offreceivables 277 2,097 -1,820incomefromthereversalofprovisions 59 198 -139otheroperatingincome 2,922 1,462 1,460
8,337 6,941 1,396
93
Consolidatedfinancialstatements2009
otheroperatingexpensesinclude,interalia,postallosses,uncancellableticketsandexpensesforlogisticsservicesotherthanticketing.
inCome/expensesfrompartiCipations(7)
incomefromparticipations,ateur8thousand,relatesprimarilytoaparticipationbyargokon-zertegmbh,würzburg(prioryear:eur30thousand).
inCome/expensesfrominvestmentsstatedateQuity(8)
oftheincomefrominvestmentsstatedatequity,eur91thousandwasattributabletogreenfieldfestivalag,hünenberg (prior year:eur169 thousand), andeur49 thousand togreensavegmbh,würzburg(prioryear:eur3thousand).
finanCialinCome(9)
financial incomecompriseseur1.995million in interest (prior year:eur4.246million) andeur21thousand(prioryear:eur426thousand)inotherfinancialincome.asexpected,financialincomemainlydeclinedasaresultoflowerinterestrates.
otheroperatingexpenses(6)
otheroperatingexpensescomprisethefollowingitems:
2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
expensesforthird-partyservices 2,040 1,326 714expensespassedontothirdparties 774 724 50Currencytranslationexpenses 587 1,022 -435leases/rent 509 540 -31expensesrelatingtootherperiods/non-operatingcosts 467 705 -238maintenanceexpenses 282 237 45donations 216 171 45Costforthesupplyofgoodssold 95 101 -6lossfromdisposaloffixedassets 84 53 31otheroperatingexpenses 2,778 2,167 611
7,832 7,046 786
94
Consolidatedfinancialstatements2009
finanCialexpenses(10)
distributionstonon-controllinginterests,ateur93thousand(prioryear:eur93thousand),andthechange in thepresentvalueofpurchasepriceobligations in respectofputoptions,ateur1.017million(prioryear:eur904thousand),werestatedasfinancialexpensesinaccordancewithias32.
apartfromthat,financialexpensesmainlycompriseinterestexpenseofeur313thousand(prioryear:eur740thousand).
taxes(11)
thetotaldisclosedtaxexpensesarecomprisedasfollows:
2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
incometax 22,748 16,258 6,490deferredtax 559 1,577 -1,018
23,307 17,835 5,472
2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
deferredtax 559 1,577 -1,018ofwhich:
fromtemporarydifferences -191 9 -200fromtaxlosscarryforwards 750 1,568 -818
Currenttaxexpensesarecalculatedbyapplyingthetaxationrulesoftherespectivecountriesinwhichthesubsidiariesoperateandgeneratetaxableincome,asapplicableonthebalancesheetdateorwhichwillbeapplicableinthenearfuture.
deferred tax expenses (net) result from the creation and/or reversal of temporary differencesbetweenifrscarryingvaluesandfiscalcarryingvalues,andfromtheformationandconsumptionofdeferredtaxesforfiscallosscarryforwards.
deferredtaxexpensesdevelopedasfollows:
95
Consolidatedfinancialstatements2009
thefollowingtableshowsthereconciliationofthetaxexpenseexpectedintherespectivefinancialyearandthetaxexpenseasactuallydisclosed.todeterminetheexpectedtaxexpensefor2009,anaveragetaxrateof31%(prioryear:31%)wasmultipliedbythepre-taxprofit.
non-Controllinginterest(12)
according to ias32,non-controlling interestneedsnotberecognised incompanieswithcorre-spondingputoptions.
thenon-controllinginterestinthenetincomefor2009iseur8.246million(prioryear:eur6.336million).theincreaseresultsprimarilyfromstrongercontributionstoearningsintheliveentertain-mentsegment.
6. notestotheCashflowstatement
CashflowfromoperatingaCtivities(1)
Cashflowfromoperatingactivitiesfellyear-on-yearbyeur50.726millionfromeur105.778mil-liontoeur55.052million.theeur50.726milliondecreasemainlyresultsfromtheeur-40.203millionchange in liabilitiesand theeur-28.682millionchange in receivablesandotherassets.strongergroupnetincomeafternon-controllinginterest(eur+10.736million)hadpositiveimpactsoncashflowfromoperatingactivities.
theeur40.203milliondecreaseincashflowfromliabilitiesisattributable, inparticular,totheeur13.660milliondecreaseinadvancepaymentsreceivedbytheliveentertainmentsegment,andtotheeur30.483milliondecreaseinliabilitiesaccruingfromticketmoniesthathavenotyetbeeninvoiced.
2009 2008
[EUR‘000] [EUR‘000]
profitfromordinarybusinessactivities 71,496 53,378
Adjustments to tax expenses
Expected income tax 22,164 16,547deviationduetobasisofcalculationformunicipaltradetax -138 -213deviationsfromexpectedtaxrate -563 0Changesinvalueadjustmentofdeferredtaxassets/liabilties 0 477losseswithouttheformationofdeferredtaxassets 863 694Changesofdeferredtaxesduetochangesoftaxratesandtaxlaw 0 4non-taxableincomeandnon-deductibleexpenses 627 482othertaxeffects 354 -156Income tax according to income statement 23,307 17,835
96
Consolidatedfinancialstatements2009
asatthebalancesheetdateof31december2008,theliabilitiesfromadvancepaymentsreceivedintheliveentertainmentsegment increasedtoanabove-averageextentduetoticketpre-salesforamajortourin2009.duetothislargeamountofadvancepaymentsreceivedasatthe2008balancesheetdate,cashflowinthe2008financialyearincreasedbyeur+31.340million.asatthebalance sheet dateof 31december2009, theadvancepayments receivedhave increased(eur+17.680million),buttheincreasewaslessthaninthe2008financialyear,withtheresultthatanegativecashfloweffectofeur-13.660millionresultsfromchangesintheadvancepaymentsreceived.
asatthebalancesheetdateof31december2008,otherliabilitiesrelatingtoticketmoniesnotyetinvoicedincreasedduethehighlevelofticketpre-salesforamajortour(interaliaaC/dC)thatwasheldinthefirsthalfof2009.theseticketmonieshadnotyetbeenpaidtothepromotersasatthe2008balancesheetdate.thispaymentwasmadeatthebeginningofthe2009financialyear.thestrongincreaseintheseliabilitiesinrespectofticketmoniesasatthe2008balancesheetdateresultedinincreasedcashflowofeur+32.113millioninthe2008financialyear.asatthebalancesheetdateof31december2009,theamountofliabilitiesinrespectofticketmonieswasalmostatthesamelevelastheyearbefore,withtheresultthatthechangeinliabilitiesinrespectofticketmoniesledtoacashflowofonlyeur+1.630millioninthe2009financialyear.thus,thechangesinliabilitiesinrespectofticketmoniesresultedinanegativecashfloweffectofeur-30.483millioninthepastfinancialyear.
asatthebalancesheetdateof31december2009,receivablesandotherassetswereatahighlevel,whichismainlyattributabletohigherreceivablesrelatingtoticketmoniesfrompre-salesandtoreceivablesrelatingtonewtypesofevents.thehigheramountofreceivablesfromticketmoniescompriseticketmoneyreceivablesdueforpaymentintheshortterm,interaliaascreditcardanddirectdebitpayments.Changesinthereceivablesandotherassetsresultintotalinanegativecashfloweffectofeur-28.682million.
CashflowfrominvestingaCtivities(2)
Cashoutflow for investingactivities felleur4.403million toeur14.971million.thisdeclinemainly results from less investment in intangible assets (eur -3.535million) and in connectionwiththeacquisitionofconsolidatedentities(eur-1.302million);thesedecreaseswereoffsetbyincreasedinvestment(eur+1.221million)inproperty,plantandequipment,particularlyinitinfra-structure.
CashflowfromfinanCingaCtivities(3)
Cashoutflowforfinancingactivitiesincreasedyear-on-yearbyeur8.263milliontoeur23.359million.this cashoutflowprimarily includes the dividendpayment decideduponat theannualshareholders‘meeting(eur14.639million)andpaymentstonon-controllinginterests(eur8.204million).distribution toshareholdersamounted toeur2.880millionmore than in theprioryear,whenexternalborrowing(eur5.000million)alsohadapositiveimpactoncashflowfromfinancingactivities.
97
Consolidatedfinancialstatements2009
8. segmentreporting
thegroupoperates intheleisureeventsmarketwith itsticketingandliveentertainmentdivi-sions.Ctsag,theparentcompanyofthegroup,operatesinthefieldofticketingandistheonecompanythatsetsthepaceinthisparticularsegment.statementsmadeinrespectoftheticketingsegmentapplyalsoandespeciallytoCtsag.sellingticketsforleisureeventsisthebasicobjectof theticketing segment,whichmarkets events (tickets) using itsmarket-leadingnetwork plat-form (eventim.net), the in-house ticketingproduct (eventim.inhouse), the sport ticketingproduct(eventim.tixx)andasolution for ticketsalesandadmissioncontrol instadiumsandarenas.thebasicobjectoftheliveentertainmentdivisionisorganisingandexecutingevents.
thegroupissegmentedinaccordancewiththeinternalreportingstructureandincludesthecom-ponentsrequiredbyifrs8.nomaterialchangesoccurred.
transferpricesforintercompanyservicesaredeterminedinaccordancewithnormalmarketcon-ditions.
