sinnerschrader annual report 2013/2014
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AnnuAl RepoRt 2013 / 2014
2013/2014 2012/2013 chAnge
Net revenues € 000s 48,601 36,401 +34 %
EBITA € 000s 3,064 681 +350 %
Relation of the EBITA to net revenues (Operating margin) % 6.3 1.9 +232 %
Net income attributable to the shareholders of SinnerSchrader AG € 000s 1,843 1 > +1,000 %
Earnings per share, fully diluted € 0.16 0.00 > +1,000 %
Cash flows from operating activities € 000s 1,517 2,439 –38 %
Employees, full-time equivalents number 444 406 +9 %
31.08.2014 31.08.2013 chAnge
Liquid funds and securities € 000s 5,833 5,949 –2 %
Shareholders’ equity € 000s 14,062 12,047 +17 %
Shareholders’ equity rate % 49 52 –6 %
Employees, end of period number 521 451 +16 %
–20 %
0 %
09/13 10/13 11/13 12/13 01/14 02/14 03/14 04/14 05/14 06/14 07/14 08/14
140 %
SinneR SchRAdeRdAX
SinnerSchrader Share price performance 2013/2014
XetRA cloSing pRiceS in % +/– compARed to pRice on 31.08.2013 (= 100 %)
Key figureS of the SinnerSchrader group
AnnuAl RepoRt 2013 / 2014
2015 RETHINK DIGITAL STRATEGY.HOW THE LATEST INNOVATIONSWILL SHAPE MARKETINGIN 2015.
#NE XT YEAR !
Four paths to the NEXT Experience. How winning brands will be managed in 2015. Page 4
The perfect path to new customers. Brands are carrying content for themselves. Page 24
Challenge and opportunity meet head-on. Amazon and Apple are turning retailing on its head. Page 8
The key to campaign success is data. But only if you can unlock their value. Page 30
What’s NEXT? Digitalisation is triggering leadership transformation. Page 34
#iNTRO
#COmmeRCe
Everything is connected and things are starting to speak. Brands are creating new uses through the Internet of Things. Page 16
#CONNeCTiON
#CONTeNT#CAmPAiGN
#OUTRO
#IN DE X
01 05–07 NEXT EXPERIENcE
#IN TR O
BY NILS WOLLNY
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NeXT eXPeRieNCeNo more marketing routine.
Brands need digital user experiences with vision
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Digitalisation marches on, changing every-thing in its path. It impacts on every single individual as well as on society as a whole, on business models and on entire indus-tries. This change sets new challenges for companies as well as opening up new op-portunities at the same time ... with one prerequisite: an unconditional focus on the user and his or her needs.
“SErvICES SuCH AS uBEr or NETFlIX ArE SHoWINg HoW IT IS DoNE. THEy ComBINE CommErCE WITH CoNNECTIoN, CoNTENT AND CAmpAIgN To CrEATE AN ouT-STANDINg oFFErINg.”
N I L S WO L L N Y
M A N AG I N G D I R E cTO R S T R AT E GY
S I N N E R S c H R A D E R
NEXT GENERATION:I want it all, nowTogether with the rheingold institute, Sinner-Schrader carried out a qualitative study of young people between the ages of 6 and 29, asking about their digital life. The main finding: no one in this age group can imag-ine life without the smartphone or the ser-vices that come with it. Intensive and mas-terly interaction with digital technologies is the norm. They distinguish less between ‘online’ and ‘offline’, and more between ‘onscreen’ and ‘offscreen’ – although this boundary, too, is becoming increasingly blurred.
young people confront the daily torrent of offers and information with an out-and-out digital mind-set: quick decisions based on a like or dislike logic, declining anything that does not promise immediate utility.
The expectations of the digital experi-ence that a brand can offer are based on its user value and on the criterion of maxi-mum simplicity. Established players like Apple, google or Facebook set the stand-ards in terms of functionality, look and feel, and design. Everything in the digital space is compared with them. To continue to be perceived as a brand in this context re-quires focusing on the design of digital ex-periences.
NEXT EXPERIENcE: the four elements of a digital brandcommerce – Transactions of goods and services. Companies like Amazon have al-tered the buying behaviour of people enor-mously in the last two decades. The next wave of innovations, which will again rev-olutionise user behaviour, is imminent: mo-bile payment, intelligent logistics and bea-con technology.
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connection – connecting the physical and virtual worlds. products such as the Apple Watch or google glass are raising the op-portunities for wearables to a new level. At the same time, technologies like beacons and NFC are bringing about new types of services. In addition, private 3D printers are creating entirely new product categories.content – material which is of great inter-est to the user. Traditional advertising cam-paigns leave the NEXT gENErATIoN baf-fled. At the same time the auction models of the network giants are reducing the ef-fectiveness of marketing spend. And ag-gregators are becoming the gatekeepers for digital offerings. For brands, therefore, developing a content strategy that offers genuine added value to the user is essen-tial for survival.campaign – communication between a brand and its public. Campaigns are cur-rently undergoing a twofold evolution: a change that is both systemic and content-based. Thanks to new technologies, the distribution side of campaigns and content has become more effective, with message and content becoming both ‘personalisa-ble’ and adaptable in real time.
A well-conceived and integrated NEXT EXpErIENCE can combine these four ele-ments into a novel and convincing offering.
Services like uBEr and Netflix are al-ready transforming the transportation and entertainment industries respectively, us-ing: connection (vehicle tracking via smart-phone or device-agnostic distribution), con-tent (liberalisation of the travel business or Netflix’ own programs) and campaigns (af-filiate marketing or social media) to create outstanding commercial propositions.
NEXT AGENcY: The agency for a new ageDeveloping such outstanding offerings and overseeing their realisation is only possible with a new type of agency: one that assists companies to keep pace with the speed of technologies and users – be-cause this is what they do themselves. one that analyses people’s behaviour, gets to the bottom of it, and is in a position to alter it with its ideas. one that thinks in terms of holistically conceived, living sys-tems, which are designed to grow and constantly change.
SinnerSchrader interfaces with tech-nology, people and brands, developing and implementing products and services that add value, and always with the user at heart. As the initiator of the international conference NEXT, we have been influenc-ing digital trends for years. We fuse crea-tive ideas and technology to develop solu-tions that make our clients successful. That is our claim. That’s what makes us the NEXT AgENCy.
N I L S WO L L N Y
is managing Director Strategy at Sinner-Schrader. Working and thinking user-centrically, he helps companies in diverse sectors to accelerate innovation and digitalisation.
02 09–12
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BY MEIKE ScHREIBER
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What Amazon’s dominant position means for costumers and marketers
The AmAzON ChALLeNGe
When Amazon chief Jeff Bezos stopped off with friends at mount rushmore in 2001, he was himself something of a tourist attrac-tion – not as the CEo of a company that was powerful even back then – but as the guy from the Taco bell Tv ads, at the time for cheese tortillas. perhaps Bezos has harboured an ambivalent relationship with advertising since then. For years Amazon ran a mile from Tv spots. Before the digital giant did eventually book Tv time for the
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kindle reader, Bezos viewed classical ad-vertising as a sign of weakness: “Advertis-ing is the price you pay for having an unre-markable product or service.”
In future he would make the advertis-ing industry pay. In all probability the ad men didn’t even notice what was facing them. one person who did grasp its signif-icance is google CEo Eric Schmidt: “our biggest search competitor is Amazon.” After all, one in every three product search-es is already carried out in Amazon and not in google. That means fewer clicks and fewer AdWords dollars for google. But it’s not all about search.
With the exception of Eric Schmidt, the rest of the world still sees Amazon above all as an online sales platform, as a quasi-monopolist even, which looks to gain ever more market share with little thought for profit. With good reason: almost every sec-ond e-book in germany is bought following recommendations from Amazon. Amazon has more than 40 percent share of the en-tire book market (this, too, is only like read-ing tea leaves). In 2013 its turnover in books, music, electronics and clothing in germany totalled €7.7 billion. one in four euros spent in germany on e-commerce is pocketed by Amazon.
And Bazos is doing his utmost to en-sure customers stay with him. He is build-ing a digital conglomerate that includes: clearly subsidised kindles, its own publish-
ing programme for authors, a digital library with an ‘all you can read’ flat rate, content suppliers with their own Tv productions for its ‘Instant video’ play station and the ‘Fire Tv’ in-house Tv set-top box. The purchase of the Washington post fits into the overall picture too, strengthening the content of-fering for the kindle. The purchase of ‘Twitch’, a youTube for gamers, ensures yet more content and new sales leverage.
And then there’s the ‘Fire phone’ To date it hasn’t been a big sales hit. Nor does it have to be. Bezos takes a long term view of the smartphone. It not only triggers the sale of more digital content, above all it hoovers up data: with a single touch of a button the user activates the purchase-fea-ture and can buy products, music and vid-eos taken by its camera and/or micro-phone. In this way the mobile phone turns the world into a showroom, and Amazon is not only positioned right at the start of the sales process, but makes even google search in part superfluous. Why bother typ-ing into a search engine when a simple photo will do?
There’s more: Amazon saves photos taken with the ‘Firefly’ feature to improve the functioning of its system.
Through additional gpS data, local information and other metadata the com-pany learns more about the user: where they shop, what they do in their free time, what interests them apart from shopping and maybe what they have kept hidden from Amazon up to now. For example, say you take a picture of your child with the recognition tool. Amazon can use this for precise product recommendations and more impactful advertising.
So while google can only tell advertis-ers what users are searching for and click-ing on, Amazon can tell them what they are actually buying, where and how often they are buying it, and increasingly and more
“our BIggEST SEArCH CompETITor IS AmAzoN.”
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precisely – with an ever closer eye on the Customer Journey – why they are buying it.
Amazon has only really been a com-petitor for Schmidt since the company has been accused of going after more advertis-ing spend and utilising its data goldmine to this end. Amazon already wants to start its own display advertising network in 2015 and to place advertising space similar to AdWords. Firstly the advertising will appear on its own website, and then later also on other publishers’ sites. In doing so Amazon is entering into direct competition with google.
And not just google. The targeting gold-mine impacts equally on marketers, tech-nology providers and agencies. If Amazon starts to peddle its own personalisation algorithm and its data power, it will make these service providers superfluous to some extent. It is not just a case of Amazon being able to achieve outstanding conver-sion rates due to its data and its reach. With each single click Amazon enhances its know-how to improve its own products, its own content and its own services.
There is a lesson in how this online giant deals with its partners: if the data shows that a new product is selling particularly well in a seller’s marketplace, that is often a cue for Amazon to sell it directly – under-cutting all other prices in the process. If a consumer goods manufacturer comes to enjoy double-digit market share on Ama-zon, Amazon puts on a real squeeze for re-bates and new terms, as book publishers in particular have found out, with corre-sponding impact on sales too.
For Amazon is interested above all in low prices – and cross-subsidisation of the manufacturer’s and trader’s advertising monies suits that goal perfectly. Charges (effectively ‘tolls’) could work one day to the detriment of these brands, if Amazon were to support predatory pricing with marketing monies, to force through its own brands against the competition, for exam-ple. or to undercut in the trader’s market-place. ultimately, Amazon can always be cheaper, because it alone can avoid the Amazon charge.
O L A f KO L B R ü c K
is founder and director of specialist e-commerce portal etailment.de and author of the book ‘Erfolgsfaktor online-marketing’. From 2000 to 2013 he was a reporter with HorIzoNT magazine, with responsibility for internet and e-business.
H OW TO D E A L W I T H A M A z O N
# Exploit presentation options such as product descriptions, product images, videos.
# utilise Amazon advertising packages such as the Brand Store to expand your own channels.
# offer only certain product lines on Amazon.
# Strengthen and/or diversify through other sales channels.
# Sell private labels and new products initially through your own channels only.
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When your smartphone becomes your wallet
mOBiLe PAYmeNT
When Apple chief Tim Cook revealed the iphone 6 in autumn 2014, one new feature in particular caused lively debate especial-ly among the brand’s aficionados: the ‘Apple pay’ mobile payment function. Cook announced presumptuously: “Apple pay will forever change the way we buy.”
Time will tell. owners of the new iphone have only been able to pay with it since october 2014 – and so far only at 220,000 contact points in the uS. At its heart is Near Field Communications (NFC) technol-ogy, which transmits data by a radio signal from mobile phone to a station. For secu-rity, users must identify themselves by fin-gerprint. In Europe, where NFC technology is actually more widespread than in the united States, the service is expected to be available to iphone users from 2015, by which time wearers of the Apple Watch in the uS will also be able to use it.
one thing is clear: paying is getting easier. A new technical revolution is around the corner. With the introduction of iTunes, Apple has already proven that people’s pur-chasing behaviour can be radically altered.
For each Apple-pay transaction of 100 dollars, the Americans pocket a 15 cent charge from participating banks and card providers – which Apple claims makes it cheaper than other payment methods.
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“up to now no technology has been able to establish itself on the mass market. The latest push from Apple with various credit card providers could change this in the me-dium term, however,” wrote Deutsche Bank in a study of the FinTech sector.
The trend is clear: in 2013 the volume of cashless payments globally rose by 9.4% to 366 billion transactions, compared to 2012. According to the latest payment re-port by consultancy firm Capgemini, this was “due to the strong growth in emerging markets as well as increased use of cred-it and debit cards, especially in electronic and mobile payments.”
With more and more people using tab-lets and smartphones, the lines between online and mobile payments are becoming increasingly blurred, according to Cap-gemini. The consultancy anticipates an in-crease in mobile payments worldwide of around 60% per year from 2011 to 2015. For online payments, on the other hand, Cap-gemini has forecast a yearly rise of “only” 16% over the same period.
Even in germany, long a mecca for notes and coins, many more people are likely to pay without cash in the near future.
The auditing and consulting firm pwC esti-mates that the 176,000 end users in germa-ny who currently pay by mobile will rise to 11 million by 2020.
And Apple isn’t necessarily the trail-blazer. many start-ups, banks and mobile phone operators already offer mobile pay-ment options. And even the Ebay subsidi-ary paypal is currently testing an app for mobile payments in germany. However, thus far, no system has established itself. At present only 40,000 of the more than 740,000 payment terminals in germany can communicate with mobile devices or special cards.
That may change: masterCard recent-ly compelled all its german retail partners to convert their terminals to NFC technol-ogy by 2018 at the latest. A survey by the EHI retail Institute of 55 retailers with a total of 58,300 outlets found that 81 per cent want to upgrade their cashier systems.
But what about the banks, whose core business is, after all, payments? For the time being they are relieved that Apple continues to cooperate with them. The german Sparkassen (savings banks), for example, have already announced that they
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wish to work together with Apple. As a pay-ment is only completed when the custom-er’s account has been debited. “The cake has not yet been divided up,” contends Deutsche Bank in its latest FinTech study. Banks will not give up the commissions that go along with payments without a fight. Nor should they: experts at Deutsche Bank believe that, in the current test phase, the traditional finance providers have the opportunity to play a part in formulating digital payment solutions.
In marketing departments, too, espe-cially those of manufacturers of consumer goods, experts are musing over how Apple pay will influence purchase decisions. The widely held view is that opportunities lie in particular with Apple’s passbook app for loyalty programmes, which in all probabil-ity will be linked to its payment system. marketing decision-makers need to ensure that users can easily deposit their loyalty programmes or coupons with the app. The app can then advise the customer how many points their current purchase is worth or automatically pay for a product with the appropriate coupon.
Anneke Neuhaus, marketing expert at the Frankfurt university of Applied Sciences, says: “marketing decision-makers need to ask what benefits the customer can draw from it. Further information on the prod-uct can be provided via smartphone, for example. In the case of higher value prod-ucts, why not offer an explanatory video or an alternative model in a different price category? The customer can acquaint himself or herself with the product or take advantage of a discount scheme or bonus points by using the payment function.” moreover, manufacturers will understand their customers better and utilise this insight for product development or for im-proving communications. “The opportuni-ty to interact with the customer this way can lead to some displacement in the market, but equally to a genuine win-win,” says Neuhaus.
The delicate issue surrounding data protection raised by the NSA affair re-mains. At Apple they are at least attuned to the sensitivities of Europeans in particular. “Apple doesn’t know what you have bought, where you bought it, or how much you have paid for it, ” swore the management at the reveal of Apple pay.
M E I K E S c H R E I B E R
meike Schreiber is a Frankfurt-based journalist who has been reporting for many years on the banking sector. She founded the journalist agency SchreiberDohms along with Heinz-roger Dohms. Both write for ‘Capital’, ‘manager magazin online’ and ‘DIE zEIT’, among other titles.
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If everyday objects could talk, what would they say? That is the question we should ask ourselves when thinking about the opportunities offered by the Internet of Things, or IoT for short. The IoT is what you get by connecting physical objects – Tvs, cargo containers, bracelets, coffee makers, cars or thermostats – to the internet: A connected world, studded with sensors, permanently exchanging data with both machines and humans. And it is one of the most influential trends in technology we have seen since the advent of the consum-er internet itself. How can IoT be beneficial in the context of marketing?
Data and deep engagementover the last few years, we have witnessed a wide range of experiments around the IoT. many of the more widely known ones were driven by advertising. To name one well-re-spected example, Budweiser built a big red light that connected to the web and checked a feed for ice hockey results. Whenever the user’s favorite team scored a goal, the light would flash, and a loud horn would sound. It was a cute, well-executed and playful way to engage with fans around a topic they were passionate about. Hundreds of these lamps were sold as these fans paid money for an advertisement in their living rooms. As advertising ideas go, this one was very smart. And it just scratched the surface of what is possible.
The IoT allows for a much deeper engage-ment and has the advantage of allowing us to collect and analyse data to build servic-es that are valuable to both the audience as well as marketers. Two areas offer partic-ularly huge opportunities for fast movers who overcome the (sometimes thorny) challenge of balancing value-add versus ‘data collection creepiness’: Wearable tech-nology and connected driving.
Wonderful Wearables What happens if you strap a smart watch to your wrist or place a fitness tracker in your pocket? By putting on wearable tech-nology (Wearables for short) you allow a computer complete with sensors and inter-net connectivity into your life. most of us don’t think much about it, after all we car-ry a connected computer almost constant-ly anyway: our smartphone.
As sensors and chips get both smaller and cheaper, Wearables evolve. rather than bulky smart watches, we see styl-ish accessories: Jewellery and fashion are increasingly connected, too. A ring that subtly notifies you of a text message from your spouse? New york startup ring-ly has created one. Clothing that tracks your vital signs? look no further than the sports bras and running shirts that San Francisco-based Sensilk is currently devel-oping.
What today may sound like gadgets for early adopters will be a normal part of life within just a few years. If we build services today that are so good, valuable or inter-esting that users let them into their every-day lives, it allows for huge engagement opportunities.
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crowdshapingWith new technologies at hand, data cap-tured from people in the physical world can be used to reshape experiences. Wearable bracelets like the lightwave, an invention by Silicon valley technologist rana June, can measure physical engage-ment and energy levels of the people wearing them – like in this case allowing the DJ to play with the information and to show the most active dancers on a leader board. This kind of innovation cannot only be applied to performances, it can also reshape the way we shop. Just imagine, for example, advertisements that adjust in real-time to the emotions of a Tv-audience or in-store offers reshaped by the energy level of the shopping crowd.
connected drivingAlong with data, cars move into the cloud – or rather, the cloud moves into the car. Automobiles become another media sur-face, another interface. As cars – owned or shared – get connected to the internet, the car stops being a mere means of transportation.
By combining navigational data (where you are now and where you want to go), intentional information (your calendar knows where you want to go, why and with whom) and external data sources (weath-er, traffic, event information) we have a treasure trove of data points to work with. We can build true context-aware services. This could range from subtle reminders to more complex offerings. Two examples:
• Shopping reminders: “Your fridge says that you need milk. We are passing by a supermarket with milk on offer in two minutes. Do you want me to recalculate your route?”
• Media recommendations: “Based on current traffic information, your drive is estimated to last about 28 minutes. Should I read you a few chapters of your audio book?”
The key: respecting privacy The key to success is, as always, to be sen-sible. With the tools provided by the Inter-net of Things, companies are tempted to collect as much data as possible just to be safe: Collect first, analyse later. In germa-ny, more than anywhere, consumers are highly sensitive to data collection and the implications for their privacy. As such, we will see consumers reward those compa-nies who find the best balance between marketing that offers added value based on data analytics on the one side and respect for privacy on the other. Don’t be a creep, and consumers might allow you into their lives. If they do, both sides will benefit.
P E T E R B I H R
peter Bihr is the founder of The Waving Cat, where he explores the impact of emerging technologies and helps apply the insights of innovators through consulting and conferences like Things- Con and NEXT Berlin.
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“Software Is Eating The World” explained the entrepreneur, investor and developer marc Andreessen in a famous essay of 2011. “How come?” one may ask: Sure, doesn’t the physical world still consist mainly of at-oms, even if bits are taking over in the dig-ital sphere?
part of the answer lies in beacons (or iBeacons, as Apple calls them), which connect the physical and digital worlds. Bea-cons are nothing more than small transmit-ters with low energy consumption and lim-ited local reach. mobile phones, for example, can receive and react to their signals.
It is thanks to beacons that an app knows the location of its user and can of-fer him or her a relevant user experience
in that context. Among the earliest adop-ters are retailers – no surprise that Apple quickly equipped its own stores and upgraded the Apple Store app accordingly.
But the possibilities go well beyond the retail space. Interactive museum guides con-verse with visitors via beacons, explaining all about the latest exhibitions. In the uS, fans inside baseball stadiums receive back-ground information on the game that is tak-ing place. The ticket inspector on the train makes his presence known to the railway app via a beacon, as a result of which the app on the passenger’s smartphone automatic-ally displays his or her digital ticket.
All kinds of new interfaces can be cre-ated. In place of cumbersome ATms, as we know them, bank customers can avail themselves of an elegant app which, thanks to beacons, knows which customer is at the ATm. After a minimum of interaction the machine dispenses the desired amount.
The scope for innovative services is practically limitless. But here, too, success will depend on how well the user’s require-ments are considered and how the content and user experience is suited to the loca-tion and context. For marketers, beacons become valuable, when indiviual interac-tions with the brand or its products are beautifully designed to create real benefits for the consumers. The most important thing is to stay relevant: If it isn’t relevant, the user will ignore it. Creativity, too, is called for. After all, to just send out pushy messages flagging the latest special offers is to ignore the opportunities which bea-cons provide.
The invisible keys to new services
D R . A X E L AV E R D u N G
is Head of Strategy at SinnerSchrader und developes innovative solutions for digital products and services.
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Dawn of a magical times
The watch on your wrist has long stopped ticking. Instead, you can talk to it, read the news on it, or pay for a coffee with it. It’s likely, in the coming year, that every early adopter will wear one, and so get to expe-rience all the wonder of mobile connectiv-ity: new technologies, new applications and new customers. With the smartwatch and other innovations, the Age of Connected Devices is dawning. So what will the world be like, when everything is connected with everything else? And what consequences will that bring for the mobile sector?
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A torrent sweeping through the sectorExperts are predicting that the number of connected devices will increase one hun-dred fold within the next five years. The mobile sector will become the mobile con-nectivity sector. Everyone will be affected – developers, start-ups, agencies, provid-ers of mobile products, marketers and big brands. A look at Berlin, where the mobile sector in germany is particularly well-represented, reveals the magnitude of the upheaval that is currently taking place.
The technological revolutionBehind this trend are three technological drivers: the devices, the connectivity and the cloud. Every few months the device manufacturers introduce new features such as mobile payment or smart objects – more memory, more performance, more screen. The connectivity options are also becoming greater: mobile communica-tions, Wi-Fi, NFC, Bluetooth low Energy and proprietary in-car connectivity such as Carplay or Android Auto. Behind them lie the cloud services, which gather and ana-lyse all the data. Working wonders with everyday stuff! Coffee lovers, for example, can connect via an app with the Espresso machine in the coffee shop, which then brews the desired coffee. payment for the cappuccino then takes place automatically with the smartphone. This is already a reality at TopBrewer in Copenhagen. It’s child’s play for the customer and extreme-ly time-saving for the coffee shop.
Powering the marketConsumers are ready. And so are electrical retailers: mediamarkt recently created a large department for digital wristbands and smartwatches and wants to expand it further. remember the headphone market? Small and unexciting only three years ago, it now features lots of interesting products and retailers offer a large range of them. It will be the same with Connected Devices.
f RO M M O B I L E M A R K E T I N G
TO c O N N E cT I V I T Y S T R AT E GY I N 6 S T E P S
TODAY:
1. Dedicate far greater resources to managing mobile assets (app and web).
2. raise activity levels to achieve greater frequency and higher numbers of app downloads.
3. Improve those neglected mobile web portals.
TOMORROW:
4. Create a user case related to a device (e.g. smartwatch).
5. Connect web applications with the physical world (e.g. in stores).
6. Develop your own proprietary connected device.
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Personalised stimuliopportunities to reach customers and prospective customers at just the right moment have increased enormously. per-sonalised stimuli allow for a completely new form of Customer relationship man-agement, which in retail can make all the difference. A new shopping centre in mar-seilles, fitted out with 240 beacons, illus-trates just how it works: if the customer has the relevant app, he or she receives location-based promotions from the stores, and the shopping centre can analyse in de-tail the resulting customer traffic.
The end of isolationAn app here, an app there, maybe a mobile website, a customer app, then a banner and a mobile landing page ... the mobile sector has long offered only additions to isolated applications. Now stand-alone solutions are being connected with the physical world: with a smartwatch, with a beacon in a shop, stadium or museum, with a check-out, a door, a piece of packaging or a car – and all of it based on technologies and code languages from the mobile sector.
Pressing ahead with no standardsThe biggest mistake here is to do nothing. Despite the absence of technical stand-ards, all the big players are already active in the game. google is positioning itself with Nest in the area of home automation for house and office. Behind the iBeacon lies an Apple protocol. And all players are developing in-car platforms.
L Au R E N T B u R D I N
is managing Director of SinnerSchrader mobile in Berlin, right in the heart of germany’s mobile ecosystem.
“ THE BIggEST mISTAkE IS To Do NoTHINg.”
“The area of mobile connectivity holds huge opportunities, but considerable risks at the same time. The biggest risk is to do nothing. We can see that currently in the retail industry, where we are talking about the likes of Amazon and other giants such as Alibaba, with a market capitalisation of over $200 billion. many of those involved are banking seriously on innovative mobile solutions: Tesco, for example, with co- nnected price signage, the rolling out of a beacon network and push notifications in store. or Amazon with its own ‘Dash’ device, a barcode reader with a microphone, which helps to draw up household shopping lists and connects automatically with the app, thus enabling one-Click-Shopping. Imagine if every brand were to bring its own device onto the market to connect with its customers in its own charming way. That would be the stuff of dreams in my book.”
04 25–27
28–29
BEST PRAcTIcE
ENTERTAINMENT
#cO NT ENT
BY NILS jAcOBSEN
BY ADAM TINWORTH
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BeST PRACTiCecuRVED.de – The ‘Michelin Guide’
for the mobile generation
“An ipod. A phone. An internet mobile communicator.”
Eight years ago Apple’s founder pre-sented his invention to the world. The gadget would influence the culture of the 21st century like no other, and pave the way for the triumph of the smartphone.
Within the past few years our usage habits have changed fundamentally – away from the desk, and over to the smartphone or tablet. “mobile first” is being increasingly replaced by “mobile only”, especially among the young generation. mobile has won out.
But what does this younger revolution mean for telecommunications and mobile phone providers, who connect millions of customers around the world with their net-works? Above all, it means a complete re-think. The telephony and SmS business model is the stuff of yesterday. In the near future it is data volume which will make up the lion’s share of revenue. But how and where can (potential) customers be rea-ched most efficiently?
This is something which E-plus, for ex-ample (now number one in the german mobile phone market following its merger with o2) has to address. In this broadly sat-urated market, the key is to develop points of differentiation. Traditional Tv and print advertising have long been able to reach the target market only marginally and for a short time-span. The internet would ap-pear to be the natural way to go. With ban-
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ner advertising and initiatives to acquire new customers through online and social media seemingly exhausted, CurvED cre-ates a new route.
content for ‘Generation Touch’on behalf of the E-plus group, Sinner-Schrader launched the CurvED platform at the beginning of 2014 – providing the generation Touch with a tech portal for the mobile era, something which had been pre-viously lacking. CurvED reports on the hu-man side of the mobile revolution, telling us what the gadgets are doing for our lives, how they are making our everyday easier and driving social progress.
The concept draws on a successful 100-year-old recipe: content marketing. John Deere, the American agricultural machinery manufacturer, has been talking to its customers in ‘The Furrow’ magazine since 1895. Another fine example of suc- cessful content marketing comes from 1900: the michelin guide. The brainchild of tyre manufacturer michelin, the restau-rant guide has long given motorists good reasons to go that extra mile – and to use more tyres, thus contributing to increased sales in the process. Since the very begin-ning, the success of this model is based on two pillars: the quality of the content itself and the integrity achieved by separating the brand from that content.
Reach rules more than a century later, CurvED is adapting this principle for the digital age. The editorial team, made up of experienced tech journalists, offers smartphone users round-the-clock support and help, orienta-tion, analysis, background pieces and ad-vice. over 25 new articles appear each day on the site, which reaches 1.3 million unique users per month. Independent editorial content – which, from a quality perspective, is journalistically the match of any traditional media title – is the founda-tion of this sustained growth.
The rapid rise in reach has been possible due to a steep learning curve and constant monitoring of the traffic generated per ar-ticle. SEo experts help to priorise subjects and keywords and ensure the website is optimised technically for google. visibility on google is a critical determinant of suc-cess, as being on the google News Index leads to an explosion in traffic: presence on organic search delivers sustained traffic for CurvED, even for older articles.
So what direct benefits does E-plus draw from CurvED? “leads generated by content enjoy better conversion in our Shops than do leads from advertising”, according to Jürgen rösger, who, as Chief Digital officer (CDo) at E-plus, supervised the introduction of CurvED. In other words, the more often a page is read, the higher the conversion rate. The articles concerned are linked to appropriate products in the Shop, with additional banners – and adver-torials including offers – developed specif-ically for readers of CurvED.
CurvED’s success formula can serve as a blueprint for other sectors: why let ‘manager magazin’ or ‘rolling Stone’ do what a bank or music portal with suitable product links can do just as well?
N I L S jAc O B S E N
Nils Jacobsen is a financial and tech journalist with 15 years of experience. Apart from being the editor-in-chief for CurvED, he writes among others for the media portal mEEDIA and yahoo.
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how are things at CURVeD one year on?Nils Jacobsen: very positive. SinnerSchrader has managed to create a tech portal that works, in just 100 days. With over 1.3 million users visiting CurvED each month, we already have twice as many as the online offerings of ‘Neon’, ‘Computer-woche’ or ‘Horizont’. Editorial independence is clearly the basis for sustained growth.
What are your key success factors?Felix Disselhoff: The technical foundation, which SinnerSchrader brings to the table as one of Europe’s leading digital agencies, is extremely important. The interface between editorial and programming allows problems to be solved very rapidly and in an integrated way. Above all, though, contemporay content is the key in the mobile tech space. What can marketers in other sectors learn from CURVeD ?Nils Jacobsen: These days innovative projects are taking place almost exclusively online. The learn-ing effects occur practically on a daily basis – even in the interaction with our readers in the form of comments or social media. CurvED’s success as a content provider can certainly be transferred to other sector portals in the music, lifestyle, food or finance space, but not without adapting it. The tech space has its own particular target group.
in your opinion, what are the prerequisites for a successful content portal? Felix Disselhoff: An absolute commitment to editori-al independence and lots of patience. We were not ex-pecting CurvED to be the rapid success it has been, but in the fast-moving tech scene no two months are the same. Every day is a new challenge.
Interview with cuRVED editors-in-chief Nils jacobsen and felix Disselhoff
“lEADS gENErATED By CoNTENT ENJoy BETTEr CoNvEr- SIoN IN our SHopS THAN Do lEADS From ADvErTISINg.”
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Tv used to be such a simple medium. you checked the schedule, you switched it on and watched it. or you missed it. All very simple.
Those days are very long gone. Televi-sion has been going through the same dig-ital disruption as other forms of content –but in slow motion. A decade ago people were talking actively about the end of line-ar Tv – and yet, it endures. There hasn’t
been a single device-based disruption to change things, or a single service that upended the business. Instead, disruption is coming from all angles, in a multitude of forms.
on one extreme you have the rise of paid streaming services. The last couple of years has seen a proliferation of streaming boxes to attach to your Tv. Apple’s “hobby”, the Apple Tv, has long been a front-end for iTunes content, but now serves as a streamer for Netflix and an ever increasing number of other services. google has two offerings in the fray: the Chromecast stick – a tiny budget device, which allows video to be ‘cast’ from other devices, and the new Android Tv-based Nexus player. Amazon released its Fire Tv earlier in the year, primarily as a front-end for its prime Streaming service.
What started as peripheral services have now become proto-Tv studios in their
The Superseding of the Goggle-Box
YO u T u B E -S TA R P E W D I E P I E
Earning millions with funny gamer videos
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own right. Netflix has been creating original series for a while – and extending the life of cancelled series like ‘Arrested Develop-ment’. However, it’s now going even bigger by expanding the vastly successful marvel Comics movie franchise. Five interlinked series are being shot now, introducing a group of street-level superheroes, who will eventually come together as a team.
Amazon has also dipped its toes into the original content production world, with three rounds of pilot productions, many of which have gone to series – including the well-reviewed ‘Transparent’. And, unlike traditional broadcasting, these series are usually released simultaneously, rather than serialised across weeks or months. This is no longer appointment Tv, but sto-rytelling for the post DvD boxset age.
This changes the relationship with marketers and advertisers. For one, this new breed of television series does not carry advertising. In effect, the series is, itself, advertising for the streaming sub-scription. For those looking to ride on the back of their success, the only opportuni-ties seem to lie in product placement.
perhaps the most interesting develop-ment, though, has been the rise of the you-Tube celebrity to the point where they have become viable media brands in their own right. youTube has been heavily promoting its biggest celebrities – because of the ad-vertising revenue they can draw. pewDie-pie – real name Felix Arvid ulf kjellberg – is the biggest celebrity they have right now. He produces videos for gaming fans which rapidly cruise past the 2m to 3m views mark, from 30 million followers. According to The Atlantic, ads on those videos net him between $140,000 and $1.4m – a month. His current contract with maker Studios ends now. It’ll be interesting to see what he does next.
michelle phan, Bethany mota and ro- sanna pansino, the stars featured in you-Tube’s advertising campaigns, cover fash-ion, beauty and cooking. They’re one per-
son lifestyle brands, talking direct to huge audiences in a way that traditional Tv would have rejected as unprofessional. A new medium is emerging, one with very different content rules from the old one.
There’s a new vocabulary of video con-tent that makes sense in a digital world. BuzzFeed, that content powerhouse, has invested a significant amount of money in both hiring top-flight talent – renowned online video pioneer ze Frank – and build-ing a studio to produce its video work. The studio has a large number of standing sets of classic locations – homes, offices, cafés, and the like – which allow them to quickly go from drawing up an idea to shooting the video on the set. BuzzFeed’s funding is expected to grow so that they can offer everything from animated gIFs to motion picture-length productions.
This is the new dynamic of online video content – fast, personal, with smart use of technology and standing sets to bring ide-as to life fast. And they’re consumed, on demand, on any one of a huge range of devices – a range that continues to grow year on year.
This quiet, slow revolution is still roll-ing on, but it’s far too advanced to ignore now. If you’re looking to take advantage of it, the traditional media buying route is looking ever less relevant. Will you support emerging media, shown mainly online? or will you enter the cheap, smart and person-al content production game yourself?
A DA M T I N WO RT H
Adam Tinworth is a business journalist, publishing strategist and lecturer in digital journalism. For over a decade he’s been studying media, tech an business topics and writes about them on the NEXT blog.
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PRIVATE PROGRAMMATIc
cuLTuRE Of TESTING
#cA MP AIG N
INTERVIEW WITH MATTHIAS ScHRADER
TIPPS BY AMELIA SHOWALTER
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Maintaining sovereignty over customer data
online advertising is being automated at a rapid rate and has been able to target, based on user pro-files, for some time. key to this is the data which firms now possess, but which they often don’t use effectively. NEXT AuDIENCE delivers improved re-sults with its private programmatic offering, linking advertisers’ own exclusive data with indi-vidually tailored algorithms. matthias Schrader ex-plains how it all works.
how do companies manage to get data that can help them in their campaigns? matthias Schrader: Amazingly, most already have access to it. Advertisers’ own exclusive data, so-called First-party data, is extremely valuable. Ex-amples would be data illuminating how customers use their website, as well as Crm data. Their value lies in the fact that these days a significant portion of display advertising in programmatic buying is based on user profiling. In reality this takes place in milliseconds, in high speed. And as with every auc-tion, he who possesses the best information makes the best deal, in this case reaching the relevant us-ers on the most favourable commercial terms.
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M AT T H I A S S c H R A D E R
c E O S I N N E R S c H R A D E R
“ SCrATCH BENEATH THE SurFACE AND you’ll FIND AN EpoCHAl WAr IS goINg oN AT THE momENT ArouND ADvErTISEr DATA.”
That sounds a bit like the age-old retargeting.matthias Schrader: retargeting is in actual fact a special case in the process, which we at NEXT AuDIENCE call private programmatic. It differs from conventional retargeting in three main ways. Firstly, we don’t just look at the buying funnel, such as cancellations at the shopping cart stage, for ex-ample. We analyse a user’s Customer Journey, de-livering relevant messages in every phase of the customer cycle. That’s the only way to scale display advertising for advertisers in the entire process. Secondly, we don’t depend on cookies, we save the profiles on our own server, enabling us to enrich them at any time with other information, such as Crm data, or using statistical methods to divide the market into segments, which can be addressed individually. Thirdly, with our solutions, advertisers can define with great precision the quantity and quality of contact for each user. This is something which will become ever more important for the short-term success of campaigns and the long-term acceptance of online advertising.
So what is Private Programmatic exactly?matthias Schrader: Scratch beneath the surface and you’ll find an epochal war is going on at the moment around advertiser data. on the field of battle there are three parties, whose future business model lies in monetising this data. In one corner you have the large platforms such as google and Facebook, in another the ad networks (retargeting providers of a sort) and then again you have the international media agency networks. The latter two are losing their purchasing advantage through auction models with real Time Bidding– under the hammer, more of the same becomes dearer, not cheaper. And so they are trying to maintain their very comfortable mar-gins using their own technology. Here’s the hitch: in this game advertisers can’t really exploit the poten-tial that programmatic Buying offers them. very few advertisers will want to share their Crm data with google and Facebook, for example. media agencies are awkward bedfellows for them too, because a
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As Director of Digital Analytics Amelia Showalter participated in president obama’s successful re-election campaign. Her new mission is to bring the obama campaign’s culture of rigorous testing and analysis to progressive organisations, campaigns, and companies. Here are some of her tips about testing:
# rely on data, rather than gut instinct. If you’ve got ideas about which marketing messages will work on your audience, you should test them out and let the data prove you right or wrong.
# Start small! If you have an email news-letter, you can divide your audience randomly in half and test out some new messages and formats. or you can run a test on your website, and try out new ways of getting people to make purchases or sign up for your email list. To build up the culture of testing, you just have to start somewhere and keep testing out new ways to improve.
CulTurE oF
TESTINg
It’s important to test out lots of mes-sages and images, and to use every opportunity to learn more about your audience’s preferences.
# Implementing this culture of testing means that people will need to do a little more work, to come up with different versions of each email, banner or web-page. It is important to plan ahead. And, of course, the leaders of a company will need to approve the process. It’s very hard to have a culture of testing if the people at the top aren’t on board.
# To amend campaigns, it is important to have the right data at hand. The most useful information about people is the information they voluntarily give you.
A M E L I A S H OWA LT E R
cONSuLTANT AND DIGITAL STRATEGIST
near-lock-in occurs through their own proprietary technology. user profiles can’t be transferred to a new agency partner, and so advertisers have great difficulty in switching agency partners without suffering massive losses in performance.
At NEXT AuDIENCE we work exclusively for the fourth party at the table: the advertisers who, as hosts, pay for the entire show at the end of the day. We operate an exclusive Data management plat-
form (Dmp) for them on their own hardware. This guarantees complete control over their data and allows them to enrich user profiles without having to release information, such as Crm data, for exam-ple, to third parties. As the only costs involved are technical, the entire efficiency gains in program-matic media buying go to the advertiser, who doesn’t have to share them with third parties. We call this principle private programmatic.
06 35–38
#O uTR O
BY MARTIN REcKEWHAT ’S NEXT
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The digital transformation reaches top management
The impact of most inventions is overesti-mated in the short-term, but dramatically underestimated in the long run. Truism though that may be, it happens over and over again. With such predictability, in fact, that gartner’s IT consultants have man-aged to plot it in some detail in their ‘hype cycle’ for each new technology.
Hype surrounding the digital transfor-mation probably reached the peak of ex-aggerated expectation in 2014. Just like the New Economy fifteen years earlier, it arrived at the floor of top management, who quickly delegated it to interns back in 2001, prior to its gradual reemergence in the middle of the last decade.
With the NEXT conference alongside other events, SinnerSchrader has been overseeing the digital revolution since 2006 – from its beginning and initial successes through to the transition to its next phase, the digital transformation. This revolution has shifted the balance of power to the benefit of the consumer and the detriment of the corporation. Today, digital consum-
ers expect the same standards in their analogue world as they have come to know from the network or their smartphones.
In the first instance this has conse-quences for interfaces, communication and interaction with customers. And subse-quently for products and services them-selves, as well as for the entire production process including the supply chain, as described by terms such as ‘Industry 4.0’ and ‘Industrial Internet’.
In this way the digital transforma- tion transcends traditional departmental boundaries. Where the matter becomes the remit of the Chief marketing officer, the ex-perience of recent years has shown that few Cmos on their own can put companies
N E X T B E R L I N
Since 2006 SinnerSchrader has been introducing digital business trends at its annual conference NEXT Berlin.
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with an analogue mindset onto a digital footing. It needs a clear commitment on the part of the CEo.
many firms, especially in the uS, react to this realisation by appointing a Chief Digital officer (CDo). Atif rafiq, for example – formerly of Amazon – has been advanc-ing digital at mcDonalds for the past year, seeking to extend the fast food chain into an e-commerce enterprise. Around a quar-ter of uS firms will have a CDo by 2015, according to gartner. In the first instance this is a clear signal – both internally and externally – that the subject has made it to the top management rung, and now has a voice on the board of management.
That CDos are sometimes also posi-tioned in the second tier of management is only a limitation of sorts, as other CXos are in the same boat.
