Report for the first nine months 2011 - GfK Global...2_GfK Report for the first nine months 2011 in...

Report for the f irst nine months 20 1 1

2_GfK

Report for the first nine months 2011

in EUR million1) 3. Quarter 2010 2011

Change in %

Q1–Q3 2010 2011

Change in %

2010

Earnings situation

Sales 322.5 338.5 5.0 932.1 998.5 7.1 1,294.20

Gross income from sales 108.0 113.7 5.2 298.1 323.5 8.5 421.9

Adjusted operating income 48.5 47.0 – 3.2 120.4 130.9 8.7 185.0

Margin in per cent2) 15.0 13.9 12.9 13.1 14.3

Operating income 39.7 44.4 11.8 95.8 118.0 23.1 141.4

published in 20103) 41.6 93.6 136.7

EBITDA 53.0 62.0 17.1 135.3 163.4 20.8 200.4

published in 20103) 54.9 133.1 195.7

EBIT 40.9 45.3 10.7 98.4 121.4 23.4 145.2

published in 20103) 42.8 96.2 140.6

Other financial income / expenses – 3.4 – 8.1 135.8 – 14.2 – 14.3 1.4 – 20.5

published in 20103) – 5.3 – 12.0 – 15.8

Consolidated total income 25.8 29.7 14.9 57.6 75.4 30.9 84.0

Basic earnings per share in EUR 0.61 0.73 19.7 1.36 1.80 32.4 1.99

Adjusted earnings per share in EUR4) 0.86 0.80 – 7.0 2.05 2.16 5.4 3.20

published in 20103) 0.80 2.11 3.33

Investment and finance

Cash flow from operating activity 60.4 71.7 18.7 124.4 125.2 0.7 172.0

Cash flow from investing activity – 17.1 – 12.6 – 26.5 – 68.4 – 42.8 – 37.4 – 86.2

Cash flow from financing activity – 45.6 – 3.6 – 92.1 – 63.9 9.0 114.1 – 76.9

Free cash flow after acquisitions, other investments and asset disposals 43.3 59.1 36.6 56.0 82.4 47.2 85.8

31.12.2010 30.09.2011 Change as of 31.12. in %

30.09.2010 30.09.2011 Change as of 30.09. in %

Asset and capital position

Total assets 1,649.9 1,743.4 5.7 1,578.7 1,743.4 10.4

Equity 677.5 725.8 7.1 632.3 725.8 14.8

Equity ratio 41.1 41.6 40.1 41.6

Liquidity5) 56.1 147.4 162.6 38.4 147.4 284.1

Net debt6) 428.5 372.5 – 13.0 447.4 372.6 – 16.7

Employees

No. of employees 10,546 11,328 7.4 10,244 11,328 10.6

Share of employees in the GfK companies outside Germany in per cent 82.6 82.3 – 0.3 82.6 82.3

1) Rounded2) Adjusted operating income in relation to sales3) Starting from Q1/2011, currency exchange gains and losses resulting from financial transactions are reclassified from other operating income / expenses

to other financial income / expenses; This results in changes in the figures for the previous year. The figures are reported to facilitate a comparison4) Consolidated total income attributable to equity holders of the parent plus highlighted items divided by the weighted average number of shares

in the reporting period5) Cash and cash equivalents plus securities and fixed-term deposits 6) Liabilities to banks plus pension obligations, liabilities under leases and other interest-bearing liabilities less cash and cash equivalents and

securities and fixed-term deposits

The G fK Group at a glance

The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in the three business sectors Custom Research, Retail and Technology and Media. The No. 5 market research organization worldwide operates in more than 100 countries and employs over 11,000 staff. In 2010, the GfK Group’s sales amounted to EUR 1.29 billion.

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Sales in EUR million

Month Change

1-3

310.2 280.9

1-6

660.1 609.6

1-9

998.5 932.1

2010 2011

Adjusted operating income in EUR million

Month Change

1-3

30.5 25.3

1-6

83.9 71.9

1-9

130.9 120.4

2010 2011

Earnings per share in EUR

Month Change

1-3

0.32 0.23

1-6

1.07 0.75

1-9

1.80 1.36

2010 2011

Cash flow from operating activity in EUR million

Month Change

1-3 9.1

7.1

1-6

53.5 64.0

1-9

125.2 124.4

2010 2011

Share of sectors in total sales1)

1) Figures from the Management-Information System – rounded

Custom Research60.0 %

Retail and Technology 29.0 %

Media 10.6 %

Other 0.4 %

Share of regions in total sales1)


Germany27.6 %

Western Europe/ Middle East/Africa

37.8 %

Central and Eastern Europe 7.1 %

North America14.7 %

Latin Amerika 4.2 %

Asia and the Pacific 8.6 %

+ 10.4 %

+ 8.3 %

+ 7.1 %

+ 20.5 %

+ 16.8 %

+ 8.7 %

+ 39.1 %

+ 42.7 %

+ 32.4 %

– 16.4 %

+ 0.7 %

+ 27.6 %

Business development at a glance of G fK Group

retail and technology

The sector sources data from retail (point of sale). Clients are provided with information and consultancy services, which are based on syndicated surveys and analysis of retail sales of consumer goods and services in more than 90 countries. Services include the regular publication of surveys of the market segments office communications, photographic technology and optics, domestic appliances, information technology, telecommunications, sports equipment, tourism, fashion, consumer electronics and entertainment media.

custom research

The sector offers information and consulting services for operational and strategic marketing decisions in more than 90 countries worldwide. Custom Research provides a wide range of tests and surveys, in particular regarding product and pricing policy, brand management, communications, distribution and customer loyalty. On this basis, GfK supports products and services according to the product life cycle model from their development and launch through to maturity and phase-out. The portfolio of the Custom Research sector comprises syndicated data, collected for example by the household and doctor panels, and custom research studies that are exclusively tailored to specific questions. Consum-ers represent the data sources for the Custom Research sector (point of consumers).

media

The Media sector provides information services on reach and the intensity and nature of media usage and acceptance in around 30 European countries and the USA. The offering is directed at clients from media companies, agencies and the branded goods industry. It comprises syndicated surveys as well as specific, one-off studies and analyses. The Media sector draws its information from the various media, including television, radio, print, outdoor advertising and online.

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The sectors at a glance

In EUR million

3. Quarter 2010 2011

Change in %

Q1–Q3 2010 2011

Change in %

Sales 191.3 198.8 3.9 559.4 598.2 6.9

Adjusted operating income 14.0 14.4 3.6 33.5 38.7 15.4

Margin in per cent1) 7.3 7.3 6.0 6.5

Figures from the Management-Information System – rounded 1) Adjusted operating income in relation to sales

In EUR million

3. Quarter 2010 2011

Change in %

Q1–Q3 2010 2011

Change in %

Sales 97.9 105.8 8.2 270.7 298.8 10.4

Adjusted operating income 32.1 35.8 11.4 79.4 92.1 15.9

Margin in per cent1) 32.8 33.8 29.4 30.8


In EUR million

3. Quarter 2010 2011

Change in %

Q1–Q3 2010 2011

Change in %

Sales 32.2 32.7 1.4 98.3 98.0 – 0.4

Adjusted operating income 3.3 – 0.6 – 117.3 11.2 6.4 – 43.1

Margin in per cent1) 10.3 – 1.8 11.4 6.5


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Contents

Letter to the shareholders 6

GfK share performance 7

Interim management report 8

1. General economic situation 9

2. Economic and financial development in the GfK Group 9

3. Cash flow and investment 12

4. Assets and capital structure 12

5. Trends in the sectors 13

6. Regional trends 15

7. “Own the Future” – new corporate strategy focuses on global and digital customer requirements 16

8. Number of employees 17

9. Research and development 17

10. Organization and administration 17

11. Changes in participations in the third quarter of 2011 18

12. BISS fitness and efficiency program 18

13. Important events after the reporting date of September 30, 2011 19

14. Marketing and Corporate Communications 19

15. Opportunity and risk position 19

16. Outlook 19

Consolidated financial statements 21

Notes to the consolidated financial statements 30

Additional information 32

New headlines about the euro crisis seem to dominate daily stock market developments. These are turbulent times. You will be all the more pleased to find out that GfK has continued on its positive growth course. In the first nine months of 2011, we significantly increased sales year-on-year by 7.1% to EUR 999 million. Apart from North America, we recorded strong sales growth in all the regions. Business developed particularly well in Central and Eastern Europe as well as Latin America.

We achieved a considerable increase in adjusted operating income of 8.7% to EUR 130.9 million in the first nine months of 2011. Consolidated total income rose more sharply still by 30.9% to EUR 75.4 million. We also achieved a further improvement in the margin from 12.9% to 13.1%. This very positive development was carried by the Retail and Technology and Custom Research sectors. However, income in the Media sector was affected by a one-off write-down.

Despite growing uncertainty, including rather modest business in the USA, we are confident about the remaining months of 2011. Our order book are well-filled, and at the end of October 96.8% of the orders expected for the year as a whole were already posted. The fig-ure is significantly higher than the previous year’s level. For 2011, we expect sales growth in organic terms at the upper end of our pre-vious forecast of between 5% and 6% and a margin at the previous year’s level.

Our new business strategy, “Own the Future”, will form the basis for GfK’s future from January 2012. In the last few months, we have created the necessary structures and posts, for example for global client groups and global product management. My special thanks go to all GfK employees. With their high level of commitment, they enable us to breathe life into our new strategy and expand our business at the same time.

For our clients, “Own the Future” will enhance cooperation on the basis of an extensively networked global organization whose knowledge, experience and offering they will be able to access better and faster and which will provide them with even more accurate insights into the world of consumers. In financial terms, we have also set ourselves ambitious targets in our new strategy. These include sales of around EUR 2 billion and a margin of 16% by 2015. “Own the Future” marks the beginning of a new chapter in GfK’s history. We will reinvent our company to ensure that we remain the partner of choice in market research for our clients, employees and shareholders in the future.

For me personally, an important chapter in my life will come to an end. You are already aware that after almost 20 years at the helm of GfK I have decided not to extend my contract as CEO for personal reasons. I will be saying goodbye with mixed feelings. I know that this is the right time for a change. Yet, I also find it difficult to leave after so many years at GfK. I am proud of the company I am leaving. And I am glad to be able to hand over responsibility for the company to an experienced leader, Matthias Hartmann, who will take over as CEO of GfK on December 1, 2011. I wish Matthias Hartmann every success and enjoyment in his new role. An outstanding company with committed employees in a fascinating sector awaits him.

