Annual Report 2017
II AnnualReport2017
2017 2016 2015 2014 2013
Sales in¤m
Externalsales1) incl.VAT 1,606.2 1,549.8 1,509.3 1,427.9 1,350.1
Change in% +3.6 +2.7 +5.7 +5.8 +4.7
Consolidatedsales excl.VAT 1,386.0 1,337.2 1,299.9 1,226.5 1,157.1
Change in% +3.6 +2.9 +6.0 +6.0 +4.5
Unit sales (glasses) in000’s 8,113 7,990 7,812 7,590 7,320
Change in% +1.5 +2.3 +2.9 +3.7 +3.5
EBITDA in¤m 291.3 281.6 278.5 263.8 233.3
Change in% +3.4 +1.1 +5.6 +13.1 +8.5
Pre-tax profit (EBT) in¤m 248.6 241.5 240.1 226.0 199.1
Change in% +3.0 +0.6 +6.2 +13.5 +10.2
Net income in¤m 172.9 171.2 170.5 162.8 142.0
Change in% +1.0 +0.4 +4.7 +14.6 +9.5
Cash flow from current business activity2) in¤m 287.1 219.2 160.6 156.7 23.5
Change in% 31.0 +36.5 +2.5 +566.8 –92.1
Financial assets in¤m 350.1 368.1 356.8 328.1 317.8
Change in% –4.9 +3.2 +8.7 +3.2 +10.7
Equity ratio in% 75.1 75.1 74.9 75.2 74.4
Investment in¤m 68.8 49.6 53.3 39.1 47.5
Change in% +38.7 –6.9 +36.3 –17.7 +48.0
Number of stores 723 704 695 687 679
Employees asat31.12. 18,522 17,873 17,287 16,732 16,158
ofwhichapprentices 3,417 3,190 3,065 2,922 2,874
Key data per share3)
Earningspershare(EPS) in¤ 1.99 1.98 1.97 1.87 1.64
Cashflowpershare2) in¤ 2.64 2.61 1.91 1.87 0.28
Dividendpershare in¤ 1.85 1.80 1.75 1.60 1.45
1)SalesincludingVATandinventorychanges2)Theincreasein2014isduetoaregroupingoftheinvestments3)Previousyear’sfigureshavebeenadjustedduetothestockspliton22August2014
Fielmann at a glance
KEYDATA
Fielmann stands for fashionable eyewear at fair prices. 90% of all German citizens have heard of Fielmann. We are the market leader. 24 million people wear a pair of glasses from Fielmann. In Germany, the company sells half of all glasses on the market. Fielmann is active at all levels of value creation in the optical industry. Fielmann is a designer, manufacturer, distributor and optician.
Fielmann has shaped the optical industry. In Germany, Fielmann ended the discrimi-nation against people wearing statutory health insurance glasses, made them socially acceptable, and democratised the world of fashionable eyewear.
Time and again, Fielmann has pioneered customer-friendly services in optical retail. The basis for our success is customer-friendly services, a large selection of products at guaranteed best prices, the best technical equipment and highly skilled employees.
Our guiding principle is “You are the customer”. A clear customer focus has taken us to the top. We recognize ourselves in our customers. Our employees are committed to this philosophy. Using its key competence – an uncompromising customer orienta-tion – Fielmann will also thrive in new markets.
Contents
2 Introduction
6 Management Board
8 Supervisory Board
12 Strategy
20 Shares
22 Industry
28 Management Report
60 Annual Accounts
67 Notes to the Accounts
135 Auditor’s Report
142 Stores
Glasses: Fielmann
2 Annual Report 2017
FOREWORD
Annual Report 2017 3
FOREWORD
The results for the 2017 financial year are in line with our expectations. With customer-friendly services, glasses at the best prices and wide-ranging guarantees, Fielmann has increased the number of units sold, sales revenue and profits.
Fielmann increased the number of units sold to 8.11 million pairs of glasses (previous year: 7.99 million). External sales including VAT grew to ¤ 1.61 billion (previous year: ¤ 1.55 billion) and consolidated sales rose to ¤ 1.39 billion (previous year: ¤ 1.34 billion). We increased our pre-tax result to ¤ 248.6 million (previous year: ¤ 241.5 million) and the net income for the year went up to ¤ 172.9 million (previous year: ¤ 171.2 million). The pre-tax profit margin on sales amounted to 17.9%.
Fielmann includes its shareholders in its success. For the 2017 financial year, the Management Board and the Supervisory Board will recommend a dividend payout of ¤ 1.85 per share (previous year: ¤ 1.80) to the Annual General Meeting due to the company’s continued positive development and the available liquidity. This represents a dividend yield of 2.5% based on the year-end closing price. The total dividend payout amounts to ¤ 155.4 million (previous year: 151.2 million).
As a family business, Fielmann thinks across the generations, invests in organic growth and avoids high-risk acquisitions. Fielmann AG is debt-free, with liquidity in the hundreds of mil-lions. Our equity ratio before the dividend pay-out in 2017 stood at 75%.
For several decades now, Fielmann shares have proved to be a sound and stable invest-ment. The share price closed the year at ¤ 73.52, making gains of 17.2% compared to the previous year. At the close of the year, the company had a stock market valuation of ¤ 6.2 billion.
Dear Shareholders, Dear Friends of the Company,
Günther Fielmann
4 Annual Report 2017
FOREWORD
The share price development is a reflection of the trust shown to us by our investors. Since the beginning of the financial market crisis in 2008, the Fielmann share has increased by 227%, which is an appreciation of 284% in-cluding dividends.
Over 85% of our employees are share-holders of Fielmann. They not only earn good salaries, but also receive dividends. This is a motivational factor and our customers benefit as a result.
Fielmann owes its success to a clear and stringent customer focus. Our employees em-pathize with their customers. They provide a standard of service that they would wish to re-ceive themselves and have the satisfying task of finding the best possible solution for everyone, irrespective of the budget.
Fielmann recognizes elites and offers tal-ented young people clear objectives and com-pelling values. We invest tens of millions in training and continued professional develop-ment every year. Fielmann places great expec-tations on its employees. Our stores generate between five and ten times the sales revenues of the average optician, and our bigger stores record up to fifty times the sales of an aver-age optician. Our flagship stores in big cities achieve turnovers of between ¤ 4 m and ¤ 20 m. Since stores of this size are unique in the industry, we have to train store managers our-selves. The Fielmann Academy at Plön Castle prepares the next generation of opticians for Europe. In Plön, we train more than 7,000 opti-cians every year. The Academy is also open to external opticians for master craftsman’s courses and colloquia.
In Germany, Fielmann is the industry‘s lead-ing training provider and employs more than 3,400 apprentices. Our apprentices are the best in the business – as testified by the na-tional awards they win. In the German optical
industry competition, Fielmann accounted for all national winners over the last seven years.
Fielmann continuously strives to be better and more productive than the competition. We offer higher quality at lower prices. Fielmann is leading in terms of prices and quality. Based on our fundamental understanding of the mar-ket, we have developed the most modern opti-cal stores of their kind. Fielmann stores feature state-of-the-art technology in eyesight testing, contact lens fitting and workshops, and also make use of the very latest IT.
The stores showcase the whole world of fashion eyewear, including major brands, in-ternational designers and the fashionable Fiel-mann Collection. 90% of our customers say they intend to come back to Fielmann for their next pair of glasses. And they have good rea-son to do so.
Fielmann stands for fashionable eyewear at the best prices. With only 5% of all optical stores in Germany (Fielmann: 597 stores; the industry: 11,700 shops), Fielmann has a sales market share of 21% and 53% in terms of unit sales. This is proof of the value for money we offer. If Fielmann were to sell glasses at the aver-age retail price, the sales market share and the unit market share would be the same.
Fielmann is continuing its expansion at a sustainable pace. We focus on the German-speaking region as well as the adjacent Eu-ropean countries. When we open new stores in our home market of Germany, we tend to achieve unit market shares of between 40% and 50% straight from the beginning.
Further to our expansion, we can realise sig-nificant growth by developing existing shops and moving to more attractive locations. Modernisa-tion and increasing floor space generally lead to double-digit improvements in sales. In the mid-term, our plan is to operate more than 600 stores in Germany and to sell more than 7.5 million pairs of
Stores 5 %
Sales 21 %
Unit sales 53 %
■ Fielmann
■ Other stores
MarketsharesinGermany,2017
Annual Report 2017 5
FOREWORD
In 2018, we expect to increase the number of units sold and the sales revenue. We will open new stores, expand and modernise exist-ing locations and recruit more personnel. The first months of the current financial year support our optimistic expectations.
We thank all our employees who contrib-uted to the success of the company with their dedication, conscientiousness and competence throughout 2017. Thanks are also due to our customers, associates, friends and to you, the shareholders, for always remaining loyal to the company.
Günther Fielmann
glasses. In the German-speaking countries of Ger-many, Switzerland and Austria, our medium-term goal is to operate around 700 stores selling more than 8.6 million pairs of glasses with sales revenues of ¤ 1.8 billion.
We are driving our expansion in Italy. In 2017 alone, Fielmann opened another seven stores in Vicenza, Verona, Trento, Varese, Pia-cenza, Brescia and Bergamo, and operated a total of ten stores in Italy by the end of the financial year. Encouraging feedback from customers support our optimistic expectations regarding this market. We plan to open even more stores in Italy in 2018. Our mid-term goal is to operate 40 stores, selling 500,000 pairs of glasses with sales revenues of ¤ 80 million.
Our success abroad is attributable to the fact that we have been able to export the principles of our success into the neighbouring countries. We offer consumers the certainty of being able to buy outstanding quality at reasonable prices, and stand out from our competitors even more than in Germany when it comes to location, selec-tion, price and expert advice.
Fielmann has identified additional growth opportunities in many areas. Our customer base offers considerable potential: On aver-age, our customers are younger than those of our traditional competitors. They remain loyal to us over many years. Consequently, even without gaining any new customers, we will be significantly increasing our share of high-value progressive glasses over the com-ing years, as people need such glasses in the second half of their lives. Sunglasses, contact lenses and hearing aids also offer additional potential. Customers want to have a provider that takes care of their needs and whom they can trust. They buy products where they know they will get guaranteed quality at the best prices. In the optical industry, they place their trust in Fielmann.
6 Annual Report 2017
MANAGEMENT BOARD
Annual Report 2017 7
MANAGEMENT BOARD
ManagementBoard
Günther Fielmann Chairman of the Management Board Corporate StrategyMichael Ferley Materials Management and Production since 1 July 2017Marc Fielmann MarketingDr. Bastian Körber SalesGünter Schmid Materials Management and Production up to 30 June 2017Dr. Stefan Thies Controlling, IT, Human ResourcesGeorg Alexander Zeiss Finance and Property
Dr. Stefan Thies
Günther Fielmann
Günter Schmid
Michael Ferley Dr. Bastian KörberMarc Fielmann
Georg Alexander Zeiss
8 Annual Report 2017
SUPERVISORY BOARD
SupervisoryBoard
Shareholder representatives Prof. Dr. Mark K. Binz Lawyer, Binz & Partner, Chairman of the Supervisory Board, StuttgartHans-Georg Frey Chief Executive Officer (CEO), Jungheinrich AG, Hamburg Carolina Müller-Möhl President of the Administrative Board, Müller-Möhl Group, Zurich, SwitzerlandHans Joachim Oltersdorf Managing Partner, MPA Pharma GmbH, RellingenMarie-Christine Ostermann Managing Director, Rulko Großeinkauf GmbH & Co. KG, HammPier Paolo Righi CEO & President Karl Lagerfeld International B.V., Amsterdam, NetherlandsHans-Otto Schrader Chairman of the Supervisory Board, OTTO AG für Beteiligungen, HamburgJulia Wöhlke Managing Director, Iwan Budnikowsky GmbH & Co. KG, Hamburg
Mathias Thürnau Specialist in the Sales Department, Fielmann AG, Deputy Chairman of the Supervisory Board, HamburgHeiko Diekhöner Regional Manager, Fielmann AG, HamburgJana Furcht Master Optician, Fielmann AG & Co. OHG, MünchenRalf Greve Spokesperson for Professional Development at Fielmann AG, HamburgFred Haselbach Master Optician, Fielmann AG & Co. OHG, LübeckPetra Oettle Optician, Fielmann AG & Co. oHG, UlmEva Schleifenbaum Trade union secretary, ver.di, Kiel Frank Schreckenberg Trade union secretary, ver.di, Berlin
Employee representatives
Annual Report 2017 9
SUPERVISORY BOARD
In the 2017 financial year, the Supervisory Board once again discharged conscientiously the duties incumbent upon it under the law and in accordance with the Articles of Association. The Supervisory Board continually obtained information in the reporting year on all impor-tant business developments and supervised the work of the Management Board, advising where necessary. In addition, the Chairman of the Supervisory Board engaged in direct infor-mation exchanges with the Management Board with regard to important matters arising outside of meetings.
On the basis of written and oral reports from the Management Board, the Supervisory Board comprehensively dealt with the business and financial position, corporate strategy, hu-man resources policy, planning, risk assessment and compliance organisation at Fielmann AG in its discussions.
In the past financial year, there were four meetings of the Supervisory Board. Only one Supervisory Board member was unable to at-tend one of the meetings.
The balance sheet meetings were held on 5 and 6 April 2017. On the first day of the meet-ings, Mr Zeiss explained the business perfor-mance for the financial year 2016 and outlined the key figures. Subsequently, the auditors Mr Reiher and Ms Deutsch from Deloitte & Touche GmbH reported at length on the key audit find-ings for the financial year 2016 and answered questions from Supervisory Board members. The Supervisory Board then approved the an-nual and consolidated accounts for 2016.
The second day of meetings began with the report from the Management Board on busi-ness developments thus far in 2017. This was followed by a statement on the 2016 annual re-port as well as the approval of the Supervisory Board Report to the Annual General Meeting and a vote on the resolution proposals submitted to the Annual General Meeting. Subsequently, the Supervisory and Management Boards dis-cussed Fielmann’s digital strategy after it had been explained in detail by Marc Fielmann. In this context, a report was also presented by Dr. Körber on the developments in the contact lenses business area.
Furthermore, the Supervisory Board unani-mously approved on 6 April 2017 the recom-mendation from the HR committee to extend the appointment of Günther Fielmann as Chairman of the Board by a further three years up to 30 June 2020 with no change to the conditions. At the same time, the Supervisory Board also ap-proved the recommendation from the HR com-mittee to appoint Michael Ferley to the Board of Fielmann AG for three years with effect from 1 July 2017. Mr Ferley has taken the place of Günter Schmid to assume responsibility for the Materials Management and Production busi-
Professor Dr. Mark K. BinzChairman of the Supervisory Board
Supervisory Board Report
10 Annual Report 2017
SUPERVISORY BOARD
ness areas. The Supervisory Board would like to thank Günter Schmid, who vacated his posi-tion on the Board on 30 June 2017, for all the success he achieved in his activities as a Board member over many years.
The second Supervisory Board meeting was held after the Annual General Meeting on 1 June 2017. Following an analysis of the share-holder meeting, Günther Fielmann reported on the company’s current situation, particularly with regard to the current level of customer sat-isfaction. The Supervisory and Management Boards then engaged in a detailed discussion on the proportion of women in management po-sitions. With a proportion of 37.5% of women on the Supervisroy Board itself, the minimum legal requirement (30%) is clearly met. As per Section 111 Para. 5 of the German Stock Cor-poration Act, the Supervisory Board has set a target ratio of 0% for the share of women on the Management Board for the target time period up to 30 June 2022, but intends to give due consideration to the percentage of women in the event of new positions on the Management Board in future, without this being the only main selection criterion.
The main topic at the Supervisory Board meeting of 7 September 2017 was the Com-pliance Management System, whose main features have to be disclosed in line with the latest amendments to the German Corporate Governance Code. Dr. Frank Roser (lawyer, accountant, tax advisor) was appointed by the Management Board as an external consultant to review and present his assessment of the compliance system at Fielmann AG. At the Su-pervisory Board meeting, Dr. Roser answered various questions from the Supervisory Board members. In addition, the Corporate Social Re-sponsibility Report – due to be published for the 2017 financial year – was the subject of
a discussion in the committee. An amendment to the Management Board’s rules of proce-dure, with regard to the value limits relating to property acquisitions and divestments, was discussed and approved. The HR committee’s recommendation to extend the appointment of Dr. Bastian Körber to the Management Board by a further three years up to 31 March 2021 was also accepted.
On 23 November 2017 at the fourth Su-pervisory Board meeting, the Management Board provided detailed information on previ-ous business operations in 2017, the planning for 2018 and the medium-term planning up to 2020, which was then unanimously approved by the Supervisory Board. Subsequently, Marc Fielmann presented the employer branding campaign, which was launched in November 2017. The aim is to fill all the available appren-ticeships at Fielmann with talented young peo-ple, after seeing yet another rise in the number of apprentices for 2018. Following on from his statements at the meeting dated 6 April 2017, Marc Fielmann reported further on the current status of the implemetation of the digitization strategy. The development and discussion of the hearing aids sector was also an item on the agenda. At this meeting, the Supervisory Board discussed in detail the declaration of conformity with regard to the German Corporate Govern-ance Code for 2017.
Two meetings of the HR committee were held in the financial year 2017. The topics discussed included Günter Schmid’s departure from the Management Board, Michael Ferley’s appointment in his place and the extensions to the Management Board appointments of Günther Fielmann and Dr. Bastian Körber.
The Mediation Committee, as defined under Section 27 Para. 3 of the Codetermination Act (MitbestG), and the Nomination Committee had no reason to convene in the past financial year.
Annual Report 2017 11
SUPERVISORY BOARD
There are no further committees. The Super-visory Board of Fielmann AG has opted to not form an Audit Committee. Beyond the indepth discussion as part of the annual balance sheet meeting, all Supervisory Board members had the opportunity of obtaining a detailed briefing. Before this, they could also ask questions and make suggestions on the content and results of the audit in a discussion forum attended by the Chief Financial Officer (CFO) and the chief auditor.
The Supervisory Board again submitted to an internal assessment of its efficiency in the financial year 2017.
The possible conflicts of interest between the obligations of the members of the Supervisory Board are subject to ongoing review as well as an additional annual assessment by means of a detailed questionnaire. Supervisory Board members are also asked to notify of potential conflicts of interest. There were no conflicts of interest in the 2017 financial year.
The annual accounts of Fielmann Aktienge-sellschaft and the consolidated accounts for the financial year 2017 in accordance with Section 315a of the German Commercial Code (HGB) prepared on the basis of the International Fi-nancial Reporting Standards (IFRS) as well as the Management Report for Fielmann Aktienge-sellschaft and the Group were audited by De-loitte & Touche GmbH, Hamburg, and passed without qualification. These documents, includ-ing the Management Board’s proposed ap-propriation of profits and the Corporate Social Responsibility report (CSR report) according to Section 289c of the German Commercial Code (HGB), which were duly submitted to each mem-ber of the Supervisory Board, were verified by the Supervisory Board and discussed in detail in the meetings on 11 and 12 April 2018 in the presence of the auditors Mr Reiher and Ms Deutsch, who reported on the method and key
results of the annual audit and answered the questions of the Supervisory Board members. Following the final results of its examination, the committee found no cause for objection. The Supervisory Board approved the consolidated financial statements and the annual accounts, which are therefore adopted. It also seconded the Management Board’s proposed appropria-tion of profits.
The auditors also examined the report of the Management Board on transactions with related parties in the financial year 2017 (de-pendency report) and passed it with the un-qualified confirmation that the details in the report are correct and that the consideration of the company for the transactions outlined in the report was not inappropriately high, as defined by law. The Supervisory Board has examined the report of the Management Board and, in its meeting on 11 and 12 April 2018, heard a presentation of the key findings of the audit by the auditor. The Supervisory Board raises no objection to the report of the Management Board and the relevant audit conducted by the auditors.
The Supervisory Board would like to thank the Management Board and all Fielmann em-ployees for their very successful, outstanding work during the past financial year.
Hamburg, 12 April 2018
Professor Dr. Mark K. BinzChairman of the Supervisory Board
STRATEGY
12 Annual Report 2017
STRATEGY
Annual Report 2017 13
Glasses: Fielmann
A clear customer focus has taken us to the top. 90% of all German citizens have heard of Fiel-mann. The company has sold over 150 million pairs of glasses since opening its first shop in 1972. Over 24 million people wear Fielmann glasses. In Germany, Fielmann sells half of all glasses on the market. Fielmann is the market leader.
Customerphilosophy
Our guiding principle is “You are the customer”. Customer satisfaction is our top priority. We recognize ourselves in our customers. Our em-ployees are committed to this philosophy. Our opticians are not under pressure to talk custom-ers into buying expensive glasses. They find the best solution for each customer and always at a fair price. People recognise honesty: in representative surveys, more than 90% of our customers express re-purchase intent.
Democratisationoffashionableeyewear
Fashionable eyewear at no cost (Nulltarif) has only existed since Fielmann began. This is one of the company's historical achievements. It was Fielmann which made health insurance glasses attractive and socially acceptable, removing the stigma associated with wearing them and democratised fashion for glasses.
For centuries, short-sighted people had a blurred view of things in the distance, while el-derly people couldn’t focus on nearby objects. Although the magnifying effect of ground glass and ground crystals has been known since an-cient times, it was not used for producing vi-sion aids. It was only in the last millennium that reading stones and lenses were discovered. The first ever bill for a pair of glasses was written in Venice in the year 1316. In the 14th century, however, there were only collecting lenses for the “old faces”, i.e. for near vision. The 15th century then witnessed the introduction of bi-
concave lenses for “young faces”, i.e. for dis-tance vision.
The invention of glasses created equality for the first time in human history: people suffer-ing from defective eyesight could suddenly see as well as people with normal eyesight. Short-sighted individuals could finally see objects in the distance clearly and older generations were able to read as they had been able to when they were young. In the beginning, glasses were reserved for the clergy and nobility, and later the very affluent citizens.
In German-speaking countries, it was thanks to Bismarck’s social legislation that a wider population could afford glasses. On 1 Decem-ber 1884, section 6 of the Employees Health Insurance Bill came into force. For the first time in history, everyone with defective eyesight was entitled to free prescription glasses.
Yet at that time, enabling everyone to wear glasses was, first and foremost, an economic achievement. In those days, seeing better was still a long way from looking better. The frames were nothing more than nickel structures. Their function was more important than style. For hundreds of thousands of workers, wearing health insurance glasses meant keeping their jobs even as they got older, while people with defective eyesight could finally enjoy the same quality of life and job opportunities as people with normal eyesight. Health insurance glasses made a key contribution to people's education and professional qualifications.
After creating greater equality between privileged people suffering from defective eyesight and people with normal eyesight in the 15th century and the equality of rich and poor achieved by Bismarck’s social legislature towards the end of the 19th century, it was not until the economic revival of the mid-20th century that the aesthetics of glasses earned significance in the history of eyewear.
STRATEGY
14 Annual Report 2017
Before Fielmann, statutory health insurance glasses were extremely unattractive. There were six plastic frames for adults and two for chil-dren. People unable to afford an expensive pair of glasses often ended up having to display the proof of their low income on their noses. Eight million German citizens could only afford to wear these health insurance glasses. For Fiel-mann, this discrimination of people based on their choice of glasses was a sore point from the very beginning.
Fashionableglassesforfree(Nulltarif)
Fielmann made health insurance glasses at-tractive. The special agreement signed by Fiel-mann with the Esens statutory health insurance company in 1981 was a major step forward. From one day to the next, Fielmann replaced the eight unattractive health insurance frames with 90 fashionable and high-quality metal and plastic frames in 640 varieties for free. This way, Fielmann replaced the uniform design of health insurance frames with style and choice – fashionable glasses for free (“Nulltarif”). Today, thanks to Fielmann, anybody can afford stylish glasses.
Customer-friendlyservices
Making claims is easy, but living up to them is tough. Fielmann remains committed to its prin-ciples. For the good of its customers, Fielmann has repeatedly launched customer-friendly ser-vices that the market had never seen before. Examples include fashionable eyewear free of charge (Nulltarif), an open display of thou-sands of frames, the Best-Price Guarantee, the Three Year Warranty for all correction glasses and the Satisfaction Guarantee.
Zero-CostInsurance
While the statutory health insurance funds have almost completely stopped paying for glasses
since 2004, Fielmann continues to offer a com-plete pair of glasses at no extra cost. Together with the HanseMerkur insurance company, Fielmann offers the Zero-Cost Insurance (Null-tarifversicherung). Millions of Fielmann custom-ers have opted for this option.
An annual insurance premium of just ¤ 10 gives customers immediate access to a highly fashionable pair of glasses with a metal or plastic frame from the Zero-Cost Collection and single-vision Carl Zeiss Vision precision lenses. Every two years, customers get a new pair of glasses at no cost. If their glasses are broken or damaged or if their prescription changes more than 0.5 dioptres, Fielmann provides a free replacement.
Policy holders can choose from over 90 free metal or plastic frames in over 600 dif-ferent variations. Competitors usually charge between ¤ 60 and ¤ 120 for such glasses.
Customers opting for a model for which an additional charge is payable receive a ¤ 15 discount off the purchase price. In addition, in the event of a change in visual acuity of more than 0.5 dioptres or if the glasses are damaged or broken, our policy holders get 70% off the purchase price.
Customers insuring progressive or multifo-cal glasses pay a premium of ¤ 50 per year and receive a ¤ 70 voucher for any model on which an additional charge applies. In addi-tion, in the event of damage to a pair of pro-gressive glasses, customers get 70% off the price of the repair.
Fashioneyewear
Fielmann introduced the open display of several thousand pairs of glasses in its stores. Today, it is the customer who chooses the frame. Each Fielmann store displays more than 2,000 differ-ent frames. Our employees guide our custom-ers through the world of fashionable eyewear
STRATEGY
Annual Report 2017 15
– major brands, international designer glasses and the fashionable Fielmann collection. All at the best prices.
Glasses have become established as a fashion accessory. They not only improve life quality but are also a reflection of the wearer’s personality, hence positively influencing the im-pression he or she makes.
It is in part because of Fielmann that glasses are on the fashion world’s agenda. Through choice, marketing and price policy, Fielmann has made glasses an affordable accessory and helped to raise the profile of glasses in the media.
BestPriceGuarantee
Our good reputation, the Best Price Guarantee and every customer’s right to redress all testify to the value-for-money we offer. The Best Price Guarantee is a cornerstone of our philosophy. If a customer sees a product being sold for less elsewhere within six weeks of buying it, Fielmann will take the item back and fully reimburse the customer. This means that Fielmann customers can rest assured that they have not paid one sin-gle euro too much. For us, the Best Price Guaran-tee is an obligation to permanently observe the competition. We observe more than 100,000 prices from the competition every year.
STRATEGY
16 Annual Report 2017
ThreeYearWarranty
Fielmann offers a Three Year Warranty on all glasses, including children’s glasses. Parents know how valuable this warranty can be. Cus-tomers buying from Fielmann are aware that they are purchasing tested quality. All frames in the Fielmann collection have been success-fully tested to EN ISO 12870 standards in our laboratories. They are rust-proof, non-fade and do not release nickel – as required by the Ger-man Commodities Ordinance.
SatisfactionGuarantee
Fielmann customers run no risks. Every com-plaint is taken seriously. If people are not satis-fied with their choice of new glasses, Fielmann will exchange the pair or reimburse the full purchase price. This guarantee is valid at any time. For us, complaints are an opportunity to
improve our advice and service. Only satisfied customers will recommend Fielmann to others.
Fashion,qualityandbestprices
Fielmann has made fashionable eyewear avail-able to everyone at the best prices.
Fielmann’s buying power in the optical in-dustry is equivalent to that of entire nations, selling 8.11 million glasses per year, more than 26,000 per day. Every year, we assemble more glasses than all the opticians in the Nether-lands, Austria, Switzerland, Sweden, Denmark and Norway together. The large quantities of glasses we sell allow us to purchase at competi-tive prices. We pass our low purchasing prices on to our customers.
The optical industry in Germany is made up of small to medium-sized companies. It is fragmented. The number of glasses sold per optician is small. Distribution costs are high. Productivity is low. The average optician sells fewer than 2 pairs of glasses per day. A Fiel-mann store, on the other hand, sells 35 glasses per day.
Opticians are craftsmen. The majority buy their frames and lens discs from distributors and industrial subcontractors. In a manual process, they assemble glasses in their workshops. Opti-cians can hardly assess the origin, quality and price of frames. Similarly, they are scarcely in a position to judge the structure of coatings and can only guess at the overall production costs of lenses. For this reason, a high price and an im-pressive designer logo quickly become the seal of quality for many opticians. The higher the brand’s status, the higher the price will usually be. The customers are left to pay the mark-up.
Fielmann is different. We are deeply rooted in the optical industry, know the manufacturers, prices and margins, and cover every stage of the value chain. Fielmann is a designer, manu-facturer, distributor and optician. We supply
STRATEGY
Annual Report 2017 17
our stores directly, thus cutting out any interme-diaries. For the Fielmann Collection, our stores act as factory outlets.
Fielmann buys frames from the same manu-facturers that the major brands buy from. In many cases, brands do not manage the pro-duction themselves, but simply buy them ready-made, print their famous names and then sell them with a high mark-up to the opticians. In the end, the opticians pay well above the factory price for branded eyewear.
At Fielmann, on the other hand, customers can get fashionable glasses from the Fielmann collection at what can be considered the whole-sale price of traditional opticians. Fielmann set-tles for the distributor’s margin. The prices of Fielmann Collection frames are around 70% lower than the prices for branded products, meaning those enhanced with a logo.
Fielmann also guarantees the best prices for branded eyewear and designer frames. We back this claim up with our Best Price Guaran-tee. In the brand segment, our prices are up to 50% lower than market prices.
Our production and logistics centre is lo-cated in Rathenow, the birthplace of German glasses production. Fielmann has bundled its expertise in production and logistics there. Un-der a single roof, we produce mineral-based and plastic lenses, fit them into the customers’ in-dividual frames and then deliver them overnight to our stores. We send more than 15 million items to our stores per year.
Competentopticians
The foundation of our success is our skilled and committed employees who embody our philosophy. They recognise themselves in the customers and offer them the kind of advice that they would like to receive themselves. Fielmann employees continuously participate in training courses, take tests and receive certifications.
With 18,522 employees, including 3,417 apprentices, Fielmann is the largest employer in Germany’s optical industry. We created 649 new jobs last year alone.
Fielmann is continuing to expand and we are increasing our efforts to recruit qualified new employees. At the end of last year, Fiel-mann launched a new campaign to attract ad-ditional apprentices. The website www.optiker-werden.de provides insights into the daily life of an optician working for the market leader and aims to excite young talents about the profes-sion.
We are confident that we will expand our market position. Our flexible working times en-sure that we have a family-friendly atmosphere. Approximately 30% of our employees work in part-time positions. The proportion of women in management positions stands at over 30%.
Trainingandprofessionaldevelopment
Every year, Fielmann invests tens of millions in training and development courses. The fur-ther training of our employees is an investment in the future. We can only extend our lead in the market if each and every one of our employees is the best in his or her field. We recognize elites: Fielmann offers talented young people clear objectives and compelling values.
In Germany, Fielmann is the industry‘s lead-ing training provider. Every year, over 10,000 young people apply for a vocational training course at Fielmann. After successfully passing an aptitude test, more than 1,200 young tal-ents start their career with us. With only 5% of all optical stores, Fielmann trains more than 40% of Germany’s future opticians. After suc-cessfully completing their training, we employ around 80% of the graduates, amounting to 4,000 of them over the last five years. In total, 3,417 apprentices are currently learning their trade with Germany’s market leader. National
STRATEGY
18 Annual Report 2017
awards testify to the high standard of our train-ing. In the German optical industry competition, Fielmann accounted for all national winners over the last seven years.
Fielmann makes an important contribution to the training of skilled trades in Germany. People who take part in training courses at Fielmann will be comfortable at all levels of the optical industry: skilled craftsmanship, indus-trial production and professional management. We are the only training provider in the indus-try that doesn’t just introduce its apprentices to the optical trade in general, but also includes its own frame production and its own lens sur-facing facility in the internal training program.
Clearly it is of great benefit to our customers that our staff has a specialist knowledge about the design and aesthetic concept of glasses, about the production of frames and lenses, and also about the customization process for their chosen glasses.
FielmannAcademyatPlönCastle
At Plön Castle Fielmann prepares the next generation of opticians. Every single year, Fiel-mann trains more than 7,000 opticians at Plön Castle. In addition to the full-time Master Opti-cian course, the Fielmann Academy also offers the part-time Master Optician course, which gives those who are tied to a certain location or
Plön Castle
STRATEGY
Annual Report 2017 19
restricted due to family commitments the oppor-tunity to obtain further qualifications and the chance to advance in their careers. Graduates of the Fielmann Academy will be well qualified for the future. The Fielmann Academy is also available to external opticians.
Newgenerationofopticalretail
In the last decades, the optical industry has seen the advent of ever larger optical stores, with staff numbers well in excess of 50. Such stores are equipped with the latest technology in refraction, contact lens fitting, workshop and consulting. This modern technology is backed up by sophisticated IT systems.
The ultra-modern Fielmann stores reflect this structural change. They are larger than the av-erage competitor’s stores, generating on aver-age six times the sales revenue of a standard German optician. Our super centres in large towns and cities have more than 50 employees on average and achieve an annual sales rev-enue of between ¤ 4 million and ¤ 20 million. The average sales of a traditional optician are just ¤ 0.3 million. Fielmann needs to train man-agers for these stores internally.
Ameasuredapproachtoexpansion
At the end of 2017, Fielmann operated 723 stores, of which 597 were in Germany, 42 were in Switzerland and 37 were in Austria. Germany continues to offer us great potential. Further to our expansion, we can realise signifi-cant growth by developing existing shops and moving to more attractive locations. Modernisa-tion and increasing floor space generally lead to double-digit improvements in sales.
In the German-speaking countries of Ger-many, Switzerland and Austria, our medium-term goal is to operate around 700 stores selling more than 8.6 million pairs of glasses with sales rev-enues of ¤ 1.8 billion. In Switzerland, we are plan-
ning to operate 45 stores in the mid-term, and 40 stores in both Austria and Poland. We are driving our expansion in Italy, where our mid-term goal is to operate 40 stores.
Digitization
We see great opportunities in the smart con-nection of digital services and in-store customer experience. In future, we will strengthen the links between our websites and our stores, and create new digital services for our customers. Fielmann is shaping the digitization of the opti-cal industry for the benefit of the customers.
Fielmann fulfils customer needs without compromising on quality. After successful tests in Austria, Fielmann delivers contact lenses to German customers’ homes for free. Addition-ally, we offer our customers the chance to reor-der their contact lenses online.
With regard to the current state of technol-ogy, we do not believe it is possible to fit and ship prescription glasses in Fielmann quality over the distance. Fielmann Ventures, our in-novation lab, is researching technologies that digitize eye testing and lens fitting.
Socialresponsibility
Fielmann assumes responsibility for customers, employees and for the society we live in. For Fielmann, investing in society is a matter of course because it is also an investment in the future.
Fielmann plants a tree for every employee every year. So far, we have planted more than 1.5 million trees and bushes. Fielmann manages long-term monitoring programs for environment and nature protection and supports medical re-search. We are committed to organic farming and the preservation of historical monuments, and also support kindergardens and schools. On top of all that, Fielmann also sponsors a wide range of youth sports.
20 Annual Report 2017
SHARES
Themarket
The year 2017 was characterized by economic recovery in almost all regions of the world at an unchanged low level of inflation. Expectations for the euro zone also increased significantly and the European Commission anticipates growth of 2.2% for 2017. This is the highest growth rate for ten years.
While the US Federal Reserve raised the base interest rate three times, the European Central Bank (ECB) kept the base interest rate in the euro zone at zero. Yet it was decided to halve the monthly bond purchases from Janu-ary 2018 to ¤ 30 billion. This programme is set to run at least until September 2018. As a consequence, the Euro-Bund Future remained at a record level in a corridor between 160 and 166 points. The single European currency recorded a significant recovery compared to the US dollar and the Swiss franc.
Fielmann shares
ComparisonofFielmannsharepriceperformance,DAX,MDAX,andSDAX
Worldwide stock exchanges achieved new record levels. At the beginning of November, the German Share Index (Dax) posted a re-cord high of 13,440 points. During the period under review, the DAX increased by a total of 12.5%.
Fielmannshares
In a stable macroeconomic environment, the in-ternational capital markets developed very posi-tively with limited volatility. Fielmann shares also experienced a positive development and stead-ily rose to a new all-time high by the end of Oc-tober. On 31 December 2017, Fielmann shares closed the year at ¤ 73.52 per share, which is a gain of 17.2% compared to the same date of the previous year. As at the reporting date and bearing in mind all 84 million issued common shares (unit shares), the market capitalisation of Fielmann AG amounted to ¤ 6.2 billion.
130 %
125 %
120 %
115 %
110 %
105 %
100 %
1 January 2017 Fielmann DAX MDAX SDAX 31 December 2017
Annual Report 2017 21
SHARES
Dividend
Fielmann is comitted to a shareholder-friendly dividend policy. Our continued growth and solid corporate financing have allowed us to increase our dividend year on year. The suc-cess of our company is always the success of our shareholders.
For this reason, the Supervisory and Man-agement Boards will recommend a dividend of ¤ 1.85 per share to the Annual General Meet-ing in Hamburg, Germany, on 12 July 2018. If the Annual General Meeting agrees, this will represent the 13th consecutive dividend increase. This represents a dividend yield of 2.5% on the year-end closing price of ¤ 73.52. If it is agreed upon at the annual shareholders’ meeting, this would be the 13th consecutive dividend increase.
Investorrelations
Fielmann maintains an open and transparent communication. Our dialogue with sharehold-ers, analysts, investors and the financial press
Financialcalendar
Quarterly report
26 April 2018
Annual General Meeting
12 July 2018
Dividend payout
17 July 2018
Half-year report
30 August 2018
Analysts’ conference
31 August 2018
Quarterly report
1 November 2018
Preliminary figures for 2018
February 2019
Bloomberg code
FIE
Reuters code
FIEG.DE
Securities ID number/ISIN
DE0005772206
is extremely important to us as it serves to strengthen confidence in our company and its philosophy.
Fielmann presents itself at various individual meetings and conferences both in Germany and abroad. In 2018, Fielmann was compre-hensively assessed by numerous renowned analysts and investment banks. We provide an up-to-date overview on our website.
KeyfiguresFielmannshares 2017 2016
Number of shares as at 31.12. millions 84.00 84.00
Highest price ¤ 77.47 74.49
Lowest price ¤ 62.84 58.41
Year-end price ¤ 73.52 62.75
Price/earnings (PIE) ratio 36.76 34.86
Price/cash flow ratio 21.50 24.04
Sales of Fielmann shares in ¤ m 1,547.73 1,584.41
Total dividend payout in ¤ m 155.40 151.20
KeyfiguresperFielmannshare 2017 2016
Net income for the year ¤ 2.06 2.04
Earnings ¤ 2.00 1.98
Cash flow ¤ 3.42 2.61
Equity capital as per balance sheet ¤ 8.27 8.17
Dividend ¤ 1.85 1.80
Furtherinformation:
Fielmann Aktiengesellschaft Investor Relations · Weidestraße 118 a 22083 HamburgTel.: + 49 (0) 40 - 270 76 - 442 Fax: + 49 (0) 40 - 270 76 - 150 Website: http://www.fielmann.comEmail: [email protected]
This annual report is also available in German. The German annual accounts for Fielmann Aktienge sellschaft are also available on re-quest.
INDUSTRY
22 Annual Report 2017
INDUSTRY
Annual Report 2017 23
Oneintwopeoplewearglasses
In Germany, one in two people wear glasses. Among adults aged 16 or over, the figure is 64%, or 40 million. More than 73% of the 45 to 59 age group wear glasses, as do virtu-ally all pensioners. In the second half of life, even people with normal sight need reading glasses. (Allensbach, KGS)
Unitsalesandsalesrevenue
For 2017, the German Central Association of Opticians (Zentralverband der Augenoptiker, ZVA) estimated that the total number of glasses sold amounted to 12.74 million pairs. Total sales revenue rose by 2.8% to ¤ 6.12 billion.
There are no reliable figures for Austria or Switzerland. Fielmann estimates that units sold in Switzerland totalled around 1.0 million pairs of glasses, while the sales revenues stood at approximately ¤ 1.2 billion. There are 1,100 optical stores in Switzerland. In Austria, all opti-cal providers sold around 1.3 million pairs, gen-erating sales revenues of ¤ 0.5 billion. There are 1,200 optical stores in Austria.
(ZVA, Spectaris, SOV, WKO, Kurier)
Distancesales
E-commerce has continued to gain importance in many industries over the last few years. Glasses, sunglasses and contact lenses are of-fered for sale online. For 2017, the German Central Association of Opticians (ZVA) esti-mated the turnover for the e-commerce busi-ness to be ¤ 0.26 billion: 4% of the total sales for the optical industry. Furthermore, the ZVA estimated the turnover for prescription glasses via e-commerce to be ¤ 0.07 billion. This cor-responds to around 1% of optical sales. (ZVA)
In the optical industry, the majority of e-com-merce sales are generated with contact lenses. When it comes to glasses, online vendors are
not capable of determining the right prescrip-tion or fitting a pair of glasses. Glasses ordered online are products of chance. Imprecise data can lead to prismatic side-effects, fatigue, ill-ness, headaches or even double vision. To en-sure a proper fit, a pair of glasses has to be individually fitted by an optician.
Opticalstores
In 2017, there were 11,700 optical stores op-erating in Germany. 48,600 employees were working in optical retail. Chains account for 18% of all optical retail stores in Germany. The proportion of chains is higher in neighbouring European countries, standing at 24% in Swit-zerland and 30% in Austria. (ZVA)
Uniteconomics
On average, a traditional optical store in Ger-many sells fewer than two pairs of glasses per day. A typical Fielmann store, on the other hand, sells 35 every day. The average optician sells fewer than 600 pairs per year. Fielmann sells on average more than 10,000 pairs of glasses per shop per year.
The average sales of a traditional optical store in Germany stands at around ¤ 0.3 mil-lion. By comparison, a Fielmann store in Ger-many records average sales revenues of ¤ 2.0 million. In Austria, an average Fielmann store posts revenues of ¤ 2.6 million and in Switzer-land our average sales are ¤ 5.1 million.
(ZVA)
Market overview
30 20 10 0 Germany Switzer- Austria land
18
24
30
StoresaturationNumber of stores (%)
6.0 4.0 2.0 0 Germany Austria Switzer- land
2.02.6
5.1
Averagesalesper Fielmann storein ¤ million
INDUSTRY
24 Annual Report 2017
Theopticalprofession
Opticians regard themselves as healthcare pro-fessionals who help people with poor eyesight. In Germany, opticians are permitted to carry out eyesight tests, determine prescriptions and fit contact lenses. Opticians advise their custom-ers on the choice of lenses and frames, and manufacture individual pairs of glasses in their workshops from bought-in frames and lenses.
In Germany, every optical retail store ap-proved by health insurance schemes must be managed by a master optician. As craftspeo-ple, German opticians are organised in guilds. Fielmann is also a member of the guilds. More than half of the owner-managed stores are members of marketing or purchasing groups.
(ZVA)
Glassesareafashionaccessory
On average, ametropic Germans buy a new pair of glasses every four years. Besides a change in prescription, the most important rea-sons for buying a new pair of glasses are wear and tear, breakage, loss and changing fashion trends.
For some time now, eyewear has been re-garded as more than just a means for correcting vision. Glasses communicate an image. Through its pricing policy and selection, Fielmann has transformed glasses into affordable fashion ac-cessories and established them in the media. In today’s fashion magazines, you will find far more glasses pictured in the pages than was the case years ago. Many of those featured are from Fiel-mann as we provide a free lending service to the media and photographers.