Another approach is to include the subject area within the remit of the Coo, who, well used to tasks which transcend depart-ments, tends to view the digital transfor-mation more from a procedural and pro-cess perspective as a result. Deutsche Bank opted for this approach in autumn 2014 when its Coo, Henry ritchotte, took over responsibility for digital.
other potential candidates for the role of the digital transformation in manage-ment are the CIo and CTo, of late the latter tends to be sometimes written out as ‘Chief Transformation officer’. They are already responsible for the digital platforms and processes within the organisation, which gives them a gatekeeper role.
At the end of the day it is not what the management position is called, or whether it is newly created or not, that determines success. What is critical is• the support of the CEO, in order to over-
come resistance within the firm• that the digital transformation, being a
topic of much strategic import, resides with top management,
• a clear focus on the consumer and his or her needs, as consumers are further ad-vanced in the digital space than most companies.
From the very start the NEXT set itself the task of providing a level of orientation in what is a confusing environment, and to put relevant trends and subjects onto the decision maker’s agenda. Alongside the yearly conference, a rich video archive and a constantly updated blog also serve this end. With the ‘NEXT generation’ study,
P E T E R H I N S S E N
Au T H O R A N D S P E A K E R AT N E X T 1 4
“ IT IS THE BEST oF TImES AND IT IS THE WorST oF TImES. TECHNology HAS NEvEr BEEN morE AmAzINg, BuT AT THE SAmE TImE, WE FEEl THE CHAllENgES For our orgANISATIoNS.”
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carried out for the first time this year by SinnerSchrader and the rheingold institute, we are taking a qualitative glance at the behaviour of the young user segments.
In addition, we have started to devel-op the NEXT Executive Circle, as a forum for decision makers who wish to face the challenge of the digital revolution. Hav-ing kicked off in Berlin, further meetings took place in Hamburg and paris. up-coming meetings are planned for march 2015 in Barcelona and may 2015, again in Berlin. participation in these regular events is by invitation only. If you are in-terested in taking part, please contact [email protected].
N E X T E X E c u T I V E c I Rc L E
marketing decision makers gathering: Cmos and CDos discuss topics of the digital transformation.
TO N Y D O u G L A S
I N N OVAT I O N S M A N AG E R B M W
A N D S P E A K E R AT N E X T 1 4
“ ANyoNE WHo CAllS HImSElF AN EXpErT IN THIS SpACE, IS AN EXpErT For 15 SECoNDS.”
M A RT I N R E c K E
martin recke is the Head of Conference management for SinnerSchrader and organises the NEXT conferences and other events since 2006. He blogs at nextberlin.eu, among other sites.
I M P R I N T
P u B L I S H E R SinnerSchrader group, völckersstraße 38, 22765 Hamburg, Deutschland c O N T R I B u TO R S Axel Averdung, peter Bihr, Anni Brück,
laurent Burdin, Nils Jacobsen, olaf kolbrück, martin recke, matthias Schrader, meike Schreiber, Amelia Showalter, Adam Tinworth and Nils Wollny
E D I TO R I A L T E A M Ina Feistritzer, Benjamin Nickel, martin recke, Niko Timm (CD), Nils Wollny T R A N S L AT I O N A N D P RO O f R E A D I N G Tim gill,
Conor Horgan, David Thompson I L Lu S T R AT I O N Christian Schupp P I cT u R E c R E D I T S Thomas Fedra, Nils Hasenau, katrin Saalfrank,
Dan Taylor D E S I G N ringzwei, Hamburg S E PA R AT I O N Johannes Bauer in der printarena, Hamburg P R I N T Eurodruck in der printarena,
Hamburg c O PY R I G H T 2014 SinnerSchrader group Despite careful scrutiny of the publication by the editorial board the publisher accepts no liability
for its accuracy. prior permission must be obtained in writing from the publishers for any use that is not explicitly permissible under copyright law.
www.sinnerschrader.com
#co nt entS
006 Letter to the Shareholders 008 The Share 012 Corporate Governance 016 Report of the Supervisory Board
01 Joint StatuS report
022 General 022 Group Business and Structure 025 Market and Competitive Environment 026 Business Development and Group Situation 042 Business Development and Group Situation of the AG 045 Corporate Governance 048 Major Events after the Balance Sheet Date 048 Forecast 051 Risks and Opportunities of Future Business Development
02 conSolidated financial StatementS
060 Balance Sheets 062 Consolidated Statements of Operations 063 Consolidated Statements of Comprehensive Income 064 Consolidated Statements of Shareholders’ Equity 066 Consolidated Statements of Cash Flows 068 Notes 112 Auditor’s Report 113 Responsibility Statement
03 annual financial StatementS
116 Balance Sheets of SinnerSchrader AG 118 Statements of Operations of SinnerSchrader AG 120 Notes of SinnerSchrader AG 138 Auditor’s Report 139 Responsibility Statement
04 further information
142 Key Figures 143 Events & Contact Information
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Letter to the SharehoLderS
dear ShareholderS,
“Rock ’n’ roll is important for an agency”. This is the title of a
recent interview published in “Horizont”, one of the two leading
weekly journals for the German marketing industry. In the inter-
view, the “Fantastische Vier” (Fantastic Four) report on their
cooperation with Sinner Schrader on the occasion of the digital
staging of the band’s 25th anniversary in 2014. In the context
of the talk, the sentence refers to the fruitful exchange between
agencies and the world of culture and music. On its own, it fits
well with the 2013/2014 financial year of our Company just
completed, and with what the agency group will be facing in the
coming few years.
2013/2014 was a period of “rock ’n’ roll” for Sinner Schrader,
indeed. With organic revenue growth of 33.5 %, or € 12.2 million,
in comparison to the 2012/2013 financial year, the agency group
has shown the potential inherent in its organisation, in the
market position it has achieved in the 18 years since its foun-
dation and the advancing digital shift in many companies
and the economy in general. This was important – especially
since Sinner Schrader was hardly able to report progress
in its revenue in the previous year.
New clients account for € 5.6 million of this growth in revenue –
clients which Sinner Schrader convinced in the year of the report
that the agency was the right partner for them in the face of
current and future digital challenges. These clients included
a company operating in the German automobile industry, with
which Sinner Schrader concluded the biggest contract in
the history of the Company in the middle of the financial year.
Two factors were decisive for Sinner Schrader winning the
competition against other suppliers in the agency and IT service
industry. On the one hand, we have a deep understanding
of the perspectives of today’s clients and users concerning the
offers made by companies, and the ability to consistently derive
ideas for designing front ends, interfaces and new services as
well as the underlying processes from the point of view of clients
and users. On the other hand, Sinner Schrader is most competent
in technically implementing these ideas in respect of the growing
number of digital touchpoints as well as in interactions with the
complex IT structures of major companies.
Bringing together technical, process-related expertise and
creative, communicative excellence – this is one of the greatest
challenges for agencies wishing to play a leading role in the
digital age. In the 2013/2014 financial year Sinner Schrader
made considerable progress in meeting this challenge starting
from its more technical historical focus and initial success with
communicative tasks under the sub brand of “Haasenstein”.
Evidence of this is not least of all the fact that the international
brewery group Anheuser-Busch InBev entrusted Sinner Schrader
with the digital communication for Beck’s, its most important
brand on the German market at the end of 2013.
Successful rock ’n’ roll with the “Fantastische Vier” is another
example of the extended opportunities and perspectives of
Sinner Schrader as shown in the 2013/2014 financial year. They
were likewise repeatedly recognised and used by long-term
existing clients: In this sense, Sinner Schrader developed – for
the first time in its history – a TV advertisement for the mobile
communication brand Simyo and designed a new brand image
for the Base brand.
The communication team integrated and expanded by the
Sinner Schrader Agency during the course of the financial year,
thus played a role in the revenue growth generated from
business with existing clients exceeded the growth achieved
with new client relationships, at € 1 million.
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matthiaS Schrader thomaS dycKhoff
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This success in business with existing clients would not have
been possible if Sinner Schrader had not repeatedly expanded
its service portfolio, given the dynamic development of the
comparatively new field of digital marketing. Sinner Schrader
established a unit for content marketing earlier and more
forcefully than others. With CURVED for the E-Plus Group, the
first successful project has been initiated, implemented and
put into regular operation.
The potential of a content marketing strategy is especially high
if it can be linked to the comprehensive control of media expend-
iture. At present, only a few companies which invest a consider-
able amount of financial resources in advertising their brand and
their products are prepared to do that. With its investment in
the development of the NEXT AUDIENCE Platform, an audience or
data management platform (DMP), Sinner Schrader is focusing
on advertisers closing this gap in the near future. With the com-
pletion of the NEXT AUDIENCE platform – even if with a delay of
more than six months – in the 2013/2014 financial year, the
interlinkage between the content-marketing platform CURVED
and the DMP is currently being tested in a pilot run.
The example shows how we are focusing the development of
Sinner Schrader on the aggregate of tasks relating to marketing
in the digital age. The distinction between “online” and “offline”
and between “platform”, “communication” and “product” is
rapidly disappearing. The differentiations of agency models
along those distinctions are thus becoming less important. Those
responsible for marketing need agencies able to develop and
implement integrated strategies in view of the challenges of the
digital age. We call this “NEXT AGENCY”.
The widespread expansion of business in the 2013/2014 year
of the report, covering all the units in the Sinner Schrader Group,
has made it possible to improve the operating results for the
Group, to more than € 3 million. A good net income on the bottom
line, € 1.8 million, was achieved after two weak years. The pace
of growth and the expenses for the establishment of NEXT
AUDIENCE business, however, made it impossible to achieve an
optimal margin. Nevertheless, we believe that it is appropriate
to resume a dividend payment, with a dividend of € 0,12 per share.
Experience gained in the previous year has made us aware that
the rock ’n’ roll would not have been possible for Sinner-
Schrader in 2013/2014 without the extremely positive general
economic environment in Germany to stimulate companies’
investment decisions.
Against the background of the clearly bleaker forecasts for the
economy in 2015 in the past few months, and persistent uncer-
tainty from political crises – not least of all as a result of the
conflicts in Ukraine – we are exercising caution in terms of the
coming 2014/2015 financial year. We forecast growth in revenue
of 5 %, and plan to improve the EBITA and the net income to
figures in the range of € 3.5 million to € 4 million, and € 2.2 million
and € 2.5 million, respectively.
In this scenario, Sinner Schrader will have grown by 15.4 % a year on
average since the 2004/2005 financial year. We expect the double-
digit growth in revenue to continue in the 2015/2016 financial
year. There’s still a lot of rock ’n’ roll in the digital transformation.
Hamburg, November 2014
Matthias Schrader Thomas Dyckhoff
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the Share
StocK marKet
From 1 September 2013 to 31 August 2014, the German stock
market continued impressively with its positive development
of the two previous years. The DAX share index, which shows the
direction of the market, rose again by 16.9 % during the course
of the 2013/2014 SinnerSchrader financial year, after rising by
20.5 % in the period from September 2011 to August 2012
and by 16.2 % from September 2012 to August 2013, with the
highest level reached during the course of the year even clearly
exceeding the closing price on the final trading day of the
period of the financial year. On 3 July 2014, the DAX reached its
highest end of day trading rate of 10,029.43 points, an increase
of 23.8 % in comparison to the previous year’s closing level
The DAX rose most dynamically in the first six months of the
SinnerSchrader financial year, borne by the positive economic
situation in Germany, high expectations for economic develop-
ment in the period up to 2015 and a continuation of the declining
trend in interest rates. The upward momentum of the DAX
slowed down in spring 2014 and the trend became more volatile,
not least because of the incipient crisis in Ukraine and the
renewed deterioration of the political situation in the Middle East.
The upward trend nevertheless continued until the beginning
of July, only reversing when it gradually became clear that it
would not be possible for the economic trend in Germany to
remain completely unaffected by the consequences of the
political crises worldwide and weak growth in the EU. When this
was confirmed in reports from the Federal Statistical Office on
the economy in the second calendar quarter of 2014, in mid-
August and the beginning of September, the index had already
plunged well below its annual high at the beginning of July.
On 29 August 2014, at the end of the period of the Sinner-
Schrader financial year, the DAX was at 9,470.17 points.
Broader market indices such as the CDAX and Prime All Share
generally followed the DAX trend, with both of them showing in-
creases in the index values of 16.2 % and peaks of 23.4 % during
the period of the financial year. According to the Technology All
Share index, technology shares developed better than average,
to reach 20.2 % on 29 August 2014 – and peak at 28.9 % – above
the level of 30 August 2013.
The indices focusing on information technology, on which
Sinner Schrader is also listed – the DAXsubsector IT-Services
index and the DAXsector Software index – also developed posi-
tively in the period of the 2013/2014 Sinner Schrader financial
year, but with clearly varying dynamics. While the DAXsubsector
IT-Services index reported another year of above-average in-
creases, of 32.8 %, the trend on the DAXsector Software index,
with an increase of 10.4 %, was worse than the market overall.
Sinner Schrader Share
After two financial years, in which the share price fell by 19.8 %
and 8.5 %, respectively, the Sinner Schrader share was able to
regain more than its lost ground in the 2013/2014 year of the
report. The Xetra closing price, at € 3.399 on 29 August 2014,
was 118.6 % above the closing price on 30 August 2013.
The strong development of the share price was based on the
positive development of Sinner Schrader business, which
enabled the Company to publish positive information, and the
lifting of the annual forecast for revenue and the operating re-
sult after the end of the first half of he financial. This was also
furthered by the fact that analysts and investors became more
interested in the establishment of the audience management
business of NEXT AUDIENCE GmbH during the course of the first
half oft he financial, recognising the potential in connection with
the strong digital agency position of the Sinner Schrader Group
in Germany in the development of the NEXT AUDIENCE Platform
as a data management platform (DMP). The positive news about
the development of business and the NEXT AUDIENCE potential
met with the increased interest of foreign investors, notably in-
vestors in London, in German micro caps and mini caps, small
caps with low market capitalisation.
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325.0
0.0
09/13 10/13 11/13 12/13 01/14 02/14 03/14 04/14 05/14 06/14
–20 %
0 %
09/13 10/13 11/13 12/13 01/14 02/14 03/14 04/14 05/14 06/14 07/14 08/14
140 %
SinneR SchRAdeRdAXdAXSectoR SoftwARedAXSubSectoR it-SeRviceStechnology All ShARe
SinnerSchrader Share price performance 2013/2014 ( indeX-linKed)
SinnerSchrader Share SaleS volume 2013/2014in number of shares in al l relevant stock exchanges
Price on 30.08.2013 € 1.56
Price on 29.08.2014 € 3.40
Price performance in 2013/2014 € 1.84
in % of price on 31.08.2013 +118.6 %
Dividend in 2013/2014 € 0.00
Total performance in 2013/2014 € 1.84
1) In relation to Xetra prices
Average volume per day in number of shares 22,295
Average volume per day in € 162,929
Peak daily volume in number of shares 321,663
Peak daily volume in € 1,004,875
1) In all relevant stock exchanges
in % of price on 31.08.2013 +118.6 %
Peak price € 3.69
Lowest price € 1.56
Shares outstanding
as at 29.08.2014 11,235,858
Market capitalisation
as at 29.08.2014 € 38.2 Million
Share price performance data 2013/2014 1) volume data for 2013/2014 1)
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3.0 % Pre-IPO sharehOldIng emPlOyees Of sInnerschrader 2) 47.1 % free flOat
2.7 % treasury stOck
32.1 % matthIas schrader, OlIver sInner, and famIlIes
10.7 % strategIc InvestOr
4.4 % clef hOldIng ag
1) To the best of the Company’s knowledge2) If Board or consortium member
The significant increase in interest in the Sinner Schrader
share and the broadening of its investor base again resulted in
a considerable improvement to the liquidity of the share. Every
day 22,295 shares with a current value of € 62,929 were sold
on average across all the trading centres on the trading days.
Last year the average trading volume dropped to 6,213 shares
with a current value of € 10,199. On 30 trading days the trading
volume was more than 50,000 and on ten trading days it was
even more than 100,000 shares.
shareholder structure
The Sinner Schrader AG shareholder structure remained
comparatively stable in the 2013/2014 financial year as far as
is known to the Company. During the course of the financial
year, Sinner Schrader AG received a mandatory notification
pursuant to Article 21 of the German Securities Trading Act
(“Wertpapierhandelsgesetz”) from CLEF Trading AG, Switzer
land, in which the company reports a share in the voting rights
of 3.472 %. According to a notification received from the CLEF
Group after the balance sheet date on 5 November 2014, the
share had risen to 4.43 % and a share each will now be owned
by CLEF Holding AG and CLEF Trading AG.
As a result of the exercising of employee options and the transfer
of treasury stock in order to finance the options, the volume of
Sinner Schrader AG treasury stock decreased to 306,906 shares,
or 2.66 % of all the voting rights as at 17 November 2014, during
the course of the financial year and subsequently.
The proportion of shares held by the founders of the Sinner
Schrader Group and their families, the strategic investors who
joined when the Company went public in 1999, the Management
Board, former and current employees and managers from
shares held before or in connection with the initial public offer
ing or those held by the Company itself, was approximately
48.4 % as at 31 August 2014, and at approximately 0.6 percent
age points below this share on 31 August 2013, due to a reduc
tion in the share of treasury stock.
shareholder structure on 17 november 2014 1)
in %
2013/2014
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inveStor relationS
Sinner Schrader AG increased its investor relations work in the
2013/2014 financial year, a major step being the mandating of a
second research company with the covering the Sinner Schrader
share. With a view to the internationalisation of the investor base,
Edison Investment Research Limited in London was chosen and
commenced with reporting on their share analyses on 20 Feb-
ruary 2014. Warburg Research GmbH ( formerly SES Research
GmbH) in Hamburg continued to accompany the Sinner Schrader
share with analyses and reports in the 2013/2014 financial year.
Sinner Schrader AG has commissioned Close Brothers Seydler
Bank AG with the function of a designated sponsor since
April 2009. The company has performed its task according to
the liquidity of the Sinner Schrader share in Xetra trading on
the Frankfurt Stock Exchange.
Due to the increased interest in the share, there has been a sig-
nificant rise in the number of occasions at which Sinner Schrader
presents itself to the investor public at major functions,
such as the analysts’ conference as part of the equity forum,
in personal individual talks or on the telephone. In this
context, Sinner Schrader carried out one-day road shows in
London, Frankfurt am Main and Hamburg in the 2013/2014
financial year.
Over and above this, the comprehensive, transparent inform-
ation given on the development of business in the financial
reports remained an important element of investor relations
work at Sinner Schrader.
Confidence, transparency, and consistency are the guidelines
of investor relations work at Sinner Schrader, and investor
relations represent a major element of good and transparent
company management within the meaning of the standards
laid down in the Corporate Governance Code. All relevant
inform ation on the Sinner Schrader share can be found at any
time by all shareholders and interested parties on the website
www.sinnerschrader.ag.
Key share f igures
German Securities Code no. (WKN) 514190
ISIN DE0005141907
Symbol SZZ
Reuters symbol SZZG.DE
Bloomberg symbol SZZ.GR
Segment Regulated Market, Prime Standard
Stock exchanges Xetra, Frankfurt, Hamburg, Stuttgart, Munich, Düsseldorf, Berlin
Indices DAXsector Software, DAXsubsector IT-Services, CDAX, Prime All Share, Technology All Share
Designated Sponsor Close Brothers Seydler Bank AG
Analysts Felix Ellmann, Warburg Research, Bridie Barrett, Edison Research
Issued shares 11,542,764
Outstanding shares 11,235,858
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corporate governance
Corporate Governance comprises all the values, principles,
and rules governing corporate management and control. Since
2002, the Government Commission on the German Corporate
Governance Code has published principles and standards which
characterise good, responsible Corporate Governance. The
Code is regularly further developed by the Government
Commission on the basis of current findings and requirements.
It was last adjusted on 24 June 2014.
The Supervisory Board and the Management Board of Sinner-
Schrader AG welcome the development of Corporate Govern-
ance in Germany and are committed to the principles estab-
lished in the German Corporate Governance Code which aim at
good, transparent, value-oriented corporate management.
declaration of compliance
Under Article 161 of the German Stock Corporation Act (“AktG”),
all German companies quoted on the stock exchange must com-
ment on compliance with the principles and norms laid down
in the German Corporate Governance Code (“DCGK”), once a year,
in a Declaration of Conformity. On 18 December 2013, the
Supervisory Board and the Management Board of Sinner-
Schrader AG duly submitted a Declaration of Conformity on the
basis of the German Corporate Governance Code in its version
of 13 May 2013. Its wording is printed at the end of these com-
ments on Corporate Governance and is always available for
viewing to all shareholders and interested parties on the website
www.sinnerschrader.ag under “Corporate Governance”, together
with the wording of the Code. The declaration confirms that,
with just a few exceptions, Sinner Schrader complied with the
recommendations of the German Corporate Governance Code.
In December 2014 the Management Board and Supervisory
Board will deal in turn with the subject of Corporate Governance
and renew the annual declaration on the basis of the current
status of the Code as of May this year.
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declaration on corporate governanceSince the entry into force of the German Accounting Law
Modernisation Act (“BilMoG”), companies quoted on the stock
exchange have had to submit a declaration on corporate
governance, which, in addition to the Declaration of Conformity,
is to provide relevant information on its corporate governance
practices applied over and above the legal requirements, and
a description of the functioning of the Management Board
and the Supervisory Board as well as of the composition and
functioning of its committees. This declaration is also always
available for viewing on the website www.sinnerschrader.ag
under “Corporate Governance”.
company BoardSThe management board of a stock corporation is appointed by
the supervisory board and is independently responsible for man-
aging the enterprise. It carries out business following the law,
the statutes of the company, and the rules of procedure decreed
by the supervisory board for the management board. Under
these rules, the management board is required to seek approval
from the supervisory board prior to undertaking certain busi-
ness transactions.
The Management Board of Sinner Schrader AG still consists of
two members. The appointment of the Chairman of the Manage-
ment Board, Matthias Schrader, will continue until 31 December
2015; the Chief Financial Officer, Thomas Dyckhoff, has been
appointed until 31 December 2016. Conflicts of interest accord-
ing to Section 4.3 of the German Corporate Governance Code
did not arise in the 2013/2014 financial year.
The Supervisory Board monitors the Management Board and
advises it on the management of the Company. The key tasks
of the Supervisory Board include acting as the representative of
Sinner Schrader AG to the Management Board, appointing
members of the Management Board, establishing the compen-
sation for these members, monitoring the work of the Manage-
ment Board and the Company, particularly as regards account-
ing processes, the effectiveness of the internal monitoring
system, and the effectiveness of the risk management system,
commissioning the financial auditors and monitoring the
financial audit, approving the Annual Financial Statements and
Consolidated Financial Statements, and making decisions
regarding the business transactions of the Management Board
which require approval under the law, the Statutes of the
Company, or the rules of procedure.
The Supervisory Board of Sinner Schrader AG consists of three
members elected by the Annual General Meeting. The Super-
visory Board currently comprises Mr Dieter Heyde, Chairman,
Prof. Cyrus D. Khazaeli, Deputy Chairman, and Mr Philip W. Seitz.
With the financial year of the Company unchanged (1 September
to 31 August), the members of the Supervisory Board have
been appointed until the end of the Annual General Meeting that
decides on discharge for the financial year ending on 31 August
2018. In deviation of this, under Article 9 para. 2 of the Statutes,
the term of office of Mr Heyde will end at the close of the first
Annual General Meeting following his reaching the age of 70, i.e.
probably at the end of the Annual General Meeting that decides
on discharge for the financial year ending on 31 August 2017.
13
Conflicts of interest according to Section 5.5 of the German Cor-
porate Governance Code did not arise in the 2013/2014 financial
year. Sinner Schrader AG has no direct or indirect business rela-
tionships with members of the Supervisory Board. In particular,
there are no consultancy or other service or work contracts be-
tween the AG and individual members of the Supervisory Board.
compenSation report for the manage-ment Board and SuperviSory BoardIn accordance with the German Management Board Compens-
ation Disclosure Act, detailed information on the compensation
of the Board members can be found in Section 6.2 of the
Consolidated Status Report and the Group Status Report as well
as in the Sections 5.3 and 5.4 of the Notes to the Annual Finan-
cial Statements of Sinner Schrader AG in this Annual Report.
The current stock option plans are also explained there and in
the Notes to the Consolidated Financial Statements.
ShareS held By Board memBerSAn overview in Section 5.10 of the Notes to the Annual Financial
Statements of Sinner Schrader AG in this Annual Report provides
information on the Sinner Schrader shares and derivatives
based on Sinner Schrader shares held by members of the
Supervisory Board and Management Board as at 31 August 2014
as well as any changes to these in the 2013/2014 financial
year. As at 31 August 2014, the shares held by the Management
Board comprised around 23.0 % of the shares issued by
Sinner Schrader. The Supervisory Board still did not hold any
Sinner Schrader shares as at 31 August 2014.
directorS’ dealingSAccording to Article 15a of the German Securities Trading Act,
the Board members, other individuals in management posi-
tions, and persons closely connected to the Board members or
individuals in management positions are obliged to disclose
the purchase or sale of Sinner Schrader shares or derivatives
related to these shares to Sinner Schrader AG if their equiva-
lent value during the year exceeds a total of € 5,000. In the
2013/2014 financial year Mr Schrader announced that he had
taken over 121,114 shares, which had until then been held
by members of his family.
accounting principleSFollowing EU Regulation 1606/2002, the accounting of the
Sinner Schrader Group has been carried out according to Inter-
national Financial Reporting Standards since the 2005/2006
financial year. Prior to this, United States Generally Accepted
Accounting Principles (“US-GAAP”) were used. The Annual
Financial Statements of Sinner Schrader AG continue to be
prepared in accordance with the accounting regulations of the
German Commercial Code.
The Annual and Consolidated Financial Statements were
audited by an auditing firm which declared its independence
to the Supervisory Board and which was chosen for this task
by the Annual General Meeting on 29 January 2014.
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declaration By the management Board and SuperviSory Board of conformity with the recom-mendationS of the government commiSSion on the german corporate governance code required By article 161 of the german StocK corporation act
The Management Board and Supervisory Board of Sinner-
Schrader AG declare that in the reporting period since the last
compliance declaration on 15 December 2012, Sinner Schrader
AG has complied with the recommendations of the Government
Commission on the German Corporate Governance Code in
the version of 13 May 2013, with the exception of the following
deviations and will continue to comply with them in future with
the exception of the following deviations:
SuperviSory BoardSection 3.8:
D&O insurance with no excess has been taken out for the
members of the Supervisory Board. The recommendations
according to No. 3.8 of the German Corporate Governance Code
(excess in D&O insurance also for the Supervisory Board) have
not been complied with and will not be complied with because
an excess is considered inappropriate in view of the low levels
of Super visory Board compensation and, in the view of the
Company, is not appropriate for increasing the motivation and
responsibility with which the members of the Supervisory
Board perform their tasks.
Section 5.3.1 ff.:
The Supervisory Board has not formed any committees because
it only comprises three members.
Hamburg, 18 December 2013
Sinner Schrader Aktiengesellschaft
For the Supervisory Board For the Management Board
Dieter Heyde Matthias Schrader
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report oF the SUpervISorY Board For the 2013/2014 FInancIaL Year
The Supervisory Board has once again intensively followed the
business development of Sinner Schrader Aktiengesellschaft
and its subsidiaries in the 2013/2014 financial year. In doing so,
it cooperated with the Management Board openly and in a spirit
of trust. At regular Supervisory Board meetings, in monthly re-
ports, and through written, telephone, and personal exchanges,
the Management Board kept the Supervisory Board informed of
business developments and the current situation of the Group,
its strategic development, risk management, important business
incidents, and investment plans. The Management Board
promptly included the Supervisory Board in business transac-
tions and decisions which were significant to the Company or
the Group. Furthermore, the Supervisory Board continued its
talks with key employees in the Sinner Schrader Group. In par-
ticular, these concerned talks with the managements of the sub-
sidiaries and the heads of the central divisions of the AG.
On this basis, the Supervisory Board discharged its duties as
required by law and the Statutes, supervised the business con-
duct of the Management Board, and advised the Management
Board on the management of the Company. The yardsticks for
monitoring were the legality, correctness, practicality and effi-
ciency of the Management Board’s actions. In view of the con-
tinuing small number of its members, the Supervisory Board
decided not to form any committees and performed all of its
tasks in the body as a whole.
the BoardSThe composition of the Supervisory Board did not change in the
2013/2014 financial year. The Annual General Meeting of 29
January 2014 appointed the members of the Supervisory Board,
Mr Dieter Heyde, Prof. Cyrus D. Khazaeli and Mr Philip W. Seitz,
whose term of office expired at the end of the Annual General
Meeting, as members of the Supervisory Board of Sinner-
Schrader AG for another term of office up to the end of the An-
nual General Meeting that decides on discharge for the financial
year ending on 31 August 2018.
At its constituent meeting, the Supervisory Board appointed
Mr Heyde Chairman and Mr Khazaeli his Deputy Chairman.
Mr Seitz acts as the independent financial expert within
the meaning of Article 100 para. 5 of the Joint Stock Corporation
Act (Aktiengesetz).
There were also no changes to the composition of the Manage-
ment Board in the 2013/2014 financial year. The members of the
Management Board are still Mr Matthias Schrader as Chairman
and Mr Thomas Dyckhoff as Finance Director. Mr Schrader
has been appointed to the Management Board until 31 Decem-
ber 2015, and Mr Dyckhoff until 31 December 2016.
The Management Board and Supervisory Board were discharged
for the 2012/2013 financial year at the Annual General Meeting
on 29 January 2014.
16
dieter heyde prof. cyruS d. Khazaeli philip w. Seitz
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SuperviSory Board meetingSDuring the 2013/2014 financial year, the Supervisory Board met
for six ordinary meetings on 9 October 2013, 7 November 2013,
18 December 2013, 29 January 2014, 11 April 2014 and on
10 July 2014. Furthermore, the Supervisory Board passed reso-
lutions in telephone conferences on 8 and 22 November 2013.
The meetings all took place in the presence of the Management
Board. If needed and for the talks with key employees, the Super-
visory Board met without the Management Board being present
before it concerned itself with the individual items on the
agenda of a meeting.
In all of the ordinary meetings, the Supervisory Board considered
the course of business and the situation of the Group up to or on
each cut-off date, the forthcoming quarterly report where appro-
priate and an updated revenue and profit forecast for the whole
financial year, in each case on the basis of the current status of
monthly reporting. Key focuses during the course of the year as
a whole were the development of NEXT AUDIENCE GmbH busi-
ness and the assessment of the opportunities and risks relating
to the establishment of audience management business.
Furthermore, the Supervisory Board dealt with the following
issues in the individual meetings:
In the ordinary meeting on 9 October 2013, the Supervisory
Board mainly concerned itself with the provisional status of the
Consolidated Financial Statements for 2012/2013 and with
setting priorities for the upcoming auditing of the Consolidated
Financial Statements and the Annual Report of Sinner Schrader
AG in the presence of the auditors.
In the ordinary meeting on 7 November 2013, the Supervisory
Board, in the presence of the auditors and on the basis of drafts
of the audit reports, explanations of the audit including the audit
of the internal control and risk management system and the
results of the audit reports, discussed the Consolidated Financial
Statements, the Annual Report and the combined Status Report
and Consolidated Status Report of Sinner Schrader Aktien-
gesellschaft for the 2012/2013 financial year in detail. The
Supervisory Board also dealt with the agenda of the upcoming
Annual General Meeting.
On the basis of information in the meeting of 7 November 2013,
the Supervisory Board, in a telephone conference on 8 November
2013, endorsed the Consolidated Financial Statements, the
Annual Report and the combined Status Report, and approved
the proposal of the Management Board to report a balanced
profit in the Consolidated Financial Statements of the AG through
a withdrawal from revenue reserves.
In the telephone conference of 22 November 2013, the Super-
visory Board decided to postpone the Annual General Meeting
from the date originally scheduled, 18 December 2013, to
29 January 2014 as proposed by the Management Board, and
adopted the agenda for the Annual General Meeting.
In the meeting of 18 December 2013, the Supervisory Board
dealt with matters concerning the compensation of the Manage-
ment Board – in particular the achievement of goals for variable
compensation in the 2012/2013 financial year and the three-year
period of 2010/2011 to 2012/2013 –, the Corporate Governance
declaration, potential acquisitions and the share buy-back
programme.
The Supervisory Board Meeting on 29 January 2014 following
the Annual General Meeting was the constituent meeting of the
newly elected Supervisory Board, with no changes in its com-
position. The Chairman, his Deputy Chairman and the independ-
ent financial expert were appointed. Furthermore, the dates
of the ordinary Supervisory Board meetings until the end of the
financial year were specified.
In the Supervisory Board meeting on 11 April 2014, the Board
focused on the current business development, the full-year
forecast and the development of NEXT AUDIENCE. Furthermore,
an acquisition option was discussed and the aims for the
current financial year and the medium-term period until the
2016/2017 financial year were conclusively laid down.
17
Finally, on 10 July 2014, the Supervisory Board dealt with the
compliance management system of the Sinner Schrader Group
and restructuring in the Interactive Media segment, in particular
the transfer of shares in Sinner Schrader Content GmbH to
NEXT AUDIENCE GmbH.
corporate governanceDealing with Corporate Governance, especially with the German
Corporate Governance Code in the currently valid version, is
a permanent part of the work of the Management Board and the
Supervisory Board. The Company makes every effort to ensure
that it meets the requirements of good corporate governance as
laid down in the Code as far as possible and that it implements
the required measures to do so.
On 18 December 2013, the Supervisory Board and the Manage-
ment Board submitted the Declaration of Conformity with the
Corporate Governance Code, in its version of 13 May 2013, which
is required by Article 161 of the German Stock Corporation Act
and which documents general compliance with the courses of
action recommended by the Code. The Declaration is always
accessible on the Company’s website, www.sinnerschrader.ag,
under “Corporate Governance”. Furthermore, it is printed in the
Corporate Governance Report in the Company’s Annual Report.
conSolidated accountS and annual reportThe accounts and the Annual Financial Statements of Sinner-
Schrader AG as well as the Consolidated Financial Statements
including the Joint Status Report of the Group and of Sinner-
Schrader AG for the 2013/2014 financial year as at 31 August
2014, drawn up pursuant to Article 315a para. 1 of the German
Commercial Code according to the international accounting
standards (IFRS), were audited by BDO AG Wirtschaftsprü-
fungsgesellschaft, Hamburg, at the request of the Supervisory
Board and have been given an unqualified audit opinion. BDO AG
was appointed auditor for the Annual and Consolidated Finan-
cial Statements by the Annual General Meeting on 29 January
2014 upon the proposal of the Supervisory Board. The Supervi-
sory Board has not identified any circumstances to doubt the
impartiality of BDO AG. BDO AG had itself submitted a declara-
tion of independence about the proposal to the Annual General
Meeting prior to the Supervisory Board’s decision.
After preliminary discussion on the commencement of the audit
between the auditor and the Supervisory Board, in the presence
of the Management Board, as part of an ordinary Supervisory
Board meeting on 8 October 2014, the Supervisory Board, in the
presence of the auditor and the Management Board, discussed
the Annual Report, the Consolidated Financial Statements, the
summarised Status Report and the Consolidated Status Report
in detail at its meeting on 24 November 2014. The financial
statements, status report and draft audit reports were forward-
ed to the members of the Supervisory Board in plenty of time
before the meeting. In the meeting, the auditors verbally pre-
sented the main themes and results of their audit, including the
audit of the internal control and risk management system, and
answered the Supervisory Board’s questions to its satisfaction.
The Supervisory Board raised no objections and followed the
results of the auditors. It approved the Consolidated Accounts
and the Annual Report. The Annual Report is thus established.
Furthermore, the Supervisory Board decided to suggest the pay-
ment of a dividend of € 0.12 per share from the balanced profit
of Sinner Schrader AG, as proposed by the Management Board.
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18
BuSineSS developmentAs forecast a year ago, Sinner Schrader successfully reversed
the negative earnings trend of the two previous years in the
2013/2014 financial year. Expectations based on the sustained
high dynamics of digital change, a good sales pipeline and
favourable conditions in the economic environment proved to
be realistic.
The opportunities presenting themselves even clearly exceeded
the expectations, and Sinner Schrader very successfully put
these opportunities to effective use for the Company. The
growth in revenue was more than twice as high as originally
forecast, and the operating result and net income improved
more than planned.
The consequences of a delay of more than six months in the
completion of the NEXT AUDIENCE Platform – decreased
contributions to revenue and increased losses in this business
segment – were offset. At the end of the 2013/2014 financial
year, version 1.0 of the software was, however, completed and
implemented in a successful pilot run. Interest on the market
has continued to increase. Embedded in a comprehensive
programmatic media offer and supported by the merger of
NEXT AUDIENCE GmbH and mediaby GmbH at the beginning of
the new financial year, initial success on the market should be
achieved for the the NEXT AUDIENCE Platform in the 2014/2015
financial year.
After the dynamic increase in business in 2013/2014, 2014/2015
will generally be more influenced by the aspect of consolidation
and a moderate expansion of achievements already made. This
expectation is reinforced by clearly bleaker economic prospects
and corresponding adjustments to the propensity to invest
currently prevailing in German industry.
The success achieved in the year of the report and the outlook
for the 2014/2015 financial year provide a sound foundation for
resuming dividend payments.
thanKSThe Supervisory Board thanks the Management Board and
all the employees in the Sinner Schrader Group for their com-
mitment in performing their work most successfully in the
2013/2014 financial year. It is and will remain the key foundation
of the development of Sinner Schrader in the new 2014/2015
financial year and beyond.
Hamburg, 24 November 2014
Dieter Heyde
Chairman of the Supervisory Board
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01
02
03
04
sInnerschradergRoup2013 / 2014
022–057
060–113
116–139
142–143
Joint StatuS report
conSolidated financial StatementS
annual financial StatementS
further information
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1 general
The following Status Report is the joint Consolidated Status Report and Group Status Report of Sinner Schrader Aktien-
gesellschaft (“Sinner Schrader AG” or “AG”) for the 2013/2014 financial year, which covered the period from 1 September
2013 to 31 August 2014. In particular, it shows the development of the income, financial, and asset status of the Sinner-
Schrader Group (“Sinner Schrader” or “Group”) and the AG in the 2012/2013 financial year and addresses the key risks
and opportunities and the probable future development of business. Unless explicit reference is made to the AG, the
statements refer to the Group.
The Consolidated Financial Statements for 2013/2014 were drawn up according to International Financial Reporting
Standards (“IFRS”) as they are to be applied in the EU and the additional regulations under commercial law pertaining
to Article 315a para. 1 of the German Civil Code (HGB).The Annual Financial Statements of Sinner Schrader AG for
2013/2014 follow German accounting regulations.
The Status Report and the Group Status Report, particularly Section 8, contain statements and information aimed at
the future. These can be recognised by the use of words such as “expect”, “anticipate”, “forecast”, “intend”, “plan”, “strive”,
“ estimate”, “become”, or “should”. Such forward-looking statements are based on current knowledge, estimates, and
assumptions. They therefore entail a number of risks and uncertainties. A variety of factors, many of which are outside
Sinner Schrader’s sphere of influence, have an impact on business development and its results. These factors mean
that the actual future business development of Sinner Schrader and the actual results achieved may differ significantly
from the explicit or implicit information in the forward-looking statements.
2 group BuSineSS and Structure
2.1 BuSineSS activitieS
With more than 500 employees as at 31 August 2014, the Sinner Schrader Group, managed by Sinner Schrader AG, is one
of the biggest independent digital agency groups in Germany. The Group offers companies in Germany and abroad a
comprehensive portfolio of services for the use of digital technologies to further develop and optimise their business. The
emphasis is on the use of the Internet for the sale of goods and services (e-commerce), for marketing and communica-
tion, and for the acquisition and retention of customers.
Sinner Schrader’s range of services mainly comprises
• advice about and development of strategies for the use of digital technology for marketing, sales and communication
as well as the establishment of digital business models,
• the customised conception, design and technical development of websites, Internet applications and mobile apps,
• content-related and technical maintenance, performance measurement and optimisation as well as technical
operations, including the provision of the technical infrastructure of websites and Internet applications,
• the development, implementation and execution of digital marketing and communication measures,
• the planning and implementation of online advertising measures with a focus on performance-oriented display
advertising (online media),
• the delivery and performance measurements of advertising media (adserving) using modern targeting and retargeting
methods which are compatible with data protection legislation on the basis of an adserving solution developed in-house
using a software-as-a-service model,
• the assumption of overall responsibility for setting up and managing sales channels on the Internet, including logistics,
payment processing and shop management (e-commerce outsourcing).
In the 2013/2014 financial year, Sinner Schrader expanded its service portfolio by an offer for the planning and drafting
of concepts for marketing strategies in the Internet based on editorial content, and their implementation in daily editing
operations (“content marketing”). The portfolio thus remained largely unchanged in the 2013/2014 financial year.
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In adserving business, Sinner Schrader pressed ahead with the development of the NEXT AUDIENCE Platform as planned,
completing a first release of the software, albeit with some delays, and implementing it in pilot operation with one client.
The NEXT AUDIENCE Platform is a “data management platform” (DMP) with an integrated adserver that puts advertisers
in a position to safely manage and optimise their online advertising expenditure in a new, integrated form in accordance
with the stringent German standards for data protection. Sinner Schrader is convinced that software solutions such as the
NEXT AUDIENCE Platform will be used by all the advertisers with large and medium-sized (online) advertising budgets.
Sinner Schrader primarily works for major SMEs based in Germany, but in the 2013/2014 year of the report, the Company
also worked for reputable companies based in Switzerland, the UK, the Netherlands, the Czech Republic and France.
Sinner Schrader rendered its services from offices in Hamburg, Frankfurt am Main, Berlin, Hanover, Munich and Prague.
Its headquarters are in Hamburg, where Sinner Schrader was founded in 1996.
Sinner Schrader aims for long-term client relationships and has been working for several major clients for more than
ten years. The majority of the clients can be assigned to the Retail & Consumer Goods, Financial Services, Telecommu-
nications & Technology and Transport & Tourism sectors.
2.2 Structure of the group
Sinner Schrader operates its business from various operating companies, which are headed by Sinner Schrader AG as
the parent company of the Group.
Sinner Schrader Content GmbH, based in Hamburg, was newly founded in the 2013/2014 financial year to expand the
service portfolio with content marketing. After business was commenced and a first content marketing project developed,
Sinner Schrader Content GmbH was merged with the non-operative newtention services GmbH, a subsidiary of NEXT
AUDIENCE GmbH; newtention services GmbH was renamed SinnerSchrader Content GmbH.