Sincerely yours,

Prof. Dr. Klaus L. Wübbenhorst

Professor Dr. Klaus L. Wübbenhorst

Chief Executive Officer of GfK se

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After a strong price upturn at the beginning of the year, GfK shares moved sideways by the end of the first quarter of 2011. At the end of the reporting period, the shares closed at EUR 28.57, down considerably by -24% on the opening price on the first trading day in the current year.

On February 2, 2011, the GfK share price recorded a new ten-year high of EUR 41.15. The low for the year to date was recorded at EUR 27.13 on August 9. GfK shares were also unable to escape the effects of the dislocations seen on the global stock markets since the beginning of August. Since then, the shares have rebounded slightly, although volatility remains high.

Compared with the indices, the GfK share performance was average and mirrored the general volatility in the markets. Since August, the shares have significantly outperformed the Dax with a performance comparable to that of the SDax.

The peer group comparison shows GfK shares doing well. Despite erratic stock exchange movements, the GfK share price performance was better than that of competitor Ipsos and similar to that of Aegis and WPP.

In the third quarter of the year, three organizations started their coverage of GfK shares: JP Morgan Cazenove and Unicredit recommended the stock as “buy” and Whitman Howard recommended holding the stock. At the end of September, a total of 18 analysts were covering GfK shares. Of these, thirteen recommended the stock as “buy” and five rated it as “hold”. The ratings by analysts therefore steadily improved during the reporting period (December 2010: eight “buys”, six “holds” and one “sell”).

As at the end of September, the proportion of shares in free float was 43.9%. At this time, 0.4% of the shares were held by the GfK Management Board and Supervisory Board, 30.3% by institutional investors and 13.2% by private investors.

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G fK share performance

GfK share price performance from January 1, 2011, to September 30, 2011, in EUR1)

GfK SDAX DAX 30 Dow Jones Euro Stoxx Media

1) All values are indexed to the GfK share price, closing prices

41

40

39

38

37

36

35

34

33

32

31

30

29

28

27

26

January February March April May June July August September

GfK share performance 3. Quarter 2010 2011

Change in %

Q1–Q3 2010 2011

Change in %

2010

Share price at the end of the period in EUR 31.33 28.57 – 8.8% 31.33 28.57 – 8.8% 37.60

High in EUR 32.45 37.62 15.9% 32.45 41.15 26.8% 38.30

Low in EUR 27.07 28.16 4.0% 24.00 26.74 11.4% 23.80

Number of no-par shares at the end of the period in 1,000 35,948 36,584 1.8% 36,274

Stock market capitalization at the end of the period in EUR million 1,126.3 1,036.3 – 8.0% 1,363.9

n First nine months: sales up 7.1% to EUR 999 million, margin stands at 13.1% (previous year: 12.9%)

n Rise in adjusted operating income of 8.7% to EUR 130.9 million (previous year: EUR 120.4 million)

n Consolidated total income up 30.9% to EUR 75.4 million

n Regions: emerging markets with significant sales increase

n Net debt reduced by EUR 74.8 million like-for-like

n Order books record 96.8% of expected sales for the full year at the end of October

n Outlook: organic sales growth at the upper end of previous forecast of between 5% and 6% and margin at previous year’s level expected

In the third quarter of 2011, the GfK Group continued the positive growth trend already established in the first half of the year and increased sales for the first nine months of 2011 by 7.1% to EUR 999 million (same period in the previous year: EUR 932 million). At 7.0 percentage points, a major share of growth was organic. Compared with the first nine months of the previous year, adjusted operating income rose by 8.7% to EUR 130.9 million. The margin was up from 12.9% in the same period of the previous year to 13.1%. This positive development was carried by the Custom Research and Retail and Technology sectors. Income in the Media sector was affected by a one-off write-down and the income in the Other segment by costs relating to the implementation of the “Own the Future” strategy as well as non-recurring expenses for the early termination of the contract of a Management Board member. As a result of significantly lower figures for the highlighted items, EBIT rose by 23.4% on the previous year to EUR 121.4 million and consolidated total income by 30.9% to EUR 75.4 million.

With the exception of North America, all regions recorded strong sales growth. Sales growth was particularly pleasing in Central and Eastern Europe (up 18.2%) and Latin America (up 13.0%).

The order situation in the GfK Group remains very satisfactory. At the end of October, a total of 96.8% of sales expected for the whole of 2011 had already been posted or were in the order book. This was significantly higher than the previous year’s level of 94.4%.

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GfK achieves another significant increase in sales and income

1. general economic situation

Economic developments have been mixed in the year to date. In the third quarter, modest economic growth was recorded overall. The growth trend in Germany and most of the emerging markets was relatively strong, whereas most of the Western industrialized nations recorded a slowdown in the economy. The structural problems of public authorities and concerns about their impact on economic growth have now come to the fore.

2. economic and financial development in the gfk group

In the first nine months of 2011, GfK achieved a considerable upturn in sales and income year-on-year. Sales were up by 7.1% in total to EUR 999 million. Growth of 7.0 percentage points was largely of an organic nature. GfK has therefore outstripped the growth achieved by its major competitors, as was also the case in the first half of the year. Acquisitions pushed up sales by 1.2 percentage points while currency fluctuations reduced growth by 1.0 percentage point. All three sectors contributed to organic sales growth.

Despite the uncertain general economic situation, GfK achieved a pleasing increase in sales of 5.2% in organic terms in the third quarter of 2011.

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GfK Group: key figures

in Millionen Euro

3. Quarter 2010

3. Quarter 2011

Change in %

Q1–Q32010 2011

Change in %

Sales 322.5 338.5 5.0 932.1 998.5 7.1

Adjusted operating income 48.5 47.0 – 3.2 120.4 130.9 8.7

Margin in percent2) 15.0 13.9 12.9 13.1

Operating income (published in 2010)1

39.7 (41.6)

44.4 11.8 95.8 (93.6)

118.0 23.1

EBITDA (published in 2010)1

53.0 (54.9)

62.0 17.1 135.3 (133.1)

163.4 20.8

EBIT (published in 2010)1

40.9 (42.8)

45.3 10.7 98.4 (96.2)

121.4 23.4

Other financial income / expenses (published in 2010)1

– 3.4 (– 5.3)

– 8.1 135.8 – 14.2 (– 12.0)

– 14.3 1.4

Consolidated total income 25.8 29.7 14.9 57.6 75.4 30.9

Free cash flow after acquisitions, other investments and asset disposals

43.3

59.1

36.6

56.0

82.4

47.2

Earnings per share in EUR 0.61 0.73 19.7 1.36 1.80 32.4

Adjusted earnings per share in EUR3 (published in 2010)1

0.86 (0.80)

0.80 – 7.0 2.05 (2.11)

2.16 5.4

1) Starting from Q1/2011, currency exchange gains and losses resulting from financial transactions are reclassified from other operating income / expenses to other financial income / expenses; This results in changes in the figures for the previous year. The figures are reported to facilitate a comparison.

2) Adjusted operating income in relation to sales3) Consolidated total income attributable to equity holders of the parent plus highlighted items divided by the weighted average number of shares in the

reporting period

Interim management report

Adjusted operating income (hereinafter: income) rose to EUR 130.9 million in the first nine months of 2011, which represents an increase of 8.7% on the same period in the previous year. In organic terms, growth in income amounted to 9.8%. Acquisitions and currency effects marginally reduced income by 0.1 and 1.1 percentage points respectively. The Margin of the Group increased from 12.9% to 13.1%. Income in the third quarter of 2011 was considerably impacted by a write-down in the Media sector of EUR 4.5 million, applied as a result of an impairment test relating to software in use to measure TV ratings, and expenses relating to the implementation of the “Own the Future” strategy and one-off expenses incurred for the early termination of the contract of a Management Board member totaling EUR 2.9 million. Adjusted for these non-recurring factors, the margin for the third quarter amounted to 15.7% (same quarter in the previous year: 15.0%).

Within the sectors, Custom Research and Retail and Technology, in particular, achieved an increase in income for the first nine months of 15.4% and 15.9% respectively. Excluding the non-recurring factor of the write-down, the decline in income in the Media sector amounts to only 2.8%. However, as a result of the write-down, the sector’s income was down by 43.1%.

Like its competitors, the GfK Group uses adjusted operating income as a key performance indicator. The explanations regarding business performance using the adjusted operating income facilitate interpretation of the GfK Group’s business development and enhance the informative value in comparison with other major companies operating in the market research sector. Adjusted operating income is determined by eliminating expenses and income items of the sectors and the Group that distort the evaluation of operating earnings power from operating income. The balance of these expenses and income, which are referred to as highlighted items, decreased considerably compared with the previous years. In the first nine months of 2011, the highlighted items amounted to EUR -12.9 million after EUR -24.6 million in the same period of the previous year. The difference between adjusted operating income and EBIT has thus diminished considerably compared with the previous years.

The individual components of highlighted items developed as follows:

n The reorganization expenses incurred for the BISS fitness and efficiency program, which will be completed on schedule in the current year, totaled EUR 1.8 million in the first nine months of 2011 (previous year: EUR 4.5 million). These are reported under Expenses in connection with reorgani-zation and business combinations.

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Adjusted operating income1)

In EUR million

Q1–Q3 2010 published

Q1–Q3 2010 reclassified

Q1–Q3 2011

Operating income 93.6 95.8 118.0

Expenses and income in connection with reorganization and business combinations

4.5

4.5

1.8

Amortization and impairment of additional assets on acquisitions 8.9 8.9 7.6

Personnel expenses for share-based payments and long-term incentives

6.4

6.4

4.3

Remaining other operating income – 12.9 – 10.1 – 11.8

Remaining other operating expenses 19.9 14.8 11.1

Total highlighted items 26.8 24.6 12.9

Adjusted operating income 120.4 120.4 130.9

1) Rounded

n Amortization of disclosed hidden reserves from purchase price allocation (PPA) decreased in the reporting period to EUR 7.6 million compared with the like-for-like figure of EUR 8.9 million. Any unscheduled amortization is applied regularly at the end of each financial year. In this context, the brands capitalized as part of purchase price allocation will also be checked.

n Personnel expenses for share-based payment and long-term incentives amounted to EUR 4.2 million. This corresponds to a reduction of EUR 2.2 million on the previous year and is attributable to the lower share price compared with the same period in the previous year.

n The balance of Remaining other operating income and Remaining other operating expenses was EUR 0.7 million in the reporting period, after EUR -4.8 million in the previous year. This amount is impacted primarily by currency effects and the profits already reported in the first quarter from the deconsolidation of a subsidiary, in which a stake was sold.

