Annual Report 2010

Transcription

Annual Report 2010

A n n ua l R e po rt 2 0 1 0
Contents
GfK Group
III
Our corporate values
IV
GfK Group 2010 in figures
1
Preface
2
2010 at a glance
4
Report by the Supervisory Board
9
The Supervisory Board
10
Letter to the shareholders
14
The Management Board
18
Corporate Governance
27
GfK shares
GfK Special: Digital
34
Online and cross-media advertising under the
microscope: the GfK Media Efficiency Panel
44
Digital Day
54
Plug & Play: the Dialogatore –
a remote control for the digital world
60
The third dimension conquers the screen
Management Report of the GfK Group
71
Management Report
Financial statements of the GfK Group
103 Consolidated financial statements
110 Notes to the consolidated financial statements
157 Auditor’s report
Additional information
160 5-year review
164 Glossaries
170 List of GfK company abbreviations
V
Financial calendar
VI
Index
VII
Acknowledgements and contacts
II
Our corpor ate values
Client driven
Our clients’ needs drive our business. We continuously seek to better understand our clients’ needs, improve
all aspects of existing research products, offer innovative products and to be an integral part of our clients’
information systems. Accuracy, sound methodology, excellent client service, flexibility, timely delivery and
cost effectiveness all ensure that we meet and even exceed our clients’ expectations. We build long-term
partnerships with our clients, contributing to their success.
Our people
People are our main asset. Development through training, sharing ideas and sound experience is essential
to our business. Our people have the freedom to explore and develop their talents and are empowered to
achieve our common goals. We encourage and reward initiative, dedication and hard work. Fairness, good
communication and working relationships at all levels and locations are key to our success.
Innovation
We recognize that investing in continuous innovation in both the process and the end product is a prerequisite
to meeting clients’ requirements. Our aim is to be at the cutting edge with our key business activities. Clients’
needs, evolving markets, new technology and the expertise and ideas of our people throughout the world are
what drive innovation.
Global experience – local knowledge
We respect and learn from local business practices and cultures and provide knowledge tailored to local
needs. Our global network comprises international teams, tools and products to provide multinational clients
with consistent services. As proud members of the GfK Group, we share local and international expertise to
continually improve all aspects of our business.
Growth
Profitable growth results in greater opportunities. As individuals, teams and business units, we are aware of
the impact of our decisions and actions at all levels. We use financial and non-financial measurements to
review and improve performance on an ongoing basis. Our growth provides investors with a fair return on the
financial resources they have entrusted to us.
III
GfKK GrOUP 2010 :
in figures
2009
2010
Change
in %
Sales
in eur m
1,164.5
1,294.2
+ 11.1
ebitda
in eur m
159.1
195.7
+ 23.0
Adjusted operating income1)
in eur m
147.2
185.0
+ 25.7
in %
12.6
14.3
–
Operating income
in eur m
88.9
136.7
+ 53.8
Income from ongoing business activity
in eur m
75.5
124.8
+ 65.3
Consolidated total income
in eur m
60.5
84.0
+ 38.8
in %
19.8
32.7
–
in eur m
134.7
172.0
+ 27.7
Earnings per share
eur
1.42
1.99
+ 40.1
Dividend per share
eur
0.30
0.48
+ 60.0
Total dividend
in eur m
10.8
17.4
+ 61.5
Number of employees at year-end
full-time
10,058
10,546
+ 4.9
Margin2)
Tax ratio
Cash flow from operating activity
1) Adjusted operating income is derived from the operating income. The following expenses and income have been excluded: expenses
and income in connection with reorganization and business combinations, write-ups and write-downs of additional assets identified
on acquisitions, personnel expenses for share-based payments and long-term incentives and remaining other operating income and
expenses, in particular, currency effects resulting from the reporting date valuation.
2) Adjusted operating income in relation to sales.
>>
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IV
GfK GROUP
Annual Report 2010
Digital. THIS WORD FROM
THE WORLD OF TECHNOLOGY
HAS BECOME A SYNONYM
FOR HOW WE COMMUNICATE
AND INTERACT WITH ONE
ANOTHER. HOW WE WORK, PLAY,
WATCH MOVIES, LISTEN TO
MUSIC OR TAKE PHOTOGRAPHS.
AND HOW WE LIVE. DIGITAL
HAS BECOME A WAY OF LIFE.
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GfK_1
2010 at a glance
GfK GROUP
2010 at a glance
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02
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2010 at a glance
01 / January
04 / April
GfK Fernsehforschung marks 25 years of recording German tv audience ratings.
The company’s first panel data shows the tv viewing figures for January 1, 1985.
The British company GfK Kynetec is the only organization worldwide that
maintains a global database covering the entire market for crop protection
products. In addition to data on agricultural pesticides, it now also provides
information on plant protection products that are not used in farming.
Dr. Silvestre Bertolini, Managing Director of GfK Retail and Technology Italia,
is elected President of the Italian market research association assirm for the
second time.
GfK TechTest is applied for the first time in the uk. Clients can use this tool
to test a product idea or a new model of a product prior to market launch and
compare it with similar products.
02 / February
The Supervisory Board of GfK se extends the contract of Management Board
member Debbie Pruent by five years. The new contract is effective as of January 1,
2011 and will run until December 31, 2015.
GfK Retail and Technology uk surveys mobile phone sales in Ireland for the first
time. The GfK Mobile Tracker now supplies information on the mobile phone
market in a total of 75 countries worldwide.
GfK Panel Services Germany equips the members of its GfK Media Efficiency
Panel with modified mobile phones that record their tv advertising exposure
via sound recognition. The GfK Media Efficiency Panel enables detailed analysis
of the effects of cross-media advertising campaigns on the actual purchase
behavior of consumers.
The us-based company GfK Mediamark Research & Intelligence (GfK mri)
launches a pilot study on digital reading formats. From April to November
2010, this study tests how magazine readers can be questioned most effectively
about their use of digital formats.
05 / May
03 / March
GfK acquires a 40 % stake in German companies SirValUse Consulting and
nurago. SirValUse is Europe’s largest consultancy company in the field of
user experience and usability, while nurago is one of the leading providers of
technologies for digital brand, media and usability research.
The Heinrich A. Litzenroth Memorial Health Center in Kalmunai, Sri Lanka,
which was built with funds raised by GfK, is officially inaugurated.
GfK Middle East, which is based in the United Arab Emirates, becomes the first
market research organization to establish an independent subsidiary in Saudi Arabia.
GfK Panel Services Germany launches GfK Web Value, a new instrument for
measuring online usage that clients can use independently offline. It is based
on the findings of the German Media Efficiency Panel, which records the online
surfing behavior of more than 32,000 people.
In India, GfK increases its stake in subsidiary GfK Mode, part of the Custom
Research sector, from 51 % to 100 %. With branches in 15 Indian cities and an
office in Bangladesh, the company is particularly active in the areas of consumer
and social research.
The Indian government commissions Indian GfK subsidiary GfK Mode to conduct
a health survey covering the entire country for the next three years (Annual
Health Survey).
GfK Retail and Technology East Africa opens its first subsidiary in Kenya.
orf and most private Austrian radio stations extend their contracts with GfK
Austria for the recording of radio audience figures in Austria until 2013.
Coca-Cola North America names GfK Custom Research North America “Research
Partner of the Year”, honoring the outstanding achievements of the GfK subsidiary
in the previous year.
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2010 at a glance
GfK GROUP
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06
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09
06 / June
09 / September
As part of a new joint project with the Mobile Entertainment Forum (mef), an
international trade organization operating in the field of mobile media, GfK Asia
provides information on mobile entertainment. The GfK Mobile Content Industry
Report contains download data on ringtones, music, images, videos and games
for mobile phones.
Dr. Gerhard Hausruckinger joins the GfK se Management Board, with responsibility for the Retail and Technology sector. He manages the sector’s business
together with Dr. Gérard Hermet until December 31, when the latter retires.
Following GfK’s acquisition of the remaining 25 % stake in GfK Kynetec, which
focuses on global market research in the areas of animal health, biotechnology
and pesticides, the company is now 100 %-owned by the GfK Group.
Manager Magazin names the GfK Annual Report the best in the sdax category
in the “Best Annual Reports” competition.
The specialist magazine Inside Research names GfK mri the best us provider
of syndicated market research for the third time.
GfK TechTest is launched on the market in the usa and Germany.
10 / October
GfK Panel Services Benelux sets up a GfK Media Efficiency Panel.
The GfK Group celebrates the 20th anniversary of its presence in Central and
Eastern Europe.
07 / July
French ad hoc specialists GfK isl and GfK Custom Research France complete a
merger. The new company, which now operates under the name “GfK isl Custom
Research France”, is one of the largest market research organizations in France.
Portuguese GfK subsidiary intercampus, an expert on cati, capi and Paper & Pencil
surveys, celebrates its 20th anniversary.
The Central Statistical Bureau of Latvia commissions GfK Custom Research
Baltic to carry out the census in 2011.
Mike Cooke, Global Director of Online Development at GfK nop in the uk,
and Bruno Colin, Global Managing Director of Technology & Operations at GfK
isl Custom Research France, are elected to the Management Board of the
global market research association esomar. As of January 2011, Mike Cooke
is appointed Vice President of the ten-member esomar Council.
08 / August
The GfK Business and Technology department of GfK Custom Research North
America opens a branch in San Francisco.
11 / November
GfK Custom Research North America acquires interscope, a us-based company
specializing in brand positioning in the retail sector.
GfK Retail and Technology Germany celebrates its 40th anniversary.
Flemish public transport operator De Lijn extends its contract with Belgian
company GfK Significant, which has been recording how satisfied users are
with public transport in Belgium since 2006, by a further five years.
12 / December
Launch of GfK’s new brand positioning.
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GfK GROUP
REPORT BY THE
SUPERVISORY BOARD
Dr. Arno Mahlert, Chairman of the Supervisory Board of GfK se
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GfK GROUP
D E AR S HAREH O LD ERS ,
In 2010, GfK was able to successfully overcome the effects of the global financial and economic crisis
and to sustain the continuous growth achieved up to 2008. The fundamental basis of this success was
the prompt introduction of a cost management program, clear rationalization measures, continued
and uninterrupted efforts to maintain the consistently high quality of our products and services
and an intensified focus on the needs and wishes of our customers. On behalf of the Supervisory
Board, I should like to express my sincere thanks to all those involved, our employees, our employee
representatives and the Management Board for the strength of their commitment and their hard
work. Thanks and recognition are also due to the clients and business associates of the GfK Group.
In the year under review, the Supervisory Board continued to discharge its obligations according
to the law, the Articles of Association, the German Corporate Governance Code and the internal
regulations of the company with due diligence. The Supervisory Board regularly advised the
Management Board on management of the company and monitored its activities. The Supervisory
Board was involved in every decision of essential importance to the company. The Management
Board kept the Supervisory Board regularly and comprehensively informed of any developments
relevant to its remit at the appropriate times in both written and oral form. The main issues related
to the Group’s business development, its income and financial position, its personnel situation,
business strategy, corporate planning, investment program, compliance and risk management.
Between board meetings, the ceo of the Management Board and Chairman of the Supervisory Board
together discussed every issue of importance to the company.
—
meetings of the supervisory board and its committees
The Supervisory Board met in person seven times in 2010. At these sessions, the Management
Board reports were exhaustively discussed, and the prospects for the Group’s growth were
examined in detail and voted on accordingly.
The main topics included the annual financial statements for 2009, business development in 2010,
the budget for financial year 2011, discussions on the measures taken to ensure sustainable global
growth and the adaptation measures introduced to strengthen the Group’s competitive position
and increase its financial power. A focus of particular interest was the future development of the
Group’s strategic positioning and its management organization, backed by support from a wellknown international consultancy. The project, which is not yet complete, was launched in autumn
2010 under the title: “Where to play and how to win”.
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GfK GROUP
Another of the core issues was managing the challenges and business opportunities generated by
the digital world. One of the major initiatives being advanced in this area is the GfK nis (Network
Intelligence Solutions) project in the Retail and Technology sector, by which GfK is aiming to
measure internet consumption using mobile terminals in the future. The Supervisory Board has
been kept regularly informed of the project’s progress.
In 2010, the Supervisory Board once again deliberated on the provisions of the German Corporate
Governance Code and issued the declaration of compliance in accordance with Section 161 of the
German Stock Corporation Act (AktG) on December 16, 2010. The company is in compliance with
the mandatory provisions with the exception of five of the requirements, and complies with all
of the regulations where compliance is on a voluntary basis. The discrepancies are detailed and
explained in the Corporate Governance report on pages 25ff of the present Annual Report. At the
end of the financial year, and with the support of a reputable personnel management consultancy,
the Supervisory Board commissioned an efficiency audit, the results of which will be available in
the first quarter of 2011.
To ensure its own efficiency, the Supervisory Board is supported in its work by four committees:
the Audit Committee, the Personnel Committee, the Presidial Committee and the Nominations
Committee. The Supervisory Board was kept regularly and exhaustively informed of the work of
the Committees.
The Audit Committee met eight times in the reporting period (five personal meetings and three
tele-conferences) to discuss the company’s business development, its income and financial position, and any planned investments. Additional focal points were issues of financing, questions pertaining to the accounting system and interim reporting, internal controlling, the internal audit, risk
management and subjects relating to corporate governance and integrity.
The Personnel Committee met six times (four personal meetings and two tele-conferences) and
dealt intensively with ongoing development of the existing remuneration system and definition of
targets for Management Board members in light of management board remuneration legislation.
The details are indicated in the remuneration report on pages 21ff of the present Annual Report.
The deliberations also centered on the selection of candidates to succeed the two Management
Board members Dr. Gérard Hermet and Wilhelm R. Wessels.
The Presidial Committee held three meetings in person as well as a series of tele-conferences. These
were aimed at preparatory work for Supervisory Board meetings, in particular on the following
issues: further development of corporate strategy and management organization, preparations for
the efficiency audit, internet and it strategy, the 2011 budget and compliance issues.
The Nominations Committee held two personal meetings and several tele-conferences concerned with
the selection of candidates to succeed Stephan Gemkow and the tailoring of the Board to the requirements of the diversity regulations (diversity and balance in the composition of the Supervisory Board).
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GfK GROUP
—
annual and consolidated accounts
The 2010 annual financial statements of GfK se, prepared by the Management Board in accordance
with the regulations of the German Commercial Code (hgb) and the ifrs International Financial
Reporting Standards, were audited and given unqualified approval by the auditor, kpmg ag. Every
member of the Supervisory Board received the audited financial statements at the appropriate time.
The Supervisory Board assured itself of the impartiality of the auditor and of the auditor’s personnel. The Audit Committee deliberated on the accounts documents and the audit report at its session of March 18, 2011 and the Supervisory Board gave these consideration at the plenary session
held during its accounts meeting on March 22, 2011. The auditors of both the annual and consolidated accounts were present at both these meetings. They reported on the audit in general and on
particular aspects specified as mandatory for the issue of the auditor’s certificate. Beyond this, they
responded in detail to questions from members of the Audit Committee and the Supervisory Board.
The Supervisory Board noted and approved the auditor’s report and, having examined the financial
statements prepared by the Management Board, gave its approval to discharge the accounts. In light
of the current and anticipated financial position of the Group, the Supervisory Board deliberated on
the proposal for appropriation of the profits put forward by the Management Board and, having found
it to be appropriate, gave its approval.
—
changes in the composition of the management board and supervisory board
On September 1, 2010, the Supervisory Board appointed Dr. Gerhard Hausruckinger to the
Management Board as successor to outgoing member Dr. Gérard Hermet. With the arrival of
Dr. Hausruckinger, GfK is gaining a person of stature with international management experience
and all the skills needed to further advance the development of the Retail and Technology sector.
The Supervisory Board would like to thank Dr. Gérard Hermet for his successful efforts over a period
of 26 years with GfK. His complete dedication and creative entrepreneurship, coupled with his
tireless commitment to introducing new business ideas and innovations to Retail and Technology,
have made this sector one of the jewels in the GfK crown. On his departure from the Management
Board on January 1, 2011, Dr. Hermet will continue to be available to GfK in a consultative capacity.
His remit will be mainly concerned with promoting the GfK nis project.
In October 2010, Wilhelm R. Wessels advised the Chairman of the Supervisory Board of his decision
not to seek an extension to his service contract, which expires at the end of September 2011. The
Supervisory Board noted this decision with regret. In the year under review, the Supervisory Board
had not yet made a decision concerning a possible successor.
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GfK GROUP
In October 2010, Stephan Gemkow advised the Chairman of the Supervisory Board that the
new provisions of the German Corporate Governance Code (which may restrict the number of
Supervisory Board appointments held by Management Board members, if, in future, consolidated mandates are taken into consideration) were likely to compel him to resign his position on
the Supervisory Board of GfK with effect from the date of the 2011 Annual General Meeting. The
Supervisory Board noted this with much regret. An appropriate successor is still being sought.
In February 2011, Professor Dr. Klaus L. Wübbenhorst informed the Supervisory Board that, for
personal reasons, he will not be extending his current service contract, which will expire at the
end of July 2012. The Supervisory Board regrets but respects Professor Wübbenhorst’s decision,
and has thanked him for announcing this at an early stage. In Professor Wübbenhorst’s 20 years
on the Management Board, GfK has developed from a company primarily focused on Germany to a
world-class, international stock exchange-listed corporation. Some milestones in the development
of the company under his regime were the restructuring of GfK in 1992, the stock exchange launch
in 1999, the successful acquisition of nop World in 2005 and the transformation of GfK ag into
GfK se in 2008.
—
outlook
Over the years, GfK has gained a superb competitive position in attractive growth markets. The
Supervisory Board is of the conviction that the company is well prepared from both a financial and
personnel perspective to successfully meet the challenges and opportunities which lie ahead in
2011. This applies, in particular, to the new business opportunities presented to the company by
increasing market digitization.
Nuremberg, March 22, 2011
Dr. Arno Mahlert
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The Supervisory Board
GfK GROUP
THE SUPERVISORY BOARD
Dr. Arno Mahlert
Sandra Hofstetter
Audit Committee
Chairman of the Supervisory Board
Since May 26, 2010
Stephan Gemkow,
Non-Executive Director
Independent Works’ Council Representative
of GfK se, Nuremberg
(Chairman since May 19, 2010)
Dr. Christoph Achenbach,
(Chairman up to May 19, 2010)
Stefan Pfander
Stefan Pfander
Deputy Chairman
of the Supervisory Board
Management Consultant
Stephan Lindeman
Dieter Wilbois
Research Director at Intomart GfK b.v.,
Hilversum, Netherlands
Personnel Committee
Dr. Wolfgang C. Berndt (Chairman)
Dr. Arno Mahlert
Dr. Christoph Achenbach
Managing Director and
Shani Orchard
Human Resources and Facilities Director
Shani Orchard
Hauke Stars
at GfK Retail and Technology uk Ltd,
West Byfl eet, Surrey, uk
Presidial Committee
Dr. Wolfgang C. Berndt
Dr. Arno Mahlert (Chairman)
Hauke Stars
General Manager of Hewlett-Packard Schweiz
GmbH, Dübendorf, Switzerland
Dr. Wolfgang C. Berndt (since May 19, 2010)
Stefan Pfander
Hauke Stars
Dieter Wilbois
Stephan Gemkow
Member of the Management Board of
Deutsche Lufthansa ag, Cologne
Dieter Wilbois
Independent Works’ Council Representative
of GfK se, Nuremberg
Chairman of the Group Works’ Council and
Nominations Committee
Stefan Pfander
the European se Works‘ Council
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GfK_9
Letter to the Shareholders
GfK GROUP
LETTER TO The SHAREHOLDERS
Professor Dr. Klaus L. Wübbenhorst, Chief Executive Officer of GfK se
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GfK GROUP
The title of our 2009 Annual Report was “Courage”. And our courage in dealing with the crisis
has certainly paid off: from worry lines to laughter lines, and from being underworked to working overtime.
More optimistic and relaxed describes the mood at the start of 2011. The uncertainties and
doubts which marked the beginning of 2010 clearly receded during the course of the year, and
ultimately, 2010 turned out to be an outstanding year for us. For the year just begun, there is
every reason to believe that we will continue to enjoy positive development.
—
2010 review
How did we manage to achieve this resounding success to record the best ever sales and result
in the history of the company? I believe there are five reasons:
First: the global recovery
Our clients are once again doing better. After our industry registered negative growth in 2009
in the first ever decline recorded by our professional association, esomar, the consumer
research market is again ripe for sustainable growth. This gives us the advantage of a tail wind
to speed our progress, and no head wind to battle against.
Second: globalization
A consistent focus on the emerging economies – acquisition coupled with organic growth – has
proved to be an engine of growth. We have increased our sales in Central and Eastern Europe by
25.2 %, in Latin America by 37.1 % and in Asia and the Pacific by 22.5 %. With the exception of
North America, sales in all our regions are also above their 2008 level.
Third: the digital media
We are mixing just the right cocktail of acquisitions and organic growth. The SirValUse and
nurago experts are growth drivers who, together with their GfK colleagues, are developing
promising and innovative products across our three sectors. This gives us the capability of combining our traditional strengths with new technologies. The unique GfK Media Efficiency Panel
has its origins in our household panels. The GfK WebValue Index, GfK Online Buzz Miner and
GfK Ceres are further examples of developments which have set benchmark standards.
GfK Network Intelligence Solutions, or GfK nis for short, represents a revolutionary new dimension in market research, and at this juncture, I can do no better than to quote one of our major
shareholders: “We are excited about the potential for the nis initiative.”
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GfK GROUP
Fourth: our biss fitness and efficiency program
Thirteen of our 30 or so programs are already complete. Efficiency gains and essential
expenditure are running to schedule.
The “moveIT” global it standardization program launched under the aegis of biss was virtually
complete by the end of 2010. In addition to significant cost savings and quality improvements,
“moveIT” has also proved to be an important preparatory trailblazer for our “Global Operations”
project in the Custom Research sector.
Fifth: Team GfK
Of course, a good workflow at the GfK Group is also demanding and places a fair degree of stress
on us all. Many GfK departments are currently working at the upper limits of what is reasonable
over the longer term. My opinion on this is that more work is surely better than too little work, or
indeed, none at all. However, having said this, constant overworking and permanent weekend
work at the cost of private life is wrong. Our shared task is to find the right balance.
Striking the right balance in the next chapter of his life is something I wish for our French
colleague, Dr. Gérard Hermet, who left the company at the end of 2010. He represents many
of the facets which distinguish GfK: growing globalization, entrepreneurship, innovative
market research and lasting success. I should like to express my sincerest thanks to him for
his 26 years of dedicated service to the GfK Group in so many different places, from Azerbaijan
to Yemen. I am convinced that his successor, Dr. Gerhard Hausruckinger, will also be instrumental in the continuing success story that is GfK.
The future plans of my Management Board colleague Wilhelm R. Wessels also herald a change:
after 32 years with GfK, he has decided not to extend his current service contract and will be
leaving the company at the end of September 2011. I would also like to thank Wilhelm Wessels
wholeheartedly for his many years of service to GfK, but as he will continue to be involved in
steering GfK’s course over the rest of this year, I will say goodbye properly at a later stage.
—
outlook for 2011
The GfK Group is valued for the fact that it always directs its activities along clear strategic
lines. In 1995, this was “Fit for Going Public”. Five years later, the core strategic message was
the “Triple Ten Initiative”, and since 2005, our strategy has concentrated on the central statements
contained in our “5 Star Initiative”.
We are now well into 2011 and the time has come to put our current strategy to the test. Quite
apart from the fact that five years have gone by since it was formulated, the world is now turning
so much faster: reason enough for the Management Board and Supervisory Board to initiate a
new strategy project. Indeed, for the first time in many years, we resolved not to rely solely on
our own deliberations, but to seek the support of external experts.
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GfK GROUP
The project which emerged from this goes by the name of: “Where to play and how to win?”
The key questions are:
• Where is there room for improvement in what we do?
• Where are there potential opportunities for growth in the digital media
and in which regions in particular?
• How do we go about implementing the strategy?
• What are the priorities, what are the challenges we must confront and
what resources are needed?
The project is intended to give us the possibility of becoming even more competitive from our
current position of strength, at a time when the economy has recovered. I shall keep you
informed of the results of the project at the appropriate time.
However, at this point, I should like to inform you of a personal decision, which, after 20 years
with GfK and 13 of them as ceo, has not been an easy one for me to make. Our superb result for
2010 and the fact that I celebrated my 55th birthday in February mean that this is a good time
for a change of management at GfK in the medium term, and for me personally, it is a welcome
opportunity to seek fresh challenges in pastures new. It is for these reasons that I have
decided not to renew my service contract beyond July 2012, when it expires. But I can promise
you that until then and indeed, up to the appointment of my successor, I shall continue as before,
with all my energy and total commitment to GfK. And I would certainly like to accompany GfK
for a little longer on its way into the future.
I have addressed an important focus of our vision for the coming years in the Annual Report
under the theme “Digital”.
The development of our digital society is both incalculably vast and dizzyingly fast. Computers
and internet use are changing society, the media, consumer behavior and communications. Who
are the users behind the hits? How do social networks influence brand image and buying behavior? What are the effects on society of the “anywhere – anytime” culture of digital mobilization?
It would be presumptuous to promise that we have all the right answers to these questions.
However, in 2011 we are once again passionately committed to working with our clients in the
search for the right questions and the appropriate answers.
Sincerely yours,
Prof. Dr. Klaus L. Wübbenhorst
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GfK GROUP
The MANAGEMENT BOARD
Digitally connected: (from left to right) Debra A. Pruent, Dr. Gerhard Hausruckinger, Pamela Knapp, Professor Dr. Klaus L. Wübbenhorst,
Wilhelm R. Wessels, Petra Heinlein, Dr. Gérard Hermet
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GfK GROUP
GfK GROUP
CVs of Management Board Members
Professor Dr. Klaus L. Wübbenhorst
Pamela Knapp
born 1956
born 1958
Chief Executive Officer (ceo), responsible for
Chief Financial Officer (cfo), responsible for
Strategy, Internal Audit, Marketing Sciences,
Financial Services, Human Resources and
Corporate Communications and it Services
Central Services
—
—
professional career
professional career
Since 1998 Spokesman and, since 1999, ceo
Since November 2009 Member of the Management
of GfK se, Nuremberg, appointed until 2012
Board of GfK se, appointed until 2012
2005 – February 2010 President of the Chamber
2004 – 2009 Member of the Group Executive
of Industry and Commerce for Middle Franconia
Management and cfo of the Power Transmission &
in Nuremberg, Honorary President since 2010
Distribution Group at Siemens
1992 – 1997 Member of the Management Board
2000 – 2004 Head of Corporate Development
of GfK ag, Nuremberg, responsible for Finances,
Executives Department of the Siemens Group
Accounting, Financial Controlling, Personnel,
Purchasing, Production and it
1991 – 1992 Member of the Management Board
of kba-Planeta ag, Radebeul near Dresden
1984 – 1991 Employee of Bertelsmann ag, Gütersloh;
most recently Managing Director of Druck- und
Verlagsanstalt Wiener Verlag, Himberg near Vienna
—
1998 – 2000 Member of the Management Board and
cfo of Siemens s.a, Belgium and Luxembourg
1994 – 1997 Head of Maintenance & Services of Mass
Transit Vehicles of the Transportation Systems Group
of Siemens
1992 – 1994 Head of Strategic Projects in the Transportation Systems Group of Siemens
1991 – 1992 m&a Consultant at Fuchs Consult GmbH
education
1987 – 1991 m&a Consultant at Deutsche Bank
2005 Awarded the title of Honorary Professor
Morgan Grenfell GmbH
by Friedrich-Alexander University in
Erlangen-Nuremberg
—
education
1984 Doctorate from the Technische Hochschule
Darmstadt
1981 Graduated in Business Administration from
the University/Gesamthochschule Essen
16_GfK
< < back
1987 Graduated in Economics from the
Free University of Berlin
GfK GROUP
Dr. Gerhard Hausruckinger
Petra Heinlein
Dr. Gérard Hermet
born 1961
born 1958
born 1951
Responsible for the Retail and Technology sector
Responsible for the Custom Research sector
Responsible for the Retail and Technology sector
—
—
—
professional career
professional career
professional career
Since September 2010 Member of the Management
Since 2002 Member of the Management Board
1999 – December 2010 Member of the Management
Board of GfK se, appointed until 2013
of GfK se, appointed until 2011
Board of GfK se
2008 – 2010 Chief Executive Officer (ceo)
2001 – 2001 Integration management on behalf
1988 – 2000 President of the French Marketing
of Emnos GmbH, Munich
of GfK ag
Association afm
2006 – 2008 Managing Director of Retail segment
1992 – 2000 Managing Director of contest census
1988 – 1998 Managing Director of GfK Sofema, France
and responsible for Management Consulting in the
in Frankfurt
Product sector at Accenture, Kronberg
1994 – 2005 Consultant at Roland Berger Strategy
Consultants in the Retail and Consumer Goods sector,
Partner as of 2000, based in London and Munich
1992 – 1994 Project Manager for Corporate
Development at Karstadt ag, Essen
—
education
1984 – 1998 Managing Director of GfK France; most
1985 Joined GfK as Project Manager with GfK
recently General Manager of GfK Marketing Services,
Marktforschung
France
1984 Research Assistant at the Arnold-Bergstraesser
1978 – 1984 Employed by Burke Marketing Research,
Institute, Freiburg im Breisgau
France
—
—
education
education
1984 Graduated in Political Science from the
1978 Doctorate from the University of Grenoble
University of Bamberg
1992 Doctorate from the University of Regensburg
1975 mba from the French Business School (icn)
1988 Graduated in Business Administration
from the University of Regensburg
Debra A. Pruent
Wilhelm R. Wessels
born 1961
born 1952
Responsible for the Custom Research sector
Responsible for the Custom Research and
Media sectors
—
—
professional career
professional career
2006 – 2007 Chief Operating Officer (coo)
1991 – 1996 Managing Director of GfK ag,
of GfK Custom Research North America
Gesundheitsforschung / i + g Gruppe Gesundheits-
2005 – 2006 President of GfK nop Products &
Services, usa
1992 – 2005 Employed by us automotive
industry market research company Allison-Fisher
und Pharma-Marktforschung
1986 – 1996 Managing Director of gpi, Gesellschaft
für Pharma-Informationssysteme, Nuremberg/
Frankfurt
International, most recently ceo
1978 Joined GfK as Research Associate
1983 – 1992 Various management functions with
—
General Motors Corporation, usa
education
1988 – 1990 Extraordinary Professor of Statistics
1977 Graduated in Business Administration from the
at Oakland University, usa
University of Saarbrücken
—
education
1986 Graduated in Applied Statistics
from Oakland University, usa
1983 Graduated in Mathematics and Computer
Science from Wayne State University, usa
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GfK_17
GfK GROUP
The management of GfK is committed to increasing the value added of the company on a responsible,
transparent and sustained basis.