There were no other changes in terms of the composition of the Group in the 2013/2014 financial year. The following
operative companies were thus included in the Sinner Schrader Group in addition to Sinner Schrader AG in the years of
the report:
• Sinner Schrader Deutschland GmbH, based in Hamburg, Germany,
and with offices Frankfurt am Main, Germany, and Munich, Germany,
• Sinner Schrader Praha s.r.o., based in Prague, Czech Republic,
• Sinner Schrader Benelux B.V., based in Rotterdam, Netherlands,
• Sinner Schrader UK Ltd., based in London, Great Britain,
• Sinner Schrader Mobile GmbH, based in Berlin, Germany,
• NEXT AUDIENCE GmbH and its subsidiary Sinner Schrader Content GmbH, based in Hamburg, Germany,
• mediaby GmbH, based in Hamburg, Germany,
• Commerce Plus GmbH and its subsidiary Commerce Plus Consulting GmbH, based in Hamburg, Germany,
and with an office in Hanover, Germany.
Two companies abroad, Sinner Schrader UK Ltd. and Sinner Schrader Benelux B.V., remained inoperative in
the year of the report.
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Sinner Schrader Deutschland GmbH and its predecessors have been part of the agency group since it was founded in
1996. It is the biggest subsidiary and is responsible for the digital agency business under the “Sinner Schrader” brand.
Together with Sinner Schrader Praha s.r.o. it forms the “Sinner Schrader agency”. With the exception of online media,
adserving and content marketing business, e-commerce outsourcing and the development of native mobile apps, the
Sinner Schrader agency renders the full range of services of the Group, mainly for companies with annual budgets of
more than € 500,000.
The “Haasenstein” brand, established by the Sinner Schrader agency in 2010 for services relating to branding and brand
communications, was abandoned during the course of the year of the report and the services integrated under the brand
umbrella of the Sinner Schrader agency.
The Sinner Schrader agency is represented in Germany with offices in Hamburg, Frankfurt am Main and Munich. It is
represented abroad with an office in Prague. The agency and Sinner Schrader Mobile GmbH, based in Berlin, which focuses
on apps for mobile terminal equipment such as smartphones and tables, and now also on smart watches and a wide
variety of embedded devices, have been brought together in the Interactive Marketing segment.
Under the “Commerce Plus” brand, the Commerce Plus Group, which resulted when the spot-media Group and next
commerce GmbH merged in the 2012/2013 financial year, offers the full range of services, from consulting to the drafting
of concepts and their development through to the operation of digital sales channels and their integration in a compre-
hensive multi-channel sales system. The Commerce Plus Group renders its services either within the framework of ser-
vice and work contracts or on the basis of e-commerce operator models. In the case of the latter, Commerce Plus takes
responsibility for the development, management and operation of the online sales channel for companies on the basis of
contracts lasting several years in return for revenue-related and/or other success-related remuneration. Commerce Plus
focuses on PHP-based technologies, without being restricted to them. The Commerce Plus Group constitutes the Inter-
active Commerce segment.
mediaby GmbH, which emerged in 2009 by being hived off from Sinner Schrader Deutschland GmbH, NEXT AUDIENCE
GmbH and Sinner Schrader Content GmbH, which was newly established in the financial year, form the Interactive Media
segment. mediaby GmbH performs the business of an online media agency and primarily positions itself as a specialist
for performance-oriented display advertising.
NEXT AUDIENCE GmbH, which emerged when newtention technologies GmbH, acquired by Sinner Schrader in 2009, was
rebranded, uses a software-as-a-service model to develop and market technologies to implement, control and optimise
online advertising campaigns. The significant components of NEXT AUDIENCE technology are a data management plat-
form and an adserver which are closely linked in making available state-of-the-art methods which comply with the
stringent German standards for data protection for profiling advertising recipients and for concentrating profile data from
various data sources and, building on this, for segmenting, targeting and retargeting campaigns with dynamically gener-
ated advertising media. With its offer, NEXT AUDIENCE mainly targets advertising companies.
In the 2013/2014 year of the report, the Interactive Media segment was expanded with Sinner Schrader Content GmbH,
which develops and operates content-based marketing strategies for companies. As part of these strategies and with
the help of editorial contents, extending far beyond the scope of brand and advertising messages, readers/listeners/
audiences – i.e. a range – is being established which companies can access more specifically with offers and advertising
messages.
Sinner Schrader AG acts as the managing holding company in the Group and is responsible for the strategic control and
further development of the Group, financing the operating business, administering the liquidity reserves and communi-
cating with the capital market. Furthermore, Sinner Schrader AG centrally provides the subsidiaries with infrastructure
and administrative services.
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3 marKet and competitive environment
For large parts of the Sinner Schrader 2013/2014 financial year from 1 September 2013 to 31 August 2014, the general
economic environment was marked by the excellent state of the German economy and positive expectations for the
coming 12 to 24 months.
In particular the first six months of the financial year until the end of February 2014 were characterised by high growth
dynamics and a positive mood in the German economy. The economy had gained momentum perceptibly in the last
calendar quarter of 2013 after a lean period lasting six quarters, and the real gross domestic product had reached a
figure exceeding that of the comparable quarter of the previous year by 1.0 %. In the following first calendar quarter
of 2014, the same quarter of the previous year was exceeded by 2.6 %, one of the reasons being a boost resulting from
mild weather conditions.
This prompted many experts and institutions to raise their forecast for the development of the German economy in the
first few months of 2014, with leading German research institutes lifting their forecast for growth in the real gross
domestic product to 1.9 % for 2014 and 2.0 % for 2015 in their spring 2014 joint diagnosis, which was published at the
beginning of April.
The positive development was also reflected in the trends for the ifo business climate index and the GfK consumer
climate index. The ifo business climate index rose almost continuously in the period from August 2013 to April 2014,
equally driven by improving assessments of the situation and by expectations, from 107.8 index points to 111.2 index
points, showing an economic boom phase in the ifo Institute classification system.
The general economic situation thus presented a positive environment for investment decisions in Germany. At the end
of February 2014, the ifo Institute confirmed this assessment in a study on the results of its investment test, and reported
that the processing industry in Germany would probably increase its investments in real terms by 8 % in 2014, after
an increase of 3 % in 2013. An increase of this scale has only been exceeded twice – in 2007 and 2011, in response to the
20 % slump in the financial crisis year of 2009.
The GfK consumer climate index completed the positive picture of the economy in Germany. The index rose from
7.0 points in August 2013 to 8.5 points in April 2014, suggesting that domestic demand in 2014 would strongly support
the economic trend in Germany.
This picture of the economy sharply contrasted with the situation in the first few months of 2013 after the gross domestic
product had not grown in the fourth calendar quarter of 2012 over the comparable quarter of the previous year, and had
even fallen by 1.6 % in the first calendar quarter of 2013.
Statements on the development of the digital economy were also positive, following the good economic development at
the end of 2013/beginning of 2014. In February, the German Distance Selling Trade Association (bvh), which was renamed
the Federal E-Commerce and Distance Selling Trade Association of Germany e.V. (bevh) during the course of the year, fore-
cast growth of 24.8 % for online trading in goods for 2014, in comparison to 2013, to a volume of € 48.8 billion, after the vol-
ume in 2013 had actually grown by 41.7 % over the previous year. In its annual press conference held at the end of Janu-
ary 2014, the German Retail Federation (HDE), using a different basis, forecast growth of 17 % for online trading in 2014,
and for the second time in succession referred to “online trading” as the theme that concerned German retailing most.
The German Online Vermarkterkreis (OVK, Circle of Online Marketers) in the Federal Association of the Digital Economy
(BVDW) published expectations of an 8.4 % increase in the net expenditure for online and mobile display advertising in its
spring report.
The following graphs and tables are not components of the audited Status Report.
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The annual ranking of leading German digital agencies, published by the Federal Association of the Digital Economy
(BVDW) at the end of April 2014, also reported on a healthy development of German digital agencies, with average growth
at 14 %. In 2013, the revenue volume of all the reporting agencies exceeded the one billion euro mark for the first time.
The ranking showed a comparatively stable competitive environment. There were hardly any changes in the list of Top Ten
ranked agencies. Sinner Schrader was able to maintain its fourth place again, and was the leader in the “e-commerce”
and “mobile” areas.
The positive mood in spring 2014 lasted until summer 2014, when it became clear that international trouble spots, such
as the conflict in Ukraine and the economic sanctions imposed in consequence, would have a significant negative impact
on economic development in Germany.
4 BuSineSS development and group Situation
Summary of general StatementSSinner Schrader expanded dynamically in the 2013/2014 financial year, far exceeding its own forecasts against the back-
ground of the favourable general economic situation in Germany and the fact that German companies now consider the
question of digitisation to be highly significant for their development.
After weak growth in the previous year, Sinner Schrader undertook to generate double-digit growth of more than 12.5 %,
or around € 4.5 million, on revenue of more than € 41 million in the year of the report. In fact, the Sinner Schrader Group
reported net revenue of € 48.6 million. The business volume in the 2013/2014 financial year increased by 33.5 %, a good
2 1/2 times more than forecast.
The increase in revenue of € 12.2 million was achieved through organic development in all three segments, with the
greatest growth dynamism coming from regular business transacted by the Sinner Schrader agency in the Inter-
active Marketing segment and from the project-related reconstruction of a unit for content marketing in the Interactive
Media segment.
Q4 Q1 Q2 Q3 Q4 Q4eQ2 Q3Q1Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011: 3.6 2012: +0.4 2013: +0.1 2014e: +1.3
Source: German Federal Statistical Office; previous year’s figures adjusted on the basis of 2014 national account general audit, Q4E and 2014E based on Joint Economic Forecast Autumn 2014
development of groSS domeStic productadjusted for pr ice by quarter and year,
change to same quarter of previous year and to previous year in %
1.0
2.6
1.0 1.20.4
3.63.1
1.8 1.5
0.3 0.1
–0.3
–1.8
0.50.8
2011/2012: +0.92010/2011: +4.3 2012/2013: –0.2 2013/2014: +1.5
4.4
6.0
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Sinner Schrader was successful in developing an above-average volume of business for the Company on the basis of the
high demand for digital expertise. The acquisition of new clients accounted for € 5.6 million, or just under 45 %, of the
overall increase in net revenue. The new client rate, at 11.4 %, was well above the rate for the previous years. At the end of
the first financial half-year, the Sinner Schrader agency reported the biggest single order so far in the eighteen-year his-
tory of the Company, from the automobile industry.
Only NEXT AUDIENCE GmbH did not increase its net revenue in the year of the report. The marketing of the newly de-
veloped NEXT AUDIENCE Platform only began more than six months later than scheduled in the current financial year of
2014/2015 due to considerable delays in the pilot phase.
The results of the Sinner Schrader Group also developed positively, in line with the development of revenue. At just under
€ 3.1 million, the EBITA – the operating benchmark for Sinner Schrader – was at a record level, as was the net revenue. The
original forecast of an EBITA in the range of € 2.5 million and € 3.0 million was exceeded. The difference to the forecast
was, however, far less than for the revenue. More than anything else, growth-related inefficiencies and the costs relating
to the delay in the pilot phase of the NEXT AUDIENCE Platform, which considerably exceeded those planned, resulted in
an operating margin only at the lower end of the projection interval for the year of the report. The Group EBITA was more
than quadrupled in comparison to the previous year.
The good operative development was reflected in the net income in the 2013/2014 financial year. The successful estab-
lishment of the content marketing business in the Interactive Media segment enabled the Group to improve its tax struc-
tures. Sinner Schrader thus concluded the 2013/2014 financial year with net income of a good € 1.8 million, corresponding
to earnings per share of € 0.16. The Sinner Schrader net income was only just over zero in the previous year; a clearly
positive development of the operating profit was announced for the year of the report.
The operating cash flow reached € 1.5 million in the financial year and, unlike the revenue and income, it was around
€ 0.9 million lower than in the previous year due to the growth-related increase in the need for working capital, which
meant that funds required for investments could not be quite covered. The liquidity reserve of the Sinner Schrader Group,
at € 5.8 million at the end of the year of the report, 31 August 2014, was thus lower than that of the previous year by
around € 0.1 million.
Source: German E-Commerce and Distance Selling Trade Association (bvh)
development of e-commerce revenueSvalue of goods, purchased onl ine by German consumers
in € mil l ion change over previous year in %
2014e
48.8
2012
27.6
2013
39.1
+27.2+18.6 +41.7 +24.8
2010
18.3
2011
21.7
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The strong increase in the business volume resulted in a considerable increase in the assets – in particular in the items
comprising billed and unbilled revenues – of altogether € 5.6 million. Since the rise in shareholders’ equity remained
below this increase, the shareholders’ equity rate decreased from around 52 % to around 49 % as at 31 August 2014.
The increase in the number of employees did not keep pace with the growth in revenue. In the 2013/2014 financial year,
the average available capacity was 444 full-time employees, i.e. only a good 9 % more than in the previous financial year.
However, with 521 employees in the Sinner Schrader Group, there were as many as 70 employees, or almost 16 %, more
than one year earlier.
The following describes in more detail the business development and the situation of the Sinner Schrader Group and its
segments in comparison to the previous year and to its own forecasts.
4 .1 revenueS
Sinner Schrader achieved net revenues of € 48.6 million in the 2013/2014 financial year, in comparison to € 36.4 million in
the previous 2012/2013 financial year. The revenue growth of € 12.2 million is equivalent to a growth rate of 33.5 %.
The course of the financial year showed a steady increase in the business volume, from € 10.8 million in the first quarter
to € 11.3 million and € 13.0 million in the second and third quarters, respectively, to just under € 13.5 million in the final
fourth quarter of 2013/2014. The business development thus differed from that of the previous years, in which revenues
in the second and/or third quarters had been below those of the first and fourth quarters due to seasonal factors, in par-
ticular the regularly lower number of working days. However, in the year of the report, Sinner Schrader was successful in
continuously acquiring new clients and in gaining new budgets in existing client relations.
While the increase in the first quarter of the report, at 17.6 % against that of the previous year, was still comparatively
slow, the sales dynamism picked up to a plus of 35.8 % in the second quarter of the report in comparison to the previous
year. The growth dynamism continued to gain momentum after Sinner Schrader successfully secured the biggest order in
the history of the Company in the final month of the second quarter. In the third and fourth quarters of 2013/2014, net
revenues exceeded those of the respective previous year’s figures by 43.9 % and 37.0 %, respectively.
1) Before costs for expansion of service portfolio
development of net revenueS and net revenue marginin € mil l ion and % for the 2009/2010 to 2013/2014 f inancial years
2011/2012
36.0
6.5 %1)
4.5 %
2012/2013
36.4
5.7 %1)
1.9 %
2013/2014
48.6
9.5 %1)
6.3 %
2009/2010
14.4 %1)
9.1 %
23.9
2010/2011
13.3 %1)
8.5 %
30.9
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interactive marKetingThe growth driver in the 2013/2014 financial year was once again the regular business transacted in the Interactive Mar-
keting segment. A good three quarters of the Group’s growth in revenue was from this segment, in which the Sinner-
Schrader agency and Sinner Schrader Mobile are brought together. The increase in revenue of just € 9.4 million over that
of the previous year was equivalent to a growth rate of 35.8 %. The segment as a whole thus exceeded the original expect-
ations for growth of between 11 % and 12 % several times. What was surprising was the strong development of the
Sinner Schrader agency, with a growth rate of 37.8 %, while Sinner Schrader Mobile, at 11.3 %, was within the projection
interval for the segment, although it fell significantly short of its own planning.
The fact that the high demand met with an agency which had been strengthened in the previous years in respect of its
broad service portfolio and its structures and which continues to enjoy a good reputation on the market was decisive in
the successful development of the Sinner Schrader agency. On the one hand, the development in the strategy and commu-
nication/campaign areas and the establishment of the operations in Munich and Prague were decisive. Added to this was
the establishment of the system of client relationship managers and the equally important development of creative and
technical disciplines and their inter-disciplinary cooperation. All in all, this makes it possible to considerably expand some
significant client relationships, particularly in the telecommunications sector, and at the same time acquire other new
client relationships.
Slightly more than a third, or a good € 3.3 million, of the Sinner Schrader agency increase in revenue in the 2013/2014
financial year was generated with clients who had been acquired in the year of the report, including the Beck’s brand of
brewery group Anheuser-Busch InBev, Commerzbank and a significant company operating in the German automobile
industry, with which the biggest contract in the history of Sinner Schrader in the mid single-digit million range was won.
Although Sinner Schrader had to phase out its commitment to ŠKODA in connection with this contract, the development
with other important existing clients easily more than compensated for this. Thus, for example, the Sinner Schrader agency
was entrusted by UnityMedia KabelBW with the further development and support of all the digital customer channels,
and it is also working on Europe-wide projects of the Liberty Global Group, to which UnityMedia KabelBW belongs. The
relationship with the E-Plus Group also developed most dynamically.
The development of Sinner Schrader Mobile was more restrained, mainly because client relationships in the area of
mobile applications are more project-based than those in digital agency business. This is expressed in growth which fell
development of net revenueS and net revenue margin By quarterin € mil l ion and % for the 2012/2013 and 2013/2014 f inancial years
1) Before costs for expansion of service portfolio
Q4 2013/2014
13.5
7.1 %9.3 %1)
Q3 2013/2014
13.0
4.9 %7.9 %1)
Q1 2013/2014
10.8
5.7 % 10.1 %1)
Q2 2013/2014
11.3
7.6 % 10.9 %1)
Q2 2012/2013
8.3
–4.9 % 0.2 %1)
Q3 2012/2013
9.1
2.9 % 5.6 %1)
Q4 2012/2013
9.8
6.2 % 9.7 %1)
Q1 2012/2013
9.2
2.4 %6.6 %1)
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marginally short of the double-digit mark, with the rate of new business at a good 53 %. Furthermore, the pricing pressure
for Sinner Schrader Mobile is greater than in the broader context of digital business.
interactive mediaThe Interactive Media segment also contributed markedly to the growth of the Group. The revenue for the segment slight-
ly more than doubled to € 5.9 million, mainly thanks to the new establishment of Sinner Schrader Content GmbH and the
implementation and supervision of initial content-based online marketing projects. The original forecast of an increase in
the range of 50 % was thus clearly exceeded, although an improvement in the revenue was prevented by another delay of
around six months in the completion of the NEXT AUDIENCE Platform in NEXT AUDIENCE business, which is currently
being established, and even resulted in a fall in revenue. In contrast Sinner Schrader has grown again, albeit only slightly,
in the online media business transacted by mediaby GmbH. It was not possible to achieve the ambitiously planned
increases in revenue due to the comparatively slow development with the current business model.
interactive commerceAfter a financial year of adjusting to the decision of two major clients to significantly reduce their business volume,
the Commerce Plus Group, which constitutes the Interactive Commerce segment, planned to return to growth in the
2013/2014 financial year. This has clearly been successfully achieved, with an increase in revenue of € 0.35 million over
that of the previous year. However, the dynamics, at 4.6 %, remained behind the plan of around 8 %. Commerce Plus has
definitely been very successful in acquiring new clients. At just under € 1.3 million, business with new clients was at a
high level and accounted for a good 16 % of the total revenue. Considerable success was also achieved in business with
existing clients: Commerce Plus increased its cooperation with simyo, for which it bears responsibility for the hardware
shop as an operator model, and with the chain of chemist shops Müller, for which online shops were designed and
implemented. Losses were nevertheless reported for business generated with existing clients in the segment in general,
and these dampened overall growth.
As the business volume in all the segments grew, so too did the business activities requiring consolidation which were
conducted among the segments. The clear rise in inter-segmental revenues of just under € 0.35 million in the previous
year, to € 0.9 million in the 2013/2014 financial year was also the result of the establishment of the content marketing
business in the Interactive Media segment, for which the technical platform of the Interactive Marketing segment has
been set up and been technically maintained, further developed and operated from this time on.
net revenueS By Segmentin € mil l ion for the 2013/2014 and 2012/2013 f inancial years
inteRActive commeRce
7.97.6
+5 %
holding/conSolid.
–0.9–0.4
–172 %+36 %
inteRActive mARketing
26.3
35.7+106 %
inteRActive mediA
2.9
5.9
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The net revenue generated with newly acquired clients totalled € 5.6 million across all the units in the Sinner Schrader
Group in the year of the report. Business with new clients in the Group thus accounted for just under 45 % of the increase
in the revenue for the 2013/2014 financial year over that of the previous year. The share in the total net revenue of the
Sinner Schrader Group, the new-client rate, was 11.4 % in the year of the report, and was thus higher than in the past five
financial years.
The fact that business with new clients was faring well and was accompanied by an even better development in business
with existing clients was decisive for the high growth rate of the Sinner Schrader Group in the 2013/2014 financial
year. The units in the Sinner Schrader Group increased their business transacted in existing client relationships by a total
of € 6.6 million, with growth being concentrated on a few of the ten largest clients of the last year, some of which use the
services of several Sinner Schrader units.
The positive development in the individual client relationships, which shows that Sinner Schrader is in a position to
achieve a high level of client satisfaction over a period lasting many years, nevertheless resulted in a significantly
stronger dependence on individual major clients in the year of the report. The ten largest client relationships accounted
for a share of 71.0 % of the net revenue in the 2013/2014 financial year. In the 2011/2012 financial year, the share had
reached its lowest level so far, at 58.6 %, and in 2012/2013 it rose again slightly to 62.0 %. Net revenues of 50.1 % and
21.0 %, respectively, were achieved in the Sinner Schrader Group with the five largest clients and the largest client in the
year of the report. The comparative figures for the previous year were 41.5 % and 10.0%, respectively.
The dynamic development of business in the year of the report led to significant changes in the sector mix of the Sinner-
Schrader Group. Since existing clients in the Telecommunications & Technology sector developed particularly strongly in
the 2013/2014 financial year, the share of this sector in the Group’s total net revenue rose to 33.6 %. In the previous year
the share – adjusted by the reallocation of UnityMedia KabelBW from the Media & Entertainment sector, to which it had
been allocated in 2006/2007 when the client relationship commenced – was 16.3 %. Reallocation meant that the figure for
the previous year had to be adjusted upwards by 3.7 percentage points at the expense of the Media & Entertainment sector.
revenue development By new and eXiSting clientSin € mil l ion for the 2009/2010 to 2013/2014 f inancial years
+7.0
+4.1
+2.9
2010/2011
+3.0
+0.3
+2.7
2009/2010
+3.5
+1.6
+5.1
2011/2012
+2.1
–1.7
+0.4
2012/2013
+5.6
+6.7
+12.3
2013/2014
eXiSting clientSnew clientS
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5.2 (pReviouS yeAR: 5.41)) medIa & entertaInment
3.6 (pReviouS yeAR: 7.2) Other
33.6 (pReviouS yeAR: 16.91)) telecOmmunIcatIOns & technOlOgy
17.3 (pReviouS yeAR: 17.4) transPOrt & tOurIsm
20.2 (pReviouS yeAR: 27.1) retaIl & cOnsumer gOOds
20.1 (pReviouS yeAR: 26.0) fInancIal servIces
1) After re-classification of UnityMedia KabelBW to the Telecommunications & Technology sector
The strong increase in the share of the Telecommunications & Technology sector resulted in a decrease in the percent-
ages of the other four sectors, reported separately by Sinner Schrader, in spite of an increase in revenue generated with
all the other sectors with the exception of the Retail & Consumer Goods sector. After Telecommunications & Technology,
the Transport & Tourism sector increased in absolute terms more than any other due to the significant order from the
German automobile industry. The Transport & Tourism share remained almost stable, at 17.3 % in comparison to 17.4 %.
With slight growth from clients in the Financial Services sector and a slight decrease in the Retail & Consumer Goods
sector, revenues generated with clients from these two sectors were at approximately the same level as in the previous
year. However, their share in the net revenue of the Group thus decreased quite clearly, by 5.9 and 6.9 percentage
points, to 20.1 % and 20.2 %, respectively.
The Media & Entertainment segment remained the smallest separate group of clients in the Sinner Schrader Group. Com-
pared with the share of 6 % in the total revenue for last year, which had been adjusted by the re-classification of Unity-
Media KabelBW, the share in the year of the report was maintained at a relatively good level, at 5.2 %. Revenues generated
with clients which were not to be allocated to one of the five listed sectors became less important, accounting for 3.6 %
of the total revenue, after 7.2 % in the previous year. The two largest unallocated clients are from franchised convenience
catering facilities and the Pharmaceuticals & Chemicals sector.
4 .2 operating reSult (eBita)
Sinner Schrader also achieved the planned marked improvement in earnings before interest, taxes and depreciation
effects from acquisitions (EBITA) in the 2013/2014 financial year, on the basis of the considerable increase in the volume
of business. The EBITA of € 3.1 million in the year of the report was more than four times as high as in the previous year,
and slightly higher than the earnings corridor of € 2.5 million to € 3.0 million published in the annual forecast.
Sinner Schrader was, however, not able to raise the overall earnings potential of the significantly increased business
volume throughout. The main reasons for this are the following:
2013/2014
net revenueS By Sectorin % for the 2013/2014 f inancial year
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• The high growth rate in the Sinner Schrader agency was only possible with the extensive use of freelancers and by
accepting inefficiencies in the project execution.
• A delay in the completion of the NEXT AUDIENCE Platform lasting more than six months postponed the commencement
of marketing the audience management software to the following year, so that, contrary to expectations, the operating
loss situation in the year of the report had not yet improved against the previous year.
The operating margin, the ratio of EBITA to net revenue, at 6.3 % in the 2013/2014 financial year, only reached a figure
in the lower range of the projection interval of 6.1 % to 7.3 %. The margin would have been 9.5 % without the other NEXT
AUDIENCE losses. It amounted to 1.9 % in the previous year.
The three segments all contributed to the positive development of the operating profit, with the Interactive Media segment
achieving the biggest improvement in the operating profit in spite of the negative impact from the development of NEXT
AUDIENCE. The newly established content marketing business contributed most to the improvement in the operating
profit, but mediaby GmbH, which returned to operating profits, also played a role in the positive development of the oper-
ating profit of the segment, despite the fact that the earnings target was not reached, one of the reasons being the need
for allowances resulting from the insolvency of a client. Although the operating result in general continued to be negative
in the 2013/2014 financial year as well, at around € –0.3 million it did improve considerably over the figure of € –1.6 mil-
lion in the previous year.
In the Interactive Marketing segment, the EBITA rose by just under € 0.7 million, to € 4.05 million, in the year of the report.
The strong growth in revenue, particularly in the Sinner Schrader agency, was accompanied by a decrease in the operating
margin of 1.5 percentage points, to 11.4 %. The necessity to use more freelancers and the enhanced complexity of man-
agement due to the growth in the business volume cost margin points. Furthermore, the development at Sinner Schrader
Mobile contributed to the decrease in the margin, since the development of revenue and the capacity expansion diverged.
The targeted improvement in the margin was thus not achieved. The operating result of the Interactive Marketing seg-
ment would have been around € 4.6 million if the margin had remained constant.
The Interactive Commerce segment contributed € 0.5 million to the improvement in the operating profit of the Group in the
2013/2014 financial year. The aim of returning to operating profits was achieved with an EBITA of € 0.15 million in the year
of the report. The operating margin, however, fell short of the forecast of 4 % to 5 %. The failure of the margin to exceed
1.9 % was not least due to an above-average need for allowances as a result of two insolvencies in the group of clients.
eBita By Segmentin € mil l ion for the 2013/2014 and 2012/2013 f inancial years
inteRActive mARketing
3.44.1
inteRActive mediA
–1.6 –0.3
inteRActive commeRce
–0.4 0.1
holding/conSolid.
–0.7 –0.8
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development of costs by funct ion
2013/2014 2012/2013 chAnge
in € 000S in %1) in € 000S in %1) in %
Cost of revenues 37,168 76.5 27,659 76.0 34.4
thereof amortisation expenditure 71 0.1 188 0.5 –62.2
Costs of marketing 3,458 7.1 3,932 10.8 –12.1
thereof amortisation expenditure 11 0.0 80 0.2 –86.2
General and administrative costs 4,771 9.8 4,137 11.4 15.3
Research and development costs 356 0.7 357 1.0 –0.5
1) As a percentage of net revenues
development of coStS By functionThe cost of revenues rose slightly disproportionately higher to the revenue in comparison to the previous year by 34.4 %,
mainly due to the increased use of freelancers and inefficiencies in project management. This caused the gross margin to
fall by another 0.5 percentage points, to 23.5 %. The gross profit nevertheless increased by € 2.7 million in absolute terms,
corresponding to an increase of 30.8 % in comparison to the previous year.
The considerable increase in the business volume in the 2013/2014 financial year was achieved without any increased
sales efforts. Sales costs in the year of the report even fell by almost € 0.5 million, or 12.1 %, against those of the previous
year. In the Interactive Marketing segment, the extensive demand volume and the high capacity utilisation of resources
meant that around € 0.2 million less was spent on sales and marketing in 2013/2014 than in the previous year. Sales costs
in the Interactive Media segment were reduced by € 0.3 million, mainly due to the delay in the completion of the NEXT
AUDIENCE Platform, which suggested that a temporary cut-back in the marketing and sales efforts would be appropriate.
The sales costs remained unchanged in the Interactive Commerce segment. The sales costs in the 2013/2014 financial
year still accounted for 7.1 % of the revenue, 3.7 percentage points fewer than one year earlier.
The general and administrative costs increased by a good € 0.6 million, or 15.3 %, in the year of the report. The increase
was thus much less than the increase in revenue and was mainly due to reinforcing the administrative infrastructure. The
disproportionately lower increase increase in costs caused the share in the revenue to decrease from 11.4 % in the previ-
ous year to 9.8 %.
When viewing the cost development by function, it must be noted that the amortisation costs in the financial year were
just less than € 0.2 million lower than in the previous year. The amortisation costs – costs for depreciation on intangible
assets, such as existing clients and software developed by the Company itself, which were to be capitalised separately
from goodwill as part of purchase price allocations – are not included in EBITA, but are to be allocated to function costs
under IFRS. These costs fell by 0.5 percentage points in relation to revenue. Since the amortisation costs are to be allo-
cated to the functions, their fall has somewhat contained the rise in revenue costs and enhanced the reduction in sales
costs. Without these costs, the worsening of the gross margin would have been 0.8 percentage points and the marketing
costs would have fallen by only 3.3 percentage points in relation to revenue.
The expenditure for research and development remained unchanged at € 0.35 million in the 2013/2014 financial year in
comparison to the figure for the previous year. In relation to the revenue, the research and development costs decreased
by 0.3 percentage points to 0.7 % in the year of the report. Insofar as the work performed by the NEXT AUDIENCE team of
developers in the 2013/2014 financial year related to the completion of the first version of the NEXT AUDIENCE Platform,
the relevant costs incurred were capitalised as in the two previous years. This amounted to € 0.45 million in the year
of the report, after € 0.3 million in the previous year. Capitalised development services performed on the NEXT AUDIENCE
Platform in the past three years totalled a good € 0.9 million at the end of the 2013/2014 financial year.
34
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The balance of other expenses and income – mainly from out-of-period transactions – was € 0.1 million in the 2013/2014
financial year and in the previous year.
development of coStS By coSt typeThe development of costs by cost type illustrates the extent to which the high growth rate in the 2013/2014 financial year
was made possible by the increased use of freelancers. The cost of purchased goods and services was more than
doubled at € 6.1 million. The expenses in all the other cost types developed extremely disproportionately to the 33.5 %
growth rate for revenue.
The personnel expenditure increased by 13.5 % in comparison to the previous year, with the personnel capacity, measured
in terms of the average number of full-time employees, only increasing by 38.5 to 444.2 in the 2013/2014 financial year.
More than anything else, the limited resources on the relevant human resources market have restricted the pace of
the increase in capacity. In the year of the report, personnel costs exceeded the figure for the previous year by 3.7 %.The
productivity – measured in terms of the real net output per full-time employee – developed far more dynamically and
increased by 9.3 %, thus contributing significantly in total to the improvement of the operating result. The net revenue
per full-time employee reached a good € 109,500 in the year of the report, which exceeds the figure for the previous year
by 22.0%.
Other operating expenses increased by 8.5 %. Cost increases, mainly in the areas of occupancy costs, IT infrastructure and
connection costs, software rent and advanced and further education were curbed through lower expenses, particularly
in the marketing costs in connection with holding the NEXT conference in Berlin and cautious NEXT AUDIENCE marketing.
The more considerable increase in expenses for depreciation in the previous financial year (excluding amortisation costs)
stabilised at a high level in the 2013/2014 financial year in view of the level of investments in property and equipment
and intangible assets, which was lower than in the previous year, without taking the capitalisation of own development
costs into account, in the amount of € 1.0 million (previous year: € 1.2 million) with a slight increase of 5.9 %.
development of costs by cost type
2013/2014 2012/2013 chAnge
in € 000S in %1) in € 000S in %1) in %
Personnel expenses 27,338 56.3 24,081 66.2 13.5
Costs of materials and services 11,113 22.9 5,064 13.9 119.4
Other operating expenses 6,426 13.2 5,923 16.3 8.5
Depreciation 794 1.6 749 2.1 5.9
Amortisation expenses 82 0.2 268 0.7 –69.4
1) As a percentage of net revenues
reconcil iat ion of operat ing income according to statement of operat ions and eBita
2013/2014 in € 000S
2012/2013 in € 000S
chAngein %
Operating income 2,982 413 622.6
Add-back amortisation expenditure1) 82 268 –69.4
EBITA 3,064 681 350.0
1) Amortisation of intangible assets from acquisitions
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4 .3 net income
The Sinner Schrader net income increased from just above zero to a good € 1.8 million in the 2013/2014 financial year,
thanks to the positive operating development, the continued reduction in amortisation costs and an improved tax struc-
ture.
Amortisation costs in the amount of just under € 0.1 million were incurred for the last time in the 2013/2014 financial
year from the acquisitions made in the period from 2009 to 2011. They covered the full amortisation of the existing clients
acquired when Maris Consulting GmbH was taken over in January 2011 and the software developed by the Company itself
that was accepted as part of the takeover of Sinner Schrader Mobile in May 2011. In the previous year, the amortisation
costs still amounted to just under € 0.3 million, which resulted in a reduction in the amount of € 0.2 million to the develop-
ment of the net income.
The financial result, from which no significant contribution to profits had been generated in the past few financial years
due to a shrinking liquidity reserve and continued low interest rates at the short end of the yield curve, worsened slightly
again to just above zero in the year of the report.
The income before taxes increased by € 0.2 million more than the EBITA in the year of the report as a result of the effect
from the amortisation costs, and increased by € 2.55 million to € 3.0 million in comparison to the previous year.
The tax account for the 2013/2014 financial year resulted in a negative effect from current and deferred taxes on income
in the amount of a good € 1.15 million. In view of the considerably higher amount of earnings before taxes, these taxes on
income significantly exceeded those of the previous year in the amount of € 0.45 million. However, the fact that the tax
rate had clearly returned to normal, from almost 100 % in the previous year to around 38.3 %, was decisive for the positive
development of net income. The improvement in the tax rate was to a large extent due to Sinner Schrader being able to
successfully supplement the Interactive Media segment with content marketing business, which was set up in a new
company and now constitutes a fiscal unit, NEXT AUDIENCE GmbH.
Although an excess loss remains on the whole, this will not result in any tax-related effect due to the continued absence
of a profit history for NEXT AUDIENCE GmbH in the 2013/2014 financial year. The excess is, however, far lower than in the
AmoRtiSAtion of intAngible ASSetS fRom AcQuiSitionS
ebitA
income fRom inveSting the liQuidity ReSeRve
tAXeS on income
conSolidAted income
reconciliation of eBita to conSolidated incomein € mil l ion for the 2013/2014 f inancial year
1.84
0.01
–1.15
3.06
–0.08
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previous year. This loss in the NEXT AUDIENCE Group and a loss in the Prague subsidiary of the Sinner Schrader agency,
which is currently being reconstructed after the client relationship to ŠKODA had been phased out after around half of the
year of the report, meant that the tax rate in the 2013/2014 financial year did not reach the statutory rate of around 32.3 %.
The resulting net income of a good € 1.8 million corresponds to earnings per share of € 0.16 on a diluted basis. As already
published in the annual forecast, this net income is a good basis to recommence the dividend payments which had been
suspended in the past two financial years.
4 .4 caSh flowS
The cash flow statement for the 2013/2014 financial year is characterised by a clear increase in the funds tied up
in working capital as a direct result of the strong increase in the business volume. The inflow of funds from operational
activities was thus only € 1.5 million in the year of the report, € 0.9 million below that of the previous year. This inflow
was not sufficient to cover the investments made in 2013/2014, in the amount of € 1.8 million. A part of the excess
of € 0.3 million was offset with a capital inflow from financing activities in the amount of € 0.2 million. The total liquidity
reserve from cash funds, fixed-term deposits and securities was reduced in the amount of the remaining € 0.1 million.
The liquidity reserve had been increased by € 0.75 million in the previous year. This was matched by inflows of funds from
operational activities in the amount of € 2.45 million, outflows of funds for investments of € 1.6 million (without additions
and disposals of fixed-term deposits and securities), and € 0.1 million for buying back treasury stock.
The rise in funds tied up in working capital is mainly the result of significant increases in receivables from clients from
outstanding billed revenues and unsettled revenues. As at the balance sheet date on 31 August 2014, funds tied up in
these two positions amounted to € 5.0 million more than a year earlier. On the one hand this results from the increase in
the business volume and from the fact that the final quarter of the financial year was the quarter with the strongest
sales. On the other hand, the rise in receivables positions from clients is also the result of particularly strong growth in
these client relationships in which comparatively long payment periods are agreed, with the collection periods having
been extended from 86 to 103 days. The ratio between the total of outstanding billed revenues and unsettled revenues
and the gross revenue has worsened by 5 percentage points in comparison to the previous year, mainly for these reasons.
development of net income and taX rate in € mil l ion for the 2009/2010 to 2013/2014 f inancial years
2013/2014
1.838 %
2011/2012
0.2
79 %
2009/2010
1.1
33 %
2010/2011
1.3
40 %
2012/2013
0.001
100 %
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In addition to the increased cash requirement for financing receivables from clients there was a € 0.5 million increase in
other assets.
A part of this increased amount of funds tied up was offset by the release of funds on the basis of increased trade
accounts payable, advance payments received and other liabilities (totalling € 2.2 million), the positive development of
the operating result in the 2013/2014 financial year, resulting in reduced tax reimbursement claims and increased tax
liabilities (€ 0.7 million), and through increased other revenue reserves (€ 1.2 million), also used for payments of bonuses
and royalties.
The funds used for investments in the amount of € 1.8 million (without the inflows and outflows of funds from the use
of liquidity investments) comprised what was probably the last earn-out payment from the acquisition of TIC Mobile
GmbH (now Sinner Schrader Mobile GmbH) in the amount of € 0.3 million, capitalised expenses for the development of
the NEXT AUDIENCE Platform in the amount of € 0.5 million, and replacement and expansion investments for the office
and IT infrastructure and equipment for work stations. The comparative figures for the previous year were € 1.0 million,
€ 0.3 million and € 1.15 million, respectively.
In the field of financing activities in the year of the report, outflows of funds of a good € 0.07 million went into repurchas-
ing 36,754 shares of treasury stock, and inflows of funds of € 0.25 million to issuing shares of treasury stock to employ-
ees, who exercised 150,000 employee options in the 2013/2014 financial year. On balance this resulted in a positive cash
flow from financing activities in the amount of just under € 0.2 million.
4 .5 aSSet and financial Situation
The considerable increase in the volume of business resulted in a clear increase in the balance sheet total in the
2013/2014 financial year. On 31 August 2014 the balance sheet comprised assets totalling € 28.55 million, which is
€ 5.55 million more than one year earlier.
Current assets increased by € 4.95 million and non-current assets by € 0.6 million. The increase in current assets, of
which only the trade receivables for services already billed accounted for € 3.15 million, is a direct consequence of the
conSolidated StatementS of caSh flowSin € mil l ion for the 2013/2014 and 2012/2013 f inancial years
cASh flowS fRominveSting ActivitieS1)
cASh flowS fRomopeRAting ActivitieS
cASh flowS fRomfinAncing ActivitieS
chAnge in fundS And SecuRitieS1) –0.1
0.2
1.5
–1.8
1) Without investment of liquid funds in securities and long-term fixed deposits
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gross revenues, which increased by more than € 10 million. The impact of the growth in turnover was intensified because
relationships with existing clients with comparatively long payment terms have grown at an above-average rate.
The growth in fixed assets, at just under € 0.5 million, mainly resulted from the continued capitalisation of the develop-
ment costs for the NEXT AUDIENCE Platform in the 2013/2014 financial year. Software was reported in other intangible
assets at a good € 0.9 million as at the balance sheet date on 31 August 2014. The recoverability of recognition was
confirmed in an impairment test carried out on the basis of a three-year business plan for NEXT AUDIENCE and various
scenario calculations. The development of the first version of the NEXT AUDIENCE Platform was completed in August
2014, so recognition in the balance sheet will be depreciated according to schedule in the coming three years, from the
beginning of the 2014/2015 financial year.
The remaining increase of € 0.1 million in the fixed assets concerned property and equipment, which has thus increased
disproportionately lower than corporate growth.
There is no change in goodwill in the amount of € 4.0 million in the fixed assets of the Sinner Schrader Group. The goodwill
results from the acquisition of spot-media AG in 2007 (now incorporated in Commerce Plus GmbH), and from subsequent
expansion acquisitions made by the AG, and the takeover of TIC-mobile GmbH (now Sinner Schrader Mobile GmbH).
Goodwill was subjected to impairment tests as part of preparing the annual financial statements. The tests confirmed its
recoverability.
From a financing viewpoint, the increase in assets is matched by an increase of € 3.55 million in current liabilities and an
increase of € 2.0 million in equity.
In the current liabilities, trade accounts payable, which increased by € 1.25 million, and reserves, at € 1.2 million, reported
considerable increases. However, the other short-term liability items also increased.
The long-term liabilities only comprised deferred tax liabilities as at 31 August 2014, the same as at 31 August 2013.
The volume, at just under € 0.7 million in comparison to the figure as at the reporting date in the previous year, had
hardly changed.
31.08.2014 31.08.201331.08.2013 31.08.2014
development of conSolidated Balance Sheetin € mil l ion
liaBilitieSaSSetS
liQuid fundS And cASh eQuivAlentS
cuRRent AccountSReceivAble And ASSetS
non-cuRRent ASSeetS
cuRRent liAbilitieS And AccRued eXpenSeS
non-cuRRent liAbilitieS And AccRued eXpenSeS
ShAReholdeRS’ eQuity7.1
14.0
5.8
28.5
13.8
28.5
15.6 0.7
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The significant increase in the shareholders’ equity comes from the net income of a good € 1.8 million achieved in the
year of the report. The remaining increase of just under € 0.2 million is the result of issuing treasury stock for servicing
the exercise of 150,000 employee options, which was matched by marginal expenditure for buying back more shares of
treasury stock on the market in the amount of 36,754 shares in the year of the report.