In the period from January to September 2011, EBITDA increased by EUR 28.1 million to EUR 163.4 million (previous year: EUR 135.3 million).

At EUR 3.5 million, Income from participations was significantly up compared with EUR 2.6 million in the same quarter of the previous year.

EBIT totaled EUR 121.4 million. It rose by a pleasing 23.4% from EUR 98.4 million in the previous year.

The Other financial result, which represents the balance of other financial income and other financial expenses, stood at EUR -14.4 million after EUR -14.2 million. Interest paid to third parties increased from EUR 14.6 million to EUR 15.4 million. The rise in interest expenses following the issue of a 5-year bond was almost entirely compensated by income from derivatives to hedge against currency risks. Starting with the first quarter of 2011, currency gains and losses resulting from financial transactions have been reclassified from other result to the financial result in accordance with IFRS. This provides more appropriate reporting of the relevant items.

The Tax ratio was down from 31.7% in the previous year to 29.6%. As already explained in the last two quarterly reports, the tax ratio was affected by the fact that certain tax expenses which were previ-ously deductible are no longer recognized as such. As a result, the US dollar-related measurement of a cross-currency swap produced deferred tax expenses. This swap is expected to run to the end of 2012. In the third quarter of 2011, deferred tax expenses arising from this were considerably down on those reported in the two previous quarters.

In the first nine months, Income attributable to minority interests was up by EUR 1.2 million to EUR 9.8 million compared with the previous year.

Basic and diluted Earnings per share climbed by EUR 0.44 compared with the same period in the previous year and amounted to EUR 1.80. As at September 30, 2011, the total number of GfK SE shares in circulation was 36,503,896. The slightly higher number compared with the number of shares at the beginning of the year was due to the exercise of stock options. The program will end this year.

To increase comparability with its peer group, GfK has additionally published Adjusted earnings per share since the 2009 annual report. This is the consolidated total income attributable to the sharehold-ers of the parent company plus the highlighted items divided by the average number of shares in the reporting period. In the reporting period, adjusted earnings per share totaled EUR 2.16 (previous year: EUR 2.05).

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3. cash flow and investment

Cash flow from operating activities for the first nine months of 2011 of EUR 125.2 million was slightly up on the previous year’s level (first nine months of 2010: EUR 124.4 million). At the end of the first half of 2011, the cash flow of EUR 10.5 million was below the previous year’s level. Consequently, quarter-on-quarter, the cash flow rose considerably by EUR 11.3 million, or 18.7%.

Investments in operating business were increased by EUR 3.4 million to EUR 36.1 million, in order to boost organic growth. At the same time, at EUR 10.0 million (first nine months of 2010: EUR 31.1 million), acquisitions totaled a far lower volume than in the previous year. In total, cash outflows from Investing activities were therefore down to EUR 42.8 million in the first nine months of the current financial year after EUR 68.4 million in the same period of the previous year.

Accordingly, Free cash flow after acquisitions, other investments and asset disposals increased significantly to EUR 82.4 million (previous year: EUR 56.0 million).

In the reporting period, cash inflow from Financing activity amounted to EUR 9.0 million (previous year: cash outflow of EUR 63.9 million). Since not all the funds raised as part of the bond issue could be used to pay off existing liabilities, the balance of bank loans raised and repaid produced a positive cash flow of EUR 34.7 million. There has been a sharp rise in the outflow of funds to minority shareholders from EUR 4.0 million to EUR 10.2 million. This rise resulted from the purchase price paid to increase the shareholdings in two companies in the first quarter of 2011, without a change in control.

At the end of the first nine months of 2011, GfK had Cash and cash equivalents of EUR 146.2 million (September 30, 2010: EUR 37.0 million). The unutilized credit lines amounted to EUR 305.6 million as at September 30, 2011.

4. assets and capital structure

During the first nine months of 2011, GfK’s total assets were up by EUR 93.5 million to EUR 1,743 mil-lion on the figure at year-end 2010. This was primarily due to an increase in cash and cash equivalents of EUR 91 million. At the same time, revenue reserves increased by EUR 43 million and short-term financial liabilities by EUR 36 million.

As at September 30, 2011, equity totaled EUR 726 million (December 31, 2010: EUR 677 million). The rise resulted from the higher revenue reserves. The equity ratio was a good 41.6% (December 31, 2010: 41.1%). As at September 30, 2011, the share capital of GfK SE amounted to approximately EUR 152 million.

On September 30, 2011, Net debt totaled EUR 372.5 million. This includes the balance of liabilities to banks plus pension obligations, liabilities under leases and other interest-bearing liabilities less cash and cash equivalents and short-term securities. In comparison with the end of the second quarter of 2011, net debt fell by EUR 58.6 million and compared with September 30, 2010 by as much as EUR 74.8 million. This amount includes liabilities from purchase price payments already agreed of EUR 59.5 million.

As at September 30, 2011, the ratio of modified net debt to EBITDA stood at 1.19 (September 30, 2010: 1.78) and the ratio of EBITDA to modified interest expenses was 13.46 (September 30, 2010: 18.94). The bond issue has enhanced the maturity profile for GfK, however, it has also increased the interest level.

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5. trends in the sectors

Custom Research: In the first nine months of 2011, the Custom Research sector achieved consider-able sales growth. The sector increased sales by 6.9% year-on-year to EUR 598 million. Organic growth amounted to 6.5%. Currency effects had a negative impact with 1.5 percentage points, but were more than compensated by acquisitions, which contributed a further 1.9 percentage points to growth.

The excellent business trend in telecommunications, fast moving consumer goods (FMCG) and the automotive industry impacted positively, in particular. Apart from North America where sales were down on the previous year, all regions contributed to sales growth with significant increases. In North America, negative effects on income were limited by stringent cost management.

Overall, the income trend in the sector was very positive, with income rising by 15.4% to EUR 38.7 million in the first nine months of 2011. Organic growth amounted to 18.0%. Acquisitions and currency effects reduced income by 0.4 and 2.2 percentage points respectively. The margin improved from 6.0% in the previous year to 6.5%.

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Custom Research1)

In EUR million

Q1–Q32010 2011

Change in %

Sales 559.4 598.2 6.9


Margin in per cent2) 6.0 6.5

1) Figures from the Management-Information System – rounded 2) Adjusted operating income in relation to sales

Structure of sales growth by sectors1)

Total

Custom Research

6.9 %

Retail and Technology

10.4 %

Media

– 0.4 %

Other2)

– 4.1 %

Total

7.1 %

1) Figures from the Management-Information System – rounded Currency Acquisitions Organic2) Other division

– 1.5% 1.9% 6.5%

0.1% 0.1%

1.8%

7.0% – 11.2%

7.0% – 1.0% 1.2%

10.2%

– 2.2%

Retail and Technology: Compared with the same period in the previous year, the Retail and Technol-ogy sector again achieved double-digit sales growth of 10.4% to EUR 299 million. At 10.2 percentage points, this growth was largely organic in nature, with currency effects and acquisitions of 0.1 percent-age points each playing only a minor role. The sector thus again achieved the strongest sales performance within the GfK Group.

Sales increases were reported in all regions, with Germany and Asia and the Pacific making the highest contributions. In Germany, the sales increase primarily resulted from international contracts concluded in the country and passed on within the GfK network. With regard to the different business segments, growth in telecoms, small domestic appliances (SDA) and IT was well above average.

The sector also saw a substantial improvement in income. The rise from EUR 79.4 million in same period of the previous year to EUR 92.1 million represents an increase of 15.9%. As with sales growth, at 15.7 percentage points, the upturn in income was largely organic.

The margin in the sector of 30.8% surpassed the high level of 29.4% achieved in the first nine months of 2010.

Media: Sales in the Media sector were up 1.8% in organic terms. However, at -2.2 percentage points, the negative impact of currency effects led overall to a marginal fall in sales of 0.4% to EUR 98 million. On an organic basis, sales growth was particularly high in Germany and North America.

Income for the sector totaled EUR 6.4 million. The figure was adversely affected by a write-down of EUR 4.5 million, which was applied following an impairment test relating to software already partly used to measure TV ratings. The impairment test was triggered by the launch of work on a further upgrade of the Evogenius software. The business plans used as a basis in the impairment test required a partial write-down of the assets capitalized to date. The risk recorded based on the impairment test as at September 30, 2011 will be compared with the latest data as at December 31, 2011.

14_GfK


Media1)

In EUR million

Q1–Q32010 2011

Change in %

Sales 98.3 98.0 – 0.4

Adjusted operating income 11.2 6.4 – 43.1



Retail and Technology1)

In EUR million

Q1–Q32010 2011

Change in %

Sales 270.7 298.8 10.4




In addition to the write-down, currency effects of -5.1 percentage points also had a negative impact on income. Adjusted for the non-recurring factor of the write-down, income amounted to EUR 10.9 mil-lion. In organic terms, growth in income before the write-down was 2.3%.

The sector margin was 6.5%. Adjusted for the non-recurring factor of the write-down, the margin was 11.1%, which is only slightly below the previous year’s figure of 11.4%.

Other: The sectors are complemented by Other, which comprises, in particular, the head office services of GfK for its subsidiaries and other non-market research-related services.

In the first nine months of 2011, sales generated by the Other segment amounted to EUR 3.6 million (previous year: EUR 3.8 million). Of the costs incurred by the segment, EUR 6.2 million were not covered compared with EUR 3.7 million in the same period of the previous year. This increase resulted from costs totaling EUR 2.9 million relating to the strategic “Own the Future” project as well as one-off expenses in connection with the early termination of the contract for a Management Board member.