—
declaration of compliance without material restrictions
The Management Board and the Supervisory Board issued their declarations of compliance pursuant
to Section 161 of the German Stock Corporation Act (AktG) in conjunction with Art. 9 para. 1 c) (ii)
of the European Company Statute Regulation (se Regulation) in December 2010. The declaration of
compliance is on page 25.
The company complies with all the recommendations under the German Corporate Governance
Code (the “Code”), apart from the exemptions mentioned in the declaration of compliance.
—
management and control structure
Pursuant to Art. 9 para. 1 c) (ii) of the se Regulation, GfK se is subject to the German Stock
Corporation Act. It has a two-tier management and control structure.
The Management Board consisted of six members until the end of August 2010 and seven from
then until the end of year. Until the Annual General Meeting on May 19, 2010 GfK se had a
Supervisory Board with nine members, which has been extended to ten since the amendment
of the Articles of Association agreed at the Annual General Meeting on May 19, 2010.
In the course of the change in the legal form of the company to a Societas Europaea (se), the
Management Board and employee representatives agreed on regulations for the size and composition of the Supervisory Board of GfK se in an employee participation agreement. It was
agreed that the Supervisory Board would be composed of ten members, of which four would
be elected by the employees.
For implementation of the employee participation agreement, it was decided at the Annual
General Meeting on May 19, 2010 that the Articles of Association would be adapted accordingly
in Article 9 (1), sentences 1 and 2.
In accordance with the codes of procedure of the Supervisory Board, its representatives are
independent. Alongside their activity for the GfK se Supervisory Board, the majority of the members also served on executive bodies or held senior positions in other companies during 2010.
The Supervisory Board has formed four independent committees: the Presidial Committee, the
Nominations Committee, the Personnel Committee and the Audit Committee.
The Corporate Governance Code recommends that the Chairman of the Audit Committee should
have particular expertise and experience in the application of accounting principles and internal
financial controlling. The Audit Committee was chaired by Dr. Christoph Achenbach until the
Annual General Meeting on May 19, 2010, and Stephan Gemkow has chaired this Committee
since then. Mr Gemkow is a member of the Management Board of Deutsche Lufthansa ag and
is responsible for the finance department at this company.
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GfK GROUP
In 2010, there were no consultancy and other service and works contracts between members
of the Supervisory Board and the company. Further details of the activities of the Supervisory
Board are given in the detailed Report by the Supervisory Board on page 4 onwards.
The company has taken out a d & o insurance policy with an appropriate deductible for members
of the Management and Supervisory Boards.
—
responsible risk management
Systematic risk management has been in place at the company for many years and has been
reviewed by the year-end auditors. Details are provided in the Risk Report on page 94 onwards.
—
transparency in communications
With the aim of transparent communications, the company is pursuing its objective of providing
the same information to all shareholders and interested members of the general public at the same
time. All press releases and corporate communications are available via the website www.gfk.com.
All publications, such as ad hoc reports, press releases, interim reports and annual reports, are also
published in English. Speeches given by the ceo at the Annual General Meeting or with regard to
quarterly results are recorded and available for a limited period via the GfK website. A financial
calendar, which can also be viewed on the website, provides information on all important publication and event dates. Newsletters in both electronic and printed form report on the latest news
from the Group.
—
targets for management and for the composition of the supervisory board
The Management Board and the Supervisory Board form the dual management and control
structure pursuant to Art. 39 of the se Regulation, and work closely together in the best interests
of the company. This also includes ensuring diversity in terms of the way in which management
positions are filled and the composition of the Supervisory Board, whilst taking into account the
specific situation of the company.
The GfK Group has always set great store by diversity when filling management positions, and this
principle is practiced within the Group. One of the defining features of GfK is that the diversity of
its business is reflected in the composition of its executive bodies. This applies to both the internationality of its managers and to their varied professional qualifications and experience. There is
also a high ratio of women both within the Group and on the Management Board. Approximately
half of GfK’s global workforce are women and three out of six seats on the Management Board of
GfK se are occupied by women. To date, this is unique for a listed company in Germany.
The members of the Supervisory Board who are shareholder representatives are appointed by the
Annual General Meeting, although the Annual General Meeting is not bound by the nominations
of the Supervisory Board. Employee representatives are appointed on the basis of the procedure
stipulated in the employee participation agreement for the company.
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GfK_19
GfK GROUP
The members of the Supervisory Board base their nominations on the requirements which are
crucial for effective monitoring of the company. In terms of the staffing of the Supervisory Board,
the Supervisory Board has therefore agreed the following goals for its composition in respect of
Point 5.4.1 of the Corporate Governance Code:
The Supervisory Board of GfK se shall be composed in such a way that qualified advising and
supervision of the Management Board by the Supervisory Board is guaranteed with the aim of close
cooperation between the executive bodies in the best interests of the company. The candidates
recommended for election to the Supervisory Board shall, on the basis of their knowledge, abilities
and professional experience, be able to perform the duties of a supervisory board member in an
international corporation. Attention should be paid to their personality, integrity, commitment,
professionalism and independence. The Supervisory Board shall be composed in such a way that
its members together have the necessary knowledge, ability and professional experience to duly
perform their tasks, especially in the following areas: finance, personnel, it, internet, market
research, and any other management tasks.
Given the company’s international orientation, it is important to ensure that the Supervisory Board
has a sufficient number of members with many years’ international experience. When electing new
members, the aim is to at least maintain the currently existing proportion of Supervisory Board
members with an international background.
The Supervisory Board shall have a sufficient number of independent members. Significant, nontemporary conflicts of interest, for example due to the holding of executive positions or performing
of consultancy tasks for competitors of GfK se or as a result of a business or personal relationship
with the company or its Management Board, should be avoided. In addition, the members of the
Supervisory Board shall, as hitherto, have sufficient time to perform their tasks, so that they can be
exercised with the required regularity and diligence. The Supervisory Board should also include no
more than two former members of the Management Board. Overall, the aim should be to achieve
a balanced mix between managers who are still active in other companies and individuals who are
no longer working in management. A suitable mix of ages should also be ensured.
When submitting its nominations, the Supervisory Board shall also ensure in particular that there
is an appropriate proportion of women. When screening potential candidates to elect a new member or to fill a position on the Supervisory Board that becomes vacant, qualified women should
be included in the selection process and given due consideration in the nominations. There are
currently three women on the ten-member GfK se Supervisory Board and the aim is to maintain
at least this number when electing new members to the Supervisory Board, provided that suitable
candidates are available.
The standard age limit stipulated by the Supervisory Board in the codes of procedure is taken
into account.
The Supervisory Board will explain its nominations and the preceding search process to the Annual
General Meeting in detail.
20_GfK
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GfK GROUP
—
remuneration report
Remuneration of the Management Board
The remuneration of the members of the Management Board comprises four components: a
fixed element; variable, short-term remuneration (short-term incentive – sti); variable, long-term
remuneration (long-term incentive – lti); and the pension commitment.
The structure of the remuneration system is reviewed regularly by the Supervisory Board in
line with the recommendations of the Personnel Committee. The remuneration is based on the
respective remits of members of the Management Board, their personal performance and that
of the full Management Board. The components of the remuneration that are not performancerelated comprise element and the pension commitment. The performance-related remuneration
consists of earnings which are dependent upon the attainment of predefined annual targets (sti)
as well as predefined long-term targets (lti).
In financial year 2009, the remuneration of the Management Board was reviewed by an independent
external remuneration expert for compliance with the requirements of the Act on the Appropriateness of Management Board Compensation (Vorstag), which came into force on August 5, 2009.
As a result, the Supervisory Board agreed a revised system of variable remuneration elements.
Structure of variable remuneration elements
The short-term variable remuneration (sti) is measured by the attainment of key financial
indicators and non-financial targets.
In order to ensure the continued profitable growth of the GfK Group, the first part of the sti is
linked to the attainment of the key financial indicators of margin and sales growth, whereby the
attainment of these targets is measured at Group and at sector level. When evaluating target
attainment, the two key indicators are not analyzed independently of each other, but rather
predefined combinations of the two key indicators are incentivised. Payment of the bonus
elements resulting from the attainment of the financial targets is also linked to compliance
with a debt limit defined by the Supervisory Board.
In addition to the key financial indicators, the Supervisory Board defines non-financial targets
which contribute to the company’s sustained development. The non-financial targets are partly
the responsibility of the Management Board as a whole and partly the individual responsibility of its respective members. The non-financial targets for 2010 related to the subject areas
of personnel and organizational development (in each case for the Management Board as a
whole), compliance (for the ceo and cfo) and market position (for the coos).
The maximum payout for elements of the variable short-term remuneration is 300 % of the
target bonus, whereby amounts which exceed 200 % of the target bonus must be transferred
to the variable long-term remuneration and are therefore linked to the long-term development
of the company (“clawback”).
The variable long-term remuneration comprises two components. The first part is linked to
the roce (return on capital employed) trend over a period of four years. The bonus curve for
this is derived from the wacc (weighted average cost of capital) and the roce performance of
the best competitors. Payment takes place at the end of the term based on the average roce
performance of the previous four years.
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GfK_21
GfK GROUP
The second part of the long-term remuneration is invested in virtual shares. These shares are
held for at least four years, whereby the impact of the dividends distributed to shareholders
is reproduced besides the share price movement (tsr concept). After the holding period has
expired, the virtual shares can be exercised within two further years. The countervalue of the
virtual shares is paid out in cash.
The maximum payout for both elements of the long-term remuneration is limited to 500 % of
the target bonus. No discretionary powers are envisaged for the variable short-term or longterm remuneration when assessing target attainment.
In accordance with the provisions of the International Financial Reporting Standards (ifrs), the
expense for the Long-Term Incentive Plan (ltip) has to be spread over the term of four years
up to payment of the respective tranche. A shorter time period for distribution of the expense
is then set if it is certain that the contract will not be extended any further. This applied to the
Management Board members Dr. Gérard Hermet and Wilhelm R. Wessels for 2010.
Remuneration of the Management Board
eur ’000
Long-Term
Variable
Total
Fixed
components components Incentive Plan remuneration
Allocated to
pension plan
Pension plan
as at December 31, 2010
(ceo)
598.4
737.5
159.3
1,495.2
552.2
5,812.1
Pamela Knapp
381.7
437.4
100.5
919.6
92.0
106.6
(from September 1, 2010)
123.8
236.4
0.0
360.2
30.4
30.4
Petra Heinlein
400.2
488.1
106.2
994.5
402.7
3,121.2
Dr. Gérard Hermet
(until December 31, 2010)
415.5
660.9
531.2
1.607.6
662.1
4,462.1
Debra A. Pruent
438.3
460.4
100.5
999.2
573.5
1,610.1
Wilhelm R. Wessels
397.1
436.0
242.8
1,075.9
365.6
3,950.6
Remuneration 2010
2,755.0
3,456.7
1,240.5
7,452.2
2,678.5
19,093.1
Remuneration 2009
2,510.7
2,009.9
666.7
5,187.3
3,482.7
18,044.4
Structure of pension commitments
In principle, the pension contracts for Management Board members are, with the exception of
Management Board members Pamela Knapp and Dr. Gerhard Hausruckinger, uniformly structured
as defined benefit plans. After a member has completed three years’ service as a member of the
Management Board (waiting period), the company grants a retirement pension, an early retirement
pension, a disability pension and a widows’/widowers’ and orphans’ pension. The fixed annual
remuneration of the beneficiary, as agreed in the contract of employment, is deemed to be the
pensionable income. Beneficiaries receive a retirement pension when they leave the service of
the company upon reaching the stipulated retirement age. After three years’ service as a member of the Management Board, the annual pension amounts to 30 % of the pensionable income.
22_GfK
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GfK GROUP
This increases by three percentage points for each additional full year of service. The retirement
pension is limited to 60 % of pensionable income. It is granted on leaving the company upon
reaching the age of 62. A reduced, early-retirement pension may be provided at the age of 60. If
pension beneficiaries leave the service of the company before their 62nd birthday due to a partial
or complete reduction in earning capacity, they receive a disability pension for the duration of
the partial or complete reduction in earning capacity. If the reduction in earning capacity still
applies upon reaching the normal retirement age, the pension continues to be paid as a life-long
pension. The disability pension is calculated in the same way as the retirement pension; only
the service years until the beneficiary leaves the company are included in the calculation, which
is based on the pensionable income at the time when membership of the Management Board
ends. In the calculation it is assumed that the beneficiary has been a member of the Management
Board for ten years. If he or she has been a member for more than ten years, the beneficiary’s
disability pension will equal the entitlement acquired up to leaving the company. There is a different arrangement for Management Board member Debra A. Pruent, in whose calculation the
entitlement to a disability pension assumes that she has been a member of the Management
Board for three years. If she is a member for more than three years, her disability pension will
be equal to that acquired up to leaving the company.
The widows’/widowers’ pension amounts to 60 % of the retirement pension or disability pension
last paid; the orphans’ pension amounts to 30 % for full orphans and 15 % for half orphans. After
the commencement of the pension, it is increased annually by two percentage points. The company can grant higher adjustments if the consumer price index shows a higher increase in prices.
Pamela Knapp and Dr. Gerhard Hausruckinger, members of the Management Board who have
been employed by the company since November 2009, as well as all members of the Management
Board who are employed by the company in the future, shall receive retirement benefits in the
form of defined contribution plans instead of defined benefit plans. Entitlement to contributions
shall be accrued upon joining the company. The sum of the benefit shall be based upon the contributions paid. In addition, under the contribution-based system, entitlement to disability pension
and widows’/widowers’ and orphans’ pension payments shall accrue upon commencement of the
employment contract, wherein in the event of entitlement to the benefit prior to the completion of
three years’ service, it shall be assumed that the beneficiary has already served as a member of
the Management Board for three full years.
Three members of the Management Board made share transactions subject to mandatory reporting requirements involving a total of 263,332 shares in the 2010 financial year. As at December
31, 2010, the Management Board held a total of 154,287 shares and 119,998 options for GfK
shares.
No loans or advances were issued to members of the Management Board.
Former members of the management of GfK GmbH, Nuremberg, and of the Management Board
of GfK se, Nuremberg, and their dependents received a total remuneration of eur 0.9 million.
There are provisions of eur 13.7 million for pension obligations to former Management Board
members, their dependents and Managing Directors.
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GfK_23
GfK GROUP
Remuneration of the Supervisory Board
The remuneration of the Supervisory Board is defined in the Articles of Association of GfK se. It
is based on the tasks and responsibility of the members of the Supervisory Board. Article 16 of
the Articles of Association of GfK se sets out the remuneration of the members of the Supervisory
Board as follows:
1. In addition to expenses, members of the Supervisory Board shall receive a fixed remuneration
of eur 12,000.00, payable at the end of the financial year.
2. A sum of eur 1,000.00 shall be granted for attendance at a Supervisory Board meeting.
Remuneration shall be paid for attendance at a maximum of six Supervisory Board meetings.
3. The Chairman of the Supervisory Board shall receive two and a half times the amount of the sums
stipulated in Points 1 and 2. The Deputy Chairman shall receive one and a half times the amount.
4. The remuneration shall increase by eur 10,000.00 for membership of a committee, and by
eur 20,000.00 for the chairing of a committee. Committee remuneration shall be calculated
exclusively on the basis of the respective function on the relevant committee (simple membership or chair), whichever receives the highest remuneration.
5. The company shall compensate every Supervisory Board member for any vat applying to
their remuneration and the reimbursement of expenses.
6. Supervisory Board members who have only held their position for part of the financial year
shall be compensated on a pro rata basis.
Remuneration of the Supervisory Board
eur ’000
2010
95.0
Stefan Pfander (Deputy Chairman)
57.0
38.0
58.0
Stephan Gemkow
37.0
Sandra Hofstetter (since May 26, 2010)
10.2
Stephan Lindeman
18.0
Shani Orchard
28.0
Hauke Stars
37.0
Dieter Wilbois
38.0
Total 2010
416.2
Total 2009
370.3
As at December 31, 2010, the Supervisory Board held a total of 3,762 shares. Members of the
Supervisory Board held no share options.
Details of individual transactions by members of the Supervisory Board and the Management
Board were published on the website in accordance with the German Corporate Governance Code.
The remuneration report forms part of the consolidated financial statements and the Group
Management Report.
24_GfK
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GfK GROUP
—
declaration of the management board and supervisory board pursuant to
section 161 of the german stock corporation act (aktg) in conjunction with
art. 9 para. 1 c) (ii) of the se regulation
Pursuant to Section 161 of the German Stock Corporation Act (AktG) in conjunction with Art. 9
para. 1 c) (ii) of the European Company Statute Regulation (se Regulation), the Management and
Supervisory Boards of a listed se must declare each year the extent to which they have complied and
will continue to comply with the recommendations of the Government Commission of the German
Corporate Governance Code, published by the Germany Ministry of Justice in the official section of
the online German Federal Gazette, and which recommendations have not or will not be complied
with. This declaration must be made available to shareholders at all times.
The Code contains regulations, some of which are binding. In addition to outlining company law
applicable to the se via Art. 9 para. 1 c) (ii) of the se Regulation, it also includes recommendations
from which companies may deviate, although in this case, they are obliged to publish information
on and substantiate such deviations every year. The Code also proposes suggestions, from which
companies may deviate without the necessity for this to be disclosed.
—
declaration of compliance for 2010
The Management and Supervisory Boards of GfK se declare that they have complied with
and will continue to comply with the recommendations of the Government Commission of the
German Corporate Governance Code in the version of June 18, 2009 published by the German
Ministry of Justice on August 5, 2009 in the official section of the online German Federal Gazette
and the recommendations in the version of May 26, 2010 published on July 2, 2010. Only the
following recommendations have not been and will not be applied. Unless otherwise specified,
the cited recommendations form part of the Code, both in the version of June 18, 2009 and in
the version of May 26, 2010:
1) Point 4.2.3 paragraph 4
Point 4.2.3 paragraph 4 of the Code provides that: “In concluding Management Board contracts,
care shall be taken to ensure that the amount of any payments made to a Management Board
member on premature termination of his/her contract without serious cause is limited.”
As part of the conversion to a Societas Europaea in February 2009, which is the legal successor of
GfK ag and the contract party with respect to employment agreements with the Management Board
members, contracts with members of the Management Board were not renegotiated nor have new
contracts been signed. At the date of conversion existing contracts with Management Board members do not provide for a limitation for severance payments (severance payment cap) in the event
of their contracts being terminated prematurely not for cause, however the longest term of these
contracts expires by mid 2012. This recommendation has been and will be complied with when new
contracts are signed with Management Board members, since the date of conversion into an se.
2) Point 5.2 paragraph 2 clause 1
Point 5.2 paragraph 2 clause 1 of the Code provides that: “The Chairman of the Supervisory
Board shall also chair the committees that handle contracts with members of the Management
Board and prepare the Supervisory Board meetings.”
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GfK_25
GfK GROUP
The Personnel Committee is not chaired by the Chairman of the Supervisory Board but by the
Supervisory Board member Dr. Berndt, who is suitably qualified to hold this office due to his
many years’ experience in the field of human resources.
3) Point 5.4.5 (as last amended on May 26, 2010)
Point 5.4.5 of the Code regulates the recommended number of Supervisory Board mandates:
“Every member of the Supervisory Board must take care that he/she has sufficient time to
perform his/her mandate. Members of the Management Board of a listed company shall not
accept more than a total of three Supervisory Board mandates in non-group listed companies
or in supervisory bodies of companies with similar requirements.”
The Supervisory Board member Mr Gemkow performs mandates in other Supervisory Boards
and other comparable supervisory bodies. Most of his mandates are group positions within the
Lufthansa Group. He is also a member in supervisory bodies of three additional commercial
enterprises which are not part of the Lufthansa Group, which we believe may pose similar
requirements as Supervisory Board mandates of listed companies. Mr Gemkow nevertheless
allocates sufficient time to perform his mandates as a member of the GfK se Supervisory Board.
4) Point 5.4.6 paragraph 2
Point 5.4.6 paragraph 2 of the Code regulates the performance-linked and long-term remuneration components of Supervisory Board members
It is the opinion of GfK se that linking the remuneration of the Supervisory Board directly to the
performance of the company or its profits could lead to a conflict of interests and might prejudice
the impartial and objective monitoring and advising of the Management Board.
For the purposes of ensuring that the Supervisory Board’s independence is not affected by the
achievement of short-term profits, the performance-related component of the annual remuneration has therefore been terminated in accordance with the resolution of the Annual General
Meeting on May 20, 2009.
5) Point 7.1.4
Point 7.1.4 of the Code regulates the publication of information concerning other companies
Every year, GfK se publishes a list of participations which gives information on all affiliated and
associated companies and other major participations. The information includes equity stake,
shareholder equity and financial year data.
Information beyond this level concerning the last financial year’s results of companies in which
GfK se holds a not insignificant stake is not made available. Transparency at individual company
level may prove a competitive disadvantage to GfK se.
—
Compliance Officer: Roland Fürst
Tel. + 49 911 395-2527
Fax + 49 911 395-4101
roland.fuerst@gfk.com
http://www.gfk.com/group/investor/corporate_guidelines/corporate_governance/index.en.html
26_GfK
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GfK Shares
GfK GROUP
G f K shares
—
stock exchanges playing catch-up
The incipient recovery in the global economy following the financial and economic crisis and
stabilization in the capital markets accelerated in the past year. While stock markets were still
adversely affected by the debt crisis and the associated currency risks in the first half of 2010, the
central banks’ expansionary money market policy, the sharp improvement in companies’ figures
and strong domestic demand in both industrialized and emerging countries caused rising prices
in the second half of 2010. The leading German index, the dax, ranked among the global winners
with the greatest capital growth, gaining 16 % over the year. Only the New York-based nasdaq
composite did better, rising 18 %. The year’s losers included the Euro Stoxx 50: the leading
European index closed the year 5 % down. Its performance was impaired, in particular, by the
pigs (Portugal, Ireland, Greece and Spain).
Second-tier stocks performed even more strongly than the blue chips in the dax. Over the year
as a whole, the mdax posted growth of 35 %, while the sdax grew by 46 %. Analysts and fund
managers rate the excellent performance of small and mid-caps as evidence of the export strength
of the German economy, which benefited, most notably, from strong demand from emerging
markets in the past year.
GfK share price performance compared with the indices in full year 20101)
38
36
34
32
30
28
26
24
22
20
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1) All values are indexed to the GfK share price, closing prices, in EUR
GfK
dax 30 Performance
sdax Performance
Dow Jones Euro Stoxx Media
—
g f k shares consolidate their position at over eur 30
GfK shares trended upwards from the beginning of the year. The improvement in the economic
situation, which was reflected quarter by quarter in the GfK Group’s order book and income
development, led to considerable interest among buyers and consequently to a marked rise in
the share price. Having started the year at eur 24.40, GfK shares closed the year at eur 37.60,
which represents a gain of 54 %. The breaking of the eur 30 barrier, which was regarded as the
resistance level from April 2010 onwards, led to continuous follow-up purchases from the end of
August. GfK shares reached their annual high of eur 38.30 on the final trading day.
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GfK GROUP
GfK Shares
GfK Shares
Compared with the dax, sdax and Dow Jones euro stoxx media, GfK shares expanded their lead
still further in the period under review, and also performed better than competitors wpp (+ 30 %)
and Aegis (+ 18 %), both uk companies. Only the shares of the French market research company
Ipsos outperformed GfK shares, gaining 68 %.
Highest and lowest value of GfK shares in full year 2010 (in eur)
40
38.30
38
36
34
32.50
32
32.68
32.79
31.82
30
28
29.40
28.80
29.80
29.44
29.66
29.96
30.00
Sept
Oct
Nov
28.00
26.55
24
30.00
28.27
26.90
26
22
29.50
25.55
25.17
Feb
Mar
26.87
26.91
Jun
Jul
25.26
23.80
20
Jan
Highest and lowest share price
Apr
May
Aug
Dec
Monthly closing price
—
over four million shares traded
A glance at the trading volume shows that in the main, foreign institutional investors from the usa,
the uk and France in particular accounted for the most active interest in GfK shares. In total, over
90 % of trading occurred through funds, which do not pursue speculative investment strategies
(non-hedge funds). In the year as a whole, a total of some 4.2 million GfK shares were traded. The
average number of GfK shares traded per day on xetra alone was 15,897; this does not include
off-floor trading of large blocks via the otc market. The exercising of options over the year as a
whole resulted in the creation of 326,727 new GfK shares. At the end of the year, the share capital
of GfK se amounted to eur 151,156,968.76, with 36,274,090 shares eligible for dividend payments.
28_GfK
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GfK Shares
GfK GROUP
—
g f k shares ranked no. 2 in the sdax
GfK was unable to expand its position further among all small and mid-cap listed companies
in Germany. According to the Deutsche Börse ranking, it reached No. 48 (previous year: 47)
in terms of market capitalization in the dax 100, which includes all mdax and sdax companies.
The measurement is based on the market capitalization of the free float. At GfK, this amounted
to eur 534.11 million at the end of the last financial year, while the market value of GfK based
on all shares amounted to eur 1,363.91 million. In terms of shares traded, GfK reached No. 76
(previous year: 72). A different picture emerges if the sdax is taken as the only reference: in terms
of market capitalization, GfK improved from No. 4 in 2009 to No. 2 in 2010. As a result, its index
weighting rose from 4.4 to 4.7.