The increase of € 2.0 million in the shareholders’ equity corresponds to a growth rate of 16.8 % in comparison to the
previous year. Since the assets increased overall by 24.2 %, the shareholders’ equity rate decreased by 3.1 percentage
points, from 52.4 % on 31 August 2013 to 49.3 % on 31 August 2014. In spite of this reduction, the Sinner Schrader Group
remained and will remain soundly financed, without employing any financial liabilities. Sinner Schrader is able to meet
existing payment obligations at any time.
4 .6 employeeS
On 31 August 2014, 521 employees (including apprentices, interns, students/post-graduate students and management
bodies) worked in the Sinner Schrader Group. The number of employees rose by 70, or 15.5 %, in comparison to the status
on 31 August 2013. The increase in the workforce thus remained significantly behind the growth in the business volume.
With a view to the development of the average available personnel capacity measured in terms of full-time employees
during the financial year, the difference to the growth in revenue becomes even clearer. In the 2013/2014 financial year,
the personnel capacity was 444 full-time employees in comparison to the average number of 406 full-time employees
in the 2012/2013 financial year. The personnel capacity in the year of the report thus only exceeded that of the previous
year by 9.5 %.
The gap between the increase in business and the personnel capacity was closed by significantly raising the level of
capacity utilisation of productive employees and by intensifying the use of freelancers. The costs for freelancers for the
Group accounted for 15.0 % of the net revenue in the year of the report. The share was only 7.6 % in the previous year.
An excessively high proportion of freelancers has a negative impact on the project performance, despite the fact that the
rendering of some of the services by freelancers is acceptable even under risk aspects and frequently even indispensable,
given their special expertise and because they are sometimes only taken on for short periods when new client teams
need to be established. This is why Sinner Schrader, in keeping pace with the sales dynamism, intensified its recruitment
efforts during the course of the financial year, which meant that the final personnel status exceeded the annual average
of available capacities.
152 (pReviouS yeAR: 136) cOnsultancy
58 (pReviouS yeAR: 57) admInIstratIOn
116 (pReviouS yeAR: 74) creatIOn
195 (pReviouS yeAR: 184) technOlOgy
521 (pReviouS yeAR: 451)
employee Structure according to areaSas at 31 August 2014
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378 (pReviouS yeAR: 330) hamburg
24 (pReviouS yeAR: 25) hannOver
41 (pReviouS yeAR: 41) berlIn
10 (pReviouS yeAR: 13) Prague
27 (pReviouS yeAR: 13) munIch
41 (pReviouS yeAR: 29) frankfurt
Of the 521 Sinner Schrader employees at the end of the financial year, 328 worked in the Interactive Marketing segment.
The number of employees in this segment thus increased by 69 employees, or 26.6 %, during the course of the 2013/2014
financial year. Of these employees, 62 worked in the Sinner Schrader agency operations in Germany, while the staff in
the office in Prague was reduced by 3 employees following the termination of cooperation with ŠKODA. Sinner Schrader
Mobile gained 10 employees.
On the balance sheet date, the units in the Interactive Media segment had 53 employees, 13 more than a year earlier.
The increase was solely the result of the establishment of Sinner Schrader Content GmbH. When combined, the number
of staff with mediaby and with NEXT AUDIENCE was virtually stable, having been reduced by one employee as at
31 August 2014.
The staff in the Interactive Commerce segment was reduced by 15 employees during the course of the financial year,
mainly because the location in Berlin was given up as at the end of the 2013 calendar year.
Sinner Schrader AG grew in line with the development of business, increasing the number of its employees by 3, to
43 employees on 31 August 2014, thus remaining significantly below a proportional increase in the number of employees.
Of the total number of staff on 31 August 2014, 435 were permanent employees, 11 were apprentices and 75 were in-
terns, post-graduate students and students working on a temporary basis. In the previous year, the total number of staff
was distributed across these three groups with 365, 14 and 72 employees, respectively. Only the number of permanent
employees was increased. Between the two other groups there was a shift in the number of employees by three due to
successfully completed vocational training.
Broken down according to locations, the workforce was distributed as follows as at 31 August 2014: 378 employees in
Hamburg, 41 employees in Frankfurt am Main, likewise 41 employees in Berlin, 24 employees in Hanover, 27 employees
in Munich and 10 employees in Prague. The comparative figures against the reporting date for the previous year were
330, 29, 41, 25, 13 and 13 employees, respectively. The increase in the number of employees was thus concentrated on
the operations of the Sinner Schrader agency in Hamburg (+ 48 employees), Munich (+ 14 employees) and Frankfurt am
Main (+ 12 employees).
The allocation of the staff to the areas or disciplines of consulting, technology, creation and administration shows that
Sinner Schrader increased the number of staff in all the disciplines in the 2013/2014 financial year. There was, however, a
clear focus on creation, including the establishment of the content marketing business of Sinner Schrader Content GmbH.
At 116 employees, creation had 42 employees more on 31 August 2013 than on 31 August 2014. This corresponds to an
increase of 56.8 %.
521 (pReviouS yeAR: 451)
employee Structure according to locationas at 31 August 2014
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In the 2013/2014 financial year, technology continued to be the discipline with the highest number of employees in the
Sinner Schrader Group, with 195 employees on 31 August 2014, 11 employees more than on the reporting date of the pre-
vious year. Sinner Schrader thus grew by 6.0 % in this respect. A bigger increase would certainly have been preferable, but
extremely limited resources on the human resources markets considerably slow the rate of expansion down, particularly
in the technical area.
The consulting discipline, in which employees assigned to the strategy, analysis, client and project management and
media planning are pooled, had 152 employees on the reporting date. The number was increased by 16 employees, or
11.8 %, during the course of the 2013/2014 financial year.
The number of employees working in an administrative function increased by only one employee, to 58, from one report-
ing date to the next.
In terms of the available annual average personnel capacity of full-time employees in the financial year, the challenge
relating to increasing technical resources becomes even more obvious, since the available capacity in this discipline was
even slightly reduced in comparison to the 2012/2013 financial year, with a decrease from 176.3 to 171.5 full-time
employees in the 2013/2014 financial year. In contrast, the capacity in consulting and creation developed in line with the
number of people employed, from 117 and 68.9 to 133.3 and 92.8 full-time employees, respectively. An examination
of the capacity showed that administration, with 46.5 full-time employees in 2013/2014, exceeded the previous year with
43.5 full-time employees by more than the number of persons working in development would show on the respective
reporting date.
With respect to the development of the personnel capacity, the development of existing employees becomes very impor-
tant, not least in view of the tight situation on the personnel market. In this case, Sinner Schrader has pooled and
increased its efforts under the name of “Sinner Schrader Campus”. The costs for advanced and further education were
accordingly raised by 31 % to more than € 0.3 million in the 2013/2014 financial year in comparison to the previous year.
5 BuSineSS development and Situation of the ag
Sinner Schrader AG is the managing holding company of the Sinner Schrader Group. Its business activity comprises de-
velop ing and implementing the Group’s strategy, expanding of the business portfolio, controlling, monitoring and financing
the operating Group companies, administrating and controlling Group liquidity, managing the domestic companies liable
for tax, performing central Group tasks, such as Investor Relations work, providing and administering the infrastructure
used jointly by the Group companies, in particular the office premises, as well as rendering central administrative services.
development of the income SituationThe positive overall development of business transacted by the operative subsidiaries in the 2013/2014 financial year
also resulted in a marked improvement in the income situation of the AG in comparison to the previous year. The result of
ordinary business activities was just under € 0.9 million in the year of the report, thus exceeding the figure for the previ-
ous year by € 1.8 million.
A decisive factor in this improvement was the increase of € 3.25 million in contributions to profits made by the subsidiar-
ies, which are affiliated with the AG by way of a profit and loss transfer agreement, so their profits and losses have a direct
impact on the Statement of Operations of the AG, to amount to just under € 4.75 million in comparison to the previous year.
In addition to this income from profit and loss transfer agreements, Sinner Schrader AG also received an amount of
€ 0.8 million from mediaby GmbH as part of the distribution of cumulative profits generated in the media business. There
were no comparable payments in the previous year. The contributions to profits made by the subsidiaries totalled
€ 5.55 million in the 2013/2014 financial year. This figure only amounted to € 1.5 million in the 2012/2013 financial year.
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These contributions to profits were, however, matched by € 3.5 million in depreciation on financial assets, which had
not been forecast, and concerned the participating interests in NEXT AUDIENCE GmbH (€ 1.5 million) and mediaby GmbH
(€ 2.0 million).
As in the previous year, the AG financed the establishment of the audience management business of NEXT AUDIENCE
GmbH with payments of just under € 2.0 million into the capital reserve. This amount was more than had been planned
since there were delays in the completion of the NEXT AUDIENCE Platform in the 2013/2014 financial year, and as a result
it has not yet been possible to generate any notable revenues with the new platform. As at the balance sheet date on
31 August 2014, relatively high uncertainty remained in terms of the success of the developed technology on the market
from an objective point of view; this uncertainty was, however, alleviated by the completion of the NEXT AUDIENCE Plat-
form in August 2014 against the status on 31 August 2013. Sinner Schrader AG took account of the uncertainty by carry-
ing out non-scheduled depreciation in the amount of € 1.5 million on a part of the capital contribution, following which
NEXT AUDIENCE GmbH was reported at € 1.0 million as at 31 August 2014. The book value in the previous year was
€ 0.5 million, after depreciation of € 1.3 million on the value of the shares of NEXT AUDIENCE GmbH in the capital reserve.
The unscheduled depreciation on the value of the shares of mediaby GmbH was undertaken in connection with the slow
development of the Company in the current business model in comparison to previous plans, and the strategic decision to
merge mediaby GmbH and NEXT AUDIENCE GmbH in the 2014/2015 financial year. In this context, accumulated profits
from mediaby GmbH in the amount of € 0.8 million were also paid out in August 2014. The value of mediaby GmbH shares
after the non-scheduled depreciation was still € 1.3 million as at 31 August 2014.
The AG achieved € 4.4 million in revenues from the rendering of administrative services and the provision of infrastruc-
ture in the 2013/2014 financial year. This was just under € 0.7 million higher than in the previous year. The rise was
related to the growth in the volume of business conducted by the subsidiaries of the AG, notably Sinner Schrader
Deutschland GmbH, which operates the Sinner Schrader agency business.
The other operating income, which was mainly generated from the resolution of reserves, non-cash benefits for
employees, and out-of-period transactions, was slightly reduced, at € 0.04 million in the year of the report, in comparison
to just under € 0.07 million in the previous year.
The rise in the operating costs of the AG was approximately proportional to the total revenues. The personnel expenses
exceeded those of the previous year by € 0.5 million, reaching a volume of € 2.7 million. Other operating expenses in-
creased by € 0.3 million, likewise to € 2.7 million. The depreciation of intangible assets, property and equipment increased
only slightly by € 0.02 million, to just under € 0.2 million.
Against the trend, the cost of purchased services was reduced by just under € 0.2 million, mainly due to the transfer of
internal IT administration responsibilities from the AG to the internal IT support and purchasing unit at Sinner Schrader
Deutschland GmbH.
The resulting positive amount of income before taxes was matched by a tax liability of € 1.1 million due to the consider-
able share of non-taxable depreciation on investments, to result in another loss of € 0.2 million in the 2013/2014 financial
year. In the previous year the annual loss was € 1.3 million, with negative income before taxes of € 0.9 million.
The balance of interest decreased slightly again and remained just negative in the year of the report.
The resulting positive amount of income before taxes was matched by a tax liability of € 1.1 million due to the consider-
able share of non-taxable depreciation on investments, to result in another loss of € 0.2 million in the 2013/2014 financial
year. In the previous year the annual loss was € 1.3 million, with negative income before taxes of € 0.9 million.
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The forecast annual profit could not be achieved due to depreciation on investments. Since the value of mediaby GmbH
shares mainly originated from appreciation in value in the period from 2004 to 2007, for which Sinner Schrader undertook
postings to other revenue reserves according to Article 58 para. 2a of the German Stock Corporation Act (AktG) in each
respective year, an amount of € 2.0 million, corresponding to the amount of depreciation on investments in mediaby
GmbH, was taken from these reserves. The balance sheet profit of the AG amounts to € 1.8 million. In the previous year
the Statement of Operations of the AG reported a zero balance sheet profit as a result of the withdrawal from the other
revenue reserves in the amount of the annual loss.
development of the aSSet and financial SituationThe balance sheet total of the AG was reduced by € 1.3 million in the 2013/2014 financial year, mainly due to non-
scheduled depreciation on the value of shares. As at 31 August 2014, the balance sheet total was € 34.1 million
in comparison to € 35.4 million on 31 August 2013. Since depreciation was covered by the generally positive operating
development of the subsidiaries, the shareholders’ equity was only reduced by € 0.05 million as at 31 August 2014, to
€ 31.45 million. This increased the shareholders’ equity rate by 3.1 percentage points from the one reporting date to
the next, from 89.1 % to 92.2 %. This made it possible to recover the percentage points in the year of the report that had
been lost in the previous year.
The depreciation on investments reduced the reported value of the shares in affiliated companies by € 1.5 million to
€ 27.7 million.
The considerable improvement in the operating result of all the subsidiaries together was clearly apparent in the change
in the items for receivables from and liabilities to the subsidiaries. Whereas the balance sheet as at 31 August 2013 had
reported a liability item of € 1.4 million in net terms for all the subsidiaries together, it showed accounts receivable of
€ 3.2 million as at 31 August 2014. The main drivers of this change are significantly raised profit transfers and the distri-
bution of mediaby GmbH profits.
The increase in current asset receivables totalling € 2.7 million was matched by a reduction in liquid funds in the same
amount as at 31 August 2014.
In addition to the substantial reduction in the liabilities to affiliated companies, the liabilities side shows a considerable
change, particularly in the tax accruals item. As at 31 August 2014, tax accruals were to be recognised in the amount of
€ 0.5 million, resulting from the positive operating result development of the consolidated fiscal unit.
The change in equity also reflects changes in the shares of treasury stock in the 2013/2014 financial year. Sinner Schrader
AG had bought back 36,754 shares of treasury stock on the market by 31 December 2013. In the following months,
the AG issued 150,000 shares from the shares of treasury stock for the exercising of employee options. The balance of
the calculated face values of the shares in the amount of € 113,246 reduced the corresponding deduction item in the
subscribed capital, thus increasing the shareholders’ equity. The capital reserve was increased slightly by the positive
balance of prices paid or received in excess of the face value of the shares. The two factors both contributed to increasing
the shareholders’ equity rate.
On the balance sheet date, Sinner Schrader AG remained soundly financed without the use of financial liabilities and was
able to meet all its payment obligations at any time.
employeeSOn the balance sheet date of 31 August 2014, Sinner Schrader AG had 43 employees, including members of the Manage-
ment Board, interns and students, which was three employees more than one year earlier. On average, 41 employees
worked for Sinner Schrader AG in the 2013/2014 financial year. There were 36 employees in the previous year. The staff
of the AG has thus grown disproportionately less than the Group.
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6 . corporate governance
6.1 declaration on corporate governance
Under Article 289a of the German Commercial Code, companies quoted on the stock exchange must either include
a declaration on corporate governance in their status report or make one accessible to the public on their website.
The Management Board of Sinner Schrader AG submitted the declaration on 17 November 2014 and published it on
the Sinner Schrader Investor Relations website at www.sinnerschrader.ag under the heading “Corporate Governance”.
6.2 compenSation report
6.2.1 compenSation SyStem for the management Board
The compensation system for the Management Board has not changed in comparison to the situation reported in the
combined 2012/2013 Status Report and Consolidated Status Report.
Specifying the structure and level of the Management Board compensation is the duty of the Supervisory Board.
The compensation system for the Management Board is aimed at paying the individual members appropriately according
to their areas of activity and responsibility while taking adequate account of individual performance, company success, and
the development of the share price by means of a substantial variable portion. It is made up of the following components:
• a non performance-related salary to be paid in twelve equal monthly instalments
• performance-related variable compensation related to one year, partially on the basis of achieving individual goals
and corporate goals laid out in the annual plan and partially as a percentage of the net income
• performance-related variable compensation related to three years, depending on achieving specific minimum values
for the average growth rate of net revenues and for the average net income margin over the three financial years
• share-based compensation component with a medium-to-long-term incentive effect
• other benefits (mainly a company car, accident insurance, D&O insurance with an excess, and the reimbursement
of expenses)
The individual weighting of each component takes account of the fact that the Management Board members hold varying
stakes in the Company. As at 31 August 2014, Matthias Schrader, co-founder of Sinner Schrader AG, held 2,579,289 shares
or 22.32 % of all shares issued. As at 31 August 2014, Thomas Dyckhoff held 74,950 shares.
The salary package of Mr Schrader therefore still does not contain any option allocations.
In connection with Mr Dyckhoff’s reappointment for the period from 1 January 2008 to 31 December 2012, Mr Dyckhoff
was promised 75,000 share options and, as at 1 August 2011, a further 45,000 share options from the 2007 Stock Option
Plan which was adopted by the Annual General Meeting of 23 January 2007. No further share options were granted in
connection with Mr Dyckhoff’s reappointment for the period from 1 January 2013 to 31 December 2016. The 2007 Stock
Option Plan provides for an exercise price in the amount of the average closing price of the Sinner Schrader share on the
five trading days before allocation, exercise thresholds of 30 %, 40 %, and 50 % above the exercise price, and waiting peri-
ods of three, four, and five years for one-third each of the allocated options. The average exercise price for the options
allocated to Mr Dyckhoff is € 1.87 per share.
Since 1 July 2010, the D&O insurance concluded for the Management Board members as part of the other benefits
has made provision for an excess in the level prescribed according to Article 93 para. 2 sentence 3 of the German Stock
Corporation Act (“AktG”).
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The members of the Management Board are subject to a post-contractual ban on competition which provides for
remuneration for observing this period in the amount of 50 % of the most recent non performance-related annual
compensation payment received. With respect to the compensation payments, it was agreed with the members
of the Management Board that they must fulfil the recommendations of the Corporate Governance Code No. 4.2.3.
An individualised Management Board compensation overview broken down according to its components for
the 2013/2014 financial year is listed in the Notes to the Consolidated Financial Statements and in the Notes to the
Sinner Schrader AG Annual Report.
6.2.2 compenSation SyStem for the SuperviSory Board
The compensation system for the Supervisory Board has not changed against the compensation system of
31 August 2013. The structure and amount of the remuneration paid to the Supervisory Board is specified by the
Annual General Meeting.
Under the Annual General Meeting resolution of 15 December 2011, remuneration for the regular Supervisory Board
members is as follows:
• basic compensation of € 12,500 per year
• expenses
• D&O insurance without excess
• reimbursement of the turnover tax to be paid on the Supervisory Board compensation and the expenses
Unlike the other members, the Chairman of the Supervisory Board receives fixed compensation of € 20,000 a year.
An individualised Supervisory Board compensation overview broken down according to its components for the 2013/2014
financial year is listed in the Notes to the Consolidated Financial Statements and in the Notes to the Sinner Schrader AG
Annual Report.
6.3 information relevant to taKeoverS according to article 315 para. 4 of the german commercial code
The subscribed capital of Sinner Schrader AG is divided into 11,542,764 individual no-par value share certificates with
a calculated face value of € 1 issued in the name of the owner. Different classes of shares have not been formed.
The members of the Management Board are underwriters of a consortium agreement in which the pre-IPO investors
in Sinner Schrader AG are obligated to the pooling of voting rights in the event of exercising rights and to standard pre-
purchase and co-sale rights.
On 31 August 2014 Sinner Schrader held 306,906 shares of treasury stock, which give it no voting rights or other rights.
Several shareholders have notified Sinner Schrader AG pursuant to Article 21 of the Securities Trading Act (“WpHG”) in
conjunction with Article 22 WpHG that over 10 % of the votes can be assigned to them. The most recent notification for
each shareholder is listed in the Notes to the Consolidated Financial Statements an the Annual Financial Statements of
Sinner Schrader AG as at 31 August 2014. According to the information there, as well as the presentation of the shares
held by the Board members in the Notes to the Annual Financial Statements of the AG, Matthias Schrader, co-founder of
Sinner Schrader and Chairman of the Management Board of the AG, directly held 2,576,289 shares as at 31 August 2014,
corresponding to 22.32 % of all voting rights.
None of the shares issued in Sinner Schrader AG are granted special rights.
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The AG does not initiate voting controls for employees holding a share of the capital if these employees do not fall under
the cited consortium agreement.
The appointment and dismissal of the members of the Management Board is based on Article 84 AktG. In addition, the
Statutes of Sinner Schrader AG make provisions for the Management Board to be made up of at least two people and for
the Supervisory Board to be able to appoint deputy members of the Management Board.
According to Article 119 para. 1 No. 5 AktG, amendments to the Statutes are subject to the Annual General Meeting.
According to the Statutes, the Supervisory Board is furthermore authorised to adopt amendments to the Statute that
affect only the wording.
The Annual General Meeting of 20 December 2012 authorised the Management Board to increase the share capital of the
AG once or repeatedly by up to a total of € 5,770,000 until 19 December 2017 with the approval of the Supervisory Board
by issuing new no-par-value shares in return for a contribution in cash or a contribution in kind (“Approved Capital 2012”).
The Annual General Meeting of 23 January 2007 authorised the Management Board to increase the share capital of the
AG, once or several times, with the approval of the Supervisory Board by 31 December 2011 by issuing a total of up to
600,000 option rights to no-par-value share certificates of the AG with a term of seven years to employees and members
of the management of the AG and affiliated companies, conditionally by up to € 600,000 (“Conditional Capital III”).
By a resolution adopted at the Annual General Meeting of 20 December 2012, the Management Board was also authorised
to increase the share capital of the AG with the approval of the Supervisory Board by 19 December 2017 by issuing
altogether up to 550,000 option rights for one no-value bearer share in the AG with a term of seven years to employees
and members of the management of the AG and affiliated companies conditionally by up to € 550,000 (“Conditional
Capital 2012”).
According to the Annual General Meeting of 29 January 2014, the Management Board is furthermore entitled to buy
back treasury stock up to a total share in the AG of 10 % of the share capital via the stock exchange or a public purchase
offer addressed to all shareholders by 17 December 2018. The Management Board may not take advantage of this
authorisation to trade treasury stock.
As at 31 August 2014, there were no major agreements of the AG that are subject to the condition of a change of control.
No compensation agreements made by the AG in the event of a takeover offer have been made with members of the
Management Board or employees.
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7 maJor eventS after the Balance Sheet date
On 4 November 2014 resolutions and contracts concerning a merger of mediaby GmbH and NEXT AUDIENCE GmbH were
all notarised with retroactive effect as at 1 September 2014 and reported for entry in the Commercial Register.
There were no other major events after the end of the 2013/2014 financial year that should be reported.
8 forecaSt
Sinner Schrader developed positively in the 2013/2014 financial year and exceeded the forecasts made a year ago on the
development of revenue and results. With a leap in revenue to € 48.6 million, Sinner Schrader more than compensated for
the weak growth of the previous year. The average growth rate over the 2012/2013 and 2013/2014 financial years was
16.2 %, and thus well into the double-digit range announced two years ago.
This pleasing development is mainly based on the regular business transacted by the Interactive Marketing segment and
from expanding the offer in the Interactive Media segment with content-based marketing solutions involving setting up
an editorial team and an editorial infrastructure. But Sinner Schrader also made progress in business development in all
other areas, albeit not to the extent expected.
In particular, the completion of the NEXT AUDIENCE Platform was delayed by about six months over the course of the finan-
cial year. Although the software was completed at the end of August 2014 and has been running stably in pilot operation
since then, the delay has had a negative impact on the Group’s development, both on the revenue side and on the cost side.
In spite of these effects, SinnerSchrader exceeded the original earnings forecast in the year of the report, once again
crossed the € 3-million threshold with the EBITA for the first time since the boom year of 1999/2000 and earned net
income of just under € 1.84 million.
development of the marKet environmentThe good development of business at Sinner Schrader was not least made possible by the positive economic situation and
future expectations in Germany in the period of the 2013/2014 financial year. One conclusion from the difficult 2012/2013
financial year was that the development of the digital economy has become more dependent on the general economy as
it increasingly matures. The economic high at the end of 2013 and in the first months of 2014 as well as the resulting high
tendency among German companies to invest also pushed forward demand for services from digital agencies.
However, after the Federal Statistical Office announced in mid-August 2014 that the gross domestic product in the second
calendar quarter of 2014 had fallen by 0.2 % adjusted by price, seasonal and calendar effects in comparison to the first
calendar quarter, the economic mood and expectations in Germany shifted. Negative news from the German economy,
such as the biggest monthly fall in industrial production since January 2009 by 4 % in August 2014, mounted up. As a con-
sequence, the forecasts for growth of the German gross domestic product in 2014 and the prospect for 2015, which had
only been raised in spring 2014, were scaled back. In their autumn 2014 joint diagnosis, leading economic institutes re-
duced their growth expectations for 2014 from 1.9 % to 1.3 % in spring 2014 and for 2015 from 2.0 % to just 1.2 %. After
their highs in April and June 2014, the ifo business climate index and the GfK consumer climate index have also indicated
a marked downturn in the economic situation in recent months.
Against this background, the report from the Federal Statistical Office on the first figures for the third calendar quarter of
2014 brought about a degree of stabilisation; prior to publication a further fall in the gross domestic product adjusted
by price, seasonal and calendar effects had been deemed to be possible. According to these figures, the gross domestic
product in the third quarter of 2014 rose again slightly by 0.1 % in comparison to the previous quarter. In comparison
to the same quarter of the previous year, this means growth of 1.2 %, without taking account of seasonal and calendar
effects. The figures for the second quarter were also adjusted slightly upwards to a negative of only 0.1 % from one quar-
ter to the next.
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The development of the forecasts of the Circle of Online Marketers (OVK) in the German Association of the Digital Economy
for net investments in digital display advertising and the German Distance Selling Trade Association (bvh) for the online
trade in goods for 2014 shows that the development of the economy in general is also affecting the digital economy.
In the first half of September 2014 the OVK reduced its growth forecast from the spring for digital display advertising by
1.6 percentage points to 6.8 %. The forecast adjustment from the bvh was even more marked: Whereas the Association
had assumed growth in the online trade of goods of 24.8 % at the start of the year, according to a press release from
the end of October 2014 it now foresees only a single-digit growth rate for 2014. Furthermore, at the end of October 2014,
the magazine “iBusiness” reported the autumn figures of the “interactive business climate” survey that it conducts and
estimated that growth in the interactive agency sector would fall sharply.
BuSineSS forecaSt for 2014/2015Against this background, Sinner Schrader is assuming a difficult market environment for the 2014/2015 financial year in
its forecast, especially since, at the time of reporting, no clear solutions are emerging to the international political crises
that are one of the main causes for the deterioration of economic development in Germany.
In Sinner Schrader’s estimation this market environment will have a noticeable negative impact on the growth dynamism
of the Group in the 2014/2015 financial year, even though no strong downwards trend in the budgets of existing clients
has become noticeable in the first weeks of the financial year and the sales pipeline is well filled.
However, Sinner Schrader still sees less economically sensitive subject areas, for example “digital transformation”, i.e.
orienting a whole company for the world that has been changed completely by the Internet, mobile communication and re-
lated technical innovations. Company managements are currently paying a great deal of attention to this subject. In its art-
icle on the interactive business climate, “iBusiness” also referred to digital transformation as an interesting field of growth.
By staffing the strategic department at management level and expanding the strategy unit in the Sinner Schrader agency,
Sinner Schrader became active in this field as early as the 2012/2013 financial year and has already attracted renowned
major clients with its offer.
Furthermore, Sinner Schrader sees development fields that are less vulnerable to changes in the economy in the field of
new mobile technologies, such as wearables and iBeacons, and in the challenge faced by all companies to make their
advertising budgets as efficient as possible with the use of intelligent technologies.
Overall, Sinner Schrader is expecting a clear weakening in growth dynamism for the 2014/2015 financial year and is cur-
rently assuming that it will safely pass the € 50-million threshold in revenue due to organic development of the segments
and achieve net revenue of more than € 51 million. This would correspond to a growth rate of at least 5 %.
The operating result, EBITA, should improve disproportionately more and be between € 3.5 million and € 4.0 million, which
corresponds to growth of between 14 % and 30 % over the EBITA achieved in 2013/2014. The operating margin will thus
improve to a value between 6.9 % and 7.8 %.
This forecast for the Sinner Schrader Group assumes growth in the order of 6.5 % for the Interactive Marketing segment.
After the brilliant growth in the 2013/2014 financial year, the plan assumes a consolidation of revenues at the level
achieved with a slight increase of a good 5 % in the Sinner Schrader agency. In addition to continuing good business with
new clients, Sinner Schrader is expecting a slight fall in business with existing clients since some large initial projects
will pass over into ongoing maintenance as scheduled. On the basis of a market campaign on “Connected Services” and
increased cross-selling efforts across the Group’s client portfolio, a markedly stronger growth in the order of 19 % is
expected for Sinner Schrader Mobile. Following the slight fall in 2013/2014 due to growth, in the 2014/2015 financial year
the operating margin in this segment should rise back to over 12 %, mainly as a result of a margin improvement in the
Sinner Schrader agency brought about by reducing the number of freelancers, among other things.
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A fall in revenue of between 15 % and 20 % is assumed for the Interactive Media segment in the overall forecast. Thanks
to the establishment of the content marketing business, a strong rise in revenue was achieved in the 2013/2014 financial
year. Because of the innovativeness of the approach pursued by Sinner Schrader Content GmbH, revenue planning broadly
starts from the assumption of the current binding, fixed business volumes even if promising sales approaches are being
pursued. By contrast, revenue growth in the order of 28 % on the basis of the initial success in the marketing of the NEXT
AUDIENCE Platform is expected in the business of mediaby GmbH and NEXT AUDIENCE GmbH, which have been merged
since the start of the 2014/2015 financial year. Because of the assumed elimination of contribution to earnings from
content marketing business, the operating result of the segment has contributed a negative development to the overall
forecast. It must be borne in mind that the capitalised development costs for the NEXT AUDIENCE Platform of € 0.9 million,
starting with the 2014/2015 financial year are depreciated over three years, which alone accounts for more than the
forecast decline in income of the segment of approx. € 0.25 million. Break-even will not yet be achieved in the 2014/2015
financial year by NEXT AUDIENCE GmbH newly formed through the merger with mediaby GmbH.
In the Interactive Commerce segment Sinner Schrader is aiming for revenue growth of between 10.5 % and 11 % in the
2014/2015 financial year, assuming stable business with existing clients and revenues with new clients at around the
level achieved in 2013/2014. As far as the margin is concerned, improvement to just under 7 %, which in particular is to
be brought about by increasing the real net output per employee, is planned.
The overall positive operating development in the 2014/2015 financial year will be fully reflected in the development of
the net income. There will be no amortisation charges with the assumed solely organic development in the 2014/2015
financial year, the financial result is expected to still be neutral and the tax rate is predicted to be constant. As a result, for
2014/2015 Sinner Schrader is expecting net income between € 2.2 million and € 2.5 million or between € 0.19 and € 0.22
per share.
Even in the event that the establishment of audience management business fails, Sinner Schrader expects that the rev-
enue and operating result of the Group will not fall below the level achieved in the 2013/2014 financial year.
The development of revenue and income planned for the Group will also have a positive effect on the development of the
annual profit of the AG. The planned development of earnings in the Sinner Schrader agency and in the Interactive Com-
merce segment will have a direct effect on the AG by way of the existing profit and loss transfer agreements. Provided
that the results achieved in the 2014/2015 financial year do not deviate too far downwards from the plans, the valuations
of AG’s shares in subsidiaries are unlikely to give rise to further depreciations. Based on these assumptions, Sinner-
Schrader is expecting an annual profit of more than € 2.0 million for the 2014/2015 financial year. In the event that the au-
dience management business fails, an equity interest value in NEXT AUDIENCE GmbH of € 1.0 million as at 31 August
2014 would need to be depreciated. Sinner Schrader is planning to pay a dividend for 2014/2015 from the annual profit
expected in the 2014/2015 financial year.
For the following year of 2015/2016, Sinner Schrader is aiming for revenue growth of 10 % or more again as well as an
operating margin in the order of 10 % – assuming that there is a conducive economic climate in Germany. The break-even
point should be achieved in the NEXT AUDIENCE GmbH before depreciation of the software.
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9 riSKS and opportunitieS of future BuSineSS development
In its business, Sinner Schrader is subject to many risks which could have a negative impact on the Group’s and the
AG’s asset, financial, and income situation or could result in Sinner Schrader failing to meet the goals it has set for future
business development.
It is necessary to take risks when engaged in entrepreneurial activity aimed at earning profits. To ensure that the success
is sustainable, it is important to manage these risks. On the one hand, this means evaluating them for probability of oc-
currence and the possible impact on the asset, financial, and income situation and continuously monitoring them. On the
other hand, it means identifying measures with which risks can be limited or avoided and – with regard to the Group’s
own core expertise, financial strength, and the costs of the relevant measures – defining which limitation or avoidance
measures can be taken and to what extent for which risks.
9.1 Key featureS of the internal control and riSK management SyStem with reSpect to the (group) accounting proceSS purSuant to articleS 289 para. 5 and 315 para. 2 no. 5 of the german commercial code
In managing the Group, it is one of the key tasks of the Management Board to define general conditions and processes for
risk management for the Sinner Schrader Group, to monitor compliance with them, and to regularly analyse the develop-
ment of the risks in each division with the managers of the operating units and administrative divisions.
In principle, Sinner Schrader’s risk management system also aims to secure the shareholders’ equity base for the long
term and achieve an appropriate return on invested capital. The Group strives for a high shareholders’ equity rate in order
to guarantee the independence and competitiveness of the Company and the continued existence of the operative com-
panies, and to finance both organic and inorganic growth.
The Sinner Schrader Group’s risk management system and the risk profiles of the individual divisions are documented in
a risk manual. An employee from the financial division of the AG has been appointed the Group’s risk commissioner and
has been commissioned to subject the specified risk management system to regular internal evaluation and to document
the results in a risk report to the Management Board at least once a year. Furthermore, it is the task of the risk commis-
sioner to randomly analyse individual divisions on behalf of the Management Board with regard to how far the specified
measures to limit or avoid risks are being implemented.
It is the responsibility of the managers of the individual divisions to continuously monitor and manage the risks in
their own divisions. If there is a significant increase in the degree of individual risks above a specified threshold, they are
required to report it immediately to the Management Board.
Good risk management depends on quickly and reliably providing information to the management about the course of
business. To this end, Sinner Schrader has set up a controlling and reporting system which reports on a monthly basis on
the development of key business data in the individual divisions and on the financial results.
The risk management system of the Sinner Schrader Group also comprises the accounting-related processes in the man-
aging AG and in the subsidiaries included in the Consolidated Financial Statements. The aim is to use principles, proced-
ures and controls to ensure financial statements that conform with the rules and to prevent major misstatements within
the context of external reporting.
Risk management in the accounting process is based on uniform balance sheet rules across the Group, compliance with
which is regularly monitored by the central controlling and accounting divisions located within Sinner Schrader AG. Fur-
thermore, a central bookkeeping system based on Microsoft Dynamics NAV has been implemented and is managed and
posted to by the central accounting department. As at 31 August 2014, all operatively active companies were incorporated
in this central bookkeeping system.
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Another key aspect of the accounting-related risk management system is the drawing up of monthly financial statements
that are the basis for a monthly reporting system across all business units and companies. In addition to a representation
of the monthly figures and the cumulative figures for the current financial year, the monthly reports include an updated
forecast for the year as a whole. Furthermore, they include comparisons to the plan and the previous year and the most
recent forecast with respect to the key figures in the Statements of Operations and to the key operative indicators.
The reports are the starting point for review talks taking place once a month between the Management Board of Sinner-
Schrader AG and the heads of the relevant unit and/or company. These talks are prepared by the central Controlling
department and are used for the explanation of the key developments in the course of business and thus for validating
the monthly figures.
Close interaction between central controlling and the accounting system is also a factor in risk management in the
accounting process. Figures for the individual companies, parts of the Group and the Group as a whole must correspond
to the figures posted in each case.
In order to ensure that the accounting system always complies with statutory requirements, the employees in the
accounting department regularly take part in internal or external training. Furthermore, complex and new states of affairs
and processes of major importance are subjected to an audit by the official auditors during the year with respect to
correct representation in the books of the Company concerned and the Group; if necessary, Sinner Schrader AG will also
avail itself of the expertise of other specialists.
The cornerstones of the accounting-related control system are appropriate access rules and booking authorisations for
the bookkeeping system and the application of a strict dual-control principle as the most important control instrument.
Furthermore, internal guidelines are used to instigate payments and to invest liquid funds to ensure the company assets.
9.2 riSKS
The following shows significant risks affecting the future development of the income, financial and assets status of the
Sinner Schrader Group. They also have a direct effect on Sinner Schrader AG by way of the profit and loss transfer agree-
ments and the participating interests.
The risk profile of the Sinner Schrader Group as at 31 August 2014 had not changed fundamentally with respect to the
major risk fields against the status as at 31 August 2013. With regard to the 2014/2015 financial year, Sinner Schrader
estimates that the following risk fields have become relevant:
• The dimension of the projects and budgets for which the services of Sinner Schrader are required has increased percep-
tibly. The risk of delivering and supervising required services in a good quality for a reasonable margin, despite possible
commitments to fixed prices, increases with the scale of projects.
• The risk of dependence on major individual clients will be higher when these clients are involved in a merger process or
are currently undergoing a process of reconstruction. The takeover of one of Sinner Schrader’s major clients was com-
pleted in October 2014.
In view of the growth and the continued expansion of the business activities, other risks remain highly significant. These
are the risks associated with the management of acquired subsidiaries, the management of locations – with the location
in Prague this has included a country abroad – and the management of complexity.
Furthermore, NEXT AUDIENCE GmbH remains a business segment with opportunities and risks which are especially
challenging for Sinner Schrader due to its business model of a software product company unlike one that is based on an
agency. The decision to develop new audience management software on the basis of the existing n7 adserving software is
an opportunity to make NEXT AUDIENCE GmbH profitable in the long term. However, it does bear the risk of the software
program failing to meet the expectations placed on it and/or of success on the market not materialising. In the event of
the risk arising, investments made in the development of NEXT AUDIENCE GmbH will have essentially been lost. However,
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since the investments at Group level and in the separate financial statements of the AG had all been processed in recog-
nition of profit or loss, apart from around € 1.0 million as of 31 August 2014, the consequences of failure for the income
and assets status would be limited. Other risks could, however, lie in damage to the reputation of the Sinner Schrader
brand or in the dissatisfaction of existing NEXT AUDIENCE GmbH clients, with whom Sinner Schrader also does business
elsewhere.
In the following, individual risk areas identified as being important will be explained in more detail. This selection of risks
does not mean that there can be no significant impact on the asset, financial, and economic situation of Sinner Schrader
from other risks that have not been mentioned.
economic riSKSThe general economic development influences the volume of investments in IT and Internet services as well as expend-
iture on online marketing and supporting services. A deterioration in the economic situation could reduce the market
volume addressed by Sinner Schrader with regard to quantity and price. The measures for capacity adjustment which are
necessary as a reaction to such a development may be effective only with a time lag and would lead to costs for restruc-
turing measures. From the development of the 2012/2013 financial year, Sinner Schrader has concluded that demand for
its services has become more sensitive to the economic situation.
competitionCompetition in the market for Internet services is still intensive. The market is fragmented and the number of competitors
high. Furthermore, new providers with a wider service portfolio and international business activities are crowding onto
the market. Besides, major international advertising networks and major system integrators and IT consulting firms have
intensified their activities on the market on which Sinner Schrader sells its services. The future development of Sinner-
Schrader largely depends on how well the Company succeeds in holding its own on the market with adequate prices for
its services.
The extent to which the procurement of programming services in emerging nations becomes more important for com-
petitiveness in relation to the individual developments offered by Sinner Schrader is also significant in this context. At its
office in Prague, Sinner Schrader currently only has limited access to relevant sources and would only be able to establish
or expand these, if required, with a delay. Bigger competitors with an international market presence already have relevant
structures or would be able to establish them more quickly.
operational riSKSIn the 2013/2014 financial year, Sinner Schrader earned around 21 % of its net revenues with one client; the ten biggest
clients together accounted for around 71 % (previous year: 62 %) of the net revenues. It would only be possible to compen-
sate for the loss of the business of these important clients after a considerable period of time, if at all, during which it
would not be possible to reduce costs correspondingly.
Since the revenues of the Group are not usually secured by long-term contracts, but instead largely come about on the
basis of individual orders for a limited period, revenue plans are subject to a high degree of uncertainty. The orders on
hand generally do not significantly exceed a quarterly revenue.
Sinner Schrader processes a major part of its revenues within the framework of fixed price agreements. Because of the
complexity and the high technical demands, costs originally calculated may be exceeded, resulting in unplanned losses.
Furthermore, Sinner Schrader assumes standard guarantee and liability stipulations within the framework of project con-
tracts which can result in considerable follow-up costs for individual projects.
Some of the projects that Sinner Schrader has completed for renowned clients are associated with a considerable effect
on the public. Quality deficits in the provision of services, especially those that enable unauthorised access to personal
data, can result in a negative external impact that would greatly impair the sale of services and thus the future develop-
ment of the business. The measures taken to reduce the risk include internal programming standards, not least those
concerning security matters, reviews of software and system architectures by an IT security specialist, and penetration
tests carried out by external service providers as part of quality management.
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Within the context of providing its services, Sinner Schrader sometimes has access to the personal data of its clients’ cus-
tomers. This data could be abused as a result of deliberate or negligent acts by its employees. In addition to the directly
resultant damage, if such an incident were to become known, the associated loss of confidence in Sinner Schrader would
make the sale of its services much more difficult. Sinner Schrader addresses this risk with appropriate access restrictions
and operating and authorisation concepts, which are subject to regular review by the internal IT security commissioner
and the data protection commissioner.
In the Interactive Commerce segment, Sinner Schrader offers to develop, maintain, and operate online sales channels for
companies in return for a share of the revenues; this service includes fulfilment, payment transactions, customer care,
and, where appropriate, online marketing. Since development and start-up costs are at least partly to be borne by Sinner-
Schrader, contracts lasting several years are concluded with clients, so that Sinner Schrader can cover its initial invest-
ment and generate a positive total return from the project during the course of the contract. Negative developments on
the part of the client, e.g. a deterioration in the perception of the brand, a deterioration in the relative competitive position
of the client in its industry or a bankruptcy can mean that Sinner Schrader cannot earn back its initial investment with an
adequate return.
perSonnel riSKSThe success of Sinner Schrader is heavily dependent on the qualification and motivation of its staff. Particular importance
is attached to some employees in key positions. If Sinner Schrader does not succeed in attracting and retaining enough
qualified specialists and talented young staff at adequate costs, its further growth and success could be severely impaired.
technological riSKSThe market for IT and Internet services is characterised by rapid change in the basic technologies used and by a level
of standardisation which remains low. The future market success of Sinner Schrader depends on the extent to which the
breadth and depth of the technological expertise can be kept at an adequate level and technological dead-ends can be
avoided in view of the high employee orientation costs, with limited resources.
In the business segment of NEXT AUDIENCE GmbH and with the NEXT AUDIENCE Platform, Sinner Schrader has developed
a product for audience management, which is still only just beginning to establish itself in Germany. There is a risk of the
software not being accepted on the market or not being accepted at reasonable prices for NEXT AUDIENCE GmbH. Even
though the core development of the software was completed in the 2013/2014 financial year, and the software is in the
pilot operation phase, the risk remains that it will ultimately prove not to be effective or efficient in terms of its intended
purposes. In either case, the investments in developing software, in establishing the brand and in the current NEXT AUDI-
ENCE client base, which have in fact mostly already been recognised in the profit or loss, would be lost.
Sinner Schrader focuses the NEXT AUDIENCE offer on advertisers, who become more independent in the control of
their online media expenses with the help of the software. The software thus offers advertisers the possibility to review
their relationship with media agencies. This strategy could result in media agencies considering market success for
the NEXT AUDIENCE Platform to be a risk that they must seek to prevent.
Keeping this product competitive in the long term requires annual development expenditure of a considerable level. It is
decisive to the success of the product on the market that these further developments satisfy market needs in terms of
content and time. If this is not successful, the preliminary development work could no longer be covered by income from
marketing.
Competitors in this market have bigger development teams, more financial resources, and maybe also the opportunity
to position their product with an attractive price due to cross-subsidies. If Sinner Schrader does not succeed in establishing
an adequate cost-benefit ratio by means of differentiation, preliminary development work may not be covered.
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r iSKS from acquiSitionSSinner Schrader is also interested in expanding its market position in Germany through targeted acquisitions. The success
of acquisitions will depend on whether it is possible to integrate the acquired companies into the Group structure, and
achieve intended strategic goals and synergies. In this context, acquisitions in the field of professional services entail the
particular risk that the expertise, market knowledge, and client relations which are being acquired are rarely permanently
tied to the acquired company. Unsuccessful integration can therefore quickly lead to the need for considerable deprecia-
tion or even a total loss of the investment.
compleXity riSKSIn recent years Sinner Schrader has grown rapidly both organically and through acquisitions. Although the administrative
structures have also been expanded, there is a risk that the Sinner Schrader Group will not promptly recognise undesir-
able developments in an area or will underestimate them because of the increased size and complexity of the Group. The
undesirable development itself or the subsequent effort to remedy it can lead to considerable unplanned expenses.
default and liquidity riSKSLiquidity risks exist in the case of potential shortages of financial resources and the resulting increase in refinancing
costs. The aim of liquidity management at Sinner Schrader is to secure its ability to pay at all times, in compliance with
agreed terms of payment, by means of a sufficient amount of liquid funds. The Group monitors this amount of liquid
funds, and only the available liquidity which is not considered to be necessary to balance fluctuation in the cash flow is
invested on a somewhat longer term basis. Furthermore, when making a more long-term investment, it is ensured that
the investment is made in securities than can be sold again at any time. Credit lines of € 2 million and € 2.5 million,
respectively, were agreed with two banks in order to avoid shortages of liquidity in the short term; they had, however,
not been utilised on the reporting date.
On the one hand, credit risks arise for Sinner Schrader because services are generally billed after the rendering of a
service with clients being granted the agreed as payment terms, and subsequently failing to meet the resulting payment
obligations. Sinner Schrader limits this risk by subjecting new clients to a regular credit assessment and by regularly
monitoring clients’ outstanding payment obligations.
On the other hand Sinner Schrader is subject to credit risks through holding liquid funds available as credits with banks
and investing these liquid funds on the capital market. Sinner Schrader limits this risk by its choice of banking partners,
doing business with several banks and restricting the credit rating of the investment instruments to a minimum credit
rating of BBB or A3 for short-term investments.
The maximum failure rate results from the book values of the financial assets posted in the balance sheet or from the
current values of the securities posted. Sinner Schrader held no securities as at 31 August 2014.
riSK of changeS in marKet priceSCurrency risks: Sinner Schrader invoices almost all its revenues in euros, its suppliers mainly issue their invoices in euros,
and the Company does not hold any notable assets in foreign currencies, so there are no significant foreign-currency
risks for the Group.
Interest-rate risks: Sinner Schrader currently has no substantial interest-bearing financial liabilities and nor had
the Company made any interest-bearing investments on the balance sheet date. There are thus no significant interest-
rate risks.
Exchange-rate risks: Sinner Schrader holds no shares in other listed companies. Neither does SinnerSchrader
purchase any raw materials on markets with formations of the market price. There are thus no exchange-rate risks
at Sinner Schrader.
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9 .3 opportunitieS
The risks are countered by opportunities, and Sinner Schrader could exceed its goals if they occur. The main opportunities
lie with existing clients, the “Sinner Schrader” brand name, the positive signals for the development of the companies
taken over, and the performance of some key members of staff, especially those with sales and customer-care tasks.
Above and beyond what is assumed in the plans, these factors could result in the acquisition of large new high-potential
clients or currently unforeseeable individual orders from existing clients.
A special opportunity lies in the development of the position of digital agencies in the market for marketing and advertis-
ing services. Because of their growing importance, digital agencies could take on a leading role among companies with
respect to their marketing and advertising services and replace the service providers currently established there in
the coming years. As a result, higher order volumes, longer-term client relationships, and overall higher margins could
be possible for Sinner Schrader.
The consistently pursued expansion of the business portfolio in the past few years could result in sales synergies in
excess of the scope currently assumed in planning, and contribute towards extending the client base.
Sinner Schrader reconstructed the content marketing business segment in the 2013/2014 financial year, giving it its own
editorial team and its own infrastructure. The team has already made an appreciable contribution to the revenue and
profits of the Group in its first year. Plans for the Group to date contain only very limited forecasts for the development
of this new segment. A response from the market to the range of services developed by Sinner Schrader would create
opportunities for the Group to increase its revenue and profit.
A rising demand for the services offered by Sinner Schrader alone could result in Sinner Schrader being able to achieve
higher prices on the market than assumed in the plans.
If Sinner Schrader achieves a faster breakthrough than assumed on the relatively new audience management market
with the NEXT AUDIENCE Platform, NEXT AUDIENCE could reach the break-even point faster and develop to become
sustainably profitable. The success of the technology on the market would generate value for the Group as a whole, since
this could have a positive effect on margin ratios.
Moreover, successful acquisitions could bring about considerable positive change to the planned development, since the
forecasts are based only on an organic development of the companies in the Sinner Schrader Group.
The past two financial years – 2012/2013 and 2013/2014 – have shown that risks and opportunities can occur and cause
considerable negative and positive deviations from planned assets, income and financial targets. Generally, on the basis of
available information, at present no risks can be discerned which would put the continued existence of the Sinner Schrader
Group or Sinner Schrader AG at risk. The asset and financial situation of the Group remains stable.
The speed at which the digitisation of companies, particularly in the marketing sector, is progressing, and at which com-
panies and their range of products and services are changing is still high. This will also result in many opportunities in
future, in spite of all the risks. Sinner Schrader continues to see itself as being well-positioned and well-equipped to use
these opportunities with a focus on the positive development of the Company.
Hamburg, 17 November 2014
The Management Board
Matthias Schrader Thomas Dyckhoff
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01
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sInnerschradergRoup2013 / 2014
022–057
060–113
116–139
142–143
Joint StatuS report
conSolidated financial StatementS
annual financial StatementS
further information
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BaLance SheetSaS at 31 auguSt 2014
Assets in € noteS 31.08.2014 31.08.2013
Current assets:
Liquid funds 2.11 5,832,597 4,949,325
Marketable securities 4.6 — 1,000,000
Cash and cash equivalents 5,832,597 5,949,325
Accounts receivable, net of allowances for doubtful accounts of € 55,625 and € 59,290
as at 31.08.2014 and 31.08.2013, respectively 2.9 / 4.3 9,904,203 6,751,167
Unbilled revenues 4.3 4,556,459 2,919,564
Tax receivables 4.4 15,865 240,610
Other current assets and prepaid expenses 4.5 1,113,398 605,256
Total current assets 21,422,522 16,465,922
Non-current assets:
Goodwill 4.1 4,028,740 4,028,740
Other intangible assets 4.1 1,107,758 620,808
Property and equipment 4.1 1,902,187 1,770,872
Tax receivables 4.4 89,938 110,488
Total non-current assets 7,128,623 6,530,908
Total assets 28,551,145 22,996,830
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Liabilities and shareholders’ equity in € noteS 31.08.2014 31.08.2013
Current liabilities:
Trade accounts payable 2.13 4,547,841 3,290,956
Advance payments received 4.3 1,660,965 1,538,112
Accrued expenses 4.10 4,520,738 3,330,828
Tax liabilities 4.9 545,264 112,851
Other current liabilities and deferred income 4.11 2,502,083 1,957,842
Total current liabilities 13,776,891 10,230,589
Non-current liabilities:
Deferred tax liabilities 5.5 698,880 719,018
Total non-current liabilities 698,880 719,018
Shareholders’ equity:
Subscribed capital
Common stock, stated value € 1, issued: 11,542,764 and 11,542,764, outstanding: 11,235,858 and 11,122,612 as at
31.08.2014 and 31.08.2013, respectively 4.8 11,542,764 11,542,764
Treasury stock, 306,906 and 420,152 as at 31.08.2014 and 31.08.2013, respectively 4.8 –537,778 –730,252
Additional paid-in capital 4.8 3,654,636 3,669,974
Reserves for share-based compensation 4.8 260,077 252,271
Accumulated deficit (incl. revenue reserves) 4.8 –869,487 –2,712,724
Changes in shareholders’ equity not affecting net income 4.8 25,162 25,190
Total shareholders’ equity 14,075,374 12,047,223
Total liabilities and shareholders’ equity 28,551,145 22,996,830
The accompanying notes are an integral part of these Consolidated Financial Statements.
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conSoLIdated StatementS oF operatIonS from 1 SeptemBer 2013 to 31 auguSt 2014
in € noteS 2013/2014 2012/2013
Gross revenues 2.17 51,355,139 41,262,826
Media costs –2,754,566 –4,861,608
Total revenues, net 48,600,573 36,401,218
Cost of revenues –37,168,010 –27,659,004
Gross profit 11,432,563 8,742,214
Selling and marketing expenses –3,457,660 –3,932,315
General and administrative expenses –4,771,114 –4,137,408
Research and development expenses 2.19 –355,624 –357,240
Other income and expenses, net 5.3 134,037 97,464
Operating income 2,982,202 412,715
Financial income 5.4 16,660 51,740
Financial expenses 5.4 –9,107 –22,187
Income before provision for income tax 2,989,755 442,268
Income tax 5.5 –1,146,518 –440,981
Net income 1,843,237 1,287
Net income attributable to the shareholders of Sinner Schrader AG 1,843,237 1,287
Net income per share (basic) 0.17 0.00
Net income per share (diluted) 0.16 0.00
Weighted average shares outstanding (basic) 11,140,220 11,137,972
Weighted average shares outstanding (diluted) 11,254,075 11,137,972
The accompanying notes are an integral part of these Consolidated Financial Statements.
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conSoLIdated StatementS oF comprehenSIve Income from 1 SeptemBer 2013 to 31 auguSt 2014
in € noteS 2013/2014 2012/2013
Net income 1,843,237 1,287
Other comprehensive income
Items that may be reclassified to profit or loss in future periods
Adjustment of balancing item from currency conversion of foreign subsidiaries –28 122
– thereof taxes on income recognised directly in shareholders’ equity — —
Changes in shareholders’ equity not affecting net income –28 122
Consolidated comprehensive income 1,843,209 1,409
Comprehensive income attributable to the shareholders of Sinner Schrader AG 1,843,209 1,409
The accompanying notes are an integral part of these Consolidated Financial Statements.
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conSoLIdated StatementS oF SharehoLderS’ eqUItY from 1 SeptemBer 2013 to 31 auguSt 2014
in € noteS numbeR of ShAReS outStAnding
common Stock tReASuRy Stock AdditionAl pAid-in cApitAl
ReSeRveS foR ShARe-bASed compenSAtion
RetAined eARningS/loSSeS
otheR compRehenSive income
totAl ShAReholdeRS’ eQuity
Balance as at 31.08.2012 11,195,358 11,542,764 –604,927 3,669,974 213,768 –2,714,011 25,068 12,132,636
Comprehensive income — — — — — 1,287 122 1,409
Deferred compensation 4.8 — — — — 38,503 — — 38,503
Purchase of treasury stock 4.8 –72,746 — –125,325 — — — — –125,325
Balance as at 31.08.2013 11,122,612 11,542,764 –730,252 3,669,974 252,271 –2,712,724 25,190 12,047,223
Comprehensive income — — — — — 1,843,237 –28 1,843,209
Deferred compensation 4.8 — — — — 7,806 — — 7,806
Purchase of treasury stock 4.8 –36,754 — –70,364 — — — — –70,364
Re-issuance of treasury stock 4.8 150,000 — 262,838 –15,338 — — — 247,500
Balance as at 31.08.2014 11,235,858 11,542,764 –537,778 3,654,636 260,077 –869,487 25,162 14,075,374
The accompanying notes are an integral part of these Consolidated Financial Statements.
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conSoLIdated StatementS oF SharehoLderS’ eqUItY from 1 SeptemBer 2013 to 31 auguSt 2014
in € noteS numbeR of ShAReS outStAnding
common Stock tReASuRy Stock AdditionAl pAid-in cApitAl
ReSeRveS foR ShARe-bASed compenSAtion
RetAined eARningS/loSSeS
otheR compRehenSive income
totAl ShAReholdeRS’ eQuity
Balance as at 31.08.2012 11,195,358 11,542,764 –604,927 3,669,974 213,768 –2,714,011 25,068 12,132,636
Comprehensive income — — — — — 1,287 122 1,409
Deferred compensation 4.8 — — — — 38,503 — — 38,503
Purchase of treasury stock 4.8 –72,746 — –125,325 — — — — –125,325
Balance as at 31.08.2013 11,122,612 11,542,764 –730,252 3,669,974 252,271 –2,712,724 25,190 12,047,223
Comprehensive income — — — — — 1,843,237 –28 1,843,209
Deferred compensation 4.8 — — — — 7,806 — — 7,806
Purchase of treasury stock 4.8 –36,754 — –70,364 — — — — –70,364
Re-issuance of treasury stock 4.8 150,000 — 262,838 –15,338 — — — 247,500
Balance as at 31.08.2014 11,235,858 11,542,764 –537,778 3,654,636 260,077 –869,487 25,162 14,075,374
The accompanying notes are an integral part of these Consolidated Financial Statements.
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conSoLIdated StatementS oF caSh FLowS from 1 SeptemBer 2013 to 31 auguSt 2014
in € noteS 2013/2014 2012/2013
Cash flows from operating activities:
Net income 1,843,237 1,287
Adjustments to reconcile net income to net cash used in operating activities:
Amortisation of intangible assets from first consolidation 4.1 82,181 268,234
Depreciation of property and equipment 4.1 793,628 749,440
Share-based compensation 7 7,806 38,503
Bad debt expenses 2.9 226,461 845
Gains/losses on the disposal of fixed assets 5.3 10,045 31,145
Deferred tax provision 5.5 –20,138 285,670
Changes in assets and liabilities:
Accounts receivable 2.9 –3,379,498 290,630
Unbilled revenues 4.3 –1,636,895 –551,809
Tax receivables 4.4 245,295 –174,413
Other current assets 4.5 –508,142 –64,400
Accounts payable, deferred revenues and other liabilities 4.11 2,230,325 2,391,937
Tax liabilities 4.9 432,413 –325,195
Other accrued expenses 4.10 1,189,910 –502,704
Net cash provided by (used in) operating activities 1,516,628 2,439,170
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in € noteS 2013/2014 2012/2013
Cash flows from investing activities:
Purchase price payments for acquisition of subsidiary companies in previous years 2.3 –306,346 –92,557
Purchase of property and equipment 4.1 –1,513,491 –1,489,027
Proceeds from the sale of equipment 4.1 9,373 20,345
Acquisition of capital investments in the context of cash management 4.6 1,000,000 500,000
Net cash provided by (used in) investing activities –810,464 –1,061,239
Cash flows from financing activities:
Payment for treasury stock 4.8 –70,364 –125,325
Incoming payment for treasury stock 4.8 247,500 —
Net cash provided by (used in) financing activities 177,136 –125,325
Net effect of rate changes on cash and cash equivalents –28 122
Net increase/decrease in cash and cash equivalents 883,272 1,252,728
Cash and cash equivalents at beginning of period 4.7 4,949,325 3,696,597
Cash and cash equivalents at end of period 4.7 5,832,597 4,949,325
thereof back-up of bank guarantees 4.13 451,575 451,575
The accompanying notes are an integral part of these Consolidated Financial Statements.
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noteS on the 2013/2014 financial year
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1 general foundationS and BuSineSS activitieS of the company
The Consolidated Financial Statements of Sinner Schrader Aktiengesellschaft (hereinafter referred to as “Sinner Schrader
AG” or “AG”) and its subsidiaries (hereinafter referred to as “Sinner Schrader Group”, “Sinner Schrader” or “Group”) for
the 2013/2014 financial year were completed according to the International Accounting Standards (“IAS”) and the Inter-
national Financial Reporting Standards (“IFRS”) of the International Accounting Standards Board (“IASB”) in force in
the European Union (EU) on the reporting date of 31 August 2014, taking account of the interpretations of the International
Financial Reporting Interpretations Committee (“IFRIC”) and correspond to the supplementary requirements of
Article 315a of the German Commercial Code (“HGB”). The financial statements were prepared on a going concern basis.
The Consolidated Financial Statements as at 31 August 2014 were released by the Management Board for submission
to the Supervisory Board on 17 November 2014. The Consolidated Financial Statements will probably be approved at the
balance sheet meeting of the Supervisory Board on 24 November 2014; until the time of approval it is possible for the
Supervisory Board to amend the Consolidated Financial Statements.
The Sinner Schrader Group is a service company mainly active in Germany with its headquarters in Hamburg. With its
services, Sinner Schrader supports its clients in the use of digital technologies for marketing, especially the Internet. In
particular, Sinner Schrader provides the following services:
• Development, design, implementation and management of customised digital sales and marketing platforms and
other interactive IT systems
• Consulting on and the development, design and technical implementation of digital advertising, communication and
other marketing measures as well as measures for brand management
• Development, design and implementation of applications for mobile devices
• Technical operation and administration of digital marketing platforms and Internet-based IT systems
• Structuring, analysis, and preparation of data on the behaviour of users of interactive systems
• Planning and management of online marketing campaigns
• Provision and performance measurement of online advertising media via a software-as-a-service model
• Complete handling of set-up and management of online sales channels
• Planning and drafting concepts for marketing strategies on the Internet based on editorial content,
and their implementation in daily editing operations (“content marketing”)
The Sinner Schrader Group started its work in 1996. Sinner Schrader AG was founded in 1999 as a new managing parent
company and went public in the same year. The 11,542,764 shares issued in Sinner Schrader AG have all been approved
for trade in the regulated market’s Prime Standard segment of the Frankfurt Stock Exchange.
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2 preSentation of the main evaluation and Balancing methodS
2.1 financial year
The Consolidated Financial Statements of the Sinner Schrader Group refer to the financial years covering
1 September 2013 to 31 August 2014 (“2013/2014”) and from 1 September 2012 to 31 August 2013 (“2012/2013”) as
well as the reporting dates of 31 August 2014 and 31 August 2013, respectively.
2.2 new accounting principleS
The following new standards and interpretations or amendments to existing standards and interpretations were
applic able for the first time in the 2013/2014 financial year:
iAS/ifRS/ifRic new/Amendment content ApplicAtion dAte1)
IFRS 1 Amendment First-time Adoption of IFRS – Government Loans 1 January 2013
IFRS 1 Amendment First-time Adoption of IFRS – Severe Hyperinflation and Removal of Fixed Dates 1 January 2013
IFRS 7 Amendment Disclosures – Offsetting Financial Assets and Liabilities 1 January 2013
IFRS 13 New Fair Value Measurement 1 January 2013
IAS 12 Amendment Deferred Taxes – Recovery of Underlying Assets 1 January 2013
IAS 19 Amendment Employee Benefits 1 January 2013
IFRIC 20 New Stripping Costs in the Production Phase of a Surface Mine 1 January 2013
IFRS 1, IAS 1, IAS 16,
IAS 32, IAS 34 Amendment Annual Improvement Project 2009–2011 1 January 2013
1) The new or adapted standards must be applied for financial years beginning on or after the application date.
The first-time application of amendments to IFRS 1, IFRS 7, IAS 12, IAS 19 and the new IFRS 13 and IFRIC 20 had
no effects, or no significant effects on the representation of the income, financial and assets status of the Group, nor
were amendments as part of the Annual Improvement Project 2009–2011 relevant for Sinner Schrader accounting
and reporting.
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In previous years and in the 2013/2014 financial year, the IASB issued new standards and interpretations as well
as amendments to existing standards and interpretations, the adoption of which was, however, not mandatory in the
Consolidated Financial Statements for the 2013/2014 financial year:
iAS/ifRS/ifRic new/Amendment content ApplicAtion dAte1)
Published before the 2013/2014 financial year
IFRS 9 New Financial Instruments: Revising and Replacing all the Existing Standards – Classification and Measurement 1 January 2015
IFRS 10 New Consolidated Financial Statements 1 January 2014
IFRS 11 New Joint Arrangements 1 January 2014
IFRS 12 New Disclosure of Interests in Other Entities 1 January 2014
IFRS 10, IFRS 11,
IFRS 12 Amendment Transition Guidance 1 January 2014
IAS 27 New Equity Method in Separate Financial Statements 1 January 2014
IAS 28 (2011) New Investments in Associates and Joint Ventures 1 January 2014
IAS 32 Amendment Offsetting Financial Assets and Liabilities 1 January 2014
IFRS 10, IFRS 12,
IAS 27 Amendment Investment Entities 1 January 2014
IAS 36 Amendment Recoverable Amount Disclosures for Non-financial Assets 1 January 2014
IAS 39 Amendment Novation of Derivatives and Continuation of Hedge Accounting 1 January 2014
IFRIC 21 New Levies 1 January 2014
Published in the 2013/2014 financial year
IFRS 9 Amendment Financial Instruments – Revising and Replacing all the Existing Standards 1 January 2018
IFRS 11 Amendment Accounting for Acquisitions of Interests in Joint Operations 1 January 2016
IFRS 14 New Deferral Accounts 1 January 2016
IFRS 15 New Revenue from Contracts with Customers 1 January 2017
IFRS 10, IAS 28 Amendment Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1 January 2016
IAS 16, IAS 38 Amendment Clarification of Acceptable Methods of Depreciation and Amortisation 1 January 2016
IAS 16, IAS 41 Amendment Bearer Plants 1 January 2016
IAS 19 Amendment Defined Benefit Plans – Employee Contributions 1 July 2014
IFRS 2, IFRS 3,
IFRS 8, IFRS 13,
IAS 16, IAS 24,
IAS 38 Amendment Annual Improvement Project 2010–2012 1 July 2014
IFRS 1, IFRS 3,
IFRS 13, IAS 40 Amendment Annual Improvement Project 2011–2013 1 July 2014
IFRS 5, IFRS 7,
IAS 19, IAS 34 Amendment Annual Improvement Project 2012–2014 1 January 2016
1) The new or adapted standards must be applied for financial years beginning on or after the application date.
The application of some of the new standards/interpretations or their amendments presumes that they have been
adopted within the context of the EU’s IFRS endorsement procedure.
New standards/interpretations or amendments to existing standards/interpretations that have already been adopted by
the EU but are not yet mandatory are fundamentally not used prematurely by Sinner Schrader, even if the standard allows
for this. The effects of the first-time adoption of the regulations mentioned above on the consolidated asset, financial and
income situation of Sinner Schrader are currently being reviewed. Sinner Schrader does not, however, expect any resulting
significant effects on the representation of the income, financial and assets status of the Group.
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2 .3 conSolidation group
The consolidation group as at 31 August 2014 consisted of the AG as well as the following direct or indirect subsidiaries
of the AG, each of which was fully consolidated:
1. Sinner Schrader Deutschland GmbH, Hamburg, Germany
2. Commerce Plus GmbH, Hamburg (formerly next commerce GmbH), Germany
3. Commerce Plus Consulting GmbH, Hamburg, Germany
4. NEXT AUDIENCE GmbH, Hamburg, Germany
5. Sinner Schrader Content GmbH, Hamburg, Germany (formerly newtention services GmbH)
6. mediaby GmbH, Hamburg, Germany
7. Sinner Schrader Mobile GmbH, Berlin, Germany
8. Sinner Schrader Praha s.r.o., Prague, Czech Republic
9. Sinner Schrader UK Ltd., London, Great Britain
10. Sinner Schrader Benelux BV, Rotterdam, Netherlands
The consolidation group has changed as follows in comparison to the status on 31 August 2013:
Sinner Schrader content gmBhSinner Schrader Content GmbH resulted from the merger of Sinner Schrader Content GmbH, which was newly founded
in the financial year, and newtention services GmbH with a retroactive effect as at 20 November 2013 and a subsequent
change in the name of newtention services GmbH to “Sinner Schrader Content GmbH”. The shareholders’ meeting duly
decided on this on 16 July 2014. On 16 July 2014, the resolutions and contracts concerning a merger were notarised. The
merger was entered in the Commercial Register on 7 August 2014.
2.4 conSolidation principleS
All transactions and balances within the Group between affiliated companies were eliminated. The Consolidated Financial
Statements were prepared on the basis of the individual financial statements of the above-mentioned Group companies,
which are compiled according to the relevant local accounting regulations, in particular the regulations of the German
Commercial Code, with any necessary adjustments to IFRS being made. For the Consolidated Financial Statements, the
same balancing and evaluation principles were used as a basis for the same business incidents and events under similar
conditions.
For Sinner Schrader Benelux BV, interim financial statements were drawn up as at the reporting date of the parent com-
pany because it has a different financial year from its parent company. The financial statements of all other companies
included in the consolidation group are prepared according to the reporting date of the parent company. This is the same
as the Group reporting date.
2.5 report currency and currency converSion
The euro (€) is the functional currency of Sinner Schrader AG; it is also the Group’s report currency. The report is cited in
full euro amounts.
The functional currency of the foreign subsidiaries outside the euro zone – the group of European countries that
have introduced the euro as their currency – is the relevant national currency for legally and commercially independent
companies. The functional currency of legally independent but commercially dependent companies included in the
Consolidated Financial Statements is the euro.
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The financial statements of the foreign subsidiaries are converted into euros, with the assets and debts of the legally and
commercially independent subsidiaries being converted at the conversion rate of the balance sheet date and the sales
revenues, cost of sales revenues, expenditure and income being converted at the average rate for the financial year in
question as an approximation of the transaction rate. Accumulated currency profits and currency losses from foreign cur-
rency conversion for the Annual Financial Statements are reported as other profit. Monetary items in the financial state-
ments of companies considered to be economically dependent are converted as at the reporting date and non-monetary
items at the historic exchange rate. Items in the Statement of Operations are converted at the average rate as an approxi-
mation of the transaction rate. Exchange differences are recognised in the profit or loss.
Where relevant, currency profits and losses from foreign currency transactions are treated with an effect on profits.
2.6 eStimateS and aSSumptionS
Drawing up consolidated financial statements according to IFRS requires the management to make estimates and as-
sumptions that have an influence on the values posted for assets and liabilities and the information on contingent claims
and contingent liabilities on the balance sheet date and on the posted income and expenses for the period covered by the
report. The actual results may deviate from these estimates. Major estimates concern the application of the percentage-
of-completion (POC) method, the posting of accrued expenses, and the purchase price instalments which depend on the
future results of acquired business operations and companies.
An estimation of the degree of completion is particularly significant in the case of the POC method. In order to determine
the progress made, the costs for the contract as a whole, the remaining costs of completion, total contract revenues and
the contract risks must be estimated. Estimations in connection with such production orders are continuously verified and
adjusted if necessary.
Determining reserves for contingent liabilities is to a large extent based on estimations. The management bases estima-
tions of amounts for reserves on empirical values from similar transactions, taking account of all the indications from the
period up to the preparation of the Consolidated Financial Statements.
Contractually defined criteria are taken into account when purchase price obligations resulting from earn-out agreements
are valued. The corporate planning of the respective company is generally taken into account in this case. The actual
development of acquired companies may deviate from these estimations. The amount of earn-out obligations is thus
regularly checked and adjusted if necessary.
Estimates are also made in connection with determining the reduction in the value of fixed assets and intangible assets.
Indications of a reduction in value, the estimates of future cash flows, and the determination of the current value to be
ascribed to assets (or groups of assets) are associated with major estimates which the management must make regard-
ing the identification and review of signs of a reduction in value, of the expected cash flows, the applicable discount rates,
the respective usage periods, and the residual value. To determine the amount achievable by a cash-generating unit
(“CGU”), assumptions are also made regarding the development of revenues and markets which have a significant effect
on the amount of the current value to be ascribed to goodwill.
Please see the individual items in the Annual Financial Statements for information on the book values of the assets and
liabilities affected by estimation uncertainties on the reporting date.
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2 .7 non-current aSSetS
2.7.1 goodwill
The active difference between the procurement costs and the fair value of the identifiable assets and liabilities
should be assumed to be the goodwill from a company purchase. Goodwill is not depreciated according to schedule,
but subjected to an annual impairment test in accordance with IAS 36.
2.7.2 intangiBle aSSetS
Intangible assets comprise software and client relationships and are subject to the balancing regulations of IAS 38.
Intangible assets are evaluated on receipt at their production or procurement costs. They are identified if it is probable
that the future economic benefit to be assigned to the assets will come to the company and if the procurement costs
of the assets can be reliably assessed. Costs for the procurement of software should be activated under intangible assets
if they are not to be considered a component of the associated hardware.
After initial reporting, intangible assets are evaluated at their procurement costs minus the accumulated regular
depreciation and the accumulated costs for impairment of value. The planned depreciation is linear over estimated
usage periods. The depreciation period and method are reviewed annually at the end of each financial year.
SoftwareSoftware acquired directly against payment is depreciated linearly over an estimated usage period of at least three years.
The costs that are incurred to reinstate or maintain the future economic benefit that a company can expect from the
origin ally assessed performance of existing software should be recorded as an expense.
internally generated SoftwareUnder IAS 38, internally generated software is capitalised at its production cost (development cost) if it is probable
that the expected future economic benefits that are attributable to the asset will flow to the entity; and that the cost
of pro ducing the asset can be measured reliably. Other requirements for capitalisation are the technical feasibility
of completing the asset and the intention of the company to complete the intangible asset and use or sell it. Internally
gener ated software is depreciated using the straight-line method over an estimated usage period of three to five
years if its development has been completed on the balance sheet reporting date.
intangiBle aSSetS acquired in the courSe of a company mergerOther intangible assets which are acquired in the course of a company merger are identified and reported separately
from goodwill in accordance with IFRS 3 as long as they meet the definition of intangible assets and the current value to
be ascribed to them can be determined reliably. The procurement costs correspond to the current value to be ascribed
to them at the time of acquisition. The scheduled depreciation of intangible assets is assigned to revenue costs or mar-
keting costs depending on the type of asset.
After being reported for the first time, other intangible assets that were acquired in the context of a company merger are
evaluated the same as directly acquired intangible assets with their procurement costs minus accumulated planned
depreciation over the estimated usage period and minus accumulated unscheduled reductions in value if the estimated
usage period is determined to be limited.
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2 .7.3 tangiBle aSSetS
In accordance with IAS 16, tangible assets are posted as assets if it is probable that the future economic benefit associ-
ated with them will come to the company and if the procurement costs of the assets can be reliably assessed. The
tangible assets shall be evaluated at the procurement costs minus accumulated regular and non-scheduled depreciation.
The acquisition costs include all services rendered in return for acquiring an asset and returning it to an operational state.
The property and equipment of Sinner Schrader comprises objects of company and business equipment, computer hard-
ware, and leasehold improvements.
Depreciation is linear. A usage period of three years is usually assumed for computer hardware, four to eight years for
other electronic and electrical devices and equipment, and eight to thirteen years for office furniture. Improvements
to rented premises are depreciated over the estimated usage period or the residual term to the end of the tenancy, if
this is shorter.
The cost of depreciation is included in the costs of sales revenues and operating expenses. The costs of repair and
maintenance work are recorded with an effect on expenses.
In the event of the sale or decommissioning of tangible asset items, the relevant procurement costs and the accu-
mulated depreciation are debited and any profit or loss posted in the Statements of Operations as other revenues or
other expenses.
2.7.4 reductionS in value of non-current aSSetS
The posted value of asset items is reviewed if there are signs of non-scheduled reduction of value. Irrespective of whether
there are indications of a reduction in value, the reporting of intangible assets which have not yet been completed or
have an indefinite usage period, or of the goodwill resulting from company mergers, must be checked for recoverability.
If the posted value of an asset exceeds its achievable amount, non-scheduled depreciation is made according to IAS 36.
The achievable amount is the net sale price or commercial value, whichever is higher. The net sale price is the amount
that can be achieved from a sale under standard market conditions minus the sales costs; commercial value is the cash
value of the expected income from further use of the asset and the sale value at the end of the usage period. The com-
mercial value is determined individually for every asset or for the corresponding CGU.
If the reasons for non-scheduled depreciation are no longer in place, the original value will be reinstated, except in the
case of goodwill.
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2 .8 financial inStrumentS
According to IAS 39, a financial instrument is a contract which leads to the creation of a financial asset for one company
and the creation of a financial liability or an equity capital instrument for another.
In accordance with IAS 39, when they are first reported, financial instruments are to be posted with the current value to
be ascribed to them, which usually corresponds to the procurement costs at the time of acquisition. Transaction costs are
included in the first evaluation if no evaluation for fair value with an effect on profits takes place. Purchases and sales of
financial instruments should be posted as at the trading day.
With respect to the subsequent evaluation, a distinction is made between various categories of financial instruments,
including financial instruments held for trading purposes, financial instruments to be held until they are finally due, finan-
cial instruments available for sale, and credits and claims submitted by the company.
Financial instruments held for trading purposes and financial assets available for sale are evaluated at the current value
without deduction of transaction costs in the subsequent evaluation. The current values are usually found from reporting
date prices on financial markets. Profits and losses from the evaluation of financial instruments held for trading purposes
shall be reported with an effect on profits. Profits and losses from the valuation of financial instruments available for sale
shall be recorded directly as other income with no effect on profits until the financial instrument is sold, withdrawn or
otherwise disposed of, or as soon as a permanent value reduction has been identified for it. Where necessary, profits and
losses recorded directly in the shareholders’ equity are posted under “Changes in shareholders’ equity not affecting net
income”. Financial instruments held for trading purposes and available for sale are posted in current assets if their sale is
planned in the next twelve months.
Financial instruments to be held to maturity shall be assessed at their amortised cost using the effective interest method.
If the remaining period is up to twelve months, they are reported in current assets.
A financial asset is debited if the company economically or contractually loses the power of disposition over the financial
asset. A financial liability is debited if the obligation upon which this liability is based is fulfilled, terminated or deleted.
IFRS 7 requires information on how fair values are determined and on liquidity risk.
Fair value is the price that would be accepted between market participants on the measurement date for the sale of an
asset, or that would be paid for the transfer of a debt. This applies irrespective of whether or not the price is directly
observable or whether it has been estimated by application of a valuation method. Fair value is not always available as
a market price. It frequently needs to be determined on the basis of various valuation parameters. Depending on the
avail ability of observable parameters and their significance for ascertaining a fair value, the fair value is allocated to
levels 1, 2 or 3. Sub-dividing is carried out according to the following specification:
Level 1: On the first level of the fair value hierarchy, the fair value is determined on the basis of publicly quoted market
prices since the most objective indicators of the fair value of a financial asset or financial liability can be observed in an
active market.
Level 2: If there is no active market for an instrument, a company must determine the fair value with the help of valuation
models. These valuation models include the use of the latest business transactions between independent business part-
ners who are experts and willing to enter into a contract, a comparison with the current fair value of other largely identical
financial instruments, the use of the discounted cash flow (DCF) method or option price models. The fair value is estimated
on the basis of the results of a valuation method which uses the largest amount of data possible from the market and
relies as little as possible on company-specific data.
Level 3: The valuation models on this level are based on parameters that cannot be observed in the market.
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2 .9 accountS receivaBle and unBilled ServiceS
Accounts receivable are posted at their nominal value minus appropriate value adjustments. The value of the claims
is regularly checked on an individual basis. Value adjustments are formed in the case of identifiable individual risks. The
receivable is debited if it is irrecoverable.
Services rendered for which no bills had been issued on the balance sheet date are reported as unbilled revenues.
The items both contain amounts from production orders, which are measured according to their progress (POC method).
2.10 other financial aSSetS
Other financial assets are entered in the balance sheet at their nominal value or the recoverable amount, whichever
is lower.
2.11 fundS
Funds comprise cash flows, bank credits available on a daily basis and fixed deposits with a term of less than three
months. They are posted at their nominal value.
2.12 StatementS of caSh flowS
The Statements of Cash Flows are prepared in accordance with IAS 7 using the indirect method (cash flows from
oper ating activity) or the direct method (cash flows from investment or financing activity). The financial funds whose
change is reported in the Statement of Cash Flows comprise the funds defined under 2.11.
2.13 trade accountS payaBle, financial liaBilitieS and other liaBilitieS
Trade accounts payable and other liabilities are posted at the amount to be paid.
2.14 accrued eXpenSeS
According to IAS 37, accrued expenses are formed for legal and actual obligations that were incurred economically by
the reporting date if it is probable that fulfilment of the obligation will lead to the Group funds being depleted and a reliable
estimate of the level of the obligation can be made. Reserves are reviewed on every balance sheet date and adjusted to
the best estimate in each case. The amount of reserves corresponds to the value of the expenses probably needed to fulfil
the obligation. The accrued expenses take account of all recognisable obligations vis-à-vis third parties according to IAS 37.
2.15 treaSury StocK
Under IAS 32, treasury stock is posted at its procurement cost as a deducted item within the shareholders’ equity.
If treas ury stock is re-issued, the deducted item is reduced and any difference between the value at the time of issue
and the purchase costs may raise or lower the capital reserve.
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2 .16 deferred taXeS
Under IAS 12, deferred tax claims or liabilities are to be posted in the balance sheet if there are differences between the
posted values of assets and liabilities in the balance sheet under IFRS and those in the tax balance sheet that will reverse
in future years (“temporary differences”). Furthermore, deferred tax claims must also be formed for the future use of tax
loss carry-forwards. Deferred tax claims and liabilities are to be determined on the basis of the liability method.
Deferred tax claims and liabilities from temporary differences must be determined separately for every tax subject. Tax
claims should be posted only if or to the extent to which they are countered by tax liabilities or to which their realisation
can be classified as probable through future taxable profits. Tax claims and liabilities are posted in a balanced form for a
tax subject.
For the evaluation of the temporary differences or loss carry-forwards, the tax rates valid on the balance sheet date or,
for a future reversal of temporary differences, the tax rates legally entered into force on the balance sheet date shall be
used.
Deferred tax expenditures or revenues are to be settled with no effect on profits if they relate to differences that do not
have an impact on the Statements of Operations, such as valuation changes to financial assets available for sale. De ferred
tax claims and tax debts are reported as non-current assets or debts in the balance sheet. They are not discounted.
2.17 revenue realiSation
Sinner Schrader provides services of various kinds that are treated differently with respect to revenue realisation. In prin-
ciple, Sinner Schrader realises revenues once the service has been performed according to the underlying contractual
agreements and opportunities and risks have been transferred to the recipient of the service or the purchaser, if it is
prob able that the economic benefit from the business will flow into the company and the level of sales revenues can be
reliably determined. The revenues are posted net, without turnover tax, discounts, client bonuses or deductions. They
contain reimbursable expenses, such as travel expenses, if the client has been invoiced for them.
proJect and conSultancy ServiceSProject and consultancy services are billed either according to actual expenditure or on the basis of a fixed price. If the
result of a production order can be reliably assessed, the revenues and costs relating to the production order will be
entered according to progress made on the balance sheet date. Progress made is determined on the basis of order costs
incurred for work performed in relation to anticipated order costs.
If it is not possible to reliably determine the result of a production order, revenues relating to the production order
are only entered in the amount of the order costs incurred which are likely to be recovered. Order costs are reported
as expenditure in the period in which they arise.
If it is likely that the total order costs will exceed the total order revenues, the expected loss is immediately reported
as expenditure.
Insofar as the order costs incurred up to the reporting date, plus reported profits and less reported losses, exceed the
partial settlements, the excess amount is shown in the “Unbilled revenues” item.
Amounts received prior to rendering production work are reported under deposits received. Amounts billed for services
already rendered which have not yet been paid by a client are included in “Accounts receivable”.
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media ServiceSSinner Schrader performs services for its clients for planning and implementing advertising campaigns on the Internet
(media services). In the context of implementing advertising campaigns, Sinner Schrader buys advertising space at its
own expense. In the course of billing for these media services, the costs for buying advertising space (media costs) are
passed on to the clients together with a fixed payment or a payment calculated on the basis of the actual media costs.
In principle, revenues for media services are realised with or after the appearance of the advertising. In this connection,
the entire amount to be charged to the client is recorded as gross revenues, and the amount reduced by the media costs
that have been passed on to clients comprises the net revenues.
Realised revenues that have not yet been billed are posted as unbilled services in the balance sheet, reduced by deposits
received for the advertising campaigns and including deposits paid for purchasing advertising space as part of advertis-
ing campaigns.
operating ServiceSSinner Schrader performs operating services for its clients, which in particular also include the 24-hour monitoring and
management of Internet applications with an on-call service. Payment for these services usually comprises a fixed
monthly service fee plus variable, performance-related components, and the clients are billed for them on a monthly or
quarterly basis. If the IT system monitored by Sinner Schrader is operated in Sinner Schrader’s own computer centre, fixed
usage fees are also charged monthly. Revenues resulting in connection with performance-based operating and handling
services are generally recognised on a monthly basis in accordance with the expenditure incurred.
Sale of hardware and SoftwareIn addition to other services, Sinner Schrader supplies its clients with hardware and standard software on request that
Sinner Schrader itself buys on the market. The revenues from this are realised after billing or after the transfer of oppor-
tunities and risks.
Software aS a ServiceWith its subsidiary NEXT AUDIENCE GmbH (formerly newtention technologies GmbH), Sinner Schrader offers the use
of internally generated software as an additional service in the context of a software-as-a-service model. Depending on
the actual usage, users are generally invoiced monthly for the fees in accordance with the agreed usage parameters.
Rev enues are realised in the amount of the fees invoiced.
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2 .18 advertiSing coStS
In principle, Sinner Schrader takes the expenditure for advertising and promotional campaigns into account under the
marketing costs in the Statements of Operations at the time the expenditure is incurred. In the 2013/2014 and 2012/2013
financial years, these expenses amounted to € 456,369 and € 624,414, respectively.
2.19 reSearch and development eXpenditure
Expenditure for research and development is recorded as an expense in the period in which it is incurred. Development
costs that can be activated are an exception if they completely meet the criteria according to IAS 38.
In 2013/2014, research and development costs in the amount of € 355,624 were reported as expenditure, in comparison
to € 357,240 in the 2012/2013 financial year. NEXT AUDIENCE GmbH recognised costs for the development of a new
audience management software, the “NEXT AUDIENCE Platform”, in the amount of € 488,391 (previous year: € 327,146) as
assets. Furthermore, the criteria for recognising research and development costs as assets in accordance with IAS 38
were not met, as in the previous financial year, since in this respect research and development costs cannot be separated.
2.20 leaSing
Leasing payments should be recorded as an expense in the Statements of Operations using a linear method over the
term of the leasing contract if they are incurred within an operating leasing relationship where all of the risks remain with
the lessor.
Sinner Schrader has concluded only operating leasing contracts. They mainly concern automobiles made available as
company cars.
2.21 Share-BaSed compenSation
IFRS 2 calls for costs resulting from the issue of employee options to be entered in the balance sheet on the basis of their
current value with an effect on income. In this connection, the market value of the option on the issue date should be
distributed over the waiting period for exercising the option and then proportionately entered in the Statements of Oper-
ations as personnel costs for the relevant period. The costs are recorded against the shareholders’ equity in the reserve
for share-based compensation.
As at 31 August 2014 and 31 August 2013, Sinner Schrader had two respective stock option plans, the structure of which
is described in more detail in Section 7.1.
2.22 earningS per Share
Sinner Schrader calculates the earnings per share in agreement with IAS 33. The undiluted earnings per share are
determined on the basis of the weighted average of the outstanding common stock. According to this, treasury stock is
not considered in the calculation of the basis for the earnings per share on the date these shares were bought back.
The weighted average of the outstanding shares is increased by the dilution effect from the potential exercise of outstand-
ing options, calculated according to the Treasury Stock Method, in order to determine the diluted earnings per share. As
part of its employee option programmes, Sinner Schrader issued options to employees, managing directors, and members
of the Management Boards to buy common stock. The outstanding options in the 2013/2014 and 2012/2013 financial
years were considered accordingly in the calculation of the dilution effect.
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3 Segment reporting
In the Consolidated Financial Statements for the 2013/2014 financial year, Sinner Schrader used the management
approach to report on the Interactive Marketing, Interactive Media and Interactive Commerce segments. The segments are
controlled on the basis of net revenues and EBITA.
• The Interactive Marketing segment develops Internet strategies, drafts, designs and produces digital communication
campaigns, handles the customised conception, design, and technical development of websites, Internet applications and
mobile applications, the maintenance of content and technologies, performance measurements and optimisation as
well as technical operations, including the provision of the technical infrastructure for websites and Internet applications.
• The Interactive Media segment plans and implements advertising campaigns on the Internet with a focus on perfor-
mance-driven display advertising (e.g. banner ads) and provides and measures the performance of advertising media
(adserving).
• The Interactive Commerce segment offers companies a comprehensive range of services for the set-up, development
and operation of digital sales channels, and assumes overall responsibility for the management of these channels,
including purchasing, logistics and payment transactions (e-commerce outsourcing).
• The Interactive Marketing segment has been formed by Sinner Schrader Deutschland GmbH, Sinner Schrader Praha s.r.o.
and Sinner Schrader Mobile GmbH. In the period of the report, Sinner Schrader Content GmbH was allocated to the
Interactive Media segment, which also includes mediaby GmbH and the NEXT AUDIENCE Group. The Commerce Plus
Group forms the Interactive Commerce segment.
All of Sinner Schrader’s revenues were earned by Group companies based in Germany. Sinner Schrader Praha s.r.o. has
until now rendered its project services only for Sinner Schrader Deutschland GmbH.
In the Interactive Marketing segment, net revenue in the amount of € 10,212,000, which accounts for around 21 % of the
consolidated net revenue for the Group, was achieved with one group of companies in the year of the report. Net revenue
in the amount of € 5,201,000, which just exceeded 10 % of the consolidated net revenue for the Group, was achieved with
another group of companies. In the previous year, € 3,643,000 was achieved in the Interactive Marketing segment with one
group of companies. This just exceeds 10 % of the consolidated net revenue for the Group.
Tables 1a and 1b show the segment figures for the 2013/2014 and 2012/2013 financial years:
table 1a Segment information for the 2013/2014 f inancial year in € and number
01.09.2013–31.08.2014 inteRActive mARketing
inteRActive mediA
inteRActive commeRce
Sum SegmentS
holding/conSolidAtion
gRoup
External revenues 34,962,491 8,495,038 7,897,610 51,355,139 — 51,355,139
Internal revenues 719,510 146,845 70,655 937,010 –937,010 —
Gross revenues 35,682,001 8,641,883 7,968,265 52,292,149 –937,010 51,355,139
Media costs — –2,754,788 — –2,754,788 222 –2,754,566
Total revenues, net 35,682,001 5,887,095 7,968,265 49,537,361 –936,788 48,600,573
Segment income (EBITA) 4,052,317 –286,174 148,546 3,914,689 –850,306 3,064,383
Employees, end of period 328 53 97 478 43 521
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table 1b Segment information for the 2012/2013 f inancial year in € and number
01.09.2012–31.08.2013 inteRActive mARketing
inteRActive mediA
inteRActive commeRce
Sum SegmentS
holding/conSolidAtion
gRoup
External revenues 26,183,295 7,616,374 7,463,157 41,262,826 — 41,262,826
Internal revenues 84,841 285,018 154,258 524,117 –524,117 —
Gross revenues 26,268,136 7,901,392 7,617,415 41,786,943 –524,117 41,262,826
Media costs — –5,041,124 — –5,041,124 179,516 –4,861,608
Total revenues, net 26,268,136 2,860,268 7,617,415 36,745,819 –344,601 36,401,218
Segment income (EBITA) 3,380,086 –1,603,863 –377,588 1,398,635 –717,686 680,949
Employees, end of period 259 40 112 411 40 451
Internal revenues were all achieved under the usual market conditions.
Accounting for the individual segments follows the accounting principles that are also used in the Group. Administrative
costs incurred by Sinner Schrader AG are charged to the operative segments, where they can be assigned. Costs that
cannot be assigned – primarily costs for original holding tasks, such as investor relations work – are not distributed to
the segments.
Table 1c explains the reconciliation of the total of the segment earnings to the earnings before tax in the Group for the
period from 1 September 2013 to 31 August 2014 and for the comparable period in the previous year:
table 1c reconcil iat ion of segment income to income before taxes of the group in €
2013/2014 2012/2013
Segment income (EBITA) all reporting segments 3,914,689 1,398,635
Central costs not passed on to segments –850,306 –717,686
EBITA of the Group 3,064,383 680,949
Amortisation of intangible assets from first consolidation and of goodwill –82,181 –268,234
Financial income of the Group 7,553 29,553
Income before taxes of the Group 2,989,755 442,268
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4 information on the Balance Sheet
4 .1 goodwill , intangiBle aSSetS, property and equipment
The development of goodwill, other intangible assets, and property and equipment in the 2013/2014 and 2012/2013
financial year is shown in Table 2a and 2b, respectively:
table 2a development of goodwill , intangible assets, and property and equipment in the 2013/2014 f inancial year in €
AcQuiSition And pRoduction coStS: 01.09.2013 AdditionS diSpoSAlS 31.08.2014
Goodwill 4,381,513 — — 4,381,513
Internally generated software 433,319 488,393 — 921,712
Other intangible assets 3,796,127 167,271 7,065 3,956,333
Computer hardware 3,330,741 617,934 80,115 3,868,560
Furniture and fixtures 1,763,097 239,893 24,456 1,978,534
Leasehold improvements 843,259 — — 843,259
Total fixed assets 14,548,056 1,513,491 111,636 15,949,911
AccumulAted depReciAtion, AmoRtiSAtion, And wRitedownS: 01.09.2013 AdditionS diSpoSAlS 31.08.2014
Goodwill 352,773 — — 352,773
Internally generated software — — — —
Other intangible assets 3,608,638 167,367 5,718 3,770,287
Computer hardware 2,680,857 453,757 68,755 3,065,859
Furniture and fixtures 947,333 160,384 17,746 1,089,971
Leasehold improvements 538,035 94,301 — 632,336
Total fixed assets 8,127,636 875,809 92,219 8,911,226
net book vAlue: 31.08.2013 31.08.2014
Goodwill 4,028,740 4,028,740
Internally generated software 433,319 921,712
Other intangible assets 187,489 186,046
Computer hardware 649,884 802,701
Furniture and fixtures 815,764 888,563
Leasehold improvements 305,224 210,923
Total fixed assets 6,420,420 7,038,685
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table 2b development of goodwill , intangible assets, and property and equipment in the 2012/2013 f inancial year in €
AcQuiSition And pRoduction coStS: 01.09.2012 AdditionS diSpoSAlS 31.08.2013
Goodwill 4,381,513 — — 4,381,513
Internally generated software 106,173 327,146 — 433,319
Other intangible assets 3,751,973 47,321 3,167 3,796,127
Computer hardware 2,910,908 440,463 20,630 3,330,741
Furniture and fixtures 1,540,069 497,224 274,196 1,763,097
Leasehold improvements 678,393 176,873 12,007 843,259
Total fixed assets 13,369,029 1,489,027 310,000 14,548,056
AccumulAted depReciAtion, AmoRtiSAtion, And wRitedownS: 01.09.2012 AdditionS diSpoSAlS 31.08.2013
Goodwill 352,773 — — 352,773
Internally generated software — — — —
Other intangible assets 3,247,219 361,978 559 3,608,638
Computer hardware 2,275,821 417,180 12,144 2,680,857
Furniture and fixtures 1,021,621 161,805 236,093 947,333
Leasehold improvements 471,038 76,711 9,714 538,035
Total fixed assets 7,368,472 1,017,674 258,510 8,127,636
net book vAlue: 31.08.2012 31.08.2013
Goodwill 4,028,740 4,028,740
Internally generated software 106,173 433,319
Other intangible assets 504,754 187,489
Computer hardware 635,087 649,884
Furniture and fixtures 518,448 815,764
Leasehold improvements 207,355 305,224
Total fixed assets 6,000,557 6,420,420
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4 .1 .1 goodwill
The consolidated balance sheets as at 31 August 2014 and 31 August 2013 show goodwill in the amount of € 4,029,000,
resulting as part of the initial consolidation of the following takeovers of companies and business operations carried out
by various Group companies in the previous years:
• Acquisition of spot-media AG by Sinner Schrader AG in February 2008
• Acquisition of the business operations of Maris Consulting GmbH by spot-media consulting GmbH in January 2011
• Acquisition of the business operations of Visions new media GmbH by next commerce GmbH in February 2011
• Acquisition of TIC-mobile GmbH by Sinner Schrader AG in May 2011
For the impairment test, goodwill resulting from the takeover of companies was allocated as a cash-generating unit
(“CGU”) to the respective company (or group of companies) taken over. Goodwill from the takeover of business operations
will in each case be allocated to the company (or the group of companies) taking over the business operations.
Table 3 gives an overview of the goodwill, its allocation to CGUs, the valuation methods used for the impairment test and
the significant valuation parameters:
table 3 overview of goodwill and the assumptions for goodwill impairment tests
cASh geneRAting unit (cgu)
goodwill in € 000S
evAluAtion concept
gRowth RAte in teRminAl vAlue in %
diScount fActoR (weighted AveRAge coSt of cApitAl) in%
2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013
Commerce Plus
Group 2,782 2,782
Fair Value less
Cost to Sell
Fair Value less
Cost to Sell 0.5 0.5 8.1 8.5
Sinner Schrader
Mobile GmbH 1,247 1,247
Fair Value less
Cost to Sell
Fair Value less
Cost to Sell 0.5 0.5 8.1 8.5
Sinner Schrader
Group 4,029 4,029
For the purpose of reviewing the recoverability of goodwill, “recoverable amounts” were ascertained for the CGUs as
at 31 August 2014. A DCF model (fair value less cost to sell) was used to ascertain the amounts for the Commerce Plus
Group and Sinner Schrader Mobile GmbH on the basis of the fair value less disposal costs. Achievable amounts are
ascertained on the basis of the business plans including cash flow forecasts prepared annually by the management of the
CGU for a period of three years and approved by the Management Board. The business plans are based on historical data,
and take account of the expectations for the future development of relevant markets. Revenues and earnings are forecast
on a client basis, wherever possible.
Due to the application of internal planning assumptions, the ascertained fair values are to be allocated to level 3 in the
fair value hierarchy.
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goodwill and impairment teSt in the commerce pluS group cguGoodwill in the total amount € 2,782,000, unchanged against the figure as at 31 August 2013, was allocated to the
Commerce Plus Group as at 31 August 2014.
The impairment test was carried out on the basis of a three-year financial plan for the Commerce Plus Group for the
2014/2015 to 2016/2017 financial years. In the 2013/2014 financial year, the Commerce Plus Group achieved its targets
of returning to growth and generating positive results. However, with the growth in revenue at just under 5 %, the Group
fell short of the growth target of 8 %. At 1.9 %, the targeted operating margin (EBITA in relation to net revenue) of 4.5 %
was not quite achieved, one of the reasons being a comparatively high need for depreciation on receivables. In its busi-
ness planning, the Commerce Plus Group presumes that the net revenue annual growth rate will average 10 %. In the
first planning year, the operating margin is to increase to a level of just under 7 % and improve to around 11 % during
the course of the plan. Stable relationships with existing clients, success in business with new clients to approximately
the same extent as in the 2013/2014 financial year just completed and a sustainable improvement in the efficiency of
staff deployment are essential for achieving revenue and profit targets. The cash flows were carried forward beyond the
three-year planning period, taking into account a steady growth rate of 0.5 %.
The interest rate after taxes used for discounting the cash flow forecasts was determined on the basis of the concept of
the weighted average cost of capital (WACC). On the basis of a risk-free base interest rate of 2.25 % (previous year: 2.5 %),
a market risk premium of 6.25 % (previous year: 6.25 %) and a beta factor of 1.01 for the sector (previous year: 1.16),
a value of 8.07 % (previous year: 8.46 %) resulted for the WACC.
The recoverable amount determined for this CGU on this basis surpasses the book value of the CGU which encompasses
the goodwill. There was thus no need to reduce the value as at 31 August 2014. This would also apply if a growth rev-
enue of only 5 % a year in the planning period and operating margins in the range of 5 % to 5.5 % were to be assumed.
The recov erable amount would just exceed the book value of the CGU even if the development in revenue was flat, if the
operating margin were to gradually improve by around 2 % to 4.7 %, and the growth rate for development outside the
planning horizon eliminated.
However, if the development of the margin was assumed to be even weaker, with the margin improving from 2.2 % in
the first planning year to 3 % and only 4 % in the final year of the plan, a need for impairment in the amount of € 446,000
would result.
In terms of the planning oft he Commerce Plus Group on which the impairment test is based, an increase in the market
risk premium included in the calculation of weighted capital costs of 75 basis points would reduce the achievable value
by € 2,473,000. There would be no need for impairment as at 31 August 2014 in a scenario of this kind.
goodwill and impairment teSt in the SinnerSchrader moBile gmBh cguThe goodwill allocated to the Sinner Schrader Mobile GmbH CGU did not change in the 2013/2014 financial year against
the amount as at 31 August 2013, remaining at € 1,247,000.
The impairment test was carried out on the basis of a three-year financial plan for Sinner Schrader Mobile GmbH for the
2014/2015 to 2016/2017 financial years. After the 2013/2014 financial year, in which the growth in revenue, at 11 %, fell
short of expectations, the the planning assumes, on the basis of a market offensive on “Connected Services” and increased
cross-selling efforts across the breadth of the Group’s customer portfolio, growth in net revenue to amount to a good
19 % in the first planning year and to average just under 17 % in the three-year planning period. In terms of the operating
margin, the plan foresees that the margin will decrease again in the first planning year after 2014/2015 to just under
5 %, and will subsequently improve again to reach around 8 %. The cash flows were carried forward beyond the planning
period, taking into account a steady growth rate of 0.5 %.
The interest rate after taxes used for discounting the cash flow forecasts was determined on the basis of the concept of
the weighted average cost of capital (WACC). On the basis of a risk-free base interest rate of 2.25 % (previous year: 2.5 %),
a market risk premium of 6.25 % (previous year: 6.25 %) and a beta factor of 1.01 for the sector (previous year: 1.16),
a value of 8.07 % (previous year: 8.46 %) resulted for the WACC.
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The recoverable amount determined for this CGU on this basis surpasses the book value of the CGU which encompasses
the goodwill. There was thus no need to reduce the value as at 31 August 2014. This would also apply if the margin as-
sumptions remained unchanged and the revenue development flattened on the basis of the level reached in 2013/2014
and if the consistent growth rate no longer applied for the time after the planning period. However, should the operating
margin also fall short of the planning on which the impairment test is based by 2 percentage points, a need for impair-
ment in the amount of € 69,000 would result.
An increase of 75 basis points in the market risk premium included in the calculation of weighted capital costs would
reduce the achievable value by € 245,000. There would be no need for impairment as at 31 August 2014 in a scenario of
this kind.
4 .1 .2 internally generated Software
The non-current assets item in the consolidated balance sheets of 31 August 2014 and 31 August 2013 contains capital ised
development costs of € 922,000 and € 433,000, respectively, as internally generated software. The capitalised costs refer
to the development of the NEXT AUDIENCE Platform, a new audience management software program, the development of
which was commenced by NEXT AUDIENCE GmbH in the Interactive Media segment in the 2011/2012 financial year.
Under IAS 36, capitalised development costs are to be tested for impairment on an annual basis for as long as the de vel-
oped asset is not available for use. To this end, the capitalised development costs were allocated to the NEXT AUDIENCE
GmbH CGU. For the purpose of testing the value of the capitalised development costs, the recoverable amount of the NEXT
AUDIENCE GmbH CGU was ascertained as at 31 August 2014. The amount was calculated on the basis of the value in use
on application of the business plans drafted by the management of the NEXT AUDIENCE GmbH for a period of three years,
including cash flow forecasts approved by the Management Board of the AG after reductions had been made. The busi-
ness plans are based on historical data, and take account of the expectations for the future development of relevant mar-
kets. Revenues and earnings were forecast on a client basis, wherever possible.
NEXT AUDIENCE GmbH completed the development of the first version of the NEXT AUDIENCE Platform in August 2014
with a delay of around six months. This delay meant that the increase in revenue planned for the year of the report was
not achieved, and that the operating losses significantly exceeded the plan.
The planning used as a basis for ascertaining a value as at 31 August 2014 assumes that NEXT AUDIENCE GmbH, after
completion of the NEXT AUDIENCE Platform, will now gradually be able to connect existing clients and new clients to the
platform in the 2014/2015 financial year and the following years, and that it will be able to generate inflows of revenue
from the audience management business made possible with this platform. Growth rates in the years of the three-year
planning horizon have thus been set at above-average values, which, on average, will result in an average annual growth
rate of 55 % over the planning years. After completion of the software in August 2014, the planning allows for the depre-
ciation of the software in the three planning years in the period from 2014/2015 to 2016/2017, and that work on further
development and maintenance will be charged to the current account in each case.
The planning provides for another clear general loss in 2014/2015. An investment in software supplementing the NEXT
AUDIENCE Platform has also been provided for in the first planning year. In the second planning year – without taking
account of the scheduled depreciation to the capitalised software in the amount of € 0.3 million – the break-even point
is to have been reached and an operating margin (before depreciation of the capitalised software) of a good 8 % achieved.
The cash flows were carried forward beyond the planning period, taking into account a growth rate of 0.5 %.
In order to discount the cash flow, on the basis of an after-tax rate of 8.07 % (previous year: 8.46 %), an iteratively calcula-
ted interest rate before taxes appropriate for the value-in-use concept in the amount of 9.75 % (previous year: 12.06 %)
was used. The after-tax interest rate was calculated on the basis of the concept of a weighted average cost of capital at
a risk-free basic interest rate of 2.25 % (previous year: 2.5 %), a market risk premium of 6.25 % (previous year: 6.25 %) and
a beta factor of 1.01 for the sector (previous year: 1.16).
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The recoverable amount determined for the CGU on this basis surpasses the book value of the CGU which encompasses
capitalised development costs. There was thus no need to reduce the value as at 31 August 2014. There would still
be no need for impairment in a scenario in the average growth rate in the planning period only reaches 44 %, so that the
revenue earned in the final planning year falls short of the planned level by around 20 % and the yield planning for
the final planning year before depreciation of the software by around 8 % is missed by around one percentage point, but
all the other relevant factors remain unaltered. The recoverable amount and the book value for NEXT AUDIENCE GmbH
would approximately correspond if the growth rate of 0.5 % were also to be eliminated after the planning period. A need
for impairment would result if a decrease in the anticipated return (prior to depreciation of the software) had also been
assumed in the final planning year. In the event of a decrease of 2.8 percentage points, the development costs, which have
been activated, would need to be fully depreciated
In terms of the basic scenario on which the impairment test is based, an increase of 75 basis points in the capital costs
applied in the calculation would reduce the achievable value by € 355,000. There would be no need for impairment as at
31 August 2014 in a scenario of this kind.
4 .1 .3 other intangiBle aSSetS
The other intangible assets in the amount of € 186,000 (previous year: € 187,000) no longer included intangible assets
from the first-time consolidation as at 31 August 2014. There were still capitalised intangible assets with a net book value
of € 82,000 on 31 August 2013; these assets were fully depreciated in the financial year.
Of the depreciation of other intangible assets from first consolidation in the amount of € 82,000 (previous year: € 268,000),
€ 71,000 (previous year: € 188,000) was attributed to revenue costs and € 11,000 (previous year: € 80,000) to marketing
costs.
4 .2 deferred taXeS
Both in the 2013/2014 and the 2012/2013 financial years, deferred taxes had to be posted in the Group because of differ-
ences in the postings for assets and liabilities according to IFRS and according to the relevant tax regulations. Section 5.5
contains more details on this.
4 .3 poc receivaBleS and liaBilitieS
As at 31 August 2014, POC receivables amounted to € 3,496,311 (previous year: € 1,635,459). They included advance pay-
ments received which were offset in the amount of € 3,225,810 (previous year: € 2,674,363) in the period up to the balance
sheet date.
Advance payments received in the amount of € 717,836 exceeded corresponding POC receivables in the total amount of
€ 582,596. The difference of € 135,290 is reported under advance payments received in the balance sheet.
4 .4 taX reimBurSement claimS
As at 31 August 2014 and 31 August 2013, the tax reimbursement claims to be reported on the asset side amounted to
€ 105,803 and € 351,098, respectively.
Of these, € 89,938 (previous year: € 110,488) comprised discounted payment claims from identified corporation tax credits
which were to be capitalised in full by virtue of the introduction of the Act on Accompanying Tax Measures on the Intro-
duction of the European Company and Amending other Tax Regulations (“SEStEG”). Upon introduction of the SEStEG, the
payment in instalments starts independent of any dividends, beginning in September 2008 with a term of 10 years. The
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cash value was recognised because the claims for reimbursement cannot bear interest. Discounting was effected at
a risk-free interest rate.
The current tax reimbursement claims in the amount of € 15,865 (previous year: € 240,610) result from creditable
taxes collected at source. In the previous year, advance tax payments for corporation tax and commercial tax which
exceeded the actual tax expenditure calculated for the financial year were reported in current tax reimbursement
claims. As at 31 August 2014, tax accruals for the current financial year were balanced against these receivables.
4 .5 other current aSSetS
The other current assets and prepaid expenses largely contain payment for Investor Relations payments relating
to the year, insurance policies, maintenance agreements and contributions..
4 .6 fiXed-term depoSitS and SecuritieS
There were no fixed-term deposits and securities in the Sinner Schrader stock as at 31 August 2014.
The item “Fixed-term deposits and securities” as at 31 August 2013 comprised a term deposit in the amount of
€ 1,000,000 with a remaining term of seven months at the balance sheet date.
4 .7 fundS
Cash flows and bank balances resulted in funds of € 5,832,597 as at 31 August 2014 (previous year: € 4,949,325).
As at 31 August 2014, funds in the amount of € 451,575 (previous year: € 451,575) were used as cash deposits for bank
guarantees (see Section 4.13).
Furthermore, Sinner Schrader AG received open-end loan commitments from two banks for cash and surety loans total-
ling altogether € 4.5 million in the 2013/2014 financial year which were valid as at 31 August 2014. With the exception
of the defined bank guarantees, which remained unchanged against the status as at 31 August 2013, the credit lines had
not been used as at 31 August 2014.
4 .8 ShareholderS’ equity
SuBScriBed capitalAs at 31 August 2014 and 31 August 2013, the share capital of Sinner Schrader AG was € 11,542,764 and was divided into
11,542,764 no-par-value share certificates in the names of the bearers, each with a calculated value of € 1 per share.
On 31 August 2014 and 31 August 2013, 11,160,858 and 11,122,612 shares, respectively, of all issued outstanding shares
were in circulation. The remaining 306,906 and 420,152 shares, respectively, were held as Sinner Schrader AG treasury
stock.
approved capitalThe Annual General Meeting of 20 December 2012 authorised the Management Board to increase the share capital once
or repeatedly by up to a total of € 5,770,000 until 19 December 2019 with the approval of the Supervisory Board by issuing
new individual share certificates in return for a contribution in cash or a contribution in kind (“Approved Capital 2012”).
The shareholders shall be granted a subscription right with restrictions. The Approved Capital 2008 was cancelled upon
entry of the new approved capital.
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conditional capitalAs at 31 August 2014, Sinner Schrader AG had conditional capital in the amount of € 1,150,000, which was created in 2007
(“Conditional Capital III”) and 2012 (“Conditional Capital 2012”) for the issue of stock options to employees.
Until 31 December 2011, options could be issued to employees and Board members of Sinner Schrader AG and its sub-
sidiaries from Conditional Capital III in the amount of € 600,000, created by the Annual General Meeting resolution of
23 January 2007.
In a resolution of the Annual General Meeting of 20 December 2012, Sinner Schrader AG created new conditional capital
in the amount of € 550,000 (“Conditional Capital 2012”) and adopted the 2012 Sinner Schrader Stock Option Plan to grant
stock options to members of the Management Board of Sinner Schrader AG, members of the management of the com-
panies affiliated with Sinner Schrader AG, as well as selected employees with management functions in Sinner Schrader
AG and the companies affiliated with Sinner Schrader AG.
Details on the option programmes and outstanding options are provided in section 7.
treaSury StocKAs at 31 August 2014 treasury stock amounted to 306,906 shares. The average acquisition cost on 31 August 2014 was
€ 1.75 per share. 306,906 treasury stock shares represent 2.66 % of the share capital. A deduction entry in the amount of
the acquisition costs has been formed for treasury stock in accordance with IFRS.
As at 31 August 2013, there were 420,152 treasury stock shares with average acquisition costs of € 1.74 per share.
In the 2013/2014 financial year, 36,754 shares of treasury stock were purchased on the stock exchange at an average
price of € 1.91, and 150,000 shares of treasury stock were issued in the context of the exercising of employee options.
capital reServeAs at 31 August 2014 and 31 August 2013, the capital reserve amounted to € 3,654,636 and € 3,669,974, respectively. In
particular, the amount of the capital reserve comprises the premium resulting from the launch on the stock market
minus removals as well as the results from the issuing/sale of treasury stock. The € 15,338 decrease in the capital reserve
in the financial year resulted from the use of treasury stock to service employee options, if exercised.
reServe for Share-BaSed compenSationThe reserve comprises the accumulated costs from issuing share-based compensation. As at 31 August 2014 and
31 August 2013, they reached a value of € € 260,077 and 252,271, respectively.
accumulated deficit ( incl . revenue reServeS)The balance sheet loss was reduced by net income in the amount of € 1,843,237 in the 2013/2014 financial year.
As at 31 August 2014 it was € 869,487, after € 2,712,724 on 31 August 2013.
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changeS in ShareholderS’ equity not affecting net incomeThe shareholders’ equity item not affecting net income in the amount of € 25,162 as at 31 August 2014 comes from the
currency conversion as part of the consolidation of the companies in the consolidation group to be included on the
balance sheet in a foreign currency but whose functional currency is the national currency. As at 31 August 2013, the item
amounted to € 25,190 and also resulted in the full amount from the currency conversion. The changes to these items are
shown in Table 4:
table 4 changes in shareholders’ equity not affect ing net income in €
foReign cuRRency tRAnSlAtion
AvAilAble-foR-SAle vAluAtion
Sum
31.08.2013 25,190 — 25,190
Change –28 — –28
31.08.2014 25,162 — 25,162
4 .9 taX liaBilitieS
As at 31 August 2014 tax liabilites amounted to € 545,264 (previous year: € 112,851). As at the balance sheet date they
comprised reserves for corporation tax of € 272,902 and reserves for commercial tax of € 272,362. Tax receivables
resulting from tax declared for the previous year and comprising corporation tax and commercial tax were balanced in
the amount of € 119,560 and € 126,562, respectively.
4 .10 accrued eXpenSeS
Accrued expenses are all due within one year. Table 5 shows the composition of the accrued expenses as at 31 August
2014 and the development in the 2013/2014 financial year:
table 5 accrued expenses in €
31.08.2013 utiliSed AllocAted diSSolved 31.08.2014
Accrued compensation 2,080,516 1,906,568 2,956,309 3,253 3,127,004
Accrued project-oriented expenses for warranties and allowances 478,343 243,715 368,192 30,332 572,488
Accrued rent and related expenses 279,363 114,551 58,291 — 223,103
Reporting and auditing expenses 114,630 95,031 84,576 — 104,175
Other accruals 377,976 151,694 292,800 25,114 493,968
Total 3,330,828 2,511,559 3,760,168 58,699 4,520,738
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4 .11 current financial liaBilitieS and other liaBilitieS
As at 31 August 2014 current financial liabilities and other liabilities had a remaining term of less than one year and were
broken down into the major components listed in Table 6:
table 6 financial l iabi l i t ies and other l iabi l i t ies in €
31.08.2014 31.08.2013
Liabilities from income tax and church tax 438,153 363,390
Liabilities from value-added tax 511,882 809,202
Other current liabilities 1,074,638 338,443
Deferred revenues and deferred income 477,410 446,807
Total 2,502,083 1,957,842
After the payment of € 306,346 in the financial year, the other current liabilities no longer contain liabilities for future
purchase price payments from company mergers or from the takeover of business operations. This item contains
ac cruals for volume-related discounts in the amount of € 994,072 as at 31 August 2014.
4 .12 financial liaBilitieS and contingent liaBilitieS
Sinner Schrader rents its office premises at the Hamburg, Frankfurt am Main, Berlin, Hanover, Munich, and Prague loca-
tions as well as company vehicles as part of rental and operating leasing contracts. The minimum remaining term of the
rental contracts for the offices in Hamburg and Frankfurt am Main was between 1 and 44 months as at 31 August 2014.
Some of the rental agreements contain clauses which provide for price adjustments under certain conditions, such as
graduated rents and index adjustments. The leasing contracts for the company vehicles had a remaining term of between
1 and 36 months on the balance sheet date. In the years ahead, the rental and leasing contracts will result in financial
li abilities in the amount shown in Table 7:
table 7 financial l iabi l i t ies in €
leASing Renting
31.08.2014 31.08.2013 31.08.2014 31.08.2013
01.09.2013–31.08.2014 — 84,019 — 1,713,681
01.09.2014–31.08.2015 89,205 46,452 1,767,076 1,674,546
01.09.2015–31.08.2016 55,141 16,235 1,645,436 1,588,158
01.09.2016–31.08.2017 29,396 — 531,998 513,792
01.09.2017–31.08.2018 1,882 — 75,740 76,644
01.09.2018–31.08.2019 — — — —
After 31.08.2019 — — — —
Total 175,624 146,706 4,020,250 5,566,821
Future rental payments for the 2014/2015 financial year contain an offset in the amount of € 37,660, which is earned by
way of a sub-tenancy.
All of these expenses from rents including the operating costs amounted to € 1,856,557 and € 1,739,704 in the 2013/2014
and 2012/2013 financial years, respectively. Income from a sub-tenancy in the amount of € 96,588 (previous year:
€ 80,912) has been offset against rental payments for the financial year. The expenses arising from leasing agreements
amounted to € 117,680 and € 111,798 in the 2013/2014 and 2012/2013 financial years, respectively.
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In addition, Sinner Schrader has certain regular liabilities that arise in the ordinary course of business activities.
The Company will form accrued expenses for these if there is an over-50 % chance that future expenditures will have
to be made in this regard and that such expenditures can be estimated with sufficient reliability.
In the course of renting office space at the Hamburg, Frankfurt am Main, Hanover, and Munich locations, the landlords
each demanded securities, which were provided in the form of bank guarantees. As at 31 August 2014, the volume of this
guarantee was € 451,575 (previous year: € 451,575). With a guarantee of this scope, Sinner Schrader can dispose of its
liquid funds only with the explicit approval of the guaranteeing bank.
4 .13 financial inStrumentS – information according to ifrS 7
Cash and cash equivalents, accounts receivable and other financial assets are mainly short-term (remaining terms of less
than three months or less than one year). The book value of the financial assets as at 31 August 2014 almost corresponds
to the current value to be ascribed.
Trade accounts payable and other current liabilities are also due within one year. The book values correspond to the
current values to be ascribed.
Summarised according to categories pursuant to IAS 39, Table 8a shows the results for the financial instruments
reported in the Sinner Schrader AG Consolidated Financial Statements as at 31 August 2014:
table 8a financial instruments acc. to ifrS 7 in € 000s
31.08.2014 31.08.2013
cAtegoRy of meASuRement Acc. to iAS 39
book vAlue fAiR vAlue book vAlue fAiR vAlue
Funds LaR 5,833 5,833 4,949 4,949
Marketable securities LaR — — 1,000 1,000
Accounts receivable and unbilled services1) LaR 14,461 14,461 9,671 9,671
Other current assets LaR 892 892 381 381
Funds and current assets 21,186 21,186 16,001 16,001
Trade accounts payable FLaC 4,548 4,548 3,291 3,291
Accrued expenses for reporting and auditing FLaC 104 104 115 115
Other current liabilities FLaC 1,513 1,513 702 702
Other non-current liabilities FLaC — — — —
Financial liabilities 6,165 6,165 4,108 4,108
1) including accounts receivable from PoC LaR 3,496 3,496 1,635 1,635
FLaC Financial Liabilities at Amortised CostLaR Loans and Receivables
All of the financial instruments are to be assigned to the evaluation category Level 1 in line with the IFRS 7 fair
value hierarchy.
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The net profits and losses from financial instruments arising in the financial year are shown in Table 8b:
table 8b net income from f inancial instruments acc. to ifrS 7 in €
fRom inteReStS fRom SubSeQuent meASuRement fRom diSpoSAlS net gAinS/loSSeS
effective inteReSt method
otheR inteReStS
fRom fAiR-vAlue meASuRement
fRom AmoRtiSAtion of AcQuiSition
coStS
2013/2014 2012/2013
LaR — 16,660 — — — 16,660 51,740
FLaC — — — — — — –3,778
Total — 16,660 — — — 16,660 47,962
FLaC Financial Liabilities at Amortised CostLaR Loans and Receivables
Table 8c shows the age structure of the trade accounts receivable after value adjustments:
table 8c maturity of accounts receivable after adjustments in € 000s
AccountS ReceivAble not due dAyS oveRdue
1–90 dAyS 91–180 dAyS 181–360 dAyS moRe thAn 360 dAyS
As at 31 August 2014 8,765 578 410 84 67
As at 31 August 2013 5,374 1,173 49 141 14
There are no grounds for any value impairments to financial assets that are not due.
The development of value adjustments on accounts receivable is shown in Table 8d:
table 8d development of al lowances for doubtful accounts receivable in €
31.08.2013 utiliSed AllocAted diSSolved 31.08.2014
Allowances for doubtful accounts receivable 59,290 23,095 19,430 — 55,625
Reference is made to Section 8 of these Notes for the representation of market risks with respect
to financial instruments.
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5 elementS of the StatementS of operationS
5.1 revenueS
The revenues (gross) of € 51,355,139 (previous year: € 41,262,826) include revenue from the passing on of costs
incurred for the purchase of advertising spaces in online media business (“media costs”) in the amount of € 2,754,566
(previous year: € 4,861,608). After deduction of the media costs, revenues (net) in the amount of € 48,600,573
(previous year: € 36,401,218) result. These net revenues are used by Sinner Schrader as a reference value for revenue.
Of the net revenues, € 19,823,445 are order revenues, of which an amount of € 7,382,028 (previous year: € 4,309,822)
is from commissioned projects which had not been completed as at 31 August 2014. The accumulated costs for these
commissioned projects amounted to € 6,583,587 (previous year: € 3,133,025) on the reporting date.
5.2 BreaKdown of eXpenSeS according to the total coSt method
The total revenues, marketing, administrative, and research and development costs of the 2013/2014 and 2012/2013
financial years was broken down according to cost types, as shown in Table 9:
table 9 operat ing costs by cost type in €
2013/2014 2012/2013
Personnel expenses 27,338,017 24,081,146
Costs of materials and services 11,112,950 5,064,061
Depreciation of property and equipment, as far as not from first consolidation 793,628 749,440
Other operating expenses 6,425,632 5,923,087
Amortisation of intangible assets from first consolidation 82,181 268,234
Total 45,752,408 36,085,968
The personnel expenditure refers to an average personnel capacity of 4446 full-time employees in the 2013/2014
finan cial year and 406 full-time employees in the 2012/2013 financial year.
The Group paid contributions to statutory pension insurers. In 2013/2014 these expenses in connection with contribution-
based pension plans were € 1,822,734 (previous year: € 1,642,504).
The costs of materials and services item mainly comprises costs resulting from using freelancers and sub-contractors
and from the purchase of hosting, housing and computer centre services. It furthermore includes marginal costs for
the purchase of hardware and software acquired by Sinner Schrader to sell on to its clients.
Within the other operating expenses, € 1,856,557 and € 1,739,704 were incurred for renting and operating the office
space in the 2013/2014 and 2012/2013 financial years, respectively.
Additionally, within the other operating expenses, € 207,030 was apportionable to bad debt losses in the 2013/2014
financial year. In the comparable period of the previous year, bad debt losses arose in the amount of € 70,777.
In the 2013/2014 financial year Sinner Schrader received a grant for hosting the next Congress in Berlin in May 2014.
The grant total of around € 10,000 (previous year: € 12,500) was posted on the balance sheet in the full amount with
other oper ating expenses.
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5 .3 other income and eXpenSeS
Table 10 shows the composition of the other income and expenses:
table 10 other income and expenses in €
2013/2014 2012/2013
Income from dissolving of accrued expenses 92,670 104,533
Income from written-off receivables 32,833 3,657
Compensation for damages 22,613 19,968
Other income 8,071 21,003
Other income, total 156,187 149,161
Expenses from disposal of fixed assets –10,045 –31,145
Other expenses –12,105 –20,552
Other expenses, total –22,150 –51,697
5.4 financial reSult
The financial result is made up as shown in Table 11:
table 11 financial income in €
2013/2014 2012/2013
Interest income 16,660 51,740
Interest expenses –9,107 –22,187
Total 7,553 29,553
Interest income was earned from investing free liquid funds on the capital market. Interest expenses and similar
expenses largely arose from providing bank guarantees.
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5 .5 income taXeS
The income taxes posted in the 2013/2014 and 2012/2013 financial years are made up of current and deferred compon-
ents, as shown in Table 12a:
table 12a income tax in €
2013/2014 2012/2013
Current 1,166,656 155,311
Deferred –20,138 285,670
Total 1,146,518 440,981
Deferred taxes had to be formed because of the evaluation differences between the balance sheet items according
to IFRS and the postings in the relevant tax balances as well as on the basis of the remaining loss carry-forwards
that can be used for tax purposes. Table 12b shows the composition of the deferred tax items as at 31 August 2014
and 31 August 2013, broken down according to the items for which there was an evaluation difference:
table 12b deferred tax i tems in €
31.08.2014 31.08.2013
Deferred tax assets:
Loss carry-forwards 1,629,364 1,365,799
Valuation of accrued expenses 51,946 80,650
Valuation of intangible assets 122,477 —
Valuation allowance –1,284,957 –1,206,966
Total deferred tax assets 518,830 239,483
Deferred tax liabilities:
Valuation of unfinished/unbilled services 877,993 906,763
Valuation of intangible assets 315,760 40,470
Valuation of fixed assets — –254
Valuation of current assets 23,957 11,522
Total deferred tax liabilities 1,217,710 958,501
Total deferred tax assets/liabilities, net –698,880 –719,018
thereof:
deferred tax assets/liabilities formed with an effect on net income –698,880 –719,018
As at 31 August 2014 and 31 August 2013, the calculation of deferrals was based on tax loss carry-forwards in Germany,
the UK, the Netherlands, and the Czech Republic. In Germany and Great Britain, the relevant loss carry-forwards could be
brought forward without limitation. Unlimited loss carry-forwards in the Netherlands have no longer been permissible
since legislation was amended in 2010. Losses from 2004 in the amount of € 7,000 were thus not eligible for carrying for-
ward in the 2013/2014 financial year. As at the 2014/2015 financial year, loss carry-forwards in the amount of around
€ 9,000 p.a. will expire. In the Czech Republic, loss carry-forwards can be brought forward for five years.
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Deferred tax assets may be posted only to the extent that the future realisation of the relevant advantage is sufficiently
probable or if they are countered by deferred tax liabilities. Correspondingly, as at 31 August 2014 and 31 August 2013,
the value of the tax claims arising from loss carry-forwards, which Sinner Schrader assumes it will not be able to realise
in the foreseeable future, was adjusted. The value of the loss carry-forwards in the United Kingdom and the Netherlands
was also adjusted because the operating business in these countries continues to be on hold. The same applies to tax
claims from loss carry-forwards of a German subsidiary predating consolidation because realisation cannot be predicted
with adequate probability.
The deferred tax claims are to be calculated according to IAS 12.48 on the basis of the currently valid tax rates. A statu-
tory tax rate of 32.3 % thus applied for calculating the deferred tax assets and liabilities of the companies located in
Hamburg as at 31 August 2014 and at 31 August 2013. It was made up of the trade tax rate of 16.5 %, the corporation tax
rate of 15 %, and the solidarity surcharge of 5.5 % on the corporation tax.
Tax rates of 23 % and 25 %, respectively, were valid for the companies in the UK and the Netherlands as at 31 August 2014
and 31 August 2013. A tax rate of 19 % applies for the company in the Czech Republic.
The amounts of the loss carry-forwards and the tax rates applied for their valuation are listed in Table 12c:
table 12c loss carry-forwards and statutory income tax rates in €
31.08.2014 31.08.2013
foR coRpoRAte tAX loSS cARRy-foRwARdS
tAX RAte loSS cARRy-foRwARdS
tAX RAte
Germany –3,660,355 15.8 %1) –2,893,816 15.8 %1)
Great Britain –1,305,568 23.0 % –1,271,159 23.0 %
Netherlands –88,331 25.0 % –86,529 25.0 %
Czech Republic –179,239 19.0 % –23,970 19.0 %
31.08.2014 31.08.2013
foR municipAl tRAde tAX loSS cARRy-foRwARdS
tAX RAte loSS cARRy-foRwARdS
tAX RAte
Germany –4,254,813 16.5 % –3,593,516 16.5 %
Great Britain — — — —
Netherlands — — — —
Czech Republic — — — —
1) 15 % corporate tax plus 5.5 % solidarity surcharge on the corporation tax
The deferred tax assets and liabilities were posted separately for every tax subject for identification on the Consolidated
Balance Sheets
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The tax expenditure or income identified in the Consolidated Statements of Operations deviates from the value that
would result from the use of the statutory tax rates on the pre-tax profits. Table 12d explains the difference between the
calcu lated tax expenditure or income on the basis of the statutory tax rate and the tax expenditure or income recorded
in the Consolidated Statements of Operations for the 2013/2014 and 2012/2013 financial years:
table 12d tax reconcil iat ion in €
2013/2014 2012/2013
Income before income taxes 2,989,755 442,268
Statutory tax rate in Germany 32.28 % 32.28 %
Tax provision (+), tax credit (–) 964,943 142,742
Non-deductible expenses for share-based compensation 7,806 12,427
Other non-deductible expenses/non-taxable income 50,007 37,793
Recognition of previously unrecognised tax losses carried forward — –125,562
Change in valuation allowances for deferred tax assets in domestic Group companies 32,743 383,812
Change in valuation allowances for deferred tax assets in foreign Group companies 45,248 17,089
Differences in tax rates 36,116 3,798
Taxes for previous years –9,519 –36,499
Other 19,174 5,381
Income tax corresponding to income statement 1,146,518 440,981
5.6 earningS per Share
The derivation of the undiluted and diluted earnings per share for the 2013/2014 and 2012/2013 financial years is shown
in Table 13:
table 13 earnings per share in € and number
2013/2014 2012/2013
Net income 1,843,237 1,287
Basis weighted average shares of common stock outstanding 11,140,220 11,137,972
Basic earnings per share 0.17 0.00
Weighted average shares of common stock outstanding 11,140,220 11,137,972
add: stock option grant 113,854 —
Diluted average share of common stock outstanding 11,254,075 11,137,972
Diluted earnings per share 0.16 0.00
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6 additional information on the StatementS of caSh flow
6.1 intereSt received and intereSt paid
In the 2013/2014 financial year, Sinner Schrader received interest in the amount of € 13,467 (previous year: € 47,833)
and paid € 9,106 (previous year: € 18,409) in interest and similar expenses.
6.2 taX paymentS
In the 2013/2014 financial year, € 8,054 (previous year: € 8,244) were paid in investment income tax. Advance payments of
corporation tax and commercial tax in the amount of € 178,822 (previous year: € 202,599) and € 211,066 (previous year:
€ 220,014), respectively, were made for the current financial year. Retroactive advance payments of corporation tax for the
2012/2013 financial year were incurred in the amount of € 15,381. Furthermore, in the 2013/2014 financial year, corpor-
ation tax in the amount of € 47,575 and commercial tax in the amount of € 59,013 were paid from tax liabilities for the
2011/2012 financial year. Tax reimbursements in the amount of € 10,442 resulted from the corporation tax assessment
for the 2011/2012 financial year. The corresponding tax receivables were adjusted as at 31 August 2012.
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7 Share-BaSed compenSation
7.1 StocK option planS
Sinner Schrader StocK option plan 2007In January 2007, the Annual General Meeting of Sinner Schrader AG approved the Sinner Schrader Stock Option Plan 2007
(“2007 Plan”), which provides for the granting of stock options to allocate a total of 600,000 shares to the members of
the Management Board of Sinner Schrader AG and to the members of the management of the affiliated companies as well
as to selected employees performing managerial tasks within Sinner Schrader AG and affiliated companies. The options
had been allocated by 31 December 2011.
Options granted under the 2007 Plan have an exercise price of at least the mean value of the closing price of Sinner-
Schrader AG shares in the Xetra trading system of Deutsche Börse AG (or an equivalent successor system) during the five
trading days prior to the allocation date. The options can be exercised in equal instalments of one-third each three, four,
and five years, respectively, after allocation at the earliest. The options of the first third may be exercised only if the mean
value of the closing price of Sinner Schrader AG shares in the Xetra trading system of Deutsche Börse AG (or an equiva-
lent successor system) during the five trading days before the day of exercise (reference price) is 30 % above the exercise
price. The options of the second third may be exercised only if the reference price is 40 % above the exercise price. The
options of the last third may be exercised only if the reference price is 50 % above the exercise price. The latest exercise
period is seven years after the allocation date. In the 2013/2014 financial year, 150,000 options were exercised at an
aver age exercise price of € 1.65, and 75,000 options with an average exercise price of € 2.42 were annulled. In the preced-
ing financial years, 545,000 options at an average exercise price of € 1.95 were allocated, of which 75,000 options were
annulled in the 2012/2013 financial year.
Sinner Schrader StocK option plan 2012In a resolution of 20 December 2012, the Annual General Meeting of Sinner Schrader AG adopted the 2012 Sinner Schrader
Stock Option Plan to grant stock options for the sale of a total of 550,000 shares to members of the Management Board of
Sinner Schrader AG (100,000 options) and members of the management of the companies affiliated with Sinner Schrader
AG (300,000 options) as well as selected employees with management functions in Sinner Schrader AG and the com-
panies affiliated with Sinner Schrader AG (150,000 options).
The exercise price for options granted as part of the 2012 Plan may not be less than the average of the closing prices of
the shares in Sinner Schrader AG in the Xetra trading system of Deutsche Börse AG (or a corresponding successor system)
on the twenty trading days prior to the date of allocation, but not less than the lowest issue price within the meaning of
Article 9 para. 1 of the German Stock Corporation Act (AktG). The options may be exercised at the earliest four years after
their allocation. The options may not be exercised until the average of the closing prices of the shares in Sinner Schrader
AG in the Xetra trading system of Deutsche Börse AG (or a corresponding successor system) exceeds the exercise price
by not less than 40 % on the twenty trading days prior to the exercise date (reference price). In addition to the absolute
earnings target, another relative earnings target has been specified for exercising the subscription rights granted to mem-
bers of the Management Board. This target requires that the share price of Sinner Schrader AG develops better than
the TecDAX. The latest exercise period for options granted in the 2012 Plan is seven years after their date of allocation.
In the 2013/2014 financial year, 40,000 options from the 2012 Stock Option Plan were allocated at an average exercise
price of € 2.43, and 15,000 options for an average exercise price of € 1.65 were to be cancelled. In the previous financial
year, 125,000 employee options had been issued at an average exercise price of € 1.65.
The total expenditure for share-based compensation where the return is recorded immediately with an effect on expen-
diture is € 7,806 (previous year: € 38,503) and results entirely from compensation with shareholders’ equity instruments.
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Table 14a shows the parameters used to assess the newly allocated options in the 2013/2014 and 2012/2013 financial
years on the basis of a binomial model according to Cox/Ross/Rubenstein:
table 14a parameters for valuat ion of stock opt ions at the date of issue
2013/2014 2012/2013
Expected life of option 4.5 Years 4.5 Years
Risk-free interest rate 0.89 % 0.77 %
Expected dividend yield 5 % 5 %
Expected volatility 39 % 38 %
Exercise price € 2.43 1.65
Price at valuation date € 2.57 1.65
The earliest possible exercising of the options was assumed when the options were assessed. The volatility was
determined by the closing prices of the last 840, 1,080, and 1,320 trading days before the date of issue.
Table 14b summarises the changes in the number of options outstanding in the 2013/2014 and 2012/2013 financial years:
table 14b outstanding stock opt ions in € and number
numbeR of
optionS
weighted AveRAge
eXeRciSe pRice
weighted AveRAge gRAnt dAte
fAiR vAlue
Outstanding at 31 August 2012 536,668 1.95 0.53
Granted 125,000 1.65 0.30
Exercised — — —
Cancelled –75,000 2.21 0.43
Expired — — —
Outstanding at 31 August 2013 586,668 1.85 0.49
Granted 40,000 2.43 0.63
Exercised –150,000 1.65 0.69
Cancelled –90,000 2.29 0.44
Expired — — —
Outstanding at 31 August 2014 386,668 1.89 0.44
Additional information on all options outstanding on 31 August 2014 is listed in Table 14c:
table 14c outstanding stock opt ions according to exercise price in € , number and years
optionS outStAnding optionS eXeRciSAble
RAnge of
eXeRciSe pRice in €
numbeR weighted AveRAge RemAining
contRActuAl life in yeARS
weighted AveRAge
eXeRciSe pRice in €
numbeR weighted AveRAge eXeRciSe
pRice in €
31.08.2013 0.00–5.00 586,668 3.20 1.85 250,002 1.63
31.08.2014 0.00–5.00 386,668 3.72 1.89 281,670 1.68
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8 riSK and capital management
8.1 liquidity riSK
Liquidity risks result from potential financial bottlenecks and the increased refinancing costs caused by them. The goal of
liquidity management at Sinner Schrader is to ensure continual solvency within the agreed payment terms through suffi-
cient liquid funds. The Group monitors these liquid funds, and only the free liquidity not considered necessary to balance
out fluctuations in cash flows is invested for longer terms. Furthermore, when longer-term investments are made, the
Group ensures that these investments are only made in securities that can be sold at any time. Credit lines of € 2 million
and € 2.5 million, respectively, were agreed with two banks in order to avoid shortages of liquidity in the short term; they
had, however, not been utilised on the reporting date.
8.2 credit riSK
Credit risks arise for Sinner Schrader in that, after services have been provided, the services are invoiced with the pay-
ment terms agreed with the client, but clients do not always meet the resulting payment obligations. Sinner Schrader
reduces this risk by carrying out regular credit checks on new clients and by regularly monitoring its clients’ outstanding
payment obligations. In the 2013/2014 financial year, as in past years, Sinner Schrader had no major bad debt losses to
report or reserves for bad debt to form, despite the financial and economic crisis.
Furthermore, Sinner Schrader faces credit risks from holding free liquid funds in bank balances and from investing this
liquidity in the capital market. Sinner Schrader reduces this risk through the selection of its bank partners and cooper-
ation with several different banks and by restricting the credit rating of the investment instruments to a minimum rating
of BBB, or A3 for short-term investments.
The maximum failure rate results from the book values of the financial assets posted in the balance sheet and from the
current values of the securities posted. Sinner Schrader held no securities as at 31 August 2014.
8.3 marKet riSKS
currency riSKSSince Sinner Schrader calculates its revenues exclusively in euros, its suppliers primarily issue invoices in euros, and the
Company holds no notable assets in foreign currencies, the Group faces no major foreign currency risks. Sinner Schrader
incurred currency losses in the amount of € 5,248 in the 2013/2014 financial year as part of the founding of Sinner-
Schrader Praha s.r.o. in Prague as an economically dependent unit, and as part of the qualification of the euro as the func-
tional currency of this subsidiary.
intereSt riSKSThe Company had no substantial interest-bearing financial liabilities and nor had it made any interest-bearing invest-
ments on the balance sheet date. There were thus no interest-rate risks as at 31 August 2014.
However, due to the investment policy based on security and the quick convertibility into cash with short terms, the
financial crisis of recent years resulting in the fall in interest rates continued to have a negative impact on the financial
result of the 2013/2014 financial year because re-investment of liquidity that became available was only possible at
lower interest rates.
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eXchange riSKSAs at 31 August 2014, Sinner Schrader did not hold any shares in other companies listed on the stock exchange.
The Group therefore faced no exchange risks.
8.4 capital management
Sinner Schrader fundamentally pursues the goal of securing its shareholders’ equity base for the long term and
achieving a suitable return on its capital. A high level of shareholders’ equity is also aimed at because it supports the
independence and competitiveness of the Company. Sinner Schrader’s capital management also aims to ensure that
the operating companies will continue to operate and to finance organic and inorganic growth.
On 31 August 2014, the Sinner Schrader shareholders’ equity rate was 51.6 % (previous year: 52.4 %). The shareholders’
equity return – the ratio of the net profit to shareholders’ equity on the balance sheet date – was 17.5 % and 0.0 % for the
2013/2014 and 2012/2013 financial years, respectively.
Reference is made to the Consolidated Statement of Changes in Shareholders’ Equity and section 4.8 (Shareholders’
Equity) in these Notes for the composition of the shareholders’ equity.
9 related party tranSactionS
In the 2013/2014 and 2012/2013 financial years, subsidiaries of Sinner Schrader AG earned revenue in the amount of
€ 2,340,353 and € 4,526,404, respectively, with companies of a group of companies in which members of the Supervisory
Board of Sinner Schrader held positions relevant to decision-making. The total of unbilled services and accounts
receiv able vis-à-vis these companies was € 466,473 and € 556,301, respectively, on 31 August 2014 and 31 August 2013.
The related party transactions were carried out under the usual market conditions.
9.1 management Board
In the 2013/2014 financial year, the following people were appointed to the Management Board:
• Matthias Schrader
• Businessman, Hamburg, Germany, Chairman
• Thomas Dyckhoff,
• Businessman, Hamburg, Germany, Finance Director
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The Management Board members conducted their activities as their principal profession. Table 15a shows
the compensation for the members of the Management Board in the 2013/2014 financial year; the comparative data
of the previous year can be seen in Table 15b:
table 15a compensation of the management Board members 2013/2014 in €
non peRfoRmAnce- RelAted
compenSAtion
peRfoRmAnce-RelAted
compenSAtion
compenSAtion componentS with A long-teRm
incentive effect
fiXed SAlARy otheR benefitS ShoRt-teRm objectiveS
medium-teRm objectiveS
ShARe-bASed compenSAtion
Matthias Schrader 190,000 6,650 77,274 — —
Thomas Dyckhoff 160,000 9,679 69,641 — —
Total 350,000 16,329 146,914 — —
table 15b compensation of the management Board members 2012/2013 in €
non peRfoRmAnce- RelAted
compenSAtion
peRfoRmAnce-RelAted
compenSAtion
compenSAtion componentS with A long-teRm
incentive effect
fiXed SAlARy otheR benefitS ShoRt-teRm objectiveS
medium-teRm objectiveS
ShARe-bASed compenSAtion
Matthias Schrader 190,000 7,010 25,000 — —
Thomas Dyckhoff 153,333 5,746 18,000 — —
total 343,333 12,756 43,000 — —
The total compensation of the Management Board in the 2013/2014 financial year was € 513,243 (previous year:
€ 399,089). Expenses for the D&O insurance are not reported under other benefits in accordance with the rules specified
by DRS 17 of the German Accounting Standards. Premiums in the 2013/2014 financial year were € 16,669, unchanged
from the previous year.
In the 2013/2014 financial year, reserves in the amount of € 25,000 and € 15,000, respectively, were accumulated in
the personnel costs for Mr Schrader and Mr Dyckhoff for variable compensation on the basis of medium-term goals. The
reserves will not be shown as compensation for the Management Board until all the conditions relating to payment
are met. Due to the development of business conducted by the Sinner Schrader Group, no compensation on the basis of
medium-term goals became due in the previous financial year.
The members of the Management Board are subject to a post-contractual ban on competition that makes provision for
compensation in the amount of 50 % of the most recently received non performance-related compensation. With respect
to the severance payments, it has been agreed with the members of the Management Board that they must comply with
the recommendations of the Corporate Governance Code No. 4.2.3.
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9 .2 SuperviSory Board
In the 2013/2014 financial year, the Supervisory Board had the following members:
• Dieter Heyde, Chairman
• MBA, Bad Nauheim, Germany
• Managing Partner of SALT Solutions GmbH, Würzburg, Germany
• Member of the Advisory Board of CCP Software GmbH, Marburg, Germany
• Prof. Cyrus D. Khazaeli, Deputy Chairman
• Communications Designer, Berlin, Germany
• Professor of Communication and Interaction Design at
Berliner Technische Kunsthochschule [Berlin Technical Academy of Art], Berlin, Germany
• Philip W. Seitz
• Lawyer, Hamburg, Germany
• General Counsel & Director of Government Affairs of Tchibo GmbH, Hamburg, Germany
Table 16a shows the compensation of the Supervisory Board members in the 2013/2014 financial year; the comparative
data of the previous year can be seen in Table 16b:
table 16a compensation of the Supervisory Board members 2013/2014 in €
fiXed SAlARy
vARiAble componentS
Dieter Heyde 20,000 —
Prof. Cyrus D. Khazaeli 12,500 —
Philip W. Seitz 12,500 —
Total 45,000 —
table 16b compensation of the Supervisory Board members 2012/2013 in €
fiXed SAlARy
vARiAble componentS
Dieter Heyde 20,000 —
Prof. Cyrus D. Khazaeli 12,500 —
Philip W. Seitz 12,500 —
total 45,000 —
In line with the rules of DRS 17, the premium for the D&O insurance is not to be posted as compensation for the
Super visory Board either. In the 2013/2014 financial year, the share of the premium accounted for by the Supervisory
Board was unchanged over the previous year at € 834.
10 maJor eventS after the Balance Sheet date
On 4 November 2014 resolutions and contracts concerning a merger of mediaby GmbH and NEXT AUDIENCE GmbH were
all notarised with retroactive effect as at 1 September 2014 and reported for entry in the Commercial Register.
There were no other major events after the end of the 2013/2014 financial year that should be reported.
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1 1 Supplementary information required By the german commercial code
11.1 participationS
The participations held by Sinner Schrader Aktiengesellschaft are broken down as follows:
table 17 part ic ipat ions of Sinner Schrader ag
compAny ShARe in % cuRRency nominAl cApitAl
ShAReholdeRS’ cApitAl
lASt AnnuAl ReSult
pRofit/loSS tRAnSfeR
AgReement
RepoRting peRiod
Sinner Schrader Deutschland
GmbH, Hamburg, Germany 100.00 EUR 75,000 75,000 4,610,3831) yes 01.09.13–31.08.14
mediaby GmbH,
Hamburg, Germany 100.00 EUR 25,000 221,433 70,412 no 01.09.13–31.08.14
Commerce Plus GmbH,
Hamburg, Germany 100.00 EUR 25,000 1,490,651 127,9861) yes 01.09.13–31.08.14
Commerce Plus Consulting
GmbH,
Hamburg, Germany2) 100.00 EUR 25,000 25,000 –46,2071) yes 01.09.13–31.08.14
Sinner Schrader UK Ltd.,
London, Great Britain3) 100.00 GBP 100,000 –771,548 –28,336 no 01.09.13–31.08.14
Sinner Schrader Benelux BV,
Rotterdam, Netherlands3) 100.00 EUR 18,000 –236,235 –10,217 no 01.01.12–31.12.13
NEXT AUDIENCE GmbH,
Hamburg, Germany 100.00 EUR 765,400 306,722 –671,016 no 01.09.13–31.08.14
Sinner Schrader Content
GmbH,
Hamburg, Germany
(formerly newtention services
GmbH)4) 100.00 EUR 25,000 54,759 1,282,8971) yes 01.09.13–31.08.14
Sinner Schrader Mobile GmbH,
Berlin, Germany 100.00 EUR 25,000 530,497 –196,497 no 01.09.13–31.08.14
Sinner Schrader Praha s.r.o.,
Prague, Czech Republic 100.00 CZK 200,000 –5,424,746 –2,965,448 no 01.11.13–31.08.14
1) Before profit-transfer2) The company is a 100 % subsidiary of the Commerce Plus GmbH.3) The company’s activities have currently been temporarily discontinued; respective shares were written off in the year the activity was discontinued.
Audited financial statements of the company are not available. 4) The company is a 100 % subsidiary of the NEXT AUDIENCE GmbH.
11.2 uSe of article 264 para. 3 hgB
Sinner Schrader Deutschland GmbH, Hamburg, Commerce Plus GmbH, Hamburg, and Commerce Plus Consulting GmbH,
Hamburg, will each make use of the exemption provision of Article 264 para. 3 HGB for the Annual Report of 31 August 2014.
11.3 employeeS
In the 2013/2014 financial year, the Sinner Schrader Group had an average 489 employees, 12 of which were members of
the Management Board or managing directors of Group companies and 122 were apprentices, students or interns.
In the previous year, there was an average of 444 employees in the Group.
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1 1 .4 auditorS’ fee
€ 101,500 were spent on the auditing of the Annual Report and the Consolidated Financial Statements as at 31 August
2014, thereof € 20,000 for certification services in the previous year. BDO AG Wirtschaftsprüfungsgesellschaft received a
further € 1,000 for other certification services.
11.5 directorS’ holdingS of ShareS and SuBScription rightS to ShareS (directorS’ dealingS)
Table 18 shows the number of shares in Sinner Schrader AG and the number of subscription rights to shares held by
directors of Sinner Schrader AG as at 31 August 2013 and any changes in the 2013/2014 financial year:
table 18 Shares and options of the Board members in number
ShAReS 31.08.2013 AdditionS diSpoSAlS 31.08.2014
Management Board:
Matthias Schrader 2,455,175 121,114 — 2,576,289
Thomas Dyckhoff 74,950 — — 74,950
Total shares of the Management Board 2,530,125 121,114 — 2,651,239
Supervisory Board:
Dieter Heyde — — — —
Prof. Cyrus D. Khazaeli — — — —
Philip W. Seitz — — — —
Total shares of the Supervisory Board — — — —
Total shares of the Board members 2,530,125 121,114 — 2,651,239
optionS 31.08.2013 AdditionS diSpoSAlS 31.08.2014 cuRRent vAlue of eAch SubScRiption
Right on the dAte of gRAnting
Management Board:
Matthias Schrader — — — —
Thomas Dyckhoff 120,000 — — 120,000 € 0.49
Total options of the Management Board 120,000 — — 120,000
Supervisory Board:
Dieter Heyde — — — —
Prof. Cyrus D. Khazaeli — — — —
Philip W. Seitz — — — —
Total options of the Supervisory Board — — — —
Total options of the Board members 120,000 — — 120,000
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1 1 .6 information according to article 160 para. 1 no. 8 of the german StocK corporation act
As at 31 August 2014, the participating interests in the Company, which have been notified according to Article 21 para. 1
of the German Securities Trading Act (“WpHG”) and published below according to Article 26 para. 1 of the German Secur-
ities Trading Act, were as follows:
1. CLEF Trading AG, Beckenried, Switzerland, notified us on 25 May 2014 pursuant to Article 21 para. 1 of the German
Securities Trading Act that its share of the voting rights in Sinner Schrader AG, Hamburg, Germany, had exceeded the
threshold of 3 % of the voting rights on 22 May 2014 and had amounted to 3.4720 % on this date (equivalent to 400,767
voting rights).
2. Mr Alexander Spohr, Germany, notified us on 2 December 2013 pursuant to Article 21 para. 1 of the German Securities
Trading Act that his share of the voting rights in Sinner Schrader AG, Hamburg, Germany, fell below the thresholds of
30 %, 25 %, 20 %, 15 %, 10 %, 5 % and 3 % of the voting rights on 28 November 2013 and had amounted to 0.1487 % on
this date (equivalent to 17,165 voting rights).
3. On 29 August 2012, Sinner Schrader Aktiengesellschaft, Völckersstraße 38, 22765 Hamburg, Germany, announced in
accordance with Article 26 para. 1 sentence 2 of the German Securities Trading Act that its share of treasury stock
had exceeded the threshold of 3 % on 28 August 2012, and that as at this date it held a share of 3.0022 % (correspond-
ing to 346,539 no-par value shares) of all the shares issued by Sinner Schrader Aktiengesellschaft.
4. Debby Vermögensverwaltung GmbH, Munich, Germany, notified us on 11 December 2008 pursuant to Article 21
para. 1 of the German Securities Trading Act that on 12 September 2008, its share of voting rights in Sinner Schrader
AG, Völckersstraße 38, 22765 Hamburg, Germany, WKN 514190, ISIN DE 0005141907, fell below the thresholds of
30 %, 25 %, 20 %, 15 %, 10 %, 5 %, and 3 % and was 0.00 % (0 voting rights) as at this date.
Debby Vermögensverwaltung GmbH, Germany, acting on its own behalf and on behalf of the persons mentioned under
letters b. to e., notified us on 20 January 2005, pursuant to Article 21 para. 1 of the German Securities Trading Act, of
the following:
a. Debby Vermögensverwaltung GmbH, Germany, received notification on 20 January 2005 that its share of voting
rights in Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 due to sales in the syndicate and
now amounts to 49.1231 %, whereby it has a share of voting rights of 37.8823 % under the terms of Article 22
para. 2 of the German Securities Trading Act.
b. Mr Wolfgang Herz, Germany, received notification on 17 January 2005 that his share of voting rights in Sinner-
Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby he has a
share of voting rights of 4.9713 % under the terms of Article 22 para. 1 No. 2 of the German Securities Trading Act
and a share of voting rights of 44.1518 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
c. Ms Agneta Peleback-Herz, Germany, received notification on 17 January 2005 that her share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby
she has a share of voting rights of 0.6491 % under the terms of Article 22 para. 1 No. 2 of the German Securities
Trading Act and a share of voting rights of 48.474 % under the terms of Article 22 para. 2 of the German Securities
Trading Act.
d. Mr Michael Herz, Germany, received notification on 17 January 2005 that his share of voting rights in Sinner-
Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby he has a
share of voting rights of 4.9713 % under the terms of Article 22 para. 1 No. 2 of the German Securities Trading Act
and a share of voting rights of 44.1518 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
e. Ms Cornelia Herz, Germany, received notification on 17 January 2005 that her share of voting rights in Sinner-
Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby she has
a share of voting rights of 0.6491 % under the terms of Article 22 para. 1 No. 2 of the German Securities Trading Act
and a share of voting rights of 48.474 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
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5. Thomas Dyckhoff, Germany, informed us of the following as at 9 February 2007, as a correction to his notifications
of 18 January 2007 made on the basis of the state of knowledge as at 15 January 2007, on his own behalf and as an
agent and by proxy for the persons mentioned under letters b. to e., pursuant to Article 21 para. 1 of the German
Securities Trading Act:
a. The share of voting rights of Mr Thomas Dyckhoff, Germany, in Sinner Schrader AG, Völckersstraße 38, 22765 Ham-
burg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (corresponding to
5,761,106 shares). Of this, 49.4782 % of the voting rights (5,711,156 shares) were assigned to him pursuant to
Article 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of voting rights
of the following shareholders, whose shares of voting rights were 3 % or more each, were added to this pursuant
to Article 22 para. 2 sentence 1 of the German Securities Trading Act: Matthias Schrader, Oliver Sinner, and Debby
Vermögensverwaltung GmbH.
b. The share of voting rights of Mr Matthias Schrader, Germany, in Sinner Schrader AG, Völckersstraße 38, 22765 Ham-
burg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (corresponding to
5,761,106 shares). Of this, 29.6154 % of the voting rights (3,418,431 shares) were assigned to him pursuant to
Article 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of voting rights
of the following shareholders, whose shares of voting rights were 3 % or more each, were added to this pursuant
to Article 22 para. 2 sentence 1 of the German Securities Trading Act: Oliver Sinner and Debby Vermögensverwal-
tung GmbH.
c. The share of voting rights of Mr Oliver Sinner, Germany, in Sinner Schrader AG, Völckersstraße 38, 22765 Hamburg,
fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (corresponding to 5,761,106
shares). Of this, 40.8211 % of the voting rights (4,711,879 shares) were assigned to him pursuant to Article 22 para. 2
sentence 1 of the German Securities Trading Act. Among other things, the shares of voting rights of the following
shareholders, whose shares of voting rights were 3 % or more each, were added to this pursuant to Article 22 para. 2
sentence 1 of the German Securities Trading Act: Matthias Schrader and Debby Vermögensverwaltung GmbH.
d. The share of voting rights of Mr Detlef Wichmann, Germany, in Sinner Schrader AG, Völckersstraße 38,
22765 Hamburg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (corres-
ponding to 5,761,106 shares). Of this, 48.9147 % of the voting rights (5,646,106 shares) were assigned to him
pursuant to Article 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of
voting rights of the following shareholders, whose shares of voting rights were 3 % or more each, were added to
this pursuant to Article 22 para. 2 sentence 1 of the German Securities Trading Act: Matthias Schrader, Oliver Sinner,
and Debby Vermögensverwaltung GmbH.
e. The share of voting rights of Mr Sebastian Dröber, Germany, in Sinner Schrader AG, Völckersstraße 38,
22765 Hamburg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (corres-
ponding to 5,761,106 shares). Of this, 49.3045 % of the voting rights (5,691,106 shares) were assigned to him
pursuant to Article 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of
voting rights of the following shareholders, whose shares of voting rights were 3 % or more each, were added to
this pursuant to Article 22 para. 2 sentence 1 of the German Securities Trading Act: Matthias Schrader, Oliver Sinner,
and Debby Vermögensverwaltung GmbH.
6. Mr Holger Blank, Germany, notified us on 19 January 2005, pursuant to Article 21 para. 1 of the German Securities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that his share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby he
has a share of voting rights of 49.1223 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
7. Mr Bernward Beuleke, Germany, notified us on 19 January 2005, pursuant to Article 21 para. 1 of the German
Securities Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that his share of voting
rights in Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.2256 %,
whereby he has a share of voting rights of 49.0718 % under the terms of Article 22 para. 2 of the German Securities
Trading Act.
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8. Mr Dirk Lehmann, Germany, notified us on 19 January 2005, pursuant to Article 21 para. 1 of the German Securities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that his share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1322 %, whereby he
has a share of voting rights of 49.0718 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
9. Ms Marion Sinner, Germany, notified us on 19 January 2005, pursuant to Article 21 para. 1 of the German Securities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that her share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby she
has a share of voting rights of 49.0365 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
10. Ms Jessica Schmidt, Germany, notified us on 19 January 2005, amended on 4 February 2005, pursuant to Article 21
para. 1 of the German Securities Trading Act and in conjunction with Article 22 of the German Securities Trading Act,
that her share of voting rights in Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now
amounts to 49.1244 %, whereby she has a share of voting rights of 48.9065 % under the terms of Article 22 para. 2 of
the German Securities Trading Act.
11. Dr Markus Conrad, Germany, notified us on 20 January 2005, pursuant to Article 21 para. 1 of the German Securities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that he received notification on
17 January 2005 to the effect that his share of voting rights in Sinner Schrader AG fell below the threshold of 50 % on
12 January 2005 due to sales in the syndicate and now amounts to 49.1231 %, whereby he has a share of voting rights
of 48.0185 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
12. Mr Gerd Stahl, Germany, notified us on 4 July 2003, amended on 10 July 2003, pursuant to Article 21 para. 1 of the
German Securities Trading Act in conjunction with Article 22 of the German Securities Trading Act, in accordance with
the obligation on his part and as an agent and by proxy for the persons mentioned under letters b. to c., that:
a. On 30 June 2003, the share of voting rights of Mr Gerd Stahl, Germany, fell below the threshold of 50 % of the voting
rights in Sinner Schrader AG. He is now entitled to 49.95 % of the voting rights in Sinner Schrader AG pursuant to
Article 21 para. 1 of the German Securities Trading Act, of which 47.18 % of the voting rights are to be assigned un-
der the terms of Article 22 para. 2 of the German Securities Trading Act.
b. On 30 June 2003, the share of voting rights of Mr Alexander Spohr, Germany, fell below the threshold of 50 % of the
voting rights in Sinner Schrader AG. He is now entitled to 49.95 % of the voting rights in Sinner Schrader AG pursuant
to Article 21 para. 1 of the German Securities Trading Act, of which 47.69 % of the voting rights are to be assigned
under the terms of Article 22 para. 2 of the German Securities Trading Act.
c. On 30 June 2003, the share of voting rights of Mr Matthias Fricke, USA, fell below the threshold of 50 % of the voting
rights in Sinner Schrader AG. He is now entitled to 49.95 % of the voting rights in Sinner Schrader AG pursuant to
Article 21 para. 1 of the German Securities Trading Act, of which 47.85 % of the voting rights are to be assigned un-
der the terms of Article 22 para. 2 of the German Securities Trading Act.
11.7 declaration of conformity on the acceptance of recommendation of the “government commiSSion on the german corporate governance code”
On 18 December 2013 the Management Board and Supervisory Board submitted the Declaration of Conformity with the
Corporate Governance Code required under Article 161 of the German Stock Corporation Act and made it permanently
available to shareholders on the Company’s website.
Hamburg, 17 November 2014
The Management Board
Matthias Schrader Thomas Dyckhoff
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Auditor’s report
We have audited the consolidated financial statements prepared by the SinnerSchrader Aktiengesellschaft, Hamburg, comprising the
statement of financial position, the statement of comprehensive income, the statement of changes in equity, the statement of cash
flows and the notes to the consolidated financial statements, together with the group management report for the financial year from
September 1, 2013 to August 31, 2014. The preparation of the consolidated financial statements and the group management report in
accordance with IFRSs as adopted by the EU, and the additional requirements of German commercial law pursuant to § 315a(1) of
the HGB and the supplementary provisions of the articles of association are the responsibility of the legal representatives of the parent
company. Our responsibility is to express an opinion on the consolidated financial statements and on the group management report
based on our audit.
We conducted our audit of the consolidated financial statements in accordance with § 317 of the HGB and the German generally
accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in
Germany] (IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presen-
tation of the net assets, financial position and results of operations in the consolidated financial statements in accor¬dance with the
applicable financial reporting framework and in the group management report are detected with reasonable assurance. Knowledge of
the business activities and the economic and legal environment of the group and expectations as to possible misstatements are taken
into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the
evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily
on a test basis within the framework of the audit. The audit includes assessing the financial information of those components consoli-
dated, the scope of the consolidation, the accounting and consolidation principles used and the significant estimates made by manage-
ment, as well as evaluating the overall presentation of the consolidated financial statements and the group management report. We
believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRSs as adopted by the EU, the
additional requirements of German commercial law pursuant to § 315a(1) of the HGB and the supplementary provisions of the articles
of association and give a true and fair view of the net assets, financial position and results of operations of the group in accordance
with these requirements. The group management report is consistent with the consolidated financial statements and as a whole pro-
vides a suitable view of the group’s position and suitably presents the opportunities and risks of future development.
Hamburg, 21 November 2014
BDO AG
Wirtschaftsprüfungsgesellschaft
signed Glaser signed ppa. Reisener
(German Public Auditor) (German Public Auditor)
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reSponSIBILItY Statement
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements of the
SinnerSchrader Group and the annual financial statements of SinnerSchrader Aktiengesellschaft give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group an the AG, and the joint consolidated status report and group status report
includes a fair review of the development and performance of the business and the position of the Group an the AG, together with a
description of the principal opportunities and risks associated with the expected development of the Group an the AG.
Hamburg, 17 November 2014
The Management Board
Matthias Schrader Thomas Dyckhoff
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Joint StatuS report
conSolidated financial StatementS
annual financial StatementS
further information
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BaLance SheetSaS at 31 auguSt 2014
Assets in € 31.08.2014 31.08.2013
Fixed assets
Intangible assets:
Concessions, industrial property rights and similar rights, and assets, as well as licences in such rights and assets 146,760 49,791
Tangible assets:
Other equipment, plant, and office equipment 669,661 560,499
Leasehold improvements 65,205 58,727
Total tangible assets 734,866 619,226
Financial assets:
Shares in affiliated companies 27,713,487 29,213,487
Total financial assets 27,713,487 29,213,487
Total fixed assets 28,595,113 29,882,504
Current assets
Receivables and other assets:
Trade receivables 1,547 20,630
Receivables from affiliated companies 3,376,274 523,427
Other assets 228,964 392,079
Total receivables and other assets 3,606,785 936,136
Cash on hand and in banks 1,800,861 4,474,960
Total current assets 5,407,646 5,411,096
Prepaid expenses 97,680 86,492
Total assets 34,100,439 35,380,092
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Liabilities and shareholders’ equity in € 31.08. 31.08.2013
Total shareholders’ equity
Subscribed capital (conditional capital: € 896,538; previous year: € 896,538) 11,542,764 11,542,764
Treasury stock –306,906 –420,152
Issued share capital 11,235,858 11,122,612
Capital surplus 2,690,465 2,674,203
Reserves:
Other reserves 15,758,120 17,710,143
Retained earnings/accumulated deficit 1,772,406 —
Total shareholders’ equity 31,456,849 31,506,958
Accruals
Accrued taxes 532,121 —
Other accrued liabilities 952,696 828,079
Total accrued liabilities 1,484,817 828,079
Liabilities
Trade payables 178,870 113,630
thereof with a remaining term up to one year: € 178,870 (previous year: € 113,587)
Liabilities to affiliated companies 197,995 1,954,860
thereof with a remaining term up to one year: € 197,995 (previous year: € 1,954,860)
Other liabilities 665,207 758,218
thereof with a remaining term up to one year: € 665,207 (previous year: € 758,218)
thereof taxes: € 665,207 (previous year: € 758,218)
Total liabilities 1,042,072 2,826,708
Prepaid expenses — 24,412
Deferred taxes 116,701 193,935
Total liabilities and shareholders’ equity 34,100,439 35,380,092
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StatementS oF operatIonSfor the 2013/2014 financial year
in € 2013/2014 2012/2013
Revenues 4,429,771 3,764,479
Other operating income 42,260 72,355
Material expenses:
Expenses for purchased services –3,680 –175,049
Total material expenses –3,680 –175,049
Personnel expenses:
Wages and salaries –2,317,361 –1,852,790
Social security –396,206 –339,661
Total personnel expenses –2,713,567 –2,192,451
Depreciation of intangible assets, property, and equipment –186,885 –166,026
Other operating expenses –2,735,930 –2,418,940
Income from participations 800,000 —
thereof from affiliated companies: € 800,000 (previous year: € 0)
Income from profit/loss transfer agreement 4,738,369 2,200,993
Other interest and similar income 26,406 67,129
thereof from affiliated companies: € 12,668 (previous year: € 27,584)
Writedowns on investments –3,480,000 –1,300,000
Expense from profit/loss transfer agreement — –721,106
Interest and similar expenses –51,533 –75,857
thereof from affiliated companies: € 43,508 (previous year: € 44,152)
Income from ordinary activities 865,211 –944,473
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in € 2013/2014 2012/2013
Income tax –1,092,061 –351,730
thereof deferred taxes: € 77,234 (previous year: € –193,935)
Other taxes –744 –329
Net income –227,594 –1,296,532
Withdrawal from revenue reserves:
from other revenue reserves 2,000,000 1,296,532
Net income 1,772,406 —
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noteS
1 Statutory foundationS
The annual report of Sinner Schrader Aktiengesellschaft (“Sinner Schrader AG” or “Company”) has been compiled in ac-
cordance with the regulations of the German Commercial Code (“Handelsgesetzbuch”) and the German Stock Corporation
Act (“Aktiengesetz”) as well as the additional provisions of the Statutes.
The company is deemed to be a large corporation within the meaning of Article 267 para. 3 sentence 2 of the German
Commercial Code (“HGB”) in conjunction with Article 264d of the HGB. The Statement of Operations was prepared using
the total-cost method according to Article 275 para. 2 of the HGB.
The assessment is carried out on the basis of a going concern assumption.
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2 accounting and valuation principleS
The report has been compiled in euros (€).
The intangible assets and the property and equipment are reported at acquisition costs, minus regular depreciation.
Depreciation is linear in accordance with the usage period. Depreciation for purchased software is linear over an esti-
mated usage period of three years. A usage period of three years is generally assumed for computer hardware, four to
eight years for other electronic and electrical devices and equipment and eight to thirteen years for office furniture.
Low-value assets are fully depreciated in the year of acquisition. Depreciation of leasehold improvements is linear over
the remaining term of the rental contract.
The financial assets are reported at the acquisition costs or the lower fair value on the balance sheet date if a permanent
reduction in value is anticipated.
If the value of the fixed assets determined according to the principles above is higher than the value to be ascribed to
them on the report date, this shall be taken account of by means of non-scheduled depreciation. If the reasons for depre-
ciation implemented in previous financial years no longer pertain, the original value will be reinstated.
Receivables and other assets are reported at their face value. Long-term, non-interest bearing accounts receivable with a
remaining term of more than one year will be subject to interest according to the average market rate of interest corres-
ponding to the remaining term and published by the Deutsche Bundesbank. Foreign currency receivables are all valued at
the original rate. Valuation is carried out at the average spot exchange rate on the balance sheet date for a remaining
term of up to one year. For a remaining term of more than one year, the valuation at the average spot exchange rate takes
account of the imparity principle as well as the principles of acquisition cost and of realisation.
Marketable securities are included on the balance sheet either at acquisition costs or at a value to be ascribed to them,
whichever is lower.
Cash on hand and credit with banks are recognised at their face value.
Other accrued expenses cover all identifiable risks and uncertain liabilities. Valuation is at the level of the amount to be
paid that is deemed necessary according to sound business judgement. Future increases in prices and costs were taken
into account when the obligation was assessed. Long-term reserves with anticipated settlement dates after one year will
be subject to interest according to the average market rate of interest corresponding to the remaining term and published
by the Deutsche Bundesbank.
Liabilities are reported at the amount to be paid. Long-term, non-interest bearing liabilities with a remaining term of more
than one year will be subject to interest according to the average market rate of interest corresponding to the remaining
term and published by the Deutsche Bundesbank. Foreign currency liabilities are all valued at the exchange rate on the
date of acquisition. Valuation is carried out at an average spot exchange rate on the balance sheet date for a remaining
term of up to one year. For a remaining term of more than one year, the valuation at the average spot exchange rate takes
account of the imparity principle as well as the principles of acquisition cost and of realisation.
Deferred taxes are formed in accordance with Article 274 para. 1 of the HGB for differences between the commercial
law valuation of assets, liabilities and deferred income and the tax law valuation of assets, which will probably diminish in
subsequent financial years. Tax loss carry-forwards are taken into account when calculating deferred tax assets in the
amount of the offsetting to be expected within the next five years. Deferred taxes are balanced in the balance sheet (Art-
icle 274 para. 1 sentence 2 of the HGB). If there is a tax reduction overall (asset surplus), capitalisation pursuant to Article
274 para. 1 sentence 2 of the HGB will not be exercised. Any tax burden is posted as a deferred tax liability in the balance
sheet. In the Statement of Accounts, a change in deferred taxes is posted separately under the item “Income tax”.
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3 eXplanationS of Balance Sheet itemS
3.1 fiXed aSSetS
The development of the Company’s fixed assets is shown in the following assets table:
table 1 assets table
acquiSition coStS IN € 01.09.2013 AdditionS diSpoSAlS 31.08.2014
Intangible assets:
Concessions, industrial property rights and similar rights and assets, as well as licences for
such rights and assets 612,174 143,752 — 755,926
Tangible assets:
Other equipment, plant and office equipment 1,445,986 222,935 18,056 1,650,865
Leasehold improvements 463,039 37,362 — 500,401
Total 1,909,025 260,297 18,056 2,151,266
Financial assets:
Shares in affiliated companies 31,291,087 1,980,000 — 33,271,087
Total 33,812,286 2,384,049 18,056 36,178,279
accumulated depreciation IN € 01.09.2013 AdditionS diSpoSAlS 31.08.2014
Intangible assets:
Concessions, industrial property rights and similar rights and assets,
as well as licences for such rights and assets 562,383 46,783 — 609,166
Tangible assets:
Other equipment, plant and office equipment 885,487 109,218 13,501 981,204
Leasehold improvements 404,312 30,884 — 435,196
Total 1,289,799 140,102 13,501 1,416,400
Financial assets:
Shares in affiliated companies 2,077,600 3,480,000 — 5,557,600
Total 3,929,782 3,666,885 13,501 7,583,166
net BooK valueS IN € 31.08.2013 31.08.2014
Intangible assets:
Concessions, industrial property rights and similar rights and assets,
as well as licences for such rights and assets 49,791 146,760
Tangible assets:
Other equipment, plant and office equipment 560,499 669,661
Leasehold improvements 58,727 65,205
Total 619,226 734,866
Financial assets:
Shares in affiliated companies 29,213,487 27,713,487
Total 29,882,504 28,595,113
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3 .2 receivaBleS and other aSSetS
As at 31 August 2014 receivables and other assets amounted to € 3,606,785 (previous year: € 936,136); of these,
receiv ables in the amount of € 86,685 (previous year: € 106,492) had a remaining term of more than one year.
All other receiv ables and other assets in the amount of € 3,520,100 (previous year: € 829,644) had a remaining term
of up to one year.
The receivables from affiliated companies in the amount of € 3,376,274 (previous year: € 523,427) included liabilities of
€ 7,659,700 (previous year: € 0) which were to be balanced as at 31 August 2014. The gross item comprises trade
accounts receivable in the amount of € 5,303,338 (previous year: € 156,621), receivables from the transfer of profits and
dividends in the amount of € 5,538,369, current loan receivables in the amount of € 192,051 (previous year: € 366,737),
and interest receivables in the amount of € 2,216 (previous year: € 69).
The net liabilities to affiliated companies as at the balance sheet date comprised the subsidiaries’ investment of liquid
funds in Sinner Schrader AG as part of central liquidity management in the amount of € 7,125,803, short-term loans in
the amount of € 530,967, and trade accounts payable (€ 2,168) and interest (€ 762).
In the previous year, no liabilities were balanced in the reported receivables from affiliated companies.
The other assets as at 31 August 2014, on the one hand, comprised receivables from members of the management of sub-
sidiaries in the amount of € 119,250 resulting from the exercising of employee options and, on the other hand, a dis counted
reimbursement claim for corporation tax credits on the basis of the Act on Tax Measures accompanying the Introduction
of the European Company and for the Modification of Other Tax Regulations (“SEStEG”) in the amount of € 86,685,
and deposits made, transitory items and claims for continued payment of remuneration in the total amount of € 23,029.
In the previous year, in addition to the reimbursement claim for corporation tax credits in the amount of € 106,492, the
other assets mainly included receivables from the Revenue Office resulting from creditable taxes collected at source and
advance tax payments for corporation tax and commercial tax in the amount of € 224,706, and transitory items and
deposits made in the amount of € 60,881.
3.3 prepaid eXpenSeS
The prepaid expenses in the amount of € 97,680 (previous year: € 86,492) largely consist of payments relating to
the year for investor relations services, insurance policies, maintenance contracts, contributions and a contingency
for job advertisements.
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3 .4 ShareholderS’ equity
The development of shareholders’ equity in the 2013/2014 financial year is summarised in the table below:
table 2 Shareholders’ equity
in € 31.08.2013 puRchASe of tReASuRy Stock
Re-iSSuAnce of tReASuRy Stock
withdRAwAl 2013/2014
net income 2013/2014
31.08.2014
Subscribed capital 11,542,764 — 11,542,764
Treasury stock –420,152 –36,754 150,000 — –306,906
Capital surplus 2,674,203 — 16,262 — 2,690,465
Reserves:
Other reserves 17,710,143 –33,260 81,237 –2,000,000 — 15,758,120
Retained earnings — — — 2,000,000 –227,594 1,772,406
Total shareholders’ equity 31,506,958 –70,014 247,499 — –227,594 31,456,849
3.4 .1 SuBScriBed capital
As at 31 August 2014, the Company’s subscribed capital amounted to € 11,542,764. It was made up of 11,542,764
individual no-par-value share certificates with a calculated face value of € 1 issued in the name of the owner.
The Annual General Meeting of 20 December 2012 authorised the Management Board to increase the share capital once
or repeatedly by up to a total of € 5,770,000 until 19 December 2017 with the approval of the Supervisory Board by issuing
new individual share certificates in return for a contribution in cash or a contribution in kind (“Approved Capital 2012”).
The shareholders shall be granted a subscription right with restrictions.
The Annual General Meeting Resolution of 23 January 2007 created conditional capital in the amount of € 600,000
(“Conditional Capital III”) to grant rights to employees and Board members of the Company or affiliated companies to draw
600,000 no-par value share certificates (“2007 Stock Option Plan”). A total of 545,000 options were granted from the 2007
Stock Option Plan, from which options were available for allocation until 31 December 2011. Of the issued options,
8,332 options were cancelled in the period up to 31 August 2013. In the 2013/2014 financial year, 150,000 options were
exercised at an average exercise price of € 1.65, and 65,000 options for an average exercise price of € 2.42 were to be
cancelled. As at 31 August 2014, 236,668 options from the 2007 Stock Option Plan with an average exercise price of € 1.92
were thus still outstanding.
In an Annual General Meeting resolution of 20 December 2012, Sinner Schrader AG created new conditional capital in the
amount of € 550,000 (“Conditional Capital 2012”) and adopted the 2012 Sinner Schrader Stock Option Plan to grant share
options for the sale of a total of 550,000 shares to members of the Management Board of Sinner Schrader AG (100,000
options) and members of the management of the companies affiliated with Sinner Schrader AG (300,000 options) as well
as selected employees with management functions in Sinner Schrader AG and the companies affiliated with Sinner-
Schrader AG (150,000 options).
The exercise price for options granted as part of the 2012 Plan may not be less than the average of the closing prices of
the shares in Sinner Schrader AG in the Xetra trading system of Deutsche Börse AG (or a corresponding successor system)
on the twenty trading days prior to the date of allocation, but not less than the lowest issue price within the meaning of
Article 9 para. 1 of the German Stock Corporation Act (AktG). The options can be exercised at the earliest four years after
their allocation. The options may not be exercised until the average of the closing prices of the shares in Sinner Schrader
AG in the Xetra trading system of Deutsche Börse AG (or a corresponding successor system) exceeds the exercise price
by not less than 40 % on the twenty trading days prior to the exercise date (reference price). In addition to the absolute
earnings target, a relative earnings target requiring that the share price of Sinner Schrader AG must have developed
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better than the TecDAX has been specified for exercising the subscription rights granted to members of the Management
Board. The options in the 2012 plan must have been exercised not later than seven years after their date of allocation.
In the period up to 31 August 2013, 125,000 employee options with an average exercise price of € 1.65 had been issued
from the 2012 Stock Option Plan. A total of 40,000 share options with an average exercise price of € 2.43 were allocated in
the 2013/2014 financial year. Of the options awarded in the previous year, 15,000 had to be cancelled. As at 31 August
2014, 150,000 options with an average exercise price of € 1.86 were thus outstanding.
3.4 .2 treaSury StocK
As at 31 August 2014 the number of shares of treasury stock amounted to 306,906, with a calculated face value of
€ 306,906. On the basis of the 420,152 shares of treasury stock purchased at an average acquisition price of € 1.73 per
share as at 31 August 2013, another 36,754 shares of treasury stock were bought back on the market for an average
acquisition price of € 1.90 per share in the 2013/2014 financial year. The exercising of employee options meant that
150,000 shares of treasury stock, which had been acquired for an average price of € 1.54, were issued to employees in the
year of the report. The average acquisition price for the 306,906 shares as at 31 August 2014 was thus € 1.84. The stock
comprised 33,462, 90,289, 73,655, 72,746 and 36,754 shares which were bought back in the 2008/2009, 2009/2010,
2011/2012 and 2012/2013 financial years and in the 2013/2014 reporting year.
The stock of treasury shares as at 31 August 2014 represented 2.66 % of the share capital. The shares are held with
respect to use for the purposes named in the relevant Annual General Meeting resolutions.
The 36,745 shares bought back in the 2013/2014 financial year resulted in the use of other revenue reserves in the
amount of the difference between the acquisition costs and the calculated face value of the shares in the total amount of
€ 33,260. Incidental acquisition costs in the amount of € 350 incurred for buying back the shares were reported in other
operating expenses in recognition of profit and loss.
On the other hand, the difference between the original acquisition costs and the calculated face value of the 150,000
shares of treasury stock issued in the financial year resulted in € 81,237 being posted to other revenue reserves. The
issuing of the shares also resulted in the posting of € 16,262 to the capital reserve.
3.4 .3 capital reServe
The capital reserve increased in the 2013/2014 financial year due to the issuing of treasury stock as part of the exercising
of employee options, since the average exercise price of the options in the amount of around € 1.65 exceeded the average
acquisition price of the shares of around € 1.54. The capital reserve rose by a total of € 16,262 in the year of the report,
from € 2,674,203 on 31 August 2013 to € 2,690,465 on 31 August 2014.
table 3a capital reserve in €
As at 31.08.2013 2,674,203
Allocation to capital reserve 16,262
As at 31.08.2014 2,690,465
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3 .4 .4 other revenue reServeS
table 3b other revenue reserves in €
As at 31.08.2013 17,710,143
Purchase of treasury stock
Re-issuance of treasury stock
Withdrawal from allocation to other revenue reserves acc. to Art. 58 para. 2a AktG
As at 31.08.2014 15,758,120
thereof:
from allocation to other revenue reserves acc. to Art. 58 para. 2a AktG 13,030,658
from remaining allocation to other revenue reserves acc. to Art. 58 para. 2 AktG 2,988,217
difference between nominal value and acquisition costs of treasury stock –260,755
In the 2013/2014 financial year, other revenue reserves decreased by a total of € 1,952,023 to a value of € 15,758,120 as
at 31 August 2014.
Following a decision taken by the Management Board and the Supervisory Board, an amount of € 2,000,000 was with-
drawn from the other revenue reserves created pursuant to Article 58 para. 2a of the AktG in order to cover the same
amount of unscheduled depreciation on the value of the shares of mediaby GmbH.
The total amount of other revenue reserves as at 31 August 2014 comprised revenue reserves acc. to Article 58 para. 2a
of the AktG in the amount of € 13,030,658 (previous year: € 15,030,658), revenue reserves acc. to Article 58 para. 2 of the
AktG in the amount of € 2,988,217 (previous year: € 2,988,217) and revenue reserves from the difference between the ac-
quisition costs and the calculated face value of the treasury stock in the amount of € –260,755 (previous year: € –308,732).
3.5 accrued eXpenSeS
3.5.1 accrued taXeS
As at 31 August 2014 accrued taxes amounted to € 532,121 (previous year: € 0). This included tax receivables resulting
from tax declared for the previous year and comprising corporation tax and commercial tax which were balanced in the
amount of € 119,560 and € 126,562, respectively. As at the balance sheet date, tax accruals for the 2013/2014 financial
year comprised reserves for corporation tax of € 379,319 and reserves for commercial tax of € 398,924.
3.5.2 other accrued eXpenSeS
Other accrued expenses in the amount of € 952,696 (previous year: € 828,079) were formed for outstanding invoices,
financial reporting and auditing costs and for personnel costs (holiday, fees, variable and overtime pay).
The accrued expenses included in the previous year for earn-out payments from the acquisition of TIC-mobile GmbH
(now Sinner Schrader Mobile GmbH) were utilised in the financial year.
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3 .6 liaBilitieS
The liabilities as at 31 August 2014 in the amount of € 1,042,072 (previous year: € 2,826,708) all had a remaining term of
less than a year. They comprised trade accounts payable in the amount of € 178,870 (previous year: € 113,630), income tax
and church tax levies and turnover tax liabilities that are not yet due and have been combined in other liabilities in the
amount of € 665,207 (previous year: € 758,218) and liabilities to affiliated companies in the amount of € 197,995 (previous
year: € 1,954,860).
The liabilities to affiliated companies included receivables from affiliated companies offset in the amount of € 138,665
(previous year: € 10,254,234). The gross liability item comprised the funds ceded to Sinner Schrader AG for investment as
part of central liquidity management in the Group in the amount of € 292,000 (previous year: € 11,483,483) and trade
accounts payable in the total amount of € 44,660 (previous year: € 4,505). The receivables set off comprised a short-term
loan receivable in the amount of € 136,915 and interest receivables in the amount of € 1,750.
3.7 deferred taX liaBilitieS
As part of calculating deferred taxes, deferred tax liabilities resulted from taxable, quasi-permanent differences in the
shares in affiliated companies. The resulting deferred tax liabilities in the amount of € 316,460 (previous year: € 284,508)
were used to offset deferred tax assets from the incorporated companies in the amount of € 199,759 (previous year:
€ 90,573), which mainly result from valuation differences for reserves and acquired goodwill.
The statutory tax rate of 32.3 % was used for the calculation of the deferred tax assets and liabilities as at 31 August
2014. It is made up of the commercial tax rate of 16.5 %, the corporation tax rate of 15 % and the solidarity surcharge of
5.5 % on the corporation tax rate.
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4 eXplanationS of StatementS of operationS itemS
4 .1 revenueS
Sinner Schrader AG earned revenues in the amount of € 4,429,771 almost solely by providing services for subsidiary
companies.
4 .2 other operating income
Other operating income in the amount of € 42,260 contains out-of-period income from the resolution of reserves and
the write-off of liabilities barred by the statute of limitations and insurance benefits as well as income from the granting
of non-cash benefits to employees and the costs passed on to lessors.
4 .3 income from participationS
On 29 August 2014 the shareholders’ meeting of mediaby GmbH decided to pay out part of the accumulated profit of
mediaby GmbH in the amount of € 800,000 to Sinner Schrader AG as the sole partner.
4 .4 income from profit/loSS tranSfer agreement
In December 2003, Sinner Schrader AG and its 100 % subsidiary Sinner Schrader Deutschland GmbH concluded a profit
and loss transfer agreement with effect from 1 September 2003, which the Annual General Meeting agreed to on 28 Janu-
ary 2004. Income of € 4,610,383 was earned from the profit and loss transfer agreement in the 2013/2014 financial year.
The control and profit and loss transfer agreement concluded between Sinner Schrader AG and next commerce GmbH
on 7 November 2011, which was approved by the Company’s Annual General Meeting of 15 December 2011, remains valid
after the change in the name to Commerce Plus GmbH in the previous financial year. Income of € 127,986 was earned
from the profit and loss transfer agreement in the 2013/2014 financial year.
4 .5 writedownS on inveStmentS
In the financial year, unscheduled depreciation on the book value of participating interests amounted to € 3,480,000.
Depreciation concerned the value of the shares in mediaby GmbH in the amount of € 2,000,000 and in NEXT AUDIENCE
GmbH in the amount of € 1,480,000.
4 .6 other operating eXpenSeS
Other operating expenses in the amount of € 2,735,930 mainly consist of office space costs, communication costs,
advertising costs, and legal and consulting costs.
4 .7 intereSt income and eXpenSeS
Interest income comes from investment of the Company’s liquid funds and from the granting of loans to affiliated
com panies and from interest earned on the corporation tax credit according to Article 37 of the Corporation Tax Act
(“KStG”). The interest expenses mainly arose within the central liquidity management that the company operates
for the domestic group.
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5 other information
5.1 contingencieS and other financial oBligationS
The other financial obligations concern fixed-term rental agreements for the office premises at the locations in Hamburg,
Frankfurt am Main, and Munich, with minimum remaining terms of 2 to 44 months. The other financial obligations con-
cern leasing contracts for company vehicles with remaining terms of 2 to 15 months. In the years ahead, rent contracts
and leasing agreements will result in other financial obligations in the total amount shown in Table 4:
table 4 obl igat ions from rent and lease contracts in €
01.09.2014–31.08.2015 1,032,119
01.09.2015–31.08.2016 886,440
01.09.2016–31.08.2017 157,109
01.09.2017–31.08.2018 78,073
01.09.2018–31.08.2019 —
After 31.08.2019 —
Total 2,153,741
Sinner Schrader AG has taken over a limited joint and several guarantee for one of its subsidiaries in the amount of
€ 27,000 to secure the claims of a service provider from a service contract.
In order to secure the claims of a client from a long-term contractual relationship with a subsidiary, Sinner Schrader AG
took over another guarantee for the client covering all the liabilities from the contract.
Taking into account what it has learned up to the time of compilation, Sinner Schrader AG currently assumes that the
obligations on which the contingencies are based can be fulfilled by the main creditors concerned. Sinner Schrader AG
therefore assesses the risk of either of these guarantees being used as improbable.
5.2 employeeS
On average over the 2013/2014 financial year, there were 41 (previous year: 36) employees in the Company.
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5 .3 management Board
In the 2013/2014 financial year, the following people were appointed to the Management Board:
Matthias Schrader, Chairman
• Businessman, Hamburg, Germany
Thomas Dyckhoff, Finance Director
• Businessman, Hamburg, Germany
The Management Board members conducted their activities as their principal profession. The compensation of the
Management Board members is made up as follows:
table 5 compensation of the management Board members 2013/2014 in €
non peRfoRmAnce- RelAted
compenSAtion
peRfoRmAnce-RelAted
compenSAtion
compenSAtion componentS with A long-teRm
incentive effect
fiXed SAlARy otheR benefitS ShoRt-teRm objectiveS
medium-teRm objectiveS
ShARe-bASed compenSAtion
Matthias Schrader 190,000 6,650 77,274 — —
Thomas Dyckhoff 160,000 9,679 69,641 — —
Total 350,000 16,329 146,914 — —
The total compensation of the Management Board in the 2013/2014 financial year was € 513,243. Premiums for the D&O
insurance for members of the Management Board were € 16,999, unchanged from the previous year.
In the 2013/2014 financial year, reserves in the amount of € 25,000 and € 15,000, respectively, were formed in the per-
sonnel expenses for Mr Schrader and Mr Dyckhoff for variable compensation on the basis of medium-term goals.
The reserves will not be shown as compensation for the Management Board until all the conditions relating to payment
are given.
The members of the Management Board are subject to a post-contractual ban on competition that makes provision for
compensation in the amount of 50 % of the most recently received non performance-related annual pay. With respect
to the severance payments, it has been agreed with the members of the Management Board that they must comply with
the recommendations of the Corporate Governance Code No. 4.2.3.
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5 .4 SuperviSory Board
In the financial year, the Supervisory Board had the following members:
Dieter Heyde, Chairman
• MBA, Bad Nauheim, Germany
• Managing Partner of SALT Solutions GmbH, Würzburg, Germany
• Member of the Advisory Board of CCP Software GmbH, Marburg, Germany
Prof. Cyrus D. Khazaeli, Deputy Chairman
• Communications Designer, Berlin, Germany
• Professor of Communication and Interaction Design at Berliner Technische Kunsthochschule
[Berlin Technical Academy of Art], Berlin, Germany
Philip W. Seitz
• Lawyer, Hamburg, Germany
• General Counsel & Director of Government Affairs of Tchibo GmbH, Hamburg, Germany
The compensation for Supervisory Board members in the total amount of € 45,000 was made up as follows
in the 2013/2014 financial year:
table 6 compensation of the Supervisory Board members 2013/2014 in €
fiXed SAlARy
vARiAble componentS
Dieter Heyde 20,000 —
Prof. Cyrus D. Khazaeli 12,500 —
Philip W. Seitz 12,500 —
Total 45,000 —
In the 2013/2014 financial year, the share of the premium for D&O insurance accounted for by the Supervisory Board
was unchanged over the previous year at € 834.
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5 .5 participationS
The participations held by Sinner Schrader Aktiengesellschaft as at 31 August 2014 are broken down as follows:
table 7 part ic ipat ions of Sinner Schrader ag
compAny ShARe in % cuRRency nominAl cApitAl
ShAReholdeRS’ cApitAl
lASt AnnuAl ReSult
pRofit/loSS tRAnSfeR
AgReement
RepoRting peRiod
Sinner Schrader Deutschland GmbH,
Hamburg, Germany 100.00 EUR 75,000 75,000 4,610,3831) yes 01.09.13–31.08.14
mediaby GmbH,
Hamburg, Germany 100.00 EUR 25,000 221,433 70,412 no 01.09.13–31.08.14
Commerce Plus GmbH,
Hamburg, Germany 100.00 EUR 25,000 1,490,651 127,9861) yes 01.09.13–31.08.14
Commerce Plus Consulting GmbH,
Hamburg, Germany2) 100.00 EUR 25,000 25,000 –46,2071) yes 01.09.13–31.08.14
Sinner Schrader UK Ltd.,
London, Great Britain3) 100.00 GBP 100,000 –771,548 –28,336 no 01.09.13–31.08.14
Sinner Schrader Benelux BV,
Rotterdam, Netherlands3) 100.00 EUR 18,000 –236,235 –10,217 no 01.01.12–31.12.13
NEXT AUDIENCE GmbH,
Hamburg, Germany 100.00 EUR 765,400 306,722 –671,016 no 01.09.13–31.08.14
Sinner Schrader Content GmbH,
Hamburg, Germany
(formerly newtention services GmbH)4) 100.00 EUR 25,000 54,759 1,282,8971) yes 01.09.13–31.08.14
Sinner Schrader Mobile GmbH,
Berlin, Germany 100.00 EUR 25,000 530,497 –196,497 no 01.09.13–31.08.14
Sinner Schrader Praha s.r.o.,
Prague, Czech Republic 100.00 CZK 200,000 –5,424,746 –2,965,448 no 01.11.13–31.08.14
1) Before profit-transfer2) The company is a 100 % subsidiary of the Commerce Plus GmbH.3) The company’s activities have currently been temporarily discontinued; respective shares were written off in the year the activity was discontinued.
Audited financial statements of the company are not available. 4) The company is a 100 % subsidiary of the NEXT AUDIENCE GmbH.
5.6 maJor eventS after the Balance Sheet date
On 4 November 2014 resolutions and contracts concerning a merger of mediaby GmbH and NEXT AUDIENCE GmbH
were all notarised with retroactive effect as at 1 September 2014 and reported for entry in the Commercial Register.
There were no other major events after the end of the 2013/2014 financial year that should be reported.
5.7 declaration of compliance under article 161 of the german StocK corporation act
On 18 December 2013, the Management Board and the Supervisory Board submitted the Declaration of Compliance with
the Corporate Governance Code required by Article 161 of the German Stock Corporation Act and made it permanently
accessible to the shareholders on the Company’s website.
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5 .8 inFormation according to article 160 para. 1 no. 8 oF the german stocK corporation act
As at 31 August 2014, the participating interests in the Company, which have been notified according to Article 21 para. 1
of the German Securities Trading Act (“WpHG”) and published below according to Article 26 para. 1 of the German Secur
ities Trading Act, were as follows:
1. CLEF Trading AG, Beckenried, Switzerland, notified us on 25 May 2014 pursuant to Article 21 para. 1 of the German
Securities Trading Act that its share of the voting rights in Sinner Schrader AG, Hamburg, Germany, had exceeded the
threshold of 3 % of the voting rights on 22 May 2014 and had amounted to 3.4720 % on this date (equivalent to 400,767
voting rights).
2. Mr Alexander Spohr, Germany, notified us on 2 December 2013 pursuant to Article 21 para. 1 of the German Securities
Trading Act that his share of the voting rights in Sinner Schrader AG, Hamburg, Germany, fell below the thresholds of
30 %, 25 %, 20 %, 15 %, 10 %, 5 % and 3 % of the voting rights on 28 November 2013 and had amounted to 0.1487 % on
this date (equivalent to 17,165 voting rights).
3. On 29 August 2012, Sinner Schrader Aktiengesellschaft, Völckersstraße 38, 22765 Hamburg, Germany, announced in
accordance with Article 26 para. 1 sentence 2 of the German Securities Trading Act that its share of treasury stock
had exceeded the threshold of 3 % on 28 August 2012, and that as at this date it held a share of 3.0022 % (correspond
ing to 346,539 nopar value shares) of all the shares issued by Sinner Schrader Aktiengesellschaft.
4. Debby Vermögensverwaltung GmbH, Munich, Germany, notified us on 11 December 2008 pursuant to Article 21
para. 1 of the German Securities Trading Act that on 12 September 2008, its share of voting rights in Sinner Schrader
AG, Völckersstraße 38, 22765 Hamburg, Germany, WKN 514190, ISIN DE 0005141907, fell below the thresholds of
30 %, 25 %, 20 %, 15 %, 10 %, 5 %, and 3 % and was 0.00 % (0 voting rights) as at this date.
Debby Vermögensverwaltung GmbH, Germany, acting on its own behalf and on behalf of the persons mentioned under
letters b. to e., notified us on 20 January 2005, pursuant to Article 21 para. 1 of the German Securities Trading Act, of
the following:
a. Debby Vermögensverwaltung GmbH, Germany, received notification on 20 January 2005 that its share of voting
rights in Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 due to sales in the syndicate and
now amounts to 49.1231 %, whereby it has a share of voting rights of 37.8823 % under the terms of Article 22
para. 2 of the German Securities Trading Act.
b. Mr Wolfgang Herz, Germany, received notification on 17 January 2005 that his share of voting rights in Sinner
Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby he has a
share of voting rights of 4.9713 % under the terms of Article 22 para. 1 No. 2 of the German Securities Trading Act
and a share of voting rights of 44.1518 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
c. Ms Agneta PelebackHerz, Germany, received notification on 17 January 2005 that her share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby
she has a share of voting rights of 0.6491 % under the terms of Article 22 para. 1 No. 2 of the German Securities
Trading Act and a share of voting rights of 48.474 % under the terms of Article 22 para. 2 of the German Securities
Trading Act.
d. Mr Michael Herz, Germany, received notification on 17 January 2005 that his share of voting rights in Sinner
Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby he has a
share of voting rights of 4.9713 % under the terms of Article 22 para. 1 No. 2 of the German Securities Trading Act
and a share of voting rights of 44.1518 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
e. Ms Cornelia Herz, Germany, received notification on 17 January 2005 that her share of voting rights in Sinner
Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby she has
a share of voting rights of 0.6491 % under the terms of Article 22 para. 1 No. 2 of the German Securities Trading Act
and a share of voting rights of 48.474 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
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5. Thomas Dyckhoff, Germany, informed us of the following as at 9 February 2007, as a correction to his notifications of
18 January 2007 made on the basis of the state of knowledge as at 15 January 2007, on his own behalf and as an
agent and by proxy for the persons mentioned under letters b. to e., pursuant to Article 21 para. 1 of the German
Securities Trading Act:
a. The share of voting rights of Mr Thomas Dyckhoff, Germany, in Sinner Schrader AG, Völckersstraße 38, 22765 Ham
burg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (corresponding to
5,761,106 shares). Of this, 49.4782 % of the voting rights (5,711,156 shares) were assigned to him pursuant to Art
icle 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of voting rights of
the following shareholders, whose shares of voting rights were 3 % or more each, were added to this pursuant to
Article 22 para. 2 sentence 1 of the German Securities Trading Act: Matthias Schrader, Oliver Sinner, and Debby
Vermögensverwaltung GmbH.
b. The share of voting rights of Mr Matthias Schrader, Germany, in Sinner Schrader AG, Völckersstraße 38,
22765 Hamburg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (correspond
ing to 5,761,106 shares). Of this, 29.6154 % of the voting rights (3,418,431 shares) were assigned to him pursuant
to Art icle 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of voting
rights of the following shareholders, whose shares of voting rights were 3 % or more each, were added to this
pursuant to Article 22 para. 2 sentence 1 of the German Securities Trading Act: Oliver Sinner and Debby Vermögens
verwaltung GmbH.
c. The share of voting rights of Mr Oliver Sinner, Germany, in Sinner Schrader AG, Völckersstraße 38,
22765 Hamburg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (correspond
ing to 5,761,106 shares). Of this, 40.8211 % of the voting rights (4,711,879 shares) were assigned to him pursuant
to Article 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of voting rights
of the following shareholders, whose shares of voting rights were 3 % or more each, were added to this pursuant
to Article 22 para. 2 sentence 1 of the German Securities Trading Act: Matthias Schrader and Debby Vermögens
verwaltung GmbH.
d. The share of voting rights of Mr Detlef Wichmann, Germany, in Sinner Schrader AG, Völckersstraße 38,
22765 Hamburg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (correspond
ing to 5,761,106 shares). Of this, 48.9147 % of the voting rights (5,646,106 shares) were assigned to him pursuant
to Art icle 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of voting
rights of the following shareholders, whose shares of voting rights were 3 % or more each, were added to this
pursuant to Article 22 para. 2 sentence 1 of the German Securities Trading Act: Matthias Schrader, Oliver Sinner,
and Debby Vermögens verwaltung GmbH.
e. The share of voting rights of Mr Sebastian Dröber, Germany, in Sinner Schrader AG, Völckersstraße 38,
22765 Hamburg, fell below the threshold of 50 % on 13 February 2006 and now amounts to 49.9110 % (correspond
ing to 5,761,106 shares). Of this, 49.3045 % of the voting rights (5,691,106 shares) were assigned to him pursuant
to Art icle 22 para. 2 sentence 1 of the German Securities Trading Act. Among other things, the shares of voting
rights of the following shareholders, whose shares of voting rights were 3 % or more each, were added to this
pursuant to Article 22 para. 2 sentence 1 of the German Securities Trading Act: Matthias Schrader, Oliver Sinner,
and Debby Vermögensverwaltung GmbH.
6. Mr Holger Blank, Germany, notified us on 19 January 2005, pursuant to Article 21 para. 1 of the German Securities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that his share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby he
has a share of voting rights of 49.1223 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
7. Mr Bernward Beuleke, Germany, notified us on 19 January 2005, pursuant to Article 21 para. 1 of the German Secur ities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that his share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.2256 %, whereby he
has a share of voting rights of 49.0718 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
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8. Mr Dirk Lehmann, Germany, notified us on 19 January 2005, pursuant to Article 21 para. 1 of the German Securities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that his share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1322 %, whereby he
has a share of voting rights of 49.0718 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
9. Ms Marion Sinner, Germany, notified us on 19 January 2005, pursuant to Article 21 para. 1 of the German Securities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that her share of voting rights in
Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now amounts to 49.1231 %, whereby she
has a share of voting rights of 49.0365 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
10. Ms Jessica Schmidt, Germany, notified us on 19 January 2005, amended on 4 February 2005, pursuant to Article 21
para. 1 of the German Securities Trading Act and in conjunction with Article 22 of the German Securities Trading Act,
that her share of voting rights in Sinner Schrader AG fell below the threshold of 50 % on 12 January 2005 and now
amounts to 49.1244 %, whereby she has a share of voting rights of 48.9065 % under the terms of Article 22 para. 2 of
the German Securities Trading Act.
11. Dr Markus Conrad, Germany, notified us on 20 January 2005, pursuant to Article 21 para. 1 of the German Securities
Trading Act and in conjunction with Article 22 of the German Securities Trading Act, that he received notification on
17 January 2005 to the effect that his share of voting rights in Sinner Schrader AG fell below the threshold of 50 % on
12 January 2005 due to sales in the syndicate and now amounts to 49.1231 %, whereby he has a share of voting rights
of 48.0185 % under the terms of Article 22 para. 2 of the German Securities Trading Act.
12. Mr Gerd Stahl, Germany, notified us on 4 July 2003, amended on 10 July 2003, pursuant to Article 21 para. 1 of the
German Securities Trading Act in conjunction with Article 22 of the German Securities Trading Act, in accordance with
the obligation on his part and as an agent and by proxy for the persons mentioned under letters b. to c., that:
a. On 30 June 2003, the share of voting rights of Mr Gerd Stahl, Germany, fell below the threshold of 50 % of the voting
rights in Sinner Schrader AG. He is now entitled to 49.95 % of the voting rights in Sinner Schrader AG pursuant to
Article 21 para. 1 of the German Securities Trading Act, of which 47.18 % of the voting rights are to be assigned
under the terms of Article 22 para. 2 of the German Securities Trading Act.
b. On 30 June 2003, the share of voting rights of Mr Alexander Spohr, Germany, fell below the threshold of 50 % of the
voting rights in Sinner Schrader AG. He is now entitled to 49.95 % of the voting rights in Sinner Schrader AG pursuant
to Article 21 para. 1 of the German Securities Trading Act, of which 47.69 % of the voting rights are to be assigned
under the terms of Article 22 para. 2 of the German Securities Trading Act.
c. On 30 June 2003, the share of voting rights of Mr Matthias Fricke, USA, fell below the threshold of 50 % of the voting
rights in Sinner Schrader AG. He is now entitled to 49.95 % of the voting rights in Sinner Schrader AG pursuant to
Article 21 para. 1 of the German Securities Trading Act, of which 47.85 % of the voting rights are to be assigned
under the terms of Article 22 para. 2 of the German Securities Trading Act.
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5 .9 fee for the Statutory audit
The Annual General Meeting on 29 January 2014 elected BDO AG, Wirtschaftsprüfungsgesellschaft, Hamburg, Germany,
as the auditor for the 2013/2014 financial year. With respect to the fees, we refer to the Consolidated Financial State-
ments of Sinner Schrader AG for the 2013/2014 financial year in accordance with Article 285 sentence 1 indent 17 of
the German Commercial Code.
5.10 additional information
5.10.1 directorS’ holdingS of ShareS and SuBScription rightS to ShareS (directorS’ dealingS)
The following table shows the number of shares in Sinner Schrader AG and the number of subscription rights to shares
held by directors of Sinner Schrader AG as at 31 August 2014 and any changes in the 2013/2014 financial year:
table 8 Shares and options of the Board members in number
ShareS 31.08.2013 AdditionS diSpoSAlS 31.08.2014
Management Board:
Matthias Schrader 2,455,175 121,114 — 2,576,289
Thomas Dyckhoff 74,950 — — 74,950
Total shares of the Management Board 2,530,125 121,114 — 2,651,239
Supervisory Board:
Dieter Heyde — — — —
Prof. Cyrus D. Khazaeli — — — —
Philip W. Seitz — — — —
Total shares of the Supervisory Board — — — —
Total shares of the Board members 2,530,125 121,114 — 2,651,239
OptiOnS 31.08.2013 AdditionS diSpoSAlS 31.08.2014 cuRRent vAlue of eAch SubScRiption
Right on the dAte of gRAnting
Management Board:
Matthias Schrader — — — —
Thomas Dyckhoff 120,000 — — 120,000 € 0.49
Total options of the Management Board 120,000 — — 120,000
Supervisory Board:
Dieter Heyde — — — —
Prof. Cyrus D. Khazaeli — — — —
Philip W. Seitz — — — —
Total options of the Supervisory Board — — — —
Total options of the Board members 120,000 — — 120,000
Hamburg, 17 November 2014
The Management Board
Matthias Schrader Thomas Dyckhoff
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aUdItor’S report
We have audited the annual financial statements, comprising the balance sheet, the income statement and the notes to the financial
statements, together with the bookkeeping system, and the management report of SinnerSchrader Aktiengesellschaft, Hamburg, for
the business year from September 1, 2013 to August 31, 2014. The maintenance of the books and records and the preparation of the
annual financial statements and the management report in accordance with German commercial law and supplementary provisions
of the articles of association are the responsibility of the company’s management. Our responsibility is to express an opinion on the
annual financial statements, together with the bookkeeping system, and the management report based on our audit.
We conducted our audit of the annual financial statements in accordance with § 317 of the HGB [“Handelsgesetzbuch”: “German Com-
mercial Code”] and German generally accepted standards for the audit of financial statements promulgated by the Institut der
Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that
misstatements materially affecting the presentation of the net assets, financial position and results of operations in the annual finan-
cial statements in accordance with German principles of proper accounting and in the management report are detected with reason-
able assurance. Knowledge of the business activities and the economic and legal environment of the company and expectations as
to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related
internal control system and the evidence supporting the disclosures in the books and records, the annual financial statements
and the management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of
the annual financial statements and the management report. We believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the annual financial statements comply with the legal requirements and supple-
mentary provisions of the articles of association and give a true and fair view of the net assets, financial position and results of
operations of the company in accordance with German principles of proper accounting. The management report is consistent with the
annual financial statements and as a whole provides a suitable view of the company’s position and suitably presents the opportun-
ities and risks of future development.
Hamburg, 21 November 2014
BDO AG
Wirtschaftsprüfungsgesellschaft
signed Glaser signed ppa. Reisener
(German Public Auditor) (German Public Auditor)
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reSponSIBILItY Statement
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements of the
SinnerSchrader Group and the annual financial statements of SinnerSchrader Aktiengesellschaft give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group an the AG, and the joint consolidated status report and group status report
includes a fair review of the development and performance of the business and the position of the Group an the AG, together with a
description of the principal opportunities and risks associated with the expected development of the Group an the AG.
Hamburg, 17 November 2014
The Management Board
Matthias Schrader Thomas Dyckhoff
139
022–057
060–113
116–139
142–143
Joint StatuS report
conSolidated financial StatementS
annual financial StatementS
further information
01
02
03
04
sInnerschradergRoup2013 / 2014
Key figureS of the SinnerSchrader group, four quarterS 2013/2014
Q4 Q3 Q2 Q1
Gross revenues € 000s 14,067 13,479 12,096 11,712
Net revenues € 000s 13,460 13,027 11,292 10,822
EBITDA € 000s 1,158 849 1,047 804
EBITA € 000s 951 643 855 615
EBIT € 000s 951 622 827 582
Net income € 000s 941 292 360 250
Earnings per share, fully diluted € 0.08 0.03 0.03 0.02
Cash flows from operating activities € 000s 5,060 –2,049 342 –1,837
Employees, full-time equivalents number 475 460 425 417
Key figureS of the SinnerSchrader group, five yearS
01.09.2013 31.08.2014
01.09.2012 31.08.2013
01.09.2011 31.08.2012
01.09.2010 31.08.2011
01.09.2009 31.08.2010
Gross revenues € 000s 51,355 41,263 41,664 36,714 28,718
Net revenues € 000s 48,601 36,401 35,984 30,909 23,935
EBITDA € 000s 3,858 1,430 2,297 3,193 2,717
EBITA € 000s 3,064 681 1,627 2,612 2,185
Relation of the EBITA to net revenues
(Operating margin) % 6.3 1.9 4.5 8.5 9.1
EBIT € 000s 2,982 413 649 2,054 1,567
Net income € 000s 1,843 1 157 1,278 1,103
Earnings per share, fully diluted € 0.16 0.00 0.01 0.11 0.10
Shares outstanding number 11,140 11,138 11,245 11,211 11,254
Cash flows from operating activities € 000s 1,517 2,439 2,094 450 2,343
Employees, full-time equivalents number 444 406 388 335 271
31.08.2014 31.08.2013 31.08.2012 31.08.2011 31.08.2010
Liquid funds and securities € 000s 5,833 5,949 5,197 5,743 8,290
Shareholders’ equity € 000s 14,075 12,047 12,133 13,203 12,576
Balance sheet total € 000s 28,551 22,997 21,325 22,247 20,981
Shareholders’ equity rate % 49.3 52.4 56.9 59.3 59.9
Employees, end of period number 521 451 420 400 305
eventS & contact information
financial calendar 2014/2015
Annual General Meeting 2013/2014 21 January 2015
1st Quarterly Report 2014/2015 (September 2014–November 2014) 15 January 2015
2nd Quarterly Report 2014/2015 (December 2014–February 2015) 15 April 2015
3rd Quarterly Report 2014/2015 (March 2015–May 2015) 15 July 2015
Announcement of preliminary figures for the 2014/2015 financial year October 2015
Annual Report 2014/2015 November 2015
Annual General Meeting 2014/2015 January 2016
Our previous reports are available online and for download on our website www.sinnerschrader.ag.
contact
SinnerSchrader AG, Investor Relations
Völckersstraße 38, 22765 Hamburg, Germany
T. +49. 40. 39 88 55-0, F. +49. 40. 39 88 55-55
www.sinnerschrader.com, [email protected]
editorial information
Published by SinnerSchrader Aktiengesellschaft, Hamburg, Germany
Concept and design ringzwei, Hamburg, Germany
Printing eurodruck, Hamburg, Germany
Date of publication: 25. November 2014
SinnerSchrader aKtiengeSellSchaft völcKerSStraSSe 3822765 hamBurggermany
www.SinnerSchrader.com