(Allensbach, Spectaris, Emnid)
Lenses
Not all lenses are the same. Fewer than 5% of all lenses are still mineral-based. Although mineral lenses are a little heavier than organic ones, they are particularly scratch resistant.
Today, more than 95% of all lenses are produced from organic plastics. In the case of plastic lenses, the lightweight and largely shatter-proof CR 39 materials predominate. To prevent scratching, the surface of lenses is often fitted with a hard coating. High index plastic materi-als are increasingly used to produce thinner and lighter lenses. The demand for improved lens technology, like anti-reflective coating, coatings that prevent glare on all lenses, is increasing.
(GfK, Spectaris, ZVA)
Progressivelenses:agrowthmarket
In the second half of life (45+), virtually eve-ryone needs a pair of reading glasses. Those who have worn glasses since they were young usually need glasses for both near and distance
INDUSTRY
Annual Report 2017 25
vision as they become older. Progressive lenses are the most convenient and modern choice.
These days, bifocals with a visible reading segment are increasingly being replaced by progressive lenses. To the onlooker, progres-sive lenses are not recognisably different from the single-vision lenses worn when younger. However, increased convenience comes at a price. The more complex surface geometry of progressive lenses and the time it takes for ad-justment make them an average of four times more expensive than single-vision lenses.
Fielmann is outperforming the industry in sales of progressive lenses. This is explained by the structure of our customer base. Fielmann customers are generally younger than those of our traditional competitors. They remain loyal to us over a period of many years. Consequently, even without gaining any new customers, the progressive share of Fielmann sales is set to rise by more than 50% in the medium term.
(Allensbach, KGS, GfK)
Sunglasses
Sunglasses offer considerable growth potential for opticians. Every year, some 20 million pairs of sunglasses are sold in Germany. The weather is a significant factor: when the sun shines, de-mand rises. Over four-fifths of sunglasses are sold over the counters of department stores, pharmacies, boutiques, fashion retailers, sports shops, specialist retailers and petrol stations.
Only one in five pairs of sunglasses is sold by an optician. Yet a trend towards more ex-pensive glasses with a fashion label and guar-anteed UV protection can be observed. This development is being fostered by the debate on the harmful effects of UV radiation. Since only 45% of all glasses wearers have prescription sunglasses to date, Fielmann is anticipating fur-ther growth from the rising share of high quality and fashionable sunglasses with prescription.
(Allensbach, KGS, Spectaris)
Contactlenses
Contact lenses are gaining ground in Germany. While to date only 5% of the German popula-tion use contact lenses, the figure is 17% in Sweden and 18% in Switzerland.
New developments in soft lenses, such as one-day contact lenses, which are easy and comfortable to wear, and new multifocal con-tacts are likely to further stimulate growth in the German market.
In 2017, the sales revenues from contact lenses, accessories and lens care products amounted to around ¤ 0.6 billion in Germany. The share attributable to opticians was ¤ 0.4 billion. Besides opticians, contact lenses are also sold by ophthalmologists. In addition, online shops and other sales channels, such as pharmacies and drug stores, offer contact lenses too. Over the next few years, Fielmann expects to double its sales revenue for contact lenses and accessories.
(Allensbach, KGS, Spectaris, ZVA, GfK)
Hearingaids
Hearing aids are a growth market. In 2017, more than 1.3 million hearing aids were fitted by ENT doctors and 6,400 hearing aid shops in Germany. Sales revenues for this sector stand at ¤ 1.4 billion.
As with the optical industry, the audiology industry is very fragmented. Consequently, prices are very high. The hearing aid market is similar in structure to that of the optical indus-try 30 years ago. In our industrialised society, people are living longer and have ever greater demands. They not only want to see well, but also to hear well. Our long-standing customers in the core catchment areas alone require more than 100,000 hearing aids per year. At the end of the reporting year, Fielmann had 180 hearing aid centres, with plans to increase this to 250 in the medium term. (BIHA)
Shareofpopulationwearingcontactlensesin %
15 10 5 0 Germany Sweden Switzer- land
5
1718
Sources
BIHA Bundesinnung der Hör-geräteakustiker (Federal Guild of Hearing Aid Acousticians)
GfK Gesellschaft für Konsum-güterforschung (Society for Consumer Research)
KGS Kuratorium Gutes Sehen (Good Vision Board of Trustees)
SOV Schweizer Optikverband (Swiss Optical Associa-tion)
WKO – Wirtschaftskammer Österreich (Austrian Fed-eral Economic Chamber)
ZVA Zentralverband der Augenoptiker (Central Association of Opticians)
CONSOLIDATED ACCOUNTS
Content
Consolidatedaccountsforfinancialyear2017
28 GroupManagementReport
forfinancialyear2017
60 Consolidated balance sheet as at 31 December 2017
62 Consolidated profit and loss statement
for the period from 1 January to 31 December 2017
63 Statement of the overall result
64 Movement in Group equity
66 Cash flow statement for the Fielmann Group
67 Notestotheconsolidatedaccounts
forfinancialyear2017
67 Segment reporting for the Fielmann Group
68 General information
69 Application of new and amended standards
72 Key accounting and valuation principles
82 Notes to the consolidated accounts
120 Information on related parties (IAS 24)
122 Other information
124 Statement of holdings and scope of consolidation
as at 31 December 2017
135 Auditor‘sreport
142 Fielmannstores
Fielmann Group Annual Report
for financial year 2017
26 Annual Report 2017
CONSOLIDATED ACCOUNTS
Annual Report 2017 27
MANAGEMENT REPORT
28 AnnualReport2017
Management Report for the Fielmann Group for the Financial Year 2017
Fielmann Fielmannstandsforfashionableeyewearatfairprices.90%ofallGer-mancitizenshaveheardofFielmann.Wearethemarketleader.24millionpeoplewearapairofglassesfromFielmann.InGermany,thecompanysellsoverhalfofallglassesonthemarket.
Wearedeeplyrootedintheopticalindustryandareactiveateverylevelofthevaluechainintheopticalindustry.Fielmannisadesigner,manufacturer,distributorandoptician.
Withcustomer-friendlyservices,glassesatthebestpricesandwide-rangingguar-antees,Fielmannhasincreasedthenumberofunitssold,salesrevenueandprofitsforthereportingyearunderreview.
Unitsalesroseto8.11million(previousyear:7.99millionglasses).ExternalsalesincludingVATgrewto¤1,606.2million(previousyear:¤1,549.8million)andcon-solidatedsalesroseto¤1,386.0million(previousyear:¤1,337.2million).Pre-taxprofitsgrewto¤248.6million(previousyear:¤241.5million)andnetincomefortheyearwentupto¤172.9million(previousyear:¤171.2million).
Earningspersharestandat¤2.00(previousyear:¤1.98).At theendof thereportingyear,Fielmannoperated723stores (previousyear:704stores),180ofwhichalsocontainedhearingaidstudios(previousyear:168hearingaidstudios).
2017 2016
Consolidatednetincomefortheyear in¤m 172.9 171.2
Incomeattributabletoothershareholders in¤m 5.2 4.9
Result for the period in¤m 167.7 166.3
Numberofshares inmillions 84 84
Earnings per share ¤ 2.00 1.98
TheconsolidatedaccountsofFielmannAktiengesellschaftanditssubsidiarieshavebeenpreparedinaccordancewiththeInternationalFinancialReportingStandards(IFRS including InternationalAccountingStandards) valid for the reportingperiod,statementsof theIFRSInterpretationsCommittee(IFRSIC)andtheformerStandingInterpretationsCommittee(SIC)whenevertheywereapplicablewithintheEuropeanUnion(EU)andwhentheyweretobeappliedonamandatoryorvoluntarybasisinthereportingyear.Furthermore,theprovisionsundercommerciallawpursuanttoSection315ePara1oftheGermanCommercialCode(HGB)werealsoobserved.
Quantities sold inmillionpairs
7.55.02.5 0 ’15 ’16 ’17
7.8 8.0 8.1
15001000 500 0 ’15 ’16 ’17
1,3001,386
Consolidated sales inmillion¤
1,337
1.81.20.6 0 ’15 ’16 ’17
2.00
Earnings persharein¤
1.97 1.98
MANAGEMENT REPORT
AnnualReport2017 29
General Conditions
Europe Theyear2017wasmarkedbyaseriesofsignificantpoliticaleventscom-binedwithawidespreadeconomicupturn.BesidestheelectionsinFrance,theNeth-erlands,AustriaandGermany,thenegotiationsontheUK’sdeparturefromtheEUandanearlygeneralelectionthereinfluencedthedevelopmentswithintheEuropeanUnion.Nationalisttendenciesandthedesireofsomeregionstogainautonomyrep-resentchallengestotheEuropeanUnion’spoliticalinstitutions.
However,thepoliticaldevelopmentsonlyhadalimitedeffectonthecapitalmar-ket.Withintheeurozone,theerstwhilecrisiscountriesofSpain,PortugalandGreecemanagedtorecordgrowthratesofupto3%.ThedevelopmentinItalyandFrance,however,remainslesspositive.Thegrossdomesticproduct(EU19)fortheyearasawholeincreasedby2.5%(previousyear:1.7%).
Thesituationonthelabourmarketintheeurozonehascontinuedtoimprove,withunemploymenthittingitslowestlevelforalmostnineyears.Therateofunemploymentintheeurozone(EU19)fellto9.1%,after10.0%inthepreviousyear.Thedevelop-mentsintheEuropeanUnionareverydifferentandrangefrom2.9%intheCzechRepublicto16.4%inSpain.
TheexpansionarymonetarypolicyoftheECBaswellasanincreaseinenergyandfoodcostssawtherateofinflationintheeurozoneriseto1.4%(previousyear:1.1%).Thetargetofjustunder2.0%wasthereforemissedoncemore.
In2017,Europe’s capitalmarketswereagain influencedby thepurchasepro-grammeof theEuropeanCentralBank (ECB).Thismeant that the interest rates re-mainedatrecordlowlevels.
Germany TheGermaneconomyisexperiencingapowerfulupturn.In2017,Ger-manygrewmoresignificantlythaninpreviousyears.Infact,thethegrossdomesticproduct (GDP) adjusted for price rose by 2.2% in 2017 although there were anaverage of4 fewer shoppingdays than in the previous year.Consumer demandfromprivatehouseholdsremainedlively.Theconsumers’propensitytobuyandthecorrespondingsentimentintheretailindustrywerepositive.
Thehighdemandforlabourinmanypartsoftheeconomysawemploymentlevelsreacharecordhigh,withsomeregionsachievingevenfullemployment.Unemploymentandunderemploymentcontinuetofall.Onaveragefortheyear,thenumberofunem-ployedpeoplefellforthefourthtimeinarow,employmentsubjecttosocialsecuritycontributionsincreasedsignificantlyandemployers’demandfornewstaffroseagaincomparedtothepreviousyear.
3210 Switzer-GermanyAustria land
1.0
2.2
3.0
GDP growth rate 2017in%
Price inflation 2017in%
210
Switzer-GermanyAustria land
0.5
2.1
1.6
MANAGEMENT REPORT
30 AnnualReport2017
Incomparisonto2016,employmentincreasedbyanother638,000individuals(previousyear:increaseof425,000).AccordingtotheFederalStatisticalOffice,theworkingpopulationinGermanyin2017numberedonaveragearound44.3million(previousyear:43.4million),whichismorethaneverbefore.Thenumberofvacan-ciestobefilledincreasedbyapprox.76,000overthecourseoftheyearto731,000(previousyear:655,000vacancies).Theaveragenumberofunemployedfortheyeardecreasedby158,000tolessthan2.5million(previousyear:2.7million),represen-tingarateofunemploymentof5.7%(previousyear:6.1%).
Againstthebackgroundofpositivedevelopmentsonthelabourmarket,realpayincreases and low interest rates, growth impulses camemainly from the domesticmarket.Privateconsumerexpenditureadjustedforpricewas1.9%higherthanoneyearago(previousyear:2.1%),whilegovernmentconsumerexpenditureincreasedby1.6%(previousyear:3.7%).Incomparisontothepreviousyear,theGermanretailbusinessrecordeda2.3%increase in turnover inreal terms (previousyear:1.6%)accordingtopreliminaryestimates.
Germanexportsalsoincreasedonaveragefortheyearin2017.Theprice-adjus-tedexportsofgoodsandserviceswere4.7%higherthaninthepreviousyear(pre-viousyear:2.6%).Importsroseoverthesameperiodby5.1%(previousyear:3.9%).
Increasedcostsforenergy,rentsandfoodsawinflationinGermanyin2017risetoitshighestlevelforfiveyears.Afterpricesonlyroseby0.5%lastyear,thepricesfor2017increasedby1.8%.
Switzerland The8.5%depreciationof theSwiss francover thecourseof2017comparedtotheeurohadanoticeablystimulatingeffectondomesticdemand.Attheendoftheyear,theSwissfranc’sexchangeratewas1.1693(previousyear:1.0750)andthusclosertotherateof1.20francstotheeurowhentheSwissNationalBank(SNB)intervenedwithsupportbuyingthroughtoJanuary2015.
Sales for theyear inSwissretail remainedalmostunchanged(-0.6%;previousyear: -0.9%). Improvementson the labourmarketandconsumerconfidencehadapositiveimpactonretaildevelopmentinSwitzerland.Thiswasslightlyoffsetbythegrowingsalesrecordedbyforeigndistancesellers.
Themechanicalengineeringbusinessaswellastheelectricalandmetalindustriesovercame the currency-related setbackof theprevious years.According toCreditSuisse,productioninSwissindustrialfirmsincreasedsustainablyandthevolumeofordersgrewsignificantlyin2017.
Unemployment rate 2016in%
9.06.03.00.0 Switzer-GermanyAustria land
3.2
8.5
5.7
MANAGEMENT REPORT
AnnualReport2017 31
Switzerland’s sizeable tourism industry experienced a turnaround in fortunes.Therewasalargeincreaseinthenumberofovernightstaysforthefirsttimesincetheonsetoftheeurocrisis.
Overall,Switzerland’srealGDPisexpectedtoimproveby1.0%in2017com-paredtolastyear(previousyear:1.4%).
Theeconomicupturnalsohasapositiveeffectonthelabourmarket,whichhadalreadyproventoberelativelyrobustinpreviousyears.Therateofunemploymentaveraged3.2%fortheyear(previousyear:3.3%).
TheappreciationoftheCHFin2015reducedthepriceofimports,whilelowerenergyandoilpricescauseddeflation.Pricesincreasedagainin2017forthefirsttimeinsixyearsby0.5%(previousyear:–0.4%).
Austria According to preliminary estimates, the Austrian economy recorded agrowthof3.0%for2017(previousyear:1.5%).Againstthebackgroundofamark-edly improvedglobal economic climate, equipment investment increasedby7.0%(previousyear:6.4%)andexportsgrewby5.8%(previousyear:2.8%),accordingtotheVienna-basedInstituteforAdvancedStudies.Livelydomesticdemandcombinedwithasignificantgrowthinexportscontributedtoa5.1%increaseinimports(previousyear:4.5%).Inthiscontext,privateconsumerspendinginAustriawasexpectedtoriseby1.5(previousyear:1.5%).Consumptiongrowthwasaidedbysignificantlyincreasingrealincomesandgreaterconsumerconfidence.Thedevelopmentsinthetourismindustryhadapositiveeffect.TheincreaseinunemploymentinAustriawasbroughttoanend.Theunemploymentrateremainedatanaverageof8.5%fortheyear(previousyear:9.1%).Consumerpricesincreasedslightlysincethemiddleoftheyearinlinewithrisingenergycosts.Therateofinflationwas2.1%onaveragefortheyearin2017(previousyear:0.9%).
Italy Theeurozone’sthirdlargestnationaleconomy,afterGermanyandFrance,hasbeendevelopingmoreslowlyfromaneconomicperspectivethanothercountriesinthesamecurrencyareaformanyyearsnow.TheconsequencesofthebankingcrisiscanstillbeseeninItaly.Evenin2017,Italianbankshadtobehelpedoutwithstateassistancetothetuneofmillionsofeuros.Italy’soverallpublicdebtamountedto133%oftheGDP,whichisstillfarhigherthanthelevelsagreeduponbytheEUcountries.
12 8 4 0 GermanyAustria Switzer- land
1.11.2
11.7
Specialized opticalstores 2017 inthousand
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32 AnnualReport2017
Italywas inaphaseof transition in2017after the failureofareferendumonpoliticalandsocialreforms.However,themeasuresintroducedbythepreviousgov-ernmentledtoaneconomicupturn.Notleastduetothegrowingnumberofexports,thegrossdomesticproductincreasedby1.5%whichwasthebestperformancesince2010.Thehighlevelsofyouthunemploymentwasreducedfrom40%to32.2%.Akeyreasonforthisdeclineisthesignificantincreaseinemploymentsubjecttosocialsecuritycontributions.Overall,therateofunemploymentstoodatapprox.11.4%in2017.Pricesonlyincreasedby1.0%in2017andthereforeclearlymissedthetargetsetbytheECB.
Poland From a foreign policy perspective, certain reforms in Poland damagedrelationstotheEuropeanUnion.Economically,however,Polandcontinuestoenjoyanupswing,whichissustainedbyexports,investmentandconsumption.Forthere-portingyear,theGDPwasanticipatedtogrowby4.6%,after2.9%inthepreviousyear.Withconsumerspendingatover¤250billion,PolandisstillEasternEurope’sbiggestmarketbyfarin2017.
Polish employees are continuing to earn higher incomes.After a3.8% salaryincreasein2016,theNationalBankofPoland(NBP)hasstatedthatsalarieswillrisebyover5%in2017.
Over the last few years, Poland has recordedone of the highest increases inshoppingcentresalesareasinEurope.Asrentsinprimeshoppinglocationsremainveryhigh,manyshoppingcentresstillexhibitsignificantdegreesofvacancies.Whenobservingnewrentalspaceleased,weseeaslightimprovementforretailtenants.
Therateofunemploymentis6.6%andhasthereforedroppedtothelowestlevelsince2008(previousyear:8.2%).
6.04.02.0 0 GermanyAustria Switzer- land
2.02.6
5.1
Average sales revenue Fielmannstoresinmillion¤
MANAGEMENT REPORT
AnnualReport2017 33
Eastern Europe TheongoingcrisisinUkraineiscontinuingtohaveahugeimpactonthecountry’seconomicdevelopment.Thedepreciationofthenationalcurrency,thedeclineinindustrialproductionandtherisingenergypriceshavetogetherresultedinanotherincreaseinthecostofliving.However,thisincreasewasmuchlowerat13.7%(previousyear:12.4%)thanin2014and2015whenthepricesincreasedby24.9%and43.3%respectively.ThelivingstandardsofUkrainianshavedeterioratedrapidlysincetheoutbreakofthedisputewithRussia,althoughthecentralbankhasestimatedUkraine'seconomicoutputtohaveincreasedby2.1%in2017(previousyear:1.5%).Inthewakeofcontinuedpoliticalandeconomictensions,theUkrainianhryvniadroppedevenfurtherinvalue.Fortheyearasawhole,thehryvniafellby–15.2%comparedtotheeuro(previousyear:–7.7%)withtheconsequencethatim-portsincreasedinpricebythesamelevel.Thedevaluationofthecurrencycontinuedinthefirstweeksofthenewyear.
TheeconomicsituationinBelarusremainscritical.Contrarytoearlierpredictions,thegrossdomesticproduct (GDP) for theRepublicofBelarus in2017only showsminimalgrowth.Accordingtostatestatistics,theGDProseby2.4%.YetthebusinessdevelopmentagencyoftheFederalRepublicofGermanyanticipatesanincreaseof0.7%(previousyear:–2.6%),whiletheInternationalMonetaryFund(IMF)andtheWorldBankdonotexpectanupswingfor2017.
The optical market MoreandmorepeopleinGermanyarenowwearingglasses.Ofthecurrent40.8millionownersofglasses,23.5millionwearglassespermanently.Aconsiderableincreaseinthenumberofpeoplewearingglassescomesinthe20to29agegroup.Thisfigurerosefrom26%in2008to32%lastyear.In1952,thefigurestoodatjust13%.
Asignificantincreasecanalsoberecordedforprogressiveglasses.Peoplewhohavewornglassessince theywereyoungusuallyneedglasses forbothnearanddistancevisionastheybecomeolder.Theshareofprogressiveglasseshascontinuallyrisentoapprox.37%overthelastfewyears.
TheGermanCentralAssociationofOpticians(ZentralverbandderAugenoptiker)calculatedthatin2017,thetotalnumberofunitssoldinGermanyamountedto11.91millionpairsofglasses(previousyear:11.85million),whichisanincreaseof0.5%.Accordingtotheassociation,thetotalsalesrevenuesrecordedbyopticiansincreasedby2.7%to¤5.86billion(previousyear:¤5.71billion).Includinge-commerce,itestimatesthatoverallsalesamountto¤6.12billion(previousyear:¤5.95billion).Theassociationreportsthatthenumberofopticalstoresincludingallstoresandop-eratingunitswas11,700attheendofthereportingperiod(previousyear:11,850).
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34 AnnualReport2017
Germany’sopticalindustryishighlyfragmented.ThetraditionalGermanopticiansellsfewerthantwopairsofglassesperday,whereasaFielmannstoresells35.Theaverageopticiansellsfewerthan600pairsofglassesperyear,whileFielmannsellsinexcessof10,000perstore,onaverage.
In2017,theaveragesalesrevenuesofatraditionalGermanopticianstoodun-changed,ataround¤0.3million.Bycomparison,aFielmannstoreinGermanyre-cordsaveragesalesof¤2.0million(previousyear:¤2.0million),whileanaveragestoreinAustriaregisters¤2.6million(previousyear:¤2.6million)andouraverageSwissstoregenerates¤5.1million(previousyear:¤5.3million).
Novalidfiguresareavailablefortheindustry’sperformanceinAustriaandSwit-zerland.Accordingtoourestimates,unitssoldinSwitzerlandremainedatonemillionglasses.AtCHF1.3billion,totalsalesweresimilartothepreviousyear'sfigure.ThenumberofopticalstoresinSwitzerlandremainedunchangedat1,100.
InAustria,itisestimatedthatunitssoldwillremainat1.3millionglasses.At¤0.5billion,totalsaleswerealsoonaparwiththepreviousyear'sfigure.Thenumberofopticalstoresremainedunchangedat1,200(previousyear:1,200stores)
The hearing aid market Hearingaidsareagrowthmarket.Studiesestimatethataround14millionindividualsinGermanysufferfromhearingimpairments.ThisfigureissettoincreaseinfuturewithimpairedhearingbeingoneofthetoptenhealthissuesinGermany.Today,approximately3.5millionpeoplewearhearingaids.In2017, therewere6,400hearing centres acrossGermany (previous year:6,130),whichfitted1.26millionaidsintotal(previousyear:1.17million).TheGermanFederalGuild forHearingHealthcareProfessionals (BundesinnungderHörgeräteakustiker)estimatesthatsalesrevenuesintheindustryamountedto¤1.4billion(previousyear:¤1.4billion).
Fielmann Group Fielmannhasshapedtheopticalindustry.Fielmannstandsforfashionableeyewearatfairprices.Wecovertheentirevaluechaininthisindustry.
InRathenow(Brandenburg,Germany)webundleourcompetenciesinmanufactur-ingandlogistics.Inthisstate-of-theartfacility,weproduce,edgeandmountlensesunderoneroof.
Inatwo-shiftoperation,wemanufactureonaveragemorethan19,000lensesperday.Onaverage,morethan57,000ordersareprocesseddaily(previousyear:56,000).In2017,weproducedmorethan4.8millionlensesandhandledmorethan8.1millionframes(previousyear:4.8millionlenses/8.0millionframes).
MANAGEMENT REPORT
AnnualReport2017 35
Fielmann Aktiengesellschaft FielmannAktiengesellschaft,whichhasitshead-quartersatWeidestraße118a,Hamburg,Germany,istheGroup’slistedparentcom-pany. It invests inandoperatesopticalbusinessesandhearingaid companies. Itfurthermoremanufacturesanddistributesvisualaidsandotheropticalproducts.Theseproductsincludeglasses,frames,lenses,sunglasses,contactlenses,relatedarticlesandaccessories. Italsosellsmerchandiseofallkindsaswellashearingaidsandtheiraccessories.
ThecompanyisrepresentedbyGüntherFielmann,ChiefExecutiveOfficer(CEO),bytwomembersoftheManagementBoard,orbyoneManagementBoardmemberandanauthorisedsignatory.
Corporate management Fielmann’skeyfinancialandnon-financialindicatorsrelevantfortheCorporateManagementincludecustomersatisfaction,unitssold,salesrevenuesandpre-taxearnings.
Onlysatisfiedcustomerswillremainloyaltothecompanyandensuresustainedlong-termgrowth.
The importanceof customer satisfaction is unique toFielmann.Customer satis-factionisoursinglemostimportantmetricwhichwedetermineandevaluateonanongoingbasisthroughcomprehensivesurveysonthestorelevel.Thesesurveysarecarriedoutincollaborationwithanindependentmarketresearchinstitute.
SegmentreportingiscarriedoutinlinewiththeGroup’sinternalmanagement,alongthesalesmarketsofGermany,Switzerland,AustriaandOther.
Economic report
Earnings Whiletherestoftheopticalindustry(includinge-commerce)inGermanyreportedan increase inunits soldof just1.0%,Fielmann registereda rise inunitssoldof1.5%inEuropeto8.11millionpairsofglasses(previousyear:7.99million).Overall,customersatisfactionremainedalmostunchangedat92.2%(previousyear:92.3%).ExternalsalesincludingVATgrewto¤1,606.2million(previousyear:¤1,549.8million)andconsolidated sales rose to¤1,386.0million (previousyear:¤1,337.2million).Thenumberofhearingaidssoldamountedto68,500(previousyear:58,300),whilehearingaidsales revenues totalled¤60.0million (previousyear:¤51.9million).
Net incomein¤million
180120 60 0 ’15 ’16 ’17
170.5 171.2 172.9
Pre-tax profitin¤million
240160 80 0 ’15 ’16 ’17
240.1 241.5 248.6
300200100 0 ’15 ’16 ’17
278.5291.3
EBITDA in¤million
281.6
MANAGEMENT REPORT
36 AnnualReport2017
Therewasasignificantdecreaseof9.1%inotheroperatingincometo¤14.2mil-lion(previousyear:¤15.6million).Thisitemmainlyincludesincomefromsublettingleasedproperty,thereversalofvalueadjustmentsandprovisionsaswellasforeignexchangegains.Incomefromtheevaluationofsecuritiesandrealizedpricegainsalsohadapositiveeffect in thefinancialyear2017.Due tocurrencydifferences,particularlybetweentheeuroandtheUSdollarandbetweentheeuroandtheSwissfranc, theFielmannGroupgeneratedonly¤0.7millionearnings in the reportingperiod,aftergenerating¤2.9millioninthepreviousyear.Incomefromwritingbackaccrualsfellby¤1.3million.
Costofmaterialsdroppedby0.9%to¤277.2million(previousyear:¤279.8million)andinrelationtoconsolidatedtotalsales,thecostfellfrom20.9%inthepre-viousyearto20.0%.Theincreasednumberofunitssoldmadeitpossibletoacquireadditionalsavings,particularlyonlenses.
Withacostratioof41.0%,personnelexpensesroseby¤28.9millioninabsolutetermsandamountedto¤568.7million(previousyear:¤539.9million).Thisismostlyareflectionofthe3.4%averageincreaseinstaffto18,153(previousyear:17,549employees).Ofthese,615employeesareworkinginhearingaidstudios(previousyear:492employees),representinganincreaseof25%.
Anotherreasonforthefurtherincreaseinpersonnelexpensesisthepositivebusi-nessdevelopmentofvariableremunerations.
Write-downs increasedby5.7% (¤2.3million) reaching¤42.3million. Thisincreaseisaresultofmuchgreaterinvestmentactivitiessincethefinancialyear2015,particularlyinstoreexpansions,renovationsandrelocations.
AspartoftheZenITproject,allthestoresinGermanyandAustriawerefittedwithtabletcomputersbytheendof2016.Thishasensuredamoreefficientprocessingofcustomerorders.Preparatorymeasureshavebeenundertakensince2017foraroll-outinSwissstoresin2017.
Thedigital contact lens services havebeenavailable inGermany since2016andwerefurtherdevelopedin2017.Theinternationalroll-outinselectedmarketsisbeingprepared.
There was a disproportionate increase of 4.9% in other operating income to¤263.3million(previousyear:¤250.9million).TheincreaseintheeurocomparedtoreferencecurrenciesliketheUSdollarandtheSwissfrancledtoa¤4.6millionriseinforeignexchangeconversioncosts.TherewerealsodecreasedconsultingcostsintheITdivisionof¤1.4million.
604020 0 GermanySwitzer- Austria land
53
Market share in terms of unit sales 2017,in%
33
46
Pre-tax return on sales 2017in%
1812 6 0 GermanySwitzer- Austria land
17.219.0 18.7
MANAGEMENT REPORT
AnnualReport2017 37
Whenviewedonanetbasis,thefinancialresultfellto¤–0.4million,asagainst¤–0.1millioninthepreviousyear.Thefinancialresultiscalculatedfromnon-casheffects(inconnectionwithcompoundedanddiscountedinterestbasedontheIFRS/IASvaluationofbalancesheetitems)andfromoperatingnetinterestincome(resultingfromtheinvestmentandborrowingoffinancialassets).
Theresultisduetofinancialandcapitalinvestments,andamountedtoatotalof¤0.8millionin2017,after¤1.3millioninthepreviousyear.
Theexpansionarymonetarypolicyofthecentralbankscontinuedtohaveastrongimpactonthesefigures.TherefinancinginterestrateoftheECBremainedunchangedat0%in2017.DuetotheECB’spurchaseprogrammeforgovernmentbondsandothersecurities,theinterestlevelremainedatarecordlowintheshort-tomid-termmaturi-ties.ParticularlyasaresultoftheinterestratedevelopmentintheUSA,thelong-terminterestratesincreasedmarginallytotheendoftheyear.Inmanycases,banksnownolongerpayinterestontimeandtermdepositswithamaturityofupto12months.
In the reportingperiod, thepre-taxprofit of the FielmannGroupamounted to¤ 248.6 million, which represents a 3.0% year-on-year increase (previous year:¤241.5million).Netincomefor theyeartotalled¤172.9million(previousyear:¤171.2million).ThetaxratiooftheFielmannGroupstoodat30.5%,after29.1%inthesameperiodofthepreviousyear.Theratioisinfluencedbytheresultofataxauditofthetaxableperiods2014and2015,whoseeffectsarealsorecordedinthe2017annualaccountsfortheyears2016and2017.Asapermanenteffectofthemodifiedallocation of incomeand expenses and the different profit tax rates inGermany,AustriaandSwitzerland,weanticipatean0.3%increaseinthetaxratiofrom2018comparedtothelong-termtaxrateof29.1%.For2017,thesegmentGermanywasallocated¤3.5millionmoreincomeandthesegmentsSwitzerlandandAustriawereallocated¤2.4millionand¤1.1millionlessincomerespectively(seeNote(43)).
Fielmannhas invested in themarketand inqualifiedemployees.Wearealsopushingaheadwithourexpansionandbuildingupournetworkofstores.
Thepre-taxreturnmargin(relativetoconsolidatedtotalsales)is17.9%(previousyear:18.1%),representinganetreturnof12.5%(previousyear:12.8%).Thereturnonequityaftertaxremainsunchangedat32.0%(previousyear:32.0%).
Earningsbeforeinterest,taxes,depreciationandamortisation(EBITDA)improvedto¤291.3million(previousyear:¤281.6million),andearningspershareis¤2.00(previousyear:¤1.98).
Theresultwasgeneratedby723stores(previousyear:704),180ofwhichhaveintegratedhearingaidstudios(previousyear:168stores).Inaddition,Fielmannop-erates46smallerstoresinBelarusandUkraine(previousyear:45locations).The25storesintheBalticStatesthatareoperatedbyafranchisepartnerarenotconsolidated(previousyear:24stores).
375250125 0 ’15 ’16 ’17
356.8 368.1350.1
Financial assets asat31.12.in¤million
MANAGEMENT REPORT
38 AnnualReport2017
Segments Inthereportingperiod,the597FielmannstoresinGermany(previousyear:589)soldatotalof6.74millionglasses(previousyear:6.64millionglasses)andgeneratedsalesrevenuesof¤1,163.9million(previousyear:¤1,108.3million).FielmannmaintaineditsmarketshareinGermany:with5%ofallopticalstores(previ-ousyear:5%),Fielmannachieveda21%salesmarketshare(previousyear:21%)anda53%marketshareintermsofunitssold(previousyear:53%).InGermany,Fielmannrecordedapre-taxresultof¤207.3million (previousyear:¤192.2million).Thepre-taxprofitmarginsalesamountedto19.0%(previousyear:18.2%).
InSwitzerland,the42Fielmannstores(previousyear:40stores)salesgeneratedunitsalesof472,000glasses(previousyear:470,000glasses).Salesrevenuesinthesegmentamountedto¤171.6million(previousyear:¤170.6million).
TheSwissfrancstoodatCHF1.11comparedtotheeuroontheyearlyaverage(previousyear:CHF1.09).Onacurrency-adjustedbasis, salesgrowthwas2.6%(previousyear:1.1%).Pre-taxearningsranto¤29.5million(previousyear:¤32.6million).Thereturnonsaleswas17.2%,after19.1%in2016.
With4%ofallopticalstoresinSwitzerland(previousyear:4%),Fielmannrecor-deda46%unitmarketshare(previousyear:45%)andasalesmarketshareamoun-tingto16%(previousyear:15%).
Inthereportingyear,unitssoldinthe37Austrianstores(previousyear:37)to-talled430,000glasses(previousyear:424,000).Salesrevenuesinthesegmentroseby3.3%to¤81.7million(previousyear:¤79.1million).Pre-taxearningsamountedto¤15.2million,after¤16.0millioninthepreviousyear.Thepre-taxprofitmarginsalesamountedto18.7%(previousyear:20.3%).
With3%ofallopticalstoresinAustria(previousyear:3%),Fielmannrecordeda33%unitmarketshare(previousyear:33%)andasalesmarketshareamountingto21%(previousyear:20%).
IntheEUmemberstatesofFrance,Italy,Luxembourg,theNetherlandsandPoland,theGroupoperates47locations(previousyear:38stores).Thesestoresaregroupedwithour46smallerstores(previousyear:45locations)inBelarusandUkraineandarerepresentedinthe“Other”segment.
UnitssoldinPolandremainedalmostunchangedat134,000glasses.Onaveragefortheyear,thePolishzlotywaspricedatPLN4.26for¤1.00(previousyear:PLN4.36).WhereastheturnoverinEURfellby1.8%,itremainedalmostconstantinPLN.Theresultsdevelopedaccordingly,withapre-taxreturnof7.4%(previousyear:7.0%).
Salesrevenuesinthe“Other”segmentamountedto¤39.4million(previousyear:¤32.9million).Pre-taxearningstotalled¤-3.9million(previousyear:¤0.5million),mainlyasaresultofstart-upcostsforthenewlyopenedstoresinItaly.
900600300 0 ’15 ’16 ’17
891.1925.7
Total Group assetsin¤million
913.5
MANAGEMENT REPORT
AnnualReport2017 39
Financial situation
Financial management ThefinancialsituationoftheFielmannGroupremainssolid.Thedividendpay-outoftheFielmannAktiengesellschaftforthefinancialyear2016inJune2017roseby2.9%to¤151.2million(previousyear:¤147.0million).Takingintoaccount the38.7%increasein investments to¤68.8million(previousyear:¤49.6million), thefinancialassetsasat thereportingdate fell to¤350.1million(previousyear:¤368.1million).Attheendofthereportingyear,financialresources(assetswithmaturityofuptothreemonthstotheacquisitiondate)amountedto¤172.1million(previousyear:¤114.0million).Forfurtherinformation,particularlywithregardtothechangedmaturitystructureofassets,pleaserefertoNote25intheNotestotheConsolidatedAccounts.
TheFielmannGroup’sinvestmentpolicyisdefensiveandfocusedonsafeguardingtheassetsof the company. Investmentguidelinesprovide caps forboth individualissuesandassetcategories.Investmentdecisionsaremadecentrally.Thelong-termliabilitiestobanksamountedto¤0.8million(previousyear:¤0.8million).Additionalavailableshort-termcreditlineswereusedsolelyforsureties.Cash flow trend and investments Year on year, cash flow fromoperatingactivitiesincreasedby31.0%to¤287.1millionoverthelastyear(¤219.2millionin2016).Themarkedincreaseisrelatedtothereturnsfromcapitalinvestments.Cashflowpershareconsequentlyclimbedto¤3.42(previousyear:¤2.61).
The cash flow from investment activity amounted to¤ –69.3million (previousyear: ¤ –49.0 million). The investment volume in the reporting year was ¤ 68.8million(previousyear:¤49.6million)andwasfinancedsolely throughFielmann’sownfunds.Theinvestmentsfocusedontheexpansionandmaintenanceofthestorenetwork.After their successful introduction inGermanyandAustriaaspartof theZenITproject,theroll-outwithtabletcomputerswaspreparedinthefinancialyearforthestoresinSwitzerland.ThedigitalcontactlensserviceshavebeenavailableinGermanysince2016andwerefurtherdevelopedin2017.Theinternationalroll-outinselectedmarketsisbeingprepared.
Thecashflowfromfinancingactivities,whichisessentiallyduetothedividendpayout,amountedto¤–159.7million(previousyear:¤–151.7million).
600400200 0 ’15 ’16 ’17
520,8 539,6
Equity capitalafterdeductionoftheproposeddividendin¤million
535,1
MANAGEMENT REPORT
40 AnnualReport2017
Assets
Assets and capital structure Inthereportingyear,totalGroupassetsroseby1.3%to¤925.7million(previousyear:¤913.5million).
Theincreaseinintangibleassetsof¤6.4millionislargelyconnectedtothefurtherdevelopmentofsoftwareforourcontact lensbusinessandtheacquisitionofmorestandardsoftwarelicenses.
The Group reported tangible fixed assets of ¤ 239.7 million (previous year:¤224.4million).TheshareofthetotalGroupassetsincreasedto25.9%(previousyear:24.6%).
Investmentsinnewstores,newhearingaidstudiosandtheconversionofexistingstoresaswellas theupgradeofour logistical capabilities inRathenowexceededdepreciationby62.8%.Asaresult,tangiblefixedassetsincreasedby¤15.3millionfortheyearasawhole(previousyear:¤1.2million).Aftertheproposeddividendpayout,theequitycoverfortangiblefixedassetsamountsto225.1%(previousyear:238.5%).
Thedecreaseofthenon-currentotherfinancialassetsof¤29.2millionisincon-nectionwiththeinvestmentoffreeliquidassetsincapitalinvestmentswitharemainingmaturityofoveroneyearat the timeofacquisition.This isalso thecontextof thedevelopmentofthecurrentfinancialassetsaswellasthecashandcashequivalents.
Currentassetsamountedto¤525.8million(previousyear:¤511.1million).Otherinventoriesremainedalmostunchangedandonlyroseby0.4%to¤128.7million(previousyear:¤128.1million).
Asatthereportingdate,tradereceivableswereupdisproportionatelyby¤4.4million to¤31.1million (previousyear:¤26.7million).Although the increase isnotable,inrelationtosalesitisnotsignificantonaccountofthebusinessmodel.
Consolidatedequitygrewby0.8%,or¤4.5million,andamountsto¤539.6million(previousyear:¤535.1million)afterthedeductionoftheproposeddividendpayoutof¤155.4million.ThesoundfinancialpositionoftheFielmannGroupisalsoreflectedinthehighequityratioof75.1%includingtheproposeddividend(previousyear:75.1%).
Accrualsamountedto¤66.6million(previousyear:¤64.8million).Theyarearisingprimarilyinconnectionwithperformance-basedstaffremunerationandcontri-butionstotradeassociations.Whilenon-currentaccrualsroseonlyby¤0.5million,currentaccrualsincreasedby3.2%,or¤1.3million.
Inthereportingyear,tradeliabilitiesincreasedby1.2%to¤63.8millionandaredirectlylinkedtothepurchasingvolumeanddevelopmentoftheinventories(previousyear:¤63.0million).
MANAGEMENT REPORT
AnnualReport2017 41
General statement of the management board
on the current financial situation
AtthetimeofpreparingthepresentAnnualReport,theManagementBoard’soutlookwithregardstotheoverallbusinessdevelopmentremainspositive.Asperthecurrentplan,theManagementBoardaimstofurtherimproveFielmann’smarketshareintermsofunitssold,salesandprofits.AsattheprintingdateofthisAnnualReport,businessperformancewasinlinewiththeManagementBoard’sexpectations.
Employees Fielmannistheindustry’sbiggestemployerinGermanyandSwitzer-land.Inthereportingyear,anaverageof18,153staffwereemployedintheGroup(previousyear:17,549employees).
Personnelexpensestotalled¤568.7million(previousyear:539.9million).Thepersonnelcostrate(inrelationtoconsolidatedtotalsales)amountedto41.0%(pre-viousyear:40.4%).
Fielmann’ssuccessistoalargedegreetheresultofthededicationofourgreatemployees.Fielmannisamoderncompany.Womenaccountformorethan70%ofourworkforceinGermany.TheproportionofwomeninthetopthreemanagementlevelsbelowtheManagementBoardstandsatover30%(previousyear:over30%).Theshareofhighlyqualifiedwomenwithprofessionalexperiencecontinuestorise.Byadoptingflexibleworkingarrangements,Fielmannhasestablishedafamily-friendlyenvironmentforitsemployees.Asatthereportingdate,30%ofour18,522employeesworkonapart-timebasis (previousyear:29.4%of17,873).Fielmann is thereforequitesuccessfulinaccommodatingindividualrequestsforabetterwork-lifebalance.
NotleastbecauseofdemographicchangesinGermany,SwitzerlandandAus-tria,Fielmannisrecruitingstaffatanearlyage.Throughawidevarietyoftrainingprogrammesweensureahighdegreeofqualification.Fielmannoffersawide-rang-ingspectrumofcareeroptionswithattractiveremunerationpackagesandfinancialdevelopmentprospects.WehavemadeworkingatFielmannevenmoreattractiveinrecentyears.
Aclear customer focushas takenFielmann to the top.Ourphilosophy isalsoreflected in the salaries paid to our employees.A considerableproportionof thebonusespaid tostoremanagersand theManagementBoard isdependenton thesatisfactionofourcustomers.Inaddition,Fielmanngivesitsemployeestheopportunitytoacquireaninterestinthecompany.Morethan85%(previousyear:85%)ofouremployeesholdFielmannsharesandreceivedividendsinadditiontotheirsalaries.Thisactsasamotivation.Ourcustomersbenefitasaresult.
Employee developmentGroup on an average
18.00012.000 6.000 0 ’15 ’16 ’17
16,96118,15317,549
Employee developmentGroupasat31.12.
18.00012.000 6.000 0 ’15 ’16 ’17
17,28718,522
17,873
Apprenticesasat31.12.
3.0002.0001.000 0 ’15 ’16 ’17
3,065
3,4173,190
MANAGEMENT REPORT
42 AnnualReport2017
Fielmann training and professional development FielmannstoresinGer-manyandabroadarerunbymasteropticiansandoptometrists.Theyaresupportedbyateamoffriendly,competentstaffconsistingmainlyofopticians.Fielmannisthebiggesttrainingproviderintheopticalindustry,employing3,417apprenticesbytheendoftheyear(previousyear:3,190).Ofthis,Germanyaccountsfor3,048app-rentices(previousyear:2,838).InSwitzerland,Fielmannemploys196apprentices(previousyear:184)andinAustriathereare165apprentices(previousyear:155).