—
institutional investors increase their holdings
With a stake of 56.4 %, the GfK Association remains the major single shareholder in GfK se. The
reduction in the stake of 0.7 % year-on-year is attributable to GfK managers exercising their
options and the associated creation of 326,727 new GfK shares. The proportion of shares in free
float is now around 43.6 % and is divided as follows: 0.5 % (previous year: 0.9 %) is in the hands
of the Supervisory and Management Boards of GfK se, 18.9 % (previous year: 24.6 %) is held by
private investors and 24.2 % (previous year: 17.5 %) by institutional investors. The proportion of
private investors has therefore shifted in favor of institutional investors. At the end of the reporting
year, the number of institutional investors was 62 (previous year: 60). A glance at the distribution
at country level shows that around 45 % of the GfK shares in free float were in German hands,
with one third held in the usa, followed by the uk and France.
Shareholder structure of GfK se
Shareholder structure (%)
Breakdown of free float by country (%)
UK
13.5
GfK Association
56.4
Free float
43.6
France
6.1
USA
31.5
Other countries
3.2
Management and Supervisory Boards of GfK se
1.0
Germany
43.5
(private investors)1)
Germany
1.2
(institutional investors)
1) Private investors exclusively in Germany
As at: 31.12.2010
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GfK_29
GfK GROUP
GfK Shares
GfK Shares
GfK share key data
German Securities Code
isin (International Securities
Identification Number)
GfK share price performance comparison
2010
From ipo to
31.12.20101)
GfK se
+ 55.8 %
+ 144.0 %
dax
+ 16.1 %
+ 30.5 %
+ 45.8 %
+ 78.5 %
+ 8.2 %
– 32.8 %
587530
DE0005875306
Reuters
GFK.DE
sdax
Bloomberg
GFK GR
Dow Jones Euro Stoxx Media
Datastream
D:GFKX
First Call
GFK.DE
1) Compared with the initial public offering (ipo) of eur 15.41 at the
time of the stock exchange launch on September 23, 1999 (adjusted
by the capital increase from corporate funds)
—
interest from analysts remains high
At the end of 2010, 14 banks were rating GfK shares. According to the German Association of
Investor Relations (dirk), the coverage of sdax companies averages out at eight banks and this
indicates that in the environment of small cap companies, GfK shares are rated by an aboveaverage number of banks. In mid-March 2010, the international bank hsbc resumed rating GfK
in its coverage. At year-end 2010, ten analysts were recommending “buy” for GfK shares, with
three analysts recommending “hold” and one analyst recommending “sell”.
—
substantial agreement at the annual general meeting
At the ordinary Annual General Meeting of GfK se on May 19, 2010, the shareholders of GfK
approved the resolutions proposed by the Supervisory and Management Boards by a majority
of at least 89.7 %. Some 330 shareholders and shareholders’ representatives, representing
around 85.0 % of all shares, participated in the Annual General Meeting. The agenda included
the reappointment of all six shareholders’ representatives to the Supervisory Board. The shareholders also approved a resolution to distribute a dividend of eur 0.30 per no-par share for the
financial year 2009. The agm also granted another mandate for the acquisition and use of GfK’s
own shares. Previously, these mandates ran for a period of 18 months. The shareholders agreed
to the proposal by the management to increase this period to the five years permitted by law.
—
proposed dividend of eur 0.48 per share
At the agm taking place on May 26, 2011, the Supervisory and Management Boards of GfK se will
be proposing a dividend pay-out amounting to eur 0.48 per no-par share for financial year 2010. This
figure is in line with the dividend policy of recent years of achieving a pay-out ratio of approximately
20 %. In relation to the share price of eur 37.60 on December 30, 2010, this proposal corresponds
to a dividend yield of 1.28 % and a total pay-out amounting to eur 17.4 million (previous year: eur
10.8 million).
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GfK Shares
GfK GROUP
GfK share indicators in full year 2010
Unit
2009
2010
High
eur
24.29
38.30
Low
eur
13.67
23.80
Closing price
eur
24.13
37.60
Number
21,745
15,897
Number
35,947,363
36,274,090
eur (million)
867.4
1,363.91
19
24
Average daily volume traded
Number of no-par shares as at Dec 31
Stock market capitalization as at Dec 31
Ranking in sdax
by sales
by market capitalization
Index weighting by market capitalization in sdax
Dividend1)
in %
4
2
4.4
4.7
eur
0.30
0.48
eur (million)
10.8
17.4
Earnings per share
eur
1.42
1.99
Free cash flow per share
eur
2.38
3.43
Total dividend1)
1) Applies to financial year 2010: proposal to the agm on May 26, 2011
—
expanded dialog with the capital market
In addition to the Accounts Press Conference and the agm in the year under review, GfK was
present at 15 international investor conferences in Germany, the uk, France and the usa, two
dvfa Analysts’ conferences in Germany, 14 road shows in Germany, the uk, France, Austria,
Switzerland, Canada and the usa, one sales-force briefing, nine conference calls and around
390 one-to-one meetings with analysts and fund and sales managers. GfK also held its Capital
Market Day for the third time in January 2010. A total of 34 international analysts and institutional
investors took the opportunity of speaking to members of the GfK Management Board. GfK also
heightened its profile in cooperation with associations for the protection of investors and stock
market initiatives with a presence at ten share forums held throughout Germany and attended
by private investors. It also gave a lecture at a university of business studies and economics.
—
excellence of investor relations
At the awards ceremony for the German Investor Relations Prize 2010, which rates the best European financial market communication, GfK se improved its ranking significantly within the sdax
companies, moving from No. 9 in 2009 to No. 2 in 2010. In the personal rankings, GfK’s Global
Head of Corporate Communications ranked third, as he did last year. The awards were based on the
comments of more than 800 fund managers and analysts from 19 European countries, who work for
around 300 fund companies, banks, brokers and insurance companies. The assessments included
criteria such as transparency and precision in reporting, reliability of forecasts and knowledge of
the industry. The competition is arranged by Wirtschaftswoche, Thomson Reuters and the German
Association of Investor Relations (dirk).
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GfK_31
QR codes
Most mobile phones and smartphones
have a camera and can also decipher
QR codes with the appropriate software.
We have included links in the form
of QR codes in the Special section of the
GfK report. These provide access
to web content that is optimized for
mobile internet browsers (for example
provided by BlackBerry, iPhones or
Nokia). If you do not have a QR reader
installed on your mobile phone, you
can use your phone to visit the website
www.mobile-barcodes.com
and download the necessary software
for your mobile phone.
This is how it works:
1 / Start the QR reader and point the
camera towards the code
2 / Take a photograph of the code
3 / Confirm the link
4 / The website subsequently appears
in the browser
32_GfK
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GfK Special
GfK SPECIAL: DIGITAL
Digital
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GfK_33
SECTOR: Custom Research
Online and
cross-media
advertising under
the microscope:
The G f K Media
Efficiency Panel
34_GfK
< < back
GfK household panel
The GfK Media Efficiency Panel developed by GfK Panel Services is enabling advertisers
to discover the optimal media mix and base their advertising decisions on reliable data.
This innovative panel has achieved considerable success at an impressive pace.
How does online advertising interact with ad campaigns in traditional media such as
tv, cinema and print? How high is the return on investment of a particular cross-media
campaign? How much additional sales revenue is generated by adding certain media
channels to the mix? What is the optimum level of exposure per week? What level of
reach do the individual media channels achieve? Is the social media environment suited
to a particular advertising message? Does exposure to a tv advertising campaign prompt
an individual to visit a homepage?
Participants:
30,000 households report on purchases of
fast moving consumer goods
20,000 households report on purchases of
durable consumer goods
Today, in this age of the internet and a wide variety of “old” and “new” media, these
are the kinds of questions that advertisers are asking – and the GfK Media Efficiency
Panel has the answers.
In addition, GfK Panel Services offers advertisers and marketers reliable data that allows
the sales impact of their online campaigns to be analyzed in the cross-media environment.
Industry experts have praised the panel as a globally unique single-source approach
to the integrated monitoring of exposure to ad campaigns in different media and the
purchase of fast moving consumer goods. In mid-2010, the former “Web Efficiency
Panel” became the “GfK Media Efficiency Panel”. The name was changed to reflect
the broader range of media being monitored: rather than simply observing the effects
of online advertising alone, the panel now also focuses on the impact of web-based ad
campaigns in conjunction with traditional tv commercials.
—
Precise measurement of online usage and purchasing behavior using a browser plug-in
It is worth taking a closer look at the methodology on which this panel is based. In
Germany, 30,000 households report regularly to GfK on their purchases of fast moving
consumer goods and 20,000 households report on which durable consumer goods they
buy. Both panels are representative of all private households in Germany. A selection
of 15,000 households, representing private internet users, take part in the GfK Media
Efficiency Panel. These samples allow relevant conclusions to be drawn regarding purchase behavior and media consumption.
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GfK_35
The GfK Media Efficiency Panel
“With GfK’s Media Efficiency Panel,
we can precisely determine the effect
of different marketing tools. We are
able to tell a company how it can
increase reach by 3 %, 4 % or even
5 % within a particular target group,
Before being selected, participants in the online households were asked in-depth questions about their media consumption habits. This provides reliable data showing the extent
to which online users also access established mass media such as radio, tv, newspapers
and magazines.
In order to measure online usage and the effect of cross-media campaigns on online
searches and purchases in a targeted way, a plug-in is installed in the web browser
of participants with their agreement. This records the accessed websites, entries in
search machines and product research conducted on the websites of manufacturers
and online shops, as well as product searches and completed purchases, and transmits
the data to the GfK server.
for example. Or we might conclude
that a company could potentially
reduce its marketing expenditure
by 10 % or more by optimizing its
marketing and media mix.
”
Dr. Stefan Tweraser,
Country Director of Google Germany GmbH
An important innovation in 2010 was the linking of data and findings from this web panel
with electronic monitoring of exposure to tv advertising. For this purpose, GfK Panel
Services equipped 5,500 households in the GfK Media Efficiency Panel with modified
mobile phones that record exposure to tv advertising through sound recognition. Each
individual activates the GfK-modified mobile phone when they are watching tv, and
the device is able to recognize from the sound which advertisement is being viewed.
The recorded data is then transmitted via the mobile network. Using extremely precise
statistical transmission information provided by Thomson Media Control, GfK can then
determine which tv program the panel participant was watching when he or she was
exposed to a particular advertisement. It is therefore possible to ascertain precisely which
advertising campaign a particular panel participant has viewed at what time.
Exposure to advertising campaigns on Germany’s eleven largest ad-carrying tv stations,
which account for over 90 % of tv advertising, is measured in this way. The aim of the
Media Efficiency Panel is to analyze the sales impact of tv and online ad campaigns.
—
Investigating cross-media effects together with Google and Coca-Cola
One example of this kind of analysis, which investigates the effect of cross-media ad
campaigns, is a joint survey by GfK, Google and Coca-Cola. The starting point for this
was the Coca-Cola Christmas campaign, which last year featured tv, radio and movie
theater advertising spots, billboards and print ads, as well as online banners, video ads
and Google advertising. The GfK Media Efficiency Panel was able to precisely record the
exposure to these advertising messages and the actual purchase behavior of consumers.
The findings of the survey clearly show that the effectiveness of advertising is considerably
increased by the interplay of the different media. The combined impact of tv advertising
and video ads shown on YouTube had the most positive impact on sales in the CocaCola Christmas campaign: among consumers who saw the advertising message on both
tv and YouTube within the space of one week, the purchase rate increased by 97 %.
According to Coca-Cola Germany, the findings show that online marketing can play an
effective role in a media mix. Another particularly interesting feature of the survey is
that it allowed cross-media monitoring to be carried out for the first time; this showed
how the individual types of media interact and have an effect on sales in the short term.
The 85 surveys that GfK has conducted with the GfK Media Efficiency Panel for numerous companies give a detailed picture of the effect of online advertising. It is clear
that internet ad campaigns can be as successful as tv advertising and that they also
increase the effectiveness of the latter. The great advantage for companies is that
around 30 % of all online advertising exposure is exclusive and these users cannot be
reached via the medium of tv. Online advertising does not necessarily appeal to new
buyers, but tends to result in more intensive consumption. In order to be as effective
as possible, ads should be stimulating and placed in a thematically appropriate setting.
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The GfK Media Efficiency Panel has also shown that online advertising is as effective
among the over-50s as it is with younger target groups – something that is not common
knowledge. Nevertheless, companies should not advertise exclusively on the internet,
because cross-media campaigns still record the greatest success.
—
Expansion to other industries: comprehensive analysis of banking products
An important strategic goal achieved by GfK Panel Services in 2010 was expanding
the GfK Media Efficiency Panel to include surveys and analysis of other industries and
goods – for example, electronic goods and textiles, as well as services such as banking
products.
In another survey conducted in 2010 in close cooperation with Google and Deutsche
Bank, GfK analyzed the importance of the internet in researching financial products.
The results were impressive: over 60 % of internet users visit websites with a financial
focus and 20 % enter finance-related search terms. The survey showed that the majority
of German banking customers use online research to help them make their financial
decisions.
Subsequently, 11 % of internet users also use the internet to acquire the desired financial
product online. However, for the majority of customers the “ropo effect” comes into
play: research online, purchase offline. In total, 49 % of Deutsche Bank’s new business
is obtained as a result of customers carrying out online research in one form or another.
Coca-Cola Christmas campaign
97 %
increase in purchase rate
as a result of the interplay
between tv spots and
YouTube video ads
Another finding of the survey was that search engines are the most influential independent information source. Google is used by just over a third of all customers who
carry out online research prior to signing a contract – no other independent information
source has a higher reach. Google users also research more intensively, visiting twice
as many domains as other surfers.
When they first start their online research, customers tend to focus on brands and banks
that are already known to them: most users go directly to the websites of banks and
other information sources with which they are already familiar. The majority of search
entries also include brand names. Nevertheless, the survey found that customers also
frequently conduct research that is not focused on familiar brands before making final
product selections.
—
GfK WebValue records user structure and dwell time on internet offers
The panel is principally focused on the interaction of online media with other media.
But the data obtained via the browser plug-in also allows further analysis to be carried
out. For example, in September 2010 GfK Panel Services conducted an investigation
of dwell times and user preferences on the internet. They found that approximately
two-thirds of the population now has online access. Individual surfers spend particularly
lengthy periods on gaming websites and social networks. The eBay auction portal was
visited by around 40 % of all German internet users in July 2010, and each spent an
average of just over two hours on the site during the month, which corresponds to
a total usage time of over 38 million hours in Germany. In terms of reach, eBay was
therefore significantly ahead of other websites in July, while Facebook was in second
place: total usage time was around 33 million hours and individual members of the
38_GfK
< < back
social network spent an average of almost three hours on the website in the month.
The Google search engine ranked third, with a total of approximately 30 million hours;
although the monthly average dwell time was just one hour, around three-quarters of
all German internet surfers used Google’s services.
"The right
media mix is
essential !"
>>
Google’s view of the Media
Efficiency Panel
These are just a few striking examples of the data recorded by GfK WebValue which is
made available to GfK clients. The research identifies the reaches of more than 20,000
internet domains and enables detailed analysis of more than 3,000 internet domains
on a monthly, quarterly and half-yearly basis. The major benefit is that precise profiles
of the user structure can be identified for individual online offers: age, income, size of
residence or the websites that the majority of users normally visit. This information
is available at the click of a mouse, and allows comparison with competitor websites.
—
Outlook: what’s in store for 2011?
As already mentioned, the strategic focus of GfK Panel Services is on expanding the GfK
Media Efficiency Panel to include further industries and goods, and also on obtaining
more precise measurements in other media. A test for the measurement of mobile
internet usage will be conducted in 2011.
There are also plans to rapidly develop the GfK Media Efficiency Panel into a panEuropean tool. It is already available in the uk and the Netherlands as well as in
Germany, and expansion to include further countries is planned. The GfK Media
Efficiency Panel proves once again that GfK has its finger on the pulse – and its
clients are reaping the benefits.
/.
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GfK_39
Dr. Stefan Tweraser, Google Germany GmbH, Country Director Germany
interview
(?) How does Google use the findings generated by
the Media Efficiency Panel to optimize the media
efficiency of advertisers?
(!) Advertisers – and not only those included in our
own product portfolio – often ask us about marketing
strategies. They have confidence in us and regard
Google as a “trusted advisor” who can provide them
with valuable advice. The online sphere is still a relatively new environment for many entrepreneurs and
managers. Rupert Murdoch hit the nail on the head
when he said that they are “digital immigrants” who
did not grow up with the internet.
With GfK’s Media Efficiency Panel, we can precisely
determine the effect of different marketing tools.
Supported by hard facts, we are able to tell a company how it can increase reach by 3 %, 4 % or even
40_GfK
< < back
5 % within a particular target group, for example.
Or we might conclude that a company could potentially reduce its marketing expenditure by 10 % or
more by optimizing its marketing and media mix. Our
clients want to receive this advice and apply it beyond
their search-related advertising, and the GfK Media
Efficiency Panel allows us to provide this service.
(?) One finding of the survey is that search engine
marketing commonly generates the highest return on
investment. Why do you think this is? And what support does Google provide to its clients in this area?
(!) The perfect time to bring a consumer and a provider together is, of course, when a specific search
term has been entered in the Google search engine.
In this case, the accuracy of the advertisement reaching its target is 100 %. Costs are only incurred when
First name
Stefan
Surname
Dr. Tweraser
Location
Hamburg
Favorite
website
www.google.de
Favorite social
media network
YouTube
Please enter some personal details:
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GfK_41
the user actually clicks on the ad and consequently accesses the
advertiser’s website. Google’s AdWords is a unique product in
the advertising world.
We support our advertising clients in a variety of ways. First,
with the GfK Media Efficiency Panel, we help them to determine
the importance of online advertising in their media mix. Second,
we are then able to ascertain the optimal proportion of search
advertising within overall online advertising, which includes
video and display ads. Third, we support clients in devising
optimal strategies for this field, helping them to select keywords
and optimize their own advertising activities – this is one of
AdWords’ essential elements.
(?) A study conducted by Google, Deutsche Bank and GfK found
that many banking customers carry out extensive online research
before signing a contract. What feedback have you received from
the market about this and has Google drawn any conclusions for
its own services?
(!) It was certainly a very interesting study. Together with
Deutsche Bank and GfK, we investigated the relationship
between research and online or offline purchasing. Bank
branches are still the most important sales channel for banking
products and this will not be changing in the foreseeable future,
because these are products for which customers require extensive consultation. However, 11 % of all banking products were
purchased online in 2009 and the internet played a part in the
research process for 60 % of all products. Banks should therefore not underestimate the support function of search engine
marketing, as customers often turn to the internet to obtain
information before they visit their high street branch. Banks
must also become even more competent in their advisory services,
because customers who go to the branch are already very well
informed. In addition, individuals who have acquired information
over the internet beforehand are prepared to spend more money
than other customers. These findings are also reflected in the
travel and mobile communications segments, where we have
conducted similar surveys in collaboration with GfK.
We have been able to draw two conclusions from these studies. On the one hand we are considering how we can strengthen
the relationship between online and offline in the future. For
example, in the usa we are currently experimenting with online
coupons in order to optimize the transfer between the internet
and stores. On the other hand, our advertising clients are facing the same task: how can they successfully attract someone
who has been researching online to their particular store and
avoid losing out to a competitor? This “ropo effect” – research
online, purchase offline – will become increasingly important
both for us and our clients in future.
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"TV advertising
and online
searches go
Hand in Hand."."
(?) From Google’s point of view, why is the cross-media approach
more effective than a single campaign on tv?
(!) It is very rare for a company to concentrate exclusively on a tv
campaign – and for good reason. The key factor is that there are
now target groups which are barely reached through television
or other traditional forms of media. For example, 14 to 29 yearolds frequently use the internet and watch very little television.
In addition, target groups that are reached by tv are exposed to
a vast array of advertising messages and advertising retention is
correspondingly poor. In today’s world, nobody memorizes telephone numbers as they only have to look in their mobile phone
contacts whenever they need a number. Google serves a similar
function: an internet user may vaguely remember an ad and will
google it. We have discovered that there is a strong correlation
between traditional tv and print advertising on the one hand
and a subsequent increase in search requests on the other. tv
advertising and online research using search engines go hand in
hand. The wide range of tv, print and online display advertising
provides a strong stimulus, with which search engine advertising
can then engage.
(?) How important is YouTube for addressing these target groups
or increasing a campaign’s reach?
(!) YouTube is a real phenomenon. It is one of the fastest growing websites in the world, and this includes Germany. More
than 35 hours of new content are uploaded to YouTube every
single minute. This makes it an extremely attractive portal for
internet users who are searching for the latest content. And
of course, advertisers can also exploit the site’s function as a
source of information and entertainment. Advertising messages
transmitted via this channel perfectly complement other multimedia campaigns, particularly where the previously mentioned
younger target group is concerned, as this group is rarely
reached by tv advertising.
(!) It perhaps makes sense to respond to the second question
first. I always suggest that opponents should actually try using
Street View. In all the investigations we have carried out, we have
discovered that the level of criticism significantly declines once
people have experienced the tool for themselves. Let’s assume
you want to book a holiday and take a look on Google Maps. You
see that there is a road between the hotel and the beach, but you
do not know how heavy the road traffic will be. With Street View,
you can see whether it is a small road with a zebra crossing, or
a four-lane road that has a crash barrier in the middle. This tool
allows internet users to picture an area very quickly, whether
they are looking at a holiday destination or flat hunting. Street
View is an ideal addition to Google Maps, and the use of Google
Maps has increased by 20 % in every country where we have
launched Street View.
To return to the first part of your question: we don’t have a separate marketing strategy for Street View because it is simply part
of Google Maps and enhances this service. And we already have
a variety of advertising options for this tool. Small and medium
sized companies in particular, but also large corporations with
many subsidiaries or branches, benefit from the highly localized
nature of advertising on Google Maps.
(?) Online expenditure in Germany is still relatively low in comparison to the usa or the uk. Do you anticipate a change in this trend?
(!) We are currently seeing extremely rapid growth in the entire
field of online advertising, which includes search engine marketing. Although Germans in general and German companies
are analytical and number-driven in their decision-making, they
are initially cautious when it comes to exploring new strategies.
However, an increasing number have now realized that the field
of online advertising has proved its worth and are consequently
strengthening the demand for such products. In Germany, we
are proud to have some real trend drivers, including companies such as otto, which are generating more sales online
than offline. Overall, I think we still have some major growth
potential to exploit.
the expansion of the panel, in order to make it more stable and
improve the data quality. Secondly, we should aim to monitor
other media more intensively, particularly those where consumption is currently still surveyed with questionnaires. Finally,
we could begin to think about expanding the panel to include
mobile internet usage, because this area will certainly be a
significant marketing driver in the coming years. Of course it
is highly complex to record mobile internet use in a household
panel. One issue is the fact that there are often several mobile
end devices being used in each household and potentially even
more than one per person.
(?) What key features define the advertising and marketing
concept of Google Street View? How do you respond to critics
of this tool?
(?) What digital trends do you predict for the next three years
and how is Google preparing for these?
(!) The “search” segment will not only become more important
in future, but will also continue to be extremely active. We currently register more than one billion searches per day and this
area is very dynamic. We know that approximately every 90
days, a third of all Google search requests are new searches. In
addition, search terms comprising three, four or more words are
becoming more common than one-word searches.
Social networking is also booming at present, and many of
our products such as Google Mail and YouTube include social
features. People want to communicate with each other and the
social aspect will therefore experience high growth rates over
the next few years. We have to find the right balance between
communication and advertising in collaboration with our clients
– and this balance must also be accepted by users.
A further area is online videos, which will complement tv and
possibly even replace it in some fields. Accordingly, companies
will need to develop advertising strategies for this medium.
The final point I would like to make is about mobile internet use.
This segment is recording more rapid and dynamic growth than
stationary internet usage ever did. In fact, internet use has jumped
straight to mobile in some regions of the world, with broadband
internet being entirely omitted. Regardless of whether that intermediate step is taken, mobile internet will become a key area of
concentration for us in the next few years.
/.
(?) How can GfK use the GfK Media Efficiency Panel, for example
to help make online advertising generally more transparent and
strategic in future?
(!) In my opinion, the GfK Media Efficiency Panel is a major
step forwards. There are possibly three areas where we can
work together to make the tool even better. The first relates to
>>
Dr. Stefan Tweraser:
“Why is cross-media so effective?”
forward > >
GfK_43
SECTOR: Media
tv sets
on-demand tv
recorded tv on pvr
radio via tv
games consoles
dvd s
radio
emails
video clips
recorded tv on dvd/vhs
instant messaging
social networks
tv/movies on demand or live
live/on-demand radio
games online
streamed music
phone calls/video calls
movies/videos/dvd s on computer
audio files on computer
other forms of computer use
music on mobile phone
books
radio on mobile phone
video clips via mobile phone
podcasts
streamed music via mobile phone
magazines
handheld devices: audio files
handheld devices: radio
The 45 media activities
computer games
text messages/sms
phone calls on mobile phone
email via mobile phone
social networks on mobile phone
portable devices: computer games
< < back
landline telephone calls
movies/videos on mobile phone
instant messaging
44_GfK
internet usage
handheld devices: movies
internet via mobile phone
live radio via mobile phone
newspapers
handheld devices: dvd s
handheld devices: video clips
Digital day
SURVEY: Digital Day
Our day-to-day life is governed by the media. We are exposed to media influences from
the minute we wake up to the minute we go to bed. GfK nop Media has now produced
a study for Ofcom, the independent British regulatory authority for the media industry,
investigating the influence that digital media have on the British population and how
consumers use different media during the day. It is, to date, the most detailed study
of its kind.
45
different media activities
Ah, the good old days, when each household had a radio as large as a tea chest. Some
also had a tv, which was just as large and heavy but only showed a few programs in
black and white. And a number of trendsetters even had a telephone, which was usually
fixed to the wall and enabled conversations to be held with people out there in the big
wide world. The amount of available media was limited. Then came the gramophone
record, offering an alternative to the radio, and allowing music to be freely chosen
depending on the occasion. A great deal has changed since then.
were analyzed by
GfK nop Media
In 1967, Canadian communications theorist Herbert Marshall McLuhan published
a bestselling book. The final title was actually the product of a typesetter’s mistake:
originally the book was to have been called “The Medium is the Message” but it came
back from the typesetter as “The Medium is the Massage”. McLuhan is reported to have
exclaimed: “Leave it alone! It’s great, and right on target!” Fast-forwarding to 2010, it
appears that the professor’s little joke was actually quite prescient.
GfK nop Media had to analyze 45 types of media usage in order to investigate the
“digital day” of the British population. Guy Holcroft, Research Director at GfK nop
Media, described the challenge of the “Digital Day” survey as follows: “It is the most
exceptional project I have ever been involved in. The analysis is not yet complete,
and I think it will continue for some time to come.” At the same time, he observed
that “old” research methods have by no means been consigned to the scrap heap of
history. Take, for example, the seven-day notebook that participants received prior to
the start of the survey. The advantage of this tool is that all the data is available in one
medium, is simple to handle and can be easily accessed by the participants. Online
and telephone interviews lasting 20 minutes at a time were also conducted on a daily
basis over seven days.
forward > >
GfK_45
Together these processes enabled reliable data to be collected for analysis, which would
not have been the case using only a diary approach without the daily interview. Despite
daily interviews being conducted via online flash templates, or by telephone, accumulating the 7,000 digital days and more than 100,000 instances of media consumption
was still a major task for the respondents as well as for GfK. Firstly, participants had to
remember the length of time for which they had used a particular medium. Secondly,
the “multitasking” factor played a role: did participants use just one medium or several
at the same time? And how much attention were they paying to the medium in question?
Here too, McLuhan showed considerable foresight: in his 1964 work “Understanding
Media”, he already differentiated between “hot” and “cool” media. For example, he
viewed film as a hot medium, whereas tv was cool, and so were comics. In short:
McLuhan categorized all forms of media which require more attention from the viewer
as cool, whereas those that stimulate the senses and provide intense bursts of information were defined as hot. It was left to GfK nop Media to analyze in its report how participants behave when using gaming, mobile internet or text-based messaging services.
46_GfK
< < back
One thing that is perhaps surprising about GfK nop Media’s survey is that normal tv
continues to occupy first place in the rankings – in terms of both daily reach and media
usage spread over the week as a whole. Fixed network telephony, which is ranked in a
modest fifth place in daily reporting, climbs up to second place with a reach of almost
80 % in the weekly average figures.