6. regional trends

GfK_15

Other1)

In EUR million

Q1–Q32010 2011

Change in %

Sales 3.8 3.6 – 4.1

Adjusted operating income – 3.7 – 6.2 – 67.0


Structure of sales growth in the regions1)

Total

Germany

11.9 %

Western Europe/ Middle East/Africa

8.9 %

Central and Eastern Europe

15.0 %

North America

– 10.4 %

Latin America

13.1 %

Asia and the Pacific

11.8 %

Total

7.1 %

1) Figures from the Management-Information System – rounded Currency Acquisitions Organic

2.7%

8.2%

– 3.1% 18.2%

2.1%

13.0%

– 1.0% 1.2% 7.0%

1.6% 0.9% 9.3%

0.7%

9.2%

– 5.5%– 7.0%

The GfK Group’s network of subsidiaries covers over 100 countries worldwide. In geographic terms, the business is divided into six regions: Germany, Western Europe/Middle East/Africa, Central and Eastern Europe, North America, Latin America as well as Asia and the Pacific. Apart from North America, all regions recorded significant sales growth in the first nine months of 2011.

In Germany, sales generated by the GfK companies saw another double-digit increase of 11.9%. Of this, acquisitions accounted for 2.7 percentage points and organic growth for 9.2 percentage points. Sales totaled EUR 275 million.

Western Europe/Middle East/Africa is the strongest sales region with EUR 378 million. In the reporting period, sales improved by 8.9%. This increase was mainly driven by organic growth of 8.2 percentage points. Currency effects boosted the figure by 0.7 percentage points.

The strongest growth of 15.0% was recorded in the Central and Eastern Europe region, which achieved sales of EUR 71.0 million. On an organic basis, growth was as high as 18.2%, while currency effects made a negative contribution of -3.1 percentage points.

In North America, GfK generated sales of EUR 147 million in the first nine months of 2011, which equates to a decline of 10.4%. Most of this was due to currency effects, which accounted for -7.0 percentage points. In organic terms, the decrease amounted to -5.5 percentage points. Acquisitions increased sales in the region by 2.1 percentage points.

The GfK companies in Latin America achieved sales growth of 13.1% in the first nine months of the current year to generate total sales of EUR 42 million. At 13.0 percentage points, growth in this region was almost entirely organic in nature.

There was also a significant increase in sales to EUR 86 million in the Asia and the Pacific region. Of the overall growth of 11.8%, organic growth accounted for 9.3 percentage points, with acquisitions and currency effects contributing 0.9 and 1.6 percentage points respectively.

7. “own the future” – implementation of new corporate strategy is progressing

On June 30, 2011, GfK presented its new corporate strategy which will come into effect as of January 1, 2012, as has been reported in H1 report.

Since the strategy has been announced the necessary structures have been drafted, which will allow the successful implementation of the ambitious objectives.

16_GfK


Regions: sales growth1)

EUR million

Q1–Q32010 2011

Change in %

Germany 245.9 275.2 11.9

Western Europe/Middle East/Africa 346.9 377.9 8.9

Central and Eastern Europe 61.7 71.0 15.0

North America 163.9 146.9 – 10.4

Latin America 37.1 42.0 13.1

Asia and the Pacific 76.6 85.6 11.8

Total 932.1 998.5 7.1


GfK has created new global and regional management roles and responsibilities for global products and client groups. The selection of the job holders took place last quarter and the new positions are largely filled already. The processes and cooperation will now be defined in details in global work-groups so that the new organization can start successfully on 1st January 2012.

For clients this means working with a more connected global organization that delivers more powerful insights, and having better access to GfK’s wealth of expertise, global services and knowledge of consumer trends.

As announced in GfK’s last quarterly report, the Management Board has also introduced long-term growth and income targets in the context of the new corporate strategy. By 2015, sales of around EUR 2 billion are to be achieved with 16% margin. The goal is to realize organic growth on a scale that considerably outperforms the sector average.

8. number of employees

As at September 30, 2011, the GfK Group had 11,328 employees, 782 more than at the end of 2010. At the end of the third quarter, the Group employed 9,323 staff outside Germany and 2,005 in Germany. Newly consolidated companies accounted for 224 employees. Otherwise, the staff build-up took place primarily in the growth regions of Central and Eastern Europe, Asia and the Pacific as well as Latin America. In the first nine months of the year, personnel expenses amounted to EUR 436.1 mil-lion (previous year: EUR 407.0 million). The personnel cost ratio, which expresses the ratio of personnel expenses to sales, remained unchanged at 43.7%.

9. research and development

In the Media sector, the development of the Evogenius product package focuses on a new Evogenius reporting tool, which will be used for standardized as well as specific analysis in TV research.

GfK MRI has developed a new product in cooperation with comScore, which links the online media usage of American consumers with their use of other media. The product is based on a standardized database, comScore-MRI Fusion.

GfK Panel Services has developed the new GfK Total Market Insights concept, which facilitates linking data about consumers’ financial transactions online with the digital sales data of individual retailers. The concept delivers detailed market reports and shopper insights at a fraction of the costs previously associated with this kind of research.

10. organization and administration

After Professor Dr. Klaus L. Wübbenhorst, the long-standing CEO of GfK SE, advised the Supervisory Board in February 2011 that he would not be extending his contract which runs until the end of July 2012 for personal reasons, on August 1, 2011 Matthias Hartmann was appointed to take over from Professor Wübbenhorst. Hartmann will be assuming responsibility for GfK on December 1, 2011 in his capacity as Chief Executive Officer. In his last position as Global Head of Strategy and Industries, the business management graduate was responsible for the global strategy and direction of IBM Global Business Services, the consulting arm of the IBM Group. Hartmann has international experience and

GfK_17

worked for IBM in many different countries. As a strategic thinker and consultant with a strong track record in the technology group, he has all the necessary qualities to lead GfK in a digital and increas-ingly networked world, drive forward innovation and achieve the targets set in GfK’s new business strategy, “Own the Future”.

As planned, Professor Wübbenhorst will be leaving the Management Board when Hartmann joins. In the 20 years Professor Wübbenhorst spent on the Management Board, 13 of which as CEO, GfK has evolved from a company with a focus on Germany to a leading listed global Group with an international outlook.

At the end of September, Wilhelm R. Wessels left the Management Board of GfK SE, as scheduled, when his contract expired. Wessels was last responsible for the Media sector and has played an important role in the internationalization of the GfK Group over the last 33 years.

11. changes in participations in the third quarter of 2011

In July 2011, GfK increased its shareholding in GfK Egypt by 26% to now 100%. As a leading market research company in the region, GfK Egypt offers research as well as consultancy services in the telecommunications, food, finance and property, retail and pharmaceutical sectors.

In July, GfK also acquired the mystery shopping activities of Nippon Media. The company was established in 1982 and specializes in providing services to customers from the telecommunications and energy supply sectors. Mystery shoppers check the quality of services in the retail and service sectors by shopping without revealing their actual identity.

In August 2011, GfK acquired a stake in the US company Media Behavior Institute (MBI) together with The Nielsen Company. Like The Nielsen Company, GfK holds 25% of the shares, with the remaining 50% of the shares held by the two founders of the company. Based in New York, MBI will provide 2,000 Americans with smartphones that have a special app as part of its syndicated USA TouchPoints survey. With the help of this app, the total media usage of consumers is measured at half-hour intervals, and this data is combined with lifestyle habits. The comprehensive measurements are virtually in real-time and thus enable the media, advertising companies and agencies to align advertising messages to their target groups with great accuracy.

12. biss fitness and efficiency program

The Group-wide fitness and efficiency program BISS is on schedule and will have fully met its objectives by the end of this financial year. As of the end of the first nine months of 2011, 22 projects had been successfully completed. EBIT improved by EUR 30.9 million in the first nine months of the

18_GfK


Changes in the GfK Network during the third quarter of 2011

Company

Reason for investment

Shareholding in %

Sector

Region

GfK Egypt Increase from 74 to 100 Custom Research Western Europe/Middle East/Africa

MBI Acquisition 25 Media North America

Mystery Shopping activities of Nippon Media

Acquisition Asset Deal Custom Research Asia and the Pacific

year as a result of BISS. Compared with the contribution of EUR 19.6 million in the first nine months of 2010, this is a further rise of EUR 11.3 million. In the third quarter of 2011, restructuring costs of EUR 1.8 million were reported under highlighted items.

13. important events after the reporting date of september 30, 2011

No important events which require reporting occurred after the reporting date.

14. marketing and corporate communications

The Corporate Communications department has Group-wide responsibility for the external and internal communications of the GfK Group and is divided into three teams: Public Relations, Corporate Design/Corporate Identity and Investor Relations.

The quality of GfK’s financial reporting has been recognized once again. In the Best Annual Report Awards, GfK’s annual report ranked fourth among 50 S-Dax listed companies. The awards are organized by manager magazine. The criteria evaluated are content, writing style and design.

15. opportunity and risk position

Despite the considerable improvement in sales and income in the year to date, the risk position of the GfK Group is affected by the uncertainty relating to the economic environment. Apart from these macroeconomic conditions, there are no material changes compared with the opportunity and risk position of the GfK Group described in the Group Management Report as at December 31, 2010. No risks have been identified that could jeopardize the continued existence of the Group.

If the global economic situation should worsen significantly and severely affect the business of GfK clients, this could also impact on GfK.

The GfK business model is subject to seasonally related fluctuations. Traditionally, sales and income trends are significantly better in the fourth quarter than the other quarters, given that the year-end business is highly relevant to clients’ operations. No reliable forecast can be made as to the extent to which this effect will occur in the current financial year.

Thanks to its global network as a full-service provider, the GfK Group is well-positioned. GfK meets new challenges in the market research industry with an innovative portfolio of products and services tailored to client requirements.

16. outlook

The International Monetary Fund (IMF) reduced its forecast for global development again in Septem-ber compared with its forecast made in June, but is still expecting growth of 4.0% in the current year. Expectations for the USA were downgraded by a full percentage point to 1.5%. At the same time, the IMF adjusted its forecast for the emerging markets by only -0.2 percentage points to 6.1%. For Germany, the IMF expects a comparatively robust development with 2.7% growth and for the industrialized nations 1.6% in total.