Nationalawardstestifytothehighstandardofourtraining.IntheGermanopticalindustrycompetition,Fielmannaccountedforallnationalwinnersoverthelastsevenyears.
AtPlönCastle, Fielmann trainsyoung talent tobecome thenextgenerationofleadingopticians.Again in2017,more than7,000opticians successfullyfinishedcoursesatthePlönCastleFielmannAcademy.Since2012,Plönhasnotonlybeenthecentralsiteoftrainingandprofessionaldevelopment(CPD)foropticians,butalsoforhearingaidprofessionals.
State-of-the-arttechnologycombinedwithinnovativeteachingmethodsaddtothehighstandardofourtraining.
TheFielmannAcademyColloquiainPlönhavebecomeestablishedasaperma-nentfixturefortheexchangebetweenscienceandpracticalapplication.Intotal,morethan5,000visitorshaveattended39eventssince2007todiscussthelatesttrendsintheopticalindustry.
Comparison of planned/actual data 2017 TheFielmannGroupformulateditsexpectationsregardingtheGroup’sbusinessdevelopmentin2017intheformofaforecastinthe2016AnnualReport.Theseexpectationshavebeenlargelymet.
Fielmannexpandeditssalesnetworkinthefinancialyearbyafurther19stores.6newstoreswereopenedinGermany,7inItalyand2inSwitzerland(planfor2017:morethan10newstoreopenings).
Therewererelocationsandrenovationsat34locations.(Planfor2017:Fielmanndevelops its store network in Germany and presses ahead with its expansion inneighbouringcountries.InGerman-speakingareas,weexpandourstoresandmoveintobetterlocations).
In2017,atotalof¤68.8millionwasinvestedinexpanding,modernisingandmaintainingthestorenetwork,theproductionandourinfrastructure(planfor2017:¤61.1million).Investmentswereaccountedforasfollows:
755025 0 planned actual
61.1
Comparison Investments,2017in¤million
68.8
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Investmentsof¤51.9millionweremade inGermany (plan for2017:¤48.9million),¤0.5millioninAustria(planfor2017:¤1.5million),¤6.4millioninSwit-zerland(planfor2017:¤6.6million)and¤0.1millioninPoland(planfor2017:under¤1.0million).Spendingontherenovationofexistingstoresandopeningofnewonestotalled¤44.9million(planfor2017:¤36.3million).Around¤3.5millionwasinvestedinincreasingourproductioncapacity(planfor2017:¤5.8million)andafurther¤20.4millionwasinvestedintotheFielmannGroup’sinfrastructure(planfor2017:¤19.0million).
Lastyear,Fielmann investedmore than¤20million in trainingandcontinuedprofessionaldevelopment(planfor2017:¤20million).
Plannedmarketshareincreaseswereachievedasexpected,particularlyregio-nally,inthe2017financialyear.
Inthe2017financialyear,unitssoldincreasedby1.5%(planfor2017:slightriseinunitssoldcomparedtopreviousyear),consolidatedsalesroseby3.6%(planfor2017:salesexpansionslightlybelowtheaverageofpreviousyears;averageincreasefrom2012to2016:4.9%).Therewerefourfewershoppingdaysin2017comparedto thepreviousyear.Thiseffectcouldbe felt in the fourthquarter inparticular. Inaddition,theweakerSwissfrancincomparisontothepreviousyearhadanegativeimpactontheconsolidatedsales.
Pre-taxearningsamountto¤248.6millionandarethereforeslightlyhigherthaninthepreviousyear(planfor2017:pre-taxearningsatthelevelofthepreviousyear).Customersatisfactionstandsat92.2%(planfor2017:toholdcustomersatisfactionofover90%atthepresentlevel).Asplanned,shareholdersbenefitedfromthecompany‘ssuccessthroughanincreaseof2.8%inthedividendpayoutfrom¤1.80to¤1.85.Thistranslatesintoareturnonsalesandequitythataresurprisinglyhighforaretailbusiness(pre-taxprofitmarginonsales:17.9%;returnonequityaftertax:32.0%).
Remuneration report Inprinciple,ManagementBoardcontractsrunforthreeyears. Management Board emoluments for work carried out in the financial yeararedividedintofixedandvariableperformance-relatedcomponents.ThememberoftheManagementBoardwholeft thecompanyon30June2017wasgrantedapensionundertakingworth40%ofhisfinalgrosssalary.TheindividualpecuniarybenefitfortheprivateuseofcompanycarsandthepremiumforaFielmannGroupaccidentinsurancepolicyfortheManagementBoardmembersareattributedtothefixedremunerationprorata.ThebonussystemthatappliestoallManagementBoardmemberscomprisesthefollowing:
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ThestrictcustomerorientationoftheFielmannGroupasthecoreofitscorporatephilosophyisreflectedinthevariableremunerationcomponentoftheManagementBoardcontract.Bonusesaresplitintotwoparts.BonusIisbasedonnetincomefortheyear.BonusIIisaimedatpromotingthecompany’slong-termdevelopment.BonusIIiscalculatedonthebasisofcustomersatisfaction.
ForBonusI,thebonuspercentagethathasbeenagreedfortheindividualMa-nagementBoardmembersismultipliedby70%oftheadjustedannualnetprofitoftheFielmannGroup.ForBonusII,theindividualbonuspercentageisinitiallycalcu-latedas30%oftheadjustedannualnetprofitinthethree-yearbonusperiodoftheFielmannGroup.
Theamountobtainedinthiswayisthenratedonthebasisofasystemoftargetsandthefinalresultmaybebetween0%andamaximumofdoublethestartingpoint,i.e.60%.Customersatisfactionis thereforeparticularlyimportantwhenmeasuringbonuses.
Atthesametime,theupperlimitofthetotalvariableremunerationpayabletoamemberoftheManagementBoardwassetatapercentageofthefixedremunera-tion.Under thesecontracts, theceiling for totalvariableremuneration forGüntherFielmannandGünterSchmidis200%offixedremuneration(BonusIandBonusII),whileforDrStefanThiesandGeorgAlexanderZeiss,itamountedto150%ofthefixedremunerationupto30June2016,andthen175%from1July2016.ForMarcFielmann,MichaelFerleyandDrBastianKörber,theceilingfortotalvariableremu-nerationamountsto150%.
The individualamountspayable for thefinancial reportingyearand those forthepreviousyearare indicatedunderNote(30) in theNotes to theConsolidatedAccounts,inaccordancewiththereferencetablesoftheGermanCorporateGover-nanceCode.Inthissection,therearealsoexplanationsofanagreementrelatingtothedepartureofonememberoftheManagementBoardfromthecompanyattheendofthecontracton30June2017.
Details pursuant to Section 315 Para. 4 of the German Commercial Code
(HGB) as well as the shareholder structure
The composition of the subscribed capital ThesubscribedcapitalofFielmannAktiengesellschaftamountedto¤84million,dividedinto84millionordinary(bearershares)sharesofnoparvalue.Therearenodifferentcategoriesofshare.Allsharescarrythesamerightsandobligations.EachnoparvaluesharegrantsonevoteintheAnnualGeneralShareholders’Meeting(AGM)ofFielmannAktiengesellschaft(Article14Para.6oftheArticlesofAssociation).
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Limitations affecting voting rights or the transfer of shares With theagreementdated4April2013,MarcFielmannandSophieLuiseFielmannjoinedapoolagreement(poolcontract)betweenGüntherFielmannandKORVASE,Lütjensee,thatinturnwasformedon3April2013.
Thepoolcontractcomprises60,180,844sharesinFielmannAktiengesellschaft(poolshares).Accordingtothepoolcontract,thetransferofpoolsharestothirdpartiesrequiresapprovalbyallothermembersofthepool.Inaddition,everypoolmemberwishingtoselltheirpoolsharesmustfirstofferthesetotheothermembersofthepool(preferentialpurchaseright).
ThepoolcontractstipulatesthatthevotingrightsofpoolsharesmustbeexercisedattheAGMofFielmannAktiengesellschaftinaccordancewiththeresolutionspassedbypoolmembersinthepoolmeeting,andthatthismustoccurregardlessofwhetherandinwhatwaytherespectivepoolmembervotedatthepoolmeeting.ThevotingrightofapoolmemberinthepoolmeetingisbasedontheirvotingrightattheAnnualGeneralMeetingofFielmannAktiengesellschaft.Eachpoolsharegrantsonevote.
Shareholdings in the company's capital that exceed 10 per cent of voting
rights Atthetimeofpreparingtheseconsolidatedaccounts,thefollowingdirectandindirectinterestsinthesharecapitalexceededthe10%threshold:GüntherFiel-mann,Lütjensee(directandindirectshareholdings),MarcFielmann,Hamburg(directand indirect shareholdings), Sophie Luise Fielmann, Hamburg (direct and indirectshareholdings),KORVASE, Lütjensee (directand indirect shareholdings), FielmannInteroptikGmbH&CO.KG,Hamburg(directandindirectshareholdings),FielmannFamilienstiftung,Hamburg(indirectshareholdings).
Thefreefloatamountsto28.36%.Forfurtherinformationonvotingrights,pleaserefer to the Notes to the Consolidated Accounts for 2017 of Fielmann Aktienge-sellschaft.
Shares with special rights conferring powers of control Noshareshavebeenissuedwithspecialrightsconferringpowersofcontrol.
The control of voting rights in the case of shareholdings of employees
who do not directly exercise their control rights Thereisnosuchconstel-lationwithinthecompany.
Statutory regulations and provisions in the Articles of Association gov-
erning the appointment and dismissal of Management Board members
and amendments to the Articles of Association ThestatutoryprovisionsonappointmentanddismissalofManagementBoardmembersarelaiddowninArticle84oftheGermanStockCorporationAct(AktG).Article7Para.1oftheArticlesofAssociationofFielmannAktiengesellschaftprovidesforthefollowingregulationonthecompositionoftheManagementBoard:
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“(1)Thecompany’sManagementBoardshallconsistofatleastthreepersons.TheSupervisoryBoardshalldeterminethenumberofManagementBoardmembersandthepersonwhoistobetheChairpersonoftheManagementBoard,aswellasthelatter’sdeputy,ifapplicable.”
ThestatutoryprovisionsonamendingtheArticlesofAssociationarelaiddowninArticle119oftheGermanStockCorporationAct(AktG)inconjunctionwithArticle179of theAktG.Article14Para.4of theArticlesofAssociationofFielmannAk-tiengesellschaftprovidesforthefollowingregulationonamendmentstotheArticlesofAssociation:
“(4) Unless otherwise stipulated by the statutory provisions, a simple majorityof votes cast is required and sufficient to pass resolutions at the Annual GeneralMeeting.”
Authorisation of the Management Board to issue or repurchase
shares TheManagementBoardisauthorised,withtheunanimousconsentofallitsmembersandsubjecttotheconsentoftheSupervisoryBoard,tocarryoutnewrightsissuesofordinarybearersharesforcashand/orcontributionsinkindtotallingupto¤5million,inoneormorestages,upto13July2021(authorisedcapital2016).Thenewsharesaretobeofferedtoshareholdersforsubscription.
However,theManagementBoardisauthorised,withtheunanimousconsentofallitsmembersandsubjecttotheconsentoftheSupervisoryBoard,toexcludeshare-holders‘subscriptionrightsinthefollowingcases:
– tomakeuseofanyresidualamountsbyexcludingshareholders’subscriptionrights;
– whenincreasingthesharecapital,inreturnforcashcontributionspursuanttoArticle186Para.3(4)oftheGermanStockCorporationAct(AktG),iftheissueamountofthenewsharesdoesnotfallfarshortofthemarketpriceforsharesthatarealreadylistedatthetimetheissueamountisfinallydetermined;
– foracapitalincreaseforcontributionsinkindtograntsharesforthepurposeofacquiringcompanies,partsofcompaniesorinvestmentsincompanies.
Moreover,theManagementBoardisauthorised,withtheunanimousconsentofallitsmembersandsubjecttotheconsentoftheSupervisoryBoard,tostipulatealltheremainingdetailsconcerningimplementationofsharecapitalincreasesinthecontextofthe2016authorisedsharecapital.
Significant agreements which take effect upon a change of control of the
company following a takeover bid Suchsignificantagreementsdonotexist.
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Compensation agreements concluded by the company with the mem-
bers of the Management Board or employees in the event of a takeover
bid SuchcompensationagreementswiththemembersoftheManagementBoardoremployeesdonotexist.
Group declaration of corporate governance as per Section 315d of the
German Commercial Code (HGB) Thedeclarationofcorporategovernancewas issuedby theManagementBoardandSupervisoryBoardandmadepubliclyavailableonapermanentbasis.Itcanbeaccessedonlineatwww.fielmann.com.
Details pursuant to Sections 289b and 315b of the German Commercial Code
(HGB) on the non-financial declaration (Corporate Social Responsibility Re-
port) Forthefinancialyear2017,FielmannhasprepareditsactivitiescollectivelyforthefirsttimeinthefieldofCorporateSocialResponsibility(CSR).Thereportpresentsthenon-financialdeclarationofFielmannAktiengesellschaftpursuanttoSection289bPara.3oftheGermanCommercialCode(HGB)andoftheFielmannGrouppursuanttoSection315bPara.3oftheGermanCommercialCode(HGB).FielmanntherebycomplieswiththeprovisionsformulatedbytheCSRDirectiveImplementationActsetoutinSections289band315boftheGermanCommercialCode(HGB).ThereportwascompiledinlinewiththeGRIstandardoftheGlobalReportingInitiative(GRI)andwillbepublishedonthewebsitewww.fielmann.com.
Details pursuant to Section 160 Para. 1 No. 2 of the German Stock Corpo-
ration Act (AktG) TheNotestotheConsolidatedAccountsofFielmannAktienge-sellschaftcontaindetailsabout thenumberof thecompany’sownsharesandtheirdevelopmentinthefinancialyear2017.
Dependency report InaccordancewithArticle312oftheGermanStockCorpora-tionAct(AktG),theManagementBoardofFielmannAktiengesellschafthaspreparedadependencyreportdetailingthecompany’srelationshipswithGüntherFielmann(ChiefExecutiveOfficer(CEO)ofFielmannAktiengesellschaft)aswellaswithothercompaniesaffiliatedtohimandwiththecompanieswhicharepartoftheFielmannGroup.
TheManagementBoardhasreleasedthefollowingclosingstatementinthisreport:“InaccordancewithArticle312Para.3oftheGermanStockCorporationAct
(AktG),theManagementBoarddeclaresthatourcompanyreceivedanappropriateserviceorcompensationinreturnforeachtransactionindicatedinthereportonre-lationshipswithaffiliatedcompanies,onthebasisofthecircumstancesofwhichwewereawareatthetimewhenthetransactionswerecarriedout.Nomeasuresthataresubjecttomandatoryreportingrequirementsoccurredinthe2017financialyear.”
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Risk management system
Fielmann’scomprehensiveopportunityandriskmanagementsystemenablesthecom-panytoidentifyandmakeuseofopportunitiesingoodtime,whilealsokeepinginmind the potential risks. The company’s risk management is based on a detailedreporting,whichcomprisesallplanningandcontrolsystems.Usingpreviouslyidenti-fiedanddefinedthresholds,thecompanyregularlyanalyseswhetherconcentrationsofriskexistwithintheGroupandwithinFielmannAktiengesellschaft.Monitoringisintegratedineverydayprocesses,withmonthlyandannualreportingcompletingtheearlywarningsystem.PotentialrisksareidentifiedandevaluatedwithregardtotheirpotentialsignificanceforthebusinesspositionofFielmannAktiengesellschaftandtheGroup.Theresultsoftheriskassessmentarerecordedwithatrafficlightsystemforthepotentialseverityoftherisk.Therisksarecategorisedasfollows:Green: good situation (expecteddamagehasanextentof less than1%of
anticipatedpre-taxprofit)Green-yellow:slightlynegativedeviationfromgoodsituation(expecteddamagehas
anextentofbetween1%and≤3%ofanticipatedpre-taxprofit)Yellow: riskofcriticalsituationoccurring(expecteddamagehasanextentof
between3%and≤5%ofanticipatedpre-taxprofit)Yellow-red: criticalsituation(expecteddamagehasanextentofbetween5%and
≤10%ofanticipatedpre-taxprofit)Red: highlycritical(expecteddamagehasanextentofmorethan10%of
anticipatedpre-taxprofit)In addition to monthly and annual reporting, there is also mandatory ad hoc
reporting.Theprocessofriskidentification,evaluationandassessmentiscarriedoutinadecentralisedwayby the individualdepartments.The riskofficercoordinatestheriskidentification,evaluationandassessment.HeisresponsibleforconveyingtheriskfromtheindividualdepartmentstotheManagementBoard.Thiscoversawiderangeofseparaterisks,whichcaninturnbegroupedintothefollowingcategories:– Businessenvironmentrisks– Groupperformanceandexpenserisks– Risksinotherareas: – Finance – ProductionandLogistics – InformationTechnology – Personnel
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Thesystemreflectsthelikelihoodofrisksarisingandtheirpotentialimpact.Theeffectivenessoftheinformationsystemisregularlyassessedbyinternalaudits,aswellasbyanexternalaudit.TheFielmannGroupandFielmannAktiengesellschaftfacepotential risksasdetailedbelow.Anyadditionalgeneral risksarenot specificallydefinedas,bytheirverynature,theycannotbeavoided.
Opportunities and risks inherent in future development TheinformationbelowonrisksinherentinfuturedevelopmentrelatestotherisksincludedinFielmann’srisk management system. To improve the quality of the information provided, thereportingofcreditrisks,exchangeraterisks,interestraterisks,marketrisksandliqui-dityrisksunderIFRS7isincludedintheManagementReportunder“FinancialRisks”.Theexplanationsconcerningtheopportunitiesinherentinfuturedevelopmentmainlyrelatetooperatingareas.
Industry risks and other external risks (business environment risks) Eco-nomicfluctuationsintheinternationalmarketplaceandincreasinglyintensecompeti-tionconstitutethefundamentalrisks.Thisgivesrisetorisksrelatingtopricesandsales.Throughcontinuousdecentralisedandcentralisedmonitoringofthecompetition,weidentifytrendsanddevelopmentsearlyon.Monitoringthecompetitionalsoincludestracking thedevelopmentof relevant technologiesand theservicesprovidedbye-commercecompanies.Onlinevendorsofferingopticalproductsareobservedthroughvariousautomatedandmanualmeans.
TheManagementBoardandotherdecision-makersareinformedpromptlyofanymovementsinthemarket.Inthisway,risksareidentifiedingoodtimesothatmeasurescanbeimplementedquickly.
Consumerbehaviourisincreasinglyinfluencedbydigitaltechnologies.Glassesandespeciallycontactlensesarenowalsobeingofferedonline.Currently,distancesalescompaniesofferingprescriptionglassesholdonlya1%salesmarketshare.Themajorityofshippedproductsalesareattributabletocontactlenses.Thetotalsalesgeneratedbydistancesalescompaniesstandsat¤261millioninGermany(ZVA,2018).
Toassembleapairofglasses theopticianneeds tocarryoutaneyesight test.Fielmanndoesnotcurrentlysellprescriptionglassesviatheinternet.Imprecisedatacanleadtoprismaticsideeffects,whichcanbringaboutfatigue,nausea,headachesordoublevision.Giventhetechnologyavailabletoday,fittinglensesviaanonlineportalyieldsunreliableresults.
Fielmanndeliverscontactlensestocustomers’homesfreeofchargeinGermanyandAustria.Thelensescanbere-orderedviasmartphone,computerortablet.
Consequently, the assessment of risk from distance sales competition remainsunchangedat“low”(greentogreen-yellow).
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Segment-specific risks (business environment risks) In the segment re-porting,Fielmannoutlines theperformanceofregionalgeographies in the formofconsolidatedaccountsinlinewithIFRS.Amongsttheregionalmarkets,onlythesalesrevenuesofSwitzerlandand thesalesof the“Other”segmentcanbeaffectedbyexchangeratefluctuations.For furtherdetails,pleaserefer toourcommentsunder“CurrencyRisks”.
Changesinhealthcarelegislationdonotposemanyrisksfortheopticalretailmarket.
Aspart of the2004health reform,peoplewith statutory health insurancenolongerpayforprescriptionglasses,withveryfewexceptions.Besideschildrenandyoungpeopleuptotheageof18,insuredadultsareentitledtomakeclaimsiftheycanproveextremevisualimpairmentinbotheyesandifthevisualperformanceoftheirbesteyereachesnomorethan30%afterthebestpossiblecorrectionmeasures.
Theexemptionclauseforclaimingapairofglasseswasextendedasofspring2017.Allinsuredpeoplewhorequirelenseswitharefractivepowerofatleast6diop-tresduetoshort-orlongsightednessorwitharefractivepowerofatleast4dioptresduetoacornealcurvatureareentitledtohavetheircostscoveredtothesumofthefixedamountsetbytheNationalAssociationofStatutoryHealthInsuranceFundsorthecontractpriceagreedbytheirhealthinsurancecompany.
ThefixedamountthatstatutoryhealthinsurancefundsinGermanypayforhear-ingaidswasincreasedto¤785perhearingaidon1November2013.AllGermancitizenswithstatutoryhealthinsuranceareentitledtotreatmentthatbringsaboutasclosetonormalhearingasispossiblethroughthelatestmedicaltechnology.
Asaresultoftheframeworkagreementswithstatutoryhealthinsuranceprovid-ers,hearingaidprovidersarealreadyobligatedtomeetthisobjectiveatnochargeforcustomersandwithdiscounts forhealth insurancecompanies.ThispresentsanopportunityforFielmanntogainfurthermarketshares.
Operating risks (production and logistics risks) Bymanufacturingmanyoftheproductswesell,weareabletocontrolthecompletevaluechain,fromcheckingtherawmaterialstomountingtheglasses.QualitymanagementinlinewithDINISO9001ensuresastandardisedorganisationwithhighlyautomatedmanufacturingandtestingprocesseswhichdeliverconsistentlyhighquality.
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Intheeventofdisruptionstooperationsorlongertermproductionshortages,wehavetakencomprehensiveprecautionarymeasuresinourproductionfacilities:
– Systematictrainingandqualificationprogrammesforemployees– Ongoingfurtherdevelopmentoftheproductionprocessesandtechnologies– Comprehensivesafeguardsatthestores– Regularcalibrationofmeasuringequipment,maintenanceofmachinery,ITsystems
andcommunicationinfrastructureIntheeventofanylossthatmayneverthelessoccur,thecompanyisinsuredtoan
economicallyappropriateextent.Consequently,theriskassessmentfortheareaofproductionandlogisticsisunchangedat“low”(green).
Group performance and expense risks Asadesigner,manufacturer,distri-butorandoptician,Fielmanncoverstheentirevaluechain.Ourprocurementstrengthandglobalbusinessrelationshipsallowustoeasesupplybottlenecksintheshorttermandrespondtodevelopmentsinpurchasingpricesinaflexibleway.Consequently,theassessmentofthiscostriskisunchangedat“low”(green).
Financial risks Foreignexchangeandinterestratefluctuationsmayresultinsigni-ficantprofitandcashflowrisksfortheFielmannGroup.Wherepossible,Fielmannap-proachestheserisksonacentralisedbasisandmanagesthemwithforesight.Businessoperationsalsogiverisetorisksrelatedtointerestratesandcurrencyfluctuations.Theinstrumentsusedtohedgethesefinancialrisksareindicatedinthenotestotheconso-lidatedaccountsontherespectivebalancesheetitems.Majorpurchasingcontractsarepricedineuros.Fielmannfinancesthemajorityofitsactivitiesfromitsownfunds.Theimpactofinterestratedevelopmentsonbusinessoperationsisthereforeminimal.
Interest ratechangesalso impacton the levelofbalancesheetprovisionsandconsequently,onthefinancialresults.Inaddition,interestratechangeshaveanimpactontheavailableliquidityandthereforealsoonthefinancialresult.Risksalsoarisefromfluctuationsinexchangeratesandsecurities.Thesearecontrolledbymeansofaninvestmentmanagementsystemtomonitorcredit,liquidity,market,interestrateandcurrencyrisksinthecontextofshortandlong-termfinancialplanning.Consequently,theassessmentoffinancialriskisunchangedat“low”(green).
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Credit risks (finance) ThemaximumdefaultriskwithintheGroupcorrespondstotheamountofthebookvalueofthefinancialassets.Baddebtchargesareappliedtotakeaccountofdefaultrisks.Lowinterestratesintheeurozone,theexpansionoftheECB’spurchaseprogrammeand theexpansivemonetarypolicyby thecentralbankshadanimpactonallsectorsoftheeconomyin2017.However,thereisstillahighriskforthesingleeurocurrencyasaresultofailingbanksandhighprivateandpublicdebtinsomeeurozonecountries.TheECB'smainrefinancinginterestratewasunchangedat0.0%inthefinancialyear2017(previousyear:0.0%).
AsaresultoftheinterestrateincreasesintheUSA,thelong-terminterestratesintheeurozonealsomanagedtorecoverbytheendoftheyear.Againstthisback-ground, the net interest result of the Fielmann Group amounted to ¤ 0.8 million(previousyear:¤1.3million).
Withregardtofinancing,thetoppriorityofinvestmentdecisionsremains,inprin-ciple,tosecurepurchasingpoweronasustainedbasis.For2017,therateofinflationinGermany is1.8% (previous year:0.5%).An investmentguideline stipulates themaximumamountforallclassesoffinancialinstrumentsusedforinvestmentpurposes.Investmentoptionsareessentiallylimitedtoinvestmentgradesecurities.
Inlightofthecontinuinggreatuncertaintyonthefinancialmarketsin2017,Fiel-mannAktiengesellschaftresolvedtoinvest,inparticular,inassetswithahighcreditratingortoleaveliquidfundsoncash-managementaccountsoroncurrentaccounts.Businesspartners‘creditratingsarealwayscheckedandrecordedbeforeanymajorinvestmentdecisionismade.Settinganupperlimitoninvestmentsforeverycounter-partylimitsthedefaultrisk,asdoesthecurrentfocusontheinvestmenthorizonwithtermsof9months,onaverage(previousyear:maturitiesof14months,onaverage).Non-ratedsecuritiesaresubjecttointernalassessments.Amongotheraspects,thistakesintoaccounttheexistingratingoftheissuerorofacomparableborrowerandthefeaturesof thesecurities. Investmentswithatermofupto threemonthsdonotrequirearating,althoughtheseinvestmentsaresubjecttothespecificexemptionlimitsdefinedintheinvestmentguideline.
Consequently,theassessmentofcreditrisksisunchangedat“low”(green).Thereisnoconcentrationofdefaultrisksrelatingtotradereceivables,asretail
activitiesdonotresultinafocusonindividualborrowers.Inviewofthis,theassess-mentofdefaultriskisstill“low”(green).
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Liquidity risks (finance) OurfinancialcontrollingseekstoensurethattheMa-nagementBoardhasthenecessaryflexibilitytomakeentrepreneurialdecisionsandtoguaranteethetimelyfulfilmentoftheGroup’sexistingpaymentobligations.FielmannAktiengesellschaft’s liquiditymanagement iscentralised forallGroupsubsidiaries.Currently,therearenoliquidityrisks(green).Moreover,thehighlevelofliquiditypro-videssufficientleewayforfurtherexpansion.Asat31December2017,thefinancialassetsoftheGrouptotalled¤350.1million(previousyear:¤368.1million).
Market risks (finance) ThemarketrisksthatarerelevanttotheFielmannGroupareprimarilyinterestrateandcurrencyrisks.Sensitivityanalysisisusedtoillustratehowvariousdevelopmentsresultedfromtheimpactofpastperformanceorevents.
Interest rate risks (finance) Thesensitivityanalysisofinterestraterisksisbasedonthefollowingpremises:Primaryfinancialinstrumentsareonlysubjecttointerestraterisksiftheyarevaluedatfairvalue.Financialinstrumentswithfloatingratesaregenerallysubjecttomarketinterestraterisks,asareliquidfundsoncurrentaccounts.Consequently,theriskassessmentforinterestratesisunchangedat“low”(green).
Currency risks (finance) Given its international focus, the FielmannGroup isexposedtocurrencyrisksinconnectionwithpaymentflowsoutsideitsownfunctionalcurrencyduringthenormalcourseofitsbusinessoperations.Morethan85%oftheGroup’spaymentflowsareineuros,approximately12%inSwissfrancs(CHF),withthe rest divided betweenUSdollars (USD), Polish zloty (PLN),Ukrainian hrywnja(UAH),Japaneseyen(YEN)andBelarusianroubles(BYN).
Inordertolimitcurrencyrisksonoutgoingpaymentsandregularexpectedcashflowsinforeigncurrencies,currencyforwardswithmaturitiesofupto12monthsareusedforhedgingpurposes.FielmannusesmarketablecurrencyforwardssolelyintheoperationalcurrenciesofCHFandUSD.WeemployfinancialhedgingsolelytosecuretheregularcashflowoftheGroupinforeigncurrencies,notforspeculativepurposes.
Simulationmodellingisusedasthebasisforassessmentofanyrisksidentified,takingintoaccountavarietyofdifferentscenarios.
Thefairvalueofthefinancialinstrumentsusedisgenerallyassessedonthebasisofexistingmarketinformation.ForeignexchangerisksarisingfromthetranslationoffinancialassetsandliabilitiesrelatingtoforeignsubsidiariesintotheGroup’sreportingcurrencyarenotgenerallyhedged.
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ThecurrenciesPLN,UAHandBYNarenothedgedastherelativelysmall totalsumgeneratedinthesecurrenciesdoesnotwarrantthehighcostofhedgingthem.
Asatthereportingdateof31December2017,therewerenocurrencyforwards(previousyear:none).TermdepositsintheUSDcurrencywerenotheld(previousyear:USD21million),andtherewerealsonohedgesagainsttheSwissfranc(previousyear:none).Consequently,thecurrencyriskassessmentisunchangedat“low”(green).
Demand for skilled staff (personnel) DemographicchangesarechangingGermanymorethananyotherdevelopmentsinsociety.Theageingofthepopulation,itsgrowingheterogeneityandthejuxtapositionofgrowthandpopulationlossinindi-vidualregionsareinfluencingdemographicchangeinGermanyandwillalsoaffectthelabourmarketinthelongterm.In2017,therewereapproximately49.3millionpeopleinthe20to64agegroup.AccordingtoestimatesbytheGermanFederalStatisticalOffice,thisnumberwillfallconsiderablyafter2020andreach44to45millionby2030.In2060,some38millionpeoplewillbeofworkingage(–14%).Asaresultofthedemographicchanges,thesizeoftheactivelabourforcewilldecreasefromthecurrent44.3milliontoapproximately41.1millionin2030.Thedigitizationoftheworkingworldischangingjobsandtherequiredqualifications.Tomeetthechallengesofdemographicandtechnologicalchangesandcounteracttheeffectsofthistrendatanearlystage,Fielmannisvisitingschoolsandjobfairstosecureskilledstaffforthefuture.Everyyear,morethan10,000youngpeopleapplytostarttheircareersatFielmann.
As thebiggest trainingprovider in theoptical industry, Fielmann is cultivatingGermanapprenticeships.OurvocationaltrainingiscarriedoutwithGermanprecisionandthoroughness.Yearonyear,Fielmannmakesaneight-digitinvestmentintraining,andhasincreasedthenumberoftrainingplacesby227inthelastyeartoatotalof3,417(previousyear:3,190apprentices),whichreprsentsanexpansionof7.1%.Nationalawardspaytestamenttothequalityofthetrainingweprovide.Fielmannalsoinvestsininnovativetrainingconcepts.Forexample,ourpart-timemastercoursesgiveopticianstheopportunitytoobtainfurtherqualificationsandthechancetoadvanceintheircareerswithouthavingtoleavethelocationtheyliveandworkin.Thisprogramisparticularlyinterestingforopticianswhoaretiedtoacertainlocationorwhoare,asisfrequentlythecase,restrictedduetofamilycommitments.
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Fielmanniscontinuingtoexpandandweareincreasingoureffortstorecruitqual-ifiednewemployees.SinceNovember2017,Fielmannhasrunanewcampaigntoattractadditionalapprentices.Thewebsitewww.optiker-werden.deprovidesinsightsinto thedaily lifeofanopticianworking for themarket leaderandaims toexciteyoungtalentsabouttheprofession.
Given thecurrent situationand the respectivemeasures thathavebeen imple-mented,theassessmentofpersonnelriskis“low”(green).
IT risks Theoperationsaswellas thestrategicmanagementof theGroupis in-tegrated into a complex information technology system. Fielmann’s IT systems areregularlymaintainedandareequippedwithaseriesofsafeguards.ThemaintenanceandoptimisationofthesystemsissecuredbymeansofaconstantdialoguebetweeninternalandexternalITspecialists.TheFielmannGroupalsocounteractsrisksfromunauthoriseddataaccess, datamisuseanddata losswithappropriatemeasures.Technologicalinnovationsanddevelopmentsarecontinuouslymonitoredanddeplo-yedwheresuitable.Consequently,theoverallassessmentofITrisksis“low”(green).
Opportunities Expertshaveascertainedthatevermorechildrenandyoungpeo-plewillneedglassesorcontactlenses.Today,agreaternumberofyoungpeopleareaffectedthanwasthecasejustafewdecadesago.Studieshavefoundthatfrequentlyusingclose vision for readingorworkingoncomputers,aswellasa shortageofnatural lightarereasonsfor thestronglongitudinalgrowthof theeyeballbetweentheagesof6and18.
AccordingtoastudycarriedoutbyKuratoriumGutesSehene.V.,thenumberofglasseswearersinthe20to29agegrouphasmorethandoubledsince1952.Inthe30to44agegroup,theriseisinexcessof55%.Inthesecondhalfoflife,virtuallyeveryonerequiresglasses.Normal-sightedpeopleneedreadingglasseswhentheypasstheir40’sandthosewhohadalreadyneededglassesatayoungeragethenneedtwopairs,onefornearvisionandtheotherfordistancevision.Progressivelensesare themostconvenientchoice thesedays.Fielmann isoutperforming the industrywithregardtogrowthinprogressiveglasses.Thisisexplainedbythestructureofourcustomerbase.Fielmanncustomersaregenerallyyoungerthanthoseofitstraditionalcompetitors.Theyremainloyaltousoveraperiodofmanyyears.Consequently,evenwithoutgaininganynewcustomers,theprogressiveshareofFielmannsalesissettorisebymorethan50%overthecomingyears.
MANAGEMENT REPORT
56 AnnualReport2017
Asadesigner,manufacturer,distributorandoptician,Fielmanncoverstheentirevaluechain.Fielmanncanofferglassesatlowerpricesthanthecompetitionbecauseweproduceourselvesandwealsobuyfrommanufacturersthatproduceforthemajorbrands.Wesavemoneybycuttingout themiddlemanandpassthesavingsontoourcustomers.
Just45%ofallglasseswearerscurrentlyuseprescriptionsunglasses.Fielmannisanticipatingfurthergrowthfromtherisingshareof fashionableprescriptionsun-glasses. New developments in contact lens technology, such as the modern andcomfortabledailiesandcustomisedlenses,arealsosettoboostgrowth.Wealsoseegreatopportunitiesinthesmartconnectionofdigitalservicesandpersonalconsultinginourstores.Wewillintegrateourwebsitesandstoresevenfurther,andcreatenewdigitalservicesforourcustomers.
Inadditiontosalesgrowthintheopticalsector,weexpectadditionalgrowthfromopeningmorehearingaidstudiosinourexistingstores.Ourlong-standingcustomersinthecorecatchmentareasalonerequiremorethan100,000hearingaidsperyear.InGermany,currentstatisticsshowthatmorethan5.4millionpeoplehaveahearingconditionrequiringtreatment(accordingtotheGermanGuildforHearingHealthcareProfessionals),butatthemomentonly3.5millionuseahearingaid.
Astechnologicalinnovationmakeshearingaidseversmaller,weanticipatethenumberofhearingaiduserstorisesignificantlyoverthecomingyears.Thecombina-tionofglassesandhearingaidsisadvantageousforourcustomersandthusimprovesloyaltytoourcompany.
FielmannisdevelopingitsstorenetworkinGermanyandpressingaheadwithitsexpansionabroad.TheneighbouringcountriesinEurope,particularlyItaly,offerusopportunitiesforsubstantialgrowthandearnings.
Main features of the internal control and risk management system in
terms of the accounting process TheManagementBoardofFielmannAktieng-esellschaftisresponsibleforthepreparationandaccuracyoftheconsolidatedandannualaccountsaswellasforthemanagementreport.Theprocessesareestablishedbytrainingandregularexchanges,standardiseddocumentationaswellasacom-puter-aidedinformationsystemforaccountingissuesandastandard,group-wideac-countingsystem.Thisalsoensurestheproperandtimelypreparationoftheaccounts.
MANAGEMENT REPORT
AnnualReport2017 57
Throughastandard,group-wideaccountingsystem,wecontrolboththeflowofgoodsaswellas theirvaluation.Toutilise thehigh levelof integrationof theSAPsystemsdeployedandthestandardisationofmanyoftheprocessesinvolved,theend-of-yearbalancingworkhasbeencentralisedintherespectivedepartments.Withtheexceptionofthreesmallcompanies,alltheindividualaccountsarepreparedinSAPandmergedfortheGroupcentrally.Thebasisforeachvoucherauditisthecontrolsystemthatmonitorsprocessanddataqualitywhichhasbeeninstalledforaccount-ingatthelevelofindividualfinancialstatementsandtheGroup.Thiscontrolsystemincludesinformationflowcharts,acontrolsystemfordailycashaccounting,inspectionandchecklistsaswellasanITsystemformonitoringtransactionsformonthly,annualandGroupstatements.
Compliancewith the documents is subject to a regular reviewby the internalauditdepartment.Theaccountingguidelinesofacentralfinancialinformationsystemapply to the individualaccountsof thecompanies included,according tonationalcommerciallaw.Anoteismadeofanyspecialfeaturesapplyingtoindividualunits.Ifanyofthecompaniesincludedpreparetheiraccountsaccordingtootheraccountingstandards, the accounting standards for commercial financial statements ll, whichareusedcentrallybyGroupAccounting,apply.Theaccountingprinciplesarealsoappliedtointerimaccountsandensurefactualandtime-relatedconsistency.
Inthelastfinancialyear,theSupervisoryBoardapprovedtheeffectivenessoftheinternalcontrolsystemandtheriskmanagementsystemaswellastheinternalreviewsystem.PleaserefertotheSupervisoryBoardreportforfurtherdetails.
Summary of the risk position as well as the internal audit system pursu-
ant to the requirements under Article 107 of the German Stock Corpora-
tion Act (AktG) TheGroup’smarketposition,itsfinancialstrengthandabusinessmodelthatallowsFielmanntoidentifyandactongrowthopportunitiesearlierthanthecompetition,revealnoidentifiableriskstofuturedevelopmentwithanysubstantialeffectonassets,financialpositionorearnings.
MANAGEMENT REPORT
58 AnnualReport2017
Outlook
FielmannisdevelopingitsstorenetworkinGermanyandpressingaheadwithitsexpansioninneighbouringcountriesatasustainablepace.InGerman-speakingareas,weareexpandingourstoresandmovingintobetter locations,equippingthemwithstate-of-the-art technology.Thesemovesandrenovationswillallowustocutwaitingtimesforourcustomersandshouldbringusdouble-digitgrowthratesforunitssoldandtotalsales.Inthemediumterm,weareplanning170movesandrenovations.
Inaddition,wewillopenupnewstores.InGermany,wewilloperateover600storesinthemediumterm,sellingmorethan7.5millionpairsofglassesperyear.InSwitzerlandweareaimingtosellmorethan550,000glassesperyearfrom45storesinthecomingyears.InAustriaweestimatethat40storeswillsell500,000glasses.InPolandweplantooperate40locationsoverthemediumtermwiththegoaltohaveapresenceinallthemajortownsandcities.Thenumberofglassessoldperyearwillamountto300,000.ThedevelopmentinItalyispleasing.Forthisreason,wearepushingourexpansion.Inthemediumterm,weplantooperate40storesinItalyandtosellmorethan500,000glasses.
Thehearingaidmarketisagrowthmarkettargetingpeoplewhoarefiftyandolder.Inthecomingyears,Fielmannwantstosignificantlyexpanditsnumberofhearingaidstudios.Weplantooperatearound250studios.
Oneofthemainreasonsforoursuccessisthatouremployeesarehighlyqualified.Asthebiggesttrainingproviderintheopticalindustry,FielmannisfundamentallyshapingGermanopticalapprenticeship.Ourvocationaltrainingiscarriedoutwithprecisionandthoroughness,includingourforeignstores.Yearonyear,Fielmanninvestsaround¤20millionintrainingandcontinuedprofessionaldevelopment.Expenditureofasimilarmagnitudeisscheduledfor2018.Since2006,Fielmannhasalmostdoubledthenumberofapprenticesfrom1,715tothecurrent3,417.
In2018,wewillalsoinvestaround¤96.0millioninexpanding,modernisingandmaintain-ingthestorenetwork,aswellasinproductionandinfrastructure.Thiswillbefinancedfromourownfunds.
Weplantoinvest¤78.4millioninGermany,¤6.5millioninItaly,¤1.8millioninAustria,¤7.6millioninSwitzerlandandlessthan¤1.0millioninPoland.Weintendtospend¤46.8milliononrenovatingexistingstoresandopeningnewones.Wefurtherplantoinvestasumofaround¤5.2milliontoincreaseproductioncapacityandafurther¤43.8millionontheGroupinfrastructure.
MANAGEMENT REPORT
AnnualReport2017 59
Fielmannwillcontinuetomaintainahighequityratioinfuture.Theexistingliquiditywillbeinvestedatlowrisk.Wewillinvestinthetrainingandcontinuedprofessionaldevelopmentofstaff.Wewillcommitfundstotheopeningofnewstoresaswellastothemodernisationofexistingstoresandourproduction.Thisway,wearecreatingasolidbasisforsustainablegrowthinthelong-term.Inthefuture,wearealsoexpectingahigherproportionofprogressiveglasses,contactlensesandhearingaidsintermsofsales.Inthemediumterm,weareanticipatingtheproportionofprogressiveglassestorisebymorethan50%.Newproductiontechnologiesforgrindinglensesintroducedatour logisticscentreinRathenowandimprovedprocessesatbothourstoresandheadquarterswillgenerateapositiveimpactonproductivityoverthenexttwoyears.
TheGermangovernmentexpectseconomicgrowthof2.4%forGermanyin2018.There is still a clear upward trend in the consumer climate. According to GfK (consumer
researchcompany),thepositiveeconomicsituation,ahighlevelofemploymentandanticipatedsalaryincreaseshaveledtoanincreaseintheconsumerclimateindextothehighestlevelsinceSeptember2001.Privateconsumptionspendingwillthereforegrowoncemorethisyear.
Inviewofthesepredictions,Fielmannisconfidentofexpandingitsmarketposition.
Summarising statement on the forecast
Fielmannthinkslong-term,isplanningtoopenmorethantennewstoresinboththecurrentyearandthefollowingyear,andintendstorenovateandexpand30existingstoreseveryyear.In2018,wewillcontinuetopursueourgrowthstrategy.Fromthecurrentperspective,ourconsistentfocusoncustomers,themeasurestakentoensurethatourstaffishighlyqualifiedandtheinvestmentsmadeinpastyearswillenableustoacquirefurthermarketsharesinthecurrentfinancialyear.Thefirstfewmonthsof2018giveusgroundsforoptimism.Weaimtomaintaincustomersatisfactionatmorethan90%.Weplantoslightlyincreasethenumberofunitssoldcomparedtothepreviousyear.Furthermore,animprovedproductmixwillalsoleadtoanexpansioninsales.In2018,thegrowthwillbeslightlyabovetheaverageofpreviousyears.Weexpectapre-taxincomeatthesamelevelasthepreviousyear.Shareholderswillbenefitfromthecompany’sgrowthintheformofanappropriatedividendpayout,withreturnonsalesandequityatlevelsthatareunusuallyhighforaretailcompany.
Asignificantchangeintheunderlyingsituationmayleadustoadjustthisforecast.
60 Annualreport2017
ANNUAL ACCOUNTS
Fielmann Aktiengesellschaft, HamburgConsolidated balance sheet as at 31. 12. 2017
Assets Ref. no. in Notes
Position as at 31.12.2017
¤ ‘000
Position as at 31.12.2016
¤ ‘000
A. Non-current fixed assets
I. Intangibleassets (1) 24,771 18,379II. Goodwill (2) 46,032 45,704III. Tangibleassets (3) 239,731 224,389IV. Investmentproperty (3) 16,089 16,404V. Financialassets (4) 2,706 1,313VI. Deferredtaxassets (5) 12,686 9,224VII. Otherfinancialassets (6) 57,822 87,000
399,837 402,413
B. Current assets
I. Inventories (7) 128,673 128,136II. Tradedebtors (8) 31,158 26,733III. Otherfinancialassets (8) 51,810 46,416IV. Non-financialassets (9) 13,924 20,314V. Taxassets (10) 10,748 9,725VI. Financialassets (11) 117,399 165,765VII. Cashandcashequivalents (12) 172,131 114,032
525,843 511,121
925,680 913,534
Annualreport2017 61
ANNUAL ACCOUNTS
Equity and liabilities Ref. no. in Notes
Position as at 31.12.2017
¤ ‘000
Position as at 31.12.2016
¤ ‘000
A. Equity I. Subscribedcapital (13) 84,000 84,000II. Capitalreserves (14) 92,652 92,652III. Profitreserves (15) 362,763 358,167IV. Balancesheetprofit (16) 155,400 151,200V. Non-controllinginterests (17) 195 246
695,010 686,265
B. Non-current liabilities
I. Accruals (18) 23,776 23,325II. Financialliabilities (19) 1,858 1,605III. Deferredtaxliabilities (20) 9,463 8,430
35,097 33,360
C. Current liabilities
I. Accruals (21) 42,828 41,495II. Financialliabilities (22) 151 166III. Tradecreditors (22) 63,820 63,035IV. Otherfinancialliabilities (22) 25,276 20,426V. Non-financialliabilities (23) 50,090 50,730VI. Incometaxliabilities (24) 13,408 18,057
195,573 193,909
925,680 913,534
62 Annualreport2017
ANNUAL ACCOUNTS
Fielmann Aktiengesellschaft, HamburgConsolidated profit and loss statement and other resultfor the period from 1.1. to 31.12.2017
Ref. no. in Notes
2017 ¤ ‘000
2016 ¤ ‘000
Change from pre-
vious year
1. Consolidatedsales (27) 1,385,974 1,337,179 3.6%2. Changesininventories (27) 355 –707 –150.2%
Total consolidated sales 1,386,329 1,336,472 3.7%
3. Otheroperatingincome (28) 14,188 15,611 –9.1%4. Costofmaterials (29) –277,205 –279,796 –0.9%5. Personnelcosts (30) –568,733 –539,855 5.3%6. Depreciation (31) –42,272 –39,992 5.7%7. Otheroperatingexpenses (32) –263,259 –250,859 4.9%8. Expensesinthefinancialresult (33) –1,618 –1,796 –9.9%9. Incomeinthefinancialresult (33) 1,213 1,693 –28.4%
10. Result before taxes 248,643 241,478 3.0%
11. Taxesonincomeandearnings (34) –75,790 –70,260 7.9%12. Consolidated net income (35) 172,853 171,218 1.0%
13. Incomeattributabletoothershareholders (36) –5,226 –4,910 6.4%14. Profits to be allocated to parent company
shareholders 167,627 166,308 0.8%
15. Consolidatedrevenuesbroughtforward 88 51 72.5%16. Transferstootherprofitreserves (38) –12,315 –15,159 –18.8%17. Balance sheet profit 155,400 151,200 2.8%
Earnings per share in ¤ (diluted/basic)1
(35) 2.00 1.98
1Noeventsoccurredinthereportingyearorthepreviousyearwhichwouldresultinadilutionofearningspershare.
Annualreport2017 63
ANNUAL ACCOUNTS
Statement of the Overall ResultNote(40)
2017
¤ ‘000 2016
¤ ‘000
Net profit for the year 172,853 171,218
Items which are reclassified under certain conditions and reported in the profit and loss account
Earningsfromforeignexchangeconversion,reportedunderequity –4,386 –250
Items which will not be reclassified and reported in the profit and loss account in future
ValuationofemployeebenefitsinaccordancewithIAS19 25 –504
Other profit/loss after tax –4,361 –754
Overall result 168,492 170,464
ofwhichattributabletominorityinterests 5,226 4,910ofwhichattributabletoparentcompanyshareholders 163,266 165,554
64 Annualreport2017
ANNUAL ACCOUNTS
Movement in Group Equity Note Note(41)
Subscribedcapital
¤ ‘000
Capital reserves
¤ ‘000
Currency translation
reserves
¤ ‘000
Valuation reserves
IAS 19
¤ ‘000
Reserves for own
shares
¤ ‘000
Position as at 1 January 2017 84,000 92,652 21,189 –2,269 –357
Consolidatednetincome
Transferstoprofitreserves
Otherprofit –4,386 25
Overall result –4,386 25
Dividends/profitshares1
Share-basedremuneration
Ownshares 137
Acquisitionofnon-controllinginterests
Position as at 31 December 2017 84,000 92,652 16,803 –2,244 –220
Subscribedcapital
¤ ‘000
Capital reserves
¤ ‘000
Currencytranslation
reserves
¤ ‘000
Valuation reserves
IAS 19
¤ ‘000
Reserves for own
shares
¤ ‘000
Position as at 1 January 2016 84,000 92,652 21,439 –1,765 –251
Consolidatednetincome
Transferstoprofitreserves
Otherprofit –250 –504
Overall result –250 –504
Dividends/profitshares1
Share-basedremuneration
Ownshares –106
Withdrawals/deposits
Position as at 31 December 2016 84,000 92,652 21,189 –2,269 –357
1Dividendpaidandshareofprofitallocatedtoothershareholders
Annualreport2017 65
ANNUAL ACCOUNTS
Reserves for share-based
remuneration
¤ ‘000
Profit reserves
¤ ‘000
Profit reserves
and other reserves
¤ ‘000
Balance sheet profit
¤ ‘000
Attributable to parent company
shareholders ¤ ‘000
Non-control-ling interests
¤ ‘000
Equity
¤ ‘000
2,172 337,432 358,167 151,200 686,019 246 686,265
167,627 167,627 5,226 172,853
12,315 12,315 –12,315 0 0
–4,361 –4,361 –4,361
12,315 7,954 155,312 163,266 5,226 168,492
–151,112 –151,112 –5,277 –156,389
193 193 193 193
137 137 137
–3,688 –3,688 –3,688 –3,688
2,365 346,059 362,763 155,400 694,815 195 695,010
Reserves for share-based
remuneration
¤ ‘000
Profit reserves
¤ ‘000
Profit reserves
and other reserves
¤ ‘000
Balance sheet profit
¤ ‘000
Attributable to parent company
shareholders ¤ ‘000
Non-control-ling interests
¤ ‘000
Equity
¤ ‘000
2,207 322,273 343,903 147,000 667,555 238 667,793
166,308 166,308 4,910 171,218
15,159 15,159 –15,159 0 0
–754 –754 –754
15,159 14,405 151,149 165,554 4,910 170,464
–146,949 –146,949 –4,714 –151,663
–35 –35 –35 –35
–106 –106 –106
0 –188 –188
2,172 337,432 358,167 151,200 686,019 246 686,265
66 Annualreport2017
ANNUAL ACCOUNTS
Cash flow statement for the Fielmann Group Note(42)
Cash flow statement according to IAS 7
for the period from 1.1. to 31.12.2017
¤ ‘0002016
¤ ‘000Change ¤ ‘000
Earningsbeforetaxes(EBT) 248,643 241,478 7,165
+ Statement-relatedexpenditureinthefinalresult 1,618 1,796 –178
– Statement-relatedincomeinthefinalresult –1,213 –1,693 480
+ Write-downsontangibleassetsandintangibleassets 42,272 39,992 2,280
– Write-upsontangibleassetsandintangibleassets –400 –400
– Taxesonincomepaid –81,773 –63,798 –17,975
+/– Othernon-cashincome/expenditure 3,537 2,179 1,358
+/– Increase/decreaseinaccruals 1,784 –1,687 3,471
–/+ Profit/lossondisposaloftangibleassetsandintangibleassets 278 221 57
–/+ Increase/decreaseininventories,tradedebtorsandotherassetsnotattributa-bletoinvestmentorfinancialoperations 3,326 –3,353 6,679
+/– Increase/decreaseintradecreditorsandotherliabilitiesnotattributable 3,803 936 2,867
– toinvestmentorfinancialoperations –1,281 –1,284 3
+ Interestpaid 1,140 1,468 –328
–/+ Increase/decreaseinfinancialassetsheldfortrading 65,407 2,902 62,505
= Cash flow from operating activities 287,141 219,157 67,984
Receiptsfromthedisposaloftangibleassets 404 370 34
– Paymentsfortangibleassets –54,413 –37,836 –16,577
– Paymentsforintangibleassets –11,784 –10,857 –927
+ Receiptsfromthedisposaloffinancialassets 362 201 161
– Paymentsforfinancialassets –1,755 –850 –905
– Paymentsforinvestmentproperty –1 –26 25
– Paymentsfortheacquisitionofsubsidiaries –2,152 0 –2,152
= Cash flow from investment activities –69,339 –48,998 –20,341
Paymentstocompanyownersandnon-controllingshareholders –156,389 –151,663 –4,726
+/– Sale/Acquisitionofownshares 137 –106 243
+ Receiptsfromloansraised 864 732 132
– Repaymentofloans –626 –617 –9
– Paymentsfortheacquisitionofadditionalsharesinsubsidiaries –3,688 0 –3,688
= Cash flow from financing activities –159,702 –151,654 –8,048
Payment-affectingchangesincashandequivalents 58,100 18,505 39,595
+/– Changesincashandequivalentsduetoexchangerates –1 –122 121
+ Cashandequivalentsatthebeginningoftheperiod 114,032 95,649 18,383
= Cash and equivalents at the end of the period 172,131 114,032 58,099
Annualreport2017 67
ANNUAL ACCOUNTS
Segment reporting for the Fielmann Group (FormspartoftheNotestotheaccounts),Note(43),previousyear’sfiguresinbrackets
Segments by region
in ¤ million Germany Switzerland Austria Other Consoli-dation
Consolidated value
Salesrevenuesfromthesegment 1,163.9 (1,108.3) 171.6 (170.6) 81.7 (79.1) 39.4 (32.9) –70.6 (–53.7) 1,386.0 (1,337.2)
Salesrevenuesfromothersegments 70.2 (53.3) 0.4 (0.4)
Outside sales revenues 1,093.7 (1,055.0) 171.6 (170.6) 81.3 (78.7) 39.4 (32.9) 1,386.0 (1,337.2)
Costofmaterials 277.4 (267.1) 33.7 (34.3) 18.6 (18.2) 11.5 (9.8) –64.0 (–49.6) 277.2 (279.8)
Personnelcosts 456.5 (433.1) 68.4 (67.9) 29.6 (28.2) 14.2 (10.7) 568.7 (539.9)
Scheduleddepreciation 35.0 (33.1) 4.1 (4.2) 1.7 (1.6) 1.7 (1.1) –0.2 42.3 (40.0)
Expensesinthefinancialresult 1.6 (1.9) 0.1 (0.1) 0.4 (0.1) –0.5 (–0.3) 1.6 (1.8)
Incomeinthefinancialresult 1.3 (1.6) 0.4 (0.4) –0.5 (–0.3) 1.2 (1.7)
Earnings before tax – in the segments excl. income from participations 207.3 (192.2) 29.5 (32.6) 15.2 (16.0) –3.9 (0.5) 0.6 (0.2) 248.7 (241.5)
Taxesonincomeandearnings 68.3 (60.3) 6.0 (6.5) 2.7 (3.0) –1.2 (0.8) 0.0 (–0.3) 75.8 (70.3)
Net profit for the year 139.0 (131.9) 23.5 (26.1) 12.5 (13.0) –2.7 (–0.3) 0.6 (0.5) 172.9 (171.2)
Non-currentsegmentassetsexcludingfinancialinstrumentsanddeferredtaxassets 274.7 (260.0) 28.7 (28.6) 6.4 (7.5) 16.8 (8.8)
326.6 (304.9)
Investments 51.9 (39.5) 6.4 (4.4) 0.5 (2.9) 10.0 (2.8) 68.8 (49.6)
Deferredtaxassets 10.3 (8.6) 0.3 (0.3) 2.1 (0.3) 12.7 (9.2)
68 Annualreport2017
NOTES
I. General Information
FielmannAktiengesellschaft,whichhasitsheadquartersatWeidestraße118a,Ham-burg,Germany,istheGroup’sparentcompany.ItisregisteredunderHRB56098inthecommercialregisteroftheHamburgLocalCourt.
TheparentcompanyofFielmannAktiengesellschaftisKORVASE.TheGroup’sulti-mateparentcompanyisFielmannINTER-OPTIKGmbH&Co.KG.FielmannAktienge-sellschaftisinvolvedintheoperationofandinvestmentinopticalbusinesses,hearingaidcompaniesandthemanufactureandsaleofvisualaidsandotheropticalproducts,inparticular,glasses,framesandlenses,sunglasses,contactlenses,relatedarticlesandaccessories,merchandiseofallkindsandhearingaidsandtheiraccessories.ItslensmanufacturingactivitiesareencompassedinitssubsidiaryRathenowerOptikGmbH.
The Management Board of Fielmann Aktiengesellschaft approved the consoli-datedaccountsasat31December2017on16March2018andwillsubmitthemtotheSupervisoryBoardforadoptionon22March2018.Theconsolidatedaccountswill be approved at the accounts meeting of the Supervisory Board on 12 April2018,andinthisrespectthereisapossibilitythattheconsolidatedaccountsmaybeamendeduptothisdate.
The consolidated accounts of Fielmann Aktiengesellschaft and its subsidiarieshavebeenpreparedinaccordancewiththeInternationalFinancialReportingStand-ards(IFRSincludingInternationalAccountingStandards(IAS))validforthereportingperiod,statementsof the IFRS InterpretationsCommittee (IFRS IC; formerly Interna-tionalFinancialReportingInterpretationsCommittee(IFRIC))andtheformerStandingInterpretationsCommittee(SIC)whenevertheywereapplicablewithintheEuropeanUnion(EU)andwhentheywere tobeappliedonamandatoryorvoluntarybasisinthereportingyear.Furthermore,theprovisionsundercommerciallawpursuanttoSection315ePara1oftheGermanCommercialCode(HGB)werealsoobserved.
Fielmann Aktiengesellschaft, HamburgNotes to the consolidated accounts for financial year 2017
Annualreport201769
NOTES
II. Application of new and amended standards
New and amended standards and interpretations applied for the first
time in the financial reporting year
Reference Name
Obligation for first-time appli-cation in accor-
dance with IASB
Obligation for first-time
application in the EU
AnnualImprove-mentsProject
AnnualImprovementstoIFRSe2014-2016CycleAmendmentstoIFRS12
1.1.2017 1.1.2017
AmendmentstoIAS7
Disclosureinitiative–transferofdebtsfromFinancingActivities
1.1.2017 1.1.2017
AmendmentstoIAS12
DeferredTax:RecoveryofUnderly-ingAssets
1.1.2017 1.1.2017
Theapplicationof thesechangeshasnosignificant impacton thedisclosuresandamountsreportedintheconsolidatedaccountsofourcompany.
70 Annualreport2017
NOTES
New and amended standards and interpretations which are not yet
subject to mandatory application
ThefollowingnewandamendedstandardshavealreadybeenpassedbytheIASB,buttheirapplicationisnotyetmandatory.Fielmannhasnotappliedtheprovisionsofthesestandardsprematurely.
Reference Name
Obligation for first-time applica-tion in accordance
with IASB
Obligation for first-time
application in the EU
AnnualImprovementsProject AnnualImprovementstoIFRSe2014-2016CycleAmendmentstoIFRS1andIAS28
1.1.2018 Outstanding
AnnualImprovementsProject AnnualImprovementstoIFRSe2015-2017CycleAmendmentstoIAS12,IAS23,IFRS12,IFRS23
1.1.2019 Outstanding
AmendmentstoIAS19 Planamendment,curtailmentorsettlement 1.1.2019 Outstanding
AmendmentstoIAS28 Long-terminterestsinassociatesandjointventures 1.1.2019 Outstanding
AmendmentstoIAS40 Transfersofpropertieskeptasfinancialinvestments 1.1.2018 Outstanding
AmendmentstoIFRS2 Classificationandassessmentofshare-basedrem-uneration
1.1.2018 1.1.2018
AmendmentstoIFRS4 ApplicationofIFRS“FinancialInstruments”incon-nectionwithinsurancecontracts(isreplacedbyIFRS17)
1.1.2018 1.1.2018
IFRS9 FinancialInstruments 1.1.2018 1.1.2018
AmendmentstoIFRS9 Prepaymentfeatureswithnegativecompensation 1.1.2019 Outstanding
IFRS14 RegulatoryDeferralAccounts 1.1.2016 Adoptionhasnotbeenproposed
IFRS15 RevenuefromContractswithCustomers 1.1.2018 1.1.2018
AmendmentstoIFRS15 ClarificationstoIFRS15 1.1.2018 1.1.2018
IFRS16 Leases 1.1.2019 1.1.2019
IFRS17 Insurancecontracts(replacesinterimstandardIFRS4)
1.1.2021 Outstanding
IFRIC22 Transactionsinforeigncurrenciesandtrade-offspaidinadvance
1.1.2018 Outstanding
IFRIC23 Uncertaintyoverincometaxtreatments 1.1.2019 Outstanding
IFRS 9 “Financial Instruments“ Thisstandarddealswiththeclassificationandmeasurementoffinancialassets.“AmendmentstoIFRS9,IFRS7andIAS39–Manda-toryEffectiveDateandTransitionDisclosures”and“AmendmentstoIFRS9,IFRS7andIAS39–HedgeAccounting”werepublishedinconnectionwiththenewstandard.
Annualreport201771
NOTES
Basedonthefinancialinstrumentsheldasat31December2017,thereisnochangetothemeasurementagainstIAS39aspartoftheclassificationpursuanttoIFRS9.Inaddition, thereareno significant changeswith regard to impairmentunder theexpectedlossmodelaccordingtoIFRS9.Ingeneral,itwillbenecessarytoexpandontheNotesdisclosuresforfinancialinstruments.
IFRS 15 “Revenue from Contracts with Customers“ IFRS15specifiesthedateatwhichortheperiodoverwhichandtheamountofrevenuewhichmustberecognised.Infuture,theamountthatisexpectedinreturnforthetransferofgoodsandservicestocustomersmustberecognisedasrevenue.Withregardtodetermin-ingthedateor theperiod, thetransitionofcontrolof thegoodsorservices to thecustomerisnowcriticalandnotthetransferofrisksandopportunities.BesidesmoreextensiveNotesdisclosuresonthesalesrevenuesfromcontractswithcustomers,thereisnoimpactfromthefirst-timeapplicationofIFRS15onthepresentationoftheassets,financialpositionorearnings.
IFRS 16 “Leasing“ Thisnewstandard replaces theexisting requirementsof IAS17“Leasing”andtheassociatedinterpretationsofIFRIC4“DeterminingWhetheranArrangementContainsaLease”,SIC15“OperatingLeases: Incentives”andSIC27“Evaluating theSubstanceofTransactions Involving theLegalFormofaLease”.Thenewstandardsetsouttheprinciplesfortherecognition,measurementanddisclosureofleasesintheNotes.Infuture,allcontractualrightsandobligationsassociatedwithleasesaretobedisclosedinthebalancesheetofthelessee.Acompanyalsorecognisesafinancial liabilityrepresentingitsobligationtomakefuture leasepayments.At thesametime,therightsofusufructtotheunderlyingassetiscapitalised,whichisequivalenttothepresentvalueoffutureleasepaymentsinadditiontodirectlyrelatedcost.Overthetermoftheleasecontract,leaseliabilitiesareremeasuredforrecognition,whiletherightsofusufructtotheleaseassetaresubjecttoscheduleddepreciationonastraight-linebasis.Thereareexemptionsintheaccountingforshort-termleasesandleasesoflow-valueassets.TheapproachofIFRS16tolessoraccountingisessentiallyunchangedfromthestipulationsofIAS17.Incontrasttotherecognitionforthelessee,adistinctionismaintainedbetweenfinanceandoperatingleaseagreementsforthelessor.Inaddi-tiontochangesintheaccounting,IFRS16enhancesdisclosureobligationsforboththelessorandthelessee.IFRS16istobeappliedforthefinancialyearsthatbeginonorafter1January2019.AprematureuseispermittedifIFRS15isalreadybeingused.FielmannAktiengesellschaftwillfirstapplyIFRS16forthefinancialyearbeginningon1January2019.Probablythemodifiedretrospectiveapproachwillbeused.Withthismethod,thecumulativeeffectfromthefirst-timeapplicationwillberecordedin
72 Annualreport2017
NOTES
equityasaone-offadjustmentintheopeningbalancesheetasat1January2019.IFRS16willhaveasignificantimpactonthepresentationofassets,financialpositionandearningsaswellasonthescopeofthedisclosuresrequiredintheNotes.Ananalysisundertakenhasfoundthatthebalancesheettotalisexpectedtorisebyanamountbetween¤360millionand¤410million.
Theothernewandamendedstandardsandinterpretationsoutlinedabovearenot presented in greater detail as the impact of these on the presentation of theassets,financialpositionandearningsoftheGroupisonlyexpectedtobeofminorimportance.
III. Key accounting and valuation principles
Theconsolidatedaccountswerepreparedon thebasisofhistoricalacquisitionorproductioncostwiththeexceptionoftherevaluationofcertainfinancialinstruments,asdescribedbelow.
Unlessotherwisestated,allmonetaryamountsareshownintheGroupcurrency¤thousands(T¤),whileSegmentReportingisin¤millions.
Thekeyaccountingandvaluationmethodsareexplainedbelow.
Scope of consolidation and changes in the scope of consolidation
AlldomesticandforeignsubsidiariesincludedintheconsolidatedaccountsarethoseinwhichFielmannAktiengesellschaftdirectlyorindirectlyholdsthemajorityofvotingrightsoronwhichithasacontrollinginfluence.Controlofaninvesteeexistsifaninvestorisexposed,orhasrights,tovariablereturnsfromtheirinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.Fielmann Aktiengesellschaft also exercises control within the meaning of IFRS 10over24Germanfranchisecompanies(previousyear:29).Thiscontrolresultsfromtheinteractionoflegal,franchisingandeconomicinfluences.Thestipulationsofthefranchiseagreementregardingtheshoplocality,range,inventory,advertising,aswellasotheraspects,definetheframeworkofbusinesspolicywithinthecontextofFiel-mannAktiengesellschaft.The25storesintheBalticStatesthatareoperatedthroughfranchisesarenotwithinthescopeofconsolidation,asthecontractualagreementsdonotleadtoacontrolofthecompany(previousyear:24).
Fortheconsolidatedcompanies,pleaseseethestatementofholdingsintheNotes.ThisalsoincludesalistofcompanieswhichmakeuseoftheexemptionunderSection264Para.3andSection264boftheGermanCommercialCode(HGB).
Asat31December2017,eightcompanieswereconsolidatedforthefirsttime(previousyear:four).Theseincludedfournewlyestablisheddistributioncompaniesin
Annualreport201773
NOTES
Germanyandtheacquisitionofthreetraditionalopticalbusinesses.Anothercompanywasacquiredwhichisactiveinproductdevelopmentanddesignintheopticalsector.
Aspartofthestatedcompanyacquisitions(acquisitioncostsofT¤2,202,uptoT¤50paidwithcash),differenceswerebalancedasgoodwilltotheamountofT¤866inaccordancewiththepurchasepriceallocationasperIFRS3.Therewerenoseparatelyapplicableintangibleassetswithasignificantvalue.EquityworthT¤915wasincludedinthecapitalconsolidation.Thevalueofthegoodwillwasshownbyimpairmenttestsinlinewiththeprinciplessetoutbelow.
Inviewoftheeconomicimportanceofthestoresopenedandtheacquiredopticalbusinessesaspartofthenormalexpansionproceduresduringthereportingyear,noseparatedescriptionisincludedofthechangestothescopeofconsolidationarisingfromthis.Inthecurrentfinancialyear,therehavebeennorelevantchangestotheownershipstructuresofcompaniesalreadyincludedinthescopeofconsolidationinthepreviousyear.Aspartofongoingeffortstooptimisethestorenetwork,nostoreswereclosedinthereportingperiod(previousyear:none).
Principles of consolidation
Theconsolidatedaccountsarederivedfromtheindividualaccountsofthecompaniesinvolved.Themanagementaccountsofthecompaniessubjecttomandatoryauditingwereauditedasat31December2017andpassedwithunqualifiedcertification.The accounts as at 31 December 2017 of the other companies were analysedtoascertainwhethertheywereinaccordancewiththeprinciplesofproperaccountingandwhethertherelevantstatuteshavebeencompliedwithforinclusioninthecon-solidatedbalancesheet.
TheannualaccountsofsubsidiariesareadjustedwherenecessarytobringthemintolinewiththeaccountingandvaluationmethodsappliedwithintheGroup.
ReceivablesandliabilitiesandincomeandexpenditurebetweenGroupcompa-nieshavebeensetoffagainsteachother,exceptinindividualcaseswheretheyaresominorastobenegligible.Taxisdeferredonconsolidationprocessesthataffectprofitandloss.PursuanttoIAS12,therelevantnationalaverageincometaxrateshavebeenappliedforthecompaniesconcerned.
Intra-Groupprofitsoninventoriesandfixedassetshavebeeneliminated.Non-controlling shareholders’ shares in subsidiariesare reportedwithinequity
capitalseparatelyfromtheGroup’sequity.Capitalconsolidationiscarriedoutbysettingofftheacquisitioncostsagainstthe
prorataequitycapitalofthesubsidiariesatcurrentvalues.Non-controllinginterests’sharesofthenetassetsofcompaniesincludedintheGrouparevaluedonacquisitionatthecorrespondingshareofthereportedamounts.Non-controllinginterestsinthe
74 Annualreport2017
NOTES
Group’spartnerships,whichhavethenatureofequityinindividualcompanyaccountsprepared in accordancewith local accounting rules, are reported as liabilities inaccordancewithIAS32.Theexceptiontothisruleisassetshortfallsintheindividualcompany accounts, which are reported as negative values under non-controllinginterestsinequity.
Goodwill and impairment test
Thegoodwillresultingfromabusinesscombinationisreportedatcostlessanyimpair-mentlossesthatmayberequiredandshownseparatelyinthebalancesheet.Forthepurposesoftestingforimpairment,goodwillmustbeallocatedtoeachoftheGroup’scashgeneratingunits(CGUs)whichareexpectedtobenefitfromthesynergiesgeneratedbythecombination.
Theimpairmenttestforgoodwilliscarriedoutregularlyon31Decemberofeachfinancial year. The CGUs were determined according to the internal ManagementReporting. As no stock market quotation ormarket prices were available for theseCGUs,thetesthasbeenexclusivelycarriedoutbycomparingthebookvalueagainstthevalueinuse(recoverableamount).Thecashflowsunderlyingthevalueinuseresultfromoneyear’sdetailedprojectionandasubsequenttwoyears’projection,whichinturnisderivedfromthecumulativeGroupplanning,andthereafterfromaperpetuityvaluebasedonthethirdplanningyear.Thegrowthratesresultingfromthisplanningamountto4.7%forthefirstyearand4.6%forthesecondyear(previously:3.2%and3.1%).Agrowthrateof0.5%wasassumedfromthe thirdyear(previousyear:0.5%).Thepre-taxcapitalisationrateamountedto5.8%(previousyear:5.3%).WithintheGroup,theprojectionsareusuallybasedonfigurestakenfrompreviousbusinessdevelopment.Currentexternaldataarealso included in theanalysisprocessonaccountof thesefiguresinrelationtolocation.
Foreign exchange conversion
The functionalcurrencyconcept isapplied toaccountsofconsolidatedcompaniesthatareprepared in foreigncurrencies.The foreigncompaniesoperate theirbusi-nessindependently.Thereforethefunctionalcurrencyisthenationalcurrencyoftherespectivecountry.Individualtransactionsarerecordedattherateprevailingonthebalancesheetdate.Anyforeignexchangedifferencesfromtheequalisationofopenitemsarepostedintheprofitandlossaccount.Annualaccountsreceivedfromforeign
Annualreport201775
NOTES
companiesareadaptedtocomplywiththeaccountingformatandvaluationprinciplesoftheFielmannGroup.InlinewithIAS21,balancesheetfiguresareconvertedtoeurosonthebalancesheetdate.Theprofitandlossaccountsareconvertedtoeurosattheaverageannualrate.Anyforeignexchangedifferencesarepostedtoaseparateforeignexchangeequalisationitemincludedunderprofitreserves.
Therewerethefollowingchangestotheforeigncurrenciesofrelevancetocon-vertingsubsidiaries’accountsandtotheGroup’sprocurement:
Balance sheet rate 31.12.2017
1 ¤ =
Balance sheet rate 31.12.2016
1 ¤ =
Average rate 2017
1 ¤ =
Average rate 2016
1 ¤ =
Japaneseyen(JPY) 135.01 123.40 126.71 120.20
Polishzloty(PLN) 4.17 4.42 4.26 4.36
Swissfranc(CHF) 1.17 1.08 1.11 1.09
Ukrainianhryvnia(UAH) 33.50 28.42 30.05 28.32
USdollar(USD) 1.20 1.05 1.13 1.11
Belarussianrouble(BYN) 2.36 2.05 2.19 2.20
ChangesintheUSdollarandJapaneseyenareofrelevancetotheFielmannGroupastheyaffectrecurringpurchasecontractsforframes.Inthefinancialyear,thepurchaseofgoodsinUSdollaramountedto¤33.5million(previousyear:¤32.0million)andinJapaneseyento¤1.6million(previousyear:¤1.6million).Thepreviousyear’saverageexchangerateisappliedtothepurchasesforcomparativepurposestodemonstratetheeffectofthechangeinexchangerates.Thedevelop-mentoftheUSdollarhadapositiveeffectonthepurchaseofgoodsamountingtoaround¤0.7million;positive(previousyear:¤0.1million;negative).Thedevelop-mentoftheJapaneseyenhadaneglibleimpactonthepurchaseofthesegoodsinthereportingyear(previousyear:negativeimpactof¤0.1million).
TheGroup’s sales inSwiss francs totalledCHF190.7million (previousyear:CHF185.9million).ThenegativeimpactofchangesintheSwisscurrencyonsalesamountsto¤3.3millionwhenconsideringthepreviousyear’saveragerateasacomparativevalue(previousyear:¤3.5million;negative).
76 Annualreport2017
NOTES
Individual balance sheet items
PreparationoftheconsolidatedaccountsaccordingtoIFRSnecessitatesestimatesandassumptionsbeingmadeinordertoaccountforandvalueassetsandliabili-ties. These are continually verified. In particular, assumptions and estimates aremadeinconnectionwiththevaluationofgoodwill(Note(2)),accruals(Note(18);Note(21))andtax-relatedissues(Note(5);Note(20)).ThemainassumptionsandparametersonwhichtheestimatesarebasedaredescribedinthefollowingNotestotheaccounts.
Intangible assets and tangible assets (A. I., III.) Intangibleassetsandtangi-bleassetsarevaluedandextrapolatedatacquisitionorproductioncostlessstraight-linescheduleddepreciation.Whensoftwareisdevelopedin-house,Groupcompaniesareregardedasthemanufacturers.TheassociatedcostsarecapitalisedatproductioncostinaccordancewithIAS38.
Inthecaseofproductionpremises,aservicelifeofupto25yearsisapplied.ThecastleinPlön(PlönCastle)isdepreciatedover55years,whileotherbusinesspremisesaredepreciatedoveramaximumof50years.Tenants’fittingsaredepreciatedonastraight-linebasis,takingintoaccountthetermofthetenancy(normallyseventotenyears).Factoryandofficeequipment isdepreciatedover two to thirteenyears(machineryandequipmentgenerallyoverfiveyearsandITequipmentoverthreetofiveyears).Theservicelifeisreviewedregularlyandadjustedwherenecessarytoanti-cipatedlife.Whereappropriate,extraordinarydepreciationisappliedinaccordancewithIAS36,andthenreversedwhentheoriginalreasonsforitnolongerapply.TherearenoborrowingcostswherecapitalisationisrequiredinaccordancewithIAS23.
Anypublicsubsidiesaredeductedfromtheacquisitioncostsandrecognisedatthedateofacquisition.Inthefinancialyearandinthepreviousyear,noallowancesweregranted.
Investment properties (A.IV.) PropertieswhicharenotusedintheGroup’scorebusiness(investmentpropertiesunderthetermsofIAS40)arealsovaluedatamortisedcostinaccordancewiththeprinciplesspecifiedabove.Theyaresubjecttoextraordi-narydepreciationif therealisableamount(valueinuse)fallsbelowthebookvalue.Extraordinarydepreciation is reportedunder the item“depreciation”.As inpreviousyears,agrossrentalmethod(hierarchyLevel3inaccordancewithIFRS13)usingarentalincomefactordeducedfrommarketobservationsof15annualnetrentalsisusedtoreachthisvaluation.ThecurrentvalueofthesepropertiesisshownintheNotestotheaccounts.Revaluationsarecarriedoutiftherealisableamount(valueinuse)resulting
Annualreport201777
NOTES
fromalong-termimprovementintheleasingsituationexceedsthebookvalue.Theserevaluationsarereportedin“otheroperatingincome”.
Mixed-usepropertiesarebrokendowninaccordancewithIAS40.10.Aportionisshownunderinvestmentproperties,anotherportionundertangibleassets.Iftheycannotbebrokendowninthiswaybecauseofeconomicorlegalconditions,theyareshownsolelyundertangibleassets,since,asarule,thevastmajorityoftheGroup’spropertiesareusedforbusinesspurposes.
Financial instruments (A. V., VIII. and B. II., III., VI., VII.) Financialinstru-mentspursuanttoIFRSareexplainedinNote(25)andintheManagementReport.Furtherexplanationsofbalancesheetitemstowhichfinancialinstrumentsareallo-catedareindicatedinNote(25)oftheNotestotheaccounts.
Securities,participatinginterestsandotherinvestmentsareaccountedforinaccor-dance with IAS 39. Current securities in the “Financial Assets Held for Trading”categoryaregenerallyaccountedforatmarketvalues.Ifnostockmarketpricesareavailable,marketvaluationsbybanksareused.Financialinvestmentsnotcategorisedasheldfortradingpurposesaredesignatedasat“FairValuethroughProfitorLoss”whenrecognisedforthefirsttimeifsuchclassificationsignificantlyreducesaccountingmismatches.Additionsanddisposalsarereportedattheirrespectivevalueonthedatethetransactioniscompleted.
Therehasbeennoneedtodevelopseparatecriteriaforreporting,writingdownorretiringassetsforanyclassoffinancialinstrumentbecauseoftheGroup’slow-riskpolicyandclearfinancialmanagement.Theunrealisedprofitsand lossesresultingfromthemarketvaluationaretakenintoaccountthroughprofitorloss,afterdeductionof thedeferred taxes. Incaseswhere themarketvalueofasecurityor investmentcannotbedeterminedreliably,thevaluationismadeatcostandreducedbyanyvalueadjustmentsthatmaybenecessary.
Ifthemarketvaluedoesnotmatchtheamortisedcost,thefollowinghierarchyisusedtodeterminethemarketvalueoffinancialinstruments:
Level1:TheinputparametersforLevel1arequotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasure-mentdate.Level2: The input parameters for Level2 are inputs other thanquotedpricesincludedinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly,derivedprincipallyfromorcorroboratedbyobservablemarketdata.Level3:TheinputparametersforLevel3areunobservableinputsfortheassetorliability.
78 Annualreport2017
NOTES
The financial instruments in the “investment management custodial accounts”,“funds”andashareof“otherreceivables”classesmeasuredatmarketvalueintheGroupfallwithinLevel1ofthehierarchy.Inventories (B. I.) Rawmaterials,suppliesandmerchandisearevaluedatacqui-sitioncost.Whennecessary,theyarereducedbymeansofvalueadjustmentstothelowernetsalesproceeds.Theyareextrapolatedbytheescalatingaveragemethod.FinishedandunfinishedproductsarevaluedatproductioncostinaccordancewithIAS2.Thisincludesproduction-relatedoverheads.Giventheshortproductionprocess,interestisnotrecognised.
Receivables (A. VII., VIII. und B. II., III., IV., V.) Tradereceivablesandotherreceivables(financialandnon-financial)arestatedatnominalvaluelessanyvalueadjustmentsobviouslyrequired. In individualcases,otherfinancialreceivablesarerecognisedatmarketvaluetoensurebetterrepresentationoftheGroup’sassetsitua-tion.Inthereportingyear,thisreferstocashadvancesdesignatedtocoverinsurance-relatedaccrualsanddeferralsforunearnedpremiumstotheinsureroftheZero-CostInsurancepolicy.Theseadvancesareinvestedbytheinsurerascapitalinvestments.Thenetearnings(profitsandlosses)fromthecapitalinvestmentsareexclusivelyforFielmann.Forat-riskreceivables,thedegreeofcertaintyofthedefaultriskisthekeycriterionfordecidingwhethertooptforavalueadjustmentorretirement.Receivablesareretiredwhentheyarefinallylostorwhenpursuitoftheclaimisfutile,thusmakingnoeconomicsense(e.g.minorsums).
Valueadjustmentsarecalculatedonacasebycasebasiswheretheyaremate-rial,otherwisebygroupingtogetherdefaultriskcharacteristicsofthesamekind,e.g.temporalcriteria.
Deferred taxes (assets A. VI. and liabilities B. III.) DeferredtaxassetsaretheresultofdifferingentriesintheIFRSandtaxaccountsofGroupcompaniesandconsolidationmeasures,wheresuchdifferencesarebalancedoutagainovertime.Thesealsoincludeoutsidebasisdifferences,asdefinedinIAS12,whichresultfromthe
Annualreport201779
NOTES
differencebetweentheproratanetassetsofasubsidiaryrecordedintheconsolidatedbalancesheetandtheinvestmentbookvalueofthissubsidiaryintheparentcompany’staxbalancesheet.Ataxdeferralismadeforoutsidebasisdifferences,ifrealisationisexpectedwithin12months. Inaddition, taxdeferralsaremade,particularly forlosscarry-forwardsincompliancewithIAS12.Thetaxratesthatareexpectedtobeapplicablewhentheassetisrealisedortheliabilityismetareusedasabasisforcalculatingdeferredtaxassetsanddeferredtaxliabilities.
InaccordancewithIAS1.70,deferredtaxesarerecordedasnon-currentassets(Note(5))andliabilities(Note(20)).
Deferredtaxassetsanddeferredtaxliabilitiesarenettediftheyrelatetoincometaxgroupsor individualcompaniesandmaturity-matched inaccordancewith IAS12.71ff.Accruals (B. I. and C. I.) AccrualsareaccountedforinaccordancewithIAS37andIAS19(revised2011).Accordingly,accrualsarestatedinthebalancesheetforlegalordefactoobligationsresultingfrompastevents,iftheoutflowoffundstosettletheobligationisprobableandcanbeestimatedreliably.Thefigureforaccrualstakesintoaccountthoseamountswhicharenecessarytocoverfuturepaymentobligations,recognisable risksanduncertain liabilitiesof theGroup.Non-currentaccrualsarediscountedinthecaseofmaterialeffectsandenteredatpresentvalue.Theinterestrateusedisappliedtoallaccrualsandisappropriatetothetermofbonds.
Accruals forpensionsarevalued fordefinedbenefitobligationsusing thepro-jectedunitcreditmethod.Takingdynamicaspects intoaccount, thismethoddeter-minestheexpectedbenefitstobepaidonoccurrenceoftheeventanddistributesthemovertheentiretermofemploymentoftheemployeeconcerned.Actuarialopinionsarecarriedoutannuallytoallowthis.Actuarialgainsandlossesresultingfromchangesintheassumptionsanddifferencesbetweentheassumptionsandwhatactuallyhappensarerecognisedunder“othercomprehensiveincome”.
PleaseseeNote(18)forfurtherdetails.
80 Annualreport2017
NOTES
Liabilities (B. II. and C. II., III., IV., V.) Financialliabilitiesaregenerallyvaluedatthesettlementamount,incompliancewithIAS39.Anydifferencebetweenwhatispaidandtheamountrepayableonfinalmaturityisamortised.Liabilitiesinforeigncurrenciesareconvertedattherateprevailingonthereportingdate.Non-financialliabilitiesarereportedattherepayableamount.
Contingent liabilities Contingentliabilitiesarepossibleobligationsinrespectofotherpartiesorcurrentobligationsinwhichanoutflowofresourcesisimprobableorcannotbereliablydetermined.Contingentliabilitiesareinprinciplenotstatedonthebalancesheet.
Leasing Astheownerofproperty,FielmannAktiengesellschaftfunctionsaslessorinoperatingleases.ThesearenotpartoftheGroup’scorebusiness.
TheGroup isa lessee solely inoperating leases. Fielmannuses leases to rentbusinesspremisesandvehicles.Inafewcases,Fielmannalsoleasestechnicaldevices.
Revenue realisation Fielmann primarily generates revenues through its retailbusiness. Revenue is realised at the time when finished products are delivered tothecustomer.TheGroupalsogeneratessmallquantitiesofrevenuefromwholesalebusinessintheGermanysegment.Theincomefromsalesalsoincludeearningsfromprocessing insurancecases from theZero-Cost Insurancepolicy.ForFielmann, theextentofobligationarisinghereisintheprovisionofapairofcorrectionglasses.Forthisreason,Fielmannrealisesrevenuethatcorrespondstothatfromtheretailbusiness.
Furthermore,Fielmannrecords revenue from the insurance-related income fromtheZero-CostInsurancepolicyunderincomefromsales.ThisrevenueisrecordedifitislikelythattheeconomicbenefitwillpasstotheGroupandtheamountcanbedeterminedreliably.
Leasepaymentsaredistributedonastraight-linebasisoverthetermoftheleaseinquestionthroughprofitandloss.Materialnon-recurringincomeandcosts,whicharedirectlyattributabletoleases,arealsodistributedovertheirterm.
Annualreport201781
NOTES
Share-based remuneration Share-basedremunerationsettledthroughequityinstrumentstoemployeesisvaluedatthefairvalueoftheinstrumentonthedatetheyaregranted.ThisremunerationonlycontainsFielmannGroupsharesavailableonthemarket,whichmeansthatthereisnouncertaintyregardingestimatesoftheirvalue.PleaseseeNote(30)onformsofremuneration.
Earnings per share Basicearningspersharearecalculatedbyestablishingtheratiofromtheearningsattributabletotheprovidersofequitycapitalandtheaveragenumberofissuedsharesduringthefinancialyear–withtheexceptionofownshares,whichthecompanyholdsitself.Ifthereisanydilutionofearnings,thisisincludedinthecalculationofdilutedearningspershare.Therewerenosucheffectsinthecurrentandpreviousyear.
82 Annualreport2017
NOTES
IV. Notes to the
consolidated accounts
Assets Changes in consolidated fixed assets as at 31. 12. 2017
Acquisition and production costs Accumulated depreciation Residual book values
Position as at
1.1.2017¤ ‘000
Foreign exchange
conversion¤ ‘000
Additions
¤ ’000
Disposals
¤ ’000
Book transfer
¤ ’000
Position as at
31.12.2017 ¤ ’000
Position as at
1.1.2017¤ ‘000
Foreign exchange
conversion ¤ ‘000
Additions
¤ ‘000
Disposals
¤ ‘000
Book transfer
¤ ‘000
Write-up
¤ ‘000
Position as at
31.12.2017 ¤ ‘000
Position as at
31.12.2017 ¤ ‘000
Position as at
31.12.2016 ¤ ‘000
I. Intangible assets
1. Rightsofusufruct 16,032 –419 3,794 66 19,473 12,696 –350 1,048 13,394 6,079 3,336
2. Licences,commercialtrademarksandassociatedrights 29,101 –26 4,187 102 32 33,192 24,452 –22 1,936 101 26,265 6,927 4,649
3. Intangibleassetsproducedin-house 10,624 1,063 11,687 1,129 2,338 3,467 8,220 9,495
4. Incompletesoftwareprojects 899 2,738 –92 3,545 0 3,545 899
56,656 –445 11,782 102 6 67,897 38,277 –372 5,322 101 0 0 43,126 24,771 18,379
II. Goodwill 140,010 –4,789 866 192 0 135,895 94,306 –4,251 0 192 0 0 89,863 46,032 45,704
III. Tangible assets1. Propertyandsimilarrightsand
buildings,includingbuildingsonthird-partyland 125,086 –634 6,280 10 –116 130,606 37,149 –317 2,528 10 –127 260 38,963 91,643 87,937
2. Tenants’fittings 211,191 –2,212 17,987 5,265 1,057 222,758 146,136 –1,444 11,754 4,992 151,454 71,304 65,055
3. Factoryandofficeequipment 316,598 –3,148 27,603 14,029 –396 326,628 246,077 –2,711 22,172 13,002 252,536 74,092 70,521
4. Assetsunderconstruction 876 –9 2,543 –718 2,692 0 2,692 876
653,751 –6,003 54,413 19,304 –173 682,684 429,362 –4,472 36,454 18,004 –127 260 442,953 239,731 224,389
IV. Investment property 36,339 0 1 0 167 36,507 19,935 0 496 0 127 140 20,418 16,089 16,404
V. Financial assets 1,414 0 1,755 362 0 2,807 101 0 0 0 0 0 101 2,706 1,313
Total fixed assets 888,170 –11,237 68,817 19,960 0 925,790 581,981 –9,095 42,272 18,297 0 400 596,461 329,329 306,189
Annualreport201783
NOTES
Acquisition and production costs Accumulated depreciation Residual book values
Position as at
1.1.2017¤ ‘000
Foreign exchange
conversion¤ ‘000
Additions
¤ ’000
Disposals
¤ ’000
Book transfer
¤ ’000
Position as at
31.12.2017 ¤ ’000
Position as at
1.1.2017¤ ‘000
Foreign exchange
conversion ¤ ‘000
Additions
¤ ‘000
Disposals
¤ ‘000
Book transfer
¤ ‘000
Write-up
¤ ‘000
Position as at
31.12.2017 ¤ ‘000
Position as at
31.12.2017 ¤ ‘000
Position as at
31.12.2016 ¤ ‘000
I. Intangible assets
1. Rightsofusufruct 16,032 –419 3,794 66 19,473 12,696 –350 1,048 13,394 6,079 3,336
2. Licences,commercialtrademarksandassociatedrights 29,101 –26 4,187 102 32 33,192 24,452 –22 1,936 101 26,265 6,927 4,649
3. Intangibleassetsproducedin-house 10,624 1,063 11,687 1,129 2,338 3,467 8,220 9,495
4. Incompletesoftwareprojects 899 2,738 –92 3,545 0 3,545 899
56,656 –445 11,782 102 6 67,897 38,277 –372 5,322 101 0 0 43,126 24,771 18,379
II. Goodwill 140,010 –4,789 866 192 0 135,895 94,306 –4,251 0 192 0 0 89,863 46,032 45,704
III. Tangible assets1. Propertyandsimilarrightsand
buildings,includingbuildingsonthird-partyland 125,086 –634 6,280 10 –116 130,606 37,149 –317 2,528 10 –127 260 38,963 91,643 87,937
2. Tenants’fittings 211,191 –2,212 17,987 5,265 1,057 222,758 146,136 –1,444 11,754 4,992 151,454 71,304 65,055
3. Factoryandofficeequipment 316,598 –3,148 27,603 14,029 –396 326,628 246,077 –2,711 22,172 13,002 252,536 74,092 70,521
4. Assetsunderconstruction 876 –9 2,543 –718 2,692 0 2,692 876
653,751 –6,003 54,413 19,304 –173 682,684 429,362 –4,472 36,454 18,004 –127 260 442,953 239,731 224,389
IV. Investment property 36,339 0 1 0 167 36,507 19,935 0 496 0 127 140 20,418 16,089 16,404
V. Financial assets 1,414 0 1,755 362 0 2,807 101 0 0 0 0 0 101 2,706 1,313
Total fixed assets 888,170 –11,237 68,817 19,960 0 925,790 581,981 –9,095 42,272 18,297 0 400 596,461 329,329 306,189
84 Annualreport2017
NOTES
Changes in consolidated fixed assets as at 31. 12. 2016
Acquisition and production costs Accumulated depreciation Residual book values
Position as at
1.1.2016¤ ‘000
Foreign exchange
conversion¤ ‘000
Additions
¤ ’000
Disposals
¤ ’000
Book transfer
¤ ’000
Position as at
31.12.2016 ¤ ’000
Position as at
1.1.2016¤ ‘000
Foreign exchange
conversion ¤ ‘000
Additions
¤ ‘000
Disposals
¤ ‘000
Book transfer
¤ ‘000
Write-up
¤ ‘000
Position as at
31.12.2016 ¤ ‘000
Position as at
31.12.2016 ¤ ‘000
Position as at
31.12.2015 ¤ ‘000
I. Intangible assets
1. Rightsofusufruct 15,325 40 797 130 16,032 11,814 31 978 127 12,696 3,336 3,5112. Licences,commercialtrademarks
andassociatedrights 26,877 1 1,749 112 586 29,101 22,426 1 2,075 50 24,452 4,649 4,451
3. Intangibleassetsproducedin-house 1,240 7,518 264 2,130 10,624 555 838 264 1,129 9,495 685
4. Incompletesoftwareprojects 2,795 793 –2,689 899 0 899 2,795
46,237 41 10,857 506 27 56,656 34,795 32 3,891 441 0 0 38,277 18,379 11,442
II. Goodwill 140,818 466 0 1,274 0 140,010 95,166 414 0 1,274 0 0 94,306 45,704 45,652
III. Tangible assets1. Propertyandsimilarrightsand
buildings,includingbuildingsonthird-partyland 124,839 62 119 66 125,086 34,656 31 2,462 37,149 87,937 90,183
2. Tenants’fittings 202,272 80 14,782 6,701 758 211,191 141,198 38 10,750 5,850 146,136 65,055 61,074
3. Factoryandofficeequipment 307,529 16 22,237 12,807 –377 316,598 236,243 38 22,396 12,600 246,077 70,521 71,286
4. Assetsunderconstruction 654 –2 698 –474 876 0 876 654
635,294 156 37,836 19,508 –27 653,751 412,097 107 35,608 18,450 0 0 429,362 224,389 223,197
IV. Investment property 36,343 0 26 30 0 36,339 19,443 0 493 1 0 0 19,935 16,404 16,900
V. Financial assets 765 0 850 201 0 1,414 101 0 0 0 0 0 101 1,313 664
Total fixed assets 859,457 663 49,569 21,519 0 888,170 561,602 553 39,992 20,166 0 0 581,981 306,189 297,855
Annualreport201785
NOTES
Acquisition and production costs Accumulated depreciation Residual book values
Position as at
1.1.2016¤ ‘000
Foreign exchange
conversion¤ ‘000
Additions
¤ ’000
Disposals
¤ ’000
Book transfer
¤ ’000
Position as at
31.12.2016 ¤ ’000
Position as at
1.1.2016¤ ‘000
Foreign exchange
conversion ¤ ‘000
Additions
¤ ‘000
Disposals
¤ ‘000
Book transfer
¤ ‘000
Write-up
¤ ‘000
Position as at
31.12.2016 ¤ ‘000
Position as at
31.12.2016 ¤ ‘000
Position as at
31.12.2015 ¤ ‘000
I. Intangible assets
1. Rightsofusufruct 15,325 40 797 130 16,032 11,814 31 978 127 12,696 3,336 3,5112. Licences,commercialtrademarks
andassociatedrights 26,877 1 1,749 112 586 29,101 22,426 1 2,075 50 24,452 4,649 4,451
3. Intangibleassetsproducedin-house 1,240 7,518 264 2,130 10,624 555 838 264 1,129 9,495 685
4. Incompletesoftwareprojects 2,795 793 –2,689 899 0 899 2,795
46,237 41 10,857 506 27 56,656 34,795 32 3,891 441 0 0 38,277 18,379 11,442
II. Goodwill 140,818 466 0 1,274 0 140,010 95,166 414 0 1,274 0 0 94,306 45,704 45,652
III. Tangible assets1. Propertyandsimilarrightsand
buildings,includingbuildingsonthird-partyland 124,839 62 119 66 125,086 34,656 31 2,462 37,149 87,937 90,183
2. Tenants’fittings 202,272 80 14,782 6,701 758 211,191 141,198 38 10,750 5,850 146,136 65,055 61,074
3. Factoryandofficeequipment 307,529 16 22,237 12,807 –377 316,598 236,243 38 22,396 12,600 246,077 70,521 71,286
4. Assetsunderconstruction 654 –2 698 –474 876 0 876 654
635,294 156 37,836 19,508 –27 653,751 412,097 107 35,608 18,450 0 0 429,362 224,389 223,197
IV. Investment property 36,343 0 26 30 0 36,339 19,443 0 493 1 0 0 19,935 16,404 16,900
V. Financial assets 765 0 850 201 0 1,414 101 0 0 0 0 0 101 1,313 664
Total fixed assets 859,457 663 49,569 21,519 0 888,170 561,602 553 39,992 20,166 0 0 581,981 306,189 297,855
86 Annualreport2017
NOTES
Intangibleassets includeITsoftware,whichiswrittendownonastraightlinebasisoverthreetofiveyears.Therearenointangibleassetswithunlimitedusefullives.
Theadditionsregardingtheintangibleassetsproducedin-housefullyrelatetothecapitalisationofanin-housesoftwaredevelopmentamountingtoT¤1,063(previousyear:T¤7,518).Therewerenotransfersfromtheincompletesoftwareproductstotheintangibleassetsproducedin-house(previousyear:T¤2,130).
Theadditionsregardingtheincompletesoftwareproductsmainlyrelatetocostsforfurtherdevelopingthecompany’sownsoftware,amountingtoT¤2,218(previousyear:T¤0).Furtheradditionsrelatetocostsfordevelopingnewsoftware,amountingtoT¤520(previousyear:T¤674).
The costs which could not be capitalised in the reporting year amounted toT¤521intotal(previousyear:T¤3,204).
Thisitemalsoincludesleasingrightsthatarewrittendownoveramaximumof15years.TheadditionsregardingtheleasingrightslargelyresultfromthenewstoresinItalyandamounttoT¤3,190.
Thisitemcontainsgoodwillfromcapitalconsolidation.Goodwillisallocatedtoindivid-ualcashgeneratingunits(CGUs)forthepurposesoftheimpairmenttest.Inestablishedmarkets,theseareessentiallyindividualstores.IncountrieswheretheFielmannstorenetworkhasnotyetbeenbuiltupsufficiently, the impairment test takesplaceat theleveloftheentireregion.SignificantgoodwillamountingtoT¤36,602wasallocatedtotheGermanysegment(previousyear:T¤35,897),includingT¤27,386applicabletostorestreatedassingleCGUs(previousyear:T¤26,680)andT¤8,740toRathe-nowerOptischeWerkeGmbH(previousyear:T¤8,740).FurthersignificantgoodwillofT¤5,723isattributabletotheSwitzerlandsegment(previousyear:T¤6,261)andofT¤3,546 to theNetherlands in theother segments (previousyear:T¤3,546).Thechanges in book value are caused by the conversion in Switzerland triggered bychangesintheexchangerate.
(1) Intangible assets
(2) Goodwill
Annualreport201787
NOTES
The residual book values of tangible assets including investment properties breakdownamongthesegmentsasfollowsasat31December2017:
31.12.2017 ¤ ‘000
31.12.2016 ¤ ‘000
Germany 219,264 208,320
Switzerland 21,949 21,287
Austria 5,885 6,794
Other 8,722 4,392
255,820 240,793
Technicalfacilitiesandmachineryareincludedundertheitem“factoryandoffice
equipment”.Theadditions(includingthoseresultingfromareclassificationfromassetsunder
construction)intangibleassetswereinpartduetotheexpenditureofT¤33,660onreplacements for stores (previousyear: T¤28,213).Otheradditions resulted fromexpansionoftheGroup(T¤8,742;previousyear:T¤3,822).Therearerestrictionsintermsoftherightofdisposalwithregardstopropertiesandothertangibleassetsof theFielmannAcademydue tonon-profitstatusand listedbuildingstatus.ThesetotalledT¤18,292(previousyear:T¤18,687).
TheadditionstolandandpropertyincludeT¤5,867worthofadditionsfromtheactivationofapropertyinLübeck.On28September2017,acontractofpurchaseworthT¤4,200wasnotarizedforapropertypurchaseinOldenburg.ThetransferofbenefitsandobligationstookplaceinJanuary2018.
RealestatewhichisnotactivelyusedbyanyofthecompanieswithintheGroupisincludedininvestmentpropertiesclassification.UnderIAS40,suchpropertiesareclassifiedasinvestmentandvaluedatamortisedcost.Inthereportingyear,additionalcapitalisationsofT¤1weremadefortheseproperties(previousyear:T¤26).ThefairvalueascertainedwithoutaprofessionalsurveyorbutonthebasisofthegrossrentalmethodisT¤23,202(previousyear:T¤22,980).ThecorrespondingrentalincomeduringthereportingperiodamountstoT¤1,547(previousyear:T¤1,532).ThisisoffsetbydirectlyattributableexpensesofT¤990(previousyear:T¤1,009).Asinthepreviousyear,therewerenoextraordinarydepreciationsonproperty.
(3) Tangible assets/
investment property
88 Annualreport2017
NOTES
Non-current financialassetscontain,amongothers, loanstonon-controllingshare-holders.
DeferredtaxassetsamountingtoT¤12,686arecapitalised(previousyear:T¤9,224).MoreinformationisprovidedinNote(39)oftheNotestotheaccounts.
Non-currentotherfinancialassetsareessentiallylong-termbondsandfixeddepositsofFielmannAktiengesellschaft.Thechangecompared to thepreviousyearmainlyresultsfromthematuritiesinthefinancialassets.ThesummaryoffinancialassetsisshowninNote(42). Inaddition,deposits,employeeloansandreinsuranceentitle-mentswerealsoreportedunderthisitem.Regardingemployeeclaims(intheformofloans),weexpectarepaymentofT¤50inthenext12months(previousyear:T¤98).Thisisreportedundercurrentotherfinancialassets(seeNote(8)).
31.12.2017¤ ‘000
31.12.2016¤ ‘000
Rawmaterialsandsupplies 637 700
Workinprogress 8,785 8,689
Finishedproductsandmerchandise 119,251 118,747
128,673 128,136
Inventoriesmainlyrelatetoproductsforglasses,sunglasses,contactlensesandhea-ringaids.Theyalsoincludeothermerchandise.Workinprogressprincipallyrelatestoprocessedcustomerordersforglassesandhearingaids.
ThetotalvalueadjustmentsoninventoriesstandsatT¤6,868andwasrecognisedin full under cost ofmaterials (previous year: T¤7,497).Utilisation of inventoriesamounting to T¤ 273,649 were recognised as expenditure in the financial year(previousyear:T¤277,408).
Therewerenocontractualliens,securityinterestsorrightsofsettingoffthatwouldapplytothereceivables.Therewerenodeviatingfairvalues.Thevastmajorityoftheassetslistedarenotinterestbearingandareconsequentlynotsubjecttoanyinterestraterisk.
(4) Non-current financial assets (25)
(5) Deferred tax assets
(6) Other non-current
financial assets (25)
(8) Trade debtors and
current other financial
assets (25)
(25)SeeNote(25)forfurtherdetails
(7) Inventories
Annualreport201789
NOTES
ValueadjustmentsofT¤2,481werecreatedforamountsduefromcustomersinthestores(previousyear:T¤2,530).Thedefaultriskwithregardtootherreceivablesisviewedaslow.ValueadjustmentsamountingtoT¤736wererecorded(previousyear:T¤676).
OtherfinancialassetsmainlycontainreceivablesduefromsuppliersofT¤24,836(previousyear:T¤20,454),claimsagainstnon-controllingshareholdersofT¤772(previous year: T¤ 977) and claims against insurance companies of T¤ 22,841(previousyear:T¤22,126).Ofthesereceivables,T¤21,791werevaluedatmarketvalue(previousyear:T¤21,043).
ThisitemmainlycomprisesprepaidexpensesforadvancepaymentsofsocialsecuritycontributionsinSwitzerlandandforITatFielmannAktiengesellschaft.
TaxassetsamountingtoT¤10,748(previousyear:T¤9,725)resultfromprepaymentsofcorporation tax(T¤4,838;previousyear:T¤5,260)andtradetax(T¤5,910;previousyear:T¤4,465).
Currentfinancialassetscontainbonds,fixeddeposits,bondedloansandfundsheldbyFielmannAktiengesellschaft.TheyalsoincludeacustodialaccountinSwitzerlandcomprisingsharesandbonds.Inaddition,thecurrentfinancialassetsincludefundsinthedistributioncompanyinItalywhichserveasleasesecurities.Thechangecom-paredtothepreviousyearmainlyresultsfromthematuritiesinthefinancialassets.ThesummaryoffinancialassetsisshowninNote(42).
Thisitemcontainsliquidfundsandcapitalinvestmentswitharemainingtermatthedateofacquisitionofuptothreemonths.ThecreditriskisviewedaslowbecauseoftheGroup’sinvestmentguidelinesandtheassessmentofthemarket.Thechangecomparedtothepreviousyearmainlyresultsfromthematuritiesinthefinancialassets.ThesummaryoffinancialassetsisshowninNote(42).
Equity and liabilities
As at 31 December 2017, the subscribed capital of Fielmann AktiengesellschaftamountedtoT¤84,000.AttheAnnualGeneralMeetingon3July2014,astocksplit(1:2ratio)wasresolvedandcarriedouton22August2014.Sincethen,Fielmann’scapitalhasbeendividedinto84millionordinarysharesofnoparvalue.Anotional
(9) Non-financial
assets
(10) Current tax
assets
(11) Current financial
assets (25)
(12) Cash and cash
equivalents (25)
(13) Subscribed capital/
authorised capital
(25)SeeNote(25)forfurtherdetails
90 Annualreport2017
NOTES
interestinthesharecapitalof¤1.00isattributabletoeachofthe84millionshares.ThesharesarebearersharesandallofferthesamevotingrightsaswellasrightstotheassetsandprofitsofFielmannAktiengesellschaft.
UnderArticle5Para.3of theArticlesofAssociation, theManagementBoardhastheauthority,subjecttotheagreementoftheSupervisoryBoard,tomakenewrightsissuesofordinarybearersharesforcashand/orcontributionsinkind,inoneormorestagesupto13July2021,foruptoamaximumofT¤5,000.TheManagementBoarddidnotexercisethisauthorityinthereportingperiod.
The fundamentalaimofourcapitalmanagement is toguarantee theFielmannGroup’sfinancialstabilityandflexibilitybysecuringitscapitalbaseinthelongterm.Inmanaging itscapital, theGroupalsoaims toachieveanappropriate returnonequityandtoallowitsshareholderstoparticipateintheGroup’ssuccess.TheGroup’smanagedcapitalconsistsoffinancialliabilities,cashandcashequivalentsandequity.
FielmannAktiengesellschaftandthejointstockcompaniesincludedinthefinancialaccountsaresubjecttotheminimumcapitalrequirementsofGermanlegislationgover-ningpublicandprivatelimitedcompaniesaswellasthecorrespondingprovisionsofstatelawandthelegalform.Therearenoothersector-specificminimumcapitalrequirements.
TheliquidityoftheFielmannGroupispooled,checkedandmanagedcentrallyonadailybasis.Bothdailyandmonthlyreportingsystemshavebeeninstalledforthispurpose.ThissystemguaranteestheGroup’scompliancewithallminimumcapitalrequirements.
Asat31December2017,FielmannAktiengesellschaftheld3,072(previousyear:5,493)ownshareswithabookvalueofT¤220(previousyear:T¤357).TheFiel-mannshareswereacquiredwithinthemeaningofSection71Para.1No.2oftheGermanStockCorporationAct (AktG) in order to offer them to staff of FielmannAktiengesellschaftoritsaffiliatedcompaniesasemployeesharesortobeabletousethemaspartofshare-basedpayments.
Theamountshownrelatesexclusivelytothepremiumfromthe1994rightsissueunderSection272Para.2No.1oftheGermanCommercialCode(HGB).
Theprofitreservescontainnon-distributedprofitsforthefinancialyearandpreviousyears,theforeignexchangeequalisationitem,profitsandgainsongivingownsharestoemployeesinaccordancewithIFRS2andactuarialgainsandlossesfrompensionprovisionsaspartoftheapplicationofIAS19.
(14) Capital reserve
(15) Profit reserves
Annualreport201791
NOTES
ThebalancesheetprofitamountstoT¤155,400(previousyear:T¤151,200)andcomprisesnetincome(T¤172,853;previousyear:T¤171,218)plustheconsolidatedincomebroughtforward(T¤88;previousyear:T¤51)lessminorityshares(T¤5,226;previousyear:T¤4,910)andlesschangesinprofitreserves(T¤12,315;previousyear:T¤15,159).
Non-controllingshares includesharesofother shareholders incorporationsof theGroup.Thesharesofothershareholdersinpartnershipsareonlystatedifsharesinlossesarepresent.TheminorityinterestsinpositiveequitycapitalofpartnershipswerestatedasliabilitiesinaccordancewithIAS32(seealsoNotes(22),(25)and(41)).
Non-currentaccrualsdevelopedasfollows:
Position as at
1.1.2017 ¤ ‘000
Foreign exchange
conversion ¤ ‘000
Consump-tion
¤ ‘000
Write-backs
¤ ‘000
Allocation
¤ ‘000
Position as at
31. 12. 2017 ¤ ‘000
Pensionaccruals 7,806 –192 –62 224 7,776Accrualsforanniversarybonuses 6,999 –78 –772 –402 1,386 7,133Reconversionobligations
2,432 –33 –15 699 3,083Accrualsformerchandise
4,807 –3,559 3,392 4,640Othernon-currentaccruals
1,281 –381 –43 287 1,14423,325 –78 –4,937 –522 5,988 23,776
Pensionaccrualsmainlyinvolvethenon-forfeitablepensioncommitmentsofFiel-mannAktiengesellschaftandonlyrelatetotheGermanysegment(T¤6,766;previousyear:T¤6,859).
The accruals are matched by reinsurance credits of T¤ 420 (previous year:T¤575),whicharenettedoffagainstpensionaccrualsofT¤280(previousyear:T¤330).ThechangeintheaccrualsincludestheadditionofinterestintheamountofT¤132(previousyear:T¤169).After2017,pensionaccrualsofFielmannAktienge-sellschaftwillmost likelyberealisedover thesubsequent15years in linewith thestatisticalmortalitytable.
(16) Balance sheet profit
(17) Non-controlling
interests
(18) Non-current accruals
92 Annualreport2017
NOTES
Thekeyassumptionsonwhichtheactuarialvaluationhasbeenbasedare:
2017in %
2016in %
Discountrate 1.58 1.65
Anticipatedincreaseinincome 0.00 2.00
Anticipatedincreaseinpensions 2.00 2.00
Asensitivityanalysiswascarriedoutinrespectofthediscountrate.Loweringthediscountratebyonepercentagepointwouldresultinthepresentvalueofthedefinedbenefitobligation increasingbyT¤1,324,while raising thediscount ratebyonepercentagepointwouldlowerthepresentvaluebyT¤1,062.ThevaluesshownonlyresultedinasubordinatedriskfrompensioncommitmentsandreinsurancecreditsfortheGroup.
Thechangeinthepresentvalueofthedefinedbenefitobligationwasasfollows:
2017¤ ‘000
2016¤ ‘000
Openingbalanceofthedefinedbenefitobligation 8,136 7,071
Currentservicecosts(reportedinpersonnelcosts) 16 212
Interestexpenses(reportedinfinancialresult) 132 169
Actuarialgainsandlosses(reportedinOCI) –36 728
Benefitspaid –192 –44
Closing balance of the defined benefit obligation 8,056 8,136
Thechangeinothercomprehensiveincome(OCI)mainlyresultedfromchangesininterestrates.IncometaxexpensesamountingtoT¤11areattributabletoactuarialgainsandlossespostedinothercomprehensiveincome(previousyear:taxincomeofT¤223).
Annualreport201793
NOTES
Breakdownoftheplans:
2017¤ ‘000
2016¤ ‘000
Definedbenefitobligations
–fromplanswhichwerepartlyorwhollyfinancedviaafund(reinsurance) 6,766 6,859
–fromplanswhichwerenotfinancedviaafund 1,290 1,277
Total 8,056 8,136
Anendowmentpolicyservesasreinsuranceforthedefinedbenefitobligation.Theamountshowninthebalancesheetonthebasisofthecompany’sobligation
fromdefinedbenefitplansisproducedasfollows:
2017¤ ‘000
2016¤ ‘000
Presentvalueofthedefinedbenefitobligation 8,056 8,136
Fairvalueofplanassets –280 –330
Accruals stated in the balance sheet 7,776 7,806
Accrualsforanniversarybonusesareallocatedfor10-to35-yearanniversariestakingactualratesoffluctuationfromthepastintoaccount.Discountingisperformedwiththeappropriateinterestratefortheperiodoftheaverageremainingtermuntiltheanniversaryconcerned.Theseaccrualswillprobablyberealisedduringthenext12monthstothevalueofT¤822(previousyear:T¤671).ThechangeinthediscountratetriggeredbyeventsonthecapitalmarketduringthereportingyearresultsinanincreaseintheaccrualbyT¤38(previousyear:increaseofT¤246).TheincreaseinthediscountedamountcausedbythepassageoftimeamountstoT¤63(previousyear:T¤86).
94 Annualreport2017
NOTES
The following interest rates were used in accordance with the current marketsituation:
10-yearanniversaries: 0.32%(previousyear:0.20%)25-yearanniversaries: 1.58%(previousyear:1.42%)35-yearanniversaries: 1.86%(previousyear:1.75%)Thereconversionobligationsundertenancyagreementsaretobeviewedaslong
term.Norisksarediscernibleduringthecoming12months. Inthemajorityof thetenancyagreementsthecompaniesoftheFielmannGrouparepresentedwithoneormoreoptionstoextendthetenancyperiod.Aninterestrateof1.72%(11years)wasappliedwhendiscountingthesettlementamountsestablishedonthereportingdate(previousyear:1.83%(12years)).Aninflationrateof0.4%wastakenintoaccount(previousyear:0.4%).Thediscountedsettlementamountsarecapitalisedintheacqui-sitioncostsoftenants’fittingswithfixedassets.Theyaresubjectedtoscheduleddepre-ciationovertheremainingtermofthetenancyagreement.Thecapitalmarket-relatedchangetothediscountrateinthereportingyearhasledtoanincreaseintheaccrualofT¤22(previousyear:increaseintheaccrualofT¤180).
Theaccrualsrelatingtomerchandiserefer torisksunderguaranteesandotherresultingrisks.Inadditiontocostofmaterials,theseincludepersonnelcostsforsev-erancepayments.Therisksare largelyrealisedwithin twelvemonthsandwithinamaximumofthreeyears.ThecurrentportionofrisksunderguaranteesisshownundercurrentaccrualsinNote(21).Theassumptionsregardingtheassessmentofrisksareconstantlyverifiedbyreportsonguaranteecases.Aninflationrateof0.4%wastakenintoaccountwhencalculatingthesettlementamounts(previousyear:0.4%).Theinter-estratesusedfordiscountingwere0.08%fortwoyears(previousyear:0.22%)and0.31%forthreeyears(previousyear:0.36%).ThechangesininterestratesresultedinanincreaseinaccrualsofT¤12(previousyear:increaseintheaccrualsofT¤40).
Changesininterestratesresultedinchangestoothernon-currentaccrualsofT¤66(previousyear:T¤68).
Annualreport201795
NOTES
Non-currentfinancialliabilitiesarebrokendownasfollows:
31.12.2017¤ ‘000
31.12.2016¤ ‘000
Non-currentliabilitiestofinancialinstitutions838 755
–ofwhichwitharesidualtermofmorethan5yearsT¤501(previousyear:T¤554)
Othernon-currentliabilities 1,020 850–ofwhichwitharesidualtermofmorethan5yearsT¤239(previousyear:T¤13)
1,858 1,605
Allnon-currentliabilitiestobankscarryafixedrateofinterestandareforafixedterm.Nosignificantinterestrateriskisdiscerniblebecauseborrowingislow.
DeferredtaxliabilitiescarriedasliabilitiesstandatT¤9,463(previousyear:T¤8,430).MoreinformationisprovidedinNote(39)oftheNotestotheaccounts.
Currentaccrualshavedevelopedasfollows:
Position as at
1.1.2017¤ ‘000
Foreign exchange
conversion ¤ ‘000
Consumption
¤ ‘000
Writebacks
¤ ‘000
Allocation
¤ ‘000
Position as at
31.12.2017¤ ‘000
Personnelaccruals 30,807 –29,957 –850 31,498 31,498
Accrualsformerchandise 6,593 –87 –3,591 3,396 6,311
Otheraccruals 4,095 –3,060 –562 4,546 5,019
41,495 –87 –36,608 –1,412 39,440 42,828
Theaccrualsrelatingtopersonnelaresetupinparticularforliabilitiesinrespectofspecialpaymentsandbonuses.Thecashoutflowtakesplaceduringthefirsthalfofthefollowingfinancialyear.
Theaccrualsrelatingtomerchandiserefertorisksunderguarantees,whicharelikelytoberealisedinthenexttwelvemonths.Thenon-currentportionofrisksunderguaranteesisshowninNote(18).Inthefirstyear,over50%oftheguaranteecasesexpectedintotalwillbesettled.
Theotheraccrualsrelatetothecostsoflegalandcommercialadviceandaudit-ing,inparticular.
(19) Non-current
financial liabilities (25)
(20) Deferred tax liabilities
(21) Current accruals
(25)SeeNote(25)forfurtherdetails
96 Annualreport2017
NOTES
Owingtothelowrateofdebt,therearenosignificanteffectsontheGroupthroughfluctuationsininterestrates.Theseliabilitieshaveatermofuptooneyear.
Includedinotherfinancialliabilitiesareliabilitiestonon-controllingshareholdersamountingtoT¤2,919(previousyear:T¤2,701),whichhavethenatureofequityintheindividualcompanyaccountsaccordingtolocallawandaretobereportedasliabilitiesinaccordancewithIAS32(seealsoNotes(17),(25)and(41)).
Non-financial liabilities includeprepaid incomeand liabilities from social securitycontributionsaswellassales,wageandchurchtaxes.
Income tax debts essentially relate to corporation taxes (especially for FielmannAktiengesellschaftanddistributioncompaniesinSwitzerland)andtradetaxes.
All categories of financial instruments are reportedat their value on thedate therespective transaction is completed. Allocation into measurement categories inaccordancewithIFRS7waseffectedonthebasisoftheeconomicpropertiesandtheriskstructureoftherespectivefinancialinstruments.Ineachcategory,thecurrentvalueisdeterminedbystockmarketpricesand/orotherdataavailableinthefinancialmarket.In-housevaluationproceduresorproceduresthatarenotbasedonobserv-ablemarketdatawerenotused.Asa result, therewerenomaterialuncertaintiesindetermining thefairvalueof the financial instrument.Securitiesheldfor tradingpurposesandfinancialassetsatfairvaluethroughprofitandlosswereclassifiedinthecorrespondingcategory.
Themaximumdefaultriskforthefinancialassetscorrespondstotheirbookvalues.Fromthecompany’sperspective,financialassetsthatareneitherpastduenorimpaireddonotposeanysignificantrisksinallthecategories.
TheGrouphasnotpreparedananalysisofthedatesonwhichmaterialfinancialliabilitiesareduesincesufficientliquidfundsarepermanentlyavailableandthereisthereforenoliquidityrisk.
Market risks forfinancial instruments in theFielmannGroup includepriceandinterestraterisksforanycapitalinvestments,especiallycurrencyrisks.
(22) Current financial liabilities,
trade creditors and other
financial liabilities(25)
(23) Non-financial liabilities
(24) Income tax liabilities
(25) Financial Instruments
(25)SeeNote(25)forfurtherdetails
Annualreport201797
NOTES
Currency risks Asaresultofitsinternationaloperations,theFielmannGroupisexposedtoforeignexchangerisks.Financial instrumentsareconvertedtoeurosattheexchangerateofthebalancesheetdateinaccordancewithIAS21.Anyforeignexchangedifferencesarepostedtoaseparateforeignexchangeequalisationitemincludedunderprofitreserves.Additionalcurrencyrisksareduetotheconversionofexistingfinancial instruments,especiallycreditbalanceswithbanks,capital invest-ments,intra-groupreceivablesandliabilitiesaswellasprocurement liabilities.TheforeigncurrenciesthatarerelevantfortheFielmannGrouparelistedunder“foreignexchange conversion” in Section III “Key accounting and valuation principles”. Inparticular, theFielmannGroup isexposed to risk through theSwiss francand theUSdollar.Inthecourseofasensitivityanalysis,theimpactonthevaluationoffinancialinstru-mentsinthecurrenciesofSwissfrancandUSdollarisascertainedonthebasisofareasonablypossibleappreciation(depreciation)of10%ofthosecurrenciesagainsttheeuroasat31December2017(previousyear:10%).Thisanalysisassumesthatallothervariablesremainconstant.IftheSwissfrancappreciatedagainsttheeuroby10%,thevaluationofFielmann’sfinancialassets(¤83.3million,previousyear:¤90.3million)andfinancialliabilitiestotalling¤9.6million(previousyear:¤5.5million)wouldseeanincreaseinequityof¤6.1million(previousyear:¤5.2million)aswellasanincreasednetprofitfortheyearof¤1.3million(previousyear:increaseof¤0.4million).ThedepreciationoftheSwissfrancagainsttheeuroby10%wouldhavetheoppositeeffectonequityandnetincomefortheyear.Inparticular,thesignificantchangeinequityisduetotheconversionoffinancialinstrumentsthatexistintheSwisscompanies.Considering the valuationof financialassetsamounting to¤1.1million (previousyear:¤20.6million)andfinancialliabilitiestotalling¤2.3million(previousyear:¤3.0million),anappreciationoftheUSdollaragainsttheeuroby10%wouldleadtoadecreaseinequityof¤0.1million(previousyear: increaseof¤1.4million)andalowernetprofitfortheyearof¤0.1million(previousyear:increaseof¤1.4million).ThedepreciationoftheUSdollaragainsttheeuroby10%wouldhavetheoppositeeffectonequityandnetincomefortheyear.
98 Annualreport2017
NOTES
Interest rate risks Thecapital investmentsof theFielmannGroup includecallmoneyandfixed-termdepositsaswellasfixedinterestsecuritiesandbondedloans.Asthesecapitalinvestmentsarepredominantlyfixedinterestandtobeheldtomatu-rity,thereisnosignificantinterestrateriskfortheGroup.Owingtothelowlevelofdebtandadditional financial assets, thereare nomaterial interest rate risks fromfinancialliabilities.
Price risks TheFielmannGroupisaboveallexposedtopriceriskthroughcapitalinvestmentsinsharesandsimilarinvestments.Asensitivityanalysisiscarriedouttoassesstheimpactofareasonablypossibleincrease(reduction)inthesharepriceby10%asagainstthepriceon31December2017(previousyear:10%).Thisanalysisassumesthatallothervariablesremainconstantandthattheholdingasatthebalancesheetdateisrepresentativefortheyearasawhole.
Ariseinthepricelevelby10%wouldleadtoanincreaseinequityamountingto¤0.5million(previousyear:increaseof¤0.4million)andraisenetprofitfortheyearby¤0.5million(previousyear:increaseof¤0.4million).Areductioninthesharepriceby10%wouldhavethecorrespondingoppositeeffectonequityandnetincomefortheyear.
MoredetailedexplanationsoftheindividualfinancialrisksarecontainedintheManagementReport.
Annualreport201799
NOTES
Abbreviation Full title Measurement
LaR LoansandReceivables Atamortizedcost
FAHfT FinancialAssetsHeldforTrading Marketvaluethroughprofitorloss
FVtPL FairValuethroughProfitorLoss Marketvaluethroughprofitorloss
FLAC FinancialLiabilitiesMeasuredatAmortisedCost
Atamortizedcost
Key for abbreviations in the measurement categories tables
100Annualreport2017
NOTES
in ¤ ‘000
Measurement category in accor-dance with IAS 39
Book value on 31.12.2017 Amortised cost
Market value through profit or
lossCurrent value on
31.12.2017Book value on
31.12.2016Amortised
cost
Market value through profit or
loss Current value on
31.12.2016
ASSETS Financial assets (non-current)
Loans LaR 2,706 2,706 1,313 1,313
2,706 2,706 1,313 1,313
Other financial assets (non-current)
Loans LaR 1,507 1,507 1,691 1,691Bondsandfixeddeposits LaR 56,175 56,175 85,064 85,064 Reinsurancepolicies LaR 140 140 245 245
57,822 57,822 87,000 87,000
Trade debtors Tradedebtors LaR 31,158 31,158 26,733 26,733 31,158 31,158 26,733 26,733
Other financial assets (current)
Otherreceivables LaR 30,019 30,019 25,373 25,373 Otherreceivables FVtPL 21,791 21,791 21,043 21,043
51,810 51,810 46,416 46,416Financial assets (current)
Investmentmanagementcustodialaccounts FAHfT 8,729 8,729 8,460 8,460Funds FAHfT 11,263 11,263 10,254 10,254Bondsandfixeddeposits LaR 97,407 97,407 147,051 147,051
117,399 117,399 165,765 165,765Cash and cash equivalents
Bondsandfixeddeposits LaR 10,000 10,000 21,422 21,422Liquidfunds LaR 162,131 162,131 92,610 92,610
172,131 172,131 114,032 114,032Total assets
LaR 391,243 391,243 401,502 401,502FAHfT 19,992 19,992 18,714 18,714
FVtPL 21,791 21,791 21,043 21,043 433,026 433,026 441,259 441,259
LIABILITIES Financial liabilities (non-current)
Liabilitiestofinancialinstitutions FLAC 838 838 755 755Otherliabilities FLAC 303 303 295 295Loansreceived FLAC 717 717 555 555
1,858 1,858 1,605 1,605Financial liabilities (current)
Liabilitiestofinancialinstitutions FLAC 151 151 166 166 151 151 166 166
Trade creditors Tradecreditors FLAC 63,820 63,820 63,035 63,035
63,820 63,820 63,035 63,035Other financial liabilities
Otherliabilities FLAC 22,357 22,357 17,725 17,725Liabilitiesfromthirdparties’capitalinterests FLAC 2,919 2,919 2,701 2,701 25,276 25,276 20,426 20,426
Total liabilities
FLAC 91,105 91,105 85,232 85,232
91,105 91,105 85,232 85,232
Measurement categories in accordance with IFRS 7
Annualreport2017101
NOTES
in ¤ ‘000
Measurement category in accor-dance with IAS 39
Book value on 31.12.2017 Amortised cost
Market value through profit or
lossCurrent value on
31.12.2017Book value on
31.12.2016Amortised
cost
Market value through profit or
loss Current value on
31.12.2016
ASSETS Financial assets (non-current)
Loans LaR 2,706 2,706 1,313 1,313
2,706 2,706 1,313 1,313
Other financial assets (non-current)
Loans LaR 1,507 1,507 1,691 1,691Bondsandfixeddeposits LaR 56,175 56,175 85,064 85,064 Reinsurancepolicies LaR 140 140 245 245
57,822 57,822 87,000 87,000
Trade debtors Tradedebtors LaR 31,158 31,158 26,733 26,733 31,158 31,158 26,733 26,733
Other financial assets (current)
Otherreceivables LaR 30,019 30,019 25,373 25,373 Otherreceivables FVtPL 21,791 21,791 21,043 21,043
51,810 51,810 46,416 46,416Financial assets (current)
Investmentmanagementcustodialaccounts FAHfT 8,729 8,729 8,460 8,460Funds FAHfT 11,263 11,263 10,254 10,254Bondsandfixeddeposits LaR 97,407 97,407 147,051 147,051
117,399 117,399 165,765 165,765Cash and cash equivalents
Bondsandfixeddeposits LaR 10,000 10,000 21,422 21,422Liquidfunds LaR 162,131 162,131 92,610 92,610
172,131 172,131 114,032 114,032Total assets
LaR 391,243 391,243 401,502 401,502FAHfT 19,992 19,992 18,714 18,714
FVtPL 21,791 21,791 21,043 21,043 433,026 433,026 441,259 441,259
LIABILITIES Financial liabilities (non-current)
Liabilitiestofinancialinstitutions FLAC 838 838 755 755Otherliabilities FLAC 303 303 295 295Loansreceived FLAC 717 717 555 555
1,858 1,858 1,605 1,605Financial liabilities (current)
Liabilitiestofinancialinstitutions FLAC 151 151 166 166 151 151 166 166
Trade creditors Tradecreditors FLAC 63,820 63,820 63,035 63,035
63,820 63,820 63,035 63,035Other financial liabilities
Otherliabilities FLAC 22,357 22,357 17,725 17,725Liabilitiesfromthirdparties’capitalinterests FLAC 2,919 2,919 2,701 2,701 25,276 25,276 20,426 20,426
Total liabilities
FLAC 91,105 91,105 85,232 85,232
91,105 91,105 85,232 85,232
102Annualreport2017
NOTES
2017
Measurement categories in accordance with IAS 39
Profits from subsequent
measurement at fair value
¤ ‘000
Losses from subsequent
measurement at fair value1
¤ ‘000
Impairments2
¤ ‘000
Interest income
¤ ‘000
Total interest expenses
¤ ‘000
FinancialAssetsHeldforTrading FAHfT 962 108 176
FairValuethroughProfitorLoss FVtPL 338 133 388
LoansandReceivables LaR 11 634
FinancialLiabilitiesMeasuredatAmortisedCost FLAC 1,171
Reconciliation of financial result
Financialincomeandexpenseforbalancesheetitems,whicharenotfinancialinstruments 15 447
Incomeandexpensesonfinancialinstruments,whicharenotincludedintheinterestresult –1,300 –241 –11
Total 0 0 0 1,213 1,618
1IFRS7.20.(a),temporaryimpairments2IFRS7.20.(e),permanentimpairments,negativeamountsrepresentwrite-ups
Income according to measurement categories
Annualreport2017103
NOTES
2016
Measurement categories in accordance with IAS 39
Profits from subsequent
measurement at fair value
¤ ‘000
Losses from subsequent
measurement at fair value1
¤ ‘000
Impairments2
¤ ‘000
Interest income
¤ ‘000
Total interest expenses
¤ ‘000
FinancialAssetsHeldforTrading FAHfT 298 1,772 569
FairValuethroughProfitorLoss FVtPL 63 534
LoansandReceivables LaR 911 590
FinancialLiabilitiesMeasuredatAmortisedCost FLAC 1,189
Reconciliation of financial result
Financialincomeandexpenseforbalancesheetitems,whicharenotfinancialinstruments 607
Incomeandexpensesonfinancialinstruments,whicharenotincludedintheinterestresult –298 –1,835 –911
Total 0 0 0 1,693 1,796
104Annualreport2017
NOTES
Profitsandlossesfromthesubsequentvaluationoffinancialinstrumentsinthecatego-riesof“FinancialAssetsHeldforTrading”andat“FairValuethroughProfitorLoss”arethedifferencebetweenstockmarketpriceandbookvalue.Changestothefairvaluearetakenintoaccountinlinewiththestockmarketpriceandforimminentdefaultonreceivables.Interestisrecordedaccordingtotherelevantpayments,takingintoaccountdeferralsfortheperiod.
Impairmentexpensesforfinancialinstrumentswhicharenotincludedintheinter-estresultareshownunder“otheroperatingexpenses”andcorrespondingincomeislistedunder“otheroperatingincome”.
Interestincomeforfinancialassetsandfinancialliabilities,whicharenotmeas-uredatmarketvaluethroughprofitorloss,cometoT¤634(previousyear:T¤590).ThecorrespondinginterestexpensesamounttoT¤1,171(previousyear:T¤1,189).
Thevalueadjustmentsforfinancialinstrumentsareopenlydeductedinthecaseoftradereceivablesandotherreceivablesthroughseparateaccounts.Impairedreceiva-blesessentiallyrelatetoreceivablesfromindividualcustomers,whicharewrittenoffinfullthreemonthsaftertheyfallduetotakeaccountoftheriskoftheirbeingunrecover-able.TherearepastduebutnotyetimpairedreceivablesfromcustomersamountingtoT¤1,855(previousyear:T¤1,282).Inthecaseofnon-impairedreceivables,theGroup’sretailactivitiesmeanthat thereisnodefaultriskresultingfromafocusonindividualborrowers.Valueadjustmentsdevelopedasfollows:
2017 ¤ ‘000
2016 ¤ ‘000
Positionasat1January 3,206 2,295
Allocation 2,541 2,949
Consumption –1,335 –1,516
Writebacks –1,195 –522
Position as at 31 December 3,217 3,206
Bonds and fixed deposits The item forbondsandfixeddepositsamountingtoT¤163,582(previousyear:T¤253,537)comprisesbonds(T¤138,524;previ-ousyear: T¤198,589),abonded loan (T¤5,002;Previousyear: T¤5,001)callmoneyandfixed-termdeposits(T¤20,056;previousyear:T¤49,947).EachoftheaforementionedarereportedatamortizedcostandbrokendownaccordingtothetypicalmaturitiespursuanttoIAS1.Thecurrentvalueequalstherespectiveamountdueforrepayment.
Investment management custodial accounts The investmentmanagementcustodialaccounts reportedunderfinancialassets relate toacustodialaccountofFielmann SchweizAG,which ismanaged by an external custodian and containssharesandbondsintheamountofT¤8,729(previousyear:T¤8,460).Theinvest-
Annualreport2017105
NOTES
mentpolicyisbasedonawrittenstrategyagreedwiththecustodialaccountmanager.Thesecuritiesheldtherearereportedatcurrentvalue(stockmarketprice).Valuationgainsandlossesinthereportingperiodwerechargedtotheprofitandlossaccount.
Funds As at the reporting date, the funds totalling T¤ 9,962 (previous year:T¤10,254)compriseone fund inFielmannAktiengesellschaft that invests ineuro-denominatedcorporatebonds.Thisisreportedatcurrentvalue(stockmarketprice).Valuationgainsand losses in thereportingperiodwerecharged to theprofitandlossaccount.Inaddition,fundsarereportedforthefirsttimeintheItaliansubsidiarytotallingT¤1,301.ThefundsserveasleasesecuritiesinItalyandarepledgedforthispurpose.Thisisreportedatcurrentvalue(stockmarketprice).Valuationgainsinthereportingperiodwerechargedtotheprofitandlossaccount.
Other receivables Other receivables in the LaRcategory totallingT¤30,019mainly relate to receivablesdue fromsuppliers (previousyear:T¤25,373).Otherreceivables amounting to T¤ 21,791 are reported at fair value (previous year:T¤21,043).Atthetimeofrecognition,thesereceivablesweredesignatedasat“FairValuethroughProfitorLoss”.ThepositivedifferenceinvaluebetweenamortisedcostandmarketvaluewasT¤561(previousyear:T¤743).Thisisreportedatcurrentvalue(stockmarketprice).Thebookvalueisthemaximumdefaultriskforthisreceivable.Valuationgainsandlossesinthereportingperiodwerechargedtotheprofitandlossaccount.PleaseseeNote(8)forfurtherdetails.
Liquid funds ThereareliquidfundsofT¤162,131(previousyear:T¤92,610),ofwhichT¤159,652(previousyear:T¤90,329)arecreditbalanceswithbanks,wherethecurrentvalueequalstheamountondeposit.
Liabilities to financial institutions Therearenon-currentliabilitiestofinancialinstitutionsofT¤838,whicharesecuredbychargesoverlandorsimilarrightsastheywerelastyear(previousyear:T¤755).Thefairvaluesofliabilitiestofinancialinstitutionscorrespondtotherespectiverepaymentamounts.
Liabilities from third parties’ capital interests Other financial liabilitiesincludethirdparties’capitalinterestsamountingtoT¤2,919(previousyear:T¤2,701),whicharetobereportedasliabilitiesinaccordancewithIAS32(seealsoNotes(17),(22)and(41)).
Other liabilities Non-currentfinancialliabilitiescontainobligationsunderagree-mentsoncapital-buildingpayments(fixedinterestemployeeholdings)witharemain-ingtermofovertwelvemonths.Theseliabilitiesamount toT¤234(previousyear:T¤236).
106Annualreport2017
NOTES
In the financial year, the Fielmann Group assumed no guarantees for third partyliabilitiestobanks,aswasalreadythecaseinthepreviousyear.
Lessee TheFielmannGroupfunctionsasalesseeofvehicles,equipmentandpropertyunderoperatingleases.Theleasepaymentsarerecognisedasanexpense.
Atthereportingdate,aresidualliabilityofT¤1,986(previousyear:T¤2,141)existedintheFielmannGroupbasedonleasetransactionsforvehiclesandequipment,ofwhichT¤1,093hadaremainingtermofuptooneyear(previousyear:T¤273)andT¤893ofmorethanoneanduptofiveyears(previousyear:T¤1,868).TheleasepaymentsrelatingtothesetransactionsduringthereportingyearamountedtoT¤453(previousyear:T¤447).
Rentalpayments(essentiallyforbusinesspremises)wereasfollows:
2017¤ ‘000
2016¤ ‘000
Minimumleasepayments 72,515 69,859
Contingentpayments 1,592 1,263
Paymentsforsub-leases 496 589
74,603 71,711
Minimumleasepaymentsrelatetorentsexcludingutilitychargesandcontractu-allyagreedancillarycosts.Contingentpaymentsincludeadditionalpaymentsundersales-basedleaseagreements.
TheGrouppredominantlyconcludesleaseagreementsforafixedperiodoftenyearswithtworenewaloptions(fiveyearseach).Inadditiontofixedminimumleasepayments,someagreementsincludeindexed,sales-basedandgraduatedrent.Thenumberofagreementssubjecttosuchtermsin2017wasasfollows:
Number
Lease agreements with the following provisions
Rented Let
Indexedrent 762 154
Sales-basedrent 126 2
Graduatedrent 68 17
Fixedrent 435 90
(26) Contingent liabilities, other
financial liabilities and lease
agreements
Annualreport2017107
NOTES
Rentalcommitmentswereas follows,whereby the information regarding futurecommitmentsonlycoversthecontractualperiodoftheleaseagreementsduringwhichthesecannotbeterminated:
31.12.2017¤ ‘000
31.12.2016 ¤ ‘000
Upto1year 72,902 69,918
Between1yearand5years 210,255 249,203
Morethan5years 93,010 100,596
376,167 419,717
RentalincomeofT¤2,682isexpectedfromsub-leasesthatcannotbeterminated(previousyear:T¤3,615).
Lessor TheFielmannGroupalsofunctionsasalessorofpropertywithintheframe-work of operating lease agreements. Lease agreements for properties used relateexclusivelytorentforcommercialproperty,whereasthepresentationofpropertiesletincludesbothcommercialandresidentialspace.Nocontingentpaymentsunderleaseagreementswerereceivedinthefinancialyear2017.
Inthemain,standardcommercialleaseagreements(foratermoffivetotenyears)andunlimitedresidentialtenancyagreementsareused.RentalincomeinthefinancialyearamountedtoT¤3,606(previousyear:T¤3,402)
Expectedfutureincomeincludingthatfromsub-leasesisasfollows:
31.12.2017 ¤ ‘000
31.12.2016 ¤ ‘000
Upto1year 2,242 2,642
Between1yearand5years 4,201 8,333
Morethan5years 737 506
7,180 11,481
ofwhichincomefrompropertyheldasinvestment 2,355 5,792
AspartofthepreparationsfortheintroductionofIFRS16,thesystemssimulat-ingfinanceflowsinleasingcontractswereoptimised.Thisleadstoamendmentstoreceivablesandliabilitiesfromincurredliabilitiesfortheperiod“over5years”.Thecomparablefigures for theprevious yearhavebeenadapted (fromT¤31,108 toT¤100,596andfromT¤227toT¤506).
Asat31December2017,thepurchasecommitmentsforstoreopeningsamounttoT¤1,660(previousyear:T¤440),forreplacementinvestmentsinexistingstoresT¤4,690(previousyear:T¤4,600),forproductionfacilitiesatRathenowT¤110(previousyear:T¤40)andT¤780forIThardware(previousyear:T¤900).
108Annualreport2017
NOTES
Profit and loss account
TheprofitandlossaccountoftheFielmannGroupwascompiledinaccordancewiththeoverallcostofproductionmethod.
TheincomefromsalesoftheFielmannGroup(grossincludingsalestax)isattribut-ableasfollows:
2017 2016
Gross¤ ‘000
Net¤ ‘000
Gross¤ ‘000
Net¤ ‘000
Stores,Germany 1,269,981 1,085,185 1,226,292 1,046,971
FielmannAG,Germany 5,958 5,007 5,235 4,400
Stores,Switzerland 185,281 171,557 184,196 170,552
Stores,Austria 96,750 81,328 93,753 78,757
Othersales 47,842 42,897 41,051 36,499
Consolidated sales 1,605,812 1,385,974 1,550,527 1,337,179
Changesininventories 355 355 –707 –707
Total Group sales 1,606,167 1,386,329 1,549,820 1,336,472
Income from sales includes income from selling services and rental incomefromownpropertyofT¤5,234(previousyear:T¤4,841).Theretailsectorachie-ved net income from sales of ophthalmic optics of T¤ 1,301,643 (previous year:T¤1,262,747).
Otheroperating incomemainlycomprises incomefromsubletting leasedpropertyand from writing back accruals and value adjustments. The income from foreignexchangedifferencesisvaluedatT¤763(previousyear:T¤2,941).Theincreasedincomein thepreviousyearprincipally resulted from theconversionofUSdollarsandSwissfrancs.
Thecostofmaterialsmainlyrelatestoframes,lenses,contactlenses,cleaningandcare products as well as hearing aids and hearing aid accessories and alreadyincludesdiscounts,rebatesandothersimilaramountsthathavebeendeducted.
2017 ¤ ‘000
2016 ¤ ‘000
Wagesandsalaries 479,816 456,246
Socialsecuritycostsandpensioncontributions 88,917 83,609
568,733 539,855
ofwhichpensionschemecontributions 41,947 39,767
AspartofthestatutoryarrangementsinGermanyconcerningcapital-buildingpay-mentstoemployees,anofferismadetotheworkforceonceayeartoinvestthesebenefits in the formofFielmannshares.On11August2017,eachemployeewasoffered8sharesatapriceof¤71.05withanexerciseperiodfortheoptionsuntil
(27) Income from sales, including
changes in inventories
(28) Other operating income
(29) Cost of materials
(30) Personnel costs
Annualreport2017109
NOTES
10November2017(previousyear:eachoffered8shareson27September2016atpriceof¤72.07,tobeexerciseduntil7November2016).Thisofferwastakenupby7,021employees(previousyear:6,920employees).Asaresult,56,168shareswereissuedtoemployees(previousyear:55,360shares).Therewerenoopenofferstosubscribetosharesatthebalancesheetdate.Onthelastdayoftheexerciseperiod,theclosingmarketpricewas¤72,14(previousyear:¤60.09).
InaccordancewithIFRS2,thesumofT¤4,052wasstatedasexpenditureforcapital-building payments in the form of shares within the Group (previous year:T¤3,326).Pricegainsandbooklossesonthedisposalofthecompany’sownshareswereoffsetdirectlyagainstequity.
Inthepastfinancialyear,employeesinthestoresalsoreceivedatotalof48,743shares from a performance-related remuneration scheme within the meaning ofIFRS2(previousyear:46,115shares).ThetotalexpenditureinvolvedamountedtoT¤6,995(previousyear:T¤5,244).ThisschemeaimstorewardparticularelementsoftheFielmannphilosophy,suchascustomersatisfaction.
TheremunerationofManagementBoardmembersisdividedintofixedcompo-nents and variable components,whicharebasedon the result. The remunerationfurtherincludesapensionplaninthecaseofoneManagementBoardmember.ThepremiumforaGroupaccidentinsurancepolicyfortheManagementBoardmembersandapecuniarybenefitfortheuseofcompanycarsareattributedtothefixedremu-nerationprorata.ThevariablecomponentsarebasedontheFielmannGroup’snetincomefortheyear.Therearenoshareoptionprogrammesinplace.
ThecorporatephilosophyofcompletededicationtocustomerneedsisreflectedinthecontractsgoverningtheManagementBoardmembers’variableremuneration.Inprinciple,thebonusesaredividedintotwosubareas.BonusI(T1)isbasedsolelyonnetincomefortheyearwithaweightingof70%.
BonusII(T2)isaimedatpromotingthecompany’slong-termdevelopment.Thisbonus is calculatedon thebasisof customer satisfaction in conjunctionwithnetprofit for theyear,which isassessedbymeansofa targetsystemoveraperiodofthreeyears.Themulti-yearremunerationalsocontainsaperiodofservicecom-ponent forGünter Schmid,whichwaspaid in the reporting yearat theamountofT¤1,095(previousyear:T¤0).Inaddition,MrSchmidhasbeenpromisedapension,whichguaranteeshim40%ofhislastgrosssalaryonreachingretirementage.Underthesecontracts,theceilingfortotalvariableremunerationforGüntherFielmannandGünterSchmid is200%offixedremuneration (Bonus IandBonusII),whileforDrStefanThiesandGeorgAlexanderZeiss,itamountedto150%ofthefixedremunerationupto30June2016,andthen175%from1July2016.ForMarcFielmann,MichaelFerleyandDrBastianKörber,theceilingfortotalvariableremunerationamountsto150%.
Inthepastfinancialyear,totalremunerationoftheManagementBoardamountedtoT¤12,344(previousyear:T¤12,546),ofwhichT¤4,393isfixedremuneration(previousyear:T¤4,402)andT¤7,840isvariable(previousyearT¤8,040),whilethepensionexpensestotalledT¤111(previousyear:T¤104).Fortheperiodfrom1Julyto31December2017,amemberoftheManagementBoardwholeftthecom-panyreceivedapensionofT¤108(previousyear:T¤0).
110Annualreport2017
NOTES
Günther FielmannChief Executive Officer (CEO)
Date of entry: 1994 1
Marc FielmannMarketing
Date of entry: 2016
Allowances granted in ¤ ‘000
2016 2017 2017 (Min.)
2017 (Max.) 2
2016 2017 2017 (Min.)
2017 (Max.) 2
Fixedremuneration 1,625 1,625 1,625 1,625 442 442 442 442
Ancillarybenefits 47 47 47 47
Subtotal 1,672 1,672 1,672 1,672 442 442 442 442
Variableremuneration
One-year(T1) 2,275 2,275 3,250-T2 464 464 663-T2
Multi-year
Customersatisfaction(3years)(T2) 975 975 3,250-T1 199 199 663-T1
Periodofservice(3years) – – – – – – – –
Subtotal 3,250 3,250 0 3,250 663 663 0 663
Total 4,922 4,922 1,672 4,922 1,105 1,105 442 1,105
Pensionexpenses – – – – – – – –
Total remuneration 4,922 4,922 1,672 4,922 1,105 1,105 442 1,105
Michael FerleyMaterials Management
Date of entry: 01.07.2017
Dr. Bastian KörberSales
Date of entry: 2015
Allowances granted in ¤ ‘000
2016 2017 2017 (Min.)
2017 (Max.) 2
2016 2017 2017 (Min.)
2017 (Max.) 2
Fixedremuneration 221 221 221 520 520 520 520
Ancillarybenefits 9 9 9 1 9 9 9
Subtotal 0 230 230 230 521 529 529 529
Variableremuneration
One-year(T1) 232 331-T2 546 546 780-T2
Multi-year
Customersatisfaction(3years)(T2) 99 331-T1 234 234 780-T1
Periodofservice(3years) – – – – – – – –
Subtotal 0 331 0 331 780 780 0 780
Total 0 561 230 561 1,301 1,309 529 1,309
Pensionexpenses – – – – – – – –
Total remuneration 0 561 230 561 1,301 1,309 529 1,309
Annualreport2017111
NOTES
Günter SchmidMaterials Management
Date of entry: 1994¹, Departure 30.06.2017
Dr. Stefan ThiesControlling
Date of entry: 2007
Allowances granted in ¤ ‘000
2016 2017 2017 (Min.)
2017 (Max.) 2
2016 2017 2017 (Min.)
2017 (Max.) 2
Fixedremuneration 585 293 293 293 552 585 585 585
Ancillarybenefits 42 21 21 21 16 16 16 16
Subtotal 627 314 314 314 568 601 601 601
Variableremuneration
One-year(T1) 819 410 585-T2 631 631 1,024-T2
Multi-year
Customersatisfaction(3years)(T2) 351 175 585-T1 271 270 1,024-T1
Periodofservice(3years) 373 429 – 429 – – – –
Subtotal 1,543 1,014 0 1,014 902 901 0 1,024
Total 2,170 1,328 314 1,328 1,470 1,502 601 1,625
Pensionexpenses 104 111 111 111 – – – –
Total remuneration 2,274 1,439 425 1,439 1,470 1,502 601 1,625
Georg Alexander ZeissFinance
Date of entry: 2004
Allowances granted in ¤ ‘000
2016 2017 2017 (Min.)
2017 (Max.) 2
Fixedremuneration 552 585 585 585
Ancillarybenefits 20 20 20 20
Subtotal 572 605 605 605
Variableremuneration
One-year(T1) 631 631 1,024-T2
Multi-year
Customersatisfaction(3years)(T2) 271 270 1,024-T1
Periodofservice(3years) – – – –
Subtotal 902 901 0 1,024
Total 1,474 1,506 605 1,629
Pensionexpenses – – – –
Total remuneration 1,474 1,506 605 1,629
1Previouslyhadcomparablefunctioninpredecessorcompany,FielmannVerwaltungKG2Themaximumlimitregulationincludesboththesingle-yearandmulti-yearvariableremunerationintotal.
112Annualreport2017
NOTES
Günther Fielmann Chief Executive Officer (CEO)
Date of entry: 1994 1
Marc FielmannMarketing
Date of entry: 2016
Michael FerleyMaterials Management
Date of entry: 01.07.2017
Inflow in ¤ ‘000 2016 2017 2016 2017 2016 2017
Fixedremuneration 1,625 1,625 442 442 221
Ancillarybenefits 47 47 9
Total 1,672 1,672 442 442 0 230
VariableremunerationOne-year(T1) 2,275 2,275 464
Multi-year
Customersatisfaction(3years)(T2) 975 975 199
Periodofservice(3years) – – – – – –
Total 3,250 3,250 0 663 0 0
Pensionexpenses – – – – – –
Total remuneration 4,922 4,922 442 1,105 0 230
Dr. Bastian KörberSales
Date of entry: 2015
Günter SchmidMaterials ManagementDate of entry: 1994¹,
Departure 30.06.2017
Dr. Stefan ThiesControlling
Date of entry: 2007
Inflow in ¤ ‘000 2016 2017 2016 2017 2016 2017
Fixedremuneration 520 520 585 293 552 585
Ancillarybenefits 1 9 42 21 16 16
Total 521 529 627 314 568 601
VariableremunerationOne-year(T1) 325 546 819 819 546 631
Multi-year
Customersatisfaction(3years)(T2) 140 234 351 351 234 271
Periodofservice(3years) – – – 1,095 – –
Total 465 780 1,170 2,265 780 902
Pensionexpenses – – 104 111 – –
Total remuneration 986 1,309 1,901 2,690 1,348 1,503
Georg Alexander ZeissFinance
Date of entry: 2004
Inflow in ¤ ‘000 2016 2017
Fixedremuneration 552 585
Ancillarybenefits 20 20
Total 572 605
VariableremunerationOne-year(T1) 546 631
Multi-year
Customersatisfaction(3years)(T2) 234 271
Periodofservice(3years) – –
Total 780 902
Pensionexpenses – –
Total remuneration 1,352 1,507
1Previouslyhadcomparablefunctioninpredecessorcompany,FielmannVerwaltungKG
Annualreport2017113
NOTES
2017¤ ‘000
2016¤ ‘000
Intangibleassets 5,322 3,891
Tangibleassetsincludinginvestmentproperty 36,950 36,101
42,272 39,992
Asinthepreviousyear,thefigurefordepreciationonintangibleassetsandtangibleassetsdoesnotincludeanyextraordinarywrite-downsinthereportingperiod.
Other operating expenses include administrative and organisational costs, advertis-ing,costofpremisesaswellasthecostsoftrainingandvoluntarysocialbenefits.TheexpensesarisingfromforeignexchangedifferencesisvaluedatT¤6,025(previousyear:T¤1,426).ThehighercostsprincipallyresultfromthecurrencyconversionofUSdollarsandSwissfrancs.Thisisoff-setbyincomefromforeignexchangedifferencesamountingtoT¤763(previousyear:T¤2,941)(seeNote(28)).
Thefinancialresultismadeupasfollows:
Expenses Income Balance
in ¤ ‘000 2017 2016 2017 2016 2017 2016
Resultfromcashandcapitalinvestments –283 –279 1,115 1,628 832 1,349
Resultfromon-balancesheetandothertransactionsnotrelatingtofinancialassets –1,335 –1,517 98 65 –1,237 –1,452
Financial result –1,618 –1,796 1,213 1,693 –405 –103
Thechangesintheresultfromon-balancesheetandothertransactionsnotrelatingtofinancialassetsaredueto,amongotherthings,interestrateeffectsofcompoundingnon-currentaccruals.
ThisincludestradetaxandcorporationtaxaswellastheequivalentnationaltaxesoftheconsolidatedcompaniestothevalueofT¤77,860(previousyear:T¤68,129),ofwhichtaxexpensesofT¤3,846isattributabletotaxesnotapplyingtothatreport-ingperiod(previousyear:taxexpensesofT¤403).ThisismainlyaresultofthetaxauditofFielmannAktiengesellschaftfortheyears2014and2015,theimpactofwhichwasalsorecordedin2017fortheyears2016and2017.
The income tax-relatedexpenditureof individualGroup companiesdecreasedbyT¤382throughtheuseoflosscarry-forwards(previousyear:T¤262).ThisitemincludesthedeferredtaxincomeintheGroupofT¤2,070(previousyear:deferredtaxexpenditureofT¤2,131).MoredetailscanbefoundinNote(39)oftheNotestotheaccounts.
(32) Other operating
expenses
(33) Financial result
(34) Taxes on income
and earnings
(31) Depreciation
114Annualreport2017
NOTES
Earningspersharedevelopedasfollows:
2017¤ ‘000
2016¤ ‘000
Netprofitfortheyear 172,853 171,218
Incomeattributabletoothershareholders –5,226 –4,910
Profits to be allocated to parent company shareholders
167,627
166,308
Numberofshares(‘000)Units 83,997 83,995
Earnings per share in ¤ (diluted/basic) 2,00
1,98
Therewasnodilutionofearnings.
Non-controllingshareholdersaccountforT¤5,504(previousyear:T¤5,177)oftheprofitsandT¤278(previousyear:T¤267)ofthelosses.Minorityinterestsinthenetprofitfortheyearandcorrespondingdistributionsareatthediscretionofthesharehold-ers.Forthisreason,theyarestatedopenlyintheprofitandlossaccountandinthemovementinGroupequity.Asinthepreviousyear,nowithdrawalsweremadefromprofitreservesduringthefinancialyear.
ThisitemreferstoatransfertootherprofitreservesoftheGroup(T¤12,315;previousyear:T¤15,159).
ThedeferredtaxassetsonlossesbroughtforwardincreasedbyT¤1,685inthereport-ingperiod throughcorrespondingnetannual resultsor earnings forecasts (previousyear:decreaseofT¤15).
Of the deferred tax assets on losses brought forward, a total of T¤2,434 isattributabletocompaniesthatarecurrentlymakinglosses(previousyear:T¤643).The figure was reported on the basis of positive earnings forecasts, which are aresultoftheunderlyingtaxplanningandarealsosupportedbytheseunits’positiveimpairmenttests.
No deferred tax assets were stated for loss carry-forwards in the amount ofT¤8,907becauseutilisationisnotexpected(previousyear:T¤6,833).Thisfiguredoesnotincludeanylosscarry-forwardswhichareexpectedtolapsebecauseofthepassageoftime.
Deferred tax assets on temporary differences from company balance sheets,contributionprocessesintheGroupandeliminationofintra-Groupprofitsarealsoincluded.RealisationofdeferredtaxassetsduringthecomingtwelvemonthsislikelytoamounttoT¤9,451(previousyear:T¤8,357),whilerealisationofdeferredtaxliabilitieswillprobablyamounttoT¤4,134(previousyear:T¤2,781).
(35) Net profit for the year
and earnings per share
(36) Income attributable to
non-controlling shareholders
(37) Withdrawals from
profit reserves
(38) Transfers to profit
reserves
(39) Deferred taxes
Annualreport2017115
NOTES
Deferredtaxesareconstitutedasfollows:
31.12.2017 31.12.2016
Deferred taxes
¤ ‘000Asset
¤ ‘000Liability
¤ ‘000Asset
¤ ‘000Liability
a)ondeductibledifferences –fromcompanyaccounts 2,825 3,063 2,475 2,383–fromHGBII 11,081 12,138 10,421 12,239–fromconsolidation 2,784 993 2,530 1,052
b)onlosscarryforwards 2,727 1,042 19,417 16,194 16,468 15,674
Reconciliation to balance sheet value NettingeffectinaccordancewithIAS12.71ff –6,731 –6,731 –7,244 –7,244Deferred tax assets and liabilities according to the balance sheet 12,686 9,463 9,224 8,430
Thedeferredtaxesareaddedtotheindividualbalancesheetitems:
31.12.2017 31.12.2016
¤ ‘000Asset
¤ ‘000Liability
¤ ‘000Asset
¤ ‘000Liability
Intangibleassets 2,623 8,069 2,135 7,169Tangibleassets 2,029 262 1,832 266Financialassets 19 289 256 268Inventories 8,240 2,551 7,702 2,774Non-financialassets 2,286 2,384Accruals 3,158 1,264 3,286 1,219OutsideBasisDifferences 604 651Losscarryforwards 2,727 1,042 Specialreserves 869 909Other 621 215 34
19,417 16,194 16,468 15,674
Reconciliation to balance sheet value NettingeffectinaccordancewithIAS12.71ff. –6,731 –6,731 –7,244 –7,244Deferred tax assets and liabilities according to the balance sheet 12,686 9,463 9,224 8,430
116Annualreport2017
NOTES
Thetaxreconciliationisasfollows:
Tax reconciliation statement pursuant to IAS 122017
¤ ‘0002016
¤ ‘000
Earnings before taxes 248,643 241,478
Applicabletaxrate,inpercent 30,7 30,7
Expected tax expenditure 76,333 74,134
Deviationsintaxrates
Impactofforeigntaxratedifferences –4,261 –4,660
Impactofdeviationsinthetaxcalculationmethod
Thirdpartyshareofprofitexemptfromcorporationtax –858 –816
Taxesonnon-deductibleexpenditure 917 536
Othertax-freeearnings –99 –107
Tradetax-freeallowancesandothertaxadjustments 251 334
Non-periodiceffects 3,456 816
Other 51 23
Total Group tax expenditure 75,790 70,260
Theparametersforcalculatingtheexpectedtaxrateof30.7%in2017areanaveragetradetax(14.9%fromanaveragecollectionrateof425%)andcorpora-tiontaxincludingthesolidaritysurcharge(15.8%).Theparametersareunchangedcomparedwith2016.
IAS12stipulatesthatdeferredtaxesmustbecreatedonthedifferencebetweentheproratanetassetsofasubsidiaryrecordedintheconsolidatedbalancesheetandtheinvestmentbookvalueofthissubsidiaryintheparentcompany’staxbalancesheet(outsidebasisdifferences)ifrealisationisexpectedwithintwelvemonths.Withacalculationmethodof5%(Section8boftheGermanCorporationTaxAct(KStG)),therearedeferredtaxesofT¤604(previousyear:T¤651)onplanneddistributionsbysubsidiariesofT¤39,363(previousyear:T¤42,436).
Incidentally, thereareadditionaloutsidebasisdifferencesofT¤4,485on thebalancesheetdate(previousyear:T¤4,875).Realisationisnotexpectedwithintheforeseeablefuture,meaningthatrecognitionofadeferredtaxliabilityinaccordancewithIAS12.39isnotpossible.
DeferredtaxincomeofT¤11relatingtoothercomprehensiveincomewasentirelyattributabletoactuarialgainsandlossesfrompensionprovisionspursuanttoIAS19(previousyear:deferredtaxexpenditureofT¤223).
(40) Statement of the
overall result
Annualreport2017117
NOTES
Own shares amounting to T¤ 220 were deducted from equity (previous year:T¤ 357). From the Group equity generated, Fielmann Aktiengesellschaft’s profitreservesamounting toT¤232.755 (previousyear: T¤209,376)and thebalancesheetprofitofT¤155,400(previousyear:T¤151,200)areavailablefordistributiontoshareholders.Onthebalancesheetdate,theGroupequitygeneratedissubjecttoarestrictionondistributionamountingtoT¤7,124(previousyear:T¤5,331).Asinthepreviousyear,thiswasattributabletosoftwarecreatedin-houseandcapitalisedintheseparatefinancialstatementsofFielmannAktiengesellschaft(T¤6,511,previousyear:T¤4,813).Inaddition,thedifferencefromthevaluationofthepensionobliga-tionswithanactuarialinterestrateof10yearsinsteadof7issubjecttoarestrictionondistribution (T¤613,previousyear:T¤519).Onceagain, the freelyavailablereservesexceedthisamountinthereportingyear.
The distributions during the financial year of T¤ 151,112 (previous year:T¤146,949)(excludingthedividendforownshares)werebasedonadividendof¤1.80pershare(previousyear:¤1.75pershare).
Thechanges toconsolidatedequity from the restof the resultweredue to theforeignexchangeequalisationitemaswellasduetoactuarialgainsandlossesfrompension provisions pursuant to IAS 19. The valuation results in total deferred taxexpenditureamountingtoT¤685(previousyear:T¤696).
InaccordancewithIAS32,theminorityinterestsintheequitycapitalarestatedasliabilitiesifrelatingtopositiveminorityinterestsinpartnerships.Minorityinterestsinthenetprofitfortheyearandcorrespondingdistributionsareatthediscretionoftheshareholders.Forthisreason,theyarestatedopenlyintheprofitandlossaccountandinthemovementinequitycapital(seeNotes(17),(22)and(25)).
Thecashandcashequivalents statedatT¤172,131(previousyear:T¤114,032)compriseliquidfunds(T¤162,131;previousyear:T¤92,610)andcapitalinvestments(T¤10,000;previousyear:T¤21,422).Thesearetakenintoaccountinthecashandcashequivalents,providedtheyhavearemainingtermofuptothreemonths.
Themostsignificantitemrecognisedunderothernon-cashincomeandexpensesisexpenditure fromwrite-downsofreceivables in theamountofT¤344(previousyear: T¤994). Thereare limitations on thedisposal of liquid funds amounting toT¤7becauseoftherestrictionsimposedbythenon-profit-makingcharacterofFiel-mannAkademieSchlossPlön,gemeinnützigeBildungsstättederAugenoptikGmbH(previousyear:T¤6).
(41) Movement in
Group equity
(42) Cash flow statement
for the Fielmann Group
118Annualreport2017
NOTES
Thefollowingreconciliationisprovidedtoincreasetransparencyforthecapitalmarketandmanagementwithregardtotheextenttowhichthecashflowthatrelatestocurrentbusinessactivitiesisimpactedbyswitchingfinancialassetsfromcashandcashequivalentstootheritems:
31.12.2017 ¤ ‘000
31.12.2016 ¤ ‘000
Change
= Cash flow before increase/decrease in financial assets held for trading or to maturity 221,734 216,255 5,479
–/+Increase/decreaseinfinancialassetsheldfortradingortomaturity 65,407 2,902 62,505
= Cash flow from operating activities 287,141 219,157 67,984
Thecompositionoffinancialassetsisasfollows:
31.12.2017
¤ ‘00031.12.2016
¤ ‘000Change
Liquidfunds 162,131 92,610 69,521
Capitalinvestmentswithaspecificmaturityofupto3months 10,000 21,422 –11,422
Cash and cash equivalents 172,131 114,032 58,099
Non-currentfinancialassets 2,706 1,313 1,393
Othernon-currentfinancialassets 57,822 87,000 –29,178
Capitalinvestmentswithaspecificmaturityofmorethan3months 117,399 165,765 –48,366
Financial assets 350,058 368,110 –18,052
Formore detailed explanations regarding the individual items of the financialassets,pleaserefertoNote(25).
ThechangetotheliabilitiesfromFinancingActivitiesisasfollows:
31.12.2016
¤ ‘000
Cash flows
¤ ‘000
Non-cash changes
¤ ‘000
31.12.2017
¤ ‘000
Non-currentfinancialliabilities 1,605 246 7 1,858
Currentfinanciallia-bilities 166 –8 –7 151
Financial liabilities 1,771 238 0 2,009
Thenon-cashchangesarenotpresentedindetailduetothelowfigureforthisitem.
Annualreport2017119
NOTES
Inaccordancewiththeregionalstructureoftheinternalreportingsystem,SegmentReportingdistinguishesbetweenthegeographicregionsinwhichtheGroupoffersanddeliversproductsandservices.InadditiontothesegmentsofGermany,SwitzerlandandAustria,theregionsofEasternEurope,Italy,Luxembourg,theNetherlandsandPolandarecombinedinthesegment“Other”.TheGroup’sproductsandservicesdonotdifferbetweenthesegments.
Segmentrevenuesfromtransactionswithothersegmentsarenotvaluedseparatelysincethesearecommercialtransactionsonmarkettermsandconditions.
IncomeamountingtoT¤4,218correspondingtothenumberofactiveinsurancepolicieswasallocatedtothesegmentAustriaaspartoftheZero-CostInsurancepolicy(previousyear:T¤3,777).Forthepurposesofcommerciallaw,theseareallocatedtothesegmentGermany.
Inthereportingyearasinthepreviousyear,therewasnodepreciationrelatingtoimpairmentchargesforimpairmenttestingofanyCGU.
Thepre-taxresultsinthesegmentsareadjustedfortheresultsfromparticipations,whichareofminorsignificancefortheGroup.
Theallocationoflong-termsegmentassetstogeographicregionsisbasedonthecountryinwhichtherespectiveGroupcompanyislocatedandequatestothebalancesheettotalofnon-currentassetslessfinancialinstrumentsanddeferredtaxassets.
Owing to the complex internal relationships resulting from FielmannAktiengesellschaft’swholesalefunctionandthecashpoolingsystem,segmentassetsareshownwiththeirshareintheconsolidatedenterprisevalue.Notransitionalvalueisthereforederived.
InviewofthefactthattheoperatingsegmentscorrespondtotheGroupstructureundercompanylawandtheuseofincomefiguresinaccordancewithIFRS,thetran-sitionalvaluesonlyreflectintra-Groupnetting.
Retailsaleswerenotdividedintoproductgroupsbecauseopticalproductsrepre-sent94%ofthesalesinthatsegment.
Ataxaudithasledtoachangeinthetransferpricesystembetweenthenationalsubsidiaries.ThisaffectedtheresultinthesegmentsofAustria,ataroundT¤1,100andSwitzerland,ataroundT¤2,360.For2018,weanticipateareductionofapproxT¤2,250intheAustriasegmentandapprox.T¤5,100intheSwitzerlandsegment.ThiscontrastswithcorrespondingincomeinthefinancialyearandthefollowingyearintheGermanysegment.
(43) Segment Reporting
120Annualreport2017
NOTES
V. Information on related parties (IAS 24)
AsChairmanofFielmannAktiengesellschaft,GüntherFielmannisdeemedtobearelatedpartybecauseheholds,eitherindirectlyordirectly,orcontrolsthemajorityofthesharesinFielmannAktiengesellschaftviaFielmannFamilienstiftung.AswellastheemolumentsforhisactivitiesasChairman(seeNote(30))andpaymentofdividendsfromthesharesheholds,nofurtherpaymentsweremadetoGüntherFielmannapartfromthoselistedbelow.
Inaddition,GüntherFielmannhasadirectorindirectinterestinorexercisescontroloverthefollowingcompanies,whichfromtheviewpointofFielmannAktiengesellschaftcanbeclassifiedasrelatedparties:
–KORVASE(TochtergesellschaftderFielmannFamilienstiftung)–FielmannINTER-OPTIKGmbH&Co.KG–MPAPharmaGmbH–HofLütjensee-HofladenGmbH&Co.oHG–GutSchierensee–VariouspropertymanagementcompaniesDuringthe2017financialyearandthepreviousyear,FielmannAktiengesellschaft
anditsGroupcompaniespurchasedandprovidedbothgoodsandservicesaswellas rentingand leasingoutpremises.PremisesusedbyGroupcompaniesessentiallyencompass24stores(previousyear:24stores).Thecorrespondingpurchaseandrentalagreementswereconcludedoncustomarymarketterms.Alltransactionsweresettledinthecontextofthenormalpaymentplans(normally30days).
ThetransactionslistedbelowaremainlyattributabletotheexchangeofgoodsandserviceswithFielmannAktiengesellschaft.
2017 2016
in ¤ ‘000Günther
FielmannRelated parties
Günther Fielmann
Related parties
Services Transactions 584 1,353Leases 155 3,071 106 2,987
155 3,655 106 4,340
2017 2016
in ¤ ‘000Günther
FielmannRelated parties
Günther Fielmann
Related parties
Services 693 212 742 163
Transactions 26 27
Leases 31 107 31 74
724 345 773 264
Transactions by Fielmann
Aktiengesellschaft and Group
companies with Günther Fielmann
and related parties
Transactions by Günther Fielmann
and related parties with
Fielmann Aktiengesellschaft
and Group companies
Annualreport2017121
NOTES
Auditor’s fees
2017 2016
Balances as at 31.12. in ¤ ‘000
Günther Fielmann
Related parties
Günther Fielmann
Related parties
Receivables 73 52 31
Liabilities 466 3 343
TheSupervisoryBoardandManagementBoardcontinue tobedeemed toberelatedparties.Totalemolumentsoftheemployeerepresentativesreceivedinconnec-tionwiththeemploymentrelationshipamountedtoT¤469(previousyear:T¤460).The remuneration of the Supervisory Board in the financial year totalled T¤ 880(previousyear:T¤844).TheremunerationoftheManagementBoardispresentedinNote30.
VI. Other information
Staff as at balance sheet date Average staff number for year
2017 2016 2017 2016
Employees(excludingtrainees) 15,105 14,683 14,933 14,498
ofwhom –EmployeesinGermany 12,379 12,075 12,251 11,916
–EmployeesinSwitzerland 1,183 1,170 1,169 1,167
–EmployeesinAustria 646 636 651 631
–Otheremployees 897 802 862 784
Trainees 3,417 3,190 3,220 3,051
Total employees 18,522 17,873 18,153 17,549
Employeescalculatedasfull-timeequivalent 13,496 13,130 13,262 12,910
The feescharged forauditingservices forfinancialyear2017amount toT¤195(previousyear:T¤262).AdditionalexpensesforotherservicesamountedtoT¤10(previousyear:noadditionalexpenses).TheGroupauditorsdidnotsupplytaxationadviceandotherassuranceservices.
The declaration of compliance required under Section 161 of the German StockCorporationAct(AktG)wasissuedbytheManagementandSupervisoryBoardsandispermanentlymadeavailable.Itcanbeaccessedontheinternetatwww.fielmann.com.TheremunerationreportisprintedintheManagementReport.
German Corporate
Governance Code
122Annualreport2017
NOTES
Supervisory Board
ShareholderRepresentatives
Employeerepresentatives
Management Board
Information on the bodies of the Company
GüntherFielmann ChiefExecutiveOfficer,CorporateStrategy;LütjenseeMichaelFerley MaterialsManagementandProduction,Potsdam, since1July2017MarcFielmann Marketing,HamburgDr.BastianKörber Sales,HamburgGünterSchmid MaterialsManagementandProduction,Kummerfeld,
until30June2017Dr.StefanThies IT,ControllingandHumanResources,HamburgGeorgAlexanderZeiss FinanceandProperties,Ahrensburg
Prof.Dr.MarkK.Binz Lawyer,Binz&Partner,Stuttgart ChairmanoftheSupervisoryBoard1,2,3
Hans-GeorgFrey ExecutiveOfficerofJungheinrichAG,Hamburg1,3
CarolinaMüller-Möhl President,Müller-MöhlGroup,Zurich,Switzerland
HansJoachimOltersdorf ManagingPartnerofMPAPharmaGmbH,Rellingen1
Marie-ChristineOstermann ManagingDirectorofRullkoGroßeinkaufGmbH&Co.KG, Hamm
PierPaoloRighi CEOandPresidentKarlLagerfeldInternationalB.V.,Amsterdam, Netherlands3
Hans-OttoSchrader ChairmanoftheSupervisoryBoard,OTTOAGfürBeteiligungen, Hamburg
JuliaWöhlke ManagingDirector,IwanBudnikowskyGmbH&Co.KG, Hamburg2
MathiasThürnau ChairmanoftheWorksCouncil,CommercialAssistantat FielmannAG,DeputyChairpersonoftheSupervisoryBoard, Hamburg1,2
HeikoDiekhöhner RegionalManagerofFielmannAG,HamburgJanaFurcht MasterOpticianatFielmannAG&Co.OHG,Munich2
RalfGreve ManagerDevelopmentCourseInstructoratFielmannAG, Hamburg1
FredHaselbach MasterOpticianatFielmannAG&Co.OHG,LübeckPetraOettle Optician’sAssistantatFielmannAG&Co.oHG,Ulm1
EvaSchleifenbaum Tradeunionsecretaryofver.di,BerlinFrankSchreckenberg Tradeunionsecretary,ver.di,Kiel
1MemberoftheHRCommittee2MemberoftheMediationCommittee3MemberoftheNominationCommittee
Annualreport2017123
NOTES
1Memberofstatutorilyrequiredsupervisoryboard2Memberofcomparabledomesticorinternationalsupervisorybodyofabusinessenterprise
These members of the
Supervisory Board are also
active in the following
Supervisory bodies
Prof.Dr.MarkK.Binz
DeputyChairmanoftheSupervisoryBoardofFaber-CastellAG,Stein1
MemberoftheSupervisoryBoardofSickAG,Waldkirch1
Hans-GeorgFrey MemberoftheAdvisorycouncilofHOYERGmbH,Hamburg2
CarolinaMüller-Möhl
MemberoftheAdvisoryBoardofOrascomDevelopmentHoldingAG,Altdorf, Switzerland2
MemberoftheAdvisoryBoardofNeueZürcherZeitung,Zurich,Switzerland2
HansJoachimOltersdorf
ChairmanoftheAdvisoryCouncilofParteGmbH,Cologne2
Hans-OttoSchraderChairmanoftheSupervisoryBoard,OttoAGfürBeteiligungen,Hamburg2
MemberoftheBoardofPartnersofOttoGmbH&CoKG,Hamburg2
MemberoftheSupervisoryBoardofthemanagementcompanyOttombH,Hamburg2
ChairmanoftheAdvisoryCouncilofSystainConsultingGmbH,Hamburg2
MemberoftheAdvisoryCouncilofDr.AugustOetkerKG,Bielefeld2
MemberoftheAdvisoryCouncilofAdolfWürthGmbH&Co.KG,Künzelsau2
MemberoftheExecutiveCommitteeofPfeifer&LangenIndustrie-undHandels-KG,Cologne2
JuliaWöhlke
MemberoftheSupervisoryBoardofHamburgerVolksbanke.G.,Hamburg2
MemberoftheSupervisoryBoardofHamburgerGesellschaftfürVermögens-undBeteiligungsmanagementmbH(HGV),Hamburg2
124Annualreport2017
NOTES
Management, holding and service companies Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
Production and trading companies Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
Fielmann Aktiengesellschaft, HamburgShareholdings and consolidated companies as at 31 December 2017 as well as anoverview of companies which make use of the exemption under Section 264 (3) of the HGB(German Commercial Code) and Section 264b of the HGB
BaurOptikGeschäftsführungs-AG Donauwörth 100CMStadtentwicklungGmbH&Co.KG Hamburg 51CMStadtentwicklungVerwaltungsGmbH Hamburg 51FielmannAugenoptikAG&Co.LuxemburgKG Hamburg 51FielmannAugenoptikAktiengesellschaft Hamburg 100FielmannBeteiligungsgesellschaftmbH Hamburg 100FielmannFinanzserviceGmbH Hamburg 100FielmannVenturesGmbH Hamburg 100FielmannVerwaltungs-undBeteiligungsGmbH Hamburg 100HIDHamburgerImmobiliendiensteGmbH Hamburg 100opt-investGmbH&Co.OHG2,3 Hamburg 100opt-InvestVerwaltungs-undBeteiligungsGmbH Hamburg 100ROKKUDesignstudioGmbH6 Hamburg 100
RAOptikaAG Kiev,Ukraine 100OptikHessGmbH Köln-Dellbrück 100FielmannLtd. London,
Großbritannien 100GrupoEmpresarialFielmannEspanaS.A. Madrid,Spanien 100OptikKlüttermannVerwaltungsGmbH Mönchengladbach 100FielmannHoldingB.V. Oldenzaal,
Niederlande 100FielmannAkademieSchlossPlön,gemeinnützigeBildungsstättederAugenoptikGmbH2 Plön 100FielmannSchlossPlönHotel-undCateringGmbH Plön 100BeteiligungsgesellschaftfielmannModebrillenRathenowGmbH Rathenow 100RathenowerOptischeWerkeGmbH Rathenow 100FielmannSchweizAG St.Gallen,Schweiz 100
FielmannAG&Co.amKugelbrunnenKG Aachen 100
FielmannAG&Co.OHG Aalen 100
FielmannAG&Co.OHG4 Achern 100
FielmannAG&Co.OHG(vormalsfielmann-opticFielmannGmbH&Co.OHG) Achim 100
FielmannAugenoptikAG&Co.OHG Ahaus 100
FielmannAG&Co.KG Ahlen 100
FielmannAG&Co.OHG Ahrensburg 100
FielmannAG&Co.OHG Albstadt-Ebingen 100
FielmannAG&Co.KG Alsfeld 100
FielmannAG&Co.KG Altenburg 100
FielmannAG&Co.KG Alzey 100
FielmannAugenoptikAG&Co.oHG Amberg 100
FielmannAG&Co.oHG Andernach 100
FielmannAG&Co.KG Annaberg-Buchholz 100
FielmannAG&Co.OHG Ansbach 100
FielmannAG&Co.KG Arnsberg-Neheim 100
FielmannAG&Co.KG Arnstadt 100
FielmannAG&Co.Kontaktlinsen-ServiceOHG Rathenow 100fielmannModebrillenRathenowAG&Co.KG Rathenow 100
RathenowerOptikGmbH3 Rathenow 100OTROberflächentechnikGmbH Rathenow 100
Annualreport2017125
NOTES
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
TheshareofthecapitalreferstodirectandindirectholdingsofFielmannAktiengesellschaft.ThedomesticsubsidiariesshowninthetablehavefulfilledtheconditionstomakeuseoftheexemptionunderSection264(3)oftheGermanCommercialCode(HGB)and264bHGBforpartnershipsandthereforedonotdisclosetheirannualaccountsdocumentation,includingtheManagementReport.
FielmannAG&Co.CityGalerieOHG Aschaffenburg 100
FielmannAG&Co.oHG Aschaffenburg 100
FielmannAG&Co.oHG Aschersleben 100
FielmannAG&Co.KG Aue 100
FielmannAG&Co.KG Auerbach/Vogtland 100
FielmannAG&Co.imCentrumOHG Augsburg 100
FielmannAG&Co.oHGCity-Galerie Augsburg 100
FielmannAugenoptikAG&Co.oHG Aurich 100
FielmannAG&Co.KG Backnang 100
FielmannAG&Co.OHG4 BadDürkheim 100
FielmannAG&Co.oHG BadHersfeld 100
FielmannAG&Co.oHG BadHomburg 100
FielmannAG&Co.KG BadKissingen 100
FielmannAG&Co.oHG BadKreuznach 100
FielmannAG&Co.KG BadMergentheim 100
FielmannAG&Co.oHG BadNeuenahr-Ahrweiler 100
FielmannAG&Co.OHG4 BadNeustadt/Saale 100
FielmannAG&Co.oHG BadOeynhausen 100
FielmannAG&Co.KG BadOldesloe 100
FielmannAG&Co.KG BadReichenhall 100
FielmannAG&Co.KG BadSalzuflen 100
FielmannAG&Co.KG BadSaulgau 100
FielmannAG&Co.OHG BadSegeberg 100
FielmannAG&Co.OHG BadTölz 100
FielmannAG&Co.OHG Baden-Baden 100
FielmannAG&Co.KG Balingen 100
FielmannAG&Co.OHG Bamberg 100
FielmannAG&Co.OHG Barsinghausen 100
FielmannAG Basel,Schweiz 100
Pro-optikAG Basel,Schweiz 100
FielmannAG&Co.OHG Bautzen 100
FielmannAG&Co.OHG Bayreuth 100
FielmannAG&Co.OHG Beckum 100
FielmannAG&Co.OHG Bensheim 100
FielmannAG&Co.oHG Bergheim 100
FielmannAG&Co.oHG BergischGladbach 100
FielmannAG&Co.Berlin-HellersdorfOHG Berlin 100
FielmannAG&Co.Berlin-ZehlendorfOHG Berlin 100
FielmannAG&Co.FriedrichshagenOHG Berlin 100
FielmannAG&Co.FriedrichshainOHG Berlin 100
FielmannAG&Co.Gesundbrunnen-CenterKG Berlin 100
FielmannAG&Co.GropiusPassagenOHG Berlin 100
FielmannAG&Co.imAlexaKG Berlin 100
FielmannAG&Co.KreuzbergKG Berlin 100
FielmannAG&Co.Linden-CenterKG Berlin 100
FielmannAG&Co.MärkischesZentrumKGBerlin 100
FielmannAG&Co.MarzahnOHG Berlin 100
FielmannAG&Co.MoabitKG Berlin 100
FielmannAG&Co.NeuköllnKG Berlin 100
FielmannAG&Co.oHGTegel Berlin 100
FielmannAG&Co.PankowOHG Berlin 100
FielmannAG&Co.PrenzlauerBergOHG Berlin 100
FielmannAG&Co.SchöneweideOHG Berlin 100
FielmannAG&Co.SpandauOHG Berlin 100
FielmannAG&Co.SteglitzOHG Berlin 100
FielmannAG&Co.TempelhofOHG Berlin 100
FielmannAG&Co.TreptowKG Berlin 100
FielmannAG&Co.WeißenseeKG Berlin 100
FielmannAG&Co.WestendKG Berlin 100
FielmannAG&Co.WilmersdorfKG Berlin 100
FielmannAG&Co.OHG Bernau 100
FielmannAG&Co.OHG Bernburg 100
126Annualreport2017
NOTES
FielmannAG&Co.OHG BiberachanderRiß 100
FielmannAG&Co.JahnplatzKG Bielefeld 100
FielmannAG&Co.OHG Bielefeld 100
FielmannAG&Co.BrackwedeKG Bielefeld-Brackwede 100
FielmannAG&Co.oHG Bietigheim-Bissingen 100
FielmannAG&Co.KG BingenamRhein 100
FielmannAugenoptikAG&Co.OHG Bitburg 100
FielmannAG&Co.OHG Bitterfeld 100
FielmannAG&Co.oHG Böblingen 100
FielmannAG&Co.OHG Bocholt 100
FielmannAG&Co.OHG Bochum 100
FielmannAG&Co.WattenscheidKG Bochum 100
FielmannSrl Bolzano 100
FielmannAG&Co.Bonn-BadGodesbergOHG Bonn 100
FielmannAG&Co.oHG Bonn 100
fielmann-opticFielmannGmbH&Co.KG Bonn 50,98
FielmannAugenoptikAG&Co.OHG Borken 100
FielmannAG&Co.OHG Bottrop 100
FielmannAugenoptikAG&Co.KG(vormalsfielmann-opticFielmannGmbH&Co.OHG) Brake 75
FielmannAG&Co.OHG Bramsche 100
FielmannAG&Co.OHG Brandenburg 100
FielmannAG&Co.Schloss-ArkadenKG Braunschweig 100
FielmannAG&Co.OHG Braunschweig 100
FielmannAG&Co.ObernstraßeOHG(vormalsFielmannAG&Co.KG) Bremen 100
FielmannAG&Co.oHGBremen-Neustadt Bremen 100
FielmannAG&Co.Roland-CenterKG Bremen 100
FielmannAG&Co.VegesackOHG Bremen 100
FielmannAG&Co.WeserparkOHG Bremen 100
FielmannAugenoptikAG&Co.OHG Bremerhaven 100
FielmannAG&Co.OHG Bretten 100
FielmannAG&Co.OHG Bruchsal 100
FielmannAG&Co.oHG Brühl 100
FielmannAG&Co.OHG Brunsbüttel 100
FielmannAG&Co.oHG Buchholz 100
FielmannAG&Co.KG Bünde 100
FielmannAG&Co.OHG Burg 100
FielmannAG&Co.OHG Burgdorf 100
FielmannAG&Co.OHG Buxtehude 100
FielmannAG&Co.KG Calw 100
FielmannAG&Co.oHG Castrop-Rauxel 100
FielmannAG&Co.OHG Celle 100
FielmannAG&Co.OHG Cham 100
FielmannAG&Co.OHG Chemnitz 100
FielmannAG&Co.Vita-CenterKG Chemnitz 100
FielmannAG&Co.oHG Cloppenburg 100
FielmannAG&Co.OHG Coburg 100
FielmannAG&Co.OHG Coesfeld 100
FielmannAG&Co.oHG Cottbus 100
FielmannAG&Co.OHG Crailsheim 100
FielmannAG&Co.OHG Cuxhaven 100
FielmannAG&Co.oHG Dachau 100
FielmannAG&Co.OHG Dallgow-Döberitz 100
FielmannAG&Co.KG Darmstadt 100
FielmannAG&Co.oHGLudwigsplatz Darmstadt 100
FielmannAG&Co.KG Datteln 100
FielmannAG&Co.oHG Deggendorf 100
FielmannAG&Co.OHG(vormalsfielmann-opticFielmannGmbH&Co.OHG) Delmenhorst 100
FielmannAG&Co.OHG Dessau-Roßlau 100
FielmannAG&Co.oHGKavalierstraße Dessau-Roßlau 100
FielmannAG&Co.OHG Detmold 100
fielmann-opticFielmannGmbH&Co.OHG Diepholz 100
FielmannAG&Co.oHG Dillingen 100
FielmannAG&Co.KG Dingolfing 100
FielmannAG&Co.OHG Dinslaken 100
FielmannAG&Co.OHG Döbeln 100
BaurOptikAG&Co.KG Donauwörth 100
FielmannAG&Co.oHG Dormagen 100
FielmannAG&Co.KG Dorsten 100
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
Annualreport2017127
NOTES
FielmannAG&Co.KG Dortmund 100
FielmannAG&Co.DresdenAltstadtOHG Dresden 100
FielmannAG&Co.DresdenNeustadtOHG Dresden 100
FielmannAG&Co.KaufparkKG Dresden 100
FielmannAG&Co.HambornKG Duisburg 100
FielmannAG&Co.imCentrumOHG Duisburg 100
FielmannAG&Co.OHG Dülmen 100
FielmannAG&Co.OHG Düren 100
FielmannAG&Co.DerendorfOHG Düsseldorf 100
FielmannAG&Co.FriedrichstraßeOHG Düsseldorf 100
FielmannAG&Co.imCentrumKG Düsseldorf 100
FielmannAG&Co.OberkasselOHG Düsseldorf 100
FielmannAG&Co.RethelstraßeOHG Düsseldorf 100
fielmann-opticFielmannGmbH&Co.KG Düsseldorf 60
FielmannAG&Co.OHG Eberswalde 100
FielmannAG&Co.OHG Eckernförde 100
FielmannAG&Co.oHG Ehingen 100
FielmannAG&Co.OHG Eisenach 100
FielmannAG&Co.OHG Eisenhüttenstadt 100
FielmannAG&Co.oHG Elmshorn 100
FielmannAG&Co.OHG Emden 100
FielmannAG&Co.OHG Emmendingen 100
FielmannAG&Co.KG Emsdetten 100
FielmannAG&Co.OHG Erding 100
FielmannAG&Co.OHG Erfurt 100
FielmannAG&Co.Thüringen-ParkOHG Erfurt 100
FielmannAG&Co.OHG Erkelenz 100
FielmannAG&Co.imCentrumOHG Erlangen 100
FielmannAG&Co.OHG Erlangen 100
FielmannAG&Co.KG Eschwege 100
FielmannAG&Co.OHG Eschweiler 100
FielmannAG&Co.EKZLimbeckerPlatzKG Essen 100
FielmannAG&Co.Essen-RüttenscheidOHG Essen 100
FielmannAG&Co.ZentrumKG Essen 100
FielmannAG&Co.Essen-SteeleOHG Essen-Steele 100
FielmannAG&Co.OHG Esslingen 100
Brillen-BunzelGmbH Ettlingen 100
FielmannAG&Co.oHG Ettlingen 100
FielmannAG&Co.oHG Euskirchen 100
FielmannAG&Co.oHG Eutin 100
FielmannAG&Co.OHG Finsterwalde 100
FielmannAG&Co.OHG Flensburg 100
FielmannAG&Co.OHG Forchheim 100
FielmannAG&Co.OHG Frankenthal 100
FielmannAG&Co.OHG Frankfurt(Oder) 100
FielmannAG&Co.BornheimKG FrankfurtamMain 100
FielmannAG&Co.Hessen-CenterOHG FrankfurtamMain 100
FielmannAG&Co.HöchstOHG FrankfurtamMain 100
FielmannAG&Co.LeipzigerStraßeOHG FrankfurtamMain 100
FielmannAG&Co.RoßmarktOHG FrankfurtamMain 100
FielmannAG&Co.oHG Frechen 100
FielmannAG&Co.OHG Freiberg 100
FielmannAG&Co.oHG FreiburgimBreis-gau 100
FielmannAG&Co.oHG Freising 100
FielmannAG&Co.OHG Freital 100
FielmannAG&Co.KG Freudenstadt 100
FielmannAG&Co.OHG Friedberg(Hessen) 100
FielmannAG&Co.KG Friedrichshafen 100
FielmannAG&Co.OHG Fulda 100
FielmannAG&Co.OHG Fürstenfeldbruck 100
FielmannAG&Co.OHG Fürstenwalde 100
FielmannAG&Co.KG Fürth 100
FielmannAG&Co.KG Garmisch-Parten-kirchen 100
FielmannAG&Co.OHG Geesthacht 100
FielmannAG&Co.KG GeislingenanderSteige 100
FielmannAG&Co.OHG Geldern 100
FielmannAG&Co.OHG Gelnhausen 100
FielmannAG&Co.imCentrumKG Gelsenkirchen 100
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
128Annualreport2017
NOTES
FielmannAG&Co.BuerOHG Gelsenkirchen 100
FielmannAG&Co.KG Gera 100
FielmannAG&Co.oHG Gießen 100
FielmannAG&Co.OHG Gifhorn 100
FielmannAG&Co.KG Gladbeck 100
FielmannAG&Co.OHG Glinde 100
FielmannAG&Co.KG Goch 100
FielmannAG&Co.OHG Göppingen 100
FielmannAG&Co.CentrumKG Görlitz 100
FielmannAG&Co.OHG Goslar 100
FielmannAG&Co.OHG Gotha 100
FielmannAG&Co.OHG Göttingen 100
FielmannAG&Co.OHG Greifswald 100
FielmannAG&Co.OHG Greiz 100
FielmannAG&Co.OHG Greven 100
FielmannAG&Co.OHG Grevenbroich 100
FielmannAG&Co.KG Grimma 100
FielmannAG&Co.OHG Gronau 100
FielmannAG&Co.OHG Gummersbach 100
FielmannAG&Co.oHG Günzburg 100
FielmannAG&Co.PferdemarktOHG Güstrow 100
FielmannAG&Co.OHG Gütersloh 100
FielmannAG&Co.OHG Hagen 100
FielmannAG&Co.OHG Halberstadt 100
FielmannAG&Co.OHG Halle 100
FielmannAG&Co.Halle-NeustadtOHG(vormalsFielmannAugenoptikAG&Co.Halle-NeustadtOHG) Halle-Neustadt 100
FielmannAG&Co.OHG HalternamSee 100
FielmannAG&Co.BillstedtKG Hamburg 100
FielmannAG&Co.BramfeldKG Hamburg 100
FielmannAG&Co.EimsbüttelOHG Hamburg 100
FielmannAG&Co.EKZHamburgerStraßeKG Hamburg 100
FielmannAG&Co.EppendorfKG Hamburg 100
FielmannAG&Co.HarburgSandOHG Hamburg 100
FielmannAG&Co.imAlstertal-EinkaufszentrumOHG Hamburg 100
FielmannAG&Co.imElbe-EinkaufszentrumOHG Hamburg 100
FielmannAG&Co.BergedorfOHG Hamburg 100
FielmannAG&Co.OchsenzollOHG Hamburg 100
FielmannAG&Co.oHGBarmbek Hamburg 100
FielmannAG&Co.oHGNiendorf Hamburg 100
FielmannAG&Co.oHGSchnelsen Hamburg 100
FielmannAG&Co.OthmarschenOHG Hamburg 100
FielmannAG&Co.OttensenOHG Hamburg 100
FielmannAG&Co.RahlstedtOHG Hamburg 100
FielmannAG&Co.RathausOHG Hamburg 100
FielmannAG&Co.VolksdorfOHG Hamburg 100
FielmannAG&Co.WandsbekOHG Hamburg 100
FielmannAugenoptikAG&Co.oHGHarburg-City Hamburg 100
fielmannFarmsenFielmannGmbH&Co.KG Hamburg 50
OptikerCarlGmbH Hamburg 100
FielmannAG&Co.KG Hameln 100
FielmannAG&Co.KG Hamm 100
FielmannAG&Co.OHG Hanau 100
FielmannAG&Co.OHG Hann.Münden 100
FielmannAG&Co.Ernst-August-GalerieKG Hannover 100
FielmannAG&Co.ListerMeileOHG Hannover 100
FielmannAG&Co.NordstadtOHG Hannover 100
FielmannAG&Co.OHG Hannover 100
FielmannAG&Co.SchwarzerBärOHG Hannover 100
FielmannAG&Co.OHG Haßloch 100
FielmannAG&Co.OHG Hattingen 100
FielmannAG&Co.OHG Heide 100
FielmannAG&Co.KG Heidelberg 100
FielmannAG&Co.OHG Heidenheim 100
FielmannAG&Co.oHG Heilbronn 100
FielmannAG&Co.oHG Heinsberg 100
FielmannAG&Co.oHG Helmstedt 100
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
Annualreport2017129
NOTES
FielmannAG&Co.OHG Herborn 100
FielmannAG&Co.KG Herford 100
FielmannAG&Co.KG Herne 100
FielmannAG&Co.oHGimCentrum Herne 100
FielmannAG&Co.OHG Herrenberg 100
FielmannAG&Co.KG Herten 100
FielmannAG&Co.oHG Hilden 100
FielmannAG&Co.OHG Hildesheim 100
FielmannAG&Co.OHG Hof 100
FielmannAG&Co.OHG Homburg/Saar 100
FielmannAugenoptikAG&Co.OHG Höxter 100
FielmannAG&Co.OHG Hoyerswerda 100
FielmannAG&Co.oHG Husum 100
FielmannAG&Co.OHG Ibbenbüren 100
FielmannAG&Co.oHG Idar-Oberstein 100
FielmannAG&Co.OHG Ilmenau 100
FielmannAG&Co.OHG Ingolstadt 100
FielmannAG&Co.EKZWestparkOHG Ingolstadt 100
FielmannAG&Co.oHG Iserlohn 100
FielmannAG&Co.OHG Itzehoe 100
FielmannAG&Co.OHG Jena 100
FielmannAG&Co.OHG Jülich 100
FielmannAG&Co.OHG Kaiserslautern 100
FielmannAG&Co.OHG Kamen 100
FielmannAG&Co.KG Kamp-Lintfort 100
FielmannAG&Co.WestlicheKaiserstraßeKG Karlsruhe 100
FielmannAG&Co.OHG Kassel 100
FielmannAG&Co.imDEZOHG Kassel 100
FielmannAG&Co.OHG Kaufbeuren 100
FielmannAG&Co.OHG Kempen 100
FielmannAG&Co.oHG Kempten 100
FielmannAG&Co.OHG Kiel 100
FielmannAG&Co.oHGWellingdorf Kiel 100
FielmannGmbH Kiev,Ukraine 100
FielmannAG&Co.oHG KirchheimunterTeck 100
FielmannAG&Co.KG Kleve 100
FielmannAG&Co.ForumMittelrheinOHG Koblenz 100
FielmannAG&Co.OHG Koblenz 100
FielmannAG&Co.BarbarossaplatzOHG Köln 100
FielmannAG&Co.EbertplatzKG Köln 100
FielmannAG&Co.MülheimOHG Köln 100
FielmannAG&Co.OHG Köln 100
FielmannAG&Co.oHGKalk Köln 100
FielmannAG&Co.oHGRhein-Center Köln 100
FielmannAG&Co.SchildergasseOHG Köln 100
FielmannAG&Co.VenloerStraßeOHG Köln 100
OptikSimonGmbH Köln 100
FielmannAG&Co.ChorweilerKG Köln-Chorweiler 100
OptikHessGmbH&Co.KG Köln-Dellbrück 100
BrillenMüllerGmbH&Co.OHG7 Konstanz 100
FielmannAG&Co.OHG Konstanz 100
FielmannAG&Co.OHG Korbach 100
FielmannAG&Co.KG Köthen 100
FielmannAG&Co.NeumarktKG Krefeld 100
FielmannAG&Co.OHG Kulmbach 100
FielmannAugenoptikAG&Co.OHG Laatzen 100
FielmannAG&Co.oHG Lahr 100
fielmannFielmannGmbH Landau 65
FielmannAG&Co.OHG Landshut 100
FielmannAG&Co.OHG Langenfeld 100
FielmannAG&Co.OHG Langenhagen 100
FielmannAG&Co.KG LaufanderPegnitz 100
FielmannAG&Co.oHG Leer 100
FielmannAG&Co.amMarktOHG Leipzig 100
FielmannAG&Co.oHGAlleeCenter Leipzig 100
FielmannAG&Co.Paunsdorf-CenterOHG Leipzig 100
FielmannAG&Co.KG Lemgo 100
FielmannAG&Co.OHG Lengerich 100
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
130Annualreport2017
NOTES
FielmannAG&Co.OHG Leverkusen 100
FielmannAG&Co.oHG Limburg 100
FielmannAG&Co.OHG Lingen 100
FielmannAG&Co.OHG Lippstadt 100
fielmann-opticFielmannGmbH&Co.KG Lohne 61,54
FielmannAG&Co.OHG LohramMain 100
FielmannAG&Co.oHG Lörrach 100
FielmannAG&Co.KG Lübbecke 100
FielmannAG&Co.OHG Lübeck 100
FielmannAG&Co.KG Luckenwalde 100
FielmannAG&Co.oHG Lüdenscheid 100
FielmannAG&CoimCenterKG Ludwigsburg 100
FielmannAG&Co.oHG Ludwigsburg 100
FielmannAG&Co.Rhein-GalerieKG Ludwigshafen 100
FielmannAG&Co.oHG Lüneburg 100
FielmannAG&Co.OHG Lünen 100
FielmannAG&Co.oHG LutherstadtEisleben 100
FielmannAG&Co.OHG LutherstadtWitten-berg 100
FielmannGmbH Luxembourg,Luxemburg 51
FielmannAG&Co.OHG Magdeburg 100
FielmannAG&Co.SudenburgOHG Magdeburg 100
FielmannAG&Co.OHG Mainz 100
FielmannAG&Co.OHG Mannheim 100
FielmannAG&Co.OHG Marburg 100
FielmannAG&Co.KG Marktredwitz 100
FielmannAG&Co.KG Marl 100
FielmannAugenoptikAG&Co.OHG Mayen 100
FielmannAG&Co.oHG Meiningen 100
FielmannAG&Co.OHG Meißen 100
FielmannAG&Co.OHG4 Melle 100
FielmannAugenoptikAG&Co.KG Memmingen 50,1
FielmannAG&Co.OHG Menden 100
FielmannAG&Co.OHG Meppen 100
FielmannAG&Co.oHG Merseburg 100
FielmannAG&Co.OHG Merzig 100
FielmannAG&Co.OHG Meschede 100
FielmannAG&Co.oHG Minden 100
IBFielmannGmbH Minsk,Weißrussland 100
FielmannAG&Co.OHG Moers 100
FielmannAG&Co.OHG Mölln 100
FielmannAG&Co.oHGHindenburgstraße Mönchengladbach 100
FielmannAG&Co.RheydtoHG Mönchengladbach 100
FielmannAG&Co.KG Mosbach 100
FielmannAG&Co.OHG Mühldorfa.Inn 100
FielmannAG&Co.OHG Mühlhausen 100
FielmannAG&Co.OHG MülheimanderRuhr 100
FielmannAG&Co.RheinRuhrZentrumOHG
MülheimanderRuhr 100
FielmannAG&Co.HaidhausenOHG München 100
FielmannAG&Co.LeopoldstraßeOHG München 100
FielmannAG&Co.OHG München 100
FielmannAG&Co.oHGMünchenOEZ München 100
FielmannAG&Co.oHGMünchenPEP München 100
FielmannAG&Co.oHGSendling München 100
FielmannAG&Co.PasingOHG München 100
FielmannAG&Co.RiemArcadenKG München 100
FielmannAG&Co.TalKG München 100
FielmannAG&Co.HiltrupOHG Münster 100
FielmannAG&Co.KlosterstraßeOHG Münster 100
FielmannAG&Co.AnderRothenburgOHG Münster 100
FielmannAG&Co.KG Nagold 100
FielmannAG&Co.OHG Naumburg 100
FielmannAG&Co.KG Neubrandenburg 100
FielmannAG&Co.oHGMarktplatz-Center Neubrandenburg 100
FielmannAG&Co.OHG NeuburganderDonau 100
FielmannAG&Co.oHG Neu-Isenburg 100
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
Annualreport2017131
NOTES
FielmannAG&Co.oHG Neumarkti.d.OPf. 100
FielmannAG&Co.OHG Neumünster 100
FielmannAG&Co.OHG Neunkirchen 100
FielmannAG&Co.OHG Neuruppin 100
FielmannAG&Co.OHG Neuss 100
FielmannAG&Co.oHG Neustadta.d.Weinstraße 100
FielmannAG&Co.OHG Neustrelitz 100
FielmannAG&Co.Glacis-GalerieOHG Neu-Ulm 100
FielmannAG&Co.oHG Neuwied 100
FielmannAG&Co.OHG Nienburg 100
FielmannAugenoptikAG&Co.oHG Norden 100
FielmannAugenoptikAG&Co.KG(vormalsfielmannFielmannGmbH&Co.OHG) Nordenham 75
FielmannAG&Co.OHG Norderstedt 100
FielmannAG&Co.OHG Nordhausen 100
FielmannAG&Co.OHG Nordhorn 100
FielmannAG&Co.OHG Nördlingen 100
FielmannAG&Co.OHG Northeim 100
FielmannAG&Co.amHauptmarktOHG Nürnberg 100
FielmannAG&Co.NürnbergLorenzOHG Nürnberg 100
FielmannAG&Co.Nürnberg-SüdKG Nürnberg 100
FielmannAG&Co.Nürnberg-LangwasserOHG Nürnberg 100
FielmannAG&Co.OberhausenOHG Oberhausen 100
FielmannAG&Co.OHGSterkrade OberhausenSterkrade 100
FielmannAG&Co.oHG Oberursel 100
FielmannAG&Co.OHG Oer-Erkenschwick 100
FielmannAG&Co.KG OffenbachamMain 100
FielmannAG&Co.oHG Offenburg 100
FielmannAG&Co.OHG Oldenburg/Holstein 100
FielmannAG&Co.imCentrumKG Oldenburg/Olden-burg 100
FielmannB.V. Oldenzaal,Niederlande 100
HoflandOptiekB.V. Oldenzaal,Niederlande 100
FielmannAG&Co.OHG Olpe 100
FielmannAG&Co.OHG Olsberg 100
FielmannAG&Co.oHG Oranienburg 100
fielmann-opticFielmannGmbH&Co.KG Osnabrück 50,12
FielmannAG&Co.oHG Osterholz-Scharmbeck 100
FielmannAG&Co.OHG Osterode 100
FielmannAG&Co.KG Paderborn 100
FielmannAugenoptikAG&Co.oHG Papenburg 100
FielmannAG&Co.OHG Parchim 100
FielmannAG&Co.oHG Passau 100
FielmannAG&Co.OHG Peine 100
FielmannAG&Co.OHG6 Pfarrkirchen 100
FielmannAG&Co.OHG Pforzheim 100
FielmannAG&Co.oHG Pinneberg 100
FielmannAG&Co.OHG Pirmasens 100
FielmannAG&Co.OHG Pirna 100
FielmannAG&Co.KG Plauen 100
FielmannAG&Co.KG Plön 100
FielmannAG&Co.OHG Potsdam 100
Fielmannsp.zo.o. Poznan,Polen 100
FielmannAG&Co.OHG Quedlinburg 100
FielmannAG&Co.OHG Radebeul 100
BaurOptikGmbHRain RainamLech 60
FielmannAG&Co.OHG Rastatt 100
FielmannAG&Co.OHG Rathenow 100
FielmannAG&Co.OHG Ratingen 100
FielmannAG&Co.KG Ravensburg 100
FielmannAG&Co.OHG Recklinghausen 100
FielmannAG&Co.imDonau-EinkaufszentrumKG Regensburg 100
FielmannAG&Co.KG Regensburg 100
FielmannAG&Co.KG ReichenbachimVogtland 100
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
132Annualreport2017
NOTES
FielmannAG&Co.oHG Remscheid 100
FielmannAG&Co.oHG Rendsburg 100
FielmannAG&Co.OHG Reutlingen 100
FielmannAG&Co.OHG Rheinbach 100
FielmannAG&Co.oHG Rheine 100
Löchte-OptikGmbH Rheine 100
FielmannAG&Co.OHG Riesa 100
FielmannAG&Co.KG Rinteln 100
FielmannAG&Co.oHG Rosenheim 100
FielmannAG&Co.OHG Rostock 100
FielmannAG&Co.oHGLüttenKlein Rostock 100
FielmannAG&Co.OHG Rotenburg/Wümme 100
FielmannAG&Co.oHG Rottenburg 100
GroeneveldBrillenenContactlenzenB.V.
Rotterdam,Niederlande 100
FielmannAugenoptikAG&Co.oHG Rottweil 100
FielmannAG&Co.OHG Rudolstadt 100
FielmannAG&Co.OHG Rüsselsheim 100
FielmannAG&Co.OHG Saalfeld/Saale 100
FielmannAG&Co.oHG Saarbrücken 100
FielmannAG&Co.oHG Saarlouis 100
FielmannAG&Co.KG Salzgitter 100
FielmannAG&Co.OHG Salzwedel 100
FielmannAG&Co.oHG Sangerhausen 100
FielmannAG&Co.OHG Schleswig 100
FielmannAG&Co.OHG Schönebeck 100
FielmannAG&Co.KG Schwabach 100
FielmannAG&Co.OHG SchwäbischGmünd 100
FielmannAG&Co.OHG SchwäbischHall 100
FielmannAG&Co.KG Schwandorf 100
FielmannAG&Co.OHG Schwedt 100
FielmannAG&Co.OHG Schweinfurt 100
FielmannAG&Co.imCentrumOHG Schwerin 100
FielmannAG&Co.OHG Schwerin 100
FielmannAG&Co.KG Schwetzingen 100
FielmannAG&Co.OHG Seevetal 100
FielmannAG&Co.oHG Senftenberg 100
FielmannAG&Co.OHG Siegburg 100
FielmannAG&Co.KG Siegen 100
FielmannAG&Co.oHGCity-Galerie Siegen 100
FielmannAG&Co.SternCenterOHG Sindelfingen 100
FielmannAG&Co.OHG Singen 100
FielmannAG&Co.OHG Soltau 100
FielmannAG&Co.KG Soest 100
FielmannAG&Co.imCentrumOHG Solingen 100
FielmannAG&Co.OHG Sonneberg 100
FielmannAG&Co.KG Sonthofen 100
FielmannAG&Co.oHG Speyer 100
FielmannAG&Co.OHG St.Ingbert 100
FielmannAG&Co.OHG Stade 100
FielmannAG&Co.KG Stadthagen 100
FielmannAG&Co.OHG Starnberg 100
FielmannAG&Co.OHG Stendal 100
FielmannAG&Co.OHG Stralsund 100
OptiqueMarmetJacquesSAS5 Strasbourg,Frankreich 100
FielmannAG&Co.OHG Straubing 100
FielmannAG&Co.OHG Strausberg 100
FielmannAG&Co.BadCannstattOHG Stuttgart 100
FielmannAG&Co.EKZMilaneoOHG Stuttgart 100
FielmannAG&Co.KG Stuttgart 52
OptikSchuppinGmbH&Co.OHG8 Stuttgart 100
FielmannAG&Co.OHG Suhl 100
FielmannAG&Co.KG Sulzbach 100
FielmannAG&Co.KG Sylt/OTWesterland 100
FielmannAG&Co.oHG Traunstein 100
FielmannAugenoptikAG&Co.OHG Trier 100
FielmannAG&Co.OHG Troisdorf 100
FielmannAG&Co.KG Tübingen 100
FielmannAugenoptikAG&Co.oHG Tuttlingen 100
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
Annualreport2017133
NOTES
1Ifnocountryisstatedafterthenameofthetownorcity,thecompanyisbasedinGermany.2Inaccordancewithsection264Para.3andsections264aand264boftheGermancommercialcode(HGB),thiscompanyisexemptfromthe
obligationtoprepareamanagementreport.3Inaccordancewithsection264Para.3andsections264aand264boftheGermancommercialcode(HGB),thiscompanyisexemptfrom
havingtoaudititsfinancialstatements.4Thiscompanywasfoundedinfinancialyear2017.5Thiscompanywasacquiredwithacontractofpurchaseon04.07.2017andenteredintotheFrenchcommercialregisteron07.12.2017.6Thiscompanywasacquiredwithacontractofpurchaseon12.12.2017witheffectfrom30.12.2017.7Thiscompanywasacquiredwithacontractofpurchaseon18.05.2017andenteredintothecommercialregisteron18.09.2017.8Thiscompanywasacquiredwithacontractofpurchaseon03.05.2017andenteredintothecommercialregisteron24.07.2017.
FielmannAG&Co.KG Überlingen 100
FielmannAG&Co.OHG Uelzen 100
FielmannAugenoptikAG&Co.oHG Ulm 100
FielmannAG&Co.KG Unna 100
fielmann-opticFielmannGmbH&Co.oHG Varel 100
FielmannAG&Co.OHG Vechta 100
FielmannAG&Co.oHG Velbert 100
FielmannAG&Co.oHG Verden 100
FielmannAG&Co.oHG Viersen 100
FielmannAG&Co.OHG Villingen 100
FielmannAG&Co.SchwenningenKG
Villingen-Schwenningen 100
FielmannAG&Co.KG Völklingen 100
FielmannAG&Co.oHG Waiblingen 100
FielmannAG&Co.OHG Waldshut-Tiengen 100
FielmannAG&Co.OHG Walsrode 100
FielmannAG&Co.OHG Waltrop 100
FielmannAG&Co.OHG4 WangenimAllgäu 100
FielmannAG&Co.KG Warburg 100
FielmannAG&Co.OHG Warendorf 100
FielmannAG&Co.OHG Wedel 100
FielmannAG&Co.OHG Weideni.d.Oberpfalz 100
FielmannAG&Co.OHG Weilheimi.OB. 100
FielmannAG&Co.KG Weimar 100
FielmannAG&Co.OHG Weinheim 100
FielmannAG&Co.KG WeißenburginBayern 100
FielmannAG&Co.KG Weißenfels 100
FielmannAG&Co.OHG Weißwasser 100
FielmannAG&Co.KG Weiterstadt 100
FielmannAG&Co.OHG Wernigerode 100
FielmannAG&Co.OHG Wesel 100
FielmannAugenoptikAG&Co.OHG Westerstede 100
FielmannAG&Co.oHG Wetzlar 100
FielmannGmbH Wien,Österreich 100
FielmannAG&Co.OHG Wiesbaden 100
OptikKäpernickGmbH&Co.KG Wiesbaden 100
FielmannAG&Co.KG Wiesloch 100
FielmannAG&Co.KG Wildau 100
FielmannAugenoptikAG&Co.OHG Wildeshausen 100
FielmannAG&Co.KG Wilhelmshaven 100
FielmannAG&Co.OHG Winsen 100
FielmannAG&Co.OHG Wismar 100
FielmannAugenoptikAG&Co.KG Witten 50,5
FielmannAugenoptikimCentrumAG&Co.oHG Witten 100
FielmannAG&Co.oHG Wittenberge 100
FielmannAugenoptikAG&Co.oHG Wittlich 100
FielmannAugenoptikAG&Co.OHG Wittmund 100
FielmannAG&Co.OHG Wolfenbüttel 100
FielmannAG&Co.OHG Wolfsburg 100
FielmannAG&Co.KG Worms 100
FielmannAugenoptikAG&Co.OHG Wunstorf 100
FielmannAG&Co.BarmenOHG Wuppertal 100
FielmannAG&Co.City-ArkadenKG Wuppertal 100
FielmannAG&Co.ElberfeldOHG Wuppertal 100
FielmannAG&Co.OHG Würselen 100
FielmannAG&Co.OHG Würzburg 100
FielmannAG&Co.KG Zeitz 100
FielmannAG&Co.OHG Zittau 100
FielmannAG&Co.OHG Zweibrücken 100
FielmannAG&Co.KG Zwickau 100
Stores Groupshareofthecapitalinpercent
Name Location1 Share Name Location1 Share
134Annualreport2017
NOTES
Proposed appropriation of profit
Affirmation by the
Management Board
TheManagementandSupervisoryBoardswillproposetotheGeneralMeetingthatthebalancesheetprofitofFielmannAktiengesellschaft,amountingtoT¤155.400,shouldbeappropriatedasfollows:
Hamburg,16March2018
FielmannAktiengesellschaftTheManagementBoard
GüntherFielmann
WeaffirmthattothebestofourknowledgetheconsolidatedaccountspreparedinaccordancewiththeapplicableaccountingregulationsconveyaviewoftheGroup’sassets,financesandincomethatistrueandfairandthatbusinessdevelopmentinclud-ingbusinessresultsandthepositionoftheGrouparepresentedintheManagementReportfortheGroupinsuchawayastoprovideatrueandfairviewaswellastoportraytheopportunitiesandrisksinherentinthefuturedevelopmentoftheGroupaccurately.
Hamburg,16March2018
FielmannAktiengesellschaftTheManagementBoard
Payment of a dividend of ¤ ‘000 ¤1.85perordinaryshare(84,000,000shares) 155,400
MichaelFerleyMarcFielmannDr.BastianKörberDr.StefanThiesGeorgAlexanderZeiss
AUDITOR’S REPORT
Annualreport2017135
ToFielmannAktiengesellschaft,Hamburg
NOTE ON THE AUDIT OF THE CON-
SOLIDATED ACCOUNTS AND THE GROUP
MANAGEMENT REPORT
Audit opinion
We have audited the consolidated accountsof Fielmann Aktiengesellschaft, Hamburg, anditssubsidiaries(oftheGroup)–comprisingtheconsolidatedbalancesheetasat31December2017,theconsolidatedstatementoftheoverallresult, the consolidated statement of changesinequityandtheconsolidatedcashflowstate-ment for the financial year from 1 January to31December2017aswellastheNotestotheconsolidatedaccounts,includingasummaryofsignificantaccountingmethods.Inaddition,wehaveauditedtheGroupManagementReportofFielmann Aktiengesellschaft, Hamburg, for thefinancialyearfrom1Januaryto31December2017.InaccordancewiththeGermanstatutoryregulations, we have not audited the contentof thepartsof theGroupManagementReportunder“OtherInformation”.Accordingtoourassessmentbasedontheinsightgainedduringtheaudit,
– the attached consolidated accounts fullycomply with the International FinancialReportingStandards(IFRS),asapplicableinthe EU, as well as the additional GermanstatutoryprovisionspursuanttoSection315ePara. 1 of the German Commercial Code(HGB)andgiveatrueandfairview,takingintoaccounttheseregulations,oftheassetsandfinancesoftheGroupasat31Decem-ber2017,aswellasitsincomeforthefinan-cial year from1 January to31December2017,and
– the attached Group Management reportalsoprovidesatrueandfairviewoftheposi-tionoftheGroup.Onallthekeypoints,theGroupManagementReportisinlinewiththeconsolidated accounts, corresponds to theGermanstatutoryregulationsandaccuratelyportraystheopportunitiesandrisksinherentin the futuredevelopment.Ourauditopin-iondoesnotincludethecontentofthepartsof the Group Management Report under“OtherInformation”.
Pursuant to Section 322 Para. 1 (1) of theGermanCommercialCode(HGB),wedeclarethatourauditledtonoobjectionstothecorrect-nessoftheconsolidatedaccountsandtheGroupManagementReport.