notestothesegments
asattheendof2009,thecompaniesoperatinginthesegmentswereasfollows:
tiCketing
•Ctsag•ticketexpressgesellschaftzurherstellungundzumvertriebelektronischereintrittskartenmbh•Öts,gesellschaftzumvertriebelektronischereintrittskartenmbh•Ö-ticketnordwestgmbh•Ö-ticket-südost,gesellschaftzurherstellungundzumvertriebelektronischereintrittskartenmbh•Ö-ticket-nordosteintrittskartenvertriebgmbh•ticketexpresshungarykft.•texhungarykft.•gsogesellschaftfürsoftwareentwicklungundorganisationmbh&Co.kg•Ctseventimsolutionsgmbh
31.12.2009 31.12.2008
[EUR] [EUR]
netincomeafternon-controllinginterest 39,943,443 29,206,648Quantityofshares 24,000,000 24,000,000Earnings per share 1.66 1.22
7. earningspershare
earningspersharewerecalculatedaccordingtoias33bydividingtheconsolidatednetincomefortheyear,afterdeductionofnon-controllinginterest,bythenumberofsharesoutstanding(basicearningspershare).asat thebalancesheetdate, there isnodilutionasa resultofconvertiblebonds,stockoptionsorsimilarinstruments(potentialcommonstock).
theearningspersharearedeterminedasfollows:
98
Consolidatedfinancialstatements2009
Ticketing Live Entertainment Total for segment
2009 2008 2009 2008 2009 2008
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
externalrevenue 149,703 118,237 316,995 286,111 466,698 404,348internalrevenue 18,378 12,688 67,814 54,407 86,192 67,095Total revenue 168,081 130,925 384,809 340,518 552,890 471,443Consolidationwithinsegment -15,588 -10,795 -66,083 -52,524 -81,671 -63,319Revenue after consolidationwithin segment
152,493
120,130
318,726
287,994
471,219
408,124
•Ctseventimsportsgmbh•Ctseventimnederlandb.v.•Ctseventimschweizag•Ctseventimruo.o.o.•ticketones.p.a.•panischis.r.l.•t.o.s.t.,ticketonesistemiteatralis.r.l.•tsCeventimticket&tourist-service-Centergmbh•Ctseventimswedenab•lippupisteoy•eventimuklimited•eventimCZs.r.o.•tempodomegmbh
liveentertainment
•mareklieberbergkonzertagenturgmbh&Co.kg•peterriegerkonzertagenturgmbh&Co.kg•semmelconcertsveranstaltungsservicegmbh•fkpscorpiokonzertproduktionengmbh•argokonzertegmbh•dirkbeckerentertainmentgmbh•lskonzertagenturgmbh•pgmpromotersgroupmunichkonzertagenturgmbh•Crpkonzertagenturgmbh•palazzoproduktionengmbh,hamburg•palazzoproduktionengmbh,vienna•palazzoproductiesb.v.•actentertainmentag•palazzoproduktionenberlingmbh•oCtopusgmbhagenturfürkommunikation•show-factoryentertainmentgmbh
thesegment-relateddataweredeterminedinthefollowingway:
internalrevenuebetweenthegroupcompaniesinagivensegmenthavealreadybeenconsoli-datedatsegmentlevel.theassetswereallocatedtothesegmentsinthecourseofconsolidation.revenuebetweenthesegmentsareeliminatedintheconsolidationcolumn.serviceswereinvoicedatthenormalmarketpriceschargedtothirdparties.
theinternalandexternalrevenueofthesegmentsareshowninthefollowingtable:
99
Consolidatedfinancialstatements2009
thegroupisdividedintotheaforementionedtwosegments,whichgeneratedthefollowingfiguresafterconsolidation:
*thereturnonsalesiscalculatedbydividingthesegmentebitdabythetotalsegmentrevenue.
Ticketing
Live Entertainment
Intersegment consolidation
Group
2009 2008 2009 2008 2009 2008 2009 2008
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
revenue 152,493 120,130 318,726 287,994 -4,521 -3,776 466,698 404,348operatingprofit(ebit)
49,041
34,590
22,219
15,695
20
-3
71,280
50,282
ebitda 55,435 40,113 24,519 17,719 20 -2 79,974 57,830depreciationandamortization
-6,394
-5,523
-2,300
-2,024
0
0
-8,694
-7,547
financialresult 216 3,096profitfromordi-narybusinessactivities(ebt)
71,496
53,378taxes -23,307 -17,835netincomebeforenon-con-trollinginterest
48,189
35,543
non-controllinginterest
-8,246
-6,336
netincomeafternon-controllinginterest
39,943
29,207averagenumberofemployees
662
659
352
310
1,014
969
returnonsales* 36.4% 33.4% 7.7% 6.2% 17.1% 14.3%
thegroupinvestedatotalofeur10.292millionintheticketingsegment(includingchangeinthescopeofconsolidation).investmentsinproperty,plantandequipment(eur3.082million)mainlyrelatedtohardwarefornewitinfrastructure(includingserversfordatacentresandequipmentforboxoffices/promoters), and to operatingandofficeequipment. investments in intangible assets(includinggoodwill)amountedtoeur7.195millionandmainlyrelatedtocapitaliseddevelopmentcosts(eur2.462million)andtoadditionstogoodwillfromputoptions(eur2.957million).eur15thousandwerepaidforinvestments.amortizationofintangibleassetsamountedtoeur4.444million(prioryear:eur3.728million),anddepreciationofproperty,plantandequipmenttoeur1.950million(prioryear:eur1.795million).
100
Consolidatedfinancialstatements2009
intheliveentertainmentsegment,thegroupinvestedatotalofeur8.327million.eur2.864millionwereinvestedinproperty,plantandequipmentandeur5.342millioninintangibleassets(includinggoodwill).theadditiontogoodwill(eur5.226million)resultsfromaccountingforafutureacquisitionofsharesinasubsidiaryalreadyincludedinconsolidation.investmentsinproperty,plantandequipmentmainlyrelatedtoexhibitioninventory.eur121thousandwerepaidforinvestments.amortizationofintangibleassetsamountedtoeur515million(prioryear:eur479million),anddepreciationofproperty,plantandequipmenttoeur1.785million(prioryear:eur1.546million).
thetotalinvestmentsintheticketingandliveentertainmentsegments(changeinscopeofcon-solidation,plusadditions)areshownindetailintheconsolidatedstatementofchangesinassets.
theassetsandliabilitiesthatcanbedirectlyallocatedtoaspecificsegmentmustbedisclosedaccordingly.segmentassetsaretheoperatingassetsthatareusedbyasegmenttoperformitsoperatingactivitiesandwhichcanbeeitherdirectlyattributed to thesegmentorwhichareallo-catedtothesegmentonareasonablebasis.incometaxrefundclaimsdonotformpartofsegments’assets.segmentliabilitiesaretheoperatingliabilitiesthatresultforasegmentfromitsoperatingactivitiesandwhichcanbeeitherdirectlyattributedtothesegmentorallocatedtothesegmentonareasonablebasis.segmentliabilitiesdonotincludeincometaxliabilities,pensionprovisionsornon-controllinginterest.otheritemscompriseallassetsandliabilitieswhicharenotallocatedtotheassetsorliabilitiesofthesegments.
theassetsandliabilitiesasattheclosingdateareasfollows:
Ticketing
Live Entertainment
Other items
Intersegment consolidation
Group
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
fixedassets 105,476 102,961 40,217 35,723 0 0 -15,182 -15,180 130,511 123,504otherassets 201,091 161,821 147,216 118,383 8,805 6,975 -25,739 -5,596 331,373 281,583liabilities 176,784 154,514 149,461 122,568 12,676 9,309 -26,901 -6,741 312,020 279,650
the liabilities of theliveentertainment segment includeeur101.766million in advancepay-ments received that are posted as revenue after the respective events have taken place andaccountshavebeensettled.
101
Consolidatedfinancialstatements2009
geographiCaldisClosures
thefollowingtableshowstheexternal revenueforthe2009financialyear,brokendownbygeo-graphicaldistribution:
2009 2008
[EUR‘000] [EUR‘000]
germany 364,541 325,686austria 47,691 39,163italy 20,335 16,517othercountries 34,131 22,982
466,698 404,348
2009 2008
[EUR‘000] [EUR‘000]
germany 117,972 108,937austria 1,191 1,254italy 5,294 5,644othercountries 4,588 4,663
129,045 120,498
2009 2008
[EUR‘000] [EUR‘000]
germany 869 701austria 9 15italy 389 1,109othercountries 93 104
1,360 1,929
thecarryingvaluesofnon-current, non-financial assetsforthe2009financialyearareshowninthefollowingtableaccordingtogeographicaldistribution:
thecarryingvaluesofdeferred tax assetsforthe2009financialyearareshowninthefollowingtableaccordingtogeographicaldistribution:
102
Consolidatedfinancialstatements2009
9. employees
onaverageovertheyear,1,014employees(prioryear:969)wereemployedbythegroup.ofthattotal,576(prioryear:538)wereemployedingermany,and438(prioryear:431)inforeigncountries.
10. finanCialobligations
therentalandleasingagreementsmustbeallocatedtothe‘operatinglease’categoryinaccor-dancewithias17.therentalobligationsrelatemainlytorentalpaymentsforofficepremises,andtheleasingobligationspertainprimarilytovehicles.
therental,leasingandotherobligationsareshowninthefollowingtable:
31.12.2009 31.12.2008
< 1 year 1 - 5 years > 5 years < 1 year 1 - 5 years > 5 years
[EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000] [EUR‘000]
rentalobligations 3,560 9,274 1,922 2,430 5,145 563
leasingobligations 464 636 0 343 389 0otherobligations 624 409 129 1,230 407 229
4,648 10,319 2,051 4,003 5,941 792
Ctsagbears liability for debts owed to banks byCtseventimsolutionsgmbh.as at thebalancesheetdate,Ctseventimsolutionsgmbhhasnoliabilitiestobanks.
therearenoothercontingentliabilities.
11. eventsafterthebalanCesheetdate
thefollowingspecialeventshaveoccurredsincethebalancesheetdate:
inJanuary2010,theu.s.departmentofJusticegranteditsconsenttothemergeroflivenationinc.,thepromoterofliveevents,andticketmasterentertainmentinc.,theticketingcompany,sub-jecttocertainconditions.it isassumedthatthemergerwillnothaveanymaterial impactontheexistingticketingpartnershipagreementsbetweenlivenationandtheCtsgroup.
infebruary2010,Ctsagacquired100%ofthesharesinticketcornerholdingag,Zurich(her-einafter:ticketcorner),throughasubsidiary.foundedin1987andbasedintheCantonofZurich,ticketcornerhasaworkforceof130andoffersthepublicaround3,000ticketcorner‘salespoints’,amoderncallcentreandaninternetportal.ticketcorneristheundisputedmarketleaderinswitzer-land,witha60%shareoftheticketingmarket.inthe2009financialyear,thecompanysoldatotal
103
Consolidatedfinancialstatements2009
ofaround9.3milliontickets.thegrouprevenueamountedtoapproximatelyChf35million(aroundeur24million)in2009,withebitda(afteradjustmentfornon-recurrenteffectsandaftertakingimplementedrestructuringmeasures intoaccountonaproformabasis)amountingto justunderChf9.7million(eur6.6million),andreportedebitdaatChf6.5million(eur4.4million).thepurchasepricefortheshareswasChf65million(aroundeur44million).
disclosure,accordingtoifrs3.67f,ofthecarryingvaluesandfairvaluesrecognisedimmedia-telybeforethecombinationforeachclassofassetand(contingent)liabilitiesoftheacquiree,anddisclosureof thegoodwillwerepracticallyunfeasiblebecause interim financial statementsasattheacquisitiondateof19february2010couldnotbepresentedduetothebrevityoftime,withtheconsequencethatnopurchasepriceallocationcouldbecarriedoutatinitialconsolidation.
therearenoothereventsrequiringdisclosure.
12. pendingCourtproCeedings
thegroup is involved in pendingproceedingsand litigationasarises in thenormal courseofbusiness.intheviewofthecompany’slegalrepresentatives,therewillbenomaterial impactontheearningsperformanceandfinancialpositionofthegroupwhenthesemattersarebroughttoanend.provisionsamountingtoeur68thousandwereformedasatthebalancesheetdatetocoverlitigationexpenses.
13. deClarationofComplianCe
on19march2010,themanagementboardandthesupervisoryboardofCtsagreleasedafurtherdeclarationofcompliancewiththerecommendationsofthe‘governmentCommissiononthegermanCorporategovernanceCode’pursuantto§161aktg,andmadesaiddeclarationpermanentlyavaila-bletoshareholdersontheCtsagwebsite(http://www.eventim.de/cgi-bin/tinfo.dll?doc=invre/eng/corporate_governance/corporate_03&id=evg).
14. appliCationof§264(3)hgband§264bhgb
somecorporateenterprisesandbusinesspartnershipswithinthemeaningof§264ahgbthatareaffiliatedandconsolidatedCtsagcompanies,andforwhichtheconsolidatedfinan-cialstatementsofCtsaghavetheeffectofdischargingobligationstoprepareanddisclosefinancialstatements,makeuseoftheexemptionoptionprovidedby§264(3)hgband§264bhgb:
•Ctseventimsolutionsgmbh,bremen •gsogesellschaftfürsoftwareentwicklungundorganisationmbh&Co.kg,bremen •mareklieberbergkonzertagenturgmbh&Co.kg,frankfurt/main •peterriegerkonzertagenturgmbh&Co.kg,Cologne
104
Consolidatedfinancialstatements2009
15. notifiableseCuritiestransaCtionspursuantto§15aseCurities tradingaCt(wphg)
in the2009businessyear,nonotifiablesecurities transactions insharesof thecompanywereconductedbytheofficersofCtsag.
16. relatedpartydisClosures
according to ias24,companiesorpersons thatexercisecontrolover,orarecontrolledby thegroupmustbedisclosediftheyhavenotalreadybeenincludedasconsolidatedcompaniesintheconsolidatedfinancialstatementsofthegroup.
thetransactionsoftheCtsgroupwithrelatedpartiespertaintoreciprocalservicesandwerecon-cludedonlyatthearm’s-lengthconditionswhichnormallyapplybetweenthirdparties.themajorityshareholderofCtsagisacontrollingshareholderofothercompaniesassociatedwiththegroup.
the contractual relationshipswith relatedparties resulted in the followinggoodsand servicesbeingsoldtoandboughtfromrelatedpartiesinthe2009reportingperiod:
2009 2008
[EUR‘000] [EUR‘000]
Goods and services supplied by the Groupservicesinconnectionwithtours 6,565 6,584supplyofticketingsoftware 251 258allocationofoperatingcosts 954 344other 53 421
7,823 7,607
eur780thousandingoodsandservicesweresuppliedbythegrouptosubsidiariesnotincludedinconsolidationduetoinsignificance(prioryear:eur215thousand),whileeur266thousandingoodsandservicesweresuppliedtoassociates(prioryear:eur342thousand),andeur6.777milliontootherrelatedparties(prioryear:eur7.050million).
105
Consolidatedfinancialstatements2009
2009 2008
[EUR‘000] [EUR‘000]
Receivables fromsubsidiariesnotincludedinconsolidationduetoinsignificance 4,437 2,969associatedcompanies 47 215otherrelatedparties 1,971 1,863
6,455 5,047
2009 2008
[EUR‘000] [EUR‘000]
Liabilities tosubsidiariesnotincludedinconsolidationduetoinsignificance 1,041 302otherrelatedparties 2,115 2,107
3,156 2,409
2009 2008
[EUR‘000] [EUR‘000]
Goods and services received by the Groupfulfilmentservices 8,675 7,230tenancyagreements 682 351Callcentreoperations 3,387 2,353businessservicesagreements 1,232 885productioncostsforevents 912 895other 747 400
15,635 12,114
eur691thousandingoodsandserviceswerereceivedbythegroupfromsubsidiariesnotinclu-dedinconsolidationduetoinsignificance(prioryear:eur932thousand),whileeur201thousandingoodsandservicesweresuppliedbyassociates(prioryear:eur25thousand),andeur14.743millionweresuppliedbyotherrelatedparties(prioryear:eur11.157million).
Compensationpaidtomanagersinkeypositionsisdisclosedunderitem18ofthenotestotheconsolidatedfinancialstatements.
106
Consolidatedfinancialstatements2009
17. auditorexpenses
inthe2009financialyear,auditingexpensesofeur446thousand(prioryear:eur372thousand)andeur200thousandforotherservices(prioryear:eur162thousand)wererecognised.
18. mandatesandemolumentsofthemanagementboard
during the reporting year, themembers of themanagementboardwerenotmembers of anysupervisoryboards.
theamountsof compensationpaid to individualmembersof themanagementboardwereasfollows:
19. mandatesandemolumentsofthesupervisoryboard
themembersofthesupervisoryboardinthefinancialyearwereasfollows:
Edmund hug, Businessman, Oberstenfeld –Chairman– othersupervisoryboardmemberships: •schlottgruppeag,freudenstadt •scholzag,aalen
dr. Peter haßkamp, Lawyer, Bremen –vice-Chairman(until14may2009)– othersupervisoryboardmemberships: •egCeurogroupConsultingag,badhomburg
horst R. Schmidt, Treasurer of the German Football Association, Aschaffenburg (from14may2009) noothersupervisoryboardmemberships
Prof. Jobst w. Plog, Lawyer, hamburg –vice-Chairman(from14may2009)– othersupervisoryboardmemberships: •wallag,berlin(until25January2010) •vattenfalleuropeag,berlin(since2september2009)
themembersofthesupervisoryboardofCtsagreceivedemolumentstotallingeur80thou-sandaswellasreimbursedexpensesofeur5thousandforthe2009financialyear.
Name Fixed salary Benefits Management Bonus Total
[EUR] [EUR] [EUR] [EUR]
klaus-peterschulenberg 1,000,000 0 300,000 1,300,000volkerbischoff 250,000 11,815 105,000 366,815alexanderruoff 350,000 8,824 105,000 463,824 1,600,000 20,639 510,000 2,130,639
107
Consolidatedfinancialstatements2009
20. partiCipatingpersons
thecompanyreceivednotificationsunder§21(1)wphg(securitiestradingact)concerningpar-ticipationsexceeding3%or5%ofthevotingrights,andparticipationsincreasingbeyondorfallingbelow3%or5%ofthevotingrights.
on25march2009,J.p.morgansecuritiesltd.,london,uk,notifiedthecompanythatthevotingrightsofJpmorganChase&Co.,newyork,usa,fellbelowthe5%and3%thresholdson23march2009andthatitheld0%ofthevotingrightsinCtsagonthelatterdate.
on25march2009,J.p.morgansecuritiesltd.,london,uk,notifiedthecompanythatthevotingrightsofJpmorganassetmanagementholdingsinc.,newyork,usa,fellbelowthe5%and3%thresholdson23march2009andthatitheld0%ofthevotingrightsinCtsagonthelatterdate.
on9July2009,dechertllp,munich,germany,notifiedthecompanythatthethevotingrightsoftremblantpartnersltd.,grandCayman,Caymanislands,hadfallenbelowthe5%thresholdon3april2009andthatitheld4.99%ofthevotingrightsinCtsagonthelatterdate.
tremblantholdingsllC,newyork,usa, notified the company, correcting its notificationof 9July2009,thatitsvotingrightsexceededthe3%and5%thresholdson3July2009,thatitsshareofvotingrightsinCtsagamountedto5.65%onthelatterdateandthatthesevotingrightsareallocatedintheirentiretytotremblantholdingsllCbytremblantpartnersmastersfundl.p.,inaccordancewith§22(1)sentence1,no.1wphg.
on9July2009,dechertllp,munich,germany,notified thecompany that thevoting rightsoftremblantpartnersmaster fundl.p.,grandCayman,Cayman islands, had exceeded the 3%thresholdon3July2009andthatitheld4.13%ofthevotingrightsinCtsagonthelatterdate.