GfK_19

*The outlook contains predictive statements on future developments,

which are based on current management assessments. Words such as

“anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”,

“could/might”, “planned”, “projected”, “should”, “likely” and other

such terms are statements of a predictive nature. Such predictive

statements contain comments on the anticipated development sales

proceeds and income for 2010. Such statements are subject to risks and

uncertainties, for example, economic effects such as exchange rate

fluctuations and changes in interest rates. Some uncertainties and other

unforeseen factors which might affect ability to achieve targets are

described under “risk position” in the Management Report. If these or

other uncertainties and unforeseen factors arise or the assumptions on

which the statements are based prove to be incorrect, actual results

could materially differ from the results indicated or implied in these

statements. We do not guarantee that our predictive statements will

prove to be correct. The predictive statements contained herein are

based on the current Group structure and are made on the basis of the

facts on the day of publication of the present document. We do not

intend nor accept any obligation to update predictive statements on an

ongoing basis.

Although the global economy is expected to record further growth, risk awareness is intensifying all the time and making a forecast difficult. The structural problems of public authorities and concerns about their impact on the real economy are increasingly coming to the fore. The budget consolidations announced are perceived as an adverse factor in terms of economic growth, and the risk of another credit crunch in the event of further problems arising in the financial sector is now also being discussed. Consumers are reacting accordingly, and this was reflected in the latest European consumer climate survey conducted by GfK in September. Economic expectations have worsened considerably among European consumers. At the same time, their willingness to buy showed a mixed picture.

GfK continues to expect a strong performance for financial year 2011. The well-filled order books are an important indicator in this respect. At the end of October, a total of 96.8% of the orders expected for the year as a whole were already posted. The figure is significantly higher than the previous year’s level of 94.4%. At the same time, there are some factors which are fueling uncertainty. For the USA, a modest level of business is expected, due to the continued consumer restraint. Despite these uncertainties, the company still expects organic sales growth at the upper end of the previous forecast of between 5% and 6% in financial year 2011, based on the companies included in the scope of consolidation at the start of the year. All three sectors will contribute to this with positive organic growth in sales. Despite the cost burden arising from implementing the “Own the Future” strategy, the unscheduled write-down in the Media sector and expenses relating to the early termination of the contract for a Management Board member, GfK is confident of achieving a margin on adjusted operating income in relation to sales that will match the previous year’s level.

20_GfK


GfK_21

Consolidated income statement of GfK Groupfrom July 1 to September 30, 2011 in EUR ’000 (according to IFRS, not audited)

Q3 2010 published

% of sales

Q3 2010 reclassified

% of sales

Q3 2011

% of sales

abs.

%

Sales 322,491 100.0% 322,491 100.0% 338,490 100.0% 15,999 5.0%

Cost of sales – 214,466 – 66.5% – 214,466 – 66.5% – 224,819 – 66.4% – 10,353 4.8%

Gross income from sales 108,025 33.5% 108,025 33.5% 113,671 33.6% 5,646 5.2%

Selling and general administrative expenses – 66,688 – 20.7% – 66,688 – 20.7% – 70,224 – 20.7% – 3,536 5.3%

Other operating income 318 0.1% 3,422 1.1% 4,807 1.4% 1,385 40.5%

Other operating expenses – 47 0.0% – 5,020 – 1.6% – 3,822 – 1.1% 1,198 – 23.9%

Operating income 41,608 12.9% 39,739 12.3% 44,432 13.1% 4,693 11.8%

Income from associates 919 0.3% 919 0.3% 666 0.2% – 253 – 27.5%

Other income from participations 233 0.1% 233 0.1% 152 0.0% – 81 – 34.8%

ebit 42,760 13.3% 40,891 12.7% 45,250 13.4% 4,359 10.7%

Other financial income 2,224 0.7% – 880 – 0.3% 1,171 0.3% 2,051 – 233.1%

Other financial expenses – 7,512 – 2.3% – 2,539 – 0.8% – 9,232 – 2.7% – 6,693 263.6%

Income from ongoing business activity 37,472 11.6% 37,472 11.6% 37,189 11.0% – 283 – 0.8%

Tax on income from ongoing business activity – 11,654 – 11,654 – 7,516 4,138 – 35.5%

Consolidated total income 25,818 8.0% 25,818 8.0% 29,673 8.8% 3,855 14.9%

Attributable to equity holders of the parent: 21,966 6.8% 21,966 6.8% 26,553 7.8% 4,587 20.9%

Attributable to minority interests: 3,852 1.2% 3,852 1.2% 3,120 0.9% – 732 – 19.0%


Basic earnings per share (eur) 0.61 0.61 0.73 0.12 19.7%

Diluted earnings per share (eur) 0.61 0.61 0.73 0.12 19.7%

Adjusted earnings per share (eur) 0.80 0.86 0.80 – 0.06 – 7.0%

For information:

Personnel expenses 136,105 42.2% 136,105 42.2% 145,869 43.1% 9,764 7.2%

Depreciation/amortization 12,094 3.8% 12,094 3.8% 16,784 5.0% 4,690 38.8%

ebitda 54,854 17.0% 52,985 16.4% 62,034 18.3% 9,049 17.1%

Change

22_GfK


Consolidated income statement of GfK Groupfrom January 1 to September 30, 2011 in EUR ’000 (according to IFRS, not audited)

Q1–Q3 2010 published

% of sales

Q1–Q3 2010 reclassified

% of sales

Q1–Q3 2011

% of sales

abs.

%

Sales 932,126 100.0% 932,126 100.0% 998,549 100.0% 66,423 7.1%

Cost of sales – 633,998 – 68.0% – 633,998 – 68.0% – 675,045 – 67.6% – 41,047 6.5%

Gross income from sales 298,128 32.0% 298,128 32.0% 323,504 32.4% 25,376 8.5%

Selling and general administrative expenses – 197,193 – 21.2% – 197,193 – 21.2% – 206,208 – 20.7% – 9,015 4.6%

Other operating income 12,935 1.4% 10,060 1.1% 11,820 1.2% 1,760 17.5%

Other operating expenses – 20,250 – 2.2% – 15,182 – 1.6% – 11,128 – 1.1% 4,054 – 26.7%

Operating income1) 93,620 10.0% 95,813 10.3% 117,988 11.8% 22,175 23.1%

Income from associates 2,378 0.3% 2,378 0.3% 2,333 0.2% – 45 – 1.9%

Other income from participations 248 0.0% 248 0.0% 1,118 0.1% 870 350.8%

ebit 96,246 10.3% 98,439 10.6% 121,439 12.2% 23,000 23.4%

Other financial income 8,854 0.9% 11,729 1.3% 9,725 1.0% – 2,004 – 17.1%

Other financial expenses – 20,812 – 2.2% – 25,880 – 2.8% – 24,071 – 2.4% 1,809 – 7.0%

Income from ongoing business activity 84,288 9.0% 84,288 9.0% 107,093 10.7% 22,805 27.1%

Tax on income from ongoing business activity – 26,678 – 26,678 – 31,698 – 5,020 18.8%


Attributable to equity holders of the parent: 49,050 5.3% 49,050 5.3% 65,622 6.6% 16,572 33.8%

Attributable to minority interests: 8,560 0.9% 8,560 0.9% 9,773 1.0% 1,213 14.2%


Basic earnings per share (eur) 1.36 1.36 1.80 0.44 32.4%

Diluted earnings per share (eur) 1.36 1.36 1.80 0.44 32.4%

Adjusted earnings per share (eur) 2.11 2.05 2.16 0.11 5.4%

For information:

Personnel expenses 406,968 43.7% 406,968 43.7% 436,064 43.7% 29,096 7.1%

Depreciation/amortization 36,831 4.0% 36,831 4.0% 41,953 4.2% 5,122 13.9%

ebitda 133,077 14.3% 135,270 14.5% 163,392 16.4% 28,122 20.8%

1) Reconciliation to internal management indicator „adjusted operating income“ amounting to EUR 130,900 thousand (2010: EUR 120,403 thousand) as indicated on page 10.

Change

GfK_23

Consolidated cash flow statementfor the period January 1 to September 30, 2011 in EUR ’000 (according to IFRS, not audited)

Q1–Q3 2010

Q1–Q3 2011

Consolidated total income 57,610 75,395

Write-downs/write-ups of intangible assets 19,736 24,249

Write-downs/write-ups of tangible assets 17,095 17,704

Write-downs/write-ups of other financial assets 815 731

Total write-downs/write-ups 37,646 42,684

Increase/decrease in inventories and trade receivables – 744 5,476

Increase/decrease in trade payables and liabilities on orders in progress 10,437 3,410

Changes in other assets not attributable to investing or financing activity – 948 – 7,990

Changes in other liabilities not attributable to investing or financing activity – 924 – 24,605

Profit/loss from the disposal of non-current assets 23 – 1,413

Non-cash income from associates – 963 – 1,945

Increase/decrease in long-term provisions 6,408 6,515

Other non-cash income/expenses 7,986 10,358

Net interest income 13,071 13,416

Change in deferred taxes – 4,171 – 1,289

Current income tax expense 30,785 33,098

Taxes paid – 31,820 – 27,890

a) Cash flow from operating activity 124,396 125,220

Cash outflows for investments in intangible assets – 16,772 – 21,272

Cash outflows for investments in tangible assets – 15,901 – 14,831

Cash out-/inflows for acquisition of consolidated companies and other business units, net of cash acquired – 31,103 – 9,977

Cash outflows for other financial assets – 5,580 – 379

Cash inflows from disposal of intangible assets 57 1,319

Cash inflows from disposal of tangible assets 465 1,143

Cash inflows from the sales of consolidated companies and other business units, net of cash disposed of 3 605

Cash inflows from disposal of other financial assets 417 591

b) Cash flow from investing activity – 68,414 – 42,801

Cash inflows from equity contributions 30 7,694

Dividend payments to equity holders of parent – 10,784 – 17,412

Dividend payments to minority interests and other equity transactions – 3,978 – 10,192

Cash inflows from loans raised 98,875 210,257

Cash outflows for repayment of loans – 138,030 – 175,601

Interest received 1,562 1,319

Interest paid – 11,611 – 7,039

c) Cash flow from financing activity – 63,936 9,026

Changes in cash and cash equivalents (total of a), b) and c)) – 7,954 91,445

Changes in cash and cash equivalents owing to exchange gains/losses and valuation 2,551 – 25