Other surprising fi ndings: just 10 %
of users are responsible for generating
more than half of the total volume of
emails and mobile messaging. There
are similar results for mobile internet
usage via iPhones, Blackberrys, etc.:
only 5 % of users are responsible for
80 % of transmitted data.
The following measurements were made during the survey: the average person sleeps
for around eight hours, which represents 30 % of a 24-hour day. Of the hours spent
awake, he or she will spend 45 % of the time using media or telecommunications.
However, the average user crams the equivalent of nine hours of media usage into these
seven hours of media-based activity. By multitasking, he or she manages to use several
forms of media at the same time for 90 minutes a day. In other words, the equivalent
of over three hours of media usage takes place within 83 minutes, which means that an
average of 2.25 forms of media are being used at the same time.
As might be expected, young people lead the way when it comes to media consumption.
Whereas the average amount of time spent using media every day in England is 8.48
hours, the 16 – 24 age group spends 9.32 hours and 25 – 44 year-olds are not far behind,
with 9.24 hours. Only in the 55 + age group does the time spent on media consumption
fall considerably to an average of 7.47 hours. However, these figures only apply if the time
spent multitasking is not taken into account, because while the younger generation pack
around two-and-a-half minutes of media consumption into each of their 116 multimedia
minutes, the 55 + age group is more restrained, only spending 49 minutes actively using
a maximum of two forms of media at the same time. Social networks are now used by
25 % of the older generation, while over 40 % of young people aged between 12 and 15
are active on these sites.
To sum up: tv is still king among the different forms of media and communications, even
if sending emails ranks very highly in terms of reach, stated importance and attention
paid. More than half of our waking hours are spent using media of one kind or another.
The younger the user, the higher the proportion of media consumption is attributable
to computers and smartphones. While the socialization of the older generation means
they continue to favor conventional media and still consume print media as a matter of
course, the younger generation is already largely digitized. Mobile gadgets that allow
them to access media while on the move also promote a form of media consumption
that differs markedly from the 55 + generation. Were Marshall McLuhan alive today, he
might be gratified to see his differentiation between cool and hot media being borne
out by the younger generation.
/.
forward > >
GfK_47
James Thickett, Director of Market Research and Business Intelligence at Ofcom
48_GfK
< < back
First name
James
Surname
Thickett
Location
London
Favorite
website
www.bbc.co.uk
Favorite
social media
network
Linkedin
interview
(!) Ofcom’s role is to make communications markets work for
consumers, so our job is to make sure that consumers have the
best access and are able to engage with communications markets
across the uk.
(?) Media and communications are the most important icons in
everyday 21st century life. What role does Ofcom play in that
wide field?
(!) Ofcom’s role is to oversee the operation of media and communications in the uk. We make sure that consumers have access
to these markets, that the markets are competitive, and that
the players who are operating in them are offering fair deals to
consumers. We also make sure that consumers are protected
when engaging with these markets.
(?) In the report by GfK and nop Media, we analyzed more than
45 different kinds of media. How does Ofcom deal with this
variety of media in terms of regulation?
(!) Well, it gets more complicated every year. But we have basic
duties to regulate television, radio and the telecoms markets – fixed
and mobile telecoms. And of course, the broadband market. But
these markets are splintering; there are a lot of different markets,
such as mobile broadband for instance, or internet television or
digital radio. We need to keep abreast of market developments, and
we do that through research and understanding our consumers.
(?) Television seems to still be number one among the users.
Will it stay that way?
(!) There is no reason to say it won’t stay that way, because television has adapted to the new environment very well. In the last
five years we’ve seen the emergence of flat screen tvs and high
definition television, and personal video recorders are now available
across most of Europe. And in the uk and many other countries,
more people are watching television than ever before. We will continue to experience a lot of innovation in television in the future.
The next big thing will be video on demand and internet tv, which
has been available in some countries, like France or Japan, for quite
a while, and which is coming to the uk in the next couple of years.
(?) Let’s move on to another form of media. Radio is on the decline.
Do you know the reason for this?
(!) Well, radio is not necessarily on the decline. There are as
many people listening to radio as there ever were, but they’re
not listening as much. The reason for that is that radio is competing with a host of other media – more so than television – and
particularly for advertising revenues. Advertising is attempting
to spend money on the internet rather than on radio, and that
reduces the revenue of commercial radio providers across most
major countries. So, radio is struggling to make profits more
than other sectors.
(?) How would you describe Ofcom in a single sentence?
(?) The role of Ofcom is becoming more and more multifaceted.
How do you cope with that challenge?
(!) We cope by trying to understand the technologies in the market
place and looking ahead to see how things are developing. And we
do that by talking to experts and to the big organizations that we
regulate. But also by conducting research and consistently engaging with consumers and commissioning consumer research, such
as the research with GfK on the “Digital Day”, which helps us
understand how consumers are behaving, what they need and
what we think will be the next big thing.
(?) The traditional forms of media such as daily newspapers and
magazines seem to be outdated – or are the companies who run
them not reacting to the digital revolution appropriately? Do you
think that printed matter will survive?
(!) I see no reason why printed matter won’t survive. We haven’t
seen any big newspaper closures in the uk for a long time. The
regional newspaper sector, although it is losing money to the internet, is still healthy, and we are seeing a lot of innovation in the print
market, for instance Metro, which is very successful. In the book
world we are seeing publishers responding far more pragmatically
to new technology, such as the Kindle and the iPad, than the record
industry did. And I think many companies are learning the lessons
of the record industry and embracing digital technology.
(?) Aside from the print media we hear reports about social networks on an almost daily basis. Is that the medium we have to
be afraid of?
(!) Not at all, because it’s a medium that consumers are embracing. It’s also a very innovative sector, and it’s shifting and changing all the time. But it’s pretty much being led by consumers and
what they want, and strives to make life easier for them. Facebook, for example, is launching messaging services and email as
a response to consumers wanting all their communications in one
place. So, it’s a very dynamic and fast moving sector. It’s far too
early to say that is a bad thing.
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GfK_49
(?) Young versus old. How do young and old users differ in terms
of media consumption?
"People will
change the
way they use
technology
depending on
their different
life stages."."
(?) Digital versus analog. The digital virtual world seems to be
gradually taking over most of our communication activities. Will
there be enough revenues for all the companies?
(!) I think there is room for both. And we are seeing this in the
newspaper industry, because people still buy newspapers in large
quantities. Increasing numbers of people are reading their news
online. And the newspaper industry is trying to find different
revenue models to make the online world work as well as the
analog world. We are seeing it in radio too, where many countries
are switching or have analog and digital running side by side.
There are different models for different parts of the market place.
But there will always be people who want to read a newspaper or
read a book. So the analog world won’t be disappearing just yet.
(?) Are consumers following this example or is the media landscape displaying more of a variety of user behavior?
(!) There is a small group of consumers who are ahead of the
game. We call them “early adopters”, and they would normally
define behavior patterns for other consumers. It’s a mixture of
early adopters embracing new ways of behaving and organizations
creating the technology to meet those needs that is driving all this
innovation and activity in the market place.
(!) Oh, we are seeing some very interesting trends here, because
the generation that grew up with the internet is now entering their
early twenties. And we are finding that, for instance, people on
Facebook in their twenties and thirties have very different ways
of engaging with technology than the teenagers. That is what
you might call a “life stage effect”. People aren’t taking habits
with them throughout their lives; they are changing their habits
as they get older. And I’ll give you an example: email becomes
more popular as people get older. Even the people who grew up
with instant messaging are adapting to email as they get older,
because it’s more appropriate for them. And this is very interesting, because what it is saying is that people will change the way
they use technology depending on their different life stages.
(?) Tradition versus lifestyle. Does social networking go hand in
hand with a certain lifestyle? If so, why do traditional users keep
their hands off it?
(!) Social networking is now a mainstream activity. 60 % of
people in the uk have access to social networks on a regular
basis. And it is not just the young. We are seeing high levels of
users among those aged between 30 and 40. It’s only the very old
who haven’t really started to engage with this, because they don’t
really use the internet. So, I would say that social networking is
becoming a mainstream activity. It’s not just something for early
adopters or the young.
(?) We spend more than half of our waking hours communicating. Is that the trend for the next decade or what do you expect
for the future?
(!) I see it continuing in this way. What we are finding is that
people are becoming more adept at using different devices and
performing different tasks at the same time. In the old days
somebody would maybe watch tv and read a newspaper at the
same time. But now we are in a world where people watch tv,
surf the internet, send texts, and perhaps look at their emails all
at the same time. And we found that young people in particular
cram nine hours of media and communications activity into just
six hours of time. We think this is a skill that they will take on
into their later life.
/.
>>
James Thickett: “Digital versus analog?“
50_GfK
< < back
SECTOR: Media
LOADING: Digital Day
forward > >
GfK_51
In
discussion
with two
survey
participants
(?) Nowadays media is a major aspect of our lives. Can you
describe an average media day in your everyday life?
(!) When I get up in the morning, I use my phone to check the
time. And then I need the laptop to check emails. If I have time,
or if I have the day off, I check Facebook. I then watch song
videos from friends when they share them – I do that on YouTube,
using my laptop. I think those are the two things that I mostly
use over the day. For now, I don’t have a tv. I do have a radio,
but I don’t use that.
First name
Jing
Surname
Ge
Location
London
Favorite
website
www.renren.com
Favorite
social media
network
renren
Jing Ge, aged 24
(?) And what is your favorite type of media or form of communication?
(!) I think for me, it’s my phone. I use it to text my friends. My
latest acquisition is a phone with free Skype. So I use that to talk
to my friends in my country, which is quite good. The phone is
my means of communicating with my friends.
(?) What is your main purpose for using media? Communication,
entertainment, information or fun?
(!) I think it’s communication first and fun second. Because first
of all you contact your friends, and then you probably have some
time to check websites and to read up on your personal interests… Funny stories, funny videos, and sometimes movies as
well.
(?) If you look back about five years, what has changed most
dramatically between then and now in terms of using media?
(!) Five years ago I was still at college, and at that time I didn’t
have my own laptop. So I used the mobile phone most of the
time, and also the landline. But now I have my own laptop, and
I use that to communicate with the rest of the world. So, I think
the laptop is the biggest change for me.
/.
52_GfK
< < back
>>
Jing Ge: “Twitter or Facebook?“
Dermot
Surname
Hughes
Location
London
Favorite
website
www.bbc.co.uk
Favorite
social media
network
Facebook
First name
Dermot Hughes, aged 52
(?) Nowadays media is a major aspect of our lives. Can you
describe an average media day in your everyday life?
(!) Yes, I use every type of media that I know. When I wake up,
I turn on the radio, and I listen to it while I’m getting ready for
work and having breakfast. Sometimes I might even turn it on in
the car as I’m heading to the station. Occasionally I look at the
newspaper on the train. Then I get to work and turn the pc on to
look at emails. I often use the pc to do my work, and then I take
care of my management duties in the building. Perhaps I might
read the news on the internet. Then when I get home, I probably
watch the news on the tv and maybe some tv programs before
going to bed.
(?) And what is your favorite type of media or form of communication?
(!) The tv. But in terms of communicating I prefer to use email
and voicemail and the landline.
(?) What is your main purpose for using media? Communication,
entertainment, information or fun?
(!) Well again, it depends on the type of media, but I prefer to
watch tv for entertainment and for information. I use email more
than voicemail, for example, to communicate. And I pick up the
phone when I need to make urgent contact.
(?) If you look back about five years, what has changed most
dramatically between then and now in terms of using media?
(!) I think that for mobile phones and email, the accessibility is
better everywhere. You can pick up a message remotely – that
is the biggest change, I think.
(?) And what is your favorite medium?
(!) I guess I use the pc more than the tv. But that’s really because
I have to work as well as communicate with it. tv is more for
relaxation and entertainment.
(?) Have you changed your media consumption during the last
five years?
(!) Yes, certainly. I like mobile phones. The only reason I have this
Blackberry is to be able to do more things when on the go than with
a normal mobile phone. And whereas five years ago, we only had
one tv in the living room, now there are several in one household.
/.
>> Dermot Hughes: “Can you describe an average
media day in your everyday life?“
forward > >
GfK_53
SECTOR: Custom Research
54_GfK
< < back
Plug & Play
A digital device offering all the features that a market researcher could possibly want?
It sounds like an impossible dream. The Dialogatore, which has been developed
by Italian company GfK Eurisko, is a small plug and play miracle, making anything
possible with its mobile communications system, touchscreen, camera, scanner,
microphone, loudspeaker and straightforward user interface – and all in real time,
via a gprs transmission system.
It all started with a problem: Italians do not have a great affinity with the internet. Barely
a third of the population currently have online access. This is a major obstacle to market
researchers, for whom the internet is, of course, now a vital tool. Giorgio Licastro, Media
Measurement Managing Director at GfK Eurisko in Italy, is critical of this state of affairs:
“The traditional face-to-face interview has had its day, because it is very costly. And
the other factor is time. Recording data, asking questions and collecting answers is
very time-consuming, and from a financial perspective this can no longer be justified.”
The Dialogatore –
a remote control for the digital world
40 %
internet affi nity
in Italy
So what is the solution? It is actually very simple. A multimedia tool that enables panelists to perform a variety of tasks without first having to wade through the pages of an
instruction manual, while at the same time offering market researchers possibilities they
had never even dreamed of. Giorgio Licastro: “The Dialogatore is a very smart tool. It is
essentially a small touchscreen computer with important additional features that make
it easy for participants to collect the data we are looking for.”
The Dialogatore is, as its name indicates, a dialog machine that is able to perform a
range of tasks in real time via both the input and output channels. Most importantly,
the device, which was developed by Eurisko and a Milan-based electronics company,
is incredibly easy to operate. It has no keyboard, only a six-inch touchscreen, making
it ideal for private use, and it is only slightly larger than a normal mobile phone. This
means it is more likely to be accepted by Italians, because “telefoninos” are widely used,
particularly among the core target groups. And anyone who knows how to use a mobile
phone is unlikely to find the Dialogatore a challenge. The device is also accessible for
those who are less proficient in using technology, as the touchscreen displays all the
steps in a way that is virtually self-explanatory.
forward > >
GfK_55
TOOL: Dialogatore
Isa Cecchini, Healthcare Department Director, GfK Eurisko
Giorgio Licastro, Media Measurement Managing Director, GfK Eurisko
56_GfK
< < back
The Dialogatore
The Dialogatore is always online and therefore constantly connected with GfK Eurisko’s
servers. For closed questions, the panelist can simply click on an answer option on the
touchscreen and Eurisko receives the results seconds later. Participants do not need to
answer open questions in writing; the built-in microphone records the spoken answer,
converts it into an mp3 file at lightning speed and forwards this digital message just
as quickly as the touch impulse on the screen. Giorgio Licastro: “We can even ask
participants to open their fridge and photograph its contents. And we then have access
to this information within a very short space of time.”
“
We can even ask participants
to open their fridge and photograph
its contents. And we then have
access to this information within
a very short space of time.
”
Giorgio Licastro, Media Measurement
Managing Director, GfK Eurisko Italy
This tool gives GfK Eurisko access to around 4,000 families, or almost 10,000 individuals,
who represent a cross-section of Italian society. GfK Eurisko has access to very extensive
data material for these test subjects, who may be either male or female and span a wide
range of age groups and lifestyles, among other variables. With this data set it is easy to
put together a representative group for a particular survey very quickly.
Isa Cecchini, Healthcare Department Director at GfK Eurisko: “The majority of people
who work with us in the healthcare field are aged 60 or over. This group often doesn’t
cope very well with the internet, but with the Dialogatore we can reach 10,000 people
with various conditions or illnesses. We can send questions or support people in their
daily course of treatment.”
“The best thing about Dialogatore,” says Giorgio Licastro, “is that it operates on a cordless basis. It only needs to be charged via the electricity network, and it doesn’t require
internet access or a telephone connection, it is a completely wireless device. As a result,
we can send out a questionnaire from Eurisko and receive the answers on the same day.”
One important feature is the integrated scanner. This can read barcodes, giving GfK
Eurisko a quick overview of magazines that are read, medicines that are taken, food
products that are purchased and so on – all everyday products that have this encoding for
the supermarket till are covered. In other cases, the microphone is helpful, for example
when evaluating radio listening habits. Test subjects only need to record a small extract
of the program to which they are listening, and this allows the station to be identified.
Since the Dialogatore enables all this information to be obtained with a minimum of
effort, Mr Licastro is convinced that his surveys are representative and his data very
solid. “It’s so simple. And that’s important – we don’t just want to survey high-tech
users, but also the average person on the street. An eighty-year-old woman could use the
Dialogatore, for example, and she is also a consumer whose data are of interest to us.”
Eurisko has certainly taken a big step forward with the Dialogatore. After all, if a country
like Italy is slow to react to the spread of the internet, consumer research must find other
methods. Mobile communications data services transmit the information at lightning
speed and in both directions. On the user side, the Dialogatore enables a high volume
of data and information to be sent to market and consumer researchers using a wide
range of methods. It seems that the market researcher’s dream is possible after all.
/.
>>
Isa Cecchini: ”The major
advantage?”
forward > >
GfK_57
INTERVIEWS
with
three USERS
of the
DIALOGATORE
Valeria Abbadessa, aged 45
(?) Do you know how to use the Dialogatore?
(!) Yes, of course.
(?) Do you like this digital form of communication?
(!) Yes, because it is extremely easy.
(?) Does the Dialogatore help you in your everyday life?
(!) Absolutely, the device is very helpful.
(?) What do you think is special about the Dialogatore?
(!) I think that the Dialogatore offers the possibility to learn more
about life in Italian society and the daily routine of the people
using it. Researchers are able to identify how people live their
lives. Through my choices, I can contribute to this, modify my
own choices and, as a result, help to make consumption behavior
more transparent.
(?) Is the Dialogatore a nuisance or a pleasure?
(!) It is not a nuisance, but I would not say it is a pleasure either.
I suppose it is somewhere in between. It is there, it is available
and it can also be helpful. I do sometimes feel a little monitored,
but that’s all right.
(?) Does the Dialogatore make you feel as though your views
are important?
(!) Yes, I think that the questions and answers trigger certain
changes, and these can influence lifestyle. The evaluation has
an effect on our day-to-day life. For example, supermarkets only
used to offer packets of ravioli containing a minimum of two
servings, but because many people live alone they now also offer
smaller packets.
58_GfK
< < back
I think this change can ultimately be attributed to market research.
And the Dialogatore offers an opportunity to monitor all these
things.
(?) Would you recommend the Dialogatore to friends or people
who are not so well versed in technology?
(!) Definitely. I have had it for almost a year now and am glad
that I can make an important contribution to research through
my involvement. It is also far easier to use than a computer or
mobile phone. It is not necessary to be proficient in the use of
technology – you can simply have fun using it.
/.
Maria Elena Belli, aged 57
Daniele Arras, aged 31
(!) Yes, I am very familiar with the device because I have already
been using it for some time.
(!) Yes, our family has been using the Dialogatore since May
2010. We receive two to three requests per week.
(!) Yes, very much.
(!) Yes, I really like it because I think this will be the method of
communication in the future. It is very interactive and fast. In
short: simple and effective.
(?) Does the Dialogatore help you in your everyday life?
(!) Yes, it does up to a point. I use it to keep an eye on the pharmaceutical products that I purchase in the pharmacy.
(!) If I feel it is becoming a burden or boring me, then I can always
press the button to switch it off.
are important?
(!) Yes, but I think that market researchers should also bear in mind
that we all have individual interests. Sometimes the questions are
too generalized.
(!) Yes, I definitely would. It is a fast method of communication,
is user friendly and does not require the user to be a computer
or internet expert. Simply operating the device can be a pleasure.
/.
(!) Well, it is definitely not a nuisance to me and my family. First
of all, it is silent and just has one led light that blinks if there is
a request for someone in the family. It is very respectful of our
family life!
are important?
(!) Yes, because the requests and tests are to some extent personalized. Some questions are for my father, while others are tailored
to me or my sister. They target specific aspects of our lives. For
example, requests relating to sport are appropriate for my sister
and me, but not for my father, while questions about taxation are
only really aimed at him.
(!) Yes, definitely. The problems that some people encounter when
using digital devices do not occur with the Dialogatore. It is really
easy to operate and manage because it has a touchscreen – I think
this is the easiest way to use a device.
/.
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GfK_59
SECTOR: Retail and Technology
60_GfK
< < back
The third
dimension conquers
the screen
3d tv set sales: South Korea leads the way
Why is it that we see three dimensionally? Do we also wish to extend this experience
to movies and the tv? What are Hollywood and tv producers doing to make this a
possibility? And what do consumers think about these new developments? All fascinating questions to which GfK Retail and Technology has been finding out the answers.
Nature still does it best – engineers who work with tv and movie theater technology
have a reverential respect for the human sensory system. At an early stage in the
development of the species, evolution settled on the combination of a pair of eyes with
efficient image processing in the brain.
Human beings see in depth, so it is no wonder that, shortly after the invention of
photography, the pioneers of image reproduction began to strive to recreate the third
dimension. As early as 1849, just ten years after Louis Daguerre had introduced the
first photographic images on silver plates, the Scottish physicist Sir David Brewster
presented the first stereoscopic camera. In order to view the 3d images, both partial
images had to be placed in a lens frame – the “stereoscope”. The further development of
this technology led to the “viewmaster” in the early 1950s – a 3d viewer for stereoscopic
image plates, which some may remember from childhood.
Share of 3d tvs in overall sales
of flat screen tv sets:
South Korea 10.3 %
Australia 9.9 %
Switzerland 8.3 %
Singapore 7.0 %
Germany 5.6 %
France 4.7 %
United Arab Emirates 4.6 %
Japan 4.4 %
Russia 3.3 %
China 2.4 %
South Africa 1.7 %
India 1.6 %
Source: GfK Retail and Technology,
Sales from January to December 2010
In the 1950s, the world of the moving image also conquered the third dimension. Starting in the usa and then crossing over to Europe a few years later, the first 3d films
found their way into movie theaters. These worked using the “anaglyph” method: the
two partial images for the right and left eye were projected on top of each other in red
and green, and a pair of cardboard glasses with one red and one green film enabled the
two images to be seen separately by each of the viewer’s eyes. The result was a more
or less 3d, black and white image with strange color effects.
For a long time, the inexpensive anaglyph process was key to 3d technology: reproduction
was possible in almost all media via normal color printing, color film, or color tv transmissions, and the glasses made of cardboard and colored film could be manufactured cheaply.
As a result, red-green 3d images appeared in magazines and books and eventually on tv.
But the engineers had more ambitious goals. They particularly wanted to show 3d
images in the movie theater and on tv in color, and ideally without any need for irritating
and technologically complex glasses. This last objective, at least, still represents a big
hurdle: 3d screens that do not require special glasses are currently still at the laboratory
>> Tokyo by night
forward > >
GfK_61
Image 1 of 3
Image 3 of 3
62_GfK
< < back
CLOSE
Image 2 of 3
CLOSE
CLOSE
stage of development; they all have small diagonals and can only be viewed at specialist
conferences and trade fairs. The latest technology features glasses that operate using
the polarization or the shutter process. Both enable good reproduction quality in color
but also involve highly complex technology.
The polarization principle is primarily used in movie theaters: two projectors cast the
partial images for the left and right eye onto the screen with light waves that are filtered
in such a way that they only oscillate in one direction. Filter lenses in the glasses worn
by the audience only allow light waves that are oscillating in a particular direction to
enter and therefore separate the image impressions for the left and right eyes. The
complication here lies in the projection technology, which means that the process is
more suited to the movie theater.
over
80
countries are included in
GfK Retail and Technology’s
The “shutter” technique also originates in the movie theater, but it has proved the most
suitable process for adaptation to tvs or home movie theater systems. Here too, the basic
principle is simple: the projector or screen shows the partial images for the left and right
eyes on an alternate basis, and in synchronization with this, the left and right lenses
of the 3d glasses open and close. This is achieved with special electrically powered
lenses. However, the system requires a great deal of high-performance electronics:
the images must be shown with a high alternating frequency so that each eye sees a
sufficient number of partial images, ensuring that the picture does not flicker. The left
and right lenses of the shutter glasses must also open and close at a rapid speed of 25,
50, 75 or even 100 partial images per second. And the image formation on the screen
must constantly be synchronized with the switch function of the glasses, so that this
complex optical trick does not fall out of step.
detailed market analysis
in the field of
consumer electronics.
This look behind the scenes explains why 3d movies and 3d tv in color and with good
image quality have only been technologically feasible for a relatively short period of
time. And of course, a great deal of effort is also required on the production side to
create 3d material in the film and tv studios. Yet despite all this, the third dimension is
very much in the media industry spotlight at present.
Right at the center of the entertainment universe, in the Hollywood district of Los Angeles, studio bosses are currently very focused on 3d. Their hope is to tempt audiences
away from their home movie screens and back into movie theaters with their impressive
3d film images. Some Hollywood bosses were very surprised and a little put out at how
quickly tv manufacturers jumped on the 3d technology bandwagon.
But this could hardly have come as a surprise to industry experts: following the great
market success of high definition tv (hdtv), 3d was the next natural milestone. All
manufacturers of consumer electronics have been working to recreate the third dimension in the home since 2010, and some started to focus on this field even earlier. Today,
anyone with aspirations to be part of the technological elite must at least own a tv set
with a “3d-ready” logo, which shows that the set is equipped with the technology to
display 3d content. The necessary shutter glasses and, if applicable, an infra-red or radio
transmitter to synchronize the glasses and the formation of images can be purchased
separately.
The 3d film “Avatar” entered movie theaters in 2009 and is, to date, the most financially
successful film of all time, recording box office takings of usd 1.85 billion. It also
triggered a 3d boom, at least in movie theaters, and it was then an obvious step for tv
manufacturers to use this momentum to introduce 3d to living rooms and home movie
theaters.
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GfK_63
Further information
“
In a few years, 3d will be
a standard feature of most tv sets
and Blu-ray players.
”
Hiroshi Sakamoto,
Senior General Manager
Home Entertainment Business Group
at Sony
The arrival of 3d in our homes was not unexpected. Providers like Sony have been concentrating on the third dimension in their research for many years. A major step in this
direction was already taken a decade ago – the development of high frame frequencies,
such as the “motionflow” technology introduced by Sony in the year 2000 – but even
among experts, few understood the full implications. This technology displayed a higher
number of individual images than were transmitted from the tv station and therefore
paved the way for the alternating display of two partial images for the left and right eye.
At the us Consumer Electronics Show (ces) in January 2009, Sony presented the first
prototypes of 3d flat screen televisions. Hiroshi Sakamoto, Senior General Manager of
the Home Entertainment Business Group at Sony, is in no doubt: “In a few years, 3d
will be a standard feature of most tv sets and Blu-ray players.” Engineers at Sony and
other providers are already working hard to introduce 3d tv images that do not require
shutter glasses. But until these processes are ready to be launched on the market, we
will have to be patient for a little while longer.
What do consumers have to say about all this? Will they show the same enthusiasm
for investing in 3d-capable flat screen tvs as they did for purchasing tickets to see
“Avatar”? How prepared are they, possibly just five years after buying their “hd-ready”
tv, to invest in a new set incorporating 3d technology? What contents must be offered
in 3d on Blu-ray, in tv programs and on the internet in order to boost the propensity
to buy 3d hardware? Manufacturers of tv sets, the retail sector, software industry and
other market players are all extremely interested in the answers to these questions.
Consequently, it is precisely these questions that GfK’s Retail and Technology sector is
exploring as part of its observation of the consumer electronics market.
GfK’s retail panel offers tv set manufacturers, software providers and other market
players detailed and up-to-the-minute market data for over 80 countries. This enables
internationally active providers to obtain targeted information on the particular conditions
in the relevant regional markets, as well as to compare statistics such as market potential,
sales figures or market shares in these countries.
Even if market success is currently still limited in some countries, the figures speak
volumes. In 2010, approximately 2 million 3d-capable tv sets were sold worldwide;
900,000 of these were in Europe and around 200,000 in Germany alone. GfK Retail and
Technology is forecasting considerable growth for 2011, predicting that global sales will
increase to 12 million 3d-capable tv sets, 4.5 million of which will be sold in Europe as
a whole and around 1 million in Germany.