thecompanywasalsoinformedthattremblantpartnersltd.hadtransferredallofitssharesinCtsagheldon1July2009totremblantpartnersmasterfundl.p..thesolelimitedpartnerintremblantpartnersmasterfundl.p.istremblantpartnersltd.,whichalsoholdsallthesharesintremblantpartnersmasterfundl.p..thesolegeneralpartneroftremblantpartnersmasterfundl.p.istremblantholdingsllC,whichdoesnotholdanyshareinthecapitaloftremblantpartnersmasterfundl.p..
on24July2009,wamacquisitiongpinc.,Chicago,usa,notifiedthecompanythatitsshareofvotingrightsinCtsagfellbelowthe5%and3%thresholdson21march2008andamountedto0%ofthevotingrightsinCtsagonthelatterdate.
tremblantholdingsllC,newyork,usa,notified thecompany,correcting itsnotificationof25september2009,thatitsshareofvotingrightsinCtsagfellbelowthe5%thresholdon21septem-ber2009andamountedto4.98%onthelatterdate.ofthatamount,4.98%ofthevotingrightsareallocatedtotremblantholdingsllCinaccordancewith§22(1)sentence1,no.1wphg.allocatedvoting rightsareheldby the followingentitiescontrolledbytremblantholdingsllCandwhosevotingrightsinCtsagamountto3%ormore:tremblantpartnersmasterfundl.p..
tremblantCapitalllC,newyork,usa,notifiedthecompany,correctingitsnotificationof25sep-tember2009,thatitsshareofvotingrightsinCtsagfellbelowthe5%thresholdon21september2009andamountedto4.98%onthelatterdate.ofthatamount,4.98%areallocatedtotremblant
108
Consolidatedfinancialstatements2009
CapitalllCinaccordancewith§22(1)sentence1,no.6and§22(1)sentence2wphg.ofthefollowingshareholderswhosevotingrightsinCtsagamountto3%ormore,votingrightsareallo-catedtotremblantCapitalllC:tremblantpartnersmasterfundl.p..
tremblantCapitallp,newyork,usa,notifiedthecompany,correctingitsnotificationof25sep-tember2009,thatitsshareofvotingrightsinCtsagfellbelowthe5%thresholdon21september2009andamountedto4.98%onthelatterdate.ofthatamount,4.98%ofthevotingrightsareallo-catedtotremblantCapitallpinaccordancewith§22(1)sentence1,no.6wphg.ofthefollowingshareholderswhosevotingrightsinCtsagamountto3%ormore,votingrightsareallocatedtotremblantCapitallp:tremblantpartnersmasterfundl.p..
on13october2009,mrbrettbarakett,usa,notifiedthecompanythathisvotingrightsinCtsagexceededthe3%thresholdon24January2007andamountedto3.21%onthelatterdate.allthesevotingrightsareallocatedtomrbarakettinaccordancewith§22(1)sentence1,no.6and§22(1)sentence2wphg.ofthatamount0.73%ofthevotingrightsmustalsobeallocatedtomrbarakettinaccordancewith§22(1)sentence1,no.1wphg.
on13october2009,mrbrettbarakett,usa,notifiedthecompanythathisvotingrightsinCtsagexceededthe5%thresholdon1march2007andamountedto5.004%onthelatterdate.allthesevotingrightsareallocatedtomrbarakettinaccordancewith§22(1)sentence1,no.6and§22(1)sentence2wphg.ofthatamount1.13%ofthevotingrightsmustalsobeallocatedtomrbarakettinaccordancewith§22(1)sentence1,no.1wphg.ofthefollowingshareholderswhosevotingrightsinCtsagamountto3%ormore,votingrightsareallocatedtomrbarakett:tremblantCapitallp.
on11december2009,tremblantholdingsllC,newyork,usa,notifiedthecompanythat itsshareofvotingrightsinCtsagexceededthe5%thresholdon7december2009andamountedto5.47%onthelatterdate,andthatthesevotingrightsareallocatedtotremblantholdingsllCinaccordancewith§22(1)sentence1,no.1wphg.
on11december2009,tremblantCapitallp,newyork,usa,notifiedthecompanythatitsshareofvotingrightsinCtsagexceededthe5%thresholdon7december2009andamountedto5.47%onthelatterdate,andthatthesevotingrightsareallocatedtotremblantCapitallpinaccordancewith§22(1)sentence1,no.6wphg.
on11december2009,tremblantCapitalllC,newyork,usa,notifiedthecompanythatitsshareofvotingrightsinCtsagexceededthe5%thresholdon7december2009andamountedto5.47%onthelatterdate,andthatthesevotingrightsareallocatedtotremblantCapitalllCinaccordancewith§22(1)sentence1,no.6and§22(1)sentence2wphg.
on16november2009,tremblantpartnersmasterfundlp,grandCayman,Cayman islands,notifiedthecompanythatitsshareofvotingrightsinCtsagfellbelowthe3%thresholdon10november2009andamountedto2.94%onthelatterdate.
on2february2010,tremblantpartnersltd.,grandCayman,Caymanislands,notifiedthecom-panythatitsshareofvotingrightsinCtsagfellbelowthe3%thresholdon10november2009andamountedto2.94%onthelatterdate.ofthatamount,2.94%ofthevotingrightsareallocatedtotremblantpartnersltd.inaccordancewith§22(1)sentence1,no.2wphg.
109
Consolidatedfinancialstatements2009
alexanderruoffvolkerbischoffklaus-peterschulenberg
mr.klaus-peterschulenberg,bremen,holds50.07%ofthevotingrightsinthecompanyasat31december2009.
themanagementboardofCtsagreleasedtheconsolidatedfinancialstatementstothesuper-visoryboardon19march2009.
21. assuranCebylegalrepresentatives
tothebestofourknowledge,theconsolidatedfinancialstatementsgiveatrueandfairviewofthegroup’searningsperformanceandfinancialposition, inaccordancewiththeapplicablereportingprinciples,andthatthecombinedmanagementreportpresentsthecourseofbusiness,includingthegroup’sprofitsandsituation,inawaythataccuratelyreflectsactualcircumstancesandtruth-fullydescribesthemainopportunitiesandrisksassociatedwiththegroup’sexpecteddevelopment.bremen,19march2010
Ctseventimaktiengesellschaft
110
Consolidatedfinancialstatements2009
22. auditor’sreport
wehave audited the annual financial statements, comprising the balance sheet, the incomestatementandthenotestothefinancialstatements,togetherwiththebookkeepingsystem,andthemanagementreport,whichiscombinedwiththegroupmanagementreportoftheCtseventimaktiengesellschaft,münchen, for thebusiness year from1 January to 31december 2009.themaintenanceofthebooksandrecordsandthepreparationoftheannualfinancialstatementsandthecombinedmanagementreportinaccordancewithgermancommerciallawaretheresponsibilityoftheCompany’sboardofmanagingdirectors.ourresponsibilityistoexpressanopinionontheannualfinancialstatements,togetherwiththebookkeepingsystemandthecombinedmanagementreportbasedonouraudit.
weconductedourauditoftheannualfinancialstatementsinaccordancewith§(article)317hgb(‘handelsgesetzbuch’:‘germanCommercialCode’)andgermangenerallyacceptedstandardsfortheauditoffinancialstatementspromulgatedbytheinstitutderwirtschaftsprüfer(instituteofpublicauditorsingermany)(idw).thosestandardsrequirethatweplanandperformtheauditsuchthatmisstatementsmateriallyaffectingthepresentationofthenetassets,financialpositionandresultsofoperationsintheannualfinancialstatementsinaccordancewith(german)principlesofproperaccounting and in the combinedmanagement report are detectedwith reasonable assurance.knowledgeof thebusinessactivities and theeconomicand legal environment of theCompanyandexpectationsastopossiblemisstatementsaretakenintoaccountinthedeterminationofauditprocedures.theeffectivenessoftheaccounting-relatedinternalcontrolsystemandtheevidencesupportingthedisclosuresinthebooksandrecords,theannualfinancialstatementsandthecom-binedmanagementreportareexaminedprimarilyonatestbasiswithintheframeworkoftheaudit.theaudit includesassessing theaccountingprinciples usedand significant estimatesmadebytheCompany’sboardofmanagingdirectors,aswellasevaluatingtheoverallpresentationoftheannualfinancialstatementsandcombinedmanagementreport.webelievethatourauditprovidesareasonablebasisforouropinion.
ouraudithasnotledtoanyreservations.
inouropinionbasedonthefindingsofouraudit,theannualfinancialstatementscomplywiththelegal requirementsandgivea trueand fairviewof thenetassets, financialpositionandresultsofoperationsoftheCompanyinaccordancewith(german)principlesofproperaccounting.thecombinedmanagementreport isconsistentwith theannual financialstatementsandasawholeprovidesasuitableviewoftheCompany‘spositionandsuitablypresentstheopportunitiesandrisksoffuturedevelopment.
osnabrück,19march2010
aktiengesellschaftwirtschaftsprüfungsgesellschaft
(prof.dr.n.winkeljohann)germanpublicauditor
(dr.g.solfrian)germanpublicauditor
111
financialstatementsCtsag2009
BALANCE ShEET OF CTS AG AS AT 31 dECEMBER 2009 (hGB)
ASSETS 31.12.2009 31.12.2008
[EUR] [EUR]
A. FIXEd ASSETSI. Intangible assets1.Concessions,industrialpropertyrightsandsimilarrightsandassets,
andlicencesinsuchrightandassets
9,410,528
8,704,6872. goodwill 1,471,815 1,798,8833. paymentsonaccount 725,214 986,884
11,607,557 11,490,454II. Property, plant and equipment1.otherrealestate,landrightsandbuildings,
includingbuildingsonthird-partyproperties
164,750
65,5302. technicalequipmentandmachinery 143,108 257,5973. otherfacilities,operatingandofficeequipment 1,785,257 1,119,092
2,093,115 1,442,219III. Investments1. sharesinaffiliatedcompanies 60,439,087 59,841,2422. participations 574,835 718,292
61,013,922 60,559,534B. CURRENT ASSETS
I. Inventories1. finishedproductsandgoods 711,210 1,224,6092. paymentsonaccount 16,863 45,372
728,073 1,269,981II. Receivables and other assets1. tradereceivables 5,068,538 4,551,191*2. receivablesfromaffiliatedcompanies 19,238,717 9,888,2253. receivablesfromparticipations 31,671 117,9344. otherassets 16,373,071 7,630,704*
40,711,997 22,188,054III. Marketable securities
treasurystock 63,073 52,06963,073 52,069
IV. Cheques, cash in hand and bank balances 86,732,020 88,572,966
C. PREPAId EXPENSES 255,503 228,990
Total assets 203,205,260 185,804,267
*reclassificationofreceivablesrelatingtoticketmoniesfrompre-sales(seeitem2inthenotestothefinancialstatementsofCtsag)
FinAnciAl stAteMents oF cts Ag 20098.
112
financialstatementsCtsag2009
ShAREhOLdERS‘ EQUITY ANd LIABILITIES 31.12.2009 31.12.2008
[EUR] [EUR]
A. ShAREhOLdERS‘ EQUITYI. Share capital 24,000,000 24,000,000II. Capital reserve 23,820,894 23,820,894III. Reserve for treasury stock 63,073 52,069IV. Balance sheet profit 63,206,732 49,982,731
111,090,699 97,855,694B. PROVISIONS
1. taxprovisions 3,157,707 5,153,5122. otherprovisions 5,600,990 4,517,400
8,758,697 9,670,912C. LIABILITIES
1. liabilitiestobanks 4,500,000 5,000,0002. tradepayables 4,791,711 4,180,8573. liabilitiestoaffiliatedcompanies 531,677 333,3594. liabilitiestoparticipations 0 940,6415. otherliabilities 73,127,070 67,822,804
82,950,458 78,277,661
d. dEFERREd INCOME 405,406 0
Total shareholders‘ equity and liabilities 203,205,260 185,804,267
113
financialstatementsCtsag2009
INCOME STATEMENT OF CTS AG FOR ThE PERIOd FROM 1 JANUARY TO 31 dECEMBER 2009 (hGB)
01.01.2009 - 31.12.2009
01.01.2008 - 31.12.2008
[EUR] [EUR]
1. revenue 85,077,000 71,861,7302.Costofsales -36,942,111 -30,502,8113. Gross profit 48,134,889 41,358,919
4. sellingexpenses -10,934,362 -11,055,9095. generaladministrativeexpenses -5,337,999 -4,624,6266. otheroperatingincome 3,990,645 2,821,3517. otheroperatingexpenses -2,825,728 -2,794,1848. incomefromparticipations 3,784,073 2,939,3849. incomefromprofittransferagreements 1,729,126 2,160,23510. otherinterestandsimilarincome 1,096,137 2,154,45411. depreciationoncurrentmarketablesecurities 0 -5,56812. interestandsimilarexpenses -237,134 -436,82013. Profit from ordinary business activities (EBT) 39,399,647 32,517,236
14. incometaxes -11,521,109 -9,311,56815. othertaxes -4,860 -6,507
16. Net income for the year 27,873,678 23,199,161
114
financialstatementsCtsag2009 115
financialstatementsCtsag2009
31.12.2008
After reclassi- fication
Before reclassi- fication
Change[EUR‘000] [EUR‘000] [EUR‘000]
tradereceivables 4,551 10,925 -6,374otherassets 7,631 1,257 6,374
theotherbalancesheetitemswereretainedinunchangedform.
thelayoutofthebalancesheetcomplieswiththatspecifiedin§266hgbinconjunctionwith§152aktg;theincomestatementconformstothegermanformofincomestatementusing‘costofsalesmethod’,pursuantto§275(3)hgbinconjunctionwith§158aktg.
notestothefinanCialstatementsforthe2009finanCialyear
1. preparationoftheannualfinanCialstatements
theannualfinancialstatementsforthe2009financialyearwerepreparedinaccordancewiththeger-manCommercialCode(handelsgesetzbuch–hgb),thestockCorporationact(aktiengesetz)andthearticlesofincorporation.Ctseventimag(hereinafter:Ctsag)isalargecorporateenterprisewithinthemeaningof§267(3)hgb.optionaldisclosuresaremadeinthenotesinordertomaintainclarityandtransparency.allamountsareroundedtothenearesteuro.
2. generaldisClosuresonaCCountingandmeasurement2.1 layout
inordertoensureuniformpresentation,receivablesrelatingtoticketmoniesfrompre-sales,whichwerepreviouslycarriedastradereceivables,areaccountedforasotherassetsasatthebalancesheetdate31december2009.theprioryearcarryingvaluesoftradereceivablesandotherassetsasat31december2008wereadjustedaccordingly.
thefollowingtableprovidesanoverviewofthechangesresultingfromthisreclassification:
116
financialstatementsCtsag2009
2.2 valuation
nochangesweremadetothevaluationanddepreciationmethodsappliedinthepreviousyear.
Intangible assets and property, plant and equipmentaremeasuredatcost,includingancillaryexpenses,minussystematicdepreciationandamortization.
therecognisedgoodwillfrombringingintheticketingbusinessissubjecttosystematicstraight-lineamortizationovertheestimatedusefullifeof15years.thetrademarkrightobtainedbyacqui-ringthe‘getgo.de’internetportalintheyear2002isamortizedoveraperiodoftenyears.thedis-tributionrightsobtainedin2006byacquiringCtseventimsportsgmbh,hamburg,areamortizedoveraperiodoffiveyears.the‘globalticketingsystem’capitalisedinthecourseofimplementinginternationalrequirementsisamortizedoverausefullifeoftwelveyears.
Shareholdings in affiliated companies and participations aremeasured at cost, includingancillaryexpenses.
Inventoriesaremeasuredatcost,takingancillaryexpensesintoaccount,oratthelowermarketprices.theprinciplesofloss-freevaluationwereobserved.
Receivables and other assetsaremeasuredat theirnominalvalueminusadjustments foralldiscerniblerisks.asufficientoverallimpairmentof1%wasappliedtothenetreceivablesinordertocoverthegeneraldefaultandcreditrisk.
Shareholders’ equitywasmeasuredatnominalvalue.
Provisionsweremadeinappropriatemeasuretocoverdiscerniblerisksandcontingencies, inaccordancewiththeprinciplesofprudentbusinessjudgement.
Liabilitieswererecognisedattheirredemptionvalue.
2.3 CurrenCytranslation
receivablesandotherassetsarecarriedatthesellingrateapplicableonthebalancesheetdateoratthelowertransactionrate.liabilitiesarecarriedatthebuyingrateonthebalancesheetdateoratthehighertransactionprice.
117
financialstatementsCtsag2009
historical cost Accumulative depreciation and amortization Carrying value
01.01.2009
Additions
disposalsReclassifi-
cations
31.12.2009 01.01.2009
Additions
disposals
31.12.2009 31.12.2009
31.12.2008
[EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR]
I. Intangible assets1.Concessions,industrialpropertyrightsandsimilarrightsand
assets,andlicencesinsuchrightsandassets
32,910,448
2,248,024
4,750
719,648
35,873,370
24,205,761
2,261,830
4,749
26,462,842
9,410,528
8,704,6872. goodwill 4,906,054 0 0 0 4,906,054 3,107,171 327,068 0 3,434,239 1,471,815 1,798,8833. paymentsonaccount 986,884 457,978 0 -719,648 725,214 0 0 0 0 725,214 986,884
38,803,386 2,706,002 4,750 0 41,504,638 27,312,932 2,588,898 4,749 29,897,081 11,607,557 11,490,454II. Property, plant and equipment1.otherrealestate,landrightsandbuildings,includingbuildings
onthird-partyproperties
99,533
133,4360
0
232,969
34,003
34,216
0
68,219
164,750
65,530
2. technicalequipmentandmachinery 572,445 0 0 0 572,445 314,848 114,489 0 429,337 143,108 257,5973. otherfacilities,operatingandofficeequipment 7,413,518 1,452,944 90,265 0 8,776,197 6,294,426 762,407 65,893 6,990,940 1,785,257 1,119,092
8,085,496 1,586,380 90,265 0 9,581,611 6,643,277 911,112 65,893 7,488,496 2,093,115 1,442,219III. Investments1.sharesinaffiliatedcompanies 59,841,242 585,645 0 12,200 60,439,087 0 0 0 0 60,439,087 59,841,2422. participations 718,292 0 131,257 -12,200 574,835 0 0 0 0 574,835 718,292
60,559,534 585,645 131,257 0 61,013,922 0 0 0 0 61,013,922 60,559,534
Total 107,448,416 4,878,027 226,272 0 112,100,171 33,956,209 3,500,010 70,642 37,385,577 74,714,594 73,492,207
3. notesandCommentsonspeCifiCitemsof theannualfinanCialstatements3.1 balanCesheet
statementofChangesinfixedassetsfortheperiodfrom1Januaryto31deCember2009(hgb)
118
financialstatementsCtsag2009
historical cost Accumulative depreciation and amortization Carrying value
01.01.2009
Additions
disposalsReclassifi-
cations
31.12.2009 01.01.2009
Additions
disposals
31.12.2009 31.12.2009
31.12.2008
[EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR] [EUR]
I. Intangible assets1.Concessions,industrialpropertyrightsandsimilarrightsand
assets,andlicencesinsuchrightsandassets
32,910,448
2,248,024
4,750
719,648
35,873,370
24,205,761
2,261,830
4,749
26,462,842
9,410,528
8,704,6872. goodwill 4,906,054 0 0 0 4,906,054 3,107,171 327,068 0 3,434,239 1,471,815 1,798,8833. paymentsonaccount 986,884 457,978 0 -719,648 725,214 0 0 0 0 725,214 986,884
38,803,386 2,706,002 4,750 0 41,504,638 27,312,932 2,588,898 4,749 29,897,081 11,607,557 11,490,454II. Property, plant and equipment1.otherrealestate,landrightsandbuildings,includingbuildings
onthird-partyproperties
99,533
133,4360
0
232,969
34,003
34,216
0
68,219
164,750
65,530
2. technicalequipmentandmachinery 572,445 0 0 0 572,445 314,848 114,489 0 429,337 143,108 257,5973. otherfacilities,operatingandofficeequipment 7,413,518 1,452,944 90,265 0 8,776,197 6,294,426 762,407 65,893 6,990,940 1,785,257 1,119,092
8,085,496 1,586,380 90,265 0 9,581,611 6,643,277 911,112 65,893 7,488,496 2,093,115 1,442,219III. Investments1.sharesinaffiliatedcompanies 59,841,242 585,645 0 12,200 60,439,087 0 0 0 0 60,439,087 59,841,2422. participations 718,292 0 131,257 -12,200 574,835 0 0 0 0 574,835 718,292
60,559,534 585,645 131,257 0 61,013,922 0 0 0 0 61,013,922 60,559,534
Total 107,448,416 4,878,027 226,272 0 112,100,171 33,956,209 3,500,010 70,642 37,385,577 74,714,594 73,492,207
119
financialstatementsCtsag2009
the eur 4.878 million in additions to fixed assets mainly comprise additions to intangibleassets (eur 2.706 million) and to property, plant and equipment (eur 1.586 million). theadditionstointangibleassetsresultprimarilyfromfurtherdevelopmentofthe‘globalticketingsystem’(eur2.335million).theadditionstoproperty,plantandequipmentmainlyrelatetoithardwareforoperatingthe‘globalticketingsystem’andforconnectingboxofficestothe‘globalticketingsystem’(eur1.263million).
Receivables and other assets,ateur2.380million,havearemainingtermbetweenoneandfiveyears.otherassetscomprisereceivablesfromprepaidcapitalgainstax,ateur622thousand,whichdonotariseinlegaltermsuntilaftertheclosingdate.
Receivables from affiliated companies include trade receivables amounting toeur3.533million.
thetreasury stockincludedinmarketablesecuritiescomprises2,175shares.theseshareswerepurchasedon31July2007atapriceofeur28.99pershareandrepresent0.009%ofthesharecapital.thenominalamountofsharecapitaltheyrepresentiseur2,175.thistreasurystockwaspurchasedonthebasisofauthorisationbytheshareholders’meeting,toserveasinvestedcapitalorforpaymentofpurchasepricesintheeventofmergers,businessacquisitionsortheacquisitionofholdingsinothercompanies.
Prepaid expensesmainlycompriseeur29 thousand inprepaidcommissionexpenses (prioryear:eur39thousand),eur43thousandinmaintenanceexpenses(prioryear:eur45thousand)andeur61thousandinpromotionexpenses(prioryear:eur61thousand).
theannualshareholders’meetingofthecompanyheldon23august2005resolvedtoincreasetheshare capitalofCtsag,previouslyamountingtoeur12,000,000,byaddinganadditionaleur12,000,000 from reserves.theshare capital increasewas registeredat themunichlocalCourton6october2005,andthenewno-parvaluebearershareswerecreditedtoshareholderdepotson30october2005.asattheclosingdate,thecompanyhadthusissued24,000,000no-parvaluebearershares.eachsharerepresentsanarithmeticshareinthesharecapitalofeur1.00.
as at the closing date,authorised capital amounted toeur12,000,000 (authorised capital2009).itisgranteduntil13may2014.byresolutionoftheshareholders’meetingon14may2009,themanagementboardisauthorisedtoincreasethesharecapitalofthecompanyononeormoreoccasionsintheperiodupto13may2014,contingentonsupervisoryboardapproval,byissuingnewsharesagainstcashdepositsorcontributions inkind, thetotal increasenot toexceedeur12,000,000.the shareholdersmust begranted subscription rights to suchnewshares, but themanagementboardisauthorisedtoexcludesuchsubscriptionrights incertaincases,subjecttosupervisoryboardapproval.nousehasbeenmadesofarofthisauthorisation.
at theshareholders’meeting on 21 January 2000, acontingent share capital increase ofeur180,000wasagreed(contingentcapital2000/1).thisincreaseshallbeeffectedonlytotheextentthatholdersofoptionsissuedunderthestockoptionplanonthebasisoftheauthorisationgrantedon21January2000exercisetheirstockoptions.thenewsharesparticipateintheprofitsofthecompanyfromthebeginningofthefinancialyearinwhichthestockoptionsareexercised.themanagementboard isauthorised, subject toapproval by thesupervisoryboard, to specifythefurtherdetailsofthecontingentcapitalincreaseanditsimplementation.asaconsequenceof
120
financialstatementsCtsag2009
theshareholders’resolutionon23august2005toincreasethesharecapitaltoeur24,000,000,thiscontingentsharecapitalhasincreasedaccordinglytoeur360,000inaccordancewith§218sentence1aktg.
theannualshareholders’meetingheldon15may2008authorised themanagementboard toissuestockoptionsandconvertiblebonds toa total valueofup toeur275millionandwithamaximumtermof20years,conditionalonsupervisoryboardapproval,by14may2013,togranttheholdersoptionandconversionrightstoupto11,000,000newno-parbearersharesinthecom-pany,equaltosharecapitalofuptoeur11,000,000,andtoexcludeshareholders,withinlegallypermittedlimits,fromsubscribingtotheconvertiblebondsundercertainconditions.inviewofthepossibleissueofsharestoholdersofoptionandconversionrightsonthebasisofthisauthorisa-tion,thecompany’sarticlesofincorporationwereamendedsimultaneouslytocreateanadditionaleur11,000,000incontingentcapital(‘contingentcapital2008’).nousehasbeenmadesofarofthisauthorisation.
authorisationtopurChasetreasurystoCk
byresolutionoftheshareholders’meetingheldon14may2009,thecompanywasalsoauthori-sedunder§71(1)no.8aktgtopurchasetreasury stockamountingtoupto10%oftheregisteredsharecapitalasatthedateofresolution,by13november2010,andtousetheseforspecificpur-posesasdetailedintheresolution,partiallywithexclusionofsubscriptionrightsforshareholders.thecountervaluepaidforthesesharesmaynotexceedorfallbelowthetradedpricebymorethan10%.theapplicableshareprice isdefinedas themeanclosingprice forshareson thexetratradingplatformduring the last five tradingdaysbeforepublicationof theoffer to purchase theshares.
thevolumeoftheofferingmaybelimited.ifthetotalsubscriptiontothebidexceedssaidvolume,quotasshallbeallocatedinproportiontothenumberofsharesofferedineachcase.theauthori-sationtorepurchaseownsharesmaybeexercisedundertheaforementionedrestrictionsinpartialamounts,ononeormoreoccasions,andtopursueoneormoreaims.
thepremium(§272(2)no.1hgb) for theshares issuedon thestockexchange isdisclosedundercapital reserve.aspartofthesharecapital increaseimplementedinoctober2005,eur12,000,000ofthecapitalreservewasconvertedtosharecapital,and12,000,000newno-parvaluebearershareswereissued.
121
financialstatementsCtsag2009
thebalancesheetprofitdevelopedasfollows:
31.12.2009 31.12.2008
[EUR‘000] [EUR‘000]
balancesheetprofitasat31december2008/2007 49,983 38,537Changesinreservesfortreasurystock -11 6netincomefortheyear2009/2008 27,874 23,199
77,846 61,742
dividends2009/2008 -14,639 -11,759Balance sheet profit as at 31 december 2009/2008 63,207 49,983
Other provisions includeeur1.421million inprovisions for personnel expenses (prior year:eur1.379million),eur48 thousand for legal, consultancyand litigationexpenses (prioryear:eur71 thousand), eur1.295million for outstanding supplier invoices (prior year: eur786thousand),eur2.012millionforoutstandingcommission(prioryear:eur1.594million),eur90thousandforoutstandingcreditnotes(prioryear:eur66thousand),eur72thousandforsuper-visoryboardmeetings(prioryear:eur100thousand),andeur270thousandforaccountingandauditingexpenses(prioryear:eur201thousand).
theliabilities to affiliated companiesarealltradepayables.
122
financialstatementsCtsag2009
Other liabilities,ateur73.127million,mainlycompriseeur68.119millioninliabilitiesforticketmoniesnotyet invoiced(prioryear:eur60.951million).the liabilities for ticketmoniesnotyetinvoicedresultprimarilyfrompre-salesforfutureeventsandtours.theliabilitiesforticketmoniesnotyet invoicedareoffsetbybankbalancesandby receivables in respectofoutstanding ticketmonies,asstatedunderotherassets.other liabilities includeeur15.065million in liabilities toaffiliatedcompaniesinrespectofticketmoniesnotyetinvoiced.
Statement of liabilities Total Remaining term
uptooneyear
betweenonandfiveyears
1)fromtaxes2)forsocialsecurity
[EUR] [EUR] [EUR] [EUR]
liabilitiestobanks 4,500,000 500,000 4,000,000(2008:eur5.000m) (2008:eur0.500m) (2008:eur4.500m)
tradepayables 4,791,711 4,791,711
(2008:eur4.181m) (2008:eur4.181m)
liabilitiestoaffiliatedcompanies 531,677 531,677
(2008:eur0.333m) (2008:eur0.333m)
liabilitiestoparticipations 0 0(2008:eur0.941m) (2008:eur0.941m)
otherliabilities 73,127,070 73,127,070 0 1)1,880,525
(2008:eur67.823m) (2008:eur66.772m) (2008:eur1.051m) (2008:eur2.011m)
2)2,259
(2008:eur0.002m)
Liabilities, total 82,950,458 78,950,458 4,000,000
theresidualtermsofliabilitiesasat31december2009areshowninthefollowingstatementofliabilities:
123
financialstatementsCtsag2009
3.2 inComestatement
Revenueisbrokendownasfollows:
revenuewasmainlygeneratedonthedomesticgermanmarket.
Material expensescomprisedthefollowingitemspursuantto§275(2)no.5hgb:
Personnel expensescomprisedthefollowingitemspursuantto§275(2)no.6hgb:
Material expenses (according to type of expenditure method) 2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
Costofpurchasedmerchandise 1,342 722 620Costofpurchasedservices 31,372 25,979 5,393
32,714 26,701 6,013
2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
Ticket revenue 73,083 61,463 11,620
Other ticketing revenuedatalinecharges 2,719 2,869 -150systemrental/maintenance/installation 4,010 2,860 1,150salesofmerchandise 837 258 579packagetours 1,517 2,500 -983other 2,911 1,912 999
85,077 71,862 13,215
Personnel expenses (according to type of expenditure method) 2009 2008 Change
[EUR‘000] [EUR‘000] [EUR‘000]
wagesandsalaries 8,435 7,234 1,201socialsecuritycontributionsandexpensesforpensionandemployeesupport
993
953
40
9,428 8,187 1,241
124
financialstatementsCtsag2009
Selling expenses for the2009financialyear includeeur327thousand in fullamortizationofgoodwill (prior year:eur327 thousand),eur99 thousand in proportional amortization (51%)of the trademark right for the ‘getgo.de’ internet portal acquired (prior year:eur99 thousand),aswellaseur536thousandinproportionaldepreciationandamortization(51%)ofdistributionrights (eur536 thousand; prior year:eur536 thousand), software (eur518 thousand; prioryear: eur277 thousand) and property, plant and equipment (eur465 thousand; prior year:eur456thousand).theremainingamountofproportionaldepreciationandamortization(49%)oftheseintangibleassetsandproperty,plantandequipmentisallocatedtocostofsalesorgeneraladministrativeexpenses.
Other operating incomeincludeseur418thousandinnon-periodicincomefromthereversalofprovisions(prioryear:eur169thousand),eur17thousandinincomefromwritten-offliabilities(prioryear:eur110thousand)andeur45thousandinretroactiverefunds(prioryear:eur70thousand).
Other operating expenses includeeur58thousandinnon-periodicexpensesfromfollow-upinvoices(prioryear:eur326thousand).
theeur3.784millioninincome from participationswasgeneratedentirelybyaffiliatedcom-panies(prioryear:eur2.939million).
Other interest and similar income includeeur382 thousand in income fromaffiliated com-panies(prioryear:eur276thousand).
Taxes on incomeincludeeur5.691millioninmunicipaltradetax(prioryear:eur4.546million),eur5.538millionincorporationtax(prioryear:eur4.516million),eur304thousandinsolidaritysupplement tocorporation tax for the2009 financialyear (prioryear:eur248 thousand)andaeur12thousandtaxrefundforpreviousyears(prioryear:eur2thousandtaxexpense).
Other taxesamountingtoeur5thousand(prioryear:eur7thousand)comprisevehicle taxexpenses.
inaccordancewith§158aktgthereconciliationofnetincomefortheyeartobalancesheetprofitisasfollows:
fromthebalancesheetprofitofeur49.983adividendofeur14.639millionwasdistributedmillionandtheremainingeur35.344millionwascarriedforwardtothenewaccount.
31.12.2009 31.12.2008
[EUR‘000] [EUR‘000]
netincomefortheyear 27,874 23,199profitcarriedforward 35,344 26,778Changesinreservesfortreasurystock -11 6Balance sheet profit as at 31 december 2009/2008 63,207 49,983
125
financialstatementsCtsag2009
4. otherdisClosures4.1 ContingentliabilitiesandotherfinanCialobligations
thecompanybearsliabilityfordebtsowedtobanksbyCtseventimsolutionsgmbh,bremen.asatthebalancesheetdate,Ctseventimsolutionsgmbhhasnoliabilitiestobanks.
asatthereportingdate,therewerecontingentliabilitiesamountingtoeur34.175million(prioryear:eur31.756million).thereofeur26.204millionareduewithinoneyear.
theseobligationsarepartly conditionalbidsamounting toeur1.837million (prior year:eur4.370million)thatCtsagmadeinordertoacquireadditionalsharesinsubsidiaries.theobligationresultingfromconditionalpurchaseoffersrelatestoputoptionsthathavenotyetbeenexercised.
there are purchaseprice obligations amounting toeur5.246million (prior year:eur3.701million) for futureacquisitionsof shares in subsidiariesalready included in consolidation.theseobligationsweremeasuredonthebasisoffutureoperatingresultsofthesubsidiaries.
another contingent liability concerns a purchase-price obligation (put option) entered into byeventimonlineholdinggmbh,bremen.thecommitmentdependsonfutureoperatingresultsofthesubsidiaryand isestimatedateur20.593million(prioryear:eur16.675million)asat thebalancesheetdate.
otherfinancialobligationsrelatingtoshort-andmedium-termrentalandleasecontractsandothercontractualagreementsamounttoeur6.499million(prioryear:eur5.300million).ofthattotal,eur2.291million(prioryear:eur1.798million)haveamaturityofoneyearorless.futurerentalobligationsaccount foreur5.576million(prioryear:eur3.816million), leasingobligations foreur260thousand(prioryear:eur164thousand)andotherobligationsforeur663thousand(prioryear:eur1.320million).theotherfinancialcommitmentsareeur77thousandtoaffiliatedcompanies(prioryear:eur5thousand).
4.2 appropriationofearnings
in the2009 financial year,Ctsaggeneratedeur27.874million innet incomeaccording togermanCommercialCode.themanagementboardandsupervisoryboardproposetotheshare-holders’meetingthatadividendofeur19.918million(eur0.83pereligibleshare)bedistributedandthattheremainingeur7.956millionbecarriedforwardtothenewaccount.
4.3 listofpartiCipations
alistofshareholdingsispublishedintheelectronicfederalgazette.
126
financialstatementsCtsag2009
themembersofthesupervisoryboardinthe2009financialyearwereasfollows:
Edmund hug, Businessman, Oberstenfeld –Chairman– othersupervisoryboardmemberships: •schlottgruppeag,freudenstadt •scholzag,aalen
dr. Peter haßkamp, Lawyer, Bremen –vice-Chairman(until14may2009)– othersupervisoryboardmemberships: •egCeurogroupConsultingag,badhomburg
horst R. Schmidt, Treasurer of the German Football Association, Aschaffenburg (from14may2009) noothersupervisoryboardmemberships
Prof. Jobst w. Plog, Lawyer, hamburg –vice-Chairman(from14may2009)– Other supervisory board memberships: •wallag,berlin(until25January2010) •vattenfalleuropeag,berlin(from2september2009)
themembersofthesupervisoryboardofCtsagreceivedemolumentstotallingeur80thousandaswellasreimbursedexpensesofeur5thousandforthe2009financialyear.
4.4 exeCutivebodiesofCtsag
themembersofthemanagementboardinthefinancialyearwereasfollows:
Klaus-Peter Schulenberg, Bremen–Chiefexecutiveofficer– –directorforCorporatestrategy,newmediaandmarketing–
dipl.-Ökonom Volker Bischoff, Stuhr –financedirector–
dipl.-Betriebswirt Alexander Ruoff, Bremen –directorforsalesandresearch&development–
theamountsof compensationpaid to individualmembersof themanagementboardwereasfollows:
Name Fixed salary Benefits Management Bonus Total
[EUR] [EUR] [EUR] [EUR]
klaus-peterschulenberg 1,000,000 0 300,000 1,300,000volkerbischoff 250,000 11,815 105,000 366,815alexanderruoff 350,000 8,824 105,000 463,824
1,600,000 20,639 510,000 2,130,639
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4.5 employees
onaverage,140personswereemployedbythecompanyduringtheyear.thesewereallsalariedemployees.
4.6 deClarationConCerningtheCorporategovernanCeCode
thedeclarationby themanagementboardand thesupervisoryboardof the companypursu-antto§161aktg,regardingtheextenttowhichtherecommendationsofthegermanCorporategovernanceCodehavebeenandare being compliedwith, andwhich recommendationswerenotorarenotapplied,wassubmittedandmadepermanentlyavailabletotheshareholdersonthecompany’swebsite (http://www.eventim.de/cgi-bin/tinfo.dll?doc=invre/eng/corporate_governance/corporate_03&id=evg).
4.7 partiCipatingpersons
thecompany receivednotificationsunder § 21 (1)wphg (securitiestradingact) concerninginvestmentsexceeding3%or5%ofthevotingrights,andinvestmentsincreasingbeyondorfallingbelow3%or5%ofthevotingrights.
on25march2009,J.p.morgansecuritiesltd.,london,uk,notifiedthecompanythatthevotingrightsofJpmorganChase&Co.,newyork,usa,fellbelowthe5%and3%thresholdson23march2009andthatitheld0%ofthevotingrightsinCtsagonthelatterdate.
on25march2009,J.p.morgansecuritiesltd.,london,uk,notifiedthecompanythatthevotingrightsofJpmorganassetmanagementholdingsinc.,newyork,usa,fellbelowthe5%and3%thresholdson23march2009andthatitheld0%ofthevotingrightsinCtsagonthelatterdate.
on9July2009,dechertllp,munich,germany,notifiedthecompanythatthethevotingrightsoftremblantpartnersltd.,grandCayman,Caymanislands,hadfallenbelowthe5%thresholdon3april2009andthatitheld4.99%ofthevotingrightsinCtsagonthelatterdate.
tremblantholdingsllC,newyork,usa, notified the company, correcting its notificationof 9July2009,thatitsvotingrightsexceededthe3%and5%thresholdson3July2009,thatitsshareofvotingrightsinCtsagamountedto5.65%onthelatterdateandthatthesevotingrightsareallocatedintheirentiretytotremblantholdingsllCbytremblantpartnersmastersfundl.p.,inaccordancewith§22(1)sentence1,no.1wphg.
on9July2009,dechertllp,munich,germany,notified thecompany that thevoting rightsoftremblantpartnersmaster fundl.p.,grandCayman,Cayman islands, had exceeded the 3%thresholdon3July2009andthatitheld4.13%ofthevotingrightsinCtsagonthelatterdate.
thecompanywasalsoinformedthattremblantpartnersltd.hadtransferredallofitssharesinCtsagheldon1July2009totremblantpartnersmasterfundl.p..thesolelimitedpartnerintremblantpartnersmasterfundl.p.istremblantpartnersltd.,whichalsoholdsallthesharesintremblantpartnersmasterfundl.p..thesolegeneralpartneroftremblantpartnersmasterfundl.p.istremblantholdingsllC,whichdoesnotholdanyshareinthecapitaloftremblantpartnersmasterfundl.p..
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on24July2009,wamacquisitiongpinc.,Chicago,usa,notifiedthecompanythatitsshareofvotingrightsinCtsagfellbelowthe5%and3%thresholdson21march2008andamountedto0%ofthevotingrightsinCtsagonthelatterdate.
tremblantholdingsllC,newyork,usa,notified thecompany,correcting itsnotificationof25september2009,thatitsshareofvotingrightsinCtsagfellbelowthe5%thresholdon21septem-ber2009andamountedto4.98%onthelatterdate.ofthatamount,4.98%ofthevotingrightsareallocatedtotremblantholdingsllCinaccordancewith§22(1)sentence1,no.1wphg.allocatedvoting rightsareheldby the followingentitiescontrolledbytremblantholdingsllCandwhosevotingrightsinCtsagamountto3%ormore:tremblantpartnersmasterfundl.p..
tremblantCapitalllC,newyork,usa,notifiedthecompany,correctingitsnotificationof25sep-tember2009,thatitsshareofvotingrightsinCtsagfellbelowthe5%thresholdon21september2009andamountedto4.98%onthelatterdate.ofthatamount,4.98%areallocatedtotremblantCapitalllCinaccordancewith§22(1)sentence1,no.6and§22(1)sentence2wphg.ofthefollowingshareholderswhosevotingrightsinCtsagamountto3%ormore,votingrightsareallo-catedtotremblantCapitalllC:tremblantpartnersmasterfundl.p..
tremblantCapitallp,newyork,usa,notifiedthecompany,correctingitsnotificationof25sep-tember2009,thatitsshareofvotingrightsinCtsagfellbelowthe5%thresholdon21september2009andamountedto4.98%onthelatterdate.ofthatamount,4.98%ofthevotingrightsareallo-catedtotremblantCapitallpinaccordancewith§22(1)sentence1,no.6wphg.ofthefollowingshareholderswhosevotingrightsinCtsagamountto3%ormore,votingrightsareallocatedtotremblantCapitallp:tremblantpartnersmasterfundl.p..
on13october2009,mrbrettbarakett,usa,notifiedthecompanythathisvotingrightsinCtsagexceededthe3%thresholdon24January2007andamountedto3.21%onthelatterdate.allthesevotingrightsareallocatedtomrbarakettinaccordancewith§22(1)sentence1,no.6and§22(1)sentence2wphg.ofthatamount0.73%ofthevotingrightsmustalsobeallocatedtomrbarakettinaccordancewith§22(1)sentence1,no.1wphg.
on13october2009,mrbrettbarakett,usa,notifiedthecompanythathisvotingrightsinCtsagexceededthe5%thresholdon1march2007andamountedto5.004%onthelatterdate.allthesevotingrightsareallocatedtomrbarakettinaccordancewith§22(1)sentence1,no.6and§22(1)sentence2wphg.ofthatamount1.13%ofthevotingrightsmustalsobeallocatedtomrbarakettinaccordancewith§22(1)sentence1,no.1wphg.ofthefollowingshareholderswhosevotingrightsinCtsagamountto3%ormore,votingrightsareallocatedtomrbarakett:tremblantCapitallp.
on11december2009,tremblantholdingsllC,newyork,usa,notifiedthecompanythat itsshareofvotingrightsinCtsagexceededthe5%thresholdon7december2009andamountedto5.47%onthelatterdate,andthatthesevotingrightsareallocatedtotremblantholdingsllCinaccordancewith§22(1)sentence1,no.1wphg.
on11december2009,tremblantCapitallp,newyork,usa,notifiedthecompanythatitsshareofvotingrightsinCtsagexceededthe5%thresholdon7december2009andamountedto5.47%onthelatterdate,andthatthesevotingrightsareallocatedtotremblantCapitallpinaccordancewith§22(1)sentence1,no.6wphg.
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alexanderruoffvolkerbischoffklaus-peterschulenberg
on11december2009,tremblantCapitalllC,newyork,usa,notifiedthecompanythatitsshareofvotingrightsinCtsagexceededthe5%thresholdon7december2009andamountedto5.47%onthelatterdate,andthatthesevotingrightsareallocatedtotremblantCapitalllCinaccordancewith§22(1)sentence1,no.6and§22(1)sentence2wphg.
on16november2009,tremblantpartnersmasterfundlp,grandCayman,Cayman islands,notifiedthecompanythatitsshareofvotingrightsinCtsagfellbelowthe3%thresholdon10november2009andamountedto2.94%onthelatterdate.
on2february2010,tremblantpartnersltd.,grandCayman,Caymanislands,notifiedthecom-panythatitsshareofvotingrightsinCtsagfellbelowthe3%thresholdon10november2009andamountedto2.94%onthelatterdate.ofthatamount,2.94%ofthevotingrightsareallocatedtotremblantpartnersltd.inaccordancewith§22(1)sentence1,no.2wphg.
mr.klaus-peterschulenberg,bremen,holds50.07%of thevotingrights in thecompanyasat31december2009.
4.8 auditorexpenses
disclosureofthefeespaidtothecompany’sauditoriswaivedbecausethesedetailsareprovidedinitem17oftheconsolidatedfinancialstatements.
4.9 assuranCebylegalrepresentatives
to the best of our knowledge, the annual financial statements give a true and fair viewof thecompany’searningsperformanceandfinancialposition,inaccordancewiththeapplicablereportingprinciples,andthatthecombinedmanagementreportpresentsthecourseofbusiness,includingthecompany’sprofitsandsituation,inawaythataccuratelyreflectsactualcircumstancesandtruthfullydescribesthemainopportunitiesandrisksassociatedwiththecompany’sexpecteddevelopment.
bremen,19march2010
Ctseventimag
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5. auditor’sreport
wehaveauditedtheconsolidatedfinancialstatementspreparedbytheCtseventimaktienge-sellschaft,münchen,comprisingthestatementoffinancialposition,theincomestatement,thestate-mentofcomprehensiveincome,thestatementofchangesinequity,thecashflowstatementandthenotestotheconsolidatedfinancialstatements,togetherwiththegroupmanagementreport,whichiscombinedwiththemanagementreportoftheCtseventimaktiengesellschaft,münchen,forthebusinessyearfrom1Januaryto31december2009.thepreparationoftheconsolidatedfinancialstatementsandthecombinedmanagementreportinaccordancewiththeifrss,asadoptedbytheeu,andtheadditionalrequirementsofgermancommerciallawpursuantto§(article)315aabs.(paragraph)1hgb(‘handelsgesetzbuch’:germanCommercialCode)aretheresponsibilityoftheparentCompany‘sboardofmanagingdirectors.ourresponsibilityistoexpressanopinionontheconsolidatedfinancialstatementsandthecombinedmanagementreportbasedonouraudit.
weconductedourauditoftheconsolidatedfinancialstatementsinaccordancewith§317hgbandgermangenerally accepted standards for theaudit of financial statements promulgated bytheinstitutderwirtschaftsprüfer(instituteofpublicauditorsingermany)(idw).thosestandardsrequire thatweplanandperform theaudit such thatmisstatementsmateriallyaffecting thepre-sentationofthenetassets,financialpositionandresultsofoperationsintheconsolidatedfinancialstatements inaccordancewith theapplicable financial reporting frameworkand in thecombinedmanagementreportaredetectedwithreasonableassurance.knowledgeofthebusinessactivitiesandtheeconomicand legalenvironmentof thegroupandexpectationsastopossiblemisstate-mentsare taken intoaccount in thedeterminationofauditprocedures.theeffectivenessof theaccounting-relatedinternalcontrolsystemandtheevidencesupportingthedisclosuresinthecon-solidatedfinancialstatementsandthecombinedmanagementreportareexaminedprimarilyonatestbasiswithintheframeworkoftheaudit.theauditincludesassessingtheannualfinancialstate-mentsofthoseentitiesincludedinconsolidation,thedeterminationoftheentitiestobeincludedinconsolidation,theaccountingandconsolidationprinciplesusedandsignificantestimatesmadebytheCompany´sboardofmanagingdirectors,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatementsandthecombinedmanagementreport.webelievethatourauditprovidesareasonablebasisforouropinion.
ouraudithasnotledtoanyreservations.
inouropinionbasedon the findingsofouraudit theconsolidated financialstatementscomplywiththeifrssasadoptedbytheeuandtheadditionalrequirementsofgermancommerciallawpursuantto§315aabs.1hgbandgiveatrueandfairviewofthenetassets,financialpositionandresultsofoperationsofthegroupinaccordancewiththeseprovisions.thecombinedmanagementreportisconsistentwiththeconsolidatedfinancialstatementsandasawholeprovidesasuitableviewofthegroup‘spositionandsuitablypresentstheopportunitiesandrisksoffuturedevelopment.
osnabrück,19march2010
aktiengesellschaftwirtschaftsprüfungsgesellschaft
(prof.dr.n.winkeljohann)germanpublicauditor
(dr.g.solfrian)germanpublicauditor
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ContaCt
CtseventimagContrescarpe75a28195brementel.: +49(0)421/3666-0fax: +49(0)421/3666-290www.eventim.deinvestor@eventim.de
publishers´notes
publishedby:
Ctseventimag Contrescarpe75a 28195bremen tel.: +49(0)421/3666-0 fax:+49(0)421/3666-290
editorialoffiCe:
engel&Zimmermann Ctseventimag
artwork:
seChsbaelle,bremen
133