Cash and cash equivalents at the beginning of the period 42,361 54,755

Cash and cash equivalents at the end of the period 36,958 146,175

24_GfK


Calculation of net debt

31.12.2010

30.09.2011

Liquid funds 54,755 146,175

Short-term securities and time deposits 1,382 1,256

Liquid funds, short-term securities and time deposits 56,137 147,431

Liabilities to banks – 348,236 – 383,567

Pension obligations – 55,672 – 56,933

Liabilities from finance leases – 11,498 – 9,693

Other interest-bearing liabilities – 69,187 – 69,786

Interest-bearing liabilities – 484,593 – 519,979

Net debt – 428,456 – 372,548

Calculation of free cash flow

30.09.2010

30.09.2011

Consolidated total income 57,610 75,395

Write-downs/write-ups of intangible assets 19,736 24,249

Write-downs/write-ups of tangible assets 17,095 17,704

Write-downs/write-ups of other financial assets 815 731

Others 29,140 7,141

Cash flow from operating activity 124,396 125,220

Capital expenditure – 32,673 – 36,103

Free cash flow before acquisitions, other investments and asset disposals 91,723 89,117

Acquisitions – 34,911 – 10,330

Other financial investments – 1,772 – 26

Asset disposals 942 3,658

Free cash flow after acquisitions, other investments and asset disposals 55,982 82,419

Calculation of net debt and free cash flowin EUR ’000 (according to IFRS, not audited)

GfK_25

31.12.2010

30.09.2011

AssetsGoodwill 838,748 847,539

Other intangible assets 210,997 208,860

Tangible assets 108,387 104,355

Investments in associates 17,318 17,282

Other financial assets 11,015 6,045

Deferred tax assets 38,901 44,802

Non-current other assets and deferred items 6,826 6,990

Non-current assets 1,232,192 1,235,873

Trade receivables 315,569 306,961

Current income tax assets 13,307 12,080

Securities and fixed-term deposits 1,382 1,256

Cash and cash equivalents 54,755 146,175

Current other assets and deferred items 32,703 41,020

Current assets 417,716 507,492

Assets 1,649,908 1,743,365

Consolidated balance sheet as of September 30, 2011 in EUR ’000 (according to IFRS, not audited)

26_GfK


31.12.2010

30.09.2011

Equity and liabilitiesSubscribed capital 151,157 152,159

Capital reserve 206,868 213,560

Retained earnings 329,357 372,035

Other reserves – 45,626 – 50,523

Equity attributable to equity holders of the parent 641,756 687,231

Minority interests 35,702 38,560

Equity 677,458 725,791

Long-term provisions 81,965 80,084

Non-current interest-bearing financial liabilities 326,324 324,438

Deferred tax liabilities 72,175 76,362

Non-current other liabilities and deferred items 4,456 3,184

Non-current liabilities 484,920 484,068

Short-term provisions 16,531 17,482

Current income tax liabilities 25,919 29,850

Current interest-bearing financial liabilities 102,597 138,608

Trade payables 66,103 62,197

Liabilities on orders in progress 136,696 144,116

Current other liabilities and deferred items 139,684 141,253

Current liabilities 487,530 533,506

Liabilities 972,450 1,017,574

Equity and liabilities 1,649,908 1,743,365

Equity ratio 41.1% 41.6%

Consolidated balance sheet as of September 30, 2011 in EUR ’000 (according to IFRS, not audited)

GfK_27

Consolidated statement of comprehensive incomeIncome for the period January 1 to September 30, 2011 in EUR ’000 (according to IFRS, not audited)

Q1–Q3 2010

Q1–Q3 2011

Pre-tax amount

Tax effect Post-tax amount

Pre-tax amount

Tax effect Post-tax amount

Consolidated total income 84,288 – 26,678 57,610 107,093 – 31,698 75,395

Currency translation differences 39,311 0 39,311 – 7,672 0 – 7,672

Valuation of net investment hedges for foreign subsidiaries

– 1,672

526

– 1,146

2,525

– 795

1,730

Changes in fair value of cash flow hedges (effective portion)

587

– 185

402

991

– 312

679

Changes in fair value of securities available-for-sale

– 2

0

– 2

0

0

0

Actuarial gains/losses on defined benefit plans – 1,051 166 – 885 – 427 57 – 370

Other comprehensive income 37,173 507 37,680 – 4,583 – 1,050 – 5,633

Total comprehensive income 121,461 – 26,171 95,290 102,510 – 32,748 69,762

Attributable to:

Equity holders of the parent 85,439 60,354

Minority interests 9,851 9,408

Total comprehensive income 95,290 69,762

28_GfK


Consolidated equity change statement of G fK Group for the period January 1 to September 30, 2011 in EUR ’000 (according to IFRS, not audited)

Attributable to equity holders Attributable to equity holders of the parent of the parent

Other reserves

Subscribed capital Capital reserve

Retained earnings

Translation reserve

Hedging reserve

Fair value reserve

Total

Minority interests

Total equity

Balance at January 1, 2010 150,297 197,278 277,467 – 118,163 17,773 – 12 524,640 28,374 553,014Total comprehensive income for the periodConsolidated total income 49,050 49,050 8,560 57,610Other comprehensive income Foreign currency translation differences 38,064 38,064 1,247 39,311 Net gain/loss on hedge of net investment in foreign operation – 1,146 – 1,146 – 1,146 Effective portion of changes in fair value of cash flow hedges, net of tax 402 402 402 Net change in fair value of available-for-sale financial assets, net of tax – 1 – 1 – 1 – 2 Defined benefit plan actuarial gains and losses, net of tax – 930 – 930 45 – 885Total other comprehensive income 0 0 – 930 38,064 – 744 – 1 36,389 1,291 37,680Total comprehensive income for the period 0 0 48,120 38,064 – 744 – 1 85,439 9,851 95,290Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders – 10,784 – 10,784 – 3,978 – 14,762 Issuing of ordinary shares (stockoptions) 2 28 30 30Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 608 – 608 – 514 – 1,122 Other changes – 334 – 334 191 – 143Total transactions with owners, recorded directly in equity 2 28 – 11,726 0 0 0 – 11,696 – 4,301 – 15,997

Balance at September 30, 2010 150,299 197,306 313,861 – 80,099 17,029 – 13 598,383 33,924 632,307Balance at October 1, 2010 150,299 197,306 313,861 – 80,099 17,029 – 13 598,383 33,924 632,307Total comprehensive income for the periodConsolidated total income 22,601 22,601 3,773 26,374Other comprehensive income Foreign currency translation differences 18,023 18,023 656 18,679 Net gain/loss on hedge of net investment in foreign operation – 588 – 588 – 588 Effective portion of changes in fair value of cash flow hedges, net of tax 24 24 24 Net change in fair value of available-for-sale financial assets, net of tax – 2 – 2 1 – 1 Defined benefit plan actuarial gains and losses, net of tax – 7,146 – 7,146 5 – 7,141Total other comprehensive income 0 0 – 7,146 18,023 – 564 – 2 10,311 662 10,973Total comprehensive income for the period 0 0 15,455 18,023 – 564 – 2 32,912 4,435 37,347Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders 0 – 2,562 – 2,562 Issuing of ordinary shares (stockoptions) 858 9,562 10,420 10,420Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 15 – 15 – 15 Other changes 56 56 – 95 – 39Total transactions with owners, recorded directly in equity 858 9,562 41 0 0 0 10,461 – 2,657 7,804

Balance at December 31, 2010 151,157 206,868 329,357 – 62,076 16,465 – 15 641,756 35,702 677,458Balance at January 1, 2011 151,157 206,868 329,357 – 62,076 16,465 – 15 641,756 35,702 677,458Total comprehensive income for the periodConsolidated total income 65,622 65,622 9,773 75,395Other comprehensive income Foreign currency translation differences – 7,306 – 7,306 – 366 – 7,672 Net gain/loss on hedge of net investment in foreign operation 1,730 1,730 1,730 Effective portion of changes in fair value of cash flow hedges, net of tax 679 679 679 Net change in fair value of available-for-sale financial assets, net of tax 0 0 0 Defined benefit plan actuarial gains and losses, net of tax – 371 – 371 1 – 370Total other comprehensive income 0 0 – 371 – 7,306 2,409 0 – 5,268 – 365 – 5,633Total comprehensive income for the period 0 0 65,251 – 7,306 2,409 0 60,354 9,408 69,762Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders – 17,412 – 17,412 – 4,599 – 22,011 Issuing of ordinary shares (stockoptions) 1,002 6,692 49 7,743 7,743Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 5,043 – 5,043 – 1,908 – 6,951 Other changes – 167 – 167 – 43 – 210Total transactions with owners, recorded directly in equity 1,002 6,692 – 22,573 0 0 0 – 14,879 – 6,550 – 21,429

Balance at September 30, 2011 152,159 213,560 372,035 – 69,382 18,874 – 15 687,231 38,560 725,791

GfK_29

Attributable to equity holders Attributable to equity holders of the parent of the parent

Other reserves

Subscribed capital Capital reserve

Retained earnings

Translation reserve

Hedging reserve

Fair value reserve

Total

Minority interests

Total equity

Balance at January 1, 2010 150,297 197,278 277,467 – 118,163 17,773 – 12 524,640 28,374 553,014Total comprehensive income for the periodConsolidated total income 49,050 49,050 8,560 57,610Other comprehensive income Foreign currency translation differences 38,064 38,064 1,247 39,311 Net gain/loss on hedge of net investment in foreign operation – 1,146 – 1,146 – 1,146 Effective portion of changes in fair value of cash flow hedges, net of tax 402 402 402 Net change in fair value of available-for-sale financial assets, net of tax – 1 – 1 – 1 – 2 Defined benefit plan actuarial gains and losses, net of tax – 930 – 930 45 – 885Total other comprehensive income 0 0 – 930 38,064 – 744 – 1 36,389 1,291 37,680Total comprehensive income for the period 0 0 48,120 38,064 – 744 – 1 85,439 9,851 95,290Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders – 10,784 – 10,784 – 3,978 – 14,762 Issuing of ordinary shares (stockoptions) 2 28 30 30Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 608 – 608 – 514 – 1,122 Other changes – 334 – 334 191 – 143Total transactions with owners, recorded directly in equity 2 28 – 11,726 0 0 0 – 11,696 – 4,301 – 15,997