At 5.6 % of the overall market, the market share in Germany in 2010 was average
compared with other countries. Japan recorded a similar figure, with a share of 4.4 %,
while South Korea (10.3 %) and Hong Kong (9.8 %) were out in front. What is clear is
that despite positive market growth, manufacturers and software providers still have a
substantial amount of work ahead of them, and GfK will continue to be a reliable partner
in supporting their endeavors.
/.
64_GfK
< < back
since 2010, All manufacturers
of consumer electronics have
been working to recreate
the third dimension
in household living rooms and
some began to focus
on this field even earlier.
forward > >
GfK_65
Hiroshi Sakamoto, Senior General Manager of the Home Entertainment Business Group, Sony Corporation
66_GfK
< < back
First name
Hiroshi
Surname
Sakamoto
Location
Tokyo
Favorite
website
www.sony.com
Favorite
social media
network
—
(?) 3d has been an important driver of consumer electronics
sales in 2010 and will be for the foreseeable future. However,
sales of 3d devices remain quite low. How would you explain
this?
(!) What you say is correct, or rather, it was correct. The announcement of a 3d tv launch at the ifa 2009 in Berlin triggered a media
hype over the arrival of 3d in the home. When we launched the
technology in spring 2010 together with competitors like Samsung, Panasonic, lg and Philips, we were all disappointed and a
little discouraged by the reaction of the market. Frankly, the sales
figures were much lower than our expectations until the beginning
of October. However, the situation changed in November, when
our sales increased five-fold compared to our competitors. We
hope this situation continues. The reason it happened is that we
started a big promotion campaign together with the Playstation 3
in October. At the Games Convention in August, Sony Computer
Entertainment announced the latest version of the Playstation 3
and the launch of the game Gran Turismo 5 for Christmas, and
published a software update for 3d Blu-ray reproduction capability
on the Playstation 3. This took 3d into the fast lane.
(?) How have the regional markets developed in terms of 3d
technology? And where are sales highest?
(!) Traditionally, the biggest market has been the us, followed by
Europe and Japan. Because of the 3d and 3d-ready classifications,
the situation on the overall market doesn’t look so good. However,
if we count 3d-ready tvs – tvs sold without the glasses – things
look better. The highest sales figures come from the us, and then
Europe and Japan are almost on the same level. For example, Sony
only has one tv set that has glasses inside the box – all other tvs
are 3d-ready.
(?) In which market segments is 3d particularly strong? Does
3d-ready tend to be a feature of high-end products or is it also
represented in the middle and lower price segments?
interview
(!) The price of a 3d tv might seem relatively high in some countries, but two pairs of glasses are included, making a kind of
complete 3d set. We say the two pairs of glasses are free, but in
reality we budget for part of the glasses cost in the price of the tv.
In Japan, we changed the message, to emphasize that Sony 3d tvs
have as good a picture as those with the best 2d pictures, and that
3d-ready tvs have a fully-fledged 3d tv function. This approach
has resulted in the 3d market becoming more active in Japan.
(?) How has Hollywood reacted to the rapid introduction of 3d
technology for the home? The studios’ primary aim was to use
3d technology to tempt more viewers into movie theaters. Have
they accepted the developments in consumer electronics or are
they trying to thwart this progress?
(!) We are sure that both have a positive influence on one another.
More people have been visiting the movie theaters as a result
of 3d and now viewers are happy that they can also enjoy 3d at
home. Because of this, we have increased our sales of 3d Blu-ray
players, for example. But to be frank, the number of movie titles is
not that big because most movies are still shot with a 2d camera.
With Disney animations, converting from 2d to 3d is not that difficult; however, it is not so easy with real images and movies. We
are working not only with Sony Pictures but also with Warner
and Disney to promote 3d movies as well as Blu-ray discs with
3d content. Warner apparently has a special kind of conversion
technology that allows a 2d production to be turned into a 3d
movie. This means that in future Harry Potter could be released
in 3d on Blu-ray, for example, as well as other popular titles. We
are expecting a lot in this respect.
(?) In connection with this: how satisfied are you with the 3d
software range in general? What growth rates do you expect to
see in this segment in the next twelve months?
(!) I know that by the end of 2010 we will have launched around
40 titles on the market. In 2011 it will be 50 – and all big titles.
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GfK_67
(?) What is the situation regarding the entry of 3d into the tv
schedules? Up to now, the range of 3d tv programs has been
very limited. Are viewers waiting for their tvs to open up the
third dimension?
(!) For terrestrial broadcasts, 3d isn’t easy to introduce. Only Australia has 3d terrestrial broacasting technology. However, espn
in the usa and Sky in Europe offer 3d programs via satellite. So
we are working with broadcasters to increase the 3d offering via
satellite and cable. In Japan, some large broadcasters already have
a 3d channel, and from next month, two other broadcasters will
also start offering 3d programs via satellite. So, in relative terms
it is easier for satellite and cable viewers to enjoy 3d tv programs.
In the terrestrial segment, development will probably take longer.
(?) Sony is the only provider to offer a complete range of products:
Blu-ray, Playstation 3, 3d tvs and film productions by Sony
Pictures. Does this boost sales and create sustainable synergies?
(!) Our product range, starting with the ps3 for films and games,
will boost the market. Our line of Blu-ray players are 3d-ready
and we also have Blu-ray home movie theater equipment. So we
are very well positioned with our consumer electronics products.
And Sony Pictures will be far more active in 2011 than Disney,
for example. Sony Pictures will take a committed approach to
producing 3d films.
(?) How do you assess the future of 3d?
(!) The 3d feature is now better positioned strategically. It is not a
high-end feature, and in the near future it will become a standard
attractive feature in tv sets, as well as in Blu-ray players. Price
conditions will be much more affordable over the next few years.
The 3d glasses were also pretty expensive at first, which is one
of the reasons why the market didn’t expand rapidly, but this will
also change over the next three years. In addition, the demand
for and range of 3d content will increase on tv, the internet and
social media such as YouTube. 3d is well on the way to becoming
a key purchasing factor.
/.
>> Hiroshi Sakamoto:
“What does the future hold for 3d?”
68_GfK
< < back
REGION: Asia and the Pacific, Tokyo
forward > >
GfK_69
70_GfK
< < back
1. The economy
72
2. Economic and financial development
74
3. Research and development
86
4. Human Resources
91
5. Organization and administration
92
MANAGEMENT REPORT
Management report
of the G f K Group
6. Corporate Governance statement in accordance with
Section 289 a of the German Commercial Code (hgb)
92
7. Purchasing
92
8. Environment
93
9. Corporate communications and marketing
93
10. Accounting-related internal control system
93
11. Opportunity and risk position
94
12. Major events since the end of the financial year
100
13. Outlook
100
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GfK_71
MANAGEMENT REPORT Of the G f K Group
—
1. the economy
1.1 Overall economic development: global recovery
MANAGEMENT REPORT
In terms of gdp, the global economic crisis only lasted from autumn
2008 to summer 2009, after which the economy picked up again
considerably until summer 2010. This trend reversal was driven in
2009 by the government economic program and fiscal measures
introduced in many of the industrialized nations and the almost
unchecked economic expansion in some emerging countries, especially in the People’s Republic of China. In 2010 as a whole, growth
in the global economy amounted to 5 %.
However, since mid-2010, the pace of the global recovery has
slowed significantly, varying considerably from region to region.
While the economy in many developed countries cooled substantially in the second half of the year, the economic output in some
emerging countries had to be curbed through monetary and fiscal
policy instruments to prevent overheating.
The following overview shows the development in the regions and
countries important to GfK’s operations:
gdp growth in %1)
2008
2009
20102)
20113)
Germany4)
1.2
– 4.7
3.6
2.2
France4)
0.3
– 2.5
1.6
1.8
uk
0.6
– 5.0
1.7
1.8
Eurozone5)
eu 27 5)
0.5
0.4
– 3.6
– 4.2
1.7
1.8
1.3
1.8
Russia
5.6
– 8.0
3.9
4.3
Central and Eastern Europe
3.0
– 4.0
3.6
4.0
usa
0.4
– 2.6
2.7
1.8
Latin America and Caribbean4)
4.3
– 1.7
5.7
4.0
China
9.0
9.1
10.1
9.5
Japan
Countries/regions
– 1.2
– 6.3
4.4
0.8
Asia and the Pacific
5.1
3.6
7.9
6.7
World4)
3.0
– 0.6
5.0
4.4
Sources:
1) DIW “Principles of Economic Development 2011/2012”
2) Estimates
3) Forecast for Economic Development 2010/2011
4) International Monetary Fund (IMF)
5) The Euroframe Autumn Report 2010
72_GfK
< < back
• In Germany, gdp recorded strong growth of 3.6 % in 2010. This
is the biggest year-on-year increase since reunification and was
based on two pillars. Catch-up effects led to increased exports and
stronger growth was recorded in domestic demand. The favorable
development in the labor market, which was supported by government subsidies for short-time working in 2009, led to an improvement in the consumer climate and will again be an important
driver for positive economic development in Germany in 2011.
Consumer climate in Germany: model for Europe1)
Month
January
Opinion trend
Consumer climate –
restrained start
to new year
February Economic
expectations dampen
consumer climate
March
Spring awakens hopes
of economic recovery
April
Spring-like mood in
the consumer climate
Debt crisis weakens
May
consumer expectations
June
Consumer climate
stable despite austerity
package discussions
July
Consumer climate in
summer high
August
Consumer climate
slightly on the upswing
September Consumer climate
at 3-year high
October
Germans expect
economic high
November Consumers in
the mood for preChristmas spending
DecemConsumer climate
ber
takes a breather
Change
from previPro- ous month
pensity in indicator
points3)
to buy2)
Consumer
climate
indicator
Change
from
previous
month
in %
25.4
+ 4.2
3.4
– 5.6
24.2
– 1.2
3.3
– 2.9
23.4
– 0.8
3.2
– 3.0
21.6
– 1.8
3.4
+ 6.3
18.1
– 3.5
3.7
+ 8.8
30.4
+ 12.3
3.5
– 5.4
27.9
– 2.5
3.7
+ 5.7
27.9
+ /– 0
4.1
+ 10.8
30.7
+ 2.8
4.4
+ 7.3
22.5
– 8.2
5.0
+ 13.6
39.3
+ 16.8
5.2
+ 4.0
33.8
– 5.5
5.5
+ 5.8
1) These findings are from the comprehensive “GfK consumer climate maxx” survey
conducted each month since 1980 on behalf of the eu Commission. In the first half of the
month, a representative sample of around 2,000 subjects are asked about their perceptions
of the overall economic situation, their propensity to buy and their income expectations.
2) The consumer confidence or propensity to buy indicator is based on the following
question to consumers: do you think it is advisable to make purchases at the moment?
(good time – neither good time nor bad time – bad time).
3) The consumer climate indicator describes private consumption. Key factors are income
expectations and the propensity to buy. The economic outlook has a more indirect effect
on the consumer climate, generally as a result of income expectations.
• Economic development also varied considerably in the different
countries in Central and Eastern Europe. In Poland and Turkey
in particular, growth was stable as a result of increased domestic
demand. In addition, the debt levels of private households and
companies were lower than in the rest of the region. The recovery
was weak in the Baltic countries, which were particularly hard hit
by the recession, and production continued to stagnate.
• The economy in the usa recorded relatively strong growth of
2.7 % in 2010. Boosted by monetary and fiscal policy support
measures carried out by the Fed and the government, output
and investment increased. In contrast, the conditions for private
households barely improved. High unemployment rates and
austerity measures resulted in weak consumer demand.
• After Asia, Latin America is the engine of the global economy.
The South American countries benefited especially from the
general upswing and domestic demand recovered again very
quickly in 2010. Growth in major economies such as Argentina
and Brazil was even stronger than before the recession.
• More than any other region, Asia defied the crisis. Export growth,
state intervention and strong domestic demand led to many
emerging Asian economies recording an upturn again in 2010.
Even Japan, an industrialized nation, saw its economy expand
by 4.4 %. This positive development is primarily attributable to
increased private domestic demand. Alongside other measures,
this was fostered by tax incentives on the purchase of eco-friendly
cars and household products.
1.2 Market research sector: sales decline for first time in 2009
For the first time since market research sales records began in the
late 80s, industry association esomar reported a drop in sales for
2009. According to the esomar Industry Report 2010, sector sales
fell worldwide by 4.6 %.
However, in the usa, the biggest market for market research, the
negative growth was lower than feared. Although market research
budgets declined for the second year in a row, negative growth
stood at – 3.5 %. In contrast, Europe was relatively hard hit with a
fall of – 5.9 %. However, sales in the market research sector in the
previous year (2008) had proven relatively stable compared with
2007. As before, the three biggest markets in Europe are the uk,
Germany and France, which are far ahead of the other countries.
Sales and growth by region
in usd million
Europe
eu 15
eu accession countries
Rest of Europe
America
North America
Latin America
Middle East/Africa
Total
Sales
2008
Sales
2009
Growth
2008/2009
in %1)
15,948
14,202
727
1,019
11,325
9,629
1,696
4,552
13,298
11,916
559
823
10,674
9,188
1,486
4,480
– 5.9
– 5.6
– 8.1
– 8.4
– 3.72)
– 3.5
– 4.6
– 2.2
532
492
– 10.2
32,357
28,944
– 4.6
MANAGEMENT REPORT
• The picture for the eurozone member states is extremely varied.
While Germany pulls the whole average up, most economies
recorded only moderate growth. Development in Spain and
Ireland stagnated and in Greece, gdp contracted for the second
year in a row at – 4.0 %. This mixed picture hardened over the
course of the year, since high unemployment rates and austerity
measures adversely impacted private and public sector domestic
demand in some countries.
1) Growth adjusted by inflation, based on sales in local unit of currency
2) GfK calculations
Source: esomar Industry Report 2010
At – 4.6 %, demand for market research in Latin America also
decreased. Although market research sales in Brazil were down by
– 6.9 % on an inflation-adjusted basis, the country still made it into
the top 10 national market research markets in 2009. Surveys ahead
of the elections in 2010 constituted a major revenue earner.
The Asia and the Pacific region recorded the lowest drop in sales,
with development in the five major countries varying considerably. In
the most important market, Japan, market research sales declined
by – 4.0 %, with a – 10.6 % decrease in the third market, Australia,
and – 6.0 % in India, which ranks fifth. In contrast, sales in the
second biggest market, China, increased by 2.8 % and by as much
as 16.6 % in South Korea, the fourth biggest market in the Asia
and the Pacific region.
The Middle East/Africa region was especially hard hit by the global
economic crisis, which led in particular to declining sales from
market research budgets in South Africa and the Middle East.
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GfK_73
Economic and financial development: GfK Group
—
Top 10 national consumer research markets:
sales, growth and share of the sector’s overall sales
2. economic and financial development
Growth
Share of
2008/2009 sector sales
in %1) 2009 in %
in usd million
Sales
2008
Sales
2009
usa
8,866
8,557
– 3.2
29.6
uk
4,154
3,248
– 6.1
11.2
Germany
3,334
2,897
– 5.0
10.0
France
3,042
2,688
– 3.4
9.3
Japan
1,641
1,769
– 4.0
6.1
China
890
918
2.8
3.2
Italy
912
757
– 9.9
2.6
Spain
784
657
– 8.2
2.3
Canada
763
631
– 8.3
2.2
Brazil
689
587
– 6.9
2.0
Top 10 total
25,075
22,709
–
78.5
World
32,361
28,945
– 4.6
–
1) Growth adjusted by inflation, based on sales in local unit of currency
Source: esomar Industry Report 2010
Particularly in difficult economic times, the global presence of a
market research organization represents a decisive competitive edge,
as only well-positioned companies can develop promising markets
such as China, Brazil or South Korea. Furthermore, clients increasingly require multi-country studies based on instruments that are
not only highly innovative but also tailored to the respective culture.
MANAGEMENT REPORT
This is why the GfK Group further expanded its global full-service
network again in 2010, maintaining its fourth place ranking in the
top 10 companies in the market research sector.
Top 10 of the consumer research sector
Company
Sales 2009
usd million
Growth
in %1)
1
The Nielsen Company, usa
4,628.0
1.0
2
The Kantar Group, uk2)
2,823.2
– 9.5
3
ims Health, usa
2,189.7
– 2.4
4
GfK, Germany
1,622.8
– 6.0
5
Ipsos, France
1,315.0
– 3.8
6
Synovate, uk
816.4
– 9.6
7
SymphonyIRI, usa
706.3
1.2
8
Westat, usa
502.4
7.0
9
Arbitron, usa
385.0
4.4
intage, Japan3)
368.6
0.3
10
1) Growth in local currency, adjusted to take account of acquisitions/disposals
2) Estimated sales
3) Financial year ended in March 2010
Source: esomar Industry Report 2010, published in September 2010
Despite the unchanged ranking for the top 10 organizations, in
2009, the market research industry also reflected the impact of the
global economic crisis, while sales had remained stable worldwide
in 2008, the first year of the crisis. Particularly affected were budgets in the ad hoc and media segments which could be cancelled
easily. But all signs pointed to a trend reversal, which started as
early as the fourth quarter of 2009. This is especially true of the
GfK Group. While esomar estimates that the industry grew by 3 %
in 2010, the GfK Group expanded by 11.1 %. The crisis therefore
only had a brief negative impact on the market research industry
and the GfK Group.
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2.1 Introduction
The GfK Group prepares its consolidated financial statements in
accordance with the International Financial Reporting Standards
(ifrs). The financial data for the sectors and regions originate
from the Management Information System.
For GfK, the order situation is an important early indicator for the
future development of the Group’s business. The development in the
assured volume of orders in relation to the expected annual sales
for the financial year is determined monthly. This ratio is a central
management parameter for the Group and is monitored by the
management of GfK in a timely manner. In general, around half the
planned annual sales are already reported as assured contracts in the
first quarter.
The picture varies from sector to sector. As a result of the lower
proportion of continuous data collection in Custom Research and
greater weighting for ad hoc studies, incoming orders in this sector
tend to be more evenly spread across the whole of the year. In the
panel-based Retail and Technology sector, contracts are largely
renewed in the first three months of the financial year. In contrast,
in Media multi-year contracts are concluded for continuous tv and
radio audience research.
The figures for income set out below refer to adjusted operating
income. Like its competitors, the GfK Group uses adjusted operating income as a key performance indicator. GfK is convinced
that the explanations regarding business performance using the
adjusted operating income will facilitate interpretation of the GfK
Group’s business development and enhance the informative value,
in comparison with other major companies operating in the market research sector. Where income is mentioned below, this is the
adjusted operating income. The margin is the ratio of adjusted operating income to sales.
The adjusted operating income is calculated as follows:
Reconciliation of adjusted operating income
Operating income
2009
88.9
2010
136.7
Change
in %
+ 53.8
Expenses and income in conjunction with
restructuring and company transactions
16.0
6.7
– 58.5
Scheduled amortization/depreciation
15.7
11.8
– 24.8
Impairments/reversals
11.8
4.6
– 61.5
in eur million
Write-ups and write-downs of additional
assets identified on acquisitions
Personnel expenses for share-based
payments and long-term incentives
3.0
9.8
+ 223.6
Remaining other operating income less
remaining other operating expenses
11.8
15.4
+ 32.0
Total highlighted items
58.3
48.3
– 17.2
147.2
185.0
+ 25.7
Adjusted operating income
The figures on the business development of the GfK Group and any
percentage changes are based on figures in eur 1,000. Accordingly,
rounding differences may occur.
The companies mentioned in the Management Report are referred
to by their abbreviated names. The “Additional information” section
of the Annual Report includes a list of the full names of all the
companies indicated.
2.2 GfK Group: best result in GfK’s history
With sales of eur 1,294.2 million, GfK significantly surpassed not
only the adjusted forecast in its half-year report 2010, but also the
previous year’s figure. Overall, sales rose by 11.1 %. Currency
effects increased sales by 3.6 %, while acquisitions added 0.2 %.
The organic rise in sales amounted to 7.3 %.
Development of earnings1)
in eur million
Change
in %
+ 11.1
Sales
2009
1,164.5
2010
1,294.2
Cost of sales
– 813.2
– 872.3
+ 7.3
351.3
421.9
+ 20.1
– 250.3
– 268.1
+ 7.1
– 18.3
Gross income from sales
Selling and general
administrative expenses
Other operating income
24.0
19.6
Other operating expenses
– 36.1
– 36.7
+ 1.6
ebitda
159.1
195.7
+ 23.0
as a percentage of sales
Highlighted items
Operating income
13.7
15.1
–
147.2
185.0
+ 25.7
12.6
14.3
–
– 58.3
– 48.3
– 17.2
+ 53.8
88.9
136.7
7.6
10.6
–
Income from participations
3.9
3.9
– 1.5
+ 51.5
92.8
140.6
8.0
10.9
–
Financial income
6.2
12.2
+ 99.1
Financial expenses
– 23.5
– 28.0
+ 19.4
Other financial income
– 17.3
– 15.8
– 8.8
75.5
124.8
+ 65.3
– 14.9
19.8
– 40.8
32.7
+ 173.0
–
60.5
84.0
+ 38.8
Attributable to equity holders
of the parent
Attributable to minority interests
51.0
9.5
71.7
12.3
+ 40.6
+ 29.2
ebit
Tax on income from ongoing
business activity
Tax ratio in %
60.5
84.0
+ 38.8
Earnings per share (undiluted) in eur
1.42
1.99
+ 40.1
1) Rounding differences may occur
At eur 421.9 million, gross income from sales was up 20.1 % on
the previous year. The 7.3 % increase in the cost of sales to eur
872.3 million was more than offset by the rise in sales. Selling and
general administrative expenses rose by 7.1 % and amounted to
eur 268.1 million in financial year 2010.
Income climbed from eur 147.2 million to eur 185.0 million. The
operating margin reached 14.3 %, substantially higher than the
previous year’s margin of 12.6 %.
Highlighted items include costs relating to the biss fitness and
efficiency program amounting to eur 6.7 million (2009: eur 16.0
million). The highlighted items also include write-ups and amortization on hidden reserves disclosed as part of the purchase price
allocation amounting to eur 16.4 million (2009: eur 27.5 million).
The figure comprises scheduled amortization of eur 11.8 million
(2009: eur 15.7 million) and the balance of impairment losses and
reversals amounting to eur 4.6 million (2009: eur 11.8 million).
Furthermore, highlighted items include expenses of eur 9.8 million
(2009: eur 3.0 million) for long-term variable remuneration systems
as well as the remaining other operating income and expenses.
These amounted to eur – 15.4 million (2009: eur – 11.8 million).
The balance of exchange rate gains and losses included in this item
stands at eur – 7.3 million (2009: eur – 4.8 million). Settlements
amounting to eur 4.2 million (2009: eur 3.9 million) for posts which
were not subsequently filled adversely affected the remaining other
expenses.
Operating income rose year-on-year by eur 47.8 million, or
53.8 %, to eur 136.7 million.
MANAGEMENT REPORT
Where statements herein refer to the number of employees, in
principle, this represents the total number of full-time posts. For
this purpose, part-time posts have been converted to equate to
full-time posts.
The personnel cost ratio, which expresses the ratio of personnel
expenses to sales, stood at 42.6 % (2009: 43.8%). In absolute
terms, personnel expenses stood at eur 550.7 million (2009: eur
510.5 million). This reflects the rise in the number of employees by
488 to 10,546 in total in 2010.
The balance of write-ups and amortization/depreciation dropped
from eur 66.3 million in the previous year to eur 55.1 million.
Scheduled amortization/depreciation, especially on software and
fixtures and fittings, reduced slightly from eur 51.5 million in the
previous year to eur 50.2 million. Impairment losses reduced by
eur 6.9 million to eur 11.9 million. This reflects the pleasing business performance and improved projections for the coming years.
ebit in the GfK Group increased year-on-year by 51.5 % to eur
140.6 million.
ebitda climbed from eur 159.1 million in the previous year to eur
195.7 million in financial year 2010.
At eur 3.9 million, income from participations corresponds to the
previous year’s figure.
Other financial income, which is the balance of financial income
and expenses, amounted to eur – 15.8 million in financial year
2010. This represents an improvement of eur 1.5 million on the
previous year. In addition to the reduction in liabilities to banks
of eur 52.2 million, the fall in interest rates on the GfK Group’s
variable-rate liabilities also had a positive impact. Other financial
income includes income from currency hedges amounting to eur
3.4 million (2009: eur 0.2 million). This income compensates part
of the negative currency balance reported in other income and
expenses.
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GfK_75
Economic and financial development: GfK Group
Overall, the above effects led to an increase in income from ongoing
business activity of 65.3 % to eur 124.8 million in 2010.
At 32.7 %, the income tax ratio was 12.9 percentage points above
the ratio for the previous year of 19.8 %. The previous year’s ratio
was influenced by positive extraordinary effects and a significant
rise was therefore expected. In addition, part of the increase stems
from a new tax regulation governing non-deductible expenses.
There were also negative tax effects from previous years amounting
to eur 2.4 million (2009: positive effect eur 2.3 million), primarily
as a result of provisioning for tax risks at subsidiaries.
The GfK Group:
Income and consolidated total income 2008 – 2010 in eur million
+ 158.7
2008
2009
+ 82.0
+ 147.2
+ 60.5
+ 185.0
2010
Income
+ 84.0
MANAGEMENT REPORT
The GfK Group’s consolidated total income therefore increased
from eur 60.5 million in the previous year to eur 84.0 million in
2010. This corresponds to a rise of 38.8 %.
Assets and capital position
The total assets of the GfK Group increased year-on-year by
eur 128.5 million to eur 1,649.9 million.
On the assets side of the balance sheet, the eur 74.3 million increase
in non-current assets was due to several effects: goodwill increased
by eur 47.7 million, of which eur 7.6 million was attributable to
the change in the scope of consolidation and eur 40.1 million to an
exchange rate-related rise. Other intangible assets rose by eur 9.2
million. In addition to positive currency effects, this increase is
attributable to capitalization in conjunction with tv research projects
in the Media sector. Deferred tax assets rose by eur 6.3 million, particularly as a result of the recognition of loss carryforwards. Shares
in associated companies were up by eur 5.8 million, primarily as a
result of the acquisition of a 40 % interest in SirValUse and nurago,
following which the companies were included in the consolidated
financial statements as associated companies.
The eur 54.2 million rise in short-term assets was dominated by
the increase in trade receivables of eur 44.9 million as well as the
eur 12.4 million rise in cash and cash equivalents. This was countered by a decrease in current income tax assets of eur 4.9 million.
76_GfK
< < back
Development of balance sheet growth
In eur million
31.12. 2009
31.12. 2010
Change
in %
Share of
total assets
in %
Assets
Non-current assets
1,157.9
1,232.2
+ 6.4
74.7
Current assets
363.5
417.7
+ 14.9
25.3
Liabilities
Equity
553.0
677.5
+ 22.5
41.1
Non-current liabilities
499.9
484.9
– 3.0
29.4
Current liabilities
468.5
487.5
+ 4.0
29.5
1,521.4
1,649.9
+ 8.4
100.0
Total assets
The changes on the liabilities side include a decrease in noncurrent liabilities of eur 14.9 million and a rise in current liabilities
of eur 19.0 million. In the long-term segment, the change results
primarily from the eur 34.6 million decline in non-current financial
liabilities and simultaneous increase in long-term provisions of eur
16.3 million. In the short-term segment, the reduction in current
financial liabilities of eur 33.6 million was more than offset by the
rise in other current liabilities, especially liabilities to employees, of
eur 22.4 million and the increase in liabilities on orders in progress
of eur 18.0 million. Furthermore, future purchase price obligations
for acquisitions (put options and bonds) fell by eur 18.0 million to
eur 60.2 million.
Equity also climbed from eur 553.0 million in the previous year
to eur 677.5 million. This change in equity is essentially due to
the expansion in retained earnings of eur 51.9 million and the
increase in other reserves of eur 54.8 million. Most of this line
item is attributable to currency fluctuations not affecting income,
which stem particularly from the revaluation of the us dollar,
British pound and Swiss franc.
The equity ratio increased as at December 31, 2010 by 4.8 percentage points to 41.1 % (2009: 36.3%).
Development of equity ratio 2008 – 2010 in %
2008
2009
2010
34.6
36.3
41.1
For an innovative market research company, it is essential to invest
in panel expansion, switch to digital recording devices, expand and
extend production and evaluation systems, as well as to develop
new measurement technologies. This makes a decisive contribution
to securing the future success of the company through the expansion of its leading edge in technology and raising the entry barriers
for potential competitors. The range for these investments regularly
amounts to between 4 % and 5 % of sales.
In addition, the GfK Group invests in the expansion of its international network through acquisitions. Above a certain level, these
financial investments are subject to the approval of the Supervisory
Board.
Net debt, defined as the balance of cash, cash equivalents and
short-term securities less interest-bearing liabilities and pension
obligations, fell from eur 499.8 million to eur 428.5 million. In
addition to the decline in bank liabilities of eur 52.2 million, this
reflected the eur 18.0 million decrease in future purchase price
obligations for company acquisitions to eur 60.2 million reported
under other interest-bearing liabilities. This is primarily due to the
exercising of options for Adimark Chile, GfK Mode India, Shopping
Brasil and the GfK Kynetec Group.
Development of net debt
In eur million
Liquid funds
In 2010, GfK spent eur 89.6 million on investments (2009: eur
106.7 million). Of this investment, eur 48.6 million (2009: eur 49.0
million) essentially related to the procurement of software, office
equipment and other tangible assets and eur 38.9 million (2009:
eur 55.1 million) to the acquisition of consolidated companies,
minority interests and other business units.
The rise in cash flow from ongoing operating activity from eur
134.7 million to eur 172.0 million is primarily attributable to the
improved consolidated total income.
Taking account of expenses relating to capital expenditure of eur
48.6 million, free cash flow totaled eur 123.4 million (2009: eur
85.7 million). The acquisitions carried out in the financial year were
therefore fully financed.
31.12. 2009
31.12. 2010
Change
in %
Cash flow from ongoing
business activity
134.7
172.0
+ 27.7
Capital expenditure
– 49.0
– 48.6
– 0.8
+ 44.0
Free cash flow before
acquisitions, other investments
and asset disposals
Acquisitions
Other financial investments
Asset disposals
Free cash flow after acquisitions,
other investments and asset
disposals
Liquid funds and short-term securities
85.7
123.4
– 55.1
– 38.9
– 29.3
– 2.6
– 2.1
– 20.0
2.3
3.4
+ 49.8
30.3
85.8
+ 183.3
31.12.2010
42.4
54.7
+ 29.3
0.9
1.4
+ 44.4
+ 29.6
43.3
56.1
Liabilities to banks
400.4
348.2
– 13.0
Pension obligations
46.0
55.7
+ 21.0
Liabilities from finance leases
12.2
11.5
– 5.8
Other interest-bearing liabilities
84.5
69.2
– 18.1
543.1
484.6
– 10.8
– 499.8
– 428.5
– 14.3
Interest-bearing liabilities
Net debt
The decline in net debt made a major contribution to the significant
improvement in all ratios of net debt to key balance sheet and
financial ratios.
Gearing and ratio of net debt to ebit, ebitda and free cash flow
Gearing (net debt/equity)
Development of free cash flow
In eur million
Short-term securities and time deposits
Change
in %
31.12.2009
MANAGEMENT REPORT
Investment and finance
2009
2010
90.4 %
63.2 %
Net debt/ebit
5.39
3.05
Net debt/ebitda
3.14
2.19
Net debt/free cash fl ow
5.84
3.47
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GfK_77
Economic and financial development: sectors
2.3 Mandatory information under company law
(Section 315 (4) of the German Commercial Code hgb)
The share capital of GfK se amounts to eur 151,156,968.76 as at
December 31, 2010, divided into 36,274,090 no-par value bearer
shares. There are no restrictions in the Articles of Association relating to voting rights or the assignment of shares. All shares carry
the same rights.
GfK-Nürnberg Gesellschaft für Konsum-, Markt- und Absatzforschung e.V. (the GfK Association), Nuremberg, has a direct
holding of 56.45 % of the voting rights in GfK se. The company
has not received notification of any other shareholders with a
stake of 10 % or more of the capital.
Employees with an interest in the capital exercise their voting
rights directly.
MANAGEMENT REPORT
Pursuant to Article 5 of the Articles of Association of GfK se, the
Supervisory Board is responsible for determining the number
of members of the Management Board. The Supervisory Board
appoints the members of the Management Board for a maximum
term of five years. Appointment for one term or several reappointments for a maximum term of five years is permitted. The Supervisory Board may appoint one member of the Management Board
as the ceo and one or more as Deputy ceos. In addition, the legal
regulations on appointing and removing members of the Management Board (Sections 84, 85 of the German Stock Corporation Act,
AktG) apply. The Articles of Association do not contain any regulations that exceed the statutory requirements of Sections 133, 179
of the German Stock Corporation Act (AktG).
Pursuant to Article 20 of the Articles of Association of GfK se,
unless otherwise stipulated by mandatory legal regulations,
resolutions to amend the Articles of Association require a majority
of at least two-thirds of the valid votes cast, or where at least half
of the share capital is represented, a simple majority of the votes
cast. In cases where the law additionally requires a majority of the
share capital represented when the resolution is adopted, a simple
majority of the share capital represented will suffice unless a different majority is stipulated by law.
The authorization to acquire own shares dated May 20, 2009 has
been rescinded for the period from the coming into force of the
following new authorization. By resolution of the Annual General
Meeting on May 19, 2010, up until May 18, 2015, pursuant to
Section 71 (1) clause 8 of the German Stock Corporation Act (AktG),
the company is authorized, with the consent of the Supervisory
Board, to acquire own shares up to a maximum of 10 % of the share
capital in place at the time when the authorization came into force.
Together with other shares held by the company or attributable
to it pursuant to Sections 71 a ff of the German Stock Corporation
Act (AktG), the shares acquired may not account for more than
10 % of the share capital at any time. The authorization may
not be used by the company for the purposes of trading in own
shares. The authorization can be exercised by the company, or by
third parties for the account of the company, in whole or in part,
once or on several occasions, to meet one or several purposes.
The acquisition of own shares takes place as the Management
Board chooses through a purchase offer addressed to all share-
78_GfK
< < back
holders or by means of a public call to issue such an offer or via
the stock market. If the shares are acquired via the stock market,
the price per share paid by the company (excluding incidental
acquisition costs) may not be more than 5 % above or 5 % below
the price per share determined in xetra trading (or comparable
successor system) in the opening auction on the trading day. If
the acquisition is carried out via public purchase offer or public
call to issue such an offer, the purchase price offered or minimum
and maximum of the price range per share (excluding incidental
acquisition costs) may not be more than 10 % above or below the
closing price in xetra trading (or comparable successor system)
on the trading day prior to the day of publication of the offer or
call to issue such an offer. If, after publication of a purchase offer
or public call to issue such an offer, significant deviations from
the relevant price occur, the offer, or call to submit such an offer,
may be adjusted. In this case, any adjustment will be based on the
closing price in xetra trading (or comparable successor system)
on the trading day prior to the day of publication. The purchase
offer or call to submit such an offer may contain further terms
and conditions. If the purchase offer is oversubscribed or if, in
the event of a call to submit an offer, not all of several equal offers
can be accepted, acceptance can be carried out by quotas. Preferential acceptance of low numbers of up to 100 shares per shareholder can be stipulated for the acquisition of shares offered.
The Management Board is authorized, with the consent of the
Supervisory Board, to use the shares acquired by virtue of this
authorization, earlier authorizations or otherwise acquired pursuant
to Sections 71ff German Stock Corporation Act (AktG) for all legally
permissible purposes, especially the following:
The shares can also be sold by means other than via the stock market or through an offering to all shareholders providing the cash
price paid for the shares at the time of the sale is not significantly
below the stock exchange price for similar shares in the company,
whereby the relevant stock market price within the meaning of the
above regulation is the mean of the closing prices for shares in
the company in xetra trading (or comparable successor system)
during the last five trading days before sale of the shares; in this
case, the number of shares to be sold may not exceed 10 % of the
share capital of the company at the time when the resolution was
passed by the Annual General Meeting today or – if lower – 10 %
of the registered capital of the company at the time of the sale
of the shares; this 10 % of the share capital limit includes those
shares issued during the term of validity of this authorization in
direct or corresponding application of Section 186 (3) clause 4 of
the German Stock Corporation Act (AktG) with simplified exclusion
of subscription rights; furthermore, this 10 % of the share capital
limit includes those shares issued to service convertible bonds with
conversion rights and/or option rights, where the convertible bonds
are issued during the term of validity of this authorization pursuant
to Section 186 (3) clause 4 of the German Stock Corporation Act
(AktG) excluding subscription rights.
The shares can be offered or transferred to third parties as part of
a merger of companies or acquisition of companies, parts of companies or participations or acquisition of other assets.
The shares can be used to meet conversion and/or option rights
and obligations in relation to convertible bonds or bonds with
warrants issued by the company or Group companies.
The shares can be called in without the call-in or its implementation requiring a further resolution of the Annual General Meeting.
The call-in will lead to a reduction of the capital.
In deviation from this, the Management Board can decide that the
share capital will not change as a result of the call-in pursuant to
Section 8 (3) of the German Stock Corporation Act (AktG). In this
case, the Management Board is authorized to amend the number
of shares in the Articles of Association. The authorizations can be
exercised once or on more occasions, separately or together, for all
or part of the volume of own shares acquired.
The subscription right of shareholders to these shares is excluded
to the extent that the shares are being used in accordance with the
above authorization.
GfK se does not have any compensation agreements with the
members of the Management Board and the employees in the
event of a takeover offer.
Media: The Media sector delivers information services on range,
intensity and type of media usage and acceptance in 30 countries in
Europe and the usa. The data source for the Media sector comprises
tv, radio, print and online media.
The services are directed at clients from media companies, agencies
and the branded goods industry. The range of available services
includes continuous, as well as special one-off studies and analyses.
Breakdown of growth of sales and income in %1)
+ 11.1
Total growth
+ 25.7
Growth from acquisitions
+ 0.2
+ 1.0
+ 7.3
Organic growth
+ 20.1
+ 3.6
Currency effects
+ 4.7
Sales
Income
2.4 Sectors: spotlight on consumers and markets
Proportion of sector sales to total sales in %1)
Custom Research: The Custom Research sector supplies information and consulting services for operational and strategic marketing decisions in over 80 countries worldwide.
Point of consumer is the data source for the Custom Research sector.
Custom Research offers a broad spectrum of tests and studies,
in particular for product and pricing policy, brand management,
communications, distribution and customer loyalty. In line with the
product lifecycle model, GfK monitors products and services from
development and launch through maturity to saturation phase.
Retail and Technology: Point of sale is the data source for the
Retail and Technology sector. The information and consulting
services are based on retail data from continuous surveys and
analyses of consumer goods and services in the retail sector in
more than 80 countries worldwide. The services comprise regular
surveys on the following market segments: automotive accessories
and parts, office communications, diy and garden, electrical
household appliances, photographic technology and optics, it,
fashion, telecommunications, tourism, consumer electronics and
entertainment media.
Custom Research
60.7
Retail and Technology
28.7
Other
0.4
MANAGEMENT REPORT
GfK offers its clients from the consumer goods industry, retail, media
and the service sector a comprehensive range of information and
consulting services in the three sectors Custom Research, Retail
and Technology and Media. The sectors are based on the respective
sources of the data required for the offering: point of consumers,
point of sale and point of media.
Media
10.3
Proportion of sector income to total income in %1)
Custom Research
34.2
61.5
Media
8.4
“Other” – 4.1 % not taken into account on the chart
Margin by sector in %
+ 5.6
Custom Research
+ 8.0
+ 29.4
+30.7
+ 13.1
Media
+ 11.7
Actual 2009
Actual 2010
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GfK_79
Economic and financial development: sectors
Other: The sectors are supplemented by the Other division, which,
in particular, covers GfK’s central services for its subsidiaries and
other services not related to market research. The division includes
parts of GfK Austria, parts of GfK cr Group usa, parts of GfK iss,
parts of GfK Malta Group and parts of GfK Switzerland, GfK Data
Services, GfK Marketing Sciences and departments of GfK Group
Services.
Custom Research: key figures1)
In eur million
2009
2010
Changes
in %
Sales
709.2
785.6
+ 10.8
39.5
63.2
+ 59.9
5.6
8.0
5,837
6,018
Income
Margin in %
Number of employees
+ 2.52)
+ 3.1
2) Percentage points
Economic development: impact of the crisis more than offset
All three GfK sectors increased their sales in financial year 2010.
The Custom Research and Retail and Technology sectors recorded
significant increases in income, with Retail and Technology further
improving its already high margin.
Custom Research:
breakdown of growth of sales and income in %1)
+ 10.8
Total growth
+ 59.9
MANAGEMENT REPORT
Custom Research: Custom Research is the sector with the highest
sales in the GfK Group and in 2010 it overcame the financial and
economic crisis and substantially increased sales to eur 785.6 million. Sales were up 10.8 % year-on-year, with 6.4 percentage points
of this attributable to organic growth. One key factor driving this
pleasing growth in sales was the upturn in business with clients
from the automotive and financial market sectors. Further growth
was generated in financial year 2010 in it and telecommunications,
as well as with new clients and market research instruments such
as the GfK Media Efficiency Panel. The GfK Media Efficiency Panel
is a single source approach that is unique worldwide and combines
exposure to advertising on the internet and tv with the purchase of
fast moving consumer goods. This makes it possible to evaluate the
sales success of tv and online advertising campaigns. Development
was particularly positive in the Western Europe/Middle East/Africa
region, which recorded the strongest sales growth. Substantial
increases were also seen in the Germany, Central and Eastern
Europe, and Latin America regions. Furthermore, acquisitions added
0.6 percentage points, while currency effects had a positive impact
on sales with growth of 3.7 percentage points. GfK also strengthened
its network in the usa with the acquisition of consultancy company
Interscope, one of the leading specialists in brand positioning in
retail.
In terms of income, the sector recorded the highest growth rate
with a disproportionately strong rise of 59.9 % to eur 63.2 million.
The margin improved in financial year 2010 from 5.6 % to 8.0 %.
Alongside positive development in the economic framework conditions, which led to higher capacity utilization, the biss fitness and
efficiency program also contributed to the income increase. At 54.1
percentage points, nearly all of the expansion in income is based on
organic growth. In addition, currency influences added 4.9 percentage points to this positive development, while 0.9 percentage points
stemmed from acquisition-related changes.
80_GfK
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+ 0.6
+ 0.9
Organic growth
+ 6.4
+ 54.1
Currency effects
+ 3.7
+ 4.9
Sales
Income
Retail and Technology: Once again in 2010, the sector continued
the success recorded in previous years, with Retail and Technology
sales increasing by eur 45.0 million to eur 370.8 million. Organic
growth accounted for 10.8 percentage points of the overall expansion of 13.8 %. Currency influences contributed 3.6 percentage
points to growth, while acquisitions accounted for a decline in sales
of 0.6 %. This effect is due to the transfer of surveys for fast moving
consumer goods from GfK Switzerland to The Nielsen Company.
The GfK StarTrack global production and reporting system facilitates cost-effective production to the same standards worldwide
and forms the basis for continuous sales growth. Development
in 2010 was positive in all core segments, such as consumer
electronics, telecommunications, it, photographic technology and
major and small domestic appliances. Telecommunications and
small domestic appliances recorded the highest growth rates here.
There was also dynamic growth in the new tourism and fashion
segments. In addition, higher order volumes in business activities
with major clients have been achieved. All GfK regions contributed
to the growth in sales, with a major share achieved in the Asia and
the Pacific region. After a decline in sales in the previous year, the
Western Europe/Middle East/Africa region also reported positive
growth rates again.
In financial year 2010, the sector, which has the highest income in
the GfK Group, significantly increased its income by 18.8 % to eur
113.9 million. At 13.4 percentage points, growth was largely organic.
Currency effects increased income by 4.2% and acquisitions by
1.1 %. The margin rose again from the previous year’s already very
high level of 29.4 % to an excellent 30.7 %.
Retail and Technology: key figures1)
In eur million
2009
2010
Change
in %
Sales
325.8
370.8
+ 13.8
Income
95.9
113.9
+ 18.8
Margin in %
29.4
30.7
+ 1.32)
3,224
3,507
+ 8.8
Number of employees
At eur 15.6 million, the level of income in financial year 2010 did not
match the figure in the previous year (eur 16.6 million). In organic
terms, the decline in income amounted to – 11.1 percentage points,
while currency effects improved income by 5.2 percentage points.
This decline in income was primarily due to increased expenses
for the roll-out of the new measurement technology in Germany
and the resultant rise in scheduled depreciation for this and the
special production and evaluation software.
To secure existing business in the long term and to develop new
business potential, an additional eur 4 million was dedicated
to the new GfK AdMeasure product from subsidiary GfK mri as
well as to stable panel operations using the new measurement
technology in Germany. In financial year 2010, the sector achieved
a margin of 11.7 % (2009: 13.1 %).
Media: key figures1)
Retail and Technology:
+ 13.8
Total growth
+ 18.8
– 0.6
In eur million
2009
2010
Change
in %
Sales
+ 5.3
126.4
133.1
Income
16.6
15.6
– 5.8
Margin in %
13.1
11.7
– 1.42)
Number of employees
552
554
+ 0.4
+ 1.1
+ 10.8
Organic growth
+ 13.4
+ 3.6
+ 4.2
Sales
Income
Media:
MANAGEMENT REPORT
Currency effects
+ 5.3
Total growth
– 5.8
0.0
0.0
Media: The ongoing growth trend of the first three quarters of
2010 continued in the fourth quarter. Sales in the sector increased
year-on-year by 5.3 % to eur 133.1 million, with organic growth
contributing 2.1 percentage points and positive currency effects
3.2 percentage points.
In the North America and Germany regions as well as Central and
Eastern Europe, development was very positive. The Media sector
achieved increased sales with clients in the tv segment in particular.
North American subsidiary GfK mri recorded a year-on-year rise in
incoming orders in the print segment following the market launch of
the new GfK AdMeasure product. In Germany, the new, expanded
measurement technology tc Score, which was launched in 2009 in
the GfK Fernsehforschung tv panel, was the main contributor to
higher sales. Surveys carried out in the multi-media studies segment included, amongst others, one for the British Broadcasting
Corporation (bbc) covering internet usage and other media channels
as well as tv. In addition, the tv audience measurement contract in
the Netherlands was extended again. Increased incoming orders in
the region Central and Eastern Europe, especially in the tv and print
sector, also contributed to the positive development in the financial
year.
+ 2.1
Organic growth
– 11.1
Currency effects
+ 3.2
+ 5.2
Sales
Income
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GfK_81
Economic and financial development: regions
Other: Sales in this division amounted to eur 4.7 million in the
reporting period (2009: eur 3.1 million). The income shortfall
stood at eur 7.7 million (2009: eur 4.8 million). This was due to
higher expenses for personnel and consulting services as well as
general business costs, especially in Central Services.
The number of employees rose in the Other division in financial
year 2010 by 22 to 467 full-time posts.
Other: key figures1)
In eur million
Sales
Income
Number of employees
2009
2010
Change
in %
3.1
4.7
+ 50.0
– 4.8
– 7.7
– 60.0
445
467
+ 4.9
2.5 Regions: growth in all regions
The GfK Group’s network of subsidiaries covers over 100 countries
worldwide. In geographic terms, the business is divided into six
regions: Germany, Western Europe/Middle East/Africa, Central
and Eastern Europe, North America, Latin America as well as Asia
and the Pacific:
MANAGEMENT REPORT
• Germany – Founded in 1934, GfK has been conducting research
in its home market for 76 years. Since the 1960s, GfK has been
extending its international network from its base in Germany.
• Western Europe/Middle East/Africa – GfK has been active in
Western Europe since the 1960s and covers 16 countries in total.
GfK is represented in 13 countries in the Middle East and in a
total of 15 countries in Africa.
• Central and Eastern Europe – GfK established its first subsidiary
here in 1989. Today, GfK covers 22 countries.
• North America – GfK was first represented in the usa in 1999
with a subsidiary. In 2005, GfK also entered the market in Canada.
• Latin America – Having started with its own company in Brazil in
2002, GfK now operates in 13 countries.
• Asia and the Pacific – This region joined the GfK network in 1985.
In 2010, GfK covered 20 countries.
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Changes in the GfK network
Investment
activity
Stake
changes
in %
Sector
Region
Adimark
Share
increase
From 65.9
to 100
Custom
Research
Latin America
Cosmetics Panel
Acquisition 100
Retail and
Technology
Asia and the
Pacific
GfK Audience Research
Bulgaria
Disposal
From
100 to 0
Media
GfK Kleiman Sygnos
Share
increase
From 80
to 90
Custom
Research
Central and
Eastern
Europe
Latin America
GfK Kynetec
Share
increase
From 75
to 100
Custom
Research
GfK Mode
Share
increase
From 51
to 100
Custom
Research
North
America and
Western
Europe/
Middle East/
Africa
Asia and the
Pacific
Interscope
Acquisition 100
Custom
Research
North
America
Shopping Brasil
Share
increase
From 51
to 86
Retail and
Technology
Latin America
SirValUse & nurago
Participation
40
Custom
Research
Germany
Watch Media (Cyprus)
Share
increase
From 25
to 49
Media
Western
Europe/
Middle East/
Africa
Company
GfK recorded increased sales in all regions in financial year 2010,
with particularly strong growth in the Latin America, Central and
Eastern Europe and Asia and the Pacific regions. Together these
regions accounted for around 19 % of Group sales. In the fastgrowing bric countries, GfK has already established major market
positions which it expanded in 2010.
While growth in the North America region was driven by currency
effects, Germany showed a substantial recovery following the
financial and economic crisis.
Germany: In financial year 2010, sales by the GfK companies
in Germany rose by 13.1 % to eur 340.8 million. This positive
development was primarily attributable to the Custom Research
and Retail and Technology sectors. GfK is the clear market leader
in Germany.
Central and Eastern Europe: The GfK companies in the region
achieved sales totaling eur 89.7 million in financial year 2010, compared with eur 71.7 million in the previous year. In local currency,
sales were up by 20.7 %. The currency effect amounted to 4.5 percentage points. Overall, sales increased by 25.2 %.
Germany: key figures1)
Central and Eastern Europe: key figures1)
2009
2010
Change
in %
Sales
301.3
340.8
+ 13.1
Number of employees
1,790
1,831
+ 2.3
In eur million
Sales
Number of employees
Germany:
breakdown of sales growth in %1)
Central and Eastern Europe:
Total growth
Currency effects
Change
in %
71.7
89.7
+ 25.2
1,515
1,657
+ 9.4
Total growth
+ 13.1
+ 25.2
0.0
0.0
+ 20.7
Organic growth
+ 13.1
Organic growth
2010
2009
Currency effects
0.0
+ 4.5
Western Europe/Middle East/Africa: As before, GfK generated the
highest proportion of sales in this region in financial year 2010.
Overall, sales here rose by 5.4 % to eur 483.0 million. Organic
growth added 3.3 percentage points to sales, while currency effects
accounted for 2.5 percentage points.
North America: GfK generated sales of eur 219.3 million in North
America, compared with eur 207.2 million in financial year 2009.
For the full year, positive currency effects increased sales by
6.0 percentage points. In organic terms, sales remained almost
unchanged during the reporting period, at – 0.8 percentage points.
This is primarily due to reduced HealthCare activities in the Custom
Research sector. Acquisitions offset this effect with 0.7 percentage
points.
Western Europe/Middle East/Africa: key figures1)
In eur million
2009
2010
Change
in %
Sales
458.1
483.0
+ 5.4
Number of employees
3,416
3,463
+ 1.4
North America: key figures1)
In eur million
2009
2010
Change
in %
Sales
207.2
219.3
+ 5.9
936
931
– 0.6
Number of employees
Western Europe/Middle East/Africa:
Total growth
Organic growth
Currency effects
MANAGEMENT REPORT
In eur million
+ 5.4
North America:
– 0.4
+ 3.3
+ 2.5
Total growth
+ 5.9
Organic growth
Currency effects
+ 0.7
– 0.8
+ 6.0
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GfK_83
The GfK regions
MANAGEMENT REPORT
The G f K GrOup's global presence
Moscow
London
—
The six GfK regions:
Germany
Western Europe/Middle East/Africa
North America
Latin America
—
84_GfK
< < back
Frankfurt am Main
MANAGEMENT REPORT
Dubai
New York
Singapore
forward > >
GfK_85
Research and development
Latin America: Compared to the previous year, the GfK Group
increased its sales by 39.5 % to eur 54.9 million in the Latin
America region during the reporting period. Currency effects added
12.0 percentage points to sales, while acquisitions increased sales by
5.4 percentage points. The region achieved the highest organic sales
growth in the GfK Group.
Latin America: key figures1)
In eur million
2009
2010
Change
in %
Sales
39.4
54.9
+ 39.5
Number of employees
665
739
+ 11.1
Latin America:
Total growth
+39.5
+ 5.4
+ 22.1
Organic growth
+ 12.0
Currency effects
MANAGEMENT REPORT
Asia and the Pacific: Sales rose by 22.5 % from eur 86.9 million in
2009 to eur 106.5 million in 2010. Consequently, the region broke
through the eur 100 million barrier for the first time. Organic
growth in sales stood at 9.1 percentage points. Acquisitions
increased sales by 0.9 percentage points, while positive currency
effects added 12.5 percentage points.
1)
Asia and the Pacific: key figures
In eur million
Sales
Number of employees
2009
2010
Change
in %
86.9
106.5
+ 22.5
1,736
1,926
+ 11.0
Asia and the Pacific:
Total growth
Organic growth
Currency effects
86_GfK
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+ 22.5
+ 0.9
+ 9.1
+ 12.5
—
3. research and development
Market research depends on innovation. GfK takes a proactive
approach to meeting this demand and has assumed a leading role
amongst its competitors in terms of the quality, originality and
efficiency of its instruments and methods. Many of GfK’s research
and development projects are planned and executed in cooperation with its clients. A large share of the development work for
new methods and instruments is carried out by GfK’s Method and
Product Development department in Nuremberg, Germany.
In light of the Group strategy, GfK’s research and development
currently focuses on expanding its offering for digital media
measurement. However, GfK has by no means been neglecting the
traditional areas of market research and has, in fact, strengthened
its competencies in this respect. In 2010, the following research
projects were developed further or launched on the market by GfK:
3.1 Custom Research
Within the Custom Research sector in Germany, GfK Panel Services
equipped the participants of its GfK Media Efficiency Panel (GfK
mep) with modified mobile phones in April. These enable participants’ exposure to tv advertising to be registered through sound
recognition. The GfK Media Efficiency Panel uses a globally unique
single-source approach, which links advertising exposure on the
internet, and more recently through the television, to the purchase of
fmcgs. As a result, GfK is able to evaluate the sales impact of online
and tv advertising campaigns. The GfK Media Efficiency Panel is
based on GfK’s household panel, which comprises approximately
30,000 German households that report their purchases on a daily
basis. In addition, the GfK mep is also used in the Netherlands and
in partnership with Kantar WorldPanel in the uk. GfK is currently
assessing potential areas of application in France, Japan and the usa.
GfK WebValue allows GfK to offer an up-to-date insight into all relevant key figures for German households’ internet use on a monthly
basis. The tool measures the reaches of around 20,000 domains and
also provides detailed analyses for more than 3,000 domains. GfK
WebValue identifies which pages are visited, and in what order, by
various target and lifestyle groups, and reveals correlations between
the use of the internet and consumption of other media. In the
medium term, this new tool is set to be implemented in all countries where there is a GfK Media Efficiency Panel.
GfK MarketObsurvey.dx enables GfK to analyze the online behavior
of specific target groups. The special feature of this instrument is
that it combines both qualitative and quantitative data derived from
monitoring and surveys. Clients can therefore gain a more in-depth
insight into the usage patterns of their target group, their motives
and strategies when searching for information, and the latest
trends: what weighting do different online services have in users’
research? How do users become aware of an online service? How
do they behave on the websites of competitors? What role do advertising, search engines and user opinions play? And how do users
evaluate these experiences? What do they like and dislike? GfK
MarketObsurvey.dx identifies relevant websites and the interaction
between the research and opinion-forming processes. Users can
also be asked for their situation-specific opinions and assessments,
whether in the form of closed questions, rating scales, open comments or a diary. In relation to specific websites, findings such as
user frequency, dwell time and intensity are recorded within previously defined categories. By categorizing relevant websites into
different user groups, GfK can chart where users find information,
purchase products or make recommendations. The technology used
as a basis for this, which is provided by nurago, can be applied in
usability and media research for exploring various issues which are
not limited in terms of time or to the company’s own website.
GfK SiteObsurvey.dx combines the monitoring of natural website
surfing behavior with targeted satisfaction surveys in order to analyze the strengths and weaknesses of an online presence. This allows
a website’s limitations or barriers to be revealed. Clients can use the
findings they obtain to improve the user experience and conversion
rate for their website. Alongside ad hoc surveys, GfK can use this
method to continuously measure user experience. Data obtained by
GfK records to what extent individual objectives have been reached,
both objectively and subjectively, how different motives impact
on user satisfaction, the needs and preference of the user and the
impact of user experience on the perception of a brand.
GfK ExposureEffects.dx allows clients to evaluate online campaigns and compare their current exposure within a target group
with the media plan. By using cookies in the online panels, GfK
ExposureEffects.dx can identify which consumer profiles have been
reached by particular websites featuring an advertising campaign.
The comparison between consumers who have been selected for
a specific campaign and those who have not been chosen allows
advertising impact to be measured effectively. In conjunction with
a subsequent survey of users who have been reached by the campaign, conclusions about perceptions of advertising can be drawn.
GfK Marktforschung uses the GfK Ceres tool to investigate the online
information exchange between consumers about different brands.
To achieve this, forum contributions are evaluated and researchers
subsequently identify what topics have been discussed and which
product attributes were assessed positively or negatively. This
allows GfK to determine trends at a very early stage and evaluate
authentic information about majority opinion without any interviewer
interference. In order to establish the impact of online social media
platforms such as Facebook and Twitter on the development of
certain products’ brand images, this data is combined with the new
GfK Brand Buzz Miner dx. This new approach establishes the impact
that online buzz, created through information exchange on social
networks, has on brand image and consumers’ purchasing behavior.
Previously, it was difficult for companies to evaluate new technical concepts or new technology applications prior to their market
launch, as there were no corresponding comparative tests in the
respective categories. Using the newly developed GfK TechTest,
it is now possible to compare new concepts and ideas with similar
concepts and existing products prior to product development. This
facilitates swift and effective feedback to support clients during
important developments and market launches and, at the same time,
save on development costs. So how does it work? If a company has
an idea, a GfK graphic designer prepares a storyboard. GfK then
sets up an online survey with the relevant target group to test the
appeal and uniqueness of the idea, its importance and credibility,
as well as how willing potential customers would be to pay for it.
GfK TechTest enables marketing and development departments to
quickly assess whether a new product can be successfully launched
in the market. GfK evaluates every new concept in the context of
similar offerings to support clients in their decisions for or against
a market launch and makes recommendations regarding the best
introductory price and optimal product positioning. Products
already in the market can also be evaluated using GfK TechTest,
for example to specify a new price strategy or relaunch a product.
GfK TechTest was developed in the uk in 2009 and launched in
Germany and the usa in 2010. Other countries will follow in 2011.
forward > >
MANAGEMENT REPORT
In partnership with SirValUse, GfK has developed an index to
represent a website’s usage intensity as a single figure: the
GfK WebValue Index (wvi). In contrast to traditional reach measurement, the index provides data on qualitative usage characteristics
– e.g. retention (loyalty), power user, bounce rate, page impressions
and length of visit – for 5,000 different websites at present. The
index value can be between 0 and 100, with the GfK wvi increasing
the more intensively a website is used. With this information source,
GfK and SirValUse are establishing a currency that allows websites
to be qualitatively compared, both within an industry and across
different industries. Reports are currently compiled on a quarterly
basis for the automotive, e-commerce, games and travel industries.
The objective is to include all industries that are represented online.
GfK_87
MANAGEMENT REPORT
G f K SiteObsurvey.dx
GfK SiteObsurvey.dx analyzes the strengths of a website
—
GfK SiteObsurvey.dx combines the monitoring of natural
website surfing behavior with targeted satisfaction
surveys in order to analyze the strengths and weaknesses
of an online presence. This allows a website’s limitations
or barriers to be revealed. Data obtained by GfK records
to what extent individual goals have been reached, both
objectively and subjectively, and how different motives
impact on user satisfaction.
—
88_GfK
< < back
...and its weaknesses.
Qualitative market researchers are often confronted with the problem
that participants in group discussions tend to rationalize and justify
their attitudes, which does not actually bring to light what truly moves,
drives and influences them. In this respect, GfK Inside Journey
offers a valuable addition to the qualitative method range. This new
practice can be applied within focus groups and is based on dialogic
introspection, a method that was developed under Professor Kleining
of Hamburger Forschungswerkstatt (Hamburg Research Workshop)
and has been modified for application in market research by GfK.
For this method, participants engage with a topic or stimulus for
much longer and more intensively and precisely observe their own
reactions and perceptions. They subsequently report their reactions
without being asked any questions or influenced in any way. This
generates exceptionally in-depth, unadulterated and multifaceted
insights into consumers’ experiences. This year, the process has
been successfully implemented in countries as wide-ranging as
China, Mexico, India, Russia, Egypt and the usa.
The GfK Automotive Pricing Tool (apt) is a further development of
the traditional pricing approaches and is specifically tailored to the
special features of the automotive market. The tool comprises five
modules, which cover the different aspects of price determination.
One module, GfK coreprice, is a conjoint-based instrument for the
pricing of car models in the competitive environment. The second
core module, GfK dyo Cconcept, relates to the pricing of equipment
parts, enabling clients to gain information about price optimization
of equipment ranges. The other modules relate to questions of equipment packaging and the scope of standard equipment for cars. GfK
apt has so far mainly been coordinated from Germany and applied in
Europe, but will be rolled out internationally from 2011. Two expert
teams are being established in the usa and China, and these will
support GfK clients on the American continent and in Asia with
pricing research.
Since 2010, the GfK roi Evaluator has allowed fmcg clients to
evaluate the sales impact of the individual components making up a
marketing campaign prior to nationwide implementation in the test
market GfK MarketingLab®. Clients obtain precise information, in
the form of driver analysis, about the current return on investment
of each individual marketing activity. This allows them to optimize
the sales potential of their marketing mix. Through this method,
GfK is able to provide answers to the following questions: how high
will the overall sales increase be as a result of the new marketing
campaign? And how strong is the impact of each individual measure within the marketing mix?
3.2 Retail and Technology
GfK Network Intelligence Solution (GfK nis) is a new research methodology based on the analysis of information transiting on the internet
protocol (ip) flow on mobile networks. This innovative technology
makes it possible to monitor mobile internet behavior and exposure to
advertising campaigns in real time. Analysis is then carried out via the
GfK StarTrack online portal.
3.3 Media
From April to November 2010, GfK mri in the usa explored the
most effective way to survey magazine readers on their use of
digital formats. The aim is to add new, appropriate questions on
the topic of “digital reading” to the half-yearly magazine readership
survey “The Survey of the American Consumer”. The pilot study is
based on 1,000 in-home interviews with us consumers. In terms of
content, the survey focuses on the consumption of print magazines,
magazine websites, electronic magazines, and mobile magazines,
which can be accessed via mobile phones, smartphones or mobile
applications, as well as the use of e-readers such as the new iPad.
GfK will be able to use the most conclusive statements to ensure
that future surveys use wording that is intelligible and clear to all.
Intomart GfK, based in the Netherlands, is further expanding its
Appreciation Panel, an evaluation panel for tv, radio and internet.
The system is structured in such a way that panel members are
asked about their daily tv, radio and internet consumption and
provide their assessment and perception of the content. The panel
is currently active in the Netherlands, the uk, Germany and Ireland.
MANAGEMENT REPORT
New software developed by GfK GeoMarketing, GfK RegioGraph
Strategy, is the big brother to the previous versions, GfK RegioGraph Analysis and GfK RegioGraph Planning. This software opens
up entirely new areas of application, enabling companies in the
fields of retail sales and industry to evaluate comprehensive data on
areas of potential, at both regional and even more localized levels,
on digital maps. This software solution seamlessly combines GfK’s
entire regional database with software-supported map analyses.
The official product launch of GfK RegioGraph Strategy took place
at CeBIT 2011.
The Universal Meter System (ums) is a complete media measuring instrument, which elevates the standard of media research
to an entirely new level. This combination of different measuring
technologies in a central measuring instrument aims to incorporate
as many electronic types of media consumption as possible. The
central element is the fixed meter device (umx), which records all
household media consumption through the television. By integrating the Mediawatch portable meter, which is worn by the participant and measures individual radio, tv and print consumption,
GfK can also measure out-of-home consumption in addition to the
media consumption in the home. The internet meter usx measures
media consumption on the computer, as well as internet usage in
general, using a special usb stick. Finally, GfK uses an additional
device, the ip Sniffer, to register the tcp/ip data flow from ip set-top
boxes. This allows information about channels, time-shift tv and
video on demand to be collected.
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GfK_89
The GfK Automotive Pricing Tool (apt) is a further development of the traditional pricing approaches and is specifically
tailored to the special features of the automotive market. The
tool comprises five modules, which cover the different aspects
of price determination.
—
90_GfK
< < back
MODULE 5
MODULE 3
MODULE 4
—
MODULE 2
MODULE 1
MANAGEMENT REPORT
G f K automotive pricing tool
—
4.6 Employees
4. human resources
4.1 Global employee survey
In October 2010, the third global “Employee Engagement Survey”
was carried out. 82 % of all GfK employees worldwide took part
in the survey, demonstrating the high level of acceptance of this
initiative. Various measures were implemented throughout 2010
to promote engagement at global and local level. Overall, the
Employee Engagement Index (eei) of the GfK Group remained
constant, although many GfK companies recorded a significant rise
on their previous eei.
4.2 Succession Management
The global roll-out of GfK’s Succession Management system, which
is supported by a network of certified hr experts, progressed swiftly
in 2010. The aim is to identify employees who could take on a higher
level of responsibility in the future. To achieve this, several hundred
interviews were conducted in 2010.
As at the end of financial year 2010, the number of employees in
the GfK Group amounted to 10,546. This is a rise of 488 employees,
or 4.9 %, on the previous year, with 0.7 percentage points of this
increase resulting from acquisitions and new consolidations.
8,715 members of staff were employed at foreign GfK companies,
an increase of 447 on 2009. In total, 82.6 % of GfK employees
worked outside Germany, and internationalization therefore
remained at a very high level compared with the previous year.
The Asia and the Pacific and Central and Eastern Europe regions
recorded the biggest increase in personnel numbers. In Asia and the
Pacific, the expansion of resources in Pakistan for a coding project
in the Retail and Technology sector and the transfer of employees
from a panel acquisition in China contributed to the rise. In Latin
America, a newly consolidated company in Peru, in particular led
to higher personnel numbers. There were only marginal changes
in the number of employees in other regions.
At sector level, the increase in personnel was attributable to Retail and
Technology and Custom Research, with the number of employees in
the Media sector remaining virtually unchanged on the previous year.
4.3 Retention
Number of employees by sector in %1)
Custom Research
57.1
Other
4.4
4.4 Diversity
At GfK, diversity is the inclusion of different thinking, experiences
and backgrounds across all entities and organizational levels. For
GfK, diversity means more then gender and race: it’s about the
experiences, expertise and knowledge that a person has gained.
A “diverse” workforce not only enriches GfK’s corporate culture,
but also broadens the talent base, supports GfK’s global growth
and the company’s image as an attractive employer. GfK has
already achieved a great deal in this regard. More than 80 % of
our employees are based outside Germany and women make up
54 % of our global workforce. At senior and middle management
levels, the percentage of women amounts to around 30 % and
women make up 50 % of GfK’s Management Board.
33.3
MANAGEMENT REPORT
Given the positive economic development in the industry, an increased
willingness to change companies is to be expected. Consequently, GfK
has created a comprehensive set of retention tools. Targeted action
plans are drawn up on the basis of an analysis of individual motives
for resigning.
Media
5.3
Total 100% 10,546 full-time positions
Number of employees by region in %1)
Germany
17.4
Western Europe/
Middle East/Africa
32.8
Latin America
7.0
15.7
North America
8.8
Asia and the Pacific
18.3
Total 100% 10,546 full-time positions
4.5 Further training and organizational development
In 2010, a range of initiatives to promote further training and
personnel development were launched within GfK. The Retail and
Technology sector introduced its sophisticated e-Learning system
“Path to Knowledge” worldwide. The Custom Research Academy
was also re-launched with a focus on strategically important training
initiatives.
4.7 Staff turnover
The staff turnover rate at the GfK Group expresses the number of
employee resignations in relation to the average number of employees in the Group in the financial year. In 2010, this ratio climbed by
3.5 percentage points to 12.8 % (2009: 9.3 %).
After staff turnover reduced considerably in 2009 as a result of the
global financial and economic crisis, the economic recovery led to
an upturn in the labor market. Nevertheless, the staff turnover rate
remained below the level recorded before the crisis (2008: 13.5 %).
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Organization and administration
4.8 Total remuneration and shares of the Management Board
and Supervisory Board
Information on the remuneration of the Management and
Supervisory Boards and their shareholdings is given in the tables
and explanations in the remuneration report in the Corporate
Governance report on page 21ff.
There were no loans or advances to members of the Management
and Supervisory Boards.
—
5. organization and administration
The Group has faced the challenges posed by increasing globalization
and has put in place an organizational structure that enables the local
GfK companies to respond quickly and efficiently to opportunities in
the market. GfK se functions both as the holding company and an
operating unit. In Germany, the GfK Group’s network encompasses
the parent company as well as ten consolidated subsidiaries and one
associated company and six non-consolidated subsidiaries. Worldwide, GfK has 152 consolidated subsidiaries and 14 associated companies, three minority interests and 40 non-consolidated subsidiaries.
The Group is based in Nuremberg.
5.1 Management Board: sector-based management
—
6. corporate governance statement in accordance
with section 289 a of the german commercial
code (hgb)
The management of GfK se is committed to increasing the value
added of the company on a responsible, transparent and sustained
basis. This includes policy principles and guidelines, as well as
cooperation based on trust.
By adopting the Corporate Governance Code, GfK se demonstrates
that it complies with the rules of good corporate governance and
monitoring and is transparent in its relations with national and
international investors.
The Corporate Governance Statement, including the full version of
the Declaration of Compliance, as well as details of corporate governance practices and a description of the Code of Conduct of the
Management Board and Supervisory Board are published under:
http://www.gfk.com/group/investor/corporate_guidelines/
declaration_on_corporate_governance/index.en.html
The Corporate Governance report can be found on pages 18ff of
this Annual Report.
—
MANAGEMENT REPORT
7. purchasing
The GK Group is run by a Management Board consisting of six
members. In financial year 2010, Dr. Gerhard Hausruckinger
joined as the successor to Dr. Gérard Hermet. As a result, from
September to the end of the year the Management Board comprised seven members.
The Chief Executive Officer (ceo), Professor Dr. Klaus L. Wübbenhorst,
is responsible for Strategy, Internal Audit, Marketing Sciences,
Corporate Communications and it Services. The Chief Financial
Officer (cfo), Pamela Knapp, is responsible for Finance, Accounting,
Controlling, Tax, Mergers and Acquisitions, Legal and Compliance,
Human Resources and Central Services.
The role of Chief Operating Officer (coo) for the three sectors
Custom Research, Retail and Technology and Media is performed
at Management Board level as follows:
The moveIT project, which was set up for it products and services in
2008, will be completed in 2011. This is aimed at providing a global
it infrastructure for GfK and standardizing and consolidating services
in the field of it. Three computing centers act as the central service
provider for all companies in the GfK Group. Purchasing of it and
telecommunications infrastructure and products is carried out under
centrally negotiated terms used by all companies in the GfK Group.
The Custom Research sector is headed up jointly by three members
of the Management Board: Petra Heinlein, Debra A. Pruent and
Wilhelm R. Wessels. Up to the end of 2010, the Retail and Technology
sector was headed by Dr. Gérard Hermet. As of September 1, 2010, he
was jointly responsible for the sector with Dr. Gerhard Hausruckinger.
The Media sector is managed by Wilhelm R. Wessels.
An online purchasing tool for office supplies has been available
since the end of 2010.
5.2 Administration: Group-wide functions centralized
The same applies for real estate management, where a centralized
it-based contract management procedure was introduced together
with a global provider. In the next step, contracts are continually
reviewed and optimization potential identified using ongoing portfolio analysis.
In Group Services in the GfK Group, the Finance, Legal Services
and Transactions, Human Resources, Central Services and
Corporate Communications departments fulfill centralized functions
throughout the Group. The Finance department includes Group
Accounting, Financial Accounting, Operational Accounting, Group
Controlling, Tax and Group Treasury. The Legal Services and
Transactions department deals with legal matters and compliance.
92_GfK
Purchasing traditional capital goods is of minor importance for GfK
and its business activities. The purchasing processes for which
centralized purchasing or uniform standards are practical comprise
it products and services, travel, office space and other items of
standard office equipment. The Global Procurement Guidelines and
Global Travel Policy were implemented to ensure uniform processes
worldwide.
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At the start of 2011, GfK began work to optimize its worldwide
travel management with a travel agent. Implementation of an online
booking tool that can be used worldwide, coupled with additional
local support in the various countries, should lead to optimization of
terms and conditions and hence a reduction in costs.
All other purchasing processes are regulated in a set of guidelines
and the individual departments are responsible for carrying out
these processes in compliance with the specified regulations.
—
9.2 Marketing: spotlight on industry events
8. environment
—
9. corporate communications and marketing
Corporate Communications is responsible Group-wide for the
GfK Group’s communications. The division is divided into three
departments: Press Relations, Internal Communications/Corporate
Identity and Investor Relations. The Investor Relations department
and its duties are outlined separately in the chapter “GfK Shares”
(pages 27ff) in the Image section of this Annual Report.
9.1 Communications: international networking
Communications using digital media and international networking
are becoming increasingly important for GfK. Of the press releases
published on the Group’s international website www.gfk.com, 31 %
are focused on Germany, while 60 % center on other countries or
the findings of multi-country surveys. A year earlier, press releases
from Germany still accounted for 43 %, with a total of 30 % attributable to press releases from other countries and multi-country
surveys. The three sectors Custom Research, Retail and Technology
and Media internationally linked and centralized their communications and marketing in 2010. In the Press Relations division, this is
reflected in the adjusted organizational structure, which is tailored
to the needs of the three sectors, thereby strengthening the communications interface with operating activities.
In 2010, the use of digital media was expanded and four videos of
ceo Professor Dr. Klaus L. Wübbenhorst talking about GfK’s financial figures were published on the Group website for the first time.
Corporate Communications also began to introduce social media
channels on GfK websites.
The GfK Group subsidiaries conduct their marketing activities independently but in close consultation with Corporate Communications.
Trade fairs and conferences are a key element of marketing within
the GfK Group. GfK appeared as the main sponsor at the major
international market research trade fairs such as the arf (Advertising Research Foundation) Annual Convention in New York and the
Annual Conference of market research association esomar in Athens.
GfK companies worldwide also support national industry events,
presenting papers and holding workshops on behalf of GfK.
—
10. internal control system for accounting
The GfK Group’s internal control and risk management system comprises the principles, structures, processes and measures introduced
by the company management which are set to ensure the commercial success of the company, the correctness and reliability of
internal and external financial reporting as well as compliance with
the appropriate laws and standards.
Control environment and control activities
The control environment of the GfK Group is essentially characterized by the existing rules of conduct and the resultant attitudes
and actions of each employee. The foundation on which this conduct is based is derived from the company guidelines with which
every employee undertakes to comply (Code of Conduct, Corporate
Values). Implementing these guidelines ensures responsible corporate governance and adherence to fundamental ethical and moral
values in the workplace. The extensive guidelines also represent
another essential element of the internal control environment.
These guidelines standardize the main financial processes in the
GfK Group to ensure the quality of working results remains high.
MANAGEMENT REPORT
The careful and responsible use of natural resources is important to
the GfK Group. Through internal guidelines and recommendations,
all employees are therefore urged to optimize consumption and
observe the principles of environmental protection when carrying
out their business activities and using consumables. The Central
Services and it Services departments are responsible for the purchase and appropriate disposal of materials in Germany. Outside
Germany, the individual GfK companies are responsible for these
activities themselves.
Internal Audit plays an important role in this regard. In addition
to regular auditing of the appropriateness of and compliance with
guidelines and measures, Internal Audit makes recommendations to
optimize existing processes (best practice).
Corporate Communications produced a total of eleven in-house
communications videos for employees. The topics covered included
ceo webcasts on financial figures, GfK’s brand positioning and
strategy, and compliance. Corporate Communications informed
employees of news throughout the Group in 33 international and
15 German newsletters sent out by email.
In December, GfK published Social Media Guidelines offering guidance on how employees can appropriately represent the company
in social networks, blogs, forums, online lexica and microblogging
services, as well as photo and video platforms.
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Opportunity and risk position
Whistleblowing – taking the initiative: GfK encourages all staff to
report any actual or suspected infringements of any statutory or
internal regulations. Staff members can contact their superiors,
GfK se Human Resources or GfK se Internal Audit. If employees do
not wish to use these channels, they can also make an anonymous
report to an external ombudsman under the terms of GfK’s whistleblowing regulations.
and financial management. This ensures compliance with guidelines
and internal processes and at the same time, the decisions taken
are practical decisions from both an operational and financial point
of view. These decisions and the associated approvals must also be
documented.
Risk monitoring at GfK is carried out on a continuous basis. Each
employee is responsible for monitoring risk in his or her environment. For risks that have already been identified, risk owners are in
place. These individuals monitor the actual risk using specific early
warning indicators and defined ratios according to the type of risk.
If a change in the risk position is evident, countermeasures can be
fine-tuned in good time.
Information and communication
GfK has open information and communication structures. This
ensures that amendments to laws, guidelines and instructions are
actively conveyed and made permanently available to employees.
All guidelines are accessible worldwide on the intranet. GfK has
comprehensive and regular risk and financial reporting in place,
through which corporate management and the Supervisory Board
is promptly and comprehensively informed of the company’s risk
situation. In addition to the standardized reporting, the Management Board is directly informed on an ad hoc basis in the event
of the sudden occurrence of material risks and in the event of
instances of fraud (ad hoc reporting).
—
11. opportunity and risk position
11.1 Principles of opportunity and risk management:
integrated system
The opportunity and risk management system represents an integrated system which provides for the identification and management of the entire range of possible opportunities and risks in the
individual GfK companies, GfK sectors and the GfK Group.
The integrated system is enshrined in Risk Management Guidelines
which apply worldwide and regulate all risk policy principles,
responsibilities, processes and risk reporting. The guidelines can
be accessed by all employees on the intranet, gfk4u.
Monitoring
MANAGEMENT REPORT
Risk monitoring at GfK is essentially carried out via a system of
checks and balances and documented controls. Specified business
transactions must be approved by both the operational management
GfK Group integrated opportunity and risk management system
Supervisory Board
Management Board
Opportunity and risk reporting
Annual risk inventory
Ad hoc reporting
Group level
Identification
Assessment
Management
Sector level
Risk and opportunity process
Company level
Responsibilities
Risk Management Committee
Risk management coordinators
Principles of risk management
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Risk owners
• Only those risks which are known can be controlled and managed.
• Risks are systematically assessed, communicated and prioritized.
• Risk management is a duty for everyone.
Responsibilities
Risk Management Committee: Under the terms of its overall
responsibility for the opportunity and risk management system,
the Management Board has established a Risk Management
Committee, which is tasked with the central coordination and
continual further development of the risk management system. Its
standing members include the cfo/hr Director as Chairperson, the
Global Head of Corporate Finance, as well as an employee responsible for risk management from the Group Controlling department.
The Committee is charged with identifying the relevant risks and
informing the Management Board and Supervisory Board of the
current risk position within the Group.
Risk management coordinators: The direct responsibility for early
identification, management and communication of risks locally lies
with the business management of the individual GfK companies.
Local risk management coordinators promote risk awareness and
ensure that the prescribed central principles are implemented by
the respective organizations.
Risk owners: For each identified risk, a risk owner is nominated
in whose remit the risk lies. The risk owner is tasked with actively
managing the risk and taking appropriate countermeasures to prevent the risk occurring or mitigate the potential loss or damage. The
risk owner can be an individual employee or a group of employees
at management level.
Process and reporting
The risk process at Group level, sector level and company level comprises the three steps of identification, assessment and management.
Every employee is responsible for identifying risks within his or
her remit. This is carried out either within the respective local
GfK companies, by the sector management team at sector level
or, where the risk affects the whole GfK Group, at Management
Board level. Subsequently each risk is assessed using the criteria
“probability of occurrence” and “potential severity of loss”.
Specified materiality thresholds determine whether the identified
risk constitutes a material risk. As part of risk management, measures
are defined and implemented to prevent the risk occurring or to
The identification of opportunities is mainly carried out at sector
level. This ensures integration in the respective sector strategy,
thereby anchoring risk and opportunity management in the strategy
of the sectors and ultimately, the Group.
Risk reporting is carried out via an annual risk inventory and ad hoc
reporting.
The annual risk inventory ensures a comprehensive assessment
of the overall risk situation of the GfK Group. In principle, all GfK
companies are obliged to conduct an annual risk inventory. To
obtain a complete picture of the risk situation for the Group, fixed
risk areas are defined within which the potential individual risks
of the companies are assessed. Once the reported risks have been
validated and aggregated at sector level, sector-specific opportunity
and risk workshops are held. The aim is to identify material sectorrelevant risks across all companies, whereby individual risks can be
leveled out or risks aggregated and reassessed at sector level.
Risk inventory process 2010
Preparation &
documentation
MANAGEMENT REPORT
To safeguard the continued success of the GfK Group in the market,
the GfK Group must consistently exploit opportunities as they arise.
At the same time, the manner in which risks are taken has to be
acceptable from both a business and ethical perspective. To this end,
risk policy principles were drawn up which form the basis for the
entire opportunity and risk management system of the GfK Group.
The key tenets, which are integrated in GfK’s structures and business processes, are:
significantly reduce the severity of the loss for GfK in the event of
occurrence. Risk management also comprises continual monitoring
of the individual risk identified in order to be able to react promptly
to possible changes.
Validation &
reporting
Selection of
companies with
mandatory
risk reporting
Distribution and
completion of risk
checklists
Risk checklists - companies
Principles of risk management
Validation and
analysis at
sector level
Opportunity and
risk workshop at
sector level/
preparation of
sector checklist
Analysis at
Group level
Risk and opportunity
report for the
Management and
Supervisory Boards
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Changes in the risk situation during the year are covered by ad
hoc reporting and reported at Management Board level. Every GfK
company is obligated to report new risks as well as changes in
existing material risks via their monthly business activity reports.
The Risk Management Committee must be informed directly if the
potential loss severity of new risks arising during the year is significant and action at sector and Group level is required.
11.2 Assessing opportunities and risk: details
Macro-economic factors
The economy: At the end of financial year 2010, economic indicators and other signs increasingly showed that the international
financial crisis had been overcome in large areas of the world.
Germany’s impressive economic recovery is likely to continue in
2011 and an upturn in demand and fall in unemployment is also
expected in the usa. The situation is more critical in some eu
countries, and the risk of a two-speed Europe has not yet been
banished and is contingent on European monetary policy and
national fiscal policy. The GfK Group operates worldwide and is
highly diversified in terms of its client, market and product portfolios, enabling it to cope with a renewed economic downturn
in some countries. In addition, the stronger accent on Asia and
Latin America as growth regions gives GfK good opportunities
for further positive development in the global market.
MANAGEMENT REPORT
Consequently, the GfK Group does not anticipate any significant
risks arising from macro-economic development.
Industry: The market research industry will benefit from the
improved economic framework conditions. Development in the
industry has tracked global development in the past and as the
global outlook is very positive, the market research sector is
expected to expand worldwide. However, growth rates will differ
from region to region. While only moderate growth is expected
in North America, development in market research sales in Asia
and Latin America will be much more dynamic. Germany will
remain the engine of growth in Europe.
With its global network, the GfK Group is a full service provider
offering a wide spectrum of surveys and analyses and is therefore
superbly placed not only to meet the challenge of fiercer competition in the industry, but also to benefit from the positive trends
in the emerging countries.
Globalization and changes in consumer behavior mean that companies are in greater need of advice with regard to their marketing decisions. Information on the sales potential of a product in
different markets is therefore becoming increasingly important.
At the same time, more and more purchase decisions are made
with the aid of new media and take account of ecological aspects.
With its wide range of methods to measure the usage of digital
media and its advice on strategy, the GfK Group is ideally positioned to provide its clients with the optimum decision-making
basis.
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Individual risks and opportunities
Sector opportunities and risks: All GfK sectors are seeing an
increase in competition, for example through the entry of local
market research companies. There is persistently fierce competition for the marketing budgets of major companies; however, the
dependency of the GfK Group on such major companies continues
to remain limited. The share of Group sales accounted for by the
10 top clients is unchanged at 15 %. No sector generates more
than 5 % of Group sales with a single client. The level of bad debts
is also insignificant in GfK’s broad-based client portfolio and the
liquidity position of the Group has not been detrimentally affected.
The specific risks and opportunities in the individual GfK sectors are
explained below.
Custom Research: The portfolio comprises continuous data gathering, such as from the household panel, and ad hoc surveys tailored
exclusively to individual questions. In syndicated business, largescale surveys are carried out in advance and then offered to the
market. The main risks in the sector are as follows:
In the ad hoc sector in particular, there is strong competition from
small local providers, as well as from international market research
companies. These local competitors frequently only service niche
markets and can offer substantial price advantages through their
lean cost structures. GfK counters this risk by continually optimizing
its own cost structures and developing high quality surveys prepared using the latest methods which offer customers considerable
quality benefits.
One impact of the global financial and economic crisis has been
the cut in market research budgets at many companies and
public organizations as part of cost-saving measures. Through its
continually refined offering, modern research methods and longstanding customer relationships, GfK is also well equipped to face
this challenge.
In syndicated business, the risk relates to the fact that large-scale
surveys are carried out in advance without a fixed buyer in place
for the data that is gathered. However, this type of business is
predominantly on offer where the experience of the past shows
that there are likely to be takers.
Changes in consumer behavior constitute another risk. In particular,
decisions made and implemented with the aid of new media require
new market research methods and technologies. GfK started work
on developments in this area at an early stage and has progressed
this by the acquisition of interests in nurago and SirValUse. Both
companies have developed pioneering technologies for the collection of market research data in the digital age.
Overall, the Custom Research sector is well equipped to deal with
these risks. Long-standing customer relationships and a comprehensive portfolio of products and services provide GfK with a solid
foundation for success, as do its valuable databases, comprehensive
household panels and high data quality. Promising opportunities
could also lead to additional growth.
With its global operations approach, GfK offers its major international clients uniform data quality and reporting standards. This is
a key aspect for major clients and allows special market research
instruments to be used under different local and regional conditions. Expanding its presence in the growth regions of Asia and the
Pacific and Latin America is one of the greatest opportunities for the
sector.
Although the trend towards using new media for purchase decisions
poses a threat to traditional business models, it also offers huge
opportunities. GfK already successfully links purchases of fast moving consumer goods with online advertising and further expansion
of online research is one of the company’s key aims. In the wake of
global convergence of mobile internet use, the GfK Media Efficiency
Panel (mep) and special software enable the company to obtain
market data on the use of mobile devices.
The Custom Research sector sees further potential in consistency
in its own product portfolio and service offering worldwide. This
will enable synergies to be leveraged and cost-savings potential
realized, while ensuring global cooperation within the GfK network
at the same time.
Retail and Technology: GfK is a leading global provider in this
sector and is distinguished above all by its global network, based
on a uniform production and reporting system (GfK StarTrack) as
well as its own extensive database. Measures were successfully
implemented in the past financial year, with the result that the
previous risks in Retail and Technology are no longer categorized as
material. An optimized contingency plan was established to counter
risk on the data procurement side. The risk of losing major clients
has also become less pronounced. The very high level of customer
loyalty and high quality offering ensured an excellent follow-on
order rate among these clients.
The strategic focus of the sector also opens up numerous opportunities:
Development of GfK StarTrack Explorer, which allows clients to
create and call up reports that are tailored to their own individual
requirements. By expanding the range of functions on offer, GfK is
further increasing its technological lead in the market and consequently enhancing customer loyalty. At the same time, the aim is to
optimize reporting frequency – right up to calling up market data in
real time.
The offering is being continually expanded with new products and
services, which have attracted new client groups. For example, the
Retail and Technology sector has already established a tourism panel
and is delivering the first reports to renowned travel agents. The aim
is to extend the customer base to include airlines and travel destination countries. The market position is being further expanded with
new services such as GfK Total Store Reporting, which provides an
overview of the full range of items.
The mobile web is also of particular importance for Retail and Technology. Mobile internet use is currently growing worldwide as fast
as the internet itself once did. All activities of mobile internet users
can be measured in real time using GfK Network Intelligence Solution (GfK nis). For example, it can evaluate how many people were
online using what devices, what websites they visited and for how
long. The particular feature here is that GfK nis tracks the whole
market across providers within all of the mobile phone networks
cooperating with GfK. The data is gathered on an anonymized basis
and evaluated so that the user cannot be identified by name. GfK nis
has already been successfully tested in several countries.
The Retail and Technology sector is also set to drive forward
expansion of the international network. The aim is to increase the
company’s presence in Africa, Asia, Latin America and Eastern
Europe. A significant share of sector sales is already generated
in these growth markets and substantial sales increases continue
to be achieved by rolling out established products and services in
countries that were not previously covered.
Media: The Media sector prepares studies on tv and radio audience
research as well as on print media (for example, newspapers and
magazines). The opportunity and risk situation arises from current
developments in these client segments.
Traditionally, tv and radio research is characterized by long-term
client contracts. Although the dependency on major clients presents
a risk, it is also associated with a certain amount of opportunity
potential. Through our long-standing cooperation with clients, we
have acquired specific expertise which is leveraged as a competitive
advantage.
MANAGEMENT REPORT
Further expansion of global key account management for major
customers is set to facilitate cross-sector offerings around the world.
As in previous years, market conditions for print media remain
difficult. Publishers are cutting market research budgets, thereby
increasing the pressure on costs and prices for market surveys.
Alongside intensive customer services, this risk will be countered
through the market launch of innovative products, in particular.
Overall, the media market is dominated by extensive changes.
New receiver technologies, digitization and changes in tv viewing
habits present complex challenges for tv audience measurement in
particular. The mobile tv offering is constantly growing for example.
GfK is very well positioned in this market and sees considerable
opportunity potential for the future here. The new ums technology
will allow integrated measurement of tv, radio and internet usage in
the future. Through instruments such as MediaWatch, GfK provides
mobile data metering for out-of-home viewing, including watching
giant tv screens in public spaces at major events. The new GfK tc
Score measuring technology enables time-delayed tv viewing to be
measured. The development of the Evogenius international software
platform represents a contemporary, holistic instrument for the
production and analysis of media usage data.
The Media sector intends to develop markets for its product portfolio in new countries by establishing a global sales and marketing
department.
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Personnel risks: The changed economic environment has also
affected the labor market. As before, recruiting and retaining
qualified staff remains one of the most important tasks for GfK
companies. GfK offers a varied qualification and training program
and is constantly working to optimize its personnel concepts in
order to recruit, integrate and keep management and specialist
staff in the longer term.
Financial risks: GfK’s arrangements to cover its financing requirement include a syndicated banking facility comprising a variable
revolving credit line. Around 55 % of the syndicated credit line
totaling eur 250 million had been drawn down at the year-end.
This credit line is available to GfK se in full until October 2011.
From October 2011 to October 2012, the amount reduces to
around eur 218 million. In addition to the syndicated credit line,
GfK also has bilateral credit lines amounting to around eur 91
million at its disposal. The GfK Group secured additional liquidity
through bilateral bank loans of eur 70 million with a term of up
to five years. In total, on the reporting date the unutilized credit
lines amounted to eur 204.0 million (2009: eur 165.7 million).
The funding elements indicated and an existing cash holding of
around eur 54.8 million at the reporting date assure the Group’s
liquidity.
MANAGEMENT REPORT
The covenants agreed for the syndicated credit facility and the loan
notes were comfortably met in all reporting periods in 2010. As a
result, the credit margins for the GfK Group improved substantially
compared with 2009.
Foreign currency risk: As a global company, the GfK Group is
exposed to currency risks.
The transaction risk results from the sale and purchase of goods
and services which are not paid for in the local currency of the
respective GfK business unit. As a result of the high level of local
business, all GfK operating companies have sales and expenses in
the local currency and the currency risk of the GfK Group is therefore restricted. Group guidelines also require all GfK companies to
monitor their currency risks and hedge against currency fluctuations
for projects over a certain size.
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As a rule, GfK provides in-house financing in local currency for
subsidiaries. The ensuing currency risks are hedged by Group
Treasury using derivatives, among other means. Hedging transactions usually run for a maximum of 15 months. The offsetting
effects of the underlying transaction and the currency hedge are
recognized in the income statement and are consequently identifiable.
The currency translation risk results from the conversion of the
balance sheets and income statements of GfK companies outside
the eurozone into euros, the reporting currency of the GfK Group.
These translation-related effects are shown under equity in the
GfK consolidated financial statements. Participations are covered
by natural hedges. To do this, the financing is in the currency of
the respective company, so that the currency fluctuations are kept
to a minimum. In order to eliminate volatility in the income statement relating to the reporting date valuation of currency liabilities,
GfK uses hedge accounting according to ifrs pursuant to ias 39
for this long-term financing, and valuation effects are reported
under equity accordingly.
Interest rate risk: At GfK, interest rate risks mainly arise for financial liabilities. The majority of the interest rate hedges relating to
the financing of the nop World acquisition expired in April and the
GfK Group was able to benefit from low short-term interest rates
in 2010. At the same time, new fixed-rate agreements for eur 70
million with terms of up to five years were concluded in 2010.
As at December 31, 2010, GfK se had hedged around 29 % of its
financial liabilities with fixed-rate agreements. The proportion of
financial liabilities with interest rate hedging was down on the
previous year (40 %).
As at the reporting date, the interest rate hedges had a negative
fair value of eur 0.2 million (2009: eur 1.2 million). The transactions are only conducted with reputable German and international
banks with first class credit standing and an s&p rating of between
aa- and bbb-. In addition, the counterparty risk is reduced as transactions are spread across several banks.
GfK is involved in civil proceedings in a number of different countries,
which are based on various legal grounds. However, the management
does not believe that these present any significant risk to the GfK
Group.
Risks ensuing from acquisitions: The acquisition of new companies
and their integration into the Group is associated with risks.
To counter these risks, GfK has established extensive due diligence
processes and proven post merger integration procedures.
Company valuations are carried out using varying methods and
business plans are critically reviewed.
it and other risks: Installation, maintenance and further development of security measures to protect information systems and the
data they contain are essential for GfK. Precautionary measures
serving to ensure the security of information technology and its
applications have always been given the highest priority.
GfK has taken all necessary measures at its central computing
center location in Nuremberg to ensure the greatest possible it
operating security and these measures are updated on an ongoing
basis. The Group-wide it security policy based on the recognized
British Standard 7799, adopted by the Management Board, was
implemented worldwide in 2008 and specifies the mandatory it
security standards for the Group. The “moveIT” project involves
concentrating the global computing center services in a small
number of global locations, as well as extending the Group-wide
it standards. As a result, all the security measures and standards
relevant to the Group will focus on these computing center locations and any residual risks in it security will be minimized.
All the aforementioned measures, as well as the it strategy of the
GfK Group and the Group-wide it security measures, are coordinated by the Chief Information Officer (cio), who reports directly
to the ceo. Security issues are dealt with in cooperation with the
it security specialists based in GfK companies in Germany and
abroad.
11.3 Assessing risks and opportunities: overall view
The risks of GfK are limited and should not materially affect the
net assets, financial position or result of operations of the Group.
An overall assessment of the risk position of GfK also shows that
no lasting threat to business development is to be expected as
a result of individual risks or the interaction or accumulation of
risks.
Potential opportunities for the GfK Group have been identified,
particularly in relation to the further expansion of its global
network and the availability of an innovative product portfolio that
incorporates state-of-the-art technology and responds optimally
to client needs. The core competence of reliable and high-quality
consulting opens up further opportunities to position the company
in the market. The following table provides an overview of the key
points relating to the risks and opportunities for the GfK Group:
Strengths
Internal factors
– broad, high quality and
innovative portfolio of
services and products
– strategic consultancy
– continual expansion of
the offering
Weaknesses
– dependence on major
customers
– heterogeneous structures
in regions on account of
acquisitions
– international network
– high level of customer loyalty
– high level of staff expertise
Opportunities
External factors
– global expansion of market
research industry, especially
in the regions of Asia and
Latin America
Risks
MANAGEMENT REPORT
Legal risks: In many countries, such as Brazil, Germany, France
and the uk, the subject of apparent self-employment is still an issue.
This harbors the risk that the interviewers and other freelancers
working for GfK could become liable for social security contributions.
GfK adjusts the employment terms to the respective national legislation.
– fiercer competition and
pressure on prices in market
research industry
– cuts in market research
– increasing need for informabudgets on customers’ side
tion and advice on customers’ – new consumer trends due
side as a result of new conto technology advances
sumer trends (e.g. use of new
media, ecological viewpoint) – changes in legislation
– Demand for high quality
products
To summarize, it can be concluded that the overall risk position of the
GfK Group continues to be assessed as low. No risks have currently
been identified which might jeopardize the continued existence of the
GfK Group.
it audits also form an integral component of the audit conducted
by the Internal Audit department and are carried out locally by it
specialists.
No major it risks are currently identified in the GfK Group.
Other risks: As part of the established risk management system,
continual monitoring is carried out to check whether other risks
have arisen and whether countermeasures need to be taken.
Risks relating to losses and liabilities are either covered locally or
by Group-wide umbrella insurance.
No substantial risks relating to research and development activities
are currently identified. The development of large-scale, costintensive innovation projects is monitored via regular reporting.
No material other risks are currently identified in the GfK Group.
forward > >
GfK_99
Outlook
—
13.2 Market research sector: looking to the future
12. major events since the end of the financial year
On February 23, 2011, the long-standing ceo of GfK se, Professor
Dr. Klaus L. Wübbenhorst, advised the Supervisory Board that for
personal reasons he will not be extending his contract, which runs
until the end of July 2012. The Chairman of the Supervisory Board,
Dr. Arno Mahlert, expressed his regret regarding the decision and
thanked Dr. Wübbenhorst for his extraordinary services to the
company.
On January 1, 2011, GfK increased its holding in SirValUse Consulting,
the market leader for user experience consulting, by 20 % to a
total of 60 %. It also increased its holding, through an indirect
participation, in nurago, one of the world’s leading experts in digital
brand, media and usability research, by 20 % to a total of 60 %. The
companies are fully consolidated as of January 1, 2011. Customers
include numerous international companies in the services sector
and trade and industry, such as Google, Deutsche Telekom, otto,
eBay, lg and Samsung.
Major changes in the GfK network since the end of the financial year
Company
MANAGEMENT REPORT
SirValUse
Investment
activity
Stake
changes
in %
Sector
Region
Share
increase
from 40
to 60
Custom
Research
Germany
—
13. outlook *
13.1 Macro-economic situation: continued recovery
with residual risk
Although global economic output continues to grow, expansion in
2011 will be lower than in the previous year. In the first instance, in
many national economies there is an absence of domestic demand
as a driver and in the second, some emerging countries have used
monetary and fiscal policy instruments to slow their economies to
prevent overheating. The International Monetary Fund therefore
expects global economic growth of 4.4 % in 2011 compared with
5.0 % in 2010.
The strained situation in financial markets remains a residual risk for
further economic development. From a European perspective, the
debt crisis could lead to exchange rate fluctuations and a slowdown
in domestic demand in particular.
Financial year 2010 was an excellent year for GfK. In the year as a
whole, the Group increased its sales by 11.1 % to eur 1,294.2 million.
Organic sales growth totaled 7.2 % and at 14.3 %, the margin
outstripped the company’s own forecast.
Growth impetus came from all regions. Double-digit organic growth
in sales was achieved in Germany, Central and Eastern Europe
and Latin America. GfK benefited from the rapid recovery in these
regions and the company’s consistent global focus. Globalization
will remain a key topic for the market research industry in the future
as well. Only a global full-service organization knows the particular
features of a local market, can work in the relevant language and
can link the information to an international, comprehensive picture
made up of comparable individual components. To continue its
success in the international arena, GfK is investing in standardizing
methods, software and survey contents.
In addition to globalization, the internet will dominate the process
of change in the market research industry. For example, the internet
will soon be the most important platform for market research and
is also becoming increasingly important as an object of research
itself. Monitoring types of usage and measuring the impact of online
advertising are just two examples of this. The opinions on goods and
services that are posted on the web are of key importance and have
a major influence on consumer behavior. Known as the “online
buzz”, the opinions of consumers published on the internet can
determine the success or failure of brands and products. Analyzing
the online buzz will be a key task for market research going forward, and GfK already offers its clients various services in this field.
Digitization and the ensuing flood of data represents another
challenge for the market research industry. To date, its main
task has been to gather representative data. In future, however,
the service provided by market research will not be limited to
optimum data procurement; it will have to condense and analyze
the data flows gained through new technologies and the online
buzz and translate these into recommendations for action. A market
research organization such as GfK does not just present the data
freely obtainable from the internet, but acts as an information specialist and expert in consumer insights. Strategic client consulting
is firmly embedded in GfK’s own corporate strategy as fact-based
consultancy.
Digitization will also speed up the processes of data collection
and analysis. GfK is well aware of the growing importance of
fast access to information and the international expansion of
computer-aided interviews follows this trend. In its retail panel,
In addition, increased inflation expectations harbor risks of interest
rate rises, which could hamper economic recovery.
100_GfK
* The outlook contains predictive statements on future developments, which are based on cur-
ability to achieve targets are described under “risk position” in the Management Report. If these
rent management assessments. Words such as “anticipate”, “assume”, “believe”, “estimate”,
or other uncertainties and unforeseen factors arise or the assumptions on which the statements
“expect”, “intend”, “could/might”, “planned”, “projected”, “should”, “likely” and other such
are based prove to be incorrect, actual results could materially differ from the results indicated
terms are statements of a predictive nature. Such predictive statements contain comments on
or implied in these statements. We do not guarantee that our predictive statements will prove to
the anticipated development of sales proceeds and income for 2011. Such statements are subject
be correct. The predictive statements contained herein are based on the current Group structure
to risks and uncertainties, for example, economic effects such as exchange rate fluctuations and
and are made on the basis of the facts on the day of publication of the present document. We do
changes in interest rates. Some uncertainties or other unforeseen factors which might affect
not intend or accept any obligation to update predictive statements on an ongoing basis.
< < back
GfK has already adjusted its reporting to the weekly product
change on the shelves for many product groups and countries.
And through its online co-creation platform, the Custom Research
sector is bringing clients and their end consumers together in real
time, regardless of where they are located.
GfK therefore not only has a global presence, but is able to react
flexibly to challenges in the industry as a result of the extensive
methodological expertise of its staff.
The Management Board believes that as a broad-based enterprise
specializing in market research, the GfK Group is superbly positioned to balance out economic fluctuations. GfK will therefore be
in a position to secure sustainable growth in sales and income in
the medium term.
13.3 Outlook and order intake
Assuming a sustained economic upturn, GfK expects organic
growth in sales of around 5 % to 6 % for financial year 2011,
based on the companies included in the scope of consolidation at
the start of the year. All three sectors will contribute to this with
positive organic growth in sales. Despite planned investments,
especially in the digital segment and in growth regions, GfK is
setting itself a challenging target for its margin, that is the ratio
of adjusted operating income to sales, of at least 14.3 %.
—
—
Pamela Knapp
2011 is already off to a promising start. As at the end of February
2011, the order book covers a total of 43.2 % of expected annual
sales (previous year: 41.1 %).
—
MANAGEMENT REPORT
—
Petra Heinlein
—
Debra A. Pruent
—
Wilhelm R. Wessels
forward > >
GfK_101
102_GfK
< < back
Consolidated income statement
104
Consolidated statement of comprehensive income
105
Consolidated balance sheet
106
Consolidated cash flow statement
107
Consolidated equity change statement
108
Notes to the consolidated financial statements for 2010
110
Supervisory Board
148
Management Board
149
Shareholdings of the GfK Group
150
FINANCIAL STATEMENTS
Financial statements
of the G f K Group
Declaration on the German Corporate Governance Code 156
Auditor’s report
157
forward > >
GfK_103
Consolidated incom e statem ent of th e g
gfkk Grou p
in accordance with ifrs in eur ‘000 for the period January 1 to December 31, 2010
Note
2010
Sales
5.
1,164,532
1,294,208
Cost of sales
6.
– 813,234
– 872,344
351,298
421,864
– 268,094
Selling and general administrative expenses
7.
– 250,340
8.
24,000
19,602
9.
– 36,052
– 36,631
88,906
136,741
Operating income1)
Income from associates
3.
3,820
3,489
Other income from participations
3.
66
340
92,792
140,570
ebit
Other financial income
12.
6,140
12,225
Other financial expenses
13.
– 23,473
– 28,037
75,459
124,758
– 14,935
– 40,774
60,524
83,984
Attributable to equity holders of the parent:
50,975
71,651
9,549
12,333
60,524
83,984
Tax on income from ongoing business activity
14.
Attributable to minority interests:
2009
Basic earnings per share (eur)
15.
1.42
1.99
Diluted earnings per share (eur)
15.
1.42
1.99
1) Reconciliation to internal management indicator “adjusted operating income” amounting to eur 184,986 thousand (2009: eur 147,154 thousand) is shown
in the Management Report.
104_GfK
< < back
Consolidated statement of comprehensive income
of th e g
gfkk Grou p
Note
2009
2010
Pre-tax
amount
Tax
effect
Post-tax
amount
Pre-tax
amount
Tax
effect
Post-tax
amount
75,459
– 14,935
60,524
124,758
– 40,774
83,984
Currency translation differences
24.
13,058
0
13,058
57,990
0
57,990
Valuation of net investment hedges
for foreign subsidiaries
29.
3,919
– 1,233
2,686
– 2,531
797
– 1,734
Changes in fair value of cash flow hedges
(effective portion)
29.
– 594
187
– 407
622
– 196
426
– 21
5
– 16
–3
0
–3
25.
– 4,605
1,123
– 3,482
– 9,549
1,523
– 8,026
Other comprehensive income
11,757
82
11,839
46,529
2,124
48,653
Total comprehensive income
87,216
– 14,853
72,363
171,287
– 38,650
132,637
Changes in fair value of securities
available-for-sale
Actuarial gains/losses on defined benefit plans
Attributable to:
Minority interests
Total comprehensive income
62,646
118,351
9,717
14,286
72,363
132,637
Equity holders of the parent
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GfK_105
Consolidated balance sh eet of th e g
gfkk Grou p
in accordance with ifrs in eur ‘000 as at December 31, 2010
Note
31.12.2009
31.12.2010
assets
Goodwill
16.
791,075
838,748
Other intangible assets
16.
201,765
210,997
Tangible assets
17.
104,820
108,387
Investments in associates
18.
11,491
17,318
Other financial assets
18.
9,544
11,015
Deferred tax assets
14.
32,600
38,901
Non-current other assets and deferred items
19.
6,634
6,826
1,157,929
1,232,192
Non-current assets
Trade receivables
20.
270,683
315,569
Current income tax assets
14.
18,243
13,307
Securities and fixed-term deposits
21.
957
1,382
Cash and cash equivalents
22.
42,361
54,755
Current other assets and deferred items
19.
Current assets
Assets
31,268
32,703
363,512
417,716
1,521,441
1,649,908
equity and liabilities
Subscribed capital
150,297
151,157
Capital reserve
197,278
206,868
Retained earnings
Other reserves
Equity attributable to equity holders of the parent
Minority interests
Equity
24.
329,357
– 45,626
524,640
641,756
28,374
35,702
553,014
677,458
Long-term provisions
25.
65,687
81,965
Non-current interest-bearing financial liabilities
26.
360,893
326,324
Deferred tax liabilities
14.
69,896
72,175
Non-current other liabilities and deferred items
27.
3,389
4,456
499,865
484,920
16,531
Short-term provisions
25.
10,889
Current income tax liabilities
14.
25,291
25,919
Current interest-bearing liabilities
26.
136,225
102,597
Trade payables
3.
60,231
66,103
Liabilities on orders in progress
Current other liabilities and deferred items
3.
27.
118,689
117,237
136,696
139,684
Current liabilities
468,562
487,530
Liabilities
968,427
972,450
1,521,441
1,649,908
Equity and liabilities
106_GfK
277,467
– 100,402
< < back
Consolidated cash flow statem ent of th e g
gfkk Grou p
Note
2009
2010
60,524
83,984
Write-downs/write-ups of intangible assets
16.
44,127
31,875
Write-downs/write-ups of tangible assets
17.
22,131
23,266
Write-downs/write-ups of other financial assets
Total write-downs/write-ups
Increase/decrease in inventories and trade receivables
904
804
67,162
55,945
9,270
– 36,071
469
15,059
and liabilities on orders in progress
Changes in other assets not attributable to investing or financing activity
Changes in other liabilities not attributable to investing or financing activity
Profit/loss from disposal of non-current assets
1,270
4,993
– 9,544
11,096
321
53
– 1,147
– 935
Increase/decrease in long-term provisions
7,980
12,511
Other non-cash income/expenses
3,296
9,338
16,394
16,644
Non-cash income from associates
Net interest income
3.
12., 13.
Change in deferred taxes
14.
– 17,479
– 4,763
Current income tax expense
14.
32,424
45,473
– 36,290
– 41,316
134,650
172,011
Cash outflows for investment in intangible assets
– 18,650
– 26,490
Cash outflows for investment in tangible assets
– 30,328
– 22,118
Cash outflows for acquisitions of consolidated companies and other business units, net of cash acquired
– 54,770
– 35,070
– 2,893
– 5,927
1,666
1,104
Taxes paid
a) Cash flow from operating activity
30.
Cash outflows for other financial assets
Cash inflows from disposal of intangible assets
Cash inflows from disposal of tangible assets
Cash inflows from the sales of consolidated companies and other business units, net of cash disposed of
Cash inflows from disposal of other financial assets
298
559
28
204
288
1,548
– 104,361
– 86,190
b) Cash flow from investing activity
30.
Cash inflows from equity contributions
24.
0
10,450
Cash outflows to equity holders of parent
24.
– 16,536
– 10,784
Cash outflows to minority interests
Cash inflows from loans raised
Cash outflows from repayment of loans
Interest received
Interest paid
c) Cash flow from financing activity
30.
– 6,920
– 6,203
154,047
78,422
– 142,391
– 135,783
3,447
3,182
– 17,876
– 16,231
– 26,229
– 76,947
Increase/decrease in trade payables
Changes in cash and cash equivalents
(total of a), b) and c))
4,060
8,874
Changes in cash and cash equivalents owing to exchange gains/losses and valuation
1,631
3,520
Cash and cash equivalents at the beginning of the period
22.
36,670
42,361
Cash and cash equivalents at the end of the period
22.
42,361
54,755
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GfK_107
Consolidated equity change statem ent of th e g
gfkk Grou p
Attributable to equity holders of the parent
Balance at January 1, 2009
Subscribed capital
Capital reserve
Retained earnings
150,297
197,278
244,957
Total comprehensive income for the period:
50,975
Other comprehensive income:
Foreign currency translation differences
Net gain/loss on hedge of net investment in foreign operation
Effective portion of changes in fair value of cash flow hedges, net of tax
Net change in fair value of available-for-sale financial assets, net of tax
Defined benefit plan actuarial gains and losses, net of tax
Total comprehensive income for the period
– 3,490
0
0
– 3,490
0
0
47,485
Transactions with owners, recorded directly in equity:
Dividends to shareholders
– 16,536
Other changes
1,561
0
0
– 14,975
Balance at December 31, 2009
150,297
197,278
277,467
Balance at January 1, 2010
150,297
197,278
277,467
Transactions with owners, recorded directly in equity
Total comprehensive income for the period:
71,651
Other comprehensive income:
Foreign currency translation differences
Net gain/loss on hedge of net investment in foreign operation
Effective portion of changes in fair value of cash flow hedges, