SIMONA AGInvestorRelationsTeichweg16D-55606Kirn
Phone+49 (0) 67 5214-0Fax +49 (0) 67 5214-211
11FinancialReportofSIMONAGroupandSIMONAAG 02May2011
AnalystConferencefor2010AnnualResults(Frankfurt) 04May2011
InterimAnnouncementwithintheFirstHalf 04May2011
AnnualGeneralMeeting 01July2011
PublicationofGroupFinancialReport(Half-Year) 24August2011
InterimAnnouncementwithintheSecondHalf 09November2011
FinancialCalendar
SIMONAworldwide➝
01 COMpANY
ManagementBoard 02
LettertoShareholders 03
KeyEvents 04
StockPerformanceandCapitalMarkets 06
ReportbytheSupervisoryBoard 07
CorporateGovernanceReport 11
GoverningBodies 14
Shareholdings 15
02 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions 17
FinancialPerformance 23
FinancialAssetsandLiabilities 24
FinancialPosition 24
EventsaftertheReportingDate 26
RiskReport 26
ReportonExpectedDevelopments 27
OtherInformation 28
03 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement 36
GroupStatementofComprehensiveIncome 37
GroupStatementofFinancialPosition 38
NotestoConsolidatedFinancialStatements 39
GroupStatementofCashFlows 74
GroupStatementofChangesinEquity 75
DetailsofShareholdings 76
Auditor’sReport 77
OtherInformation 78
04 FINANCIAl StAteMeNtS OF SIMONA AG (eXCerpt)
BalanceSheet 80
IncomeStatement 82
OtHer
Imprint 84
FinancialCalendar Cover
SIMONAWorldwide Cover
2010SIMONA Group – Consolidated Financial Statements
SIMONA AMerICA Inc.
SIMONA S.A. paris
SIMONA AG Werk III
SIMONA-plAStICS CZ, s.r.o.
SIMONA FAr eASt lIMIted
SIMONA uK lIMIted
SIMONA AG SCHWeIZ
SIMONA pOlSKA Sp. z o.o.
SIMONA eNGINeerING plAStICS (Guangdong) Co. ltd.
SIMONA eNGINeerING plAStICS trAdING (Shanghai) Co. ltd.
SIMONA AG SIMONA plast-technik s.r.o.
SIMONA IBerICA SeMIelABOrAdOS S.l.
SIMONA S.r.l. ItAlIA
SIMONAworldwide
SIMONA GrOup*
2010 2009 2008
Revenue € m 267.4 215.1 303.7
Year-on-yearchange % 24.3 –29.2 1.3
ofwhichabroad € m 176.8 138.6 191.6
ofwhichabroad % 66.1 64.4 63.1
Staffcosts € m 55.9 55.3 58.2
Profitbeforetaxes € m 10.5 7.1 20.2
Profitfortheyear € m 7.2 5.0 13.9
Netcashfromoperatingactivities € m 3.1 28.2 44.7
EBIT € m 10.1 7.3 19.8
EBIT % 3.8 3.4 6.5
EBITDA € m 22.7 21.9 32.3
EBITDA % 8.5 10.2 10.6
Totalassets € m 245.0 244.7 244.8
Equity € m 162.2 157.5 157.6
Non-currentassets € m 89.4 94.3 97.1
Investmentsinproperty,plantandequipment € m 6.5 11.6 21.2
Employees(annualaverage) 1,218 1,230 1,237
*basedonIFRS
KeyFinancials
reVeNue ANd eBIt SIMONA GrOup
in € millions
300 24
250 20
200 16
150 12
100 8
50 4
0 0 Totalrevenue
2008 2009 2010 EBIT
reVeNue BY reGION SIMONA GrOup
in%
Germany
RestofEurope&Africa
Asia,America&Australia
51.9 53.4 49.6
11.3 11.2 16.6
36.8 35.4 33.8
2008 2009 2010
prOduCtION SIteS
plant I/IITeichweg16D-55606KirnGermanyPhone +49 (0) 67 5214-0Fax +49 (0) 67 5214-211
plant IIIGewerbestraße1–2D-77975RingsheimGermanyPhone +49 (0) 7822436-0Fax +49 (0) 7822436-124
SIMONA plast-technik s.r.o.UAutodílen23CZ-43603Litvínov-ChudeřínCzechRepublic
SIMONA AMerICA Inc.64N.ConahanDriveHazleton,PA18201USA
SIMONA eNGINeerING plAStICS (Guangdong) Co. ltd.No.368JinouRoadHigh&NewTechnologyIndustrialDevelopmentZoneJiangmen,GuangdongChina529000
SAleS OFFICeS SIMONA S.A. parisZ.I.1,rueduPlantLogerF -95335DomontCedexPhone +33 (0) 139 35 4949Fax +33 (0) 139 [email protected]
SIMONA uK lIMItedTelfordDriveBrookmeadIndustrialParkGB-StaffordST163STPhone +44 (0) 1785222444Fax +44 (0) [email protected]
SIMONA AG SCHWeIZIndustriezoneBäumlimattstraße16CH-4313MöhlinPhone +41 (0) 618 55 9070Fax +41 (0) 618 55 [email protected]
SIMONA S.r.l. ItAlIAViaPadanaSuperiore19/BI -20090Vimodrone(MI)Phone +390225 08 51Fax +390225 08 [email protected]
SIMONA IBerICA SeMIelABOrAdOS S.l.DoctorJosepCastells,26–30PolígonoIndustrialFonollarE-08830SantBoideLlobregatPhone +3493 635 4103Fax +3493 630 88 [email protected]
SIMONA AG
teichweg 16d-55606 KirnGermanyPhone +49 (0) 67 5214-0Fax +49 (0) 67 [email protected]
SIMONA-plAStICS CZ, s.r.o.Zdebradskául.70CZ-25101Rícany-JazlovicePhone +420 323 6378 3-7/-8/-9Fax +420 323 6378 [email protected]
SIMONA pOlSKA Sp. z o.o.ul.H.Kamienskiego201–219PL-51-126WrocławPhone +48 (0) 713 52 80 20Fax +48 (0) 713 52 [email protected]
SIMONA FAr eASt lIMItedRoom501,5/FCCTTelecomBuilding11WoShingStreetFoTanHongkongPhone +85229 47 01 93Fax +85229 47 01 [email protected]
SIMONA eNGINeerING plAStICS trAdING (Shanghai) Co. ltd.RoomC,19/F,BlockAJiaFaMansion129DaTianRoad,JingAnDistrictShanghaiChina200041Phone +862162670881Fax [email protected]
SIMONA AMerICA Inc.64N.ConahanDriveHazleton,PA18201USAPhone +1866 501 2992Fax +1800 522 [email protected]
StOCK dAtA
2010 2009 2008
Earningspershare € 12.00 8.31 23.20
Dividend € 6.50 6.00 8.50
Dividendyield 2.1 1.9 2.6
P/Eratio* 26.3 38.1 14.0
Marketcapitalisation-over-equityratio* 1.17 1.21 1.23
sharepriceasatDec.31 € 315.00 317.00 324.00
*Eachcalculatedonconsolidatedbasis
2
01 GrOup MANAGeMeNt repOrt
1.BusinessActivitiesand
GeneralConditions 5
2.FinancialPerformance 11
3.FinancialAssetsandLiabilities 12
4.FinancialPosition 12
5.EventsaftertheReportingDate 14
6.RiskReport 14
7.ReportonExpectedDevelopments 15
8.OtherInformation 16
02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement 24
GroupStatementofComprehensiveIncome 25
GroupStatementofFinancialPosition 26
NotestoConsolidatedFinancialStatements 27
GroupStatementofCashFlows 62
GroupStatementofChangesinEquity 63
DetailsofShareholdings 64
Auditor’sReport 65
OtherInformation 66
03 SIMONA WOrldWIde
Contents
3
1.BusinessActivitiesandGeneralConditions 05
2.FinancialPerformance 11
3.FinancialAssetsandLiabilities 12
4.FinancialPosition 12
5.EventsaftertheReportingDate 14
6.RiskReport 14
7.ReportonExpectedDevelopments 15
8.OtherInformation 16
GroupManagementReport
1. BuSINeSS ACtIVItIeS ANd GeNerAl CONdItIONS
1.1. Organisation and legal structure of the SIMONA
Group
TheSIMONAGroupdevelops,manufacturesandmar-
ketsarangeofsemi-finishedthermoplastics,pipesand
fittingsaswellasfinishedparts.Thematerialsused
includepolyethylene(PE),polypropylene(PP),polyvinyl
chloride(PVC),polyethyleneterephthalate(PETG),poly-
vinylidenefluoride(PVDF)andethylene-chlorotrifluor-
oethylene(E-CTFE)aswellasvariousspecialistmateri-
als.Theproductionmethodsappliedwithinthisarea
rangefromextrusion,pressingandinjectionmouldingto
CNCmanufacturing.SIMONAalsomaintainsitsown
plasticslaboratoriesandworkshopsfortheproduction
ofcustomisedfittings.Semi-finishedproductsare
deployedmainlywithintheareaofchemicalequipment
andmechanicalengineering,thetransportindustry,the
constructionsector,theexhibitionanddisplaysectoras
wellastheautomotiveindustry.Pipesandfittingsare
usedprimarilyfordrinking-watersupply,sewagedis-
posalandindustrialpipingsystems,includingthe
chemicalprocessindustry.Finishedpartsaredestined
inparticularforthemechanicalengineeringandtrans-
porttechnologysectors.
TheSIMONAGroupmarketsitsproductsworldwide.The
salesstructureisprimarilybasedonthefollowingthree
salesregions:
� Germany
� RestofEuropeandAfrica
� Asia,AmericaandAustralia
Thesecondarysegmentsarecentredaroundproduct
areas(semi-finishedproductsaswellaspipesandfit-
tings).SalesactivitiesatGrouplevelareconductedby
SIMONAAGandsubsidiariesintheUnitedKingdom,
Italy,France,Spain,Poland,theCzechRepublic,Hong
Kong,ChinaandtheUnitedStates,bothdirectlyandvia
tradingpartners.Beyondthis,theAG(i.e.theparent
company)operatesasalesofficeinMöhlin,Switzerland.
Theparentcompany,SIMONAAG,hasitsregistered
officein55606Kirn(Germany).Intheperiodunder
review,theSIMONAGroupoperatedfacilitieslocatedin
Germanyandabroad.Semi-finishedproducts(sheets,
rods,weldingrods)aremanufacturedattwoplantsin
Kirn(Rhineland-Palatinate),whilesheetswereproduced
atthecompany’splantinKirchhundem-Würdinghausen
(NorthRhine-Westphalia)andpipes,fittingsandfinished
partsatafacilityinRingsheim(Baden-Württemberg).
ThefacilitybasedinHazleton(Pennsylvania,USA)man-
ufacturesextrudedsemi-finishedproductsdestined
mainlyfortheAmericanmarket.TheplantinLitvinov,
CzechRepublic,producessheetsandpipes,primarily
fortheEasternEuropeanmarket,whilethesiteinJiang-
men,China,manufacturesextrudedsheets.Thefactory
inKirchhundem-Würdinghausenwascloseddowneffect-
ivefrom30September2010.
InthefinancialyearunderreviewtheManagement
BoardconsistedofWolfgangMoyses(Chairman/CEO),
DirkMöller(DeputyChairman,since1May2010),
DetlefBeckerandJochenFeldmann(until10August
2010).In2010,themembersoftheSupervisoryBoard
includedHans-WernerMarx(Chairman),Dr.RolfGößler
(DeputyChairman),RolandFrobelandDr.RolandReber
asshareholderrepresentatives,aswellasBernd
MeurerandKarl-ErnstSchaab(until31August2010),
whorepresentedstaffinterests.
01 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions
FinancialPerformance
FinancialAssetsandLiabilities
FinancialPosition
EventsaftertheReportingDate
RiskReport
ReportonExpectedDevelopments
OtherInformation
02GROUPFINANCIALSTATEMENTS 04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
5
1.2. Business review
Significant growth in revenue
Theoverallrecoveryoftheworldeconomywasfaster
thananticipatedfollowingtheslumpinducedbythe
globalfinancialandeconomiccrisis.Afteradownturn
of0.9percentin2009,globalgrossdomesticproduct
rosesignificantlybyanestimated5percent.Having
saidthat,theworldeconomylostitsforwardmomentum
astheyearprogressed,withglobaltradefailingto
expandsignificantlyinthesecondhalfof2010.Global
economicperformancein2010clearlyillustratedthe
growingimportanceoftheemergingmarketswithinthe
contextofinternationaltrade.Whiletheemergingmar-
ketsinAsiareturnedtotheirpre-crisislevelsin2010,
productionintheindustrialisedcountriesagainfell
shortofthefiguresrecordedpriortotheeconomic
downturn.
Againstthisbackdrop,SIMONAAGsawitssalesrev-
enuerisesignificantlyfromMarch2010onwards,after
asluggishstarttotheyear.Remainingbuoyantuntilthe
endofthefinancialyear,salesrevenueincreasedby
24.3percentyearonyearto€ 267.4millionforthe
annualperiodasawhole(2009:€ 215.1million).Much
oftheimpetuscamefrommoreexpansiveinvestments
inmachineryandequipment,particularlyinthechemi-
calandmechanicalengineeringindustry.Revenuegen-
eratedbytheparentcompany,SIMONAAG,rosefrom
€ 191.1millionayearagoto€ 232.5millionin2010,
ayear-on-yearincreaseof21.7percent.
Germany
InGermany,GDPgrewby3.5percentin2010asa
whole–adjustedforpricesandworkingdays–andwas
dominatedbyreboundingmarketsastheeconomy
emergedfromthecrisis.Facedwithadouble-digitdown-
turnineconomicoutputoverthecourseof2009,the
manufacturingsector,inparticular,recordedastrong
performanceintermsofgrossvalueadded,whichrose
byanimpressive10.3percentin2010.Exportsrose
by14.2percentinthesameperiod.Investmentsin
machineryandequipmentwereup9.4percentonthe
figurerecordedin2009,althoughthisareahadbeen
worsthitbytheeconomicdownturn.Recoveryslowed
downslightlyinthefourthquarter,withGDPrisingby
just0.4percentcomparedtothepreviousquarter.
Exportsalsoprovedbuoyantinthefourthquarter,witha
year-on-yearincreaseof15.9percentintermsofgoods
andservicessoldabroad.
deVelOpMeNt OF reVeNue SIMONA GrOup
in€ m
300
275
250
225
200
175
150
125
100
2008 2009 2010
GrOup MANAGeMeNt repOrt
+1.3%
– 29.2%
+ 24.3%
6
review of the principal sales segments and plastics
processing industry in 2010
TheGermanchemicalindustryrecordedan11percent
increaseinproductionvolume,withrevenuesexpanding
by17.5percent.Withinthiscontext,foreignmarkets
providedmuchoftheimpetus.Growthwaslesspro-
nouncedinthesecondhalfoftheyear.Germany’s
mechanicalandplantengineeringindustrymanagedto
expanditsproductionoutputby8.8percentin2010.
Orderintakeroseby36percentinrealterms,with
domesticordersincreasingby29percentandnon-
domesticordersexpandingby39percent.Theoverall
exportratiowithinthissectorroseto74.8percent
(2009:73.6percent).Thesolidperformancein2010is
reflectedinthelevelofcapacityutilisation,whichwasup
from72.5percentin2009to79.8percentin2010.
Afterthesignificantdeclinerecordedin2009,theinter-
nationalexhibitionandtradefairindustryinGermanywas
facedwithasluggishrecoveryintheperiodunderreview,
mainlyduetothefactthatstreamliningmeasuresagreed
in2009remainedinplacetosomeextent.Basedonini-
tialestimates,exhibitornumbersroseby1percent
(2009:–4percent),whiletheoverallnumberofvisitors
recededslightlyby2percent(2009:–8percent).
TheGermanconstructionindustryalsofailedtokeepup
withthegeneralpaceofeconomicrecoveryintheperiod
underreview.Revenuesintheprincipalconstruction
sectorcontractedby1percent(2009:–4percent)in
nominalterms.Thisdeclinewasattributabletothe
adverseeffectsfeltwithinthecommercialconstruction
sector(–4.5percent)andinthepublic-sectorsegment
(–3percent).
Basedonpreliminaryfigures,Germany’splastics-
processingindustrymanagedtoliftrevenuesby14per
centto€ 51.3billionin2010,thusalmostreturningto
thelevelrecordedin2008.At12.2milliontonnes,the
volumeofplasticsprocessedalsomovedcloser
towardsthefigureachievedin2008.Amongthe
principalgrowthdriversweresuppliersoftechnicalcom-
ponents,whoaccountedfor23percentofoverall
growth.Withintheareaofconsumerandotherplastic
goods,totalrevenueincreasedby14.7percentto
€ 16.4billion.Theconstructionsectorrecordedgrowth
of5percent,takingitstotalrevenueto€ 10.8billion.
Theplasticspackagingindustry,thelargestsegment
withintheplastics-processingsector,sawitsgrossout-
putriseby14percentto€ 12.2billion.Intermsof
value,however,thefigurewasdown2percentonlast
year’stotal.Thepositiveperformancewasdrivenmainly
byforeigntrade.At+15.5percent,exportsattributable
totheplastics-processingindustryoutpaceddomestic
sales(+14percent).Theexportratiorosefrom34.3
percentto35.7percentin2010.
Withcustomersinthechemicalandmechanicalengi-
neeringindustry–akeymarketforSIMONA–expanding
theircapitalexpenditureonmachineryandbenefiting
frombuoyantexports,SIMONAsawitsrevenuesurgein
theperiodunderreview.Salesrevenuesgeneratedin
Germanyroseby18.4percentto€ 90.6million(2009:
€ 76.5million).
01 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions
FinancialPerformance
FinancialAssetsandLiabilities
FinancialPosition
EventsaftertheReportingDate
RiskReport
ReportonExpectedDevelopments
OtherInformation
02GROUPFINANCIALSTATEMENTS 04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
7
Revenuebyproductgroup
70,6 € MIllIONS
SIGNIFICANt GrOWtH IN SAleS VOluMeS
Intheareaofsemi-finishedproducts,salesvolumesofPEandPPsheetsusedintankandapparatusconstructionrosesharply.Busi-
nessrelatingtofinishedpartsaswellasplasticsheetsdestinedforthephotovoltaicsandsolarpowerindustryalsodevelopedwell.The
GrouprecordedsignificantgrowthintheareaofPPpipesforindustrialapplications,whereasrevenuegeneratedthroughPEpipescon-
tracted.
+31,6 %+7,8 %
196,8 € MIllIONS
SeMI-FINISHed prOduCtS
pIpeS ANd FIttINGS
8
europe and Africa
Grossdomesticproductintheeurozoneexpandedby
1.7percentin2010(prev.year:–4.0percent),while
theEU27regionrecordedgrowthof1.8percentinthe
sameperiod(prev.year:–4.2percent).
EconomicgrowthintheMiddleEastandNorthAfrica
stoodat3.9percentin2010.
RevenuefromsalesintheRestofEuropeandAfrica
alsorosesharplyduringtheperiodunderreview.In
WesternEurope,themostimportantmarketfor
SIMONA,thedownturnseenin2009hadnotbeenas
pronouncedasinotherregions.Asaresult,revenue
growthin2010wasbelowaverage.Intotal,theRestof
EuropeandAfricaaccountedforsalesrevenueof
€ 132.7million(2009:€ 115.4million).Thisrepres-
entsanincreaseof15.0percentcomparedto2009.
Asaregion,theRestofEuropeandAfricaaccountedfor
49.6percentoftotalrevenuegeneratedbySIMONA
AG,downonlastyear’sfigureof53.6percent.
America, Asia and Australia
At2.8percent(2009:–2.6percent),theUSeconomy
grewatalesspronouncedratethanmanyoftheother
industrialisedeconomies.NotonlyweretheAsianmar-
ketsthefirsttobeaffectedbytheeconomicandfinan-
cialcrisis,theyalsoborethebruntofthedownturn.On
amorepositivenote,theyledthewaywhenitcameto
economicrecovery.BothChina(+10.3percent)and
India(+9.7percent)returnedtotheirpre-crisislevelsof
growthin2010.SIMONAwasabletoreaptherewards
ofthistrendbygeneratingabove-averagerevenue
growthinAsia.InNorthAmerica,bycontrast,business
grewatalowlevel.Intotal,revenuefromsalesinAsia,
AmericaandAustraliaroseby82.9percentto€ 44.5
million.Asaresult,thisregionaccountedfor16.6per
centoftotalsalesrevenue,asignificantyear-on-year
increase.
Strong expansion of sales volumes of pe and pp
sheets as well as specialty plastics – Above-average
revenue growth for pipes and fittings
Intheareaofsemi-finishedproducts,salesvolumesof
PEandPPsheetsusedintanksandapparatusengin-
eeringrosesharplyin2010.Businessrelatingtoplastic
sheetsusedbythephotovoltaicsandsolarindustry
alsodevelopedwellintheperiodunderreview.Bycon-
trast,businesscentredaroundPVCsheetswasmore
sluggish.SIMONAalsosawafurtherincreaseinthe
overallsalesvolumeoffinishedparts.Productsmade
ofspecialtyplasticsshowedmoreforwardmomentum
thanbusinesswithintheareaofsemi-finishedplastics.
Intotal,revenuegeneratedfromsemi-finishedproducts
stoodat€ 196.8million,ayear-on-yearincreaseof
31.6percent.
SIMONA reVeNue BY reGION
in%
Germany
RestofEuropeandAfrica
Asia,America,Australia
01 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions
FinancialPerformance
FinancialAssetsandLiabilities
FinancialPosition
EventsaftertheReportingDate
RiskReport
ReportonExpectedDevelopments
OtherInformation
02GROUPFINANCIALSTATEMENTS
2010
17
34
50
2009
11
35
54
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
9
Withintheareaofpipingsystems,thecompanyalso
succeededinexpandingsalesrevenues,albeitata
muchlesspronouncedratethanintheareaofsemi-fin-
ishedplastics.SalesvolumesofPPpipesforindustrial
applicationsrosesignificantly,whereasrevenuesgener-
atedintheareaofPEfittingsweredown.Thepipesand
fittingsproductsegmentrecordedrevenuegrowthof7.8
percentto€ 70.6millionintotal.
product development for safety-critical and
eco-specific applications
SIMONApursuesproductdevelopmentatvariouslevels.
OurTechnicalServiceCentreisresponsibleforreviewing
customerrequirementsandrefiningexistingproductsby
makingwell-judgedalterationstopolymerproperties,e.g.
bychangingthebasicformula.TheNewProducts&Applica-
tionsunitworksinclosecollaborationwithourproduct
managementtotestnewmaterialsanddevelopplastics
fornewfieldsofapplication.Committedtopromoting
energy-efficientartificialicerinks,SIMONAdeveloped
SIMONA®Eco-Ice®andlaunchedthenewproductatthe
beginningof2010.Incontrasttoconventionalicerinks,
installationsusingSIMONA®Eco-Ice®canbeoperated
withoutcoolingpipesandcoolantsforiceproduction.
Theiceskatescanbeuseddirectlyontheplasticpanels,
whicharesecurelyjoinedtooneanothertoformanice
rinksurface.SIMONA®Eco-Ice®issuppliedinvariouspol-
yethylenedesigns:PE-HD(highheatresistance),PE-HMW
(highmolecularweight)andPE-UHMW(ultra-highmolecu-
larweight).Inmid-2010,thesystemwasextendedto
includeperimeterboardsmadeofPEFOAMtwin-wall
sheets.Indehoplast®x-detect,anultrahigh-molecular-
weightpolyethylene,SIMONAhasdevelopedapremium
productforthefoodandpharmaceuticalindustries.In
theeventofafracture,evensmallplasticparticlescan
bedetectedinfoodbymeansofmetaldetectors.Devel-
opedin2009,thePVCsheetSIMOSHIELDfordoors,
manufacturedonthebasisofinlinefoilingtechnology,
waslaunchedontothemarketinearly2010.ThePVC
free-foamsheetSIMOPOR-DIGITAL,whichwasdeveloped
fordigitaldirectprinting,wasalsolaunchedontotheEuro-
peanmarketin2010.Withintheareaofpolyolefins,we
carriedouttechnicalrefinementstothefoamedsheets
PEFOAMandPPFOAM.ThePEFOAMlinewasextended
toincludeatwin-wallsheetthatisusedprimarilyfor
perimeterboardsandhousingsaswellasnoiseandheat
insulation.