Basis for the audit opinion
We have audited the consolidated accountsandtheGroupManagementReportinaccord-ance with Section 317 of the German Com-mercialCode(HGB)andtheEUauditregula-tion(No.537/2014;hereinafterreferredtoas“EU-AR”) incompliancewith theprinciplesofproperandcorrectauditinglaiddownbytheIDW(GermanInstituteofAuditors).Ourrespon-sibilitiesunderthoseprovisionsandstandardsarefurtherdescribedinthe“Auditor’sRespon-sibilities for the Audit of the ConsolidatedAccountsandtheGroupManagementReport”sectionofourreport.WeareindependentoftheGroupcompanies inaccordancewith theprovisions under European law and Germancommerciallawandprofessionalrequirements,andwehave fulfilledourotherGermanethi-cal responsibilities in accordance with theserequirements.Furthermore,wedeclarethatwe,inlinewithArticle10Para.2(f)oftheEU-AR,havenotprovidedanyprohibitednon-auditser-
Independent
auditor’s report
MichaelFerleyMarcFielmannDr.BastianKörberDr.StefanThiesGeorgAlexanderZeiss
AUDITOR’SREPORT
Annualreport2017135
AUDITOR’S REPORT
136Annualreport2017
vicesasdescribedinArticle5Para.1of theEU-AR.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasis forourauditopinion regard-ing theconsolidatedaccountsand theGroupManagementReport.
Key audit matters in the audit of the
consolidated accounts
Keyauditmattersarethosemattersthat,inourprofessional judgment, were of most signifi-canceinourauditoftheconsolidatedaccountsforthefinancialyearfromJanuary1toDecem-ber 31 2017. These matters were addressedinthecontextofourauditoftheconsolidatedaccountsasawhole,andinformingourauditopinionthereof,andwedonotprovideasepa-rateauditopiniononthesematters.Inourview,thekeyauditmatterswereasfol-lows:1.Recoverabilityofgoodwill2.EvidenceandevaluationoftheinventoriesOurpresentationofthesekeyauditmattershasbeenstructuredasfollows:a) Descriptionofmatters(includingreferenceto related disclosures in the consolidated ac-counts)b) Auditapproach
1. Recoverability of goodwill
a) A goodwill of ¤46.0 million has beenreported in the consolidatedaccounts ofFielmann Aktiengesellschaft. This corre-spondsto5%oftheconsolidatedbalancesheet sum.Goodwill is tested for impair-mentupto31Decemberofeveryfinancialyear.Theimpairmenttestiscarriedoutbya comparison of the book value against
the value in use of the cash-generatingunit, which is calculated as the presentvalue of future cash flows. This presentvalue calculation is basedonone year’sdetailed projection, a subsequent twoyears’projection,whichinturnisderivedfromthecumulativeGroupplanning,andthereafter fromaperpetuity valuebasedonthethirdplanningyear.Theresultoftheevaluation depends to a large extent onthediscretionaryassessmentof thefuturecash inflows by the legal representativesandofthediscountrateused.Theevalua-tionsarethereforesubjecttoconsiderableuncertainty.Inlightofthisbackground,thismatterwasofparticularimportanceinouraudit.
TheGroup’sdisclosurespertaining to therecoverabilityofgoodwillarecontainedinsectionsIII.undIV.(2)oftheNotestotheconsolidatedaccounts.
b) As part of our audit, we evaluated themethodical procedure for carrying outtheimpairmenttest.WetooktheGroup’sbudget history into consideration in ourassessment.
We compared the anticipated futurecashflows in theevaluation to thecorre-sponding detailed projections as well asto the Group planning approved by theSupervisory Board. In our assessment ofthe appropriateness of the budgeting,we used the comparison to general andindustry-specific market expectations aswell as comprehensive explanations bythe management as a basis. As minimalchanges to thediscountratehaveacon-siderable impacton thevalue inuse,we
AUDITOR’S REPORT
Annualreport2017137
corroborated the underlying parametersusinginformationsuppliedbythemanage-mentandourownmarketresearch,andwealso examined the mathematical correct-nessofthecalculationsforthevalueinuse.Regardingthecash-generatingunitswithaminimalcoverofthebookvaluecomparedtothevalueinuse,weconductedourownsensitivity analyses to determine if therespectivegoodwillissufficientlycoveredbythediscountedanticipatedfuturecashinflows.Asasignificantpartofthevalueinuseresultsfromforecastcashinflowsfortheperiodafter the three-yearprojection(phaseofperpetuity),wewerecritical inourassessmentofthescheduledlong-term0.5%growthrateintheperpetuityphase.
2. Evidence and evaluation of the
inventories
Inventories totalling ¤ 128.7 million arereportedintheconsolidatedaccountsofFiel-mann Aktiengesellschaft. This correspondsto13.9%oftheconsolidatedbalancesheetsum.Thestockvalueisrecordedaspartofthepermanent inventoryand theextendedperiodic inventory.Theevaluation ismadeat acquisition/production costs or at thelower net sales proceeds. In the financialyear2017,theinventorieswerereducedbymeansofvalueadjustmentsof¤6.9million.The basis for the value adjustments weregeneralisedassumptionsabouttherangeoftheinventories(markdowns)and,inspecificcases,assumptionsabouttheusabilityofthestocks.Thevalueadjustmentsare thereforebasedondiscretionaryestimatesbythelegalrepresentatives.
Forthisreasonandalsoduetothequantityandturnoverrateoftheinventories,thelargenumber of storage locations in the Groupandtherelatedlengthoftimefortheaudit,thismatterwasofspecialsignificanceinouraudit.
The disclosures made by the legal repre-sentativeson the inventories canbe foundinsectionsIIandIV(7)oftheNotestotheconsolidatedaccounts.
b) Inthecourseofouraudit,weevaluatedthesubmitted internal control system for track-ing and rating the inventories, and testedtheimplementedrelevantcontrols.Thefocusherewason thecontrols for theautomaticdepreciationcycles.Inthiscontext,weana-lysedthedepreciationcyclesinthesystem–withthehelpofITspecialists–andexaminedtheir functional capability. With regard tothe subsequent valuationof the inventoriesand the assumptionsmade in this respect,we verified theunderlyingassumptions forarepresentativesampleandexamined theevidence.
Furthermore,wecheckedthepresenceandthe condition of the inventories during ourparticipationinphysicalstock-takesbothatthecentralwarehouseandatselectedstores.The storeswere selectedbasedona sam-plingmethodwhichtookintoconsiderationthe amount of stock and our experiencesfromthepast.
Other information
The legal representatives are responsible forother information.Theother informationcom-prises
AUDITOR’S REPORT
138Annualreport2017
– the Group declaration on corporate gov-ernance pusuant to Section 315d of theGermanCommercialCode(HGB),towhichtheGroupManagementReportrefers,
– theassuranceof the legal representativesregarding the consolidated accounts andtheGroupManagementReportpursuanttoSection297Para.2 (4)andSection315Para. 1 (5) of the German CommercialCode(HGB)and
– all other parts of theAnnual Report,withtheexceptionof theauditedconsolidatedaccounts and the Group ManagementReportaswellasourreport.
Inaddition,theotherinformationincludestheseparatesummarisednon-financialreportpur-suanttoSections289bto289easwellas315band 315c of the German Commercial Code(HGB),towhichthegroupManagementReportrefersandwhichwillmost likelybepublishe-donthewebsiteofFielmannAktiengesellschaft,Hamburg,by30April2018. Our audit opinion on the consolidatedaccountsand theGroupManagementReportdoesnotcovertheotherinformation,whichiswhy we will not provide an audit opinion orany other form of audit-based conclusion onthissubject. Inrelationtoourauditoftheconsolidatedaccounts,weare responsible for reading theotherinformationandforassessingwhetherthisotherinformation– showsanysignificantdiscrepancies to the
consolidatedaccounts,totheGroupMan-agementReportortothefindingswemakeduringouraudit,or
– appearssignificantlyincorrectforanyotherreason.
Responsibility of the legal representa-
tives and the Supervisory Board for the
consolidated accounts and the Group
Management Report
The legal representatives are responsiblefor the preparation of the consolidatedaccounts,which fully complywith IFRS, asapplicable in the EU, as well as with theadditionalGermanstatutoryprovisionspur-suanttoSection315ePara.1oftheGermanCommercialCode (HGB),and forensuringthat the consolidated accounts give a trueandfairview,takingintoaccounttheseregu-lations,oftheGroup’sassets,financesandincome. Furthermore, the legal representa-tivesareresponsiblefortheinternalcontrolsthat they deem necessary for enabling thepreparation of the consolidated accounts,whicharefreeofanysignificant–intendedorunintended–misrepresentations.Inpreparingtheconsolidatedaccounts,thelegal representatives are responsible forassessing the Group’s ability to continueas a going concern. What’s more, theyare responsible for disclosing, as applica-ble, matters related to the company as agoingconcern.Theyarealsoresponsibleforreporting the going concern based on theprinciplesofaccounting,unlesstheyintendto liquidate the Group or to cease opera-tions, or they have no realistic alternativebuttodoso.In addition, the legal representatives areresponsible for preparing the Group Man-agementReport,whichprovidesatrueandfairviewofthepositionoftheGroupandisinlinewithallthekeypointsintheconsoli-datedaccounts,correspondstotheGerman
AUDITOR’S REPORT
Annualreport2017139
statutory regulations and accurately por-trays the opportunities and risks inherentin the future development. Moreover, thelegal representatives are responsible forthe policies and procedures (systems) thattheydeterminearenecessarytoenablethepreparationofaGroupManagementReportinaccordancewiththeapplicableGermanstatutoryregulationsandtoprovidesufficientandappropriateevidencefortheassertionsintheGroupManagementReport.TheSupervisoryBoard is responsible forover-seeing theGroup’saccountingprocess for thepreparationoftheGroupManagementReport.
Auditor’s responsibilities for the audit
of the consolidated accounts and the
Group Management Report
Ourobjectiveistoobtainreasonableassuranceaboutwhether theconsolidatedaccountsasawholearefreeofanysignificant–intendedorunintended – misrepresentations, and whethertheGroupManagementReportprovidesatrueandfairviewofthepositionoftheGroupandisinlinewithallthekeypointsintheconsolidatedaccounts,correspondstotheGermanstatutoryregulationsandaccuratelyportrays theoppor-tunitiesandrisksinherentinthefuturedevelop-ment,aswellastoissueanauditor’sreportthatincludesourauditopinionontheconsolidatedaccountsandtheGroupManagementReport.Assurances made by the legal representativesprovide a high degree of security but are noguarantee thatanauditcarriedout inaccord-ancewithSection317oftheGermanCommer-cialCode(HGB)andtheEU-ARincompliancewiththeprinciplesofproperandcorrectaudit-inglaiddownbytheIDW(GermanInstituteof
Auditors)alwaysdetectssignificantmisrepresen-tations.Misrepresentationsmaybetheresultofinfringementsorinaccuraciesandareregardedassignificantifitcouldbereasonablyexpectedthatthey–individuallyorasawhole–influencetheeconomicdecisionstakenbyaddresseesonthebasisoftheseconsolidatedaccountsandthisGroupManagementReport.We exercise professional judgment and main-tainprofessionalscepticismthroughouttheaudit.Wealso– identify and assess the risks of significant
– intended or unintended –misrepresenta-tionsintheconsolidatedaccountsandintheGroupManagementReport,planandper-form audit procedures responsive to thoserisks,andobtainauditevidencethatissuf-ficientandappropriatetoprovideabasisforourauditopinion.Theriskofnotdetectingsignificantmisrepresentationsresultingfrominfringements is higher than for one result-ingfrominaccuracies,asinfringementsmayinvolve collusion, forgery, intentional omis-sions, misleading representations, or therepealofinternalcontrols.
– obtain an understanding of the internalcontrol system relevant to the audit of theconsolidated accounts and of the policiesandproceduresrelevanttotheauditoftheGroupManagementReportinordertoplanauditproceduresthatareappropriateinthecircumstances,butarenotforthepurposeofexpressinganauditopinionontheeffective-nessofthesesystems.
– evaluatetheappropriatenessofaccountingmethods used and the reasonableness ofaccountingestimatesandrelateddisclosuresmadebythelegalrepresentatives.
AUDITOR’S REPORT
140Annualreport2017
– conclude on the appropriateness of thelegalrepresentatives’useofthegoingcon-cernbasisofaccountingand,basedontheauditevidenceobtained,whetherasignifi-cant uncertainty exists related to events orconditions that may cast serious doubt ontheGroup’s ability to continue as a goingconcern. If we conclude that a significantuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosures in theconsolidatedaccountsortheGroupManagement Report or, if suchdisclosures are inadequate, to modify ourauditopinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.
– evaluate the overall presentation, structureand content of the consolidated accounts,including the disclosures, and whether theconsolidatedaccountsrepresenttheunderly-ingtransactionsandeventsinamannerthatthe consolidatedaccounts givea trueandfairviewoftheGroup’sassets,financesandincomeinaccordancewithIFRS,asapplica-bleintheEU,aswellaswiththeadditionalGermanstatutoryprovisionspursuanttoSec-tion315ePara.1oftheGermanCommer-cialCode(HGB).
– obtainsufficientappropriateauditevidenceregardingtheaccountinginformationofthecompanies or business activitieswithin theGroupinordertoprovideanauditopinionontheconsolidatedaccountsandtheGroupManagementReport.Weareresponsibleforthedirection,supervisionandperformanceof the audit of the consolidated accounts.Weremainsolelyresponsibleforourauditopinion.
– evaluate the consistency of the GroupManagement Reportwith the consolidatedaccounts,itsconformitywiththelaw,andtheviewoftheGroup’spositionitprovides.
– perform audit procedures on the prospec-tive information presented by the legalrepresentatives in the Group ManagementReport.Onthebasisofsufficientappropriateaudit evidence, we evaluate, in particular,thesignificantassumptionsusedbythelegalrepresentativesasabasisfortheprospectiveinformation,andevaluatetheproperderiva-tionoftheprospectiveinformationfromtheseassumptions.Wedonotexpressaseparateauditopinionontheprospectiveinformationand on the assumptions used as a basis.Thereisasubstantialunavoidablerisk thatfuture eventswill differmaterially from theprospectiveinformation.
We communicate with those charged withsupervisionregarding,amongothermatters,theplannedscopeandtimingoftheauditandsig-nificantauditfindings,includinganysignificantdeficienciesintheinternalcontrolsystemthatweidentifyduringouraudit.Wealsoprovidethosechargedwithsupervisionwithastatementthatwehavecompliedwiththerelevantindependencerequirements,andcom-municatewith themall relationshipsandothermattersthatmayreasonablybethoughttobearon our independence, and where applicable,therelatedsafeguards.From the matters communicated with thosecharged with supervision, we determine thosematters that were of most significance in theauditoftheconsolidatedaccountsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclo-sureaboutthematter.
AUDITOR’S REPORT
Annualreport2017141
OTHER LEGAL AND REGULATORY
REQUIREMENTS
Further information pursuant to Article
10 of the EU-AR
We were elected as Group auditor by theAnnual General Meeting on 1 June 2017.Wewereengagedby theSupervisoryBoardon10/18October2017.Wehavebeen theGroupauditorofFielmannAktiengesellschaft,Hamburg,without interruptionsincethefinan-cialyear2011.Wedeclarethattheopinionsexpressedinthisauditor’s report are consistent with the addi-tionalreporttotheauditcommitteepursuanttoArticle11oftheEU-AR(long-formauditreport).
AUDITOR RESPONSIBLE FOR THE
ENGAGEMENT
TheauditorresponsiblefortheengagementisAnnikaDeutsch.
Hamburg,16March2018
DeloitteGmbHAuditingfirm
(Reiher) (Deutsch)Auditor Auditor
142 Annual Report 2017
STORES
Baden-Wuerttemberg
Aalen Mittelbachstraße 2-6Achern Hauptstraße 16 Albstadt-Ebingen Marktstraße 10Backnang Uhlandstraße 3Baden-Baden Lange Straße 10Bad Mergentheim Marktplatz 7Bad Saulgau Hauptstraße 72Balingen Friedrichstraße 55Biberach Marktplatz 3–5Bietigheim- Bissingen Hauptstraße 41Böblingen Wolfgang-Brumme-Allee 27Bretten Weißhofer Straße 69Bruchsal Kaiserstraße 50Calw Lederstraße 36Crailsheim Karlstraße 17Ehingen Hauptstraße 57Esslingen Pliensaustraße 12Ettlingen Leopoldstraße 13Freiburg Kaiser-Joseph-Straße 193Freudenstadt Loßburger Straße 13Friedrichshafen Karlstraße 47Geislingen Hauptstraße 23Göppingen Marktstraße 9Heidelberg Hauptstraße 77Heidenheim Hauptstraße 19/21Heilbronn Fleiner Straße 28Herrenberg Bronngasse 6-8Karlsruhe Kaiserstraße 163Kirchheim u. Teck Marktstraße 41Konstanz Rosgartenstraße 12Lahr Marktplatz 5Lörrach Tumringer Straße 188Ludwigsburg Heinkelstraße 1-11Ludwigsburg Kirchstraße 2Mannheim Planken O 7, 13Mosbach Hauptstraße 31Nagold Turmstraße 21Offenburg Steinstraße 23Pforzheim Westliche Karl- Friedrich-Straße 29-31Rastatt Kaiserstraße 21Ravensburg Bachstraße 8Reutlingen Wilhelmstraße 65Rottenburg Marktplatz 23Rottweil Königstraße 35Schwäbisch-Gmünd Marktplatz 33Schwäbisch Hall Schwatzbühlgasse 6-8Schwetzingen Mannheimer Straße 18Sindelfingen Mercedesstraße 12Singen August-Ruf-Straße 16Stuttgart Königstraße 68Stuttgart Mailänder Platz 7
Fielmann Stores, Germanyby Federal state, as at 31 March 2018
Stuttgart Marktstraße 45Tübingen Kirchgasse 11Tuttlingen Bahnhofstraße 17Überlingen Münsterstraße 25Ulm Neue Straße 71Villingen Bickenstraße 15Villingen- Schwenningen In der Muslen 35Waiblingen Kurze Straße 40Waldshut-Tiengen Kaiserstraße 52-54Wangen Herrenstraße 28Weinheim Hauptstraße 75Wiesloch Hauptstraße 105
Bavaria
Amberg Georgenstraße 22Ansbach Martin-Luther-Platz 8Aschaffenburg Goldbacher Straße 2Aschaffenburg Herstallstraße 37Augsburg Bürgermeister-Fischer- Straße 12Augsburg Willy-Brandt-Platz 1Bad Kissingen Ludwigstraße 10Bad Neustadt Hohnstraße 14Bad Reichenhall Ludwigstraße 20Bad Tölz Marktstraße 57Bamberg Grüner Markt 5Bayreuth Maximilianstraße 19Cham Marktplatz 12Coburg Mohrenstraße 34Dachau Münchner Straße 42aDeggendorf Rosengasse 1Dillingen Königstraße 16Dingolfing BGR-Josef-Zinnbauer-Straße 2Erding Lange Zeile 15Erlangen Nürnberger Straße 13Erlangen Weiße Herzstraße 1Forchheim Hauptstraße 45Freising Obere Hauptstraße 6Fürstenfeldbruck Hauptstraße 14Fürth Schwabacher Straße 36Garmisch- Partenkirchen Am Kurpark 11Günzburg Marktplatz 19Hof Ludwigstraße 81Ingolstadt Am Westpark 6Ingolstadt Moritzstraße 3Kaufbeuren Kaiser-Max-Straße 30/32Kempten Fischerstraße 28Kulmbach Langgasse 20-22Landshut Altstadt 357/RosengasseLauf an der Pegnitz Marktplatz 53Lohr am Main Hauptstraße 37Marktredwitz Markt 20 Biberach, Marktplatz
Annual Report 2017 143
STORES
144 Annual Report 2017
STORES
Berlin-Charlottenburg, Wilmersdorfer Straße
Annual Report 2017 145
STORES
Memmingen Kramerstraße 24Mühldorf Stadtplatz 27München Hanauer Straße 68München Leopoldstraße 46München Ollenhauerstraße 6München Pasinger Bahnhofsplatz 5München Plinganserstraße 51München Sonnenstraße 1München Tal 23-25München Weißenburger Straße 21München Willy-Brandt-Platz 5Neuburg an der Donau Färberstraße 4Neumarkt in der Oberpfalz Obere Marktstraße 32Neu-Ulm Bahnhofstraße 1Nördlingen Schrannenstraße 1Nürnberg Breite Gasse 64-66Nürnberg Breitscheidstraße 5Nürnberg Glogauer Straße 30-38Nürnberg Hauptmarkt 10Passau Grabengasse 2Pfarrkirchen Stadtplatz 25Ratisbon Domplatz 4Ratisbon Weichser Weg 5Rosenheim Max-Josefs-Platz 5Schwabach Königsplatz 25Schwandorf Friedrich-Ebert-Straße 11Schweinfurt Georg-Wichtermann-Platz 10Sonthofen Bahnhofstraße 3Starnberg Wittelsbacher Straße 5Straubing Ludwigsplatz 15Traunstein Maximilianstraße 17Weiden in der Oberpfalz Max-Reger-Straße 3Weilheim i. OB Marienplatz 12Weißenburg Luitpoldstraße 18Würzburg Kaiserstraße 26
Berlin
Baumschulenweg Baumschulenstraße 18Charlottenburg Wilmersdorfer Straße 121Friedrichshagen Bölschestraße 114Friedrichshain Frankfurter Allee 71-77Gropiusstadt Gropius PassagenHellersdorf Zentrum Helle MitteHohenschönhausen Linden-CenterKreuzberg Kottbusser Damm 32Märkisches Viertel Märkisches ZentrumMarzahn EastgateMitte Grunerstraße 20, AlexaMoabit Turmstraße 44Neukölln Karl-Marx-Straße 151Pankow Breite Straße 15
Prenzlauer Berg Schönhauser Allee 70 cSchöneweide Brückenstraße 4Spandau Breite Straße 22Steglitz Schloßstraße 28Tegel Hallen am BorsigturmTempelhof Tempelhofer Damm 182-184Wedding Gesundbrunnen-CenterWeißensee Berliner Allee 85Westend Reichsstraße 104Zehlendorf Teltower Damm 27
Brandenburg Bernau Börnicker Chaussee 1-2Brandenburg Hauptstraße 43Cottbus Spremberger Straße 10Dallgow-Döberitz Döberitzer Weg 3Eberswalde An der Friedensbrücke 22Eisenhüttenstadt Lindenallee 56Finsterwalde Leipziger Straße 1Frankfurt/Oder Karl-Marx-Straße 10Fürstenwalde Eisenbahnstraße 22Luckenwalde Breite Straße 32Neuruppin Karl-Marx-Straße 87Oranienburg Bernauer Straße 43Potsdam Brandenburger Straße 47aRathenow Berliner Straße 76Schwedt Vierradener Straße 38Senftenberg Kreuzstraße 23Strausberg Große Straße 59Wildau Chausseestraße 1Wittenberge Bahnstraße 28
Bremen Bremen-Huchting Roland-Center Bremen-Neustadt Pappelstraße 131Bremen-Osterholz Weserpark Bremen-Vegesack Gerhard-Rohlfs-Straße 73Bremen-Zentrum Obernstraße 32Bremerhaven Bürgerm.-Smidt-Straße 108Bremerhaven Grashoffstraße 28Bremerhaven Hafenstraße 141
Hamburg Altstadt Mönckebergstraße 29Barmbek-Nord Fuhlsbüttler Straße 122Barmbek-Süd Hamburger MeileBergedorf Sachsentor 21Billstedt Billstedt-CenterBramfeld Bramfelder Chaussee 269Eimsbüttel Osterstraße 120Eppendorf Eppendorfer Landstraße 77Farmsen EKT Farmsen
Harburg Lüneburger Straße 23 Harburg Sand 35Niendorf Tibarg 19Langenhorn Langenhorner Chaussee 692Osdorf Elbe-EinkaufszentrumOthmarschen Waitzstraße 12Ottensen Ottenser Hauptstraße 10Poppenbüttel Alstertal-EinkaufszentrumRahlstedt Schweriner Straße 7Schnelsen Frohmestraße 46Volksdorf Weiße Rose 10Wandsbek Wandsbeker Marktstraße 57
Hesse Alsfeld Mainzer Gasse 5Bad Hersfeld Klausstraße 6Bad Homburg Louisenstraße 87Bensheim Hauptstraße 20-26Darmstadt Ludwigsplatz 1aDarmstadt Schuchardstraße 14Eschwege Stad 19Frankfurt/Main Berger Straße 171Frankfurt/Main Borsigallee 26 Frankfurt/Main Königsteiner Straße 1Frankfurt/Main Leipziger Straße 2Frankfurt/Main Roßmarkt 15Friedberg Kaiserstraße 105Fulda Marktstraße 14Gelnhausen Im Ziegelhaus 12Gießen Seltersweg 61Hanau Nürnberger Straße 23Herborn Hauptstraße 60Kassel Frankfurter Straße 225Kassel Obere Königsstraße 37aKorbach Bahnhofstraße 10Limburg Werner-Senger-Straße 2Marburg Markt 13Neu-Isenburg Hermesstraße 4Oberursel Vorstadt 11aOffenbach Frankfurter Straße 34/36Rüsselsheim Bahnhofstraße 24Sulzbach Main-Taunus-ZentrumWeiterstadt Gutenbergstraße 5Wetzlar Bahnhofstraße 8Wiesbaden Langgasse 3
Mecklenburg-WesternPomerania
Greifswald Lange Straße 94Güstrow Pferdemarkt 16Neubrandenburg Marktplatz 2Neubrandenburg Turmstraße 17-19Neustrelitz Strelitzer Straße 10
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STORES
Parchim Blutstraße 17Rostock Kröpeliner Straße 58Rostock Warnowallee 31bSchwerin Marienplatz 5-6Schwerin Mecklenburgstraße 22Stralsund Ossenreyer Straße 31Wismar Hinter dem Rathaus 19
LowerSaxony Achim Bremer Straße 1bAurich Marktplatz 28Barsinghausen Marktstraße 8Brake Am Ahrenshof 2Bramsche Große Straße 31
Brunswick Casparistraße 5/6Brunswick Platz am Ritterbrunnen 1Buchholz Breite Straße 15Burgdorf Poststraße 1Buxtehude Lange Straße 16Celle Zöllnerstraße 34Cloppenburg Lange Straße 59Cuxhaven Nordersteinstraße 8Delmenhorst Lange Straße 35Diepholz Lange Straße 43Emden Zwischen beiden Märkten 2-4Esens Herdestraße 2Gifhorn Steinweg 67Goslar Fischemäker Straße 15Göttingen Weender Straße 51
Hameln Bäckerstraße 20Hannover Blumenauerstraße 1-7Hannover Engelbosteler Damm 66Hannover Ernst-August-Platz 2 Hannover Hildesheimer Straße 7 Hannover Lister Meile 72Hann. Münden Lange Straße 34Helmstedt Neumärker Straße 1a-3Hildesheim Bahnhofsallee 2Jever Kaakstraße 1Laatzen Marktplatz 11-16Langenhagen Marktplatz 7Leer Mühlenstraße 75Lingen Am Markt 9-10Lohne Deichstraße 4
Greifswald, Lange Straße
Annual Report 2017 147
STORES
Lüneburg Große Bäckerstraße 2-4Melle Markt 12Meppen Markt 27Nienburg Georgstraße 8Norden Neuer Weg 113Nordenham Friedrich-Ebert-Straße 7Nordhorn Hauptstraße 46Northeim Breite Straße 55Oldenburg Lange Straße 27Osnabrück Große Straße 3Osterholz- Scharmbeck Kirchenstraße 19Osterode Kornmarkt 17Papenburg Hauptkanal Links 32Peine Gröpern 11Rinteln Weserstraße 19Rotenburg Große Straße 4Salzgitter In den Blumentriften 1Seevetal Glüsinger Straße 20Soltau Marktstraße 12 Stade Holzstraße 10Stadthagen Obernstraße 9Uelzen Veerßer Straße 16Varel Hindenburgstraße 4Vechta Große Straße 62Verden Große Straße 54Walsrode Moorstraße 66Westerstede Lange Straße 2Wildeshausen Westerstraße 28Wilhelmshaven Marktstraße 46Winsen Rathausstraße 5Wittmund Norderstraße 19Wolfenbüttel Lange Herzogstraße 2Wolfsburg Porschestraße 39Wunstorf Lange Straße 40
NorthRhine-Westphalia
Ahaus Markt 26 Ahlen Oststraße 51Aix-la-Chapelle Adalbertstraße 45-47Arnsberg-Neheim Hauptstraße 33Bad Oeynhausen Mindener Straße 22Bad Salzuflen Lange Straße 45Beckum Nordstraße 20Bergheim Hauptstraße 35Bergisch Gladbach Hauptstraße 142Bielefeld Hauptstraße 78Bielefeld Oberntorwall 25Bielefeld Potsdamer Straße 9Bocholt Osterstraße 35Bochum Kortumstraße 93Bochum Oststraße 36Bonn Kölnstraße 433Bonn Remigiusstraße 16
Bonn Theaterplatz 6Borken Markt 5Bottrop Hochstraße 37-39Brühl Markt 3-5Bünde Eschstraße 17Castrop-Rauxel Münsterstraße 4Coesfeld Letter Straße 3Cologne Barbarossaplatz 4Cologne Frankfurter Straße 34aCologne Kalker Hauptstraße 55Cologne Mailänder Passage 1Cologne Neusser Straße 3Cologne Neusser Straße 215Cologne Rhein-Center Cologne Schildergasse 78-82Cologne Venloer Straße 369Datteln Castroper Straße 24Detmold Lange Straße 12Dinslaken Neustraße 44Dormagen Kölner Straße 107Dorsten Lippestraße 35Dortmund Westenhellweg 67Duisburg Jägerstraße 72Duisburg Königstraße 50Dülmen Marktstraße 3Düren Wirteltorplatz 6Düsseldorf Friedrichstraße 31Düsseldorf Hauptstraße 7Düsseldorf Luegallee 107Düsseldorf Nordstraße 45Düsseldorf Rethelstraße 147Düsseldorf Schadowstraße 63Emsdetten Kirchstraße 6Erkelenz Kölner Straße 14bEschweiler Grabenstraße 78-80Essen Hansastraße 34Essen Limbecker Platz 1aEssen Limbecker Straße 74Essen Rüttenscheider Straße 82Euskirchen Neustraße 41Frechen Hauptstraße 102Geldern Issumer Straße 23-25Gelsenkirchen Bahnhofstraße 15Gelsenkirchen Hochstraße 5Gladbeck Hochstraße 36Goch Voßstraße 20Greven Königstraße 2Grevenbroich Kölner Straße 4-6Gronau Neustraße 17Gummersbach Kaiserstraße 22Gütersloh Berliner Straße 16Hagen Elberfelder Straße 32Haltern am See Rekumer Straße 9Hamm Weststraße 48Hattingen Heggerstraße 23
Heinsberg Hochstraße 129Herford Bäckerstraße 13/15Herne Bahnhofstraße 58Herne Hauptstraße 235Herten Ewaldstraße 12Hilden Mittelstraße 49-51Höxter Marktstraße 27Ibbenbüren Große Straße 14Jülich Kölnstraße 14Iserlohn Wermingser Straße 31Kamen Weststraße 74Kamp-Lintfort Moerser Straße 222Kempen Engerstraße 14Kleve Große Straße 90Krefeld Hochstraße 65Langenfeld Marktplatz 1Lemgo Mittelstraße 76Lengerich Schulstraße 64aLeverkusen Wiesdorfer Platz 15Lippstadt Lange Straße 48Lübbecke Lange Straße 26Lüdenscheid Wilhelmstraße 33Lünen Lange Straße 34Marl Marler SternMenden Hochstraße 20Meschede Kaiser-Otto-Platz 5Minden Bäckerstraße 24Moers Homberger Straße 27Mönchengladbach Hindenburgstraße 104Mönchengladbach Marktstraße 27Mülheim Hans-Böckler-Platz 8Mülheim Humboldtring 13Münster Bodelschwinghstraße 15Münster Klosterstraße 53Münster Rothenburg 43/44Neuss Krefelder Straße 57Oberhausen Bahnhofsstraße 40Oberhausen Marktstraße 94Oer-Erkenschwick Ludwigstraße 15Olpe Martinstraße 29Olsberg Markt 1Paderborn Westernstraße 38Ratingen Oberstraße 15Recklinghausen Löhrhof 1Remscheid Allee-CenterRheinbach Vor dem Dreeser Tor 15Rheine Emsstraße 27Siegburg Kaiserstraße 34Siegen Am Bahnhof 40Siegen Kölner Straße 52Soest Brüderstraße 38Solingen Hauptstraße 50Troisdorf Pfarrer-Kenntemich-Platz 7Unna Bahnhofstraße 24Velbert Friedrichstraße 149
148 Annual Report 2017
STORES
Viersen Hauptstraße 28Waltrop Hagelstraße 5-7Warburg Hauptstraße 54Warendorf Münsterstraße 15Wesel Viehtor 20Witten Bahnhofstraße 48Witten Beethovenstraße 23Wuppertal Alte Freiheit 9Wuppertal Werth 8Wuppertal Willy-Brandt-Platz 1Würselen Kaiserstraße 76
Rhineland-Palatinate
Alzey Antoniterstraße 26Andernach Markt 17Bad Dürkheim Stadtplatz 6Bad Kreuznach Mannheimer Straße 153-155Bad Neuenahr- Ahrweiler Poststraße 12Bingen Speisemarkt 9Bitburg Hauptstraße 33Frankenthal Speyerer Straße 1-3Haßloch Rathausplatz 4
Idar-Oberstein Hauptstraße 393Kaiserslautern Fackelstraße 29Koblenz Hohenfelder Straße 22Koblenz Zentralplatz 2Landau Kronstraße 37Ludwigshafen Im Zollhof 4Mainz Stadthausstraße 2Mayen Neustraße 2Neustadt an der Weinstraße Hauptstraße 31Neuwied Mittelstraße 31Pirmasens Hauptstraße 39Speyer Maximilianstraße 31Trier Fleischstraße 28Wittlich Burgstraße 13/15Worms Kämmererstraße 9-13Zweibrücken Hauptstraße 59
Saarland Homburg Eisenbahnstraße 31Merzig Poststraße 25Neunkirchen Saarpark-CenterSaarbrücken Bahnhofstraße 54Saarlouis Französische Straße 8St. Ingbert Kaiserstraße 57Völklingen Rathausstraße 17
Saxony Annaberg-Buchholz Buchholzer Straße 15aAue Wettiner Straße 2Auerbach Nicolaistraße 15Bautzen Reichenstraße 7Chemnitz Markt 5Chemnitz Wladimir-Sagorski-Straße 22Döbeln Breite Straße 17Dresden Bautzner Straße 27Dresden Dohnaer Straße 246Dresden Webergasse 1Freiberg Burgstraße 5Freital Dresdner Straße 93Görlitz Berliner Straße 61Grimma Lange Straße 56Hoyerswerda D.-Bonhoeffer Straße 6Leipzig Ludwigsburger Straße 9Leipzig Markt 17Leipzig Paunsdorfer Allee 1Meißen Kleinmarkt 2Pirna Schmiedestraße 32Plauen Postplatz 3Radebeul Hauptstraße 27Reichenbach Zwickauer Straße 14Riesa Hauptstraße 95Weißwasser Muskauer Straße 74Zittau Markt 7Zwickau Hauptstraße 35/37
Trier, Fleischstraße
Annual Report 2017 149
STORES
Saxony-Anhalt Aschersleben Taubenstraße 3Bernburg Lindenstraße 20eBitterfeld Markt 9Burg Schartauer Straße 3Dessau Kavalierstraße 49Dessau Poststraße 6Halberstadt Fischmarkt 4aHalle Leipziger Straße 102Halle Neustädter Passage 16Köthen Schalaunische Straße 38Lutherstadt Eisleben Markt 54Lutherstadt Wittenberg Collegienstraße 6Magdeburg Breiter Weg 173Magdeburg Halberstädter Straße 100Merseburg Gotthardstraße 27Naumburg Markt 15Quedlinburg Steinbrücke 18Salzwedel Burgstraße 57Sangerhausen Göpenstraße 18Schönebeck Salzer Straße 8Stendal Breite Straße 6Weißenfels Jüdenstraße 17Wernigerode Breite Straße 14Zeitz Roßmarkt 9
Schleswig-Holstein Ahrensburg Rondeel 8Bad Oldesloe Mühlenstraße 8Bad Segeberg Kurhausstraße 5Brunsbüttel Koogstraße 67-71Eckernförde St.-Nicolai-Straße 23-25Elmshorn Königstraße 47Eutin Peterstraße 3Flensburg Holm 49/51Geesthacht Bergedorfer Straße 45Glinde Markt 6Heide Friedrichstraße 34Husum Markt 2Itzehoe Feldschmiede 34Kiel Holstenstraße 19Kiel Schönberger Straße 84Lübeck Breite Straße 33Mölln Hauptstraße 85Neumünster Großflecken 12Norderstedt Europaallee 4Oldenburg Kuhtorstraße 14Pinneberg Fahltskamp 9Plön Lange Straße 7Rendsburg Torstraße 1Schleswig Stadtweg 28Wedel Bahnhofstraße 38-40Westerland Friedrichstraße 6
Thuringia Altenburg Markt 27Arnstadt Erfurter Straße 11Eisenach Karlstraße 11Erfurt Anger 54Erfurt Thüringen-ParkGera Humboldtstraße 2aGotha Marktstraße 9Greiz Markt 11Ilmenau Straße des Friedens 8Jena Markt 18Meiningen Georgstraße 24Mühlhausen Steinweg 90/91Nordhausen Bahnhofstraße 12-13Rudolstadt Markt 15Saalfeld Obere Straße 1Sonneberg Bahnhofstraße 54Suhl Steinweg 23Weimar Schillerstraße 17
Leipzig, Markt
150 Annual Report 2017
STORES
Switzerland by canton
AargauAarau Igelweid 1Baden Weite Gasse 27Spreitenbach Shoppi TivoliZofingen Vordere Hauptgasse 16
BaselLandLiestal Rathausstrasse 59
BaselCityBasel Marktplatz 16Basel Stücki Shopping Hochbergerstrasse 70
BerneBerne Waisenhausplatz 1Biel Nidaugasse 14
Burgdorf Bahnhofstrasse 15Langenthal Marktgasse 17Thun Bälliz 48
FribourgFribourg Rue de Romont 14
GenevaGeneva Rue de la Croix d‘Or 9
GraubündenChur Quaderstrasse 11
LucerneLucerne Weggisgasse 36-38Sursee Bahnhofstrasse 29
NeuchâtelNeuchâtel Grand-Rue 2
SchaffhausenSchaffhausen Fronwagplatz 10
SchwyzSchwyz Herrengasse 20
SolothurnOlten Hauptgasse 25Solothurn Gurzelngasse 7
St.GallenBuchs Bahnhofstrasse 39Rapperswil Untere Bahnhofstrasse 11St. Gallen Multergasse 8Wil Obere Bahnhofstrasse 50
ThurgauFrauenfeld Zürcherstrasse 173
TicinoBellinzona Via Nosetto 3
Vicenza, Corso Andrea Palladio
Annual Report 2017 151
STORES
Lugano Via Pietro Peri 4
ValaisBrig-Glis Kantonsstrasse 58Sion Avenue du Midi 10
VaudLausanne Rue du Pont 22
ZugZug Bahnhofstrasse 32
ZurichBülach Bahnhofstrasse 11Thalwil Gotthardstrasse 16bUster Zürichstrasse 20Winterthur Marktgasse 74Zurich Bahnhofstrasse 83Zurich Schaffhauserstrasse 355
Austria by state
BurgenlandOberwart Wienerstrasse 8a
CarinthiaKlagenfurt St. Veiter Ring 20Villach Hauptplatz 21
LowerAustriaAmstetten Waidhofnerstraße 1 + 2Baden Pfarrgasse 1Krems Wiener Straße 96-102Mödling Schrannenplatz 6 St. Pölten Kremser Gasse 14Vösendorf-Süd Shopping-City SüdWiener Neustadt Herzog-Leopold-Straße 9
UpperAustriaLinz Blütenstraße 13-23Linz Landstraße 54-56Pasching bei Linz Pluskaufstraße 7Ried im Innkreis Hauptplatz 42Vöcklabruck Linzer Straße 50Wels Bäckergasse 18
SalzburgSalzburg Alpenstraße 114Salzburg Europastraße 1/Europark
StyriaGraz Herrengasse 9Kapfenberg Wiener Straße 35a Leoben Dominikanergasse 1 Seiersberg/Graz Shopping City Seiersberg 5
TyrolInnsbruck Maria-Theresien-Straße 6 Innsbruck Museumstraße 38Wörgl Bahnhofstraße 33
VorarlbergBregenz Kaiserstraße 20Bürs ZimbaparkDornbirn Messepark
ViennaVienna Auhof Center Vienna Favoritenstraße 93Vienna Grinzinger Straße 112Vienna Landstraßer Hauptstraße 75-77Vienna Mariahilfer Straße 67Vienna Meidlinger Hauptstraße 38Vienna Shopping-Center-NordVienna Thaliastraße 32Vienna Wagramer Straße 81
Italy by region
Emilia-RomagnaPiacenza Via XX Settembre 112/114
LombardyBergamo Via XX Settembre 89Brescia Corso G. Zanardelli 8Varese Corso Matteotti 22/24
Trentino-AltoAdigeBolzano Via Museo 15Bressanone Via Portici Minori 1Merano Via Cassa di Risparmio 9Trento Via Oss Mazzurana 24
VenetoVerona Via delle Nazioni 1, AdigeoVerona Via Mazzini 64Vicenza Corso Andrea Palladio 78
LuxembourgEsch sur Alzette 13, rue de l ‘AlzetteLuxembourg 9-11, Grand-Rue
NetherlandsEmmen Picassopassage 74Enschede Kalanderstraat 17Nijmegen Broerstraat 31
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Poland by voivodeship
GreaterPolandPoznan Galeria Pestka, Al. Solidarnosci 47
Poznan ul. Sw. Marcin 69
LittlePolandKraków Bonarka City Center, ul. Gen. H. Kamienskiego 11Kraków Galeria Krakowska, ul. Pawia 5
Kujawiea-PommeraniaBydgoszcz Galeria Zielone Arkady, ul. Wojska Polskiego 1
ŁódzŁódz Galeria Łódzka Al. Józefa Piłsudskiego 23Łódz ul. Piotrkowska 23
MasowiaPłock Galeria Wisła, ul. Wyszogrodzka 144Radom Galeria Słoneczna, ul. Bolesława Chrobrego 1
LowerSilesiaLegnica ul. Najswietszej Marii Panny 5dWrocław Galeria Dominikanska, Pl. Dominikanski 3
PommeraniaGdansk Galeria Bałtycka, Al. Grunwaldzka 141Gdynia Centrum Handlowe Riviera, ul. Kazimierza Górskiego 2
SilesiaBytom Galeria Agora, Plac Tadeusza Kosciuszki 1 Chorzów ul. Wolnosci 30 Czestochowa Galeria Jurajska, Al. Wojska Polskiego 207Gliwice ul. Wyszynskiego 8 Katowice ul. 3 Maja 17
WesternPommeraniaKoszalin C.H. Atrium, ul. Paderewskiego 1Szczecin Al. Wojska Polskiego 15
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Fielmann plants a tree for every
employeeeachyearandiscommitted
toprotectingnatureandtheenviron-
ment. To date, Fielmann has planted
morethanoneandahalfmilliontrees.
Fielmann Aktiengesellschaft · Weidestraße 118 a · D-22083 Hamburg · Telephone: +49(0)40/27076-0Fax: +49(0)40/27076-399 · Mail: [email protected] · Internet: www.fielmann.com