Balance at September 30, 2010 150,299 197,306 313,861 – 80,099 17,029 – 13 598,383 33,924 632,307Balance at October 1, 2010 150,299 197,306 313,861 – 80,099 17,029 – 13 598,383 33,924 632,307Total comprehensive income for the periodConsolidated total income 22,601 22,601 3,773 26,374Other comprehensive income Foreign currency translation differences 18,023 18,023 656 18,679 Net gain/loss on hedge of net investment in foreign operation – 588 – 588 – 588 Effective portion of changes in fair value of cash flow hedges, net of tax 24 24 24 Net change in fair value of available-for-sale financial assets, net of tax – 2 – 2 1 – 1 Defined benefit plan actuarial gains and losses, net of tax – 7,146 – 7,146 5 – 7,141Total other comprehensive income 0 0 – 7,146 18,023 – 564 – 2 10,311 662 10,973Total comprehensive income for the period 0 0 15,455 18,023 – 564 – 2 32,912 4,435 37,347Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders 0 – 2,562 – 2,562 Issuing of ordinary shares (stockoptions) 858 9,562 10,420 10,420Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 15 – 15 – 15 Other changes 56 56 – 95 – 39Total transactions with owners, recorded directly in equity 858 9,562 41 0 0 0 10,461 – 2,657 7,804

Balance at December 31, 2010 151,157 206,868 329,357 – 62,076 16,465 – 15 641,756 35,702 677,458Balance at January 1, 2011 151,157 206,868 329,357 – 62,076 16,465 – 15 641,756 35,702 677,458Total comprehensive income for the periodConsolidated total income 65,622 65,622 9,773 75,395Other comprehensive income Foreign currency translation differences – 7,306 – 7,306 – 366 – 7,672 Net gain/loss on hedge of net investment in foreign operation 1,730 1,730 1,730 Effective portion of changes in fair value of cash flow hedges, net of tax 679 679 679 Net change in fair value of available-for-sale financial assets, net of tax 0 0 0 Defined benefit plan actuarial gains and losses, net of tax – 371 – 371 1 – 370Total other comprehensive income 0 0 – 371 – 7,306 2,409 0 – 5,268 – 365 – 5,633Total comprehensive income for the period 0 0 65,251 – 7,306 2,409 0 60,354 9,408 69,762Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders – 17,412 – 17,412 – 4,599 – 22,011 Issuing of ordinary shares (stockoptions) 1,002 6,692 49 7,743 7,743Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 5,043 – 5,043 – 1,908 – 6,951 Other changes – 167 – 167 – 43 – 210Total transactions with owners, recorded directly in equity 1,002 6,692 – 22,573 0 0 0 – 14,879 – 6,550 – 21,429

Balance at September 30, 2011 152,159 213,560 372,035 – 69,382 18,874 – 15 687,231 38,560 725,791

general information

The consolidated financial statements of GfK SE include the company itself and all consolidated subsidiaries. The GfK SE interim consoli-dated financial statements as at September 30, 2011 have been prepared on the basis of IAS 34 in accordance with the International Financial Reporting Standards (IFRS) and the relevant interpretations of the International Accounting Standards Board (IASB), as applicable under Regulation No. 1606/2002 of the European Parliament and Council, which relates to the application of international accounting standards within the EU. The interim financial statements do not include all explanations and details required for annual financial statements, and readers should therefore refer to the annual financial statements as at December 31, 2010 (www.gfk.com).

The requirements of the applicable standards have been fully complied with, resulting in a true and fair view of the net assets, financial position and results of operations of the GfK Group. No voluntary audit in accordance with Article 317 HGB (German Commercial Code) or review of the quarterly financial statements and interim management report as at September 30, 2011 has been performed by auditors.

principles of consolidation and accounting policies

With the exception of the change described below, the consolidated financial statements of GfK SE as at September 30, 2011 are based on the same IFRS principles of consolidation and accounting policies as the consolidated financial statements as at December 31, 2010.

From financial year 2011, GfK no longer reports currency gains and losses resulting from financial transactions such as loans in foreign currency or financial liabilities in foreign currency in the “Other operating income” and “Other operating expenses” items of the income statement, but in the items “Other financial income” and “Other financial expenses”. This changed classification of currency gains and losses within the income statement broken down into operational and financial currency gains and losses results in more appropriate reporting. In the reporting period, currency gains with a financial character totaling EUR 2,843 thousand were reclassified from other operating income to other financial income and currency losses with a financial character of EUR 2,842 thousand were reclassified from other operating expenses to other financial expenses. In the comparative period of January 1 to September 30, 2010, there was a similar reclassification of currency gains totaling EUR 2,875 thousand and currency losses totaling EUR 5,068 thousand. As a result of these reclassifications, operating income was reduced by EUR 1 thousand (January 1 to September 30, 2010: improved by EUR 2,193 thousand). The same applied to EBIT. There was no impact on income from ongoing business activities, consolidated total income and earnings per share.

estimates

The estimates and assumptions in the consolidated financial statements as at September 30, 2011 have been prepared using the same methods as in the financial statements as at December 31, 2010.

scope of consolidation and major acquisitions

As at September 30, 2011, the scope of consolidation comprised 155 subsidiaries in addition to the parent company (December 31, 2010: 152).

In the Custom Research sector, the stake in GfK SirValUse Consulting GmbH, Hamburg, was increased as at January 1, 2011 by acquiring a further 20% stake to hold 60%. nurago GmbH, Hanover, wholly owned by GfK SirValUse Consulting GmbH, Hamburg, was fully consoli-dated for the first time as at January 1, 2011, as was GfK SirValUse Consulting GmbH.

Following the acquisition on June 1, 2011 of 100% of the shares in MarketWise Ltd., Bangkok, Thailand, the company was consolidated for the first time as at July 1, 2011. The company’s activities are based in the Custom Research sector.

The purchase price and the goodwill from these acquisitions as well as the off-balance intangible assets disclosed in the context of the acquisition process were of subordinate importance for the GfK Group as were the assets and liabilities assumed. The same applied to the cumulative result of the companies for the time they belonged to the GfK Group.

For reasons of materiality, the 80% participation in INTERCAMPUS ESTUDOS DE MERCADO, LDA, Maputo, Mozambique, acquired in 2008, was not consolidated until January 1, 2011. The same applied to the 74% participation in G F K Egypt LTD, Cairo, Egypt. For the same reason, GfK Middle East FZ-LLC, Dubai, United Arab Emirates, established in 2009, and its direct holding company, GfK Middle East CR Holding GmbH, Nuremberg, were also consolidated for the first time as at January 1, 2011. The activities of all four companies are based in the Custom Research sector.

The previous 51% participation in Oz Toys Marketing Services Pty. Ltd., Sydney, Australia, was reduced in January 2011 by selling 26% of the shares. The company, whose activities are based in Retail and Technology, was deconsolidated as at January 1, 2011. The remaining shareholding of 25% is reported as an associated company from 2011 onwards.

In the Custom Research sector, on January 1, 2011, GfK Daphne Communication Management B.V., Amstelveen, Netherlands, was merged with Intomart GfK B.V., Hilversum, Netherlands. This internal Group merger was solely to improve the Group structure and had no direct economic effect. For the same reason, GfK Animal Healthcare Limited, West Byfleet/Surrey, UK, was wound up in April 2011 and the MIL Research Group Limited, London, UK, in May. Their business activities were first transferred to other Group companies.

Notes to the consolidated financial statements of G fK SE as at September 30, 2011

30_GfK


diluted earnings per share

The earnings per share for the period from January 1 to September 30, 2011 were EUR 1.80 (January 1 to September 30, 2010: EUR 1.36). The diluted earnings per share also amounted to EUR 1.80 (January to September 30, 2010: EUR 1.36). The average number of shares is diluted by 21,908 unexercised options issued in tranche 7, which are in the money as at the reporting date. This does not result in any dilutive effect.

related parties

Related parties are persons or groups which could be influenced by the GfK Group or could have an influence on the GfK Group. The following significant transactions with related parties are reported in the consolidated financial statements as at September 30, 2011:

Liabilities relating to as yet unpaid profit shares of EUR 2,304 thousand (2010: EUR 1,334 thousand) arose vis-à-vis The NPD Group Inc., Port Washington, New York, USA.

Loan obligations amounting to EUR 5,466 thousand (2010: EUR 4,315 thousand) were due to GfK-Nürnberg, Gesellschaft für Konsum-, Markt- und Absatzforschung e.V., Nuremberg, the majority shareholder of GfK SE. The corresponding interest expenses amounted to EUR 70 thousand (September 30, 2010: EUR 19 thousand). Furthermore, sales proceeds of EUR 1,192 thousand (December 31, 2010: EUR 1,244 thousand) were realized with this shareholder.

In addition, there were purchase price liabilities to joint partners of SirValUse Consulting GmbH, Hamburg, amounting to EUR 2,955 thousand (December 31, 2010: EUR 1,971 thousand).

The provisions for the 5 Star Long-Term Incentive Program (EUR 14,494 thousand; December 31, 2010: EUR 17,342 thousand) represent an obligation to selected members of the management of the GfK Group. Of this, EUR 6,002 thousand (2010: EUR 11,822 thousand) have a remaining term of more than one year.

Unless stated otherwise, receivables and liabilities in respect of related parties have a remaining term of up to one year.

contingent liabilities and other financial commitments

There were no significant changes in contingent liabilities and other financial obligations compared with December 31, 2010.

unusual circumstances

Circumstances which affect the assets, liabilities, equity, profit or loss for the period or cash flow and which are of an extraordinary nature, extent or frequency are dealt with in the introduction to this quarterly report and in the section of the interim management report on the risk and opportunity position.

segment reporting

The organizational structure of the GfK Group comprises the three sectors, Custom Research, Retail and Technology and Media, plus Other. The segmentation of the GfK Group into sectors is based on the origin of market research data.

Income from third parties comprises sales established in accordance with IFRS. Income with other sectors is earned only in the Other division. This is eliminated in the reconciliation to consolidated sales. In principle, intra-Group transactions are recorded under the same conditions as for third parties. The Group measures the success of its sectors by reference to the adjusted operating income according to internal reporting. Adjusted operating income of a sector is determined from operating income before interest and taxes by eliminating the following expenses and income items: expenses and income in connection with reorganization and business combinations, write-downs of additional assets identified on acquisitions, personnel expenses for share-based remuneration systems and long-term incentives and remaining other operating income and expenses.

The table below shows the information relating to the individual sectors for the first nine months of 2010 and 2011.

statement by the legal representatives

To the best of our knowledge and in accordance with the applicable accounting principles for interim reporting, we confirm that the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group throughout the remaining months of the financial year.

GfK_31

in EUR‘000 Income from third parties Inter-sector income Adjusted operating income

Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2010 Q1–Q3 2011

Custom Research 559,370 598,222 0 0 33,513 38,671

Retail and Technology 270,659 298,761 0 0 79,444 92,086

Media 98,343 97,967 0 0 11,163 6,351

Other 3,754 3,599 36,297 42,417 – 3,717 – 6,208

Reconciliation 0 0 – 36,297 – 42,417 0 0

Group 932,126 998,549 0 0 120,403 130,900

32_GfK


Key indicators – income statement eur million/percent

2006

2007 2)

2008

2009

2010

Sales 1,112.2 1,162.1 1,220.4 1,164.5 1,294.2

Change in % on prior year + 18.7 + 4.5 + 5.0 – 4.6 + 11.1

Personnel expenses 442.3 465.2 494.3 510.5 550.7

Change in % on prior year + 18.5 + 5.2 + 6.3 + 3.3 + 7.9

Depreciation/amortization1) 51.2 59.7 59.2 66.3 55.1

Change in % on prior year + 14.8 + 16.6 – 0.8 + 11.9 – 16.8

Adjusted operating income 150.5 157.6 158.7 147.2 185.0


Margin in % 13.5 13.6 13.0 12.6 14.3

ebitda 173.1 188.4 192.0 159.1 195.7


Margin in % 15.6 16.2 15.7 13.7 15.1

Operating income 118.5 125.6 128.9 88.9 136.7


Margin in % 10.7 10.8 10.6 7.6 10.6

Income from participations 3.4 3.0 3.9 3.9 3.9

Change in % on prior year – 87.9 – 10.8 + 28.2 – 0.6 – 1.5

ebit 121.9 128.6 132.8 92.8 140.6


Margin in % 11.0 11.1 10.9 8.0 10.9

Income from ongoing business activity 93.5 104.2 113.0 75.5 124.8


Consolidated total income 71.2 78.9 82.0 60.5 84.0


Tax ratio in % 23.8 24.3 27.4 19.8 32.7

1) Tangible and intangible assets 2) Adjusted by the effects of the settlement with ubm

5-year overview2006 to 2010 according to ifrs

GfK_33

Key indicators – balance sheeteur million/percent

2006

2007

2008

2009

2010

Non-current assets 1,120.8 1,088.3 1,085.0 1,157.9 1,232.2

Change in % on prior year + 2.1 – 2.9 – 0.3 + 6.7 + 6.4

Current assets 375.4 382.5 361.6 363.5 417.7

Change in % on prior year – 4.0 + 1.9 – 5.5 + 0.5 + 14.9

Asset structure in % 298.6 284.5 300.1 318.5 295.0

Investments 56.6 73.7 101.5 106.7 89.6

Change in % on prior year – 91.6 + 30.2 + 37.7 + 5.1 – 16.0

thereof in tangible assets1) 42.6 49.2 50.5 49.0 48.6

Change in % on prior year + 20.2 + 15.7 + 2.5 – 3.0 – 0.8

thereof in financial assets 14.0 24.5 51.0 57.7 41.0


Equity 466.4 509.6 500.3 553.0 677.5

Change in % on prior year + 9.4 + 9.3 – 1.8 + 10.5 + 22.5

Borrowings 1,029.8 961.2 946.3 968.4 972.4

Change in % on prior year – 3.1 – 6.7 – 1.5 + 2.3 + 0.4

Total assets 1,496.2 1,470.8 1,446.6 1,521.4 1,649.9

Change in % on prior year + 0.5 – 1.7 – 1.6 + 5.2 + 8.4

Net debt – 542.5 – 472.9 – 481.5 – 499.8 – 428.5

Change in % on prior year + 3.7 – 12.8 + 1.8 + 3.8 – 14.3

1) Tangible and intangible assets


Key indicators – cash flow statement eur million/percent 2006 2007

2008

2009

2010

Cash flow from operating activity 110.3 168.1 145.8 134.7 172.0

Change in % on prior year – 14.5 + 52.5 – 13.3 – 7.7 + 27.7

Cash flow from investing activity – 48.0 – 64.6 – 100.4 – 104.4 – 86.2


Cash flow from financing activity – 90.9 – 112.9 – 46.4 – 26.2 – 76.9


Free cash flow 67.7 118.9 95.4 85.7 123.4


34_GfK


Key indicators – company valuation

2006

2007

2008

2009

2010

Earnings per share in eur1) 1.86 1.98 2.04 1.42 1.99

Adjusted earnings per share in eur1) 2.77 2.88 2.87 3.04 3.33

Free cash flow per share in eur1) 1.93 3.33 2.66 2.38 3.43

Net debt in relation to

equity in % (gearing) 116.3 92.8 96.2 90.4 63.2

ebit in % 444.8 367.5 362.6 538.6 304.8

ebitda in % 313.3 251.0 250.8 314.2 218.9

free cash flow in % 801.2 397.8 505.0 583.4 347.2

Dividend per share in eur 0.36 0.45 0.46 0.30 0.48

Total dividend in eur million 12.8 16.1 16.5 10.8 17.4

Dividend yield in % 1.10 1.64 2.09 1.24 1.28

Year-end share price in eur1) 32.82 27.50 22.02 24.13 37.60

Weighted number of shares (in thousands) 35,156 35,682 35,884 35,947 35,967

1) Adjusted for capital increase2) Adjusted by the effects of the settlement with ubm

Key indicator – profitability

2006

2007 2)

2008

2009

2010

ROCE in % 12.0 12.5 12.8 9.7 14.1


GfK_35

Sales by sectors and regions1) eur million/percent

2006

2007

2008

2009

2010

Sectors

Custom Research 755.2 773.0 782.8 709.2 785.6


Retail and Technology 235.4 260.8 304.1 325.8 370.8


Media 117.0 124.5 130.1 126.4 133.1


Regions

Germany 269.6 290.3 316.1 301.3 340.8


Western Europe/Middle East/Africa 457.7 480.5 487.2 458.1 483.0

Change in % on prior year + 5.0 + 1.4 – 6.0 + 5.4

Western and Southern Europe 290.3

Change in % on prior year + 12.7

Northern Europe 167.4


Central and Eastern Europe 64.4 73.1 87.2 71.7 89.7


North America 257.3 240.7 219.7 207.2 219.3

Change in % on prior year – 6.5 – 8.7 – 5.7 + 5.9

Latin America 23.7 26.7 35.5 39.4 54.9

Change in % on prior year + 12.9 + 33.0 + 11.0 + 39.5

America 280.9


Asia and the Pacific 39.6 50.8 74.8 86.9 106.5


1) Data taken from the Management Information System

Number of employees at year-end

7,903

9,070

9,692

10,058

10,546



Glossary of financial terminology

A adjusted operating incomeAdjusted operating income does not take into account highlighted items. The management uses this financial indicator in the Group-wide manage-ment of GfK’s operating business.

—

Affiliated companies Companies which are controlled by the parent. As a rule, the parent holds the majority of the voting rights and capital of the company.

—

Associated companies Minority participations in companies on whose business or company policy a decisive, but not controlling influence is exercised. Associated companies are in principle valued at equity.

C Cash flow Balance of funds inflow and outflow affecting pay-ment.

—

Cost of sales Total of all types of operating costs which can be directly allocated to clients’ orders. These include in particular costs for external data procurement, costs for interviewees and interviewers.

D Deferred taxes Tax assets or liabilities reported in the balance sheet to equalize the difference between the tax debt actually assessed and the commercial tax burden based on the financial reporting in accordance with ifrs for the commercial balance sheet. The basis for determining deferred taxes is the difference between the value of the assets and liabilities reported in the balance sheet in accordance with ifrs and the local tax balance sheet.

—

Dividend yield Dividend per share in relation to the annual closing price.

E ebit Abbreviation for earnings before interest and taxes calculated as Operating income plus income from associates plus other income from participations.

—

ebitda Earnings before interest, taxes, depreciation and amortization, calculated as ebit plus depreciation and amortization charges.

—

Equity ratio Balance sheet equity in relation to total assets. The higher the indicator, the lower the level of indebtedness.

F Free cash flow Cash flow from operating activity less capex.

G Gross income from sales Sales less Cost of sales.

I ifrs The International Financial Reporting Standards (ifrs) are accounting principles developed and published by the iasb. In addition to the actual ifrs, the ias that are still valid and the interpretations of the ifric and sic are grouped under the ifrs.

—

Income Adjusted operating income.

—

Income from ongoing business activity ebit plus financial income less financial expenses.

M Minority participations Generic term for Associated companies and other participations. The participation quota is below 50%.

N Net debt Liquid funds and securities less pension liabilities and financial liabilities.

O Operating income Gross income from sales less selling and general administrative expenses plus other operating income less Other operating expenses.

—

Other operating expenses Expenses in connection with ongoing business activity, excluding financial expenses, not attributable to Cost of sales or selling and gene-ral administrative expenses. Examples are impairments, losses from the disposal of fixed assets and exchange losses.

P Pay-out ratio Total dividend in relation to consolidated total income.

R Ratio of net debt to cash flow Net debt in relation to Free cash flow.

—

Return on capital employed ebit in relation to average total assets.

—

Return on equity Consolidated total income in relation to average shareholders’ equity.

T Tax ratio Tax on income from ongoing business activity in relation to Income from ongoing business activity.

36_GfK


GfK_37

Global Head of Corporate Communications Bernhard Wolf Tel +49 911 395-2012 Fax +49 911 395-4075 [email protected]

Publisher GfK SE Nordwestring 101 90419 Nuremberg www.gfk.com [email protected]

This quarter report is available in German and English. Both versions and supplementary press information are available for download online from www.gfk.com.

Date: November 14, 2011

Dates 2012

12 march 2012

Annual Accounts Press Conference,

Nuremberg

—

15 may 2012

Quarterly report as at 31 March

—

16 may 2012

Annual General Meeting, Fürth

—

14 august 2012

Interim report as at 30 June1)

—

14 november 2012

Quarterly report as at 30 September1)

Provisional key dates in the financial calendar

Contacts

1) Publication is scheduled for before the start of the trading session in Germany

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