Inthefieldofpipingsystems,welaunchedanadvanced
SIMONA®PP-HAlphaPlus®pipingsystemtailoredspecific-
allytothegeothermalindustry;itiscapableofwithstand-
ingextremethermal,mechanicalandhydraulicstresses.
Elsewhere,theSIMOFUSE®joiningmethod,firstdevel-
opedforwastewatermanagementinnon-pressurised
applications,hasbeenrefinedtomeettherequirements
ofthepowersupplyindustryanditsdemandsforsustain-
ablesolutions.SIMOFUSE®pipemodulescanbesupplied
indiametersofupto1,000mm.Followingthesuccessful
marketlaunchofprotective-jacketpipesmadeofPE,
SIMONA–asthefirstmanufacturerworldwide–commis-
sionedanindependenttestingunittoassessthefullRC
(ResistancetoCracking)fittingsportfolioinaccordance
withPAS1075.Thetestresultswerehighlyencouraging.
Inpipeextrusion,initialproductiontestingwasconducted
forpipeswithawear-resistantinteriorskin.Theaimisto
developapipewithahighlevelofabrasionresistancefor
thetransportofsolidmaterials.
Researchanddevelopmentexpensesaremainlycom-
prisedofstaffcosts,materialcostsanddepreciation/
amortisationofnon-currentassets.Owingtotheinterrela-
tionshipbetweencustomer-specificmanufacturingproce-
dures,optimisationmeasureswithintheareaofprocess
engineeringandformulaeaswellasproductdevelopment
itself,theabove-mentionedexpensescannotbeclearly
segregatedfromproductioncosts.
GrOup MANAGeMeNt repOrt
10
2. FINANCIAl perFOrMANCe
earnings
Againstthebackdropofgradualeconomicrecovery,the
SIMONAGroupsawitsearningsbeforeinterest,taxes
andincomefromequityinvestments(EBIT)riseby€ 2.8
millionto€ 10.1million.TheEBITmarginstoodat3.8
percent,upfromamarginof3.4percentlastyear.
Rawmaterialpricescontinuedtospiraloverthecourse
of2010.Withinthiscontext,theGroupwasunableto
passonthesepricehikesinfull.Asaresult,theper-
centageincreaseinexpensesrelatingtorawmaterials
andconsumableswasmorepronouncedthanthelevel
ofrevenuegrowth.Intotal,thecostofmaterialsroseby
49percentyearonyearto€ 154.4million(2009:
€ 103.7million).Followingasignificantreductionin
2009,thecostsattributabletoenergyandwateredged
upby€ 0.9millionintheperiodunderreviewasa
resultofhigherproductionoutput.
Inviewofexpandingsales,thegrossprofitfor2010
roseby€ 8.5millionto€ 125.5million,whichrepre-
sents47percentofrevenue.
Owingtohighercommoditypricesandinventorystream-
lining,thechangeininventories,aspresentedinthe
incomestatement,amountedto€ 5.3million.
Otheroperatingincomecontractedmarginally,down
€ 0.2millionto€ 7.2million.
At€ 55.9million,staffcostswereslightlyhigherthan
thefigurerecordedayearago(2009:€ 55.3million).
Depreciationofproperty,plantandequipmentand
amortisationofintangibleassetsfellby€ 1.9millionto
€ 12.6millionasaresultofimpairmentchargesrecog-
nisedin2009.
Otheroperatingexpensesroseby€ 7.1millionto
€ 46.9million.Againstthebackdropofmoreexpansive
business,theGroupincurredhighercostsrelatingto
outwardfreightandpackaging,inparticular,aswellas
seeingariseinmaintenancecostsformanufacturing
systems.
Theperformancesoftheindividualsubsidiariesdiffered
fromregiontoregion.Withinthiscontext,earningsper-
formancewasencouraginginPoland,theUnitedKing-
domandtheCzechRepublic.Bycontrast,theresults
postedinItalyandparticularlyFrance,whichincurred
lossesasaresultofrestructuringmeasures,wereless
satisfactory.
TheproductioncompanyintheCzechRepublicisoper-
atingataprofitablelevel.
TheUS-basedsubsidiarypostedaloss,althoughits
earningsperformanceimprovedmarkedlyinayear-on-
yearcomparison.Aprofithasbeenbudgetedforfiscal
year2011.
TheperformanceofoursalescompaniesinAsia
improvedsubstantiallyintheyearunderreview.Our
plantinChinaisstillinthestart-upphaseandhasyet
togenerateaprofit.
01 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions
FinancialPerformance
FinancialAssetsandLiabilities
FinancialPosition
EventsaftertheReportingDate
RiskReport
ReportonExpectedDevelopments
OtherInformation
02GROUPFINANCIALSTATEMENTS 04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
11
eBIt margin
ThekeyfinancialindicatorsusedbySIMONAforthepur-
poseofanalysingandcontrollingoperatingresultsare
EBIT(earningsbeforeinterestandtaxes)andEBITDA
(earningsbeforeinterest,taxes,depreciationandamor-
tisation).EBITrepresentstheoperatingresultbefore
interestandtaxesaswellastheeffectsofequity
investments.InthecaseofEBITDA,non-cashdeprecia-
tionofproperty,plantandequipmentaswellasamorti-
sationofintangibleassetsareaddedtotheEBITfigure.
BothEBITandEBITDAcanthusbeusedforthepurpose
ofevaluatingacompany’searningsperformance,in
additiontoprovidinganapproximationofcashflow.
Earningsbeforeinterestandtaxesamountedto€ 10.1
million,resultinginanEBITmarginof3.8percent.
EBITDAatGrouplevelroseslightlyto€ 22.7million
(2009:€ 21.9million),withamortisationofintangible
assetsanddepreciationofproperty,plantandequip-
mentcontractingyearonyear.At8.5percent,the
EBITDAmarginremainedjustunderthefigureof10.2
percentrecordedinpreviousfinancialyear.
3. FINANCIAl ASSetS ANd lIABIlItIeS
Thefinancialassetsmainlycomprisecashandshort-
termbankdepositstotalling€ 39.3million(2009:
€ 61.5million).Additionally,theGroupmadeasecur-
itiesinvestmentincoveredbonds(Pfandbriefe)totalling
€ 10.0millionin2010.
Non-currentfinancialliabilitieswerescaledbackby
€ 2.1millionto€ 4.8millioninthefinancialyearunder
review.Thereductionwasattributabletotheearlyrepay-
mentofaloanamountingtoGBP2.0millioninrespect
ofSIMONAUKLtd.,whichwasreplacedbyGroupfunds.
In2010,currentfinancialliabilitiesdeclinedasaresult
ofthescheduledrepaymentofaUSD5.0millionloan,
theprincipalbeingdueatthefinalmaturitydate.Along-
sidecurrentfinancialliabilities,theGrouphadaddi-
tionalfinancialliabilitiesof€ 0.2millioninconnection
withaninterestrateswaptohedgetheriskassociated
withaUSdollarloan.
Otherfinancialobligationstotalling€ 2.9million(2009:
€ 3.1million)wereattributabletorentalandleaseagree-
ments.Ofthistotal,anamountof€ 1.3millionisdue
withinoneyear.Atotalof€ 1.9millionincurrentobliga-
tionsisattributabletocontractsalreadyawardedaspart
ofcapitalexpenditureprojects.
Basedonfinanceincomeof€ 1.0millionandfinance
costof€ 0.6million,netfinanceincomeamountedto
€ 0.4millionin2010(2009:€ –0.2million).
4. FINANCIAl pOSItION
Higher equity ratio
At31December2010totalassetsremainedlargely
unchangedat€ 245million.
DespitefurtherinvestmentsinnewplantsinLitvinov
(CzechRepublic)andJiangmen(China),thetotalcarry-
ingamountofproperty,plantandequipmentfellby
€ 4.7millionintheperiodunderreview,asdepreciation
andwrite-downsexceededtotalcapitalexpenditure.
Rawmaterialsandconsumablesroseby€ 1.7million
yearonyear,whilefinishedgoodsandmerchandise
increasedby€ 4.8million.
Highertradereceivables,up€ 8.5millionto€ 41.8mil-
lion,wereareflectionofmorepronouncedrevenue
growthin2010.
GrOup MANAGeMeNt repOrt
12
Revenuebyregion
€44,5 MIllION*
€90,6 MIllION*
€132.7 MIllION*
AM
er
IKA
Ger
MA
NY
eu
rO
pe &
AFr
ICA
AS
IeN
33,8 %
16,6 %
49,6 %
prOGrAMMe OF INterNAtIONAlISAtION BeArS FruIt
TheGroupincreaseditsrevenuemarkedlyinallsalesregions.ThebuoyantAsianmarketsaccountedforsignificantgrowthintheregion
America,Asia&Africa.Thisregiongenerated16.6percentoftotalrevenuewithintheSIMONAGroup,upfrom11.2percentayearago.
TheGroup‘ssolidperformanceisatestamenttoitsincisivestrategyofinternationalexpansion.
*RoundingdifferencesduetoGroupeliminations13
Otherfinancialassetscomprisecapitalisedcorporation
taxcreditsofSIMONAAGamountingto€ 4.5million,
theeconomicbenefitsofwhichwillflowtothecompany
after31December2010.Theentitlementwasrecog-
nisedasanassetinthestatementoffinancialposition
asat31December2010inanamountequivalentto
thepresentvalue.
Cashandcashequivalentsfellby€ 22.1million,mainly
asaresultofinventorydownsizing,anincreasein
receivables,asecuritiesinvestmentincoveredbonds
andtherepaymentoffinancialliabilities.Theseaspects
arepresentedintheStatementofCashFlowsinthe
notestotheconsolidatedfinancialstatements.
Equityroseby€ 4.7millioninthefinancialyearunder
review,whileliabilitieswerescaledbackbythesame
amount.
Attheendofthefinancialyear,Groupequityamounted
to€ 162.2million(2009:€ 157.5million).Thisfigure
includesannualprofitof€ 7.2millionandadividend
paymentof€ 3.6millionin2010.TheGroupequity
ratioatthereportingdatewas66percent(2009:64
percent).
Attheendofthereportingperiodtradepayables
amountedto€ 11.2million,up€ 4.3millionyearon
yearduetomorebuoyantbusiness.
Othercurrentprovisionsdeclinedby€ 3.6million,prim-
arilyduetotheutilisationofrestructuringprovisionsin
connectionwiththeclosureoftheplantinKirchhundem-
Würdinghausen.
5. eVeNtS AFter tHe repOrtING dAte
Therewerenoeventsofmaterialsignificancetothe
stateofaffairsoftheSIMONAGroupintheperiod
betweentheendofthe2010financialyearandthe
preparationofthismanagementreport.Beyondthisand
inaccordancewithstatutoryprovisions,interim
announcementswillbeissuedduring2011,outlining
thedevelopmentoftheentityandanyeventsthatare
subjecttodisclosurerequirements.
6. rISK repOrt
TheriskmanagementsystemofSIMONAAGcontrols
thefollowingmaterialrisks:risksrelatingtothegeneral
businessenvironmentandsector,financialrisksandIT-
specificrisks.
Therisksassociatedwiththegeneralbusinessenviron-
mentandthesectorinwhichthecompanyoperates
relatemainlytotheeconomicdevelopmentofcustomer
segmentsservedbySIMONA.Theyalsoincludeexchange
rateandcommoditypricevolatilityaswellastheavail-
abilityofrawmaterials.Owingtoourbroadrangeof
productsandthoroughanalysisofthemarket,weare
abletomitigatetheserisksandrespondtochanges.
TheproductionfacilitiesintheUnitedStates,Chinaand
theCzechRepublicwillhelpustoimprovethecompa-
ny’sflexibilitywhenitcomestomeetingnewcustomer
requirementsatagloballevel.
Pricerisksassociatedwithexchangeratestendto
increaseinproportiontorevenuegeneratedbySIMONA
outsidetheeurozone.Theexpansionofproductionin
foreignsalesmarketshashelpedtoscalebackrisks
withinthisarea.Sector-specificriskswillcontinueto
beafocalpointofourriskmanagementduring2011.
Bothrevenueandearningsperformancein2011willbe
dependenttoalargeextentondevelopmentswithinthe
salesmarketsprimarilytargetedbySIMONA.Against
thebackdropofamorefavourableeconomicclimate,
therisksituationisnowconsideredmuchlesspro-
nounced.Bycontrast,therisksassociatedwithcom-
GrOup MANAGeMeNt repOrt
14
moditypriceshaveincreasedduringthefirstmonthsof
2011andarelikelytobeakeyfactorinearningsper-
formancefor2011asawhole.Initiatedtwoyearsago,
thetransitionfromquarterlytomonthlycontractsfor
ethyleneandpropylenehasledtosignificantpricevol-
atilityfordownstreamproducts.
Asregardsreceivables,theriskofdefaultismitigated
bymeansofextensivecreditratingchecksinthecase
ofnewaccountsandongoingassessmentsofthecredit
ratingsofexistingcustomers.Default-relatedriskasso-
ciatedwithspecificcustomersislimitedbycreditinsur-
anceandthecut-offofdeliveriesinthecaseofout-
standingpayments.Thecarryingamountsofinventories
areassessedonaregularbasis,andadjustmentsin
theformofallowancesweremadeforspecificunsale-
ableproducts.
Risksattributabletoinformationtechnologyarecon-
trolledGroup-widebythecompany’sownITdepartment,
whosetaskistomanage,maintain,refineandprotect
theITsystemsonacontinualbasis.
Attheendofthe2010financialyear,weareofthe
opinionthattheoverallrisksituationforthecompany
hasimprovedslightlyasaresultofthefactorsoutlined
above.
Corporate Governance Statement
Thedeclarationoncorporategovernancepursuantto
Section289a(1)sentences2and3oftheGerman
CommercialCode(Handelsgesetzbuch–HGB)hasbeen
publishedbySIMONAAGonitscorporatewebsiteat
www.simona.de.
7. repOrt ON eXpeCted deVelOpMeNtS
Growth with considerable risks
Theglobaleconomylostmostofitsdynamismtowards
mid-2010,withthemajorityofthedevelopedcountries
recordingsubduedGDPgrowthinthefourthquarterof
2010.However,indicatorsimprovedagaintowardsthe
endoftheyear,whichwasunderlinedbythesignificant
expansionoftheworldeconomysincethebeginningof
2011.Havingsaidthat,therearesignsofbifurcation:
theemergingmarkets–particularlyinAsia–have
returnedtoorexceededtheirpre-crisislevelsandcur-
rentlyruntheriskofoverheating,whereasmanyofthe
developedeconomies–suchastheUnitedStates,the
UnitedKingdomandSpain–havebeensluggish.The
globaleconomyisexposedtocertainriskswithregard
toitsfutureperformance.Withinthiscontext,spiralling
commoditypricesrepresentoneofthemostpotent
risks.Thepriceofcrudeoilhassurgedinthewakeof
thepoliticalupheavalwitnessedthroughouttheArab
world.Governmentsintheemergingmarketswillbe
forcedtocounteracttherisktostabilitythatisgenerally
associatedwithaneconomicboom.Itremainstobe
seentowhatextentthepriceofcrudeoilandglobal
economicperformanceasawholewillbeaffectedby
thenaturalandnucleardisasterinJapan.
InJanuary,theInternationalMonetaryFund(IMF)pro-
jectedglobaleconomicgrowthof4.4percentfor2011.
However,thelatestforecastsissuedbyeconomistssug-
gestthatgrowthwillbelesspronounced.TheIMFagain
anticipatesstronggrowthforChina(+9.6percent)and
01 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions
FinancialPerformance
FinancialAssetsandLiabilities
FinancialPosition
EventsaftertheReportingDate
RiskReport
ReportonExpectedDevelopments
OtherInformation
02GROUPFINANCIALSTATEMENTS 04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
15
India(+8.4percent).TheRussianeconomyisexpected
toexpandby4.5percent.Recoverythroughoutthe
eurozoneremainssluggish;againstthisbackdrop,GDP
isforecasttogrowbyjust1.7percent.TheUSeco-
nomyisexpectedtogainsomemomentum,withesti-
matedgrowthof3.0percentin2011.
SIMONAanticipatesthattheoverallordersituationwill
remainsolidin2011.Orderintakeremainsstableata
highlevel.Followingthedownturn,thereremainssignifi-
cantpotentialwithregardtocapitalexpenditureon
machineryandequipment–ofparticularrelevanceto
ourbusiness–withinkeysalesmarkets.Inaddition,
demandislikelytobebuoyedbyexporttradeonthe
partofcustomersoperatingwithinthechemicaland
mechanicalengineeringindustry.Pipingsystemsengin-
eeringisexpectedtodevelopatamoresubduedrate.
Short-timeworkwaspartiallyintroducedattheRings-
heimplant,whichproducedpipesandfittings.
Elevatedcommoditypricescontinuetoexertdownward
pressureonourgrossprofitmargin,asthepercentage
ofmaterialcostsattributabletoourproductsissignifi-
cant.Itwillbedifficulttopassthesehighercostsonto
customerswithinthehighlycompetitivemarketsof
Europe.
TheSIMONAGroupwillbelookingtopropelrevenue
furthertoatleast€ 290millionforthefinancialyear
2011asawhole.Despitethecontinuedriseincom-
modityprices,profitablegrowthremainsatoppriority
forSIMONA;thetargetforGroupearningsbeforetaxes
hasbeensetat€ 15million.Ourfocusforthefuture
willbeonextrudedsemi-finishedthermoplasticsand
relatedproductsforsafety-criticalandeco-specific
applications.Wehavealsoidentifiedopportunitiesfor
growthwithintheareaofenergyutilitiesandcommo-
dities,environmentalengineeringandagriculture/food
manufacturing.
Owingtotheuncertaintiesassociatedwiththecommod-
itymarketsaswellastheinconsistenteconomictrends
andtheriskofunforeseenevents,suchasrecentdevel-
opmentsinJapan,providingaperformanceoutlookfor
2012isdifficult.Giventhegrowthopportunitieseman-
atingfromtheemergingmarketsandthenewfocuson
safety-criticalandeco-specificapplications,SIMONA
anticipatesthatitsbusinessperformancewillremain
favourablebeyondthefinancialyear2011.
8. OtHer INFOrMAtION
employees
Inaggregate,thenumberofpeopleemployedwithinthe
SIMONAGroupremainedstablein2010.Attheendof
thereportingperiod,theGroupheadcountstoodat
1,236(2009:1,234).Withinthiscontext,theclosureof
ourplantinKirchhundem-Würdinghausenandthedis-
continuationoftwologisticssitesinFrancepushedthe
Group’sheadcountdown,whiletherecruitmentefforts
atthenewproductionfacilityinJiangmen,China,
resultedinnewjobsbeingcreatedwithintheGroup.The
averagenumberofemployeeswithintheGroupwas
1,218.Asat31December2010,theheadcountforthe
parentcompany,SIMONAAG,was910(2009:957).
Attheendof2010,54youngpeople(2009:59)were
enrolledinvocationalprogrammesrelatingtooneof
seventechnicalandcommercialtrainingcourses.In
total,18apprenticessuccessfullycompletedtheirvoca-
tionaltrainingprogrammes;nineofthemwereoffered
permanentemploymentcontracts.Twoapprentices
optedforanintegrateddegreecourseofferedby
SIMONAincooperationwiththeUniversityofApplied
SciencesLudwigshafen.At31December2010,6
femalemembersofstaffwereonparentalleave.Atthe
endof2010,60membersofstaff(2009:64)had
optedforearlypart-timeretirement.
GrOup MANAGeMeNt repOrt
16
01 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions
FinancialPerformance
FinancialAssetsandLiabilities
FinancialPosition
EventsaftertheReportingDate
RiskReport
ReportonExpectedDevelopments
OtherInformation
02GROUPFINANCIALSTATEMENTS
In2010,SIMONAextendeditsBalancedScorecardasa
strategicmanagementinstrumenttoincorporateother
organisationallevelswithinthecompany.In-housetrain-
ingwithinthecontextofacross-companyprojectaimed
atimprovingtheorderprocessformedoneofthefocal
pointsofHRdevelopmentintheyearunderreview.Addi-
tionally,thecompanyorganisedanumberofpersonal-
isedspecialisttrainingschemesanddrewupaconcept
fortheestablishmentofatalentpromotioncircle,which
willcommencein2011.
In2011,theemphasiswithregardtoITwasonstand-
ardisingtheSAPmodulesusedwithintheGroupand
introducingSAPinfullatSIMONAAMERICAInc.Further-
more,therollouttemplaterelatingtotheSAPmodule
HumanResourceswasextendedandinitialpreparations
weremadeforreleasemigration.
Significant elements of the internal control and man-
agement system
Overallresponsibilityfortheinternalcontrolsystemwith
regardtothefinancialandtheGroupfinancialreporting
processrestswiththeManagementBoard.Allentities
includedwithintheconsolidatedgrouphavebeeninteg-
ratedwithinthissystembymeansofclearlydefined
managementandreportingstructures.
Theinternalcontrolsystem,whichimplementsspecific
controlswithregardtothefinancialreportingprocess,
isaimedatprovidingreasonableassurancethatannual
financialstatementscanbepreparedinaccordance
withstatutoryrequirementsdespitepossiblerisks.The
riskmanagementsystemincludesthefullrangeof
guidelinesandmeasuresrequiredtoidentifyriskandto
manageriskassociatedwithcommercialoperations.
Thepolicies,thestructuralandproceduralorganisation
aswellastheprocessesoftheinternalcontrolandrisk
managementsystemoperatedinrespectoffinancial
reportinghavebeenincorporatedinguidelinesand
organisationalinstructionsthatarerevisedregularlyto
accountforthelatestexternalandinternaldevelop-
ments.Asregardsthefinancialreportingprocess,we
considerthoseelementstobeofsignificancetothe
internalcontrolandriskmanagementsystemthatmay
potentiallyinfluencefinancialreportingandoverall
assessmentoftheannualfinancialstatements,includ-
ingthemanagementreport.Theseelementsareasfol-
lows:
� Identificationofsignificantareasofriskandcontrol
withaninfluenceoverthegroup-widefinancial
reportingprocess
� Monitoringofthegroup-widefinancialreportingpro-
cessandanyfindingstherefromatManagement
Boardlevel
� Preventativemeasuresofcontrolwithregardto
groupaccountingaswellassubsidiariesincludedin
theconsolidatedgroup
� MeasuresthatsafeguardtheappropriateIT-based
preparationofitemsanddataofrelevancetofinan-
cialreporting
Quality and environmental management
ThegoalofSIMONA’squalitymanagementistoensure
thatthequalityofitsproductsandprocessesissafe-
guardedandoptimisedonacontinualbasis.Withinthis
context,theaimistoachieveaconsistentlyhighlevel
ofqualityawarenessatallproductionanddistribution
sites.Theincorporationofthenewproductionsiteat
Jiangmen,China,intotheSIMONAqualitymanagement
conceptprogressedwell,andcertificationoftheQM
systematourChinesemanufacturingplantcannowbe
plannedfortheendof2011.
Amongthefocalpointsofthequalitymanagementsys-
temin2010wereaninterdisciplinaryqualitycircle,
productauditsandseveralprocessoptimisationmeas-
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
17
Staffandrevenue
relIABle ANd AttrACtIVe eMplOYer
Despitetheeconomicupheavalseenin2009and2010,SIMONAmaintainedkeptstaffinglevelsstable.Wedemandperformanceand
encourageinitiative.Thisisillustratedbyouraward-winningvocationaltrainingprogramme,ourclosecollaborationwithuniversitiesand
thenewlycreatedSIMONATalentPromotionCircle–„YourTalent.OurFuture.“
303,7
1.236
2008
2009
2010
1.234
215,1
267,4
Revenuein€ millions
Employeesatyears-end
1.251
18
uresrelatingtonewautomotiveprojects.Intheareaof
pipesandfittings,anincreasingnumberofcountry-spe-
cificproductcertificationswerenecessaryinresponse
tocustomerandmarketrequirements.Thisresultedin
severalauditsaspartofwhichwewereabletoproveto
externalauditorstheefficacyoftheSIMONAmanage-
mentsystemsaswellastheexceptionallyhighquality
ofourproductsandprocesses.
Asacompanyoperatingwithintheglobalbusiness
arena,SIMONAAGiswellawareofitsresponsibilities
towardspeopleandtheenvironment.Thus,sustainabil-
ityandenvironmentalcompatibilityformanintegralpart
ofthecorporatephilosophyembracedbySIMONAAG.
SIMONAproductscontributetotheprotectionof
resources,e.g.byreplacingheaviermaterials,byfacili-
tatingwatertreatmentorbyreducingCO2emissions.
Sustainabilityhasalsobeendefinedasastrategicgoal
withregardtoourproductionprocesses.Indeed,pro-
duction-integratedenvironmentalprotectionplaysapiv-
otalrolewhenitcomestoplanningnewproduction
processesandcoordinatingfabricationmethods.
SIMONAAGiscommittedtoimprovingitsprocesseson
acontinualbasis,withtheexpresspurposeofactingin
aresource-andenvironmentally-friendlymanner.
Compensation report
Management Board compensation
TheSupervisoryBoard,basedontherecommendations
ofthePersonnelCommittee,isresponsiblefordeter-
miningtheoverallcompensationoftherespectiveMan-
agementBoardmembers.Italsoregularlyreviewsthe
compensationsystemrelatingtotheManagement
Board.ThePersonnelCommitteeconsistsofHans-
WernerMarx,ChairmanoftheSupervisoryBoard,as
wellastheSupervisoryBoardmembersDr.RolfGößler
andRolandFrobel.Compensationforthemembersof
theManagementBoardofSIMONAAGiscalculatedon
thebasisofthesizeofthecompany,itscommercial
andfinancialposition,aswellasthelevelandstructure
ofcompensationgrantedtoManagementBoardmem-
bersofsimilarenterprises.Inaddition,thedutiesand
thecontributionoftherespectivemembersoftheMan-
agementBoardaretakenintoaccount.
ManagementBoardcompensationisperformance-
based.Itiscomprisedofafixedlevelofremuneration
aswellasavariablecomponentintheformofabonus.
Bothoftheaforementionedcomponentsareassessed
onanannualbasis.Inaddition,bothcomponentsare
subjecttothoroughanalysesinintervalsoftwotothree
years,basedonacomparisonwithcompensationfig-
uresapplicabletoexecutivestaffofsimilarenterprises.
Themostrecentassessmentwasconductedin2009.
Thefixedcomponentofcompensationispaidasasal-
aryonamonthlybasis.Inaddition,themembersofthe
ManagementBoardreceiveabonus,thelevelofwhich
isdependentonattainingspecificfinancialtargets
whicharecalculatedonthebasisofthecompany’s
earningsperformance.TotalcompensationfortheMan-
agementBoardamountedto€ 1,553thousand(prev.
year:€ 1,296thousand).Totalcompensationcomprises
€ 1,034thousand(prev.year:€ 988thousand)infixed-
levelcompensationand€ 519thousand(prev.year:
€ 308thousand)inbonuspayments.Thecompanydoes
notgrantloanstomembersoftheManagementBoard.
Therearenoshareoptionplansorothershare-based
compensationprogrammesinplaceformembersofthe
ManagementBoard.
Thecompany’sArticlesofAssociationcontainnoprovi-
sionsthatarenon-compliantwiththosesetoutinthe
GermanStockCorporationActasregardstheconditions
01 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions
FinancialPerformance
FinancialAssetsandLiabilities
FinancialPosition
EventsaftertheReportingDate
RiskReport
ReportonExpectedDevelopments
OtherInformation
02GROUPFINANCIALSTATEMENTS 04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
19
applicabletotheappointmentorremovalofManage-
mentBoardmembersaswellasamendmentstothe
company’sArticlesofAssociation.Inviewofthis,readers
areaskedtorefertotherelevantstatutoryprovisionsset
outinSections84,85,133and179oftheGerman
StockCorporationAct(Aktiengesetz–AktG)forfurther
details.
RemunerationfortheformermembersoftheManage-
mentBoardamountedto€ 592thousand(previous
year:€ 853thousand).Pensionprovisionsforactive
andformermembersoftheManagementBoardwere
recognisedtothefullextentandamountedto€ 7,756
thousandasat31December2010(previousyear:
€ 8,507thousand).
Supervisory Board compensation
SupervisoryBoardcompensationiscalculatedaccord-
ingtothesizeofthecompany,aswellasthedutiesand
responsibilitiesoftheSupervisoryBoardmembers.The
ChairmanandtheDeputyChairmanaswellasmembers
involvedinCommitteesreceivesupplementarycom-
pensation.
MembersoftheSupervisoryBoardreceiveastandard
fixedlevelofcompensationamountingto€ 10,000.The
ChairmanoftheSupervisoryBoardreceivesanamount
equivalenttodoublethestandardlevelofcompensa-
tion;theDeputyChairmanreceivesanamountequival-
enttooneandahalftimesthestandardlevelofcom-
pensation.SupervisoryBoardmemberswhoare
engagedinCommitteeworkreceivesupplementary
compensationof€ 5,000.Allexpensesassociated
directlywithapositionontheSupervisoryBoard,as
wellassalestax,arereimbursed.
Inadditiontofixedcompensation,theGeneralMeeting
shallbeauthorisedtopassaresolutiononavariable
componentofcompensation,paymentofwhichshallbe
dependentonwhetherspecificcorporateperformance
indicatorshavebeenmetorexceeded.AttheAnnual
GeneralMeetingofShareholderson25June2010no
suchresolutionforvariablecompensationcomponents
waspassedforthe2010financialyear.
SupervisoryBoardcompensationfor2010amountedto
€ 121thousand(previousyear:€ 121thousand).The
companydoesnotgrantloanstomembersofthe
SupervisoryBoard.Therearenoshareoptionplansor
othershare-basedcompensationprogrammesinplace
formembersoftheSupervisoryBoard.
disclosures pursuant to Sections 289 (4) and 315 (4)
HGB and explanatory report
Asat31December2010,thesharecapitalofSIMONA
AGwas€ 15,500,000,dividedinto600,000no-par-value
bearershares(“Stückaktien”governedbyGermanlaw).
Thus,itremainedunchangedinthe2010financialyear.
ThesharesaretradedintheGeneralStandardofthe
GermanstockexchangeinFrankfurtaswellasonthe
Berlinsecuritiesexchange.Therearenodifferentcate-
goriesofshareorsharesfurnishedwithspecialrights.
EachshareisequippedwithonevoteattheGeneral
MeetingofShareholders.Inviewofthefactthata
shareholder’srighttoacertificateofownershipinter-
estshasbeenprecludedunderthecompany’sArticles
ofAssociation,thesharecapitalofourcompanyisrep-
resentedonlyintheformofaglobalcertificate,which
hasbeendepositedwithClearstreamBankingAG,
FrankfurtamMain.Therefore,ourshareholdersonly
haveaninterestasco-ownersinthecollectiveholdings
oftheno-par-valuesharesinourcompany,asheldby
ClearstreamBankingAG,accordingtotheirinterestin
thecompany’ssharecapital.Weshallnolongerissue
effectivesharecertificates.AsfarastheManagement
Boardisaware,therearenorestrictionsaffectingvoting
rightsorthetransferofshares.
A30.79percentinterestwasheldbyDr.Wolfgangund
AnitaBürkleStiftung(Kirn),an11.64percentinterest
byDirkMöller(Kirn),an11.41percentinterestby
GrOup MANAGeMeNt repOrt
20
RegineTegtmeyer(Seelze),a15.0percentinterestby
KreissparkasseBiberach(Biberach),a10.0percent
interestbySIMONAVermögensverwaltungsgesellschaft
derBelegschaftmbH(Kirn)anda10.1percentinterest
byRossmannBeteiligungsGmbH(Burgwedel).The
remaining11.06percentofsharesinthecompany
wereinfreefloat.On10June2010,Dr.Wolfgangund
AnitaBürkleStiftungnotifiedthecompanyinaccord-
ancewithSection21(1)oftheGermanSecuritiesTrad-
ingAct(Wertpapierhandelsgesetz–WpHG)thatits
votingpowerinrespectofSIMONAAGhadexceeded
thethresholdof15percent,20percent,25percent
and30percentofthevotingrightson13May2010
andthatatthisdateitsinterestwas30.79percent
(correspondingto184,739votingrights).On10June
2010,Dr.WolfgangundAnitaBürkleStiftungfiledan
applicationwiththeFederalFinancialSupervisory
Authority(BundesanstaltfürFinanzdienstleistungsauf-
sicht–BaFin)forexemptionpursuanttoSection37(1)
and(2)oftheSecuritiesAcquisitionandTakeoverAct
(Wertpapiererwerb-undÜbernahmegesetz–WpÜG)in
conjunctionwithSection9sentence1no.1ofthe
WpÜGOfferOrdinance(WpÜG-Angebotsverordnung).On
thebasisofanofficialNoticeissuedbytheFederal
FinancialSupervisoryAuthorityon22July2010,Dr.
WolfgangundAnitaBürkleStiftungwasexemptedfrom
itsdutiesunderSection35(2)sentence1WpÜGtosub-
mitanofferdocumenttotheFederalFinancialSuper-
visoryAuthorityanditsdutiesunderSection35(2)sen-
tence2inconjunctionwithSection14(2)sentence1
WpÜGtopublishamandatoryoffer.Thisexemptionwas
grantedunderSection37(1)and(2)WpÜGinconjunc-
tionwithSection9sentence1no.1WpÜGOfferOrdi-
nanceinrespectofthecontrolgainedoverSIMONAAG
followingthetestamentarysuccessionof13May2010.
On22April2010,LandkreisBiberach,Biberach,Germany,
notifiedthecompanyinaccordancewithSection21(1)
WpHGthatitsvotingpowerinrespectofSIMONAAGhad
01 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions
FinancialPerformance
FinancialAssetsandLiabilities
FinancialPosition
EventsaftertheReportingDate
RiskReport
ReportonExpectedDevelopments
OtherInformation
02GROUPFINANCIALSTATEMENTS
exceededthethresholdof3percent,5percentand10
percenton29November2006andthatatthisdateits
interestwas10.67percent(64,000votingrights).Of
thesevotingrights,10.67percent(64,000votingrights)
areattributabletotheaforementionedshareholderin
accordancewithSection22(1)sentence1no.1WpHG.
Withinthiscontext,attributablevotingrightsareheldby
theaforementionedpartyviathefollowingentityunder
itscontrolwhosevotingpowerinrespectofSIMONAAG
amountsto3percentormore:KreissparkasseBiber-
ach,Biberach,Germany.On22April2010,Landkreis
Biberach,Biberach,Germany,notifiedthecompanyin
accordancewithSection21(1)WpHGthatitsvoting
powerinrespectofSIMONAAGhadexceededthe
thresholdof15percenton2March2010andthatat
thisdateitsinterestwas15.0038percent(90,023
votingrights).
Ofthesevotingrights,15.0038percent(90,023voting
rights)areattributabletotheaforementionedshare-
holderinaccordancewithSection22(1)sentence1no.
1WpHG.Withinthiscontext,attributablevotingrights
areheldbytheaforementionedpartyviathefollowing
entityunderitscontrolwhosevotingpowerinrespectof
SIMONAAGamountsto3percentormore:Kreisspar-
kasseBiberach,Biberach,Germany.
Asat25June2010,membersoftheManagement
Boardreportedatotalholdingof70,776ownshares;
thiscorrespondsto11.8percentofthesharecapital
ofSIMONAAG.Accordingtothenotificationof25June
2010,membersoftheSupervisoryBoardheldatotalof
1,700shares.Thiscorrespondsto0.28percentof
totalsharecapital.
Totheextentthatemployeesholdaninterestinthe
company’scapital,theseemployeesthemselvesdirectly
exercisetherightsofcontrolassociatedwiththeir
shareholdings.
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
21
GrOup MANAGeMeNt repOrt
Theappointmentandtheremovalofmembersofthe
ManagementBoardaregovernedbythestatutoryprovi-
sionssetoutinSections84and85oftheGerman
StockCorporationAct(Aktiengesetz–AktG)aswellas
bySection9oftheArticlesofAssociationofSIMONA
AG.Undertheseprovisions,theManagementBoardof
thecompanyconsistsofatleasttwomembers.The
appointmentofdeputymembersoftheManagement
Boardispermitted.TheManagementBoardgenerallyhas
achairmantobeappointedbytheSupervisoryBoard.
TheSupervisoryBoardisentitledtotransfertoaSupervi-
soryBoardcommitteethedutiesrelatingtotheconclu-
sion,amendmentandterminationofManagementBoard
employmentcontracts.AnyamendmentstotheArticles
ofAssociationmustbemadeinaccordancewiththestat-
utoryprovisionssetoutinSection179etseq.oftheGer-
manStockCorporationAct.
AccordingtoSection6oftheArticlesofAssociation,the
companyisentitledtoissuesharecertificatesthat
embodyoneshare(singlecertificate)ormultipleshares
(globalcertificates).
Atpresenttherearenosignificantagreementscontaining
achangeofcontrolprovisionthatwouldapplyinthe
eventofatakeoverbid.
Atpresenttherearenoagreementswithmembersofthe
ManagementBoardorwithemployeesrelatingtocom-
pensationpaymentsintheeventofachangeofcontrol.
Forward-looking statements and forecasts
ThisGroupmanagementreportcontainsforward-looking
statementsthatarebasedonthecurrentexpectations,
presumptionsandforecastsoftheManagementBoard
ofSIMONAAGaswellasoninformationcurrentlyavail-
abletotheManagementBoard.Theseforward-looking
statementsshallnotbeinterpretedasaguaranteethat
thefutureeventsandresultstowhichtheyreferwill
actuallymaterialise.Rather,futurecircumstancesand
resultsdependonamultitudeoffactors.Theseinclude
variousrisksandimponderabilities,aswellasbeing
basedonassumptionsthatmayconceivablyprovetobe
incorrect.SIMONAAGshallnotbeobligedtoadjustor
updatetheforward-lookingstatementsmadeinthis
report.
Closing statement
Weherebydeclarethattothebestofourknowledgethe
managementreportconveysthecourseofbusiness,the
financialperformanceandthematerialopportunities
andrisksassociatedwiththeexpecteddevelopmentof
theSIMONAGroup.
SIMONAAG
Kirn,31March2011
TheManagementBoard
22
GroupIncomeStatement 24
GroupStatementofComprehensiveIncome 25
GroupStatementofFinancialPosition 26
NotestoConsolidatedFinancialStatements 47
GroupStatementofCashFlows 64
GroupStatementofChangesinEquity 65
DetailsofShareholdings 66
Auditor’sReport 67
OtherInformation 68
GroupFinancialStatements
in€ ‘000 Notes 01/01 - 31/12/10 01/01 - 31/12/09
Revenue [7] 267,402 215,070
Otheroperatingincome [8] 7,201 7,408
Changesininventoriesoffinishedgoods 5,314 –1,833
Costofmaterials 154,420 103,686
Staffcosts [9] 55,876 55,256
Depreciationofproperty,plantandequipment,andamortisationofintangibleassets [16],[17] 12,606 14,554
Otheroperatingexpenses [11] 46,946 39,830
Incomefromequityinvestments 500 0
Interestincome [12] 498 506
Interestexpense [12] 579 690
profit before tax 10,488 7,135
Incometaxexpense [13] 3,263 2,113
profit for the period 7,225 5,022
ofwhichattributableto:
Ownersoftheparentcompany 7,198 4,988
Non-controllinginterests 27 34
earnings per share:
in€
–basic,calculatedonthebasisofprofitfortheperiodattributabletoordinaryshareholdersoftheparentcompany [14] 12.00 8.31
–diluted,calculatedonthebasisofprofitfortheperiodattributabletoordinaryshareholdersoftheparentcompany [14] 12.00 8.31
GroupIncomeStatementofSIMONAAG
GrOup FINANCIAl StAteMeNtS
24
in€ ‘000 01/01 - 31/12/10 01/01 - 31/12/09
profit for the period 7,225 5,022
Exchangedifferencesontranslatingforeignoperationsduringtheyear 1,040 –17
Amountrecogniseddirectlyinequity 1,040 –17
total comprehensive income 8,265 5,005
Totalcomprehensiveincomeattributableto:
Ownersoftheparentcompany 8,235 4,968
Non-controllinginterests 30 37
GroupStatementofComprehensiveIncomeofSIMONAAG
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
25
GroupStatementofFinancialPositionofSIMONAAG
GrOup FINANCIAl StAteMeNtS
ASSetS
in€ ‘000 Notes 31/12/10 31/12/09
Intangibleassets [16] 1,294 1,412
Property,plantandequipment [17] 88,126 92,839
Financialassets [30] 23 23
Non-currenttaxassets [20] 3,773 4,320
Deferredtaxassets [13] 173 236
Non-current assets 93,389 98,830
Inventories [18] 50,515 43,994
Tradereceivables [19] 41,845 33,320
Otherassetsandprepaidexpenses [20] 9,947 6,902
Derivativefinancialinstruments [30] 0 160
Otherfinancialassets [30] 10,000 0
Cashandcashequivalents [21] 39,316 61,479
Current assets 151,623 145,855
total assets 245,012 244,685
eQuItY ANd lIABIlItIeS
in€ ‘000 Notes 31/12/10 31/12/09
equity attributable to owners of theparent company
Issuedcapital 15,500 15,500
Capitalreserves 15,274 15,274
Revenuereserves 131,425 127,755
Otherreserves –260 –1,225
161,939 157,304
Non-controlling interests 272 242
total equity [22] 162,211 157,546
Financialliabilities [23] 4,848 7,000
Provisionsforpensions [24] 38,322 36,698
Otherprovisions [26] 6,036 5,979
Otherliabilities 211 414
Deferredtaxliabilities [13] 5,654 5,271
Non-current liabilities 55,071 55,362
Financialliabilities [23] 313 3,824
Provisionsforpensions [24] 1,248 1,637
Otherprovisions [26] 2,535 5,708
Tradepayables 11,202 6,904
Incometaxliabilities 1,607 2,638
Otherliabilitiesanddeferredincome 10,670 10,771
Derivativefinancialinstruments [30] 155 295
Current liabilities 27,730 31,777
total equity and liabilities 245,012 244,685
26
NotestoConsolidatedFinancialStatements
[1] COMpANY INFOrMAtION
SIMONAAGisastockcorporation(Aktiengesellschaft)
foundedinGermany–registeredofficeatTeichweg16,
55606Kirn,Germany.Itssharesaretradedwithinthe
GeneralStandardoftheFrankfurtandBerlinStock
Exchanges.Theconsolidatedfinancialstatementsof
SIMONAAGforthefinancialyearended31December
2010werereleasedbytheManagementBoardonthe
basisofaresolutionpassedon31March2011forthe
purposeofforwardingthemtotheSupervisoryBoard.
TheactivitiesofSIMONAAGmainlyincludetheproduc-
tionandsaleofsemi-finishedproductsintheformof
sheets,rods,weldingrods,pipes,fittingsandfinished
partsmadeofthermoplastics.
Thesemi-finishedproductsaremanufacturedinGermany
atplantsinKirnandKirchhundem-Würdinghausen(until
30September2010),aswellasinHazleton(USA)and
Jiangmen(China).Pipesandfittingsareproducedatthe
plantinRingsheim(Germany).TheplantinLitvinov
(CzechRepublic)manufacturessemi-finishedproducts,
pipesandfittings.Theproductsaremarketedunderthe
jointSIMONAbrandaswellasarangeofseparate
brands.
SIMONAAGmaintainsasalesofficeinMöhlin,
Switzerland.
Inaddition,distributionisconductedviasubsidiariesin
theUnitedKingdom(SIMONAUKLimited,Stafford,
UnitedKingdom),France(SIMONAS.A.,Domont,France),
Italy(SIMONAS.r.l.,Vimodrone,Italy),Spain(SIMONA
IBERICASEMIELABORADOSS.L.,Barcelona,Spain),
Poland(SIMONAPOLSKASp.zo.o.,Wrocław,Poland,
DEHOPLASTPOLSKASp.zo.o.,Kwdizyn,Poland),the
CzechRepublic(SIMONAPLASTICSCZ,s.r.o.,Prague,
CzechRepublic),HongKong(SIMONAFAREASTLtd.,
HongKong,China),China(SIMONAENGINEERINGPLAS-
TICSTRADINGCo.Ltd,Shanghai,China)andtheUnited
States(SIMONAAMERICAInc.,Hazleton,USA).
[2] ACCOuNtING pOlICIeS
Basis of preparation
Theconsolidatedfinancialstatementsareprepared
usingthehistoricalcostprinciple,withtheexceptionof
derivativefinancialinstrumentsandavailable-for-sale
financialassets,whicharemeasuredatfairvalue.The
consolidatedfinancialstatementsarepreparedineuro.
Unlessotherwisestated,allamountsareroundedto
€ ‘000.
Statement of compliance with IFrS
TheconsolidatedfinancialstatementsofSIMONAAG
andtheentitiesincludedintheconsolidatedgroupfor
theperiodended31December2010,havebeenpre-
paredinaccordancewiththeInternationalFinancial
ReportingStandards(IFRS)applicableatthereporting
date,asadoptedbytheEuropeanUnion,andtheprovi-
sionsofcommerciallawtobeappliedadditionallypur-
suanttoSection315a(1)oftheGermanCommercial
Code(Handelsgesetzbuch–HGB).
Theterm“IFRS”comprisesallInternationalFinancial
ReportingStandards(IFRS)andInternationalAccounting
Standards(IAS)tobeappliedonamandatorybasisas
atthereportingdate.Additionally,allinterpretations
issuedbytheInternationalFinancialReportingInterpre-
tationsCommittee(IFRIC)–formerlyStandingInterpre-
tationsCommittee(SIC)–wereappliedinsofarastheir
applicationwasmandatoryforthe2010financialyear.
Theconsolidatedfinancialstatementsconsistofthe
financialstatementsofSIMONAAGanditssubsidiaries
asat31Decemberofeachfinancialyear(hereinafter
alsoreferredtoas“Group”or“SIMONAGroup”).
TheGroupstatementoffinancialpositionconformswith
thepresentationrequirementsofIAS1.Variousitems
reportedintheincomestatementandthestatementof
financialpositionhavebeenaggregatedforthepurpose
ofimprovingtheoverallclarityofpresentation.These
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
27
itemsaredisclosedanddiscussedseparatelyinthe
notestotheconsolidatedfinancialstatements.
principles of consolidation
Theconsolidatedfinancialstatementscomprisethe
accountsofSIMONAAGanditssubsidiariesforeach
financialyearended31December.Thefinancialstate-
mentsofSIMONAAGandthesubsidiariesareprepared
usinguniformaccountingpoliciesforthesamereporting
period.
Allintragroupbalances(receivables,liabilities,provi-
sions),transactions,incomeandexpensesaswellas
profitsandlossesfromtransactionsbetweenconsoli-
datedentities(“intercompanyprofits”)areeliminatedas
partofconsolidation.
Subsidiariesarefullyconsolidatedeffectivefromthe
acquisitiondate,whichisthedateonwhichtheGroup
effectivelyobtainscontrol.Inclusionintheconsolidated
financialstatementsendsassoonastheparentceases
tocontrolthesubsidiary.Changesinaparent’sowner-
shipinterestinasubsidiarythatdonotresultinaloss
ofcontrolareaccountedforasequitytransactions.
Non-controllinginterestsaredisclosedseparatelyinthe
GroupincomestatementandwithinequityoftheGroup
statementoffinancialposition.
[3] NeW FINANCIAl repOrtING StANdArdS
3.1 Accounting standards applicable for the first time
in the financial year
Theaccountingmethodsappliedtotheseconsolidated
financialstatementsareconsistentwiththoseapplied
inthepreviousyear,withtheexceptionofthefollowing
newandamendedStandardsandInterpretationseffec-
tiveasat1January2010.Thefollowingsectionpro-
videsasummaryofStandardsthatareofrelevanceto
SIMONAAG,aswellasdetailingthepossibleimplica-
tionsfortheconsolidatedfinancialstatements:
� IAS39“FinancialInstruments:Recognitionand
Measurement”(EligibleHedgedItems)
� IFRS2“Share-basedPayment”(GroupCash-settled
Share-basedPaymentTransactions)
� IFRS3“BusinessCombinations”/IAS27“Consoli-
datedandSeparateFinancialStatements”(PhaseII:
generalrevisionaspartoftheconvergenceproject
oftheIASBandFASB
� IFRIC17DistributionsofNon-cashAssetstoOwners
(newinterpretation)
� ImprovementstoIFRS2008
� ImprovementstoIFRS2009
Thefollowingsectionprovidesasummaryoftherelev-
antStandards,aswellasdetailingthepossibleimpli-
cationsfortheconsolidatedfinancialstatements:
� IAS39“FinancialInstruments:Recognitionand
Measurement”(EligibleHedgedItems)clarifiesthat
anentityisentitledtodesignatejustsomeofthe
changesinthecashflowsorfairvaluesofafinan-
cialinstrumentasahedgeditem.Thisalsoencom-
passesthedesignationofinflationasahedgedrisk
orportioninparticularsituations.TheSIMONA
Grouphasascertainedthatthisamendmentwillnot
affecttheGroup’sfinancialposition,financialper-
formanceandcashflows,astheGrouphasnot
enteredintoanysuchtransactions.
� IFRS2“Share-basedPayment”(GroupCash-settled
Share-basedPaymentTransactions)containsamend-
mentstothescopeandaccountingofGroupcash-
settledshare-basedpaymenttransactions).The
amendmenttoIFRS2hasnoeffectonthefinancial
position,financialperformanceandcashflowsof
theSIMONAGroup,asnoshare-basedpaymentis
offered.
� IFRS3“BusinessCombinations”/IAS27“Consoli-
datedandSeparateFinancialStatements”were
amendedextensivelyaspartoftheconvergence
GrOup FINANCIAl StAteMeNtS
28
projectimplementedbytheIASBandFASB.Thekey
amendmentsarecentredaroundtheintroductionof
anoptionrelatingtothemeasurementofnon-con-
trollinginterests,withachoicebetweenrecognition
onthebasisoftheproportionateidentifiablenet
assets (purchased Goodwill Method)andtheso-
calledFull Goodwill Method,wherebytheentirepor-
tionofgoodwillapplicabletotheminorityshare-
holdershallberecognised.Otherpointsincludethe
revaluation,withrecognitioninprofitorloss,ofany
existingownershipinterestsatthedateofinitially
obtainingcontrol(businesscombinationachievedin
stages),therecognitionattheacquisitiondateof
anyconsiderationcontingentonfutureeventsas
wellastherecognitionoftransactioncostsinprofit
orloss.Thetransitionalprovisionsstipulateapro-
spectiveapplicationoftheamendments.Thereare
nochangesinrespectofassetsandliabilitiesthat
arisefrombusinesscombinationspriortotheinitial
applicationofthenewstandards.Theamendments
mayhaveaneffectonthecarryingamountofgood-
will,ontheresultsofthereportingperiodinwhicha
businesscombinationhasoccurredandonfuture
results.Inparticular,applicationofthefull-goodwill
methodmayresultinhighergoodwillbeingrecog-
nised.Theseamendmentshadnoeffectonthe
2010financialyear,asnotransactionsrelatingto
businesscombinationsoccurredintheperiodunder
review.
� IFRIC17includesdetailsonhowtoaccountfordis-
tributionsofnon-cashassetstoownerseitherfrom
reservesorintheformofdividends.ThisInterpreta-
tiondoesnoteffectthepresentationoffinancial
position,financialperformanceandcashflowsof
theSIMONAGroup,asnosuchdistributionswere
made.
3.2 Issued standards and interpretations which have
not yet been applied (eu endorsement completed)
TheInternationalAccountingStandardsBoard(IASB)and
theInternationalFinancialReportingInterpretations
Committee(IFRIC)issuedthefollowingStandardsand
Interpretationswhichhavealreadybeenadoptedbythe
EuropeanUnionaspartofthecomitologyprocedurebut
whoseapplicationwasnotyetmandatoryinthe2010
financialyear.TheGroupwillnotapplytheseStandards
andInterpretationsforanearlierperiod.
� IFRS1“First-timeAdoptionofInternationalFinancial
ReportingStandards”(LimitedExemptionfromCom-
parativeIFRS7DisclosuresforFirst-timeAdopters)
� IAS24“RelatedPartyDisclosures”
� IAS32“FinancialInstruments:Presentation”(Classi-
ficationofRightsIssues)
� IFRIC14“PrepaymentsofaMinimumFunding
Requirement”
� IFRIC19“ExtinguishingFinancialLiabilities
withEquityInstruments”
� VariousimprovementstoIFRS(omnibusstandardfor
thepurposeofamendingvariousIFRSs).
Basedonsoundjudgement,theSIMONAGroupmay
potentiallybeaffectedbythefollowingamendments:
� IAS1“PresentationofFinancialStatements”
� IAS27“ConsolidatedandSeparateFinancial
Statements”
� IFRS3“BusinessCombinations”
� IFRS7“FinancialInstruments:Disclosures”
WiththeexceptionofIAS24,applicationoftheafore-
mentionedstandardsandinterpretationsisunlikelyto
havesignificantimplicationsforthefuturefinancial
statementsissuedbytheSIMONAGroup:
IAS24(amended)wasissuedinNovember2009and
mustbeappliedbyentitiesforannualperiodsbeginning
onorafter1January2011.Itrevisesthedefinitionof
relatedpartiesinordertosimplifytheprocessofidenti-
fyingrelationshipswithrelatedparties,aswellas
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
29
itemsaredisclosedanddiscussedseparatelyinthe
notestotheconsolidatedfinancialstatements.
principles of consolidation
Theconsolidatedfinancialstatementscomprisethe
accountsofSIMONAAGanditssubsidiariesforeach
financialyearended31December.Thefinancialstate-
mentsofSIMONAAGandthesubsidiariesareprepared
usinguniformaccountingpoliciesforthesamereporting
period.
Allintragroupbalances(receivables,liabilities,provi-
sions),transactions,incomeandexpensesaswellas
profitsandlossesfromtransactionsbetweenconsoli-
datedentities(“intercompanyprofits”)areeliminatedas
partofconsolidation.
Subsidiariesarefullyconsolidatedeffectivefromthe
acquisitiondate,whichisthedateonwhichtheGroup
effectivelyobtainscontrol.Inclusionintheconsolidated
financialstatementsendsassoonastheparentceases
tocontrolthesubsidiary.Changesinaparent’sowner-
shipinterestinasubsidiarythatdonotresultinaloss
ofcontrolareaccountedforasequitytransactions.
Non-controllinginterestsaredisclosedseparatelyinthe
GroupincomestatementandwithinequityoftheGroup
statementoffinancialposition.
[3] NeW FINANCIAl repOrtING StANdArdS
3.1 Accounting standards applicable for the first time
in the financial year
Theaccountingmethodsappliedtotheseconsolidated
financialstatementsareconsistentwiththoseapplied
inthepreviousyear,withtheexceptionofthefollowing
newandamendedStandardsandInterpretationseffec-
tiveasat1January2010.Thefollowingsectionpro-
videsasummaryofStandardsthatareofrelevanceto
SIMONAAG,aswellasdetailingthepossibleimplica-
tionsfortheconsolidatedfinancialstatements:
� IAS39“FinancialInstruments:Recognitionand
Measurement”(EligibleHedgedItems)
� IFRS2“Share-basedPayment”(GroupCash-settled
Share-basedPaymentTransactions)
� IFRS3“BusinessCombinations”/IAS27“Consoli-
datedandSeparateFinancialStatements”(PhaseII:
generalrevisionaspartoftheconvergenceproject
oftheIASBandFASB
� IFRIC17DistributionsofNon-cashAssetstoOwners
(newinterpretation)
� ImprovementstoIFRS2008
� ImprovementstoIFRS2009
Thefollowingsectionprovidesasummaryoftherelev-
antStandards,aswellasdetailingthepossibleimpli-
cationsfortheconsolidatedfinancialstatements:
� IAS39“FinancialInstruments:Recognitionand
Measurement”(EligibleHedgedItems)clarifiesthat
anentityisentitledtodesignatejustsomeofthe
changesinthecashflowsorfairvaluesofafinan-
cialinstrumentasahedgeditem.Thisalsoencom-
passesthedesignationofinflationasahedgedrisk
orportioninparticularsituations.TheSIMONA
Grouphasascertainedthatthisamendmentwillnot
affecttheGroup’sfinancialposition,financialper-
formanceandcashflows,astheGrouphasnot
enteredintoanysuchtransactions.
� IFRS2“Share-basedPayment”(GroupCash-settled
Share-basedPaymentTransactions)containsamend-
mentstothescopeandaccountingofGroupcash-
settledshare-basedpaymenttransactions).The
amendmenttoIFRS2hasnoeffectonthefinancial
position,financialperformanceandcashflowsof
theSIMONAGroup,asnoshare-basedpaymentis
offered.
� IFRS3“BusinessCombinations”/IAS27“Consoli-
datedandSeparateFinancialStatements”were
amendedextensivelyaspartoftheconvergence
GrOup FINANCIAl StAteMeNtS
30
projectimplementedbytheIASBandFASB.Thekey
amendmentsarecentredaroundtheintroductionof
anoptionrelatingtothemeasurementofnon-con-
trollinginterests,withachoicebetweenrecognition
onthebasisoftheproportionateidentifiablenet
assets (purchased Goodwill Method)andtheso-
calledFull Goodwill Method,wherebytheentirepor-
tionofgoodwillapplicabletotheminorityshare-
holdershallberecognised.Otherpointsincludethe
revaluation,withrecognitioninprofitorloss,ofany
existingownershipinterestsatthedateofinitially
obtainingcontrol(businesscombinationachievedin
stages),therecognitionattheacquisitiondateof
anyconsiderationcontingentonfutureeventsas
wellastherecognitionoftransactioncostsinprofit
orloss.Thetransitionalprovisionsstipulateapro-
spectiveapplicationoftheamendments.Thereare
nochangesinrespectofassetsandliabilitiesthat
arisefrombusinesscombinationspriortotheinitial
applicationofthenewstandards.Theamendments
mayhaveaneffectonthecarryingamountofgood-
will,ontheresultsofthereportingperiodinwhicha
businesscombinationhasoccurredandonfuture
results.Inparticular,applicationofthefull-goodwill
methodmayresultinhighergoodwillbeingrecog-
nised.Theseamendmentshadnoeffectonthe
2010financialyear,asnotransactionsrelatingto
businesscombinationsoccurredintheperiodunder
review.
� IFRIC17includesdetailsonhowtoaccountfordis-
tributionsofnon-cashassetstoownerseitherfrom
reservesorintheformofdividends.ThisInterpreta-
tiondoesnoteffectthepresentationoffinancial
position,financialperformanceandcashflowsof
theSIMONAGroup,asnosuchdistributionswere
made.
3.2 Issued standards and interpretations which have
not yet been applied (eu endorsement completed)
TheInternationalAccountingStandardsBoard(IASB)and
theInternationalFinancialReportingInterpretations
Committee(IFRIC)issuedthefollowingStandardsand
Interpretationswhichhavealreadybeenadoptedbythe
EuropeanUnionaspartofthecomitologyprocedurebut
whoseapplicationwasnotyetmandatoryinthe2010
financialyear.TheGroupwillnotapplytheseStandards
andInterpretationsforanearlierperiod.
� IFRS1“First-timeAdoptionofInternationalFinancial
ReportingStandards”(LimitedExemptionfromCom-
parativeIFRS7DisclosuresforFirst-timeAdopters)
� IAS24“RelatedPartyDisclosures”
� IAS32“FinancialInstruments:Presentation”(Classi-
ficationofRightsIssues)
� IFRIC14“PrepaymentsofaMinimumFunding
Requirement”
� IFRIC19“ExtinguishingFinancialLiabilities
withEquityInstruments”
� VariousimprovementstoIFRS(omnibusstandardfor
thepurposeofamendingvariousIFRSs).
Basedonsoundjudgement,theSIMONAGroupmay
potentiallybeaffectedbythefollowingamendments:
� IAS1“PresentationofFinancialStatements”
� IAS27“ConsolidatedandSeparateFinancial
Statements”
� IFRS3“BusinessCombinations”
� IFRS7“FinancialInstruments:Disclosures”
WiththeexceptionofIAS24,applicationoftheafore-
mentionedstandardsandinterpretationsisunlikelyto
havesignificantimplicationsforthefuturefinancial
statementsissuedbytheSIMONAGroup:
IAS24(amended)wasissuedinNovember2009and
mustbeappliedbyentitiesforannualperiodsbeginning
onorafter1January2011.Itrevisesthedefinitionof
relatedpartiesinordertosimplifytheprocessofidenti-
fyingrelationshipswithrelatedparties,aswellas
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
31
exemptingareportingentityfromitsdisclosurerequire-
mentsinrelationtorelatedpartytransactionswitha
governmentthathascontrol,jointcontrolorsignificant
influenceoverthereportingentityandanotherentity
thatisarelatedpartybecausethesamegovernment
hascontrol,jointcontrolorsignificantinfluenceover
boththereportingentityandtheotherentity.TheStand-
ardistobeappliedretrospectively.Inviewofthe
extendeddefinitionsetoutintheamendment,itislikely
thatadditionaldisclosuresrelatingtothecircleof
relatedpartiesoftheGroupwillberequired.Thedetails
ofapplicationofthisreviseddefinitionarecurrently
beingassessed.However,theamendmentwillhaveno
implicationsfortherecognitionandmeasurementof
assetsandliabilitiesintheconsolidatedfinancialstate-
mentsandfortheresultsinthefuturefinancialyears.
3.3 Issued standards and interpretations which have
not yet been applied (eu endorsement pending)
TheIASBandIFRICissuedthefollowingStandardsand
Interpretationsthatwerenotyetapplicableinthe2010
financialyear.TheseStandardsandInterpretationshave
yettobeadoptedbytheEuropeanUnionandarethere-
forenotappliedbytheGroup.
� IAS12“IncomeTaxes”(DeferredTax:Recoveryof
UnderlyingAssets)
� IFRS1“First-timeAdoptionofInternationalFinancial
ReportingStandards”(SevereHyperinflationand
RemovalofFixedDatesforFirst-timeAdopters)
� IFRS7“FinancialInstruments:Disclosures”
(IFRSDisclosures—TransfersofFinancialAssets)
� IFRS9“FinancialInstruments:Classificationand
Measurement”(newStandard).
TheimplicationsoftheaforementionedStandardsand
Interpretationswithregardtothefinancialposition,
financialperformanceandcashflowsoftheGroupare
currentlybeinganalysed.However,theGroupdoesnot
anticipatethatitsfinancialposition,financialperform-
anceandcashflowswillbeaffectedbytheapplication
ofsaidamendments.
[4] MAterIAl JudGeMeNtS ANd eStIMAteS
Judgements
Whenapplyingtheaccountingpolicies,themanagement
madethefollowingjudgementswiththemostsignificant
effectontheamountsrecognisedinthefinancialstate-
ments.Withinthiscontext,decisionscontainingesti-
mateshavenotbeentakenintoaccount.Amongother
aspects,significantestimatesrelatetotheusefullives
ofassets.
Materialjudgementsrelatetotheclassificationof
leases,therecognitionofprovisions,theestimationor
assessmentoftherecoverabilityorpossibleimpairment
oftradereceivables,inventoriesanddeferredtax
assets,aswellasassessmentoffactorsthatmayindi-
cateanimpairmentofassets.
uncertainties relating to estimates
Thefollowingsectionoutlinesthemostimportantfor-
ward-lookingassumptionsaswellasothermaterial
uncertaintyregardingtheuseofestimates,applicable
atthereportingdate,asaresultofwhichthereisasig-
nificantriskthatthecarryingamountsofassetsandlia-
bilitiesmayrequirematerialadjustmentswithinthe
comingfinancialyear.
Impairment of goodwill
TheGroupperformsimpairmenttestsforgoodwillat
leastonceperyear.Thisrequiresestimatestobemade
withregardtothevalueinuseofcash-generatingunits
towhichgoodwillisallocated.Forthepurposeofesti-
matingthevalueinuse,theGrouphastodetermine,on
thebasisofestimates,theprojectedcashflowsassoci-
atedwiththecash-generatingunit,aswellasselecting
anappropriatediscountrateinordertodeterminethe
GrOup FINANCIAl StAteMeNtS
32
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
presentvalueoftheaforementionedcashflows.Asat
31December2010,thecarryingamountofgoodwill
was€ 143thousand(prev.year:€ 143thousand).
deferred tax assets
Deferredtaxassetsarerecognisedforthecarryforward
ofunusedtaxlossestotheextentthatitisprobable
thatfuturetaxableprofitwillbeavailableagainstwhich
theunusedtaxlossescanbeutilised.Theprocessof
determiningthelevelofdeferredtaxassetsrequires
significantjudgementbythemanagementwithregardto
thetimingandamountoffuturetaxableprofitaswellas
thefuturetaxplanningstrategies.Forfurtherdetails,
pleaserefertoNote[13].
provisions
Provisionsarerecognisedinaccordancewiththe
accountingpoliciesdiscussedinNote[26].Indetermin-
ingthelevelofprovisions,themanagementisrequired
tomakesignificantjudgementsastothetimingandthe
amountsoffutureoutflowofresources.
pensions
Expensesrelatingtodefinedbenefitplansaredeter-
minedonthebasisofactuarialmethods.Actuarialvalu-
ationisconductedonthebasisofassumptionsin
respectofdiscountrates,futuresalaryincreases,mor-
talityandfuturepensionincreases.Inviewofthelong-
termorientationofsuchplans,theseestimatesare
associatedwithsignificantuncertainty.Forfurther
details,pleaserefertoNote[24].
[5] SuMMArY OF SIGNIFICANt ACCOuNtING
pOlICIeS
Business combinations
a)Businesscombinationsasfrom1January2010
Businesscombinationsareaccountedforbyapplying
theacquisitionmethod.Thecostofabusinesscombi-
nationiscalculatedasthesumoftheconsideration
transferred,measuredattheacquisition-datefairvalue,
andanynon-controllinginterestintheacquiree.Inthe
caseofeachbusinesscombination,theacquirermeas-
urescomponentsofnon-controllinginterestseitherat
fairvalueorattheproportionateshareintherecog-
nisedamountsoftheacquiree’sidentifiablenetassets.
Acquisition-relatedcostsareaccountedforasexpenses
andpresentedasadministrationcosts.
Goodwillismeasuredastheexcessoftheconsidera-
tiontransferredandtheamountofanynon-controlling
interestintheacquireeoverthenetoftheacquisition-
dateamountsoftheidentifiableassetsacquiredand
theliabilitiesassumed.Iftheconsiderationtransferred
islowerthanthefairvalueofthenetassetsofthe
acquiredsubsidiary,thedifferenceisaccountedforin
profitandloss.
Afterinitialrecognition,goodwillismeasuredatcost
lessaccumulatedimpairmentlosses.Forthepurpose
ofimpairmenttesting,asfromthedateofacquisition
goodwillacquiredaspartofabusinesscombinationis
allocatedtothosecash-generatingunitsoftheGroup
thatareexpectedtobenefitfromthebusinesscombina-
tion.Thismethodisappliedregardlessofwhetherother
assetsorliabilitiesoftheacquireeareallocatedto
thesecash-generatingunits.
b)Businesscombinationspriorto1January2010
Themethodpreviouslyappliedtotherecognitionand
measurementofbusinesscombinationsdifferedfrom
theapproachoutlinedabove:
Businesscombinationswereaccountedforbyapplying
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
33
thepurchasemethod.Transactioncostsdirectlyattribut-
abletotheacquisitionrepresentedpartofthecostof
thebusinesscombination.Thenon-controllinginterest
(previouslyreferredtoasminorityinterests)wasmeas-
uredatthecorrespondingpro-ratashareoftheidentifi-
ablenetassetsoftheacquiree.
Allbusinessacquisitionsweretransactedpriorto1Janu-
ary2010.
Currency translation
Annualfinancialstatementspreparedbytheconsoli-
datedGroupentitiesinaforeigncurrencyaretranslated
onthebasisofthefunctionalcurrencymethod.The
functionalcurrencyisthecurrencyoftheprimaryeco-
nomicenvironmentinwhichtheentitiesoperate,which
inthecaseoftheGroupcompaniesofSIMONAAGis
therespectivelocalcurrency.Theconsolidatedfinancial
statementsarepreparedineuro.
Thoseforeignentitieswhosefunctionalcurrenciesdiffer
fromtheeurohavebeenpresentedbelow,togetherwith
detailsoftheirfunctionalcurrency:
SIMONAUKLtd.,Stafford,UnitedKingdom–
PoundSterling
SIMONAPOLSKASp.zo.o.,Wrocław/Poland–
PolishZloty
DEHOPLASTPOLSKASp.zo.o.,Kwidzyn,Poland–
PolishZloty
SIMONA-PLASTICSCZs.r.o,Prague,CzechRepublic–
CzechKoruna
SIMONAPlast-Techniks.r.o.,Litvinov,CzechRepublic–
CzechKoruna
SIMONAFAREASTLtd.,HongKong,China–
HongKongDollar
SIMONAASIALtd.,HongKong,China–
HongKongDollar
SIMONAAMERICAInc.,Hazleton,USA–USDollar
64NORTHCONAHANDRIVEHOLDINGLLC,Hazleton,
USA–USDollar
SIMONAENGINEERINGPLASTICSTRADINGCo.Ltd.,
Shanghai,China–Renminbi
SIMONAENGINEERINGPLASTICSCo.Ltd.,Jiangmen,
China–Renminbi
Theitemsaccountedforintherespectivefinancialstate-
mentsaremeasuredonthebasisofthefunctionalcur-
rency.Foreigncurrencytransactionsaretranslatedini-
tiallybetweenthefunctionalcurrencyandtheforeign
currencyatthearithmeticmeanrateapplicableonthe
dayofthetransaction.Allexchangedifferencesare
recordedinprofitorlossfortheperiod.
Non-monetaryitemsthataremeasuredathistoricalcost
ofpurchaseorconversioninaforeigncurrencyaretrans-
latedattheforeignexchangerateapplicableontheday
ofthetransaction.Non-monetaryitemsthataremeas-
uredatfairvalueintheforeigncurrencyaretranslated
attheratethatwasprevailingatthetimethefairvalue
wasdetermined.
Intheconsolidatedfinancialstatementsexpensesand
incomeassociatedwithfinancialstatementsofsubsidi-
ariespreparedinaforeigncurrencyaretranslatedon
thebasisoftheyear-averageexchangerate,whereas
assetsandliabilitiesaretranslatedonthebasisofthe
closingrate.Exchangedifferencesarisingfromthetrans-
lationofequityaswellasexchangedifferencesarising
fromtheuseofexchangeratesintheincomestatement
thatdifferfromthoseusedforthetranslationofbalance
sheetitemsarerecognisedinotherreserves.
Onthedisposalofaforeignoperation,thecumulative
amountoftheexchangedifferencesaccountedforin
respectoftheforeignoperationisrecognisedinprofitor
loss.
property, plant and equipment
Allitemsclassifiedasproperty,plantandequipmentare
usedforoperationalpurposesandaremeasuredatcost
lessdepreciationonasystematicbasis.Depreciationof
property,plantandequipmentisperformedonastraight-
GrOup FINANCIAl StAteMeNtS
34
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
linebasisinaccordancewiththepatternofuseofsuch
items.Totheextentthatdepreciableassetsofproperty,
plantandequipmenthavedifferentusefullives,theyare
depreciatedseparately.
Thecarryingamountsofproperty,plantandequipment
aretestedforimpairmentassoonasthereareindica-
tionsthatthecarryingamountofanassetexceedsits
recoverableamount.
Theresidualvaluesofassetsaswellastheusefullives
anddepreciationmethodsareassessedattheendof
eachfinancialyearandareadjustedwherenecessary.
leasing
Whetheranagreementconstitutesaleaseisdeter-
minedonthebasisofthesubstanceofthetransaction
detailedintheagreementatthetimetheagreementis
concluded.Thisrequiresanassessmentastowhether
thefulfilmentofthecontractualagreementisdepend-
entontheuseofaspecificassetorspecificassets
andwhethertheagreementgrantstherighttousethe
asset/assetsevenifthisrightisnotspecificallydefined
intheagreement.
Financeleases,whichtransfertotheGroupsubstan-
tiallyalltherisksandrewardsincidentaltoownershipof
anasset,arerecognisedasassetsinthestatementof
financialpositionatthecommencementofthelease
term.Asat31December2010,nosuchfinanceleases
existedwithintheGroup.
Leasepaymentunderanoperatingleasearerecognised
intheincomestatementasanexpenseonastraight-
linebasisandarepresentedasotheroperating
expense.
Borrowing costs
Borrowingcoststhataredirectlyattributabletothe
acquisition,constructionorproductionofaqualifying
asset,whichisdefinedasanassetthatnecessarily
takesasubstantialperiodoftimetogetreadyforits
intendeduseorsale,formpartofthecostofthatasset
andarecapitalisedaccordingly.Allotherborrowing
costsarerecognisedasanexpenseintheperiodin
whichtheyareincurred.Borrowingcostsareinterest
andothercoststhatanentityincursinconnectionwith
theborrowingoffunds.Noborrowingcostshavebeen
capitalisedbytheGroup,asitdoesnotpossessqualify-
ingassets.
Intangible assets
Acquiredandinternallygeneratedintangibleassetsare
capitalisedinaccordancewithIAS38ifitisprobable
thattheintangibleassetwillgeneratefutureeconomic
benefitsandthecostsoftheintangibleassetcanbe
reliablymeasured.Theyaremeasuredatcostofpur-
chaseorconversion.Intangibleassetswithafiniteuse-
fullifeareamortisedonthebasisofthelengthofthat
usefullife.Amortisationofintangibleassets,withthe
exceptionofcapitaliseddevelopmentcosts,isper-
formedoverausefullifeofbetweenthreeandfive
years.Intangibleassetswithindefiniteusefullivesare
regularlyassessedforimpairment.Inthecaseof
impairment,theyareadjustedtotheirrecoverable
amount.
research and development costs
Theresearchanddevelopmentactivitiesconductedby
SIMONAAGaredirectedprincipallyattheoptimisationof
productionandmanufacturingprocesses(advancement
withintheareaofproductionengineering),atchanges
andimprovementstoformulae,someofwhichhavebeen
inexistenceforanextensiveperiodoftime,oratfunda-
mentalimprovementsforthepurposeofmeetingspeci-
fiedqualityandinspectionrequirements,includingnew
testingproceduresandnewareasofapplication.Gener-
ally,theseactivitiesdonotinvolvethedevelopmentofan
entirelynewproductthatwouldseverthelinkwithexist-
ingformulaeandmanufacturingprocesses.
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
35
Totheextentthatresearchanddevelopmentactivities
providethebasisforaproductthatistechnicallyfeas-
ibleandfromwhichtheGroupcangeneratefutureeco-
nomicbenefits,theperiodattributabletogeneral
researchactivitiesconstitutesthemajorpartthereof.
Thescaleofdevelopmentexpensesarisingafterthe
producthasbeenmademarketableisnegligible.Incon-
siderationoftheprincipleofmaterialitytheintangible
assetisnotcapitalisedinsuchcases.Thisapproach
doesnotadverselyeffectthetrueandfairviewofthe
Group’sstateofaffairsasregardsfinancialperform-
ance,financialpositionandcashflows.
Inaddition,SIMONAAGdoesnotcapitalisedevelop-
mentcoststotheextentthatcosts(expenditure)can-
notbereliablyallocatedtodevelopmentprojects.The
costsarerecognisedasexpenseintheperiodinwhich
theyareincurred.
Therewerenodevelopmentprojectsresultinginthe
capitalisationofintangibleassetsin2010or2009.
Impairment of assets
TheGroupassessesateachreportingdatewhether
thereisanyindicationthatanassetmaybeimpaired.If
suchindicationsarepresentoranannualimpairment
testofanassetisrequired,theGroupmakesanesti-
mateoftherecoverableamount.Therecoverable
amountofanassetoracash-generatingunitisthe
higherofitsfairvaluelesscoststosellanditsvaluein
use.Iftherecoverableamountofanassetislessthan
itscarryingamount,thecarryingamountoftheasset
shallbereducedtoitsrecoverableamount.Thatreduc-
tionisanimpairmentloss.
Investments and other financial assets
FinancialassetswithinthemeaningofIAS39areclassi-
fiedeitherasfinancialassetsatfairvaluethroughprofit
orloss,asloansandreceivables,asheld-to-maturity
investmentsorasavailable-for-salefinancialassets.On
initialrecognitionthefinancialassetsaremeasuredat
fairvalue.Additionally,inthecaseoffinancialassets
otherthanthoseclassifiedasatfairvaluethroughprofit
orloss,transactioncostsdirectlyattributabletothe
acquisitionoftheassetareaccountedforaccordingly.
Thedesignationoffinancialassetstotherespective
measurementcategoriesoccursuponinitialrecognition.
Totheextentthattheyarepermittedandnecessary,
reclassificationsareperformedattheendofthefinan-
cialyear.Noreclassificationshavebeenperformedto
date.
Allregularwaypurchasesorsalesoffinancialassetsare
accountedforatthedateofsettlement.Aregularway
purchaseorsaleisapurchaseorsaleofafinancial
assetunderacontractwhosetermsrequiredeliveryof
theassetwithinthetimeframeestablishedgenerallyby
regulationorconventioninthemarketplaceconcerned.
Thegroupoffinancialassetsatfairvaluethroughprofit
orlosscomprisesfinancialassetsheldfortrading.A
financialassetisclassifiedasheldfortradingifitis
acquiredprincipallyforthepurposeofsellingitinthe
nearterm.Derivates,includingembeddedderivatives
accountedforseparately,arealsoclassifiedasheldfor
trading,withtheexceptionofthosederivativesthatare
designatedandeffectivehedginginstruments.Gainsand
lossesonfinancialassetsheldfortradingarerecognised
inprofitorloss.TheGrouphasnotmadeuseofthe
optiontodesignatefinancialassetsorliabilitiesas
“measuredatfairvaluethroughprofitorloss”.
Derivativesembeddedwithinahostcontractarerecog-
nisedseparatelyattheirfairvalueiftheireconomicchar-
acteristicsandrisksarenotcloselyrelatedtothoseof
thehostcontractandthehostcontractsarenotheldfor
tradingpurposesorarenotdesignatedas“atfairvalue
throughprofitorloss”.Theseembeddedderivativesare
measuredattheirfairvalue;changestothefairvalue
arerecognisedinprofitorloss.Areassessmentisper-
formedonlyuponamendmentstothecontractualterms
GrOup FINANCIAl StAteMeNtS
36
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
andconditionsifthisleadstoasignificantchangetothe
cashflowsthatwouldotherwisehaveresultedfromthe
contract.
Non-derivativefinancialassetswithfixedordeterminable
paymentsandfixedmaturitythatanentityhastheposi-
tiveintentionandabilitytoholdtomaturityareclassified
asheld-to-maturityinvestments.Afterinitialrecognition
held-to-maturityinvestmentsaremeasuredatamortised
costusingtheeffectiveinterestmethod.Gainsorlosses
arerecognisedinprofitorlosswhenthefinancialasset
isderecognisedorimpaired,andthroughtheamortisa-
tionprocess.
Loansandreceivablesarenon-derivativefinancialassets
withfixedordeterminablepaymentsthatarenotquoted
inanactivemarket.Afterinitialrecognitionloansand
receivablesaremeasuredatamortisedcostusingthe
effectiveinterestmethod,lessimpairmentswhere
applicable.Gainsorlossesarerecognisedinprofitor
losswhentheloansandreceivablesarederecognisedor
impaired,andthroughtheamortisationprocess.
Available-for-salefinancialassetsarethosenon-deriva-
tivefinancialassetsthataredesignatedasavailablefor
saleorarenotclassifiedas(a)loansandreceivables,
(b)held-to-maturityinvestmentsor(c)financialassetsat
fairvaluethroughprofitorloss.Afterinitialrecognition
available-for-salefinancialassetsaremeasuredatfair
value.Unrealisedgainsandlossesonavailable-for-sale
financialassetsarerecogniseddirectlyinequity.Ifan
available-for-salefinancialassetisderecognisedor
impaired,thecumulativegainorlosspreviouslyrecog-
nisedinequityisrecognisedinprofitorloss.
Thefairvalueoffinancialinstrumentstradedwithin
organisedandactivemarketsisdeterminedonthe
basisofthemarketpricequotedatthereportingdate.
Thefairvalueoffinancialinstrumentsforwhichno
activemarketexistsisdeterminedonthebasisofvalu-
ationtechniques.Valuationtechniquesincludeusing
recentarm’slengthmarkettransactionsbetweenknow-
ledgeable,willingparties,ifavailable,referencetothe
currentfairvalueofanotherinstrumentthatissubstan-
tiallythesame,discountedcashflowanalysisandother
valuationmodels.
Held-to-maturityinvestmentsaswellasloansandreceiv-
ablesaremeasuredatamortisedcost.Thecalculation
includesallfeesandpointspaidorreceivedbetween
partiestothecontractthatareanintegralpartofthe
effectiveinterestrate,transactioncosts,andallother
premiumsordiscounts,minusanyreductionforimpair-
ments.
Afinancialasset(orapartofafinancialassetorapart
ofagroupofsimilarfinancialassets)isderecognised
whenthecontractualrightstothecashflowsfromthe
financialassetexpire.
Impairment of financial assets
TheGroupdeterminesattheendofeachreportingperiod
whetherthereisanyobjectiveevidencethatafinancial
assetorgroupoffinancialassetsisimpaired.Ifthereis
objectiveevidencethatanimpairmentlossonfinancial
assetscarriedatamortisedcosthasbeenincurred,the
amountoftheimpairmentlossismeasuredasthedif-
ferencebetweentheasset’scarryingamountandthe
presentvalueofestimatedfuturecashflowsdiscounted
atthefinancialasset’soriginaleffectiveinterestrate,
i.e.theeffectiveinterestratecomputedatinitialrecog-
nition.Thecarryingamountoftheassetisreduced
throughuseofanallowanceaccount.Theamountofthe
impairmentlossisrecognisedinprofitorloss.If,ina
subsequentperiod,theamountoftheimpairmentloss
decreasesandthedecreasecanberelatedobjectively
toaneventoccurringaftertheimpairmentwasrecog-
nised,thepreviouslyrecognisedimpairmentlossis
reversed.However,thenewcarryingamountmustnot
exceedtheamortisedcostatthedatetheimpairment
isreversed.Theamountofthereversalisrecognisedin
profitorloss.
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
37
Ifinthecaseoftradereceivablesthereisobjectiveevi-
dencethatnotalldueamountswillbereceivedin
accordancewiththeagreedinvoicingtermsandcondi-
tions(e.g.likelihoodofaninsolvencyorsignificant
financialdifficultiesoftheobligor),thecarryingamount
isreducedthroughuseofanallowanceaccount.Receiv-
ablesarederecognisedwhentheyareconsideredtobe
uncollectible.
Inventories
Inventoriesarestatedatthelowerofpurchaseorcon-
versioncostandcurrentcostornetrealisablevalue.
Theinventoriesassociatedwithconsumableshavebeen
capitalisedataveragehistoricalcost.AspartofGroup
accounting,thecostofrawmaterialsisassignedmainly
byusingthefirst-in,first-out(FIFO)method.Finished
goodsaremeasuredatmanufacturingcost(costofcon-
version)accordingtoitem-by-itemcalculationsbasedon
currentoperationalaccounting;inadditiontothedirectly
relatedcostofdirectmaterialandunitsofproduction,
thisitemalsoincludesspecialproductioncostsaswell
asproductionandmaterialoverheads,includingdeprecia-
tion.Financingcostsarenotaccountedforinthecostof
conversion.Allidentifiablerisksassociatedwithinventor-
ies,particularlyrelatingtoholdingperiodsinexcessof
averageduration,diminishedusabilityandnetrealisable
value,arerecognisedbyanappropriatewrite-down.
Thenetrealisablevalueistheestimatedsellingprice
achievableintheordinarycourseofbusiness,lessthe
estimatedcostsincurreduntilcompletionandthe
estimatedcostsnecessarytomakethesale.
Interest-bearing borrowings
Oninitialrecognition,loansaremeasuredatthefairvalue
oftheconsiderationreceived,havingdeductedthe
transactioncostsrelatingtotheoriginationoftheloan.
Afterinitialrecognitioninterest-bearingborrowingsare
measuredatamortisedcostusingtheeffectiveinterest
method.Afinancialliabilityisderecognisedwhenthe
obligationspecifiedinthecontractisdischarged,can-
celledorwhenitexpires.
Cash and cash equivalents
Cashandcashequivalentsrecognisedinthestatement
offinancialpositioncomprisecashonhand,bankbal-
ancesandshort-termdepositswithoriginalmaturities
oflessthanthreemonths.
AsregardstheGroupstatementofcashflows,cashand
cashequivalentscomprisetheaforementionedcashand
cashequivalentsinadditiontooverdraftsusedbythe
Groupandsecuritiesthatarereadilyconvertibletocash.
Other provisions
Otherprovisionsarerecognisedwhenanobligation
existstowardsathirdparty,settlementofthisobligation
isprobableandareliableestimatecanbemadeofthe
amountoftherequiredprovision.Otherprovisionsare
measuredataggregatecosts.Long-termprovisionswith
morethanoneyeartomaturityarerecognisedattheir
discountedsettlementvalueasatthereportingdate.
pensions
TheGrouphasdirectpensionplansaswellasoneindi-
rectpensionplan.Theindirectpensionplanisserviced
bySIMONASozialwerkGmbH,whichmanagestheplan
assets.TheplanassetsareaccountedforintheGroup
statementoffinancialpositionsuchthatthefairvalue
ofthoseassetsofSIMONASozialwerkGmbHand
SIMONAVermögensverwaltungsgesellschaftderBeleg-
schaftmbHthatfulfiltherequirementsforplanassets
GrOup FINANCIAl StAteMeNtS
38
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
aredeductedfromthebenefitobligationoftheGroup
(fundingcompany)whenmeasuringthepensionprovi-
siontoberecognised.Astherequirementsforplan
assetsspecifiedinIAS19.7havebeenfulfilled,the
deductionoftheplanassetsfromtheobligationofthe
Groupdoesnotgiverisetoanobligationtoconsolidate
onthepartofSIMONASozialwerkGmbHandSIMONA
VermögensverwaltungsgesellschaftderBelegschaft
mbHbecausetheirsolepurposeistoservicethepen-
sionobligations.
Provisionsforpensionsareaccountedforonthebasis
oftheProjectedUnitCreditMethod(sometimesknown
astheaccruedbenefitmethodpro-ratedonserviceor
asthebenefit/yearsofservicemethod)(IAS19).As
partofthisprocess,besidespensionsandbenefits
knownatthereportingdate,expectedfutureincreases
insalariesandpensionsareaccountedforwithsuffi-
cientreliability.Thecalculationisbasedonactuarial
reportsthattakeintoaccountspecificbiometricdata.
Actuarialgainsandlossesarerecognisedasincomeor
expenseifthenetcumulativeunrecognisedactuarial
gainsandlossesattheendofthepreviousreporting
periodexceededthegreaterof10percentofthe
presentvalueofthedefinedbenefitobligationatthat
date(beforedeductingplanassets)and10percentof
thefairvalueofanyplanassetsatthatdate.
Theamountrecognisedasadefinedbenefitliabilityis
thenettotalofthepresentvalueofthedefinedbenefit
obligationattheendofthereportingperiodplusany
actuarialgains(lessanyactuariallosses)notrecog-
nisedminusanypastservicecostnotyetrecognised
minusthefairvalueattheendofthereportingperiod
ofplanassetsoutofwhichtheobligationsaretobe
settleddirectly.
Government grants
Agovernmentgrantisnotrecogniseduntilthereisreas-
onableassurancethattheentitywillcomplywiththe
conditionsattachingtoit,andthatthegrantwillbe
received.Grantsrelatedtoincomearepresentedinthe
incomestatementas“otheroperatingincome”.
revenue recognition
Revenueisrecognisedwhenitisprobablethattheeco-
nomicbenefitsassociatedwithatransactionwillflowto
theGroupandtheamountofrevenuecanbemeasured
reliably.Additionally,thefollowingconditionsmustbe
satisfiedfortherecognitionofrevenue.
a)Saleofgoods
RevenueisrecognisedwhentheGrouphastransferred
tothebuyerthesignificantrisksandrewardsofowner-
shipofthegoods.
b)Interest
Revenueisrecognisedusingtheeffectiveinterestmethod
whentheinterestarises.
taxes
a)Currenttaxassetsandcurrenttaxliabilities
Currenttaxliabilitiesandcurrenttaxassetsforcurrent
andpriorperiodsaremeasuredattheamountexpected
tobepaidtoorrecoveredfromthetaxationauthorities,
usingthetaxratesandtaxlawsthathavebeenenacted
orsubstantivelyenactedbytheendofthereporting
period.
b)Deferredtaxes
Deferredtaxesarerecognisedforalltemporarydiffer-
encesbetweenthecarryingamountofanassetorliabil-
ityinthestatementoffinancialpositionanditstax
baseaswellasinconnectionwithconsolidationproced-
ures.Additionally,adeferredtaxassetisrecognisedfor
alldeductibletemporarydifferencestotheextentthatit
isprobablethattaxableprofitwillbeavailableagainst
whichthedeductibletemporarydifferencecanbeuti-
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
39
lised.Deferredtaxassetsandliabilitiesaremeasured
atthetaxratesthatareexpectedtoapplytotheperiod
whentheassetisrealisedortheliabilityissettled,
basedontaxrates(andtaxlaws)thathavebeen
enactedorsubstantivelyenactedbytheendofthe
reportingperiod.
c)Valueaddedtax
Salesrevenues,expensesandassetsarerecognised
afterdeductionofvalueaddedtax.
derivative financial instruments and hedging
instruments
Derivatefinancialinstrumentsareusedsolelyforhedg-
ingpurposesinordertomitigatecurrencyandinterest
raterisksarisingfromoperatingbusiness.UnderIAS
39,allderivativefinancialinstruments,suchasinterest
rate,currencyandforeignexchangeforwardcontracts
aswellascurrencyoptions,aretobecarriedatfair
value,irrespectiveofthepurposesuchtransactions
havebeenenteredintobytheentity.
Thederivativefinancialinstrumentsdonotfulfilthe
restrictiverequirementsofIAS39applyingtotherecog-
nitionofhedgingrelationships.Therefore,gainsand
lossesarisingfromachangeinthefairvalueofderiva-
tivefinancialinstrumentsarerecognisedimmediatelyin
profitorloss.
Thefairvalueofderivativefinancialinstrumentsiscal-
culatedonthebasisofmarketdataandgenerally
acceptedvaluationmethodologies.Themarketchanges
associatedwithderivativefinancialinstrumentsare
reportedinnetfinancecost/income.
GrOup FINANCIAl StAteMeNtS
40
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
[6] SeGMeNt repOrtING
Forcompanymanagementpurposes,theGroupis
organisedaccordingtogeographicregionsandhasthe
threefollowingreportableoperatingsegments:
�Germany
�RestofEuropeandAfrica
�Asia,AmericaandAustralia
Allthreesegmentsgeneratetheirrevenuesmainly
throughthesaleofsemi-finishedplasticsandpipes,as
wellasfittingsandfinishedparts.
Managementassessestheoperatingresultsofthese
segmentsforthepurposeofmakingdecisionsastothe
distributionofresourcesanddeterminingtheprofitabil-
ityofthebusinessunits.Segmentprofitabilityisdeter-
minedonthebasisofoperatingresultsfromoperating
activitiesbeforetheeffectsoffinancingactivitiesand
excludingincometaxeffects.
Asamatterofcourse,segmentinformationisbased
onthesameprinciplesofpresentationandthesame
accountingpoliciesasthoseappliedtotheconsoli-
datedfinancialstatements.Receivables,liabilities,reve-
nuesandexpensesaswellasprofit/lossbetweenthe
individualsegmentsareeliminatedaspartofreconcilia-
tion.Internaltransferpricingbetweenthebusinessseg-
mentsisdeterminedonthebasisofcompetitivemarket
priceschargedtounaffiliatedthirdparties(regularway
transaction).Externalsalesrevenuerelatestothe
countryinwhichthecustomerisdomiciled.Capital
expenditurerelatestoadditionstointangibleassetsas
wellasproperty,plantandequipment.Segmentassets
andsegmentliabilitiescompriseassetsandliabilities
thatcontributetotheachievementofoperatingprofit.
Depreciationandamortisationofnon-currentassets
relatetobothintangibleassetsandproperty,plantand
equipment.
Thefollowingtablesincludeinformationrelatingtoreve-
nuesandprofitorlossaswellasspecificinformation
regardingassetsandliabilitiesofthesegments.The
differencesinrespectoftheconsolidatedfinancial
statementsarepresentedinthereconciliation.
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
41
Areconciliationbetweensegmentassets,segment
liabilitiesandsegmentprofit/lossandcurrentandnon-
currentassetsandliabilitiesaswellasearningsbefore
taxesispresentedbelow:
GrOup FINANCIAl StAteMeNtS
SeGMeNt INFOrMAtION – SIMONA GrOup FOr FY 2010
Segmentation by region
Germany rest of europe and Africa
Asia, America and Australia
eliminations Group
in€ ‘000 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Revenuefromsalestoexternalcustomers
90,625 76,518 132,689 115,387 44,475 24,319 –387 –1,154 267,402 215,070
Revenuefromsalestoothersegments
14,583 0 48,336 47,097 12,522 5,306 –75,441 –52,403 0 0
Segment revenue 267,402 215,070
Segmentresult 6,546 4,080 3,925 3,836 –402 –597 0 0 10,069 7,319
Segmentassets 123,160 122,362 33,862 31,032 33,138 24,344 190,160 177,738
Segmentliabilities 60,238 62,150 4,315 3,479 5,671 2,482 70,224 68,111
Segmentcapitalexpenditure
3,576 5,323 696 4,023 2,329 3,050 6,601 12,396
Depreciation/amortisation 9,842 12,860* 1,138 925 1,626 769 12,606 14,554
*Depreciation/amortisationincludesimpairmentlossesof€ 1,790thousand
reCONCIlIAtION
in€ ‘000 31/12/10 31/12/09
Segmentassets 190,160 177,738
Otherfinancialassets 10,000 0
Cashandcashequivalents 39,316 61,479
Non-currenttaxassets 3,773 4,320
Currenttaxassets 1,567 889
Deferredtaxassets 173 236
Financialassets 23 23
Current and non-current assets
245,012 244,685
Segmentliabilities 70,224 68,111
Deferredtaxliabilities 5,654 5,271
Incometaxliabilities 1,607 2,638
Non-currentfinancialliabilities 4,848 7,000
Currentfinancialliabilities 313 3,824
Derivativefinancialinstruments 155 295
Current and non-current liabilities
82,801 87,139
Segmentresult 10,069 7,319
Incomefromequityinvestments 500 0
Interestincome 498 506
Interestexpense 579 690
earnings before taxes 10,488 7,135
42
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
Information relating to product groups
SAleS reVeNue FrOM eXterNAl CuStOMerS
in € ‘000 2010 2009
Semi-finishedproductsandfinishedparts 196,816 149,534
Pipesandfittings 70,586 65,536
total 267,402 215,070
NOteS tO GrOup INCOMe StAteMeNt
[7] SAleS reVeNue
Salesrevenueisattributablesolelytothesaleofsemi-
finishedplastics,pipesandfittingsaswellasfinished
parts.Theclassificationofsalesrevenuebyregionand
productsegmentisoutlinedinsegmentreporting–
Note[6].
[8] OtHer OperAtING INCOMe
Otheroperatingincomeincludesgovernmentgrantsof
€ 546thousand(prev.year:€ 0).Theywereprovidedby
theCzechstateforthepurposeofpromotinginvest-
mentsintheCzechRepublic.Thegovernmentgrantwas
issuedsubjecttotheprovisothat65newjobsarecre-
atedintheCzechRepublic.InaccordancewithIAS
20.7,thegovernmentgrantwasrecognisedinprofitor
loss,asthereisreasonableassurancethattheGroup
willcomplywiththeconditionsattachingtoit.
[9] StAFF COStS
in € ‘000 2010 2009
Wagesandsalaries 44,243 43,703
Expensesrelatingtosocialsecurity 9,015 9,005
Expensesrelatingtopensions 2,618 2,548
55,876 55,256
[10] reSeArCH ANd deVelOpMeNt eXpeNSeS
Thecostsincurredaspartofresearchanddevelopment
activitiesvaryinnatureandarerecognisedinthe
respectiveitemsoftheGroupincomestatement.Delin-
eationofresearchanddevelopmentcostsfromcosts
incurredwhenimplementingcustomisedproductproper-
tiesisnotpossibleonasystematicbasisduetothe
sameproductionprocessesappliedinbothareas.
Researchanddevelopmentexpensesaremainlycom-
prisedofstaffcosts,materialcostsanddepreciationof
property,plantandequipment.
[11] reNtAl ANd leASING eXpeNSeS
Otheroperatingexpensesincludeexpensesrelatingto
rentalandleaseagreementsamountingto€ 1,961
thousandinthefinancialyearunderreview(prev.year:
€ 1,978thousand).Theexpensesareattributablemainly
totherentalofdispatchwarehousesandproduction
facilities.Therentalagreementshavevariouscontractual
maturities(usually3to15years);someoftherental
agreementsincludeoptionsfortheextensionofrental
periods.Allrentalandleaseagreementsarestructured
asoperatingleaseswithinthemeaningofIAS17.
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
43
GrOup FINANCIAl StAteMeNtS
[12] Net FINANCe INCOMe
in€ ‘000 2010 2009
Interest income 498 506
ofwhichfromthemeasurementofderivatives 163 76
ofwhichfromloansandreceivables 335 430
in€ ‘000 2010 2009
Interest expense 579 690
ofwhichfromborrowingsandfinancialliabilities 579 690
[13] INCOMe tAXeS
Theprincipalelementsofincometaxexpenseforthe
2010and2009financialyearsareasfollows:
GrOup INCOMe StAteMeNt
in€ ‘000 2010 2009
Current tax
Currenttaxexpense 2,780 4,185
Adjustmentsofcurrenttaxattributabletopreviousperiods 230 –80
Incomefrommeasurementofcreditsforthereductionofcorporationtax –193 –214
deferred tax
Originationandreversaloftemporarydifferences 446 –1,778
Income tax expense reported in Group income statement 3,263 2,113
Reconciliationbetweenincometaxexpenseandthe
productofprofitfortheyearcarriedinthestatementof
financialpositionandthetaxrateapplicabletothe
Groupforthe2010and2009financialyearsisas
follows:
in€ ‘000 2010 2009
earnings before taxes 10,488 7,135
IncometaxexpenseatGermantaxrateof29.13%(prev.year28.43%) 3,055 2,028
Adjustmentsofcurrenttaxattributabletopreviousperiods 230 –80
Taxeffectofnon-deductibleexpenses 20 26
Taxratedifferences –526 –125
Incomefrommeasurementofcreditsforthereductionofcorporationtax –193 –214
Losscarryforwardsusedinconnectionwithdeferredtaxassetsnotrecognisedinpreviousyear –136 –116
Unrecogniseddeferredtaxassetsrelatingtotaxlosses 1,006 532
Tax-freedividendincome –207 0
Other 14 62
Income tax expense at effective tax rate of 31.11%(prev. year 29.61%) 3,263 2,113
Income tax expense reported inGroup income statement 3,263 2,113
44
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
At31December2010,thepotentialcreditforthe
reductionofcorporationtax,whichresultsfromthepro-
visionssetoutinSection37and38KStGandistobe
disclosedinaccordancewithIAS12.82A,was€ 5,175
thousand(prev.year:€ 5,914thousand).Intheperiod
underreview,thecreditforthereductionofcorporation
taxwasmeasuredatthepresentvalueof€ 4,492thou-
sand(prev.year:€ 5,037thousand).Payoutsinconnec-
tionwiththecorporationtaxcreditswillbemadein
sevenremainingannualinstalmentsof€ 739thousand
p.a.intheperiodfrom2011to2017.Totheextentthat
thesepaymentsdonotfallduewithinoneyear,the
itemsareaccountedforinthestatementoffinancial
positionasnon-currentassets.Paymentsduewithin
oneyeararecarriedascurrentassets.
deferred tax
Thedeferredtaxliabilitiesandassetsfortheperiod
underreviewareoutlinedbelow:
Group statement of financial position
Group income statement
in€ ‘000 31/12/10 31/12/09 2010 2009
deferred tax liabilities
Non-currentassets 7,758 7,954 –196 –700
Inventories 3,031 1,677 1,354 –780
Receivablesandotherassets 261 168 93 –93
Otherprovisionsandliabilities 18 52 –34 –99
Otheritems 0 0 0 –211
11,068 9,851 1,217 –1,883
deferred tax assets
Provisionsforpensions 4,626 3,565 –1,061 59
Otherprovisionsandliabilities 393 490 97 20
Inventories 455 465 10 115
Losscarryforward 47 179 132 –118
Otheritems 66 117 51 29
5,587 4,816 –771 105
afterset-off:
deferred tax assets 173 236
deferred tax liabilities –5,654 –5,271
deferred tax expense(prev. year: deferred tax income) 446 –1,778
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
45
GrOup FINANCIAl StAteMeNtS
Deferredtaxassetsanddeferredtaxliabilitiesareoff-
settotheextentthatthecompanyhasalegallyenforce-
ablerighttosetoffcurrenttaxassetsagainstcurrent
taxliabilitiesandthedeferredtaxassetsandthe
deferredtaxliabilitiesrelatedtoincometaxesleviedby
thesametaxationauthority(IAS12.74).
Attheendofthereportingdate,losscarryforwards
amountedto€ 12,544thousand(prev.year:€ 10,990
thousand).Deferredtaxassetsof€ 47thousand(prev.
year:€ 179thousand)wererecognisedfor€ 271thou-
sand(prev.year:€ 1,147thousand)ofthelosscarry-
forwardsmentionedabove.Beyondthis,noother
deferredtaxassetswererecognised,asthelossesmay
notbeusedforthepurposeofset-offwiththetaxable
profitofotherGroupcompanieswhoseearningssitua-
tionisunlikelytoimprovesosignificantlyintheshort
termthatfuturetaxableprofitwillbeavailableagainst
whichtheunusedtaxlossescanbeutilised.
eXpIrY dAte OF tAX lOSS CArrYFOrWArdS
in€ ‘000 2010 2009
Between3and20years 11,579 10,452
Indefinitecarryforward 965 538
12,544 10,990
[14] eArNINGS per SHAre
Forthecalculationofbasicearningspershare,the
profitorlossattributabletoordinaryequityholdersof
theparententitysharesisdividedbytheweightedaver-
agenumberofordinarysharesoutstandingduringthe
year.Therewerenodilutiveeffectsinthe2010or2009
reportingperiods.
Thefollowingtablepresentstheamountsrelevantto
thecalculationofbasicanddilutedearningspershare:
in€ ‘000orunitsof1,000 2010 2009
Profitorlossattributabletoordinaryequityholdersoftheparentcompany 7,198 4,988
Weightedaveragenumberofordinaryshares(withouttreasuryshares)forthepurposeofcalculatingbasicearningspershare 600 600
Dilutiveeffects 0 0
Weightedaveragenumberofordinaryshares(withouttreasuryshares)forthepurposeofcalculatingdilutedearningspershare 600 600
Basicearningspershare(ineuro) 12.00 8.31
Dilutedearningspershare(ineuro) 12.00 8.31
Notransactionswithordinarysharesoccurredbetween
thereportingdateandthepreparationoftheconsoli-
datedfinancialstatements.
[15] pAId ANd prOpOSed dIVIdeNdS
Duringthefinancialyearadividend,attributabletothe
ordinarysharesoftheparentcompany,intheamountof
€ 6.00persharewasdeclaredanddistributed.The
totalpaymentmadeinthefinancialyearunderreview
amountedto€ 3,600thousand(prev.year:€ 5,100
thousand).
Adividendproposalof€ 6.50pershare(prev.year:
€ 6.00pershare)willbesubmittedtotheAnnualGen-
eralMeetingofShareholders.Theproposedtotaldivi-
dendwasnotrecognisedasaliabilityatthereporting
date.Thecorrespondingpaymentwouldtotal€ 3,900
thousand(prev.year:€ 3,600thousand).
46
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
NOteS tO tHe GrOup StAteMeNt OF FINANCIAl
pOSItION
[16] INtANGIBle ASSetS
31 deCeMBer 2010
in€ ‘000patents and
licences Goodwill total
Balanceat1January2010(Costofpurchase/conver-sion,takingintoaccountaccumulatedamortisationandimpairments) 1,269 143 1,412
Additions 89 0 89
Amortisationduringthefinancialyear –277 0 –277
Effectsofchangesinforeigncurrencyexchangerates 70 0 70
Balance at 31 december 2010 (Cost of purchase/conversion, taking into account accumulated amortisation and impair-ments) 1,151 143 1,294
Balanceat1January2010
Costofpurchase/con-version(grosscarryingamount) 8,460 143 8,603
Accumulatedamortisation –7,191 0 –7,191
Carrying amount 1,269 143 1,412
Balanceat31December2010
Costofpurchase/con-version(grosscarryingamount) 8,592 143 8,735
Accumulatedamortisation –7,441 0 –7,441
Carrying amount 1,151 143 1,294
Inaccordancewiththemethodappliedintheprevious
year,patentsandlicencesareamortisedsystematically
overtheireconomiclifeofthreetofiveyearsbyusing
thestraight-linemethod.
31 deCeMBer 2009
in€ ‘000patents and
licences Goodwill total
Balanceat1January2009(Costofpurchase/conver-sion,takingintoaccountaccumulatedamortisationandimpairments) 1,355 143 1,498
Additions 834 0 834
Amortisationduringthefinancialyear –920 0 –920
Balance at 31 december 2009 (Cost of purchase/conversion, taking into account accumulated amortisation and impair-ments) 1,269 143 1,412
Balanceat1January2009
Costofpurchase/con-version(grosscarryingamount) 7,861 143 8,004
Accumulatedamortisation –6,506 0 –6,506
Carrying amount 1,355 143 1,498
Balanceat31December2009
Costofpurchase/con-version(grosscarryingamount) 8,460 143 8,603
Accumulatedamortisation –7,191 0 –7,191
Carrying amount 1,269 143 1,412
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
47
GrOup FINANCIAl StAteMeNtS
[17] prOpertY, plANt ANd eQuIpMeNt
31 deCeMBer 2010
in€ ‘000land and buildings
plant and equipment total
Balanceat1January2010(Costofpurchase/conver-sion,takingintoaccountaccumulateddepreciationandimpairments) 33,938 58,901 92,839
Additions 471 6,041 6,512
Disposals –19 –864 –883
Depreciationduringthefinancialyear –2,006 –10,323 –12,329
Effectsofchangesinfor-eigncurrencyexchangerates 1,003 984 1,987
Balance at 31 december 2010 (Cost of purchase/conversion, taking into account accumulated depreciation and impair-ments) 33,387 54,739 88,126
Balanceat1January2010
Costofpurchaseorconversion 60,888 196,577 257,465
Accumulateddepreciationandimpairments –26,950 –137,676 –164,626
Carrying amount 33,938 58,901 92,839
Balanceat31December2010
Costofpurchaseorconversion 62,384 198,595 260,979
Accumulateddepreciationandimpairments –28,997 –143,856 –172,853
Carrying amount 33,387 54,739 88,126
31 deCeMBer 2009
in€ ‘000land and buildings
plant and equipment total
Balanceat1January2009(Costofpurchase/conver-sion,takingintoaccountaccumulateddepreciationandimpairments) 28,782 66,819 95,601
Additions 6,818 4,744 11,562
Disposals –20 –426 –446
Depreciationduringthefinancialyear* –1,544 –12,090 –13,634
Effectsofchangesinfor-eigncurrencyexchangerates –98 –146 –244
Balance at 31 december 2009 (Cost of purchase/conversion, taking into account accumulated depreciation and impair-ments) 33,938 58,901 92,839
Balanceat1January2009
Costofpurchaseorconversion 54,205 198,146 252,351
Accumulateddepreciationandimpairments –25,423 –131,327 –156,750
Carrying amount 28,782 66,819 95,601
Balanceat31December2009
Costofpurchaseorconversion 60,888 196,577 257,465
Accumulateddepreciationandimpairments –26,950 –137,676 –164,626
Carrying amount 33,938 58,901 92,839
*Depreciationoftechnicalequipmentaswellasoperatingandofficeequip-mentforthefinancialyear2009includesimpairmentlossesof€ 1,790thousand.Theimpairmentlosshasbeenallocatedtothesegment“Germany”(pleaserefertoNote[6]).Theimpairmentlossof€ 1,790thousandrecognisedinthe2009financialyearrelatestothereductionofthecarryingamountofspecificitemsofproperty,plantandequipmentwithintheareaof“PVC”totherecoverableamountduetoexpectednegativecashflows.Theimpairmentlosswasrecognisedintheincomestatementasdepreciationofproperty,plantandequipment,andamortisationofintangibleassets.Therecoverableamountwasdeterminedonthebasisofthevalueinuse.
48
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
Theusefullivesoftheassetswereestimatedasfol-
lows:
Buildings 20–40years
Plantandequipment 5–20years
Otheroperatingincomeincludesgainsof€ 109thou-
sand(prev.year:€ 430thousand)fromthedisposalof
property,plantandequipment;otheroperatingexpense
includeslossesof€ 139thousand(prev.year:€ 209
thousand)fromthedisposalofproperty,plantandequip-
ment.
[18] INVeNtOrIeS
in€ ‘000 31/12/10 31/12/09
Rawmaterialsandconsumablesused 14,601 12,904
Finishedgoods 35,914 31,090
Inventories 50,515 43,994
Inthe2010financialyearinventoryimpairmentsfellby
€ 402thousandto€ 2,828thousandcomparedto31
December2009.Thecostofmaterialsincludesex-
pensesrelatingtorawmaterialsandconsumablesin
theamountof€ 153,861thousand(prev.year:
€ 103,082thousand).
[19] trAde reCeIVABleS
Tradereceivablesarenotinterest-bearingandaregener-
allyduewithin30to90days.
in€ ‘000 31/12/10 31/12/09
Carrying amount 41,845 33,320
ofwhichnotimpairedatthereport-ingdateandpastduewithinthefol-lowingtimeranges
•upto30days 4,853 3,512
•between31and60days 2,322 884
•between61and90days 470 408
•between91and120days 595 72
•morethan120days 1,075 916
Asregardsthetradereceivablesthatwereneither
impairednorpastdue,therewerenoindicationsatthe
reportingdatethatcustomerswillfailtomeettheirpay-
mentobligations.
Thechangestovaluation allowances for trade receiv-
ablesareoutlinedbelow:
in€ ‘000 31/12/10 31/12/09
Balanceofspecificallowancesat1January 919 894
Exchangedifferences +11 +7
Allocated +284 +183
Utilised –4 –28
Reversed –59 –137
Balance of specific allowances at 31 december 1,151 919
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
49
GrOup FINANCIAl StAteMeNtS
Thefollowingtableincludesexpensesattributableto
thederecognitionoftradereceivablesaswellasincome
fromamountsreceivedinconnectionwithderecognised
tradereceivables.Expensesattributabletothederecog-
nitionoftradereceivablesarereportedasotheroperat-
ingexpenses,whileincomeattributabletoamounts
receivedinconnectionwithderecognisedtradereceiv-
ablesisaccountedforasotheroperatingincome.
in€ ‘000 2010 2009
Expensesattributabletothederecognitionoftradereceivables 263 82
Incomeattributabletoamountsreceivedinconnectionwithderecognisedtradereceiv-ables 45 35
[20] NON-CurreNt tAX ASSetS AS Well AS OtHer
ASSetS ANd prepAId eXpeNSeS
OtHer ASSetS ANd prepAId eXpeNSeS
in€ ‘000 31/12/10 31/12/09
Otherreceivables 9,401 6,139
Receivablesfromotherlong-terminvesteesandinvestors 62 58
Prepaidexpenses 484 705
Other assets and prepaid expenses 9,947 6,902
Otherreceivablesincludereimbursementrightsin
respectofsalestaxaswellasbonusreceivablesfrom
suppliers.Atthereportingdate,otherassetswere
neitherimpairednorpastdue.
Non-currenttaxassetsincludetheduereimbursement
rightinrespectofcreditsforthereductionofcorporation
taxrelatingtoSEStEGthatisnotduewithinoneyear.
[21] CASH ANd CASH eQuIVAleNtS
in€ ‘000 31/12/10 31/12/09
Bankbalancesandcashonhand 39,316 61,479
Cash and cash equivalents 39,316 61,479
Bankbalancesbearinterestonthebasisoffloating
interestratesapplicabletobalancespayableon
demand.
At31December2010,theGrouphadundrawnborrow-
ingfacilitiesof€ 6,600thousand(prev.year:€ 6,829
thousand).
[22] eQuItY
Changesinequityarepresentedinaseparatestate-
mentofchangesinequity.
Issued capital
Asat31December2010,thesharecapitalofSIMONA
AGwasdividedinto600,000no-par-valueshares.
Thesesharesareclassifiedasordinarybearershares.
Eachno-par-valuesharehasanotionalinterestof
€ 25.83inthecompany’ssharecapital.Theordinary
shareshavebeenissuedandfullypaidin.
in€ ‘000 31/12/10 31/12/09
Sharecapital 15,500 15,500
Issuedcapital 15,500 15,500
OtHer reSerVeS
in€ ‘000 31/12/10 31/12/09
Currencytranslationeffects –260 –1,225
Otherreserves –260 –1,225
50
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
Otherreservesincludecurrencytranslationeffectsattrib-
utabletoexchangedifferencesoccurringupontranslation
ofthefinancialstatementsofforeignsubsidiaries.
[23] FINANCIAl lIABIlItIeS
in€ ‘000 due date 31/12/10 31/12/09
Current liabilities
Pro-rataloanofUSD3million(principalrepaymentsdueby31/12/11) 09/2011 249 231
LoanofUSD5million(nominalamount) 09/2010 0 3,471
Pro-rataloanofUSD210thousand(principalrepaymentsdueby31/12/11)
01/2011-12/2011 24 22
LiabilitiesfromdeferredinterestattributabletoUSDloans(currentliabilities) 03/2011 35 85
LiabilitiesfromdeferredinterestattributabletoGBPloans(currentliabilities) 04/2010 0 15
Bankoverdrafts ondemand 5 0
313 3,824
Non-current liabilities
LoanofUSD5million(nominalamount) 12/2013 3,742 3,471
Pro-rataloanofUSD3million(principalrepaymentsdueafter31/12/11)
09/2012-09/2015 998 1,157
LoanofGBP2million(nominalamount) 0 2,252
Pro-rataloanofUSD210thousand(principalrepaymentsdueafter31/12/11)
01/2012-10/2016 108 120
4,848 7,000
Fixedorfloatinginterestratesofbetween4.9percent
and6.8percenthavebeenagreedinrespectofthe
interest-bearingloans.Interestiscomputedeitheron
thebasisofthenominalvalueoftheloanortheremain-
ingamountoftheloan.
TheloanofGBP2million(nominalamount)wasfully
extinguishedduringthefinancialyear2010.
[24] peNSIONS
ThemajorityofemployeeswithintheSIMONAGroupare
entitledtopost-employmentbenefitsattributabletopen-
sionplanagreements.Theaforementionedplansare
structuredasfinalsalarypensionplansinthecaseof
bothpersonnelemployedonthebasisofcollective
wageagreementsandmanagerialstaff,includingmem-
bersandformermembersoftheManagementBoard.
WiththeexceptionofpaymentstoSIMONASozialwerk
GmbH(cf.Note[25]),nocontributionsaremadeto
funds.
Thefollowingtableincludesabreakdownofthe
expenseitemsrecognisedintheGroupincomestate-
mentinconnectionwithretirementbenefitsaswellas
theamountscarriedintheGroupstatementoffinancial
positionfortherespectiveplans.
Expensesincludedinstaffcostsforretirementbenefits:
in€ ‘000 2010 2009
Currentservicecost 934 947
Interestcost 1,733 1,672
Actuarialgain –49 –71
Cost of retirement benefits 2,618 2,548
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
51
GrOup FINANCIAl StAteMeNtS
Thechangesinthepresentvalueofdefinedbenefitobli-
gationsareasfollows:
in€ ‘000 31/12/10 31/12/09
Obligationatbeginningofreportingperiod 38,335 37,505
Currentservicecost 934 947
Interestcost 1,733 1,672
Actuarialgain –49 –71
Benefitspaid –1,383 –1,718
Obligationsatendofreportingperiod 39,570 38,335
–ofwhichnon-currentliability 38,322 36,698
–ofwhichcurrentliability 1,248 1,637
TheGroupanticipatesexpensesof€ 2,388thousand
inconnectionwithdefinedbenefitpensionplansforthe
2011financialyear.
Actuarialgainsandlossesareoffsetinprofitorlossto
theextentthattheyexceedthe10percentcorridor.As
fromthesubsequentperiod,theportionofactuarial
gainsandlossesexceedingthiscorridorisoffsetover
thefutureaverageremainingworkinglifeoftheem-
ployees.
lIABIlItIeS AttrIButABle tO deFINed BeNeFIt OBlIGAtIONS
in€ ‘000 31/12/10 31/12/09
Presentvalueofdefinedbenefitobligations 32,946 34,022
Unrecognisedactuarialgainsattributabletotheobligations –6,625 –4,313
Liabilitiesattributabletodefinedbenefitobligations 39,570 38,335
Thepresentvaluesofthedefinedbenefitobligations
ofthecurrentandthepreviousfourannualreporting
periodsareasfollows:
in€ ‘000 2010 2009 2008 2007 2006
Presentvalueofdefinedbenefitobligations 32,946 34,022 32,826 33,598 37,123
Theassumptionsmadeforthepurposeofdetermining
thepensionobligationsareasfollows:
in€ ‘000 31/12/10 31/12/09
Discountrate 5.15% 5.25%
Salaryincrease 2.5% 2.0%
Pensionadjustments 1.5% 1.5%
Mortality(mortalitytablespublishedbyK.Heubeck) 2005G 2005G
[25] COMpANY WelFAre INStItutIONS
SIMONASozialwerkGmbHisstructuredasalong-term
employeebenefitfundwithinthemeaningofIAS19.7.
UndertheArticlesofAssociation,theentityoperates
solelyforthepurposeofensuringthatformeremployees
ofSIMONAAGaswellastheirdependantsreceive
retirementbenefits.Thebeneficiariesofpensionsare
entitledtoalltheassetsbelongingtotheentityaswell
asallincomederivedfromtheseassetswhiletheentity
isinexistenceaswellasinthecaseofliquidationor
insolvencyoftheentity.SIMONAAGhasnoaccess
rightstoassetsheldbySIMONASozialwerkGmbH.In
theeventofliquidationoftheentity,theentity’sassets
aretobeallocatedtotherecipientsofbenefitsorare
tobesecuredforthepurposeofprovidingfuturebene-
fitsforsaidrecipients.Thus,evenintheeventthat
SIMONAAGbecomesinsolvent,thecreditorsidentified
inconnectionwithinsolvencyhavenorightsinrespect
oftheassetsofSIMONASozialwerkGmbH.
52
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
TheassetsofSIMONAVermögensverwaltungsgesell-
schaftderBelegschaftmbHmaybeutilisedsolelyfor
benefit-relatedpurposesrelatingtoSIMONASozialwerk
GmbH.
in€ ‘000 31/12/10 31/12/09
Presentvalueofdefinedbenefitplansatthebeginningoftheyear 28,500 26,603
Currentservicecost 1,158 1,188
Interestcost 1,477 1,413
Benefitspaid –723 –704
present value of defined benefit plans at the end of the year 30,412 28,500
Marketvalueoffundassetsatthebeginningoftheyear 38,597 39,074
Disposalsoffinancialassets –723 –704
Returnonfundassets 1,334 227
Marketvalueoffundassetsattheendoftheyear 39,208 38,597
Surplusplanassets 8,796 10,097
Asregardsthebasicassumptionsfordeterminingthe
pensionobligations,pleaserefertothedetailsinNote
[24].
Thesurplusrelatingtoplanassetsisnotaccountedfor
intheconsolidatedfinancialstatementsofSIMONAAG,
asSIMONAAGhasnocontrolovertheseassets.In
accordancewiththeprovisionssetoutinIAS19.7,the
planassetsareavailabletobeusedonlytopayorfund
employeebenefits.
Thefairvalueoftheplanassetsincludessharesin
SIMONAAGwithafairvalueof€ 18,900thousand
(prev.year:€ 18,900thousand)asat31December
2010.
ASSetS/ (lIABIlItIeS) AttrIButABle tO deFINed BeNeFIt OBlIGAtIONS
in€ ‘000 31/12/10 31/12/09
Definedbenefitobligations –30,412 –28,500
Fairvalueofplanassets 39,208 38,597
Overfunded 8,796 10,097
Unrecognisedactuariallossesattributabletotheobligations 1,620 42
Assets attributable to defined benefit obligations 10,416 10,139
Theamountsofthedefinedbenefitobligationsandthe
planassetsrelatingtothecurrentandthefourprevious
annualreportingperiodsareasfollows:
in€ ‘000 2010 2009 2008 2007 2006
Presentvalueofdefinedbenefitobligations –30,412 –28,500 –27,327 –27,381 –30,184
Fairvalueofplanassets 39,208 38,597 39,074 40,276 37,400
8,796 10,097 11,747 12,895 7,216
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
53
GrOup FINANCIAl StAteMeNtS
[26] OtHer prOVISIONS
Personnel-relatedprovisionsencompassobligationsin
connectionwithagreementsregardingpart-timeemploy-
mentofstaffapproachingretirement,provisionsrelating
toanniversariesaswellasobligationsfromflexitime
surplusesaccumulatedbyemployees.Withtheexcep-
tionofprovisionsforflexitimesurpluses,personnel-
relatedprovisionsaremeasuredonthebasisofactuar-
ialdata.
Atthereportingdate,obligationsinconnectionwith
agreementsregardingpart-timeemploymentofstaff
approachingretirementamountedto€ 3,748thousand
(prev.year:€ 4,161thousand).Thisitemiscomposed
ofobligationsforperformance-relatedarrears,addi-
tionalcompensationandseverancepayments.
Provisionsforguaranteesarerecognisedinconnection
withwarrantiesforproductssoldinprecedingyears.
Guarantee-relatedprovisionsatSIMONAAGarerecog-
nisedforongoing,regularlyoccurringwarrantycasesas
wellasforindividualcasesthatoccuronanirregular
basisandareassociatedwiththeriskofabove-average
claims.
Asregardsregularlyoccurringwarrantycases,aprovi-
sioniscalculatedonthebasisofexperienceoverwhat
isadjudgedtobeaprobableaverageclaimperiodof5
years.Forthepurposeofmeasuringtheprovision,the
expensesactuallyincurredinconnectionwithcustomer
credits/refundsfromwarrantyobligationsaswellasthe
thusresultingdirectcostsofprocessingacomplaintare
analysedindetail.Withinthiscontext,theweightedaver-
agewarrantyexpenseofthepast5yearsisusedforcal-
culationpurposes.
Theportionofwarrantyprovisionscalculatedinrespect
ofindividualcasesoccurringonanirregularbasisis
recognisedonlywhentheutilisationoftheprovisionis
consideredlikely,apaymentrelatingtheretoisdeemed
probableandareliableestimatecanbemade.
Theportionofthewarrantyprovisionwhoseutilisationis
notduewithinoneyearafterthereportingdateisdis-
counted.
In2009,otherprovisionsincludedprovisionsof€ 3,294
thousandinconnectionwithrestructuringmeasuresat
theKirchhundem-Würdinghausenplant,whichwasclosed
downon30September2010.In2010,anamountof
€ 3,060thousandrelatingtotheprovisionwasutilised.
Additionally,anallocationof€ 156thousandwas
made;itisincludedinotheroperatingexpensesandis
attributablesolelytothesegment“Germany”.The
remainingprovisionamountsto€ 390thousand.
[27] StAteMeNt OF CASH FlOWS
Thestatementofcashflowspresentschangestocash
andcashequivalentsduringthefinancialyearbyoutlin-
ingcaseinflowsandoutflows.InaccordancewithIAS7,
in€ ‘000
per-sonnel-related obliga-
tions
Guaran-tees/
warran-ties
Other items total
Balance at 1 January 2010 4,944 3,153 3,590 11,687
Allocated 1,872 877 158 2,907
Used 1,556 691 3,329 5,576
Reversed 400 24 23 447
Balance at 31 december 2010 4,860 3,315 396 8,571
Short-termprovisions 1,424 721 390 2,535
Long-termprovisions 3,436 2,594 6 6,036
Balance at 31 december 2010 4,860 3,315 396 8,571
Short-termprovisions 1,455 715 3,538 5,708
Long-termprovisions 3,489 2,438 52 5,979
Balance at 31 december 2009 4,944 3,153 3,590 11,687
54
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
thestatementofcashflowsincludesinformationrelat-
ingtocashflowsfromoperatingactivities,investing
activitiesandfinancingactivities.
Asat31December,totalcashandcashequivalents,
togetherwithcurrentfinancialliabilities,wereasfollows:
in€ ‘000 31/12/10 31/12/09
Cashandcashequivalents 39,316 61,479
Currentfinancialliabilities(excludingliabilitiesattributabletoloans)
–40 –100
39,276 61,379
Theeffectsofchangestocashandcashequivalents
attributabletoexchangerateswere€ 734thousand
(prev.year:minus€ 190thousand)atGrouplevel.
Cashflowsfrominvestingandfinancingactivitiesare
accountedfordirectly,i.e.onapaymentsbasis.Cash
flowsfromoperatingactivitiesaredeterminedindirectly
onthebasisofearningsbeforetaxes,i.e.viachanges
totheGroupstatementoffinancialposition,having
accountedfortheeffectsofcurrencytranslation.
[28] relAted-pArtY dISClOSureS
EntitiesandpersonswithcontrolovertheSIMONA
Group,aswellasassociatedentitiesandpersons,
includingclosemembersofthefamilyandintermediate
entities,withsignificantinfluenceoverthefinancialand
operatingpoliciesoftheSIMONAGrouparetobedis-
closedinaccordancewithIAS24.
Management Board
�WolfgangMoyses,ChairmanoftheManagement
Board,Kirn
� DirkMöller,DeputyChairmanoftheManagement
Board(since1May2010),Kirn
� DetlefBecker,Saarbrücken
� JochenFeldmann,Kirn(until10August2010)
Supervisory Board
� Hans-WernerMarx,Kirn,Merchant
ChairmanoftheSupervisoryBoard
� Dr.RolfGößler,BadDürkheim,Diplom-Kaufmann
DeputyChairmanoftheSupervisoryBoard
MemberoftheSupervisoryBoardofJ.Engelsmann
AG,Ludwigshafen
� RolandFrobel,Isernhagen,ManagingDirectorof
DirkRossmannGmbH,Burgwedel
MemberoftheSupervisoryBoardofDeutsche
BeteiligungsAG,Frankfurt(since23March2011)
� Dr.RolandReber,Stuttgart,
ManagingDirectorofEnsingerGmbH,Nufringen
� BerndMeurer,Hennweiler,EmployeeRepresentative
� Karl-ErnstSchaab,Bergen,EmployeeRepresentative
(until31August2010)
DirkMöllerisashareholder(11.64percentofsharesin
SIMONAAG)andamemberoftheManagementBoardof
SIMONAAG.Additionally,Mr.Möllerperformsexecutiveor
controllingdutieswithintheindividualcompaniesofthe
SIMONAGroup:
� SIMONAPlast-Techniks.r.o.,Litvinov,(1),
� SIMONAAMERICAInc.,Hazleton,(2),
� SIMONAFAREASTLtd.,HongKong,(2),
� SIMONAENGINEERINGPLASTICSTRADINGCo.Ltd.,
Shanghai,(2),
� SIMONAASIALtd.,HongKong,(2),
� SIMONAENGINEERINGPLASTICSCo.Ltd.,
Jiangmen,(2)
Thedutiesasanexecutiveorcontrollingbodyareasfol-
lows:(1)ManagingDirector/GeneralManager,(2)Mem-
beroftheBoardofDirectors.
Dr.RolandReber,memberoftheSupervisoryBoardof
SIMONAAG,isalsotheManagingDirectorofEnsinger
GmbH,Nufringen.Thetwoentitiesmaintainbusiness
relationswitheachotheronarm’slengthterms.Inthe
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
55
GrOup FINANCIAl StAteMeNtS
financialyearunderreview,productsalesamountingto
€ 189thousandweretransactedbetweenSIMONAAGand
EnsingerGmbH,Nufringen.
Beyondthis,companiesoftheSIMONAGroupenteredinto
nosignificanttransactionswithmembersoftheManage-
mentBoardortheSupervisoryBoardofSIMONAAGand/
orentitiestowhichthesepersonshavebeenappointedin
anexecutiveorcontrollingcapacity.Thisalsoappliesto
closefamilymembersoftheaforementionedpersons.
Aspartofitsordinaryoperatingactivities,SIMONAAGpro-
videsvariousservicesforthesubsidiariesincludedinthe
consolidatedfinancialstatements.Conversely,therespect-
iveGroupcompaniesrenderserviceswithintheSIMONA
Groupinthecontextoftheirbusinesspurpose.These
businesstransactionsrelatingtothesupplyofgoodsand
therenderingofservicesaremadeatmarketprices.
On10June2010,Dr.WolfgangundAnitaBürkleStiftung,
Kirn,notifiedthecompanyinaccordancewithSection
21(1)oftheGermanSecuritiesTradingAct(Wertpapierhan-
delsgesetz–WpHG)thatitsvotingpowerinrespectof
SIMONAAGhadexceededthethresholdof15percent,20
percent,25percentand30percentofthevotingrights
on13May2010andthatatthisdateitsinterestwas
30.79percent(correspondingto184,739votingrights).
On10June2010,Dr.WolfgangundAnitaBürkleStiftung
filedanapplicationwiththeFederalFinancialSupervisory
Authority(BundesanstaltfürFinanzdienstleistungsaufsicht
–BaFin)forexemptionpursuanttoSection37(1)and(2)
oftheSecuritiesAcquisitionandTakeoverAct(Wert-
papiererwerb-undÜbernahmegesetz–WpÜG)inconjunc-
tionwithSection9sentence1no.1oftheWpÜGOffer
Ordinance(WpÜG-Angebotsverordnung).Onthebasisofan
officialNoticeissuedbytheFederalFinancialSupervisory
Authorityon22July2010,Dr.WolfgangundAnitaBürkle
StiftungwasexemptedfromitsdutiesunderSection35(2)
sentence1WpÜGtosubmitanofferdocumenttotheFed-
eralFinancialSupervisoryAuthorityanditsdutiesunder
Section35(2)sentence2inconjunctionwithSection
14(2)sentence1WpÜGtopublishamandatoryoffer.This
exemptionwasgrantedunderSection37(1)and(2)WpÜG
inconjunctionwithSection9sentence1no.1WpÜG
OfferOrdinanceinrespectofthecontrolgainedover
SIMONAAGfollowingthetestamentarysuccessionof13
May2010.Withtheexceptionofthedividendpaymentof
€ 6.00pershare(totalof€ 1,109thousand),noother
businessrelationsexistedwithDr.WolfgangundAnita
BürkleStiftung,Kirn,inthefinancialyearunderreview.
Compensation of members of the Management Board
and Supervisory Board
TotalManagementBoardcompensationamountedto
€ 1,553thousandintheperiodunderreview(prev.year:
€ 1,296thousand).Itcomprises€ 1,034thousand(prev.
year:€ 988thousand)infixed-levelcompensationand
€ 519thousand(prev.year:€ 308thousand)inbonus
payments.Thecompanydoesnotgrantloanstomembers
oftheManagementBoard.
Post-employmentbenefitsof€ 7,756thousand(prev.
year:€ 8,507thousand)havebeenprovisionedforactive
membersoftheManagementBoard,formermembersof
theManagementBoardandtheirsurvivingdependants.
CompensationofformerManagementBoardmembers
andtheirsurvivingdependantsamountedto€ 592thou-
sand(prev.year:€ 853thousand).
SupervisoryBoardcompensationatGroupleveltotalled
€ 121thousandinthe2010financialyear(prev.year:
€ 121thousand).SupervisoryBoardcompensation
encompassesnovariablecomponents.
56
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
[29] FINANCIAl rISK MANAGeMeNt OBJeCtIVeS
ANd pOlICIeS
principles of risk management
Someoftheassets,liabilitiesandplannedtransactionsof
SIMONAAGareexposedtorisksassociatedwithchangesto
foreignexchangeratesandinterestrates.
Theprincipalaimoffinancialriskmanagementistomitigate
risksattributabletoongoingoperatingandfinance-related
transactions.
Dependingontherisk,theaimistorestrictthelevelof
associatedriskbymeansofderivativefinancialinstruments
andnon-derivativehedginginstruments.Allhedginginstru-
mentsareusedsolelyforthepurposeofhedgingcashflows.
Interest-rate risk
Thefinancialinstrumentsexposedtointerest-raterisk
includeshort-termbankoverdraftsaswellasafloating-rate
USdollarloan.Inthe2010financialyear,theinterest-rate
riskassociatedwiththeseinstrumentswasmitigateden-
tirelybymeansofinterestratederivatives(interestrate
swaps),aswasthecaseinthepreviousfinancialyear.In
accordancewithIFRS7,interest-raterisksareaddressedin
theformofsensitivityanalyses.Thesepresenttheeffects
ofchangesinmarketinterestratesoninterestincome,inter-
estexpenseanditemsinthestatementoffinancialposi-
tion.Astheinterestratederivatives(interestrateswaps)
arenotpartofahedgingrelationshipasdescribedinIAS
39,changesarerecogniseddirectlyinfinanceincomeor
cost.
HadthemarketinterestrateoftheUSdollarbeen100
basispointshigherorlowerat31December2010,thenet
financeresultwouldhavebeen€ 32thousandhigherand
€ 34thousandlowerrespectively.
HadthemarketinterestrateoftheUSdollarbeen100
basispointshigherorlowerat31December2009,thenet
financeresultwouldhavebeen€ 60thousandhigherand
€ 62thousandlowerrespectively.
Currency risks
TheSIMONAGroupisexposedtorisksassociatedwith
exchangeratefluctuationswithintheareaofinvestingand
financingactivities.Risksattributabletoforeigncurrencies
arehedgedtotheextentthattheyaffectthecashflowsof
theGroup.Theriskofexchangeratefluctuationsassoci-
atedsolelywiththetranslationofassetsandliabilitiesinto
thereportingcurrencyoftheconsolidatedfinancialstate-
ments(euros)remainsunhedged.
Exchangeraterisksattributabletothefinanceareaexist
withregardtotheoriginationofaUSdollarloaninDecem-
ber2008forthebenefitofanAsiansubsidiary,whichhas
accountedforanintercompanyreceivableinthesame
amount.Therefore,theaggregateunhedgedcurrencyrisk
remainsbalanced.
Atanoperatinglevel,therespectiveentitieswithinthe
Groupconductthemajorityoftheirbusinesstransactions
intheirfunctionalcurrency.Theparentcompanyisrespon-
siblealmostsolelyformanagingtransactionsinforeign
currenciesandhedgestheseactivitieswithinspecified
parametersaspartoftreasurymanagement.Asatthe
reportingdate,noforeignexchangeforwardcontractsand
currencyoptionswereusedforthepurposeofhedging
currencyrisksassociatedwithoperatingactivities.
IFRS7requiresentitiestopresentriskonthebasisof
sensitivityanalyses.Theseanalysesshowhowprofitor
lossandequitywouldhavebeenaffectedbychangesin
therelevantriskvariablethatwerereasonablypossibleat
theendofthereportingdate.Exchangeratemovements
mayoccurinthecaseofprimaryfinancialinstrumentsthat
arebeyondthehedgedparametersorthatarehedgedby
meansoffinancialderivativesintheformofforwardforeign
exchangetransactionsorcurrencyoptions.
If,asat31December2010,theeurohadappreciated
(depreciated)by10percentagainstallothercurrencies,
earningsbeforetaxeswouldhavebeen€ 2,311thousand
lower(€ 2,825thousandhigher).
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
57
GrOup FINANCIAl StAteMeNtS
Thehypotheticaleffectonprofitofminus€ 2,311thou-
sand(plus€ 2,825thousand)isattributabletothefol-
lowingsensitivitytoexchangerates:
€ ‘000 € ‘000
EUR/USD –696 (851)
EUR/CHF –1 (1)
EUR/GBP –526 (643)
EUR/CZK –389 (475)
EUR/PLN –197 (241)
EUR/HKD –502 (614)
–2,311 (2,825)
If,asat31December2009,theeurohadappreciated
(depreciated)by10percentagainstallothercurren-
cies,earningsbeforetaxeswouldhavebeen€ 990
thousandlower(€ 1,569thousandhigher).
Thehypotheticaleffectonprofitofminus€ 990thou-
sand(plus€ 1,569thousand)isattributabletothefol-
lowingsensitivitytoexchangerates:
€ ‘000 € ‘000
EUR/USD –236 (439)
EUR/CHF –117 (143)
EUR/GBP 143 (34)
EUR/CZK –628 (768)
EUR/PLN –103 (126)
EUR/HKD –49 (59)
–990 (1,569)
Credit risk
SIMONAAGisexposedtocreditriskaspartofitsoper-
atingactivities.Financialassetsoutstanding–principally
tradereceivables–aremonitoredonadecentralised
basis,i.e.byeachlegallyseparatecompanywithinthe
Group.Dependingonthecreditratingofthecustomer,
receivablesaresubjecttotheriskofdefault,whichis
addressedwiththehelpoftradecreditinsurance.
Receivablesexposedtoprobablecreditriskareidenti-
fiedandmonitoredonaregularbasis;creditriskrelating
tosuchitemsisaccountedforbymeansofspecific
allowancesonanitem-by-itembasis.Themaximum
potentialcreditriskislimitedtothenetcarryingamount
(lessvalue-addedtax)ofthefinancialassets.
liquidity risk
Inordertoensuresolvencyandmaintainfinancialflexi-
bility,theGroupcontinuouslymonitorsliquiditylevels
associatedwithoperatingactivitiesaswellasantici-
patedpaymentsattributabletocommitmentsarising
fromcapitalinvestmentordersoftherespectivecompa-
nies.Withinthiscontext,liquidityisidentifiedand
assessedwithaseparatetool.
Alongsidecashandcashequivalentsamountingto
€ 39.3million,theSIMONAGrouphasundrawnborrow-
ingfacilitiesof€ 6.6million.TheGroup’sobjectiveisto
maintainawell-judgedbalancebetweenongoingcover-
ageofcashrequirementsandsustainedflexibility
throughtheutilisationofbankoverdraftsandloans.
Asat31December2010,thematuritystructuresofpay-
mentobligationsrelatingtothefinancialliabilitiesofthe
Groupwereasfollows:
in€ ‘000up to 1
year2–5
years
More than 5 years total
Financialpayables 547 5,382 20 5,949
Tradepayables 11,202 0 0 11,202
Financial liabilities 11,749 5,382 20 17,151
Asat31December2009,thematuritystructuresof
paymentobligationsrelatingtothefinancialliabilitiesof
theGroupwereasfollows:
in€ ‘000up to 1
year2–5
years
More than 5 years total
Financialpayables 4,271 7,480 288 12,039
Tradepayables 6,904 0 0 6,904
Financial liabilities 11,175 7,480 288 18,943
58
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
Asinthepreviousfinancialyear,at31December2010,
therewerenoforeignexchangeforwardcontractsthat
wouldresultinamountsduetotheentityorpayment
obligations.
Themarketvaluationofinterestrateswapsresultedin
anetpaymentobligationof€ 155thousand(prev.year:
€ 295thousand).
Nocurrencyoptionsexistedasat31December2010.
Basedonmarketdata,thevalueofthecurrencyoptions
isconsideredtobepositive;inthepreviousyear,this
resultedinanetamountdueof€ 160thousand.
Capital management
Theprimaryobjectiveofcapitalmanagementwithinthe
Groupistoensureahighcreditratingandmaintaina
healthyequityratio.
TheGroupmanagesitscapitalstructureandmakes
adjustmentsinresponsetochangingeconomicconditions
wheresuchactionisdeemedappropriate.
[30] FINANCIAl INStruMeNtS
Thefollowingtablepresentsthecarryingamountsandfair
valuesofallfinancialinstrumentsrecognisedbythe
Group:
Carrying amount Fair value
in€ ‘000 31/12/10 31/12/09 31/12/10 31/12/09
Non-current financial assets
Financialassets HtM 23 23 23 23
Current financial assets
Otherfinancialassets AfS 10,000 0 10,000 0
Cashandshort-termdeposits LaR 39,316 61,479 39,316 61,479
Currencyoptions FAHfT 0 160 0 160
Tradereceivables LaR 41,845 33,320 41,845 33,320
Financial liabilities
Bankoverdrafts FLAC –5 0 –5 0
Othercurrentfinancialliabilities FLAC –35 –100 –35 –100
Loans FLAC –5,121 –10,724 –5,121 –10,724
Interest-rateswap FLHfT –155 –295 –155 –295
Tradepayables FLAC –11,202 –6,904 –11,202 –6,904
total by measurement category
HtM 23 23 23 23
AfS 10,000 0 10,000 0
LaR 81,161 94,799 81,161 94,799
FAHfT 0 160 0 160
FLAC –16,363 –17,728 –16,363 –17,728
FLHfT –155 –295 –155 –295
(HtM=HeldtoMaturity,AfS=AvailableforSale,LaR=LoansandReceivables,FAHfT=FinancialAssetsHeldforTrading,FLAC=FinancialLiabilitiesMeasuredatAmortisedCost,FLHfT=FinancialLiabilitiesHeldforTrading)
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
59
Thefairvalueofderivativefinancialinstrumentsand
loanswasdeterminedbydiscountingtheexpected
futurecashflowsonthebasisoftheprevailingmarket
rateofinterestaswellasbyapplyingoptionpricing
models.Withinthiscontext,thecalculationtakesinto
accountthattheloansaresubjecttofloatingorfixed
interestratesonthebasisofstandardmarketterms
andconditions.
Theavailable-for-salefinancialassets(AfS)includenon-
exchange-listeddebtinstrumentswhosefairvaluewas
reliablymeasurableandwasthusmeasuredatafair
valueof€ 10,000thousandasat31December2010.
Thefollowingtablepresentsthenetgainsandlosses
fromsubsequentmeasurementoffinancialinstruments
recognisedinthestatementoffinancialposition,listed
accordingtotherespectivemeasurementcategories:
2010: Net GAINS ANd lOSSeS BY MeASureMeNt CAteGOrY
in€ ‘000 InterestFair
Value
Currency transla-
tion
Impair-ment
loss / disposal total
LaR 335 0 805 –449 691
HfT 0 3 263 0 266
FLAC –501 0 0 0 –501
total –166 3 1,068 –449 456
2009: Net GAINS ANd lOSSeS BY MeASureMeNt CAteGOrY
in€ ‘000 InterestFair
Value
Currency transla-
tion
Impair-ment
loss / disposal total
LaR 506 0 263 –73 696
HfT 0 –288 –124 0 –412
FLAC –559 0 0 0 –559
total –53 –288 139 –73 –276
HedGING trANSACtIONS
Cash flow hedging instruments
Asat31December2010and31December2009,the
Groupheldnoforwardcurrencycontracts.
Atthereportingdate,theGrouphadaninterest-rate
swapusedforthepurposeofhedgingriskarisingfrom
changesinthecashflowofthefloating-rateUSdollar
loan.Thetermisbasedontheunderlyingloan.
Asat31December2010,theGroupheldnocurrency
options.
ThetermsandconditionsofcontractsheldbytheGroup
asat31December2009,areoutlinedinthefollowing
table:
FOreIGN CurreNCY OptIONS FOr FAIr VAlue HedGING
in ‘000 due date exchange rate
US-Dollar 3,500 03/2010 1.4000
PoundSterling 3,00001/2010–
07/2010 0.9000
TheGroupusesthefollowinghierarchyforthepurpose
ofdetermininganddisclosingthefairvaluesoffinancial
instrumentspermeasurementmethod:
�Level1:quotedprices(unadjusted)inactive
marketsforidenticalassetsorliabilities
�Level2:methodsforwhichallinputswithasigni-
ficanteffectontherecognisedfairvalueareobserv-
ableeitherdirectlyorindirectly;and
�Level3:methodsthatuseinputswhichhaveasig-
nificanteffectontherecognisedfairvalueandare
notbasedonobservablemarketdata
GrOup FINANCIAl StAteMeNtS
60
Assetsmeasuredatfairvalue:
in€ ‘000
as at 31 december
2010 level 1 level 2 level 3
Financialassetsatfairvaluethroughprofitorloss
Securities 10,000 0 10,000 0
Thesecuritiesdisclosedaboveareacertificateofdebt.
Thecertificateofdebtisdueon10May2013atthe
latest,butcanbecancelledbythelenderatanytime.
Thecertificateofdebtbearsinterestbasedonthesix-
monthEURIBORrateplusafloatingpremium.Thefloat-
ingpremiumamountedto25basispointsandrises
eachhalf-yearuntilithasreached125basispointatthe
endofmaturity.
in€ ‘000
as at 31 december
2009 level 1 level 2 level 3
Financialassetsatfairvaluethroughprofitorloss
Foreigncurrencyoptions 160 0 160 0
Liabilitiesmeasuredatfairvalue:
in€ ‘000
as at 31 december
2010 level 1 level 2 level 3
Financialliabilitiesatfairvaluethroughprofitorloss
Interest-rateswap 155 0 155 0
in€ ‘000
as at 31 december
2009 level 1 level 2 level 3
Financialliabilitiesatfairvaluethroughprofitorloss
Interest-rateswap 295 0 295 0
[31] OtHer INFOrMAtION
Subsidiaries
AlongsideSIMONAAGastheparent,theconsolidated
financialstatementsincludethefollowingentities.
Unlessotherwisespecified,theownershipinterestin
thepreviousyearwasidenticaltothatofthefinancial
yearunderreview.
Ownership interest in %
SIMONABeteiligungs-GmbH,Kirn,Germany 100.0
SIMONAUKLtd.,Stafford,UnitedKingdom 100.0
SIMONAS.A.,Domont,France 96.6
SIMONAS.r.l.,Vimodrone,Italy 98.0
SIMONAIBERICASEMIELABORADOSS.L.,Barcelona,Spain 100.0
SIMONAPOLSKASp.zo.o.,Wrocław,Poland 100.0
SIMONA-PLASTICSCZs.r.o.,Prague,CzechRepublic 100.0
SIMONAFAREASTLtd.,HongKong,China 100.0
SIMONAAMERICAInc.,Hazleton,USA 100.0
SIMONAENGINEERINGPLASTICSTRADINGCo.Ltd.,Shanghai,China 100.0
SIMONAASIALtd.,HongKong,China 100.0
SIMONAENGINEERINGPLASTICSCo.Ltd.,Jiangmen,China 100.0
64NORTHCONAHANDRIVEHOLDINGLLC,Hazleton,USA 100.0
DEHOPLASTPOLSKA,Sp.zo.o.,Kwidzyn,Poland 51.0
SIMONAPlast-Techniks.r.o.,Litvinov,CzechRepublic 100.0
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
61
Financial assets
SIMONAAGholdsatleastaone-fifthinterestinthefol-
lowingentities,withoutbeingabletocontrolorsignifi-
cantlyinfluencethefinancialandoperatingpoliciesofthe
entitiesinquestion.Unlessotherwisespecified,theown-
ershipinterestinthepreviousyearwasidenticaltothat
ofthefinancialyearunderreview.
CompanyOwnership
Interestequity
31/12/09profit/loss
2009
% € ‘000 € ‘000
SIMONASozialwerkGmbH,Kirn,Germany 50.0 13,910 –267
SIMONAVermögensver-waltungsgesellschaftderBelegschaftmbH,Kirn,Germany 50.0 8,304 619
Owingtoitsclassificationasapensionfund,SIMONA
SozialwerkGmbHisnotincludedintheconsolidated
financialstatements,asspecifiedinIAS19.7.SIMONA
VermögensverwaltungsgesellschaftderBelegschaftmbH
isnotincludedintheconsolidatedfinancialstatements
becausetheassetsofthisentitymaybeutilisedsolely
forfundingpurposesinrespectofSIMONASozialwerk
GmbHandthusremainoutsideSIMONAAG’sscopeof
economiccontrol.
TheinterestsinSIMONASozialwerkGmbHandSIMONA
VermögensverwaltungsgesellschaftderBelegschaft
mbHareaccountedforatbookvalue,asthefairvalue
isnotreliablydeterminable.ThebookvaluesofSIMONA
SozialwerkGmbHandSIMONAVermögensverwaltungs-
gesellschaftderBelegschaftmbHare€ 10thousand
and€ 13thousandrespectively.
Average number of staff employed during the financial
year:
2010Group
2009Group
Industrialstaff 710 744
Clericalstaff 457 430
1,167 1,174
School-leavertrainees(apprentices) 51 56
Totalnumberofemployees 1,218 1,230
Contingent liabilities and other financial commitments
Noprovisionswererecognisedforthefollowingcontin-
gentliabilities,carriedattheirnominalamounts,
becausetheprobabilityoftheoccurrenceofriskiscon-
sideredtobelow.
OtHer FINANCIAl COMMItMeNtS
in€ ‘000 31/12/10 31/12/09
Commitmentsfromoperatingrentalandleaseagreements
Duewithin:
1year 1,302 1,278
2–5years 1,578 1,730
after5years 0 53
2,880 3,061
purchase commitments arising from investment projects
in€ ‘000 31/12/10 31/12/09
1,916 711
GrOup FINANCIAl StAteMeNtS
62
declaration of Conformity regarding the German Corpo-
rate Governance Code
InaccordancewithSection161AktG,theCompanyfiled
aDeclarationofConformityfor2010on10March
2011.Ithasbeenmadepermanentlyavailabletoshare-
holdersonitscorporatewebsiteatwww.simona.de.
directors’ holdings – Shares held by members of
the Management Board and Supervisory Board of
SIMONA AG
Asat25June2010(dateoftheAnnualGeneralMeeting
ofShareholders)themembersoftheManagement
Boardreportedatotalholdingof70,776shares;this
correspondstoapprox.11.80percentoftheshare
capitalofSIMONAAG.
ThemembersoftheSupervisoryBoardreportedhold-
ingsof1,700shares,whichcorrespondsto0.28per
centofsharecapital.
InaccordancewithSection15aoftheSecuritiesTrading
Act(Wertpapierhandelsgesetz–WpHG),themembersof
theSupervisoryBoardandtheManagementBoard,as
wellasrelatedparties,arelegallyobligedtodiscloseall
significantacquisitionsordisposalsofsharesin
SIMONAAG.Intheperiodunderreview,thecompany
wasnotifiedofnosuchtransaction.
Audit fees
Professionalfeesaccountedforasexpenseinconnec-
tionwiththeyear-endfinancialauditamountedto€ 247
thousand,whilefeesattributabletotaxconsulting
servicesamountedto€ 22thousandandotherservices
totalled€ 56thousand.
events after the reporting period
Noeventsoccurredafterthereportingdatethatwould
necessitateachangetomeasurementsorrecognised
amounts.
SIMONAAG
Kirn,31March2011
ManagementBoard
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
63
GroupStatementofCashFlowsofSimonaAG
in€ ‘000 Notes 01/01 - 31/12/10 01/01 - 31/12/09
Profitbeforetax 10,488 7,135
Incometaxespaid –3,010 –4,105
Interestexpense/income [12] 81 184
Amortisationofintangibleassetsanddepreciationofproperty,plantandequipment [16,17] 12,606 14,554
Othernon-cashexpensesandincome –824 441
Changeinpensions [24] 1,235 830
Resultfromdisposalofnon-currentassets [17] 30 –221
Changeininventories [18] –6,521 –285
Changeintradereceivables [19] –8,525 8,025
Changeinotherassets –2,338 2,495
Changeinliabilitiesandotherprovisions –130 –901
Net cash from operating activities 3,092 28,152
Investmentsinintangibleassetsandproperty,plantandequipment [16,17] –6,601 –12,396
Paymentsrelatingtotheshort-termfinancialmanagementofcashinvestments –10,000 0
Proceedsfromthedisposalofnon-currentassets 853 667
Net cash used in investing activities –15,748 –11,729
Proceedsfromfinancialliabilities 0 2,398
Repaymentoffinancialliabilities –6,337 –235
Dividendpaidtoownersoftheparent [15] –3,600 –5,100
Dividendpaidtonon-controllinginterests 0 –6
Interestreceived 335 430
Interestpaid –579 –660
Net cash used in financing activities –10,181 –3,173
effect of foreign exchange rate changes on liquidity [27] 734 –190
Change in cash and cash equivalents [27] –22,103 13,060
Cash and cash equivalents at 1 January [27] 61,379 48,319
Cash and cash equivalents at 31 december [27] 39,276 61,379
Change in cash and cash equivalents [27] –22,103 13,060
GrOup FINANCIAl StAteMeNtS
64
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
GroupStatementofChangesinEquityofSimonaAG
equity attributable to owners of the parent company Non-con-trolling interests
total equity
Notes Issued capital Capital re -
ser ves
revenue reserves Otherre-serves
in€ ‘000 [22] Sha
rec
apita
l
tota
l
Lega
lres
erve
s
Sta
tuto
ry
rese
rves
Oth
err
even
ue
rese
rves
Accu
mul
ated
pro
f-it
for
the
perio
d
tota
l
Cur
renc
ytr
ansl
a-tio
ndi
ffer
ence
s
Balanceat01/01/09 15,500 15,500 15,274 397 2,847 80,449 44,399 128,092 –1,430 211 157,647
Amountrecogniseddirectlyinequity 0 0 0 0 0 0 –225 –225 205 3 –17
Profitfortheperiod 0 0 0 0 0 0 4,988 4,988 0 34 5,022
Totalcomprehensiveincomefortheperiod 0 0 0 0 0 0 4,763 4,763 205 37 5,005
Appropriationstooth-errevenuereserves 0 0 0 0 0 6,206 –6,206 0 0 0 0
Dividendpayment [15] 0 0 0 0 0 0 –5,100 –5,100 0 0 –5,100
Distributiontonon-Groupparties 0 0 0 0 0 0 0 0 0 –6 –6
Balanceat31/12/09 15,500 15,500 15,274 397 2,847 86,655 37,856 127,755 –1,225 242 157,546
Balanceat01/01/10 15,500 15,500 15,274 397 2,847 86,655 37,856 127,755 –1,225 242 157,546
Amountrecogniseddirectlyinequity 0 0 0 0 0 0 72 72 965 3 1,040
Profitfortheperiod 0 0 0 0 0 0 7,198 7,198 0 27 7,225
Totalcomprehensiveincomefortheperiod 0 0 0 0 0 0 7,270 7,270 965 30 8,265
Appropriationstootherrevenuereserves 0 0 0 0 0 5,762 –5,762 0 0 0 0
Dividendpayment [15] 0 0 0 0 0 0 –3,600 –3,600 0 0 –3,600
Balanceat31/12/10 15,500 15,500 15,274 397 2,847 92,417 35,764 131,425 –260 272 162,211
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
65
DetailsofShareholdingsofSimonaAG
Company Ownership interest
percent
equity
€ ‘000
profit/loss of last financial year
€ ‘000
Indirectly
SIMONAS.A.,Domont,France 96.6 2,513 –686
SIMONAS.r.l.,Vimodrone,Italy 98.0 417 –181
SIMONAUKLtd.,Stafford,UnitedKingdom 100.0 910 230
SIMONAIBERICASEMIELABORADOSS.L.,Barcelona,Spain 100.0 26 41
SIMONAENGINEERINGPLASTICSTRADINGCo.Ltd.,Shanghai,China 100.0 762 238
SIMONAENGINEERINGPLASTICSCo.Ltd.,Jiangmen,China 100.0 8,282 –716
64NORTHCONAHANDRIVEHOLDINGLLC,HAZLETON,USA 100.0 2,729 0
directly
SIMONA-PLASTICSCZs.r.o.,Prag,CzechRepublic 100.0 422 87
SIMONAFAREASTLtd.,HongKong,China 100.0 1,081 272
SIMONAPOLSKASp.zo.o.,Wrocław,Poland 100.0 1,040 387
SIMONASozialwerkGmbH,Kirn(2009) 50.0 13,910 –267
SIMONAVermögensverwaltungsgesellschaftderBelegschaftmbH,Kirn(2009) 50.0 8,304 619
SIMONABeteiligungs-GmbH,Kirn 100.0 1,834 0
SIMONAAMERICAInc.,Hazleton,USA 100.0 3,569 –900
SIMONAPlast-Techniks.r.o.,Litvinov,CzechRepublic 100.0 7,696 2,216
SIMONAASIALtd.,HongKong,China 100.0 5,165 –205
DEHOPLASTPOLSKASp.zo.o.,Kwdizyn,Poland 51.0 365 109
GrOup FINANCIAl StAteMeNtS
66
Auditor’sReport
Wehaveauditedtheconsolidatedfinancialstatements
ofSIMONAAG,Kirn,comprisingthestatementoffinan-
cialposition,theincomestatement,thestatementof
comprehensiveincome,thestatementofchangesin
equity,thestatementsofcashflowsandthenotestothe
consolidatedfinancialstatements,togetherwiththe
Groupmanagementreportforthefinancialyearfrom1
Januaryto31December2010.Thelegalrepresentatives
oftheCompanyareresponsibleforthepreparationof
theconsolidatedfinancialstatementsandtheGroup
managementreportinaccordancewithIFRS,asadopted
bytheEU,aswellasincompliancewiththeadditional
provisionssetoutinSection315a(1)oftheGerman
CommercialCode(Handelsgesetzbuch–HGB).Our
responsibilityistoexpressanopinionontheconsoli-
datedfinancialstatementsandtheGroupmanagement
reportbasedonouraudit.Weconductedourauditofthe
consolidatedfinancialstatementsinaccordancewith
Section317oftheGermanCommercialCodeandin
compliancewithGermangenerallyacceptedstandards
fortheauditoffinancialstatementspromulgatedbythe
InstitutderWirtschaftsprüfer(IDW).Thosestandards
requirethatweplanandperformtheauditsuchthatmis-
statementsmateriallyaffectingthepresentationofthe
netassets,financialpositionandresultsofoperationsin
theconsolidatedfinancialstatementsinaccordancewith
theapplicablefinancialreportingframeworkandinthe
Groupmanagementreportaredetectedwithreasonable
assurance.Knowledgeofthebusinessactivitiesandthe
economicandlegalenvironmentoftheGroupandexpec-
tationsastopossiblemisstatementsaretakeninto
accountinthedeterminationofauditprocedures.
Theeffectivenessoftheaccounting-relatedinternalcon-
trolsystemandtheevidencesupportingthedisclosures
intheconsolidatedfinancialstatementsandtheGroup
managementreportareexaminedprimarilyonatest
basiswithintheframeworkoftheaudit.Theauditalso
includesassessingtheannualfinancialstatementsof
thoseentitiesincludedinconsolidation,thedetermina-
tionoftheentitiestobeincludedinconsolidation,the
accountingandconsolidationprinciplesappliedandthe
significantestimatesmadebythelegalrepresentatives,
aswellasevaluatingtheoverallpresentationofthecon-
solidatedfinancialstatementsandtheGroupmanage-
mentreport.Webelievethatourauditprovidesareason-
ablebasisforouropinion.
Ouraudithasnotledtoanyreservations.
Inouropinion,basedonthefindingsofouraudit,the
consolidatedfinancialstatementscomplywithIFRS,as
adoptedbytheEU,andtheadditionalrequirementsof
GermancommerciallawpursuanttoSection315a(1)
HGBandgiveatrueandfairviewofthenetassets,
financialpositionandresultsofoperationsinaccord-
ancewiththeserequirements.TheGroupmanagement
reportisconsistentwiththeconsolidatedfinancialstate-
mentsandasawholeprovidesasuitableviewofthe
Group’spositionandsuitablypresentstheopportunities
andrisksoffuturedevelopment.
Eschborn/FrankfurtamMain,11April2011
Ernst&YoungGmbH
Wirtschaftsprüfungsgesellschaft
vonSeidel Erbacher
GermanPublicAccountant GermanPublicAccountant
01GROUPMANAGEMENTREPORT 02 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement
GroupStatementofComprehensiveIncome
GroupStatementofFinancialPosition
NotestoConsolidatedFinancialStatements
GroupStatementofCashFlows
GroupStatementofChangesinEquity
DetailsofShareholdings
Auditor’sReport
OtherInformation
04FINANCIALSTATEMENTSOF
SIMONAAG(EXCERPT)
01COMPANY
67
reSpONSIBIlItY StAteMeNt purSuANt tO
SeCtIONS 297 (2), 315 (1) HGB
“Tothebestofourknowledge,andinaccordancewith
theapplicablereportingprinciples,theconsolidated
financialstatementsoftheSIMONAGroupgiveatrue
andfairviewoftheassets,liabilities,financialposition
andprofitorlossoftheSIMONAGroup,andtheman-
agementreportoftheGroupincludesafairreviewof
thedevelopmentandperformanceofthebusinessand
thepositionoftheGroup,togetherwithadescription
oftheprincipalopportunitiesandrisksassociatedwith
theexpecteddevelopmentoftheSIMONAGroup.”
SIMONAAG
Kirn,31March2011
TheManagementBoard
OtherInformation
GrOup FINANCIAl StAteMeNtS
68
SIMONA AMerICA Inc.
SIMONA S.A. paris
SIMONA AG Werk III
SIMONA-plAStICS CZ, s.r.o.
SIMONA FAr eASt lIMIted
SIMONA uK lIMIted
SIMONA AG SCHWeIZ
SIMONA pOlSKA Sp. z o.o.
SIMONA eNGINeerING plAStICS (Guangdong) Co. ltd.
SIMONA eNGINeerING plAStICS trAdING (Shanghai) Co. ltd.
SIMONA AG SIMONA plast-technik s.r.o.
SIMONA IBerICA SeMIelABOrAdOS S.l.
SIMONA S.r.l. ItAlIA
SIMONAworldwide
SIMONA GrOup*
2010 2009 2008
Revenue € m 267.4 215.1 303.7
Year-on-yearchange % 24.3 –29.2 1.3
ofwhichabroad € m 176.8 138.6 191.6
ofwhichabroad % 66.1 64.4 63.1
Staffcosts € m 55.9 55.3 58.2
Profitbeforetaxes € m 10.5 7.1 20.2
Profitfortheyear € m 7.2 5.0 13.9
Netcashfromoperatingactivities € m 3.1 28.2 44.7
EBIT € m 10.1 7.3 19.8
EBIT % 3.8 3.4 6.5
EBITDA € m 22.7 21.9 32.3
EBITDA % 8.5 10.2 10.6
Totalassets € m 245.0 244.7 244.8
Equity € m 162.2 157.5 157.6
Non-currentassets € m 89.4 94.3 97.1
Investmentsinproperty,plantandequipment € m 6.5 11.6 21.2
Employees(annualaverage) 1,218 1,230 1,237
*basedonIFRS
KeyFinancials
reVeNue ANd eBIt SIMONA GrOup
in € millions
300 24
250 20
200 16
150 12
100 8
50 4
0 0 Totalrevenue
2008 2009 2010 EBIT
reVeNue BY reGION SIMONA GrOup
in%
Germany
RestofEurope&Africa
Asia,America&Australia
51.9 53.4 49.6
11.3 11.2 16.6
36.8 35.4 33.8
2008 2009 2010
prOduCtION SIteS
plant I/IITeichweg16D-55606KirnGermanyPhone +49 (0) 67 5214-0Fax +49 (0) 67 5214-211
plant IIIGewerbestraße1–2D-77975RingsheimGermanyPhone +49 (0) 7822436-0Fax +49 (0) 7822436-124
SIMONA plast-technik s.r.o.UAutodílen23CZ-43603Litvínov-ChudeřínCzechRepublic
SIMONA AMerICA Inc.64N.ConahanDriveHazleton,PA18201USA
SIMONA eNGINeerING plAStICS (Guangdong) Co. ltd.No.368JinouRoadHigh&NewTechnologyIndustrialDevelopmentZoneJiangmen,GuangdongChina529000
SAleS OFFICeS SIMONA S.A. parisZ.I.1,rueduPlantLogerF -95335DomontCedexPhone +33 (0) 139 35 4949Fax +33 (0) 139 [email protected]
SIMONA uK lIMItedTelfordDriveBrookmeadIndustrialParkGB-StaffordST163STPhone +44 (0) 1785222444Fax +44 (0) [email protected]
SIMONA AG SCHWeIZIndustriezoneBäumlimattstraße16CH-4313MöhlinPhone +41 (0) 618 55 9070Fax +41 (0) 618 55 [email protected]
SIMONA S.r.l. ItAlIAViaPadanaSuperiore19/BI -20090Vimodrone(MI)Phone +390225 08 51Fax +390225 08 [email protected]
SIMONA IBerICA SeMIelABOrAdOS S.l.DoctorJosepCastells,26–30PolígonoIndustrialFonollarE-08830SantBoideLlobregatPhone +3493 635 4103Fax +3493 630 88 [email protected]
SIMONA AG
teichweg 16d-55606 KirnGermanyPhone +49 (0) 67 5214-0Fax +49 (0) 67 [email protected]
SIMONA-plAStICS CZ, s.r.o.Zdebradskául.70CZ-25101Rícany-JazlovicePhone +420 323 6378 3-7/-8/-9Fax +420 323 6378 [email protected]
SIMONA pOlSKA Sp. z o.o.ul.H.Kamienskiego201–219PL-51-126WrocławPhone +48 (0) 713 52 80 20Fax +48 (0) 713 52 [email protected]
SIMONA FAr eASt lIMItedRoom501,5/FCCTTelecomBuilding11WoShingStreetFoTanHongkongPhone +85229 47 01 93Fax +85229 47 01 [email protected]
SIMONA eNGINeerING plAStICS trAdING (Shanghai) Co. ltd.RoomC,19/F,BlockAJiaFaMansion129DaTianRoad,JingAnDistrictShanghaiChina200041Phone +862162670881Fax [email protected]
SIMONA AMerICA Inc.64N.ConahanDriveHazleton,PA18201USAPhone +1866 501 2992Fax +1800 522 [email protected]
StOCK dAtA
2010 2009 2008
Earningspershare € 12.00 8.31 23.20
Dividend € 6.50 6.00 8.50
Dividendyield 2.1 1.9 2.6
P/Eratio* 26.3 38.1 14.0
Marketcapitalisation-over-equityratio* 1.17 1.21 1.23
sharepriceasatDec.31 € 315.00 317.00 324.00
*Eachcalculatedonconsolidatedbasis
69
SIMONA AGInvestorRelationsTeichweg16D-55606Kirn
Phone+49 (0) 67 5214-0Fax +49 (0) 67 5214-211
11FinancialReportofSIMONAGroupandSIMONAAG 02May2011
AnalystConferencefor2010AnnualResults(Frankfurt) 04May2011
InterimAnnouncementwithintheFirstHalf 04May2011
AnnualGeneralMeeting 01July2011
PublicationofGroupFinancialReport(Half-Year) 24August2011
InterimAnnouncementwithintheSecondHalf 09November2011
FinancialCalendar
SIMONAworldwide➝
01 COMpANY
ManagementBoard 02
LettertoShareholders 03
KeyEvents 04
StockPerformanceandCapitalMarkets 06
ReportbytheSupervisoryBoard 07
CorporateGovernanceReport 11
GoverningBodies 14
Shareholdings 15
02 GrOup MANAGeMeNt repOrt
BusinessActivitiesandGeneralConditions 17
FinancialPerformance 23
FinancialAssetsandLiabilities 24
FinancialPosition 24
EventsaftertheReportingDate 26
RiskReport 26
ReportonExpectedDevelopments 27
OtherInformation 28
03 GrOup FINANCIAl StAteMeNtS
GroupIncomeStatement 36
GroupStatementofComprehensiveIncome 37
GroupStatementofFinancialPosition 38
NotestoConsolidatedFinancialStatements 39
GroupStatementofCashFlows 74
GroupStatementofChangesinEquity 75
DetailsofShareholdings 76
Auditor’sReport 77
OtherInformation 78
04 FINANCIAl StAteMeNtS OF SIMONA AG (eXCerpt)
BalanceSheet 80
IncomeStatement 82
OtHer
Imprint 84
FinancialCalendar Cover
SIMONAWorldwide Cover
2010Financial report of SIMONA AG
KeyFinancialsforFY2010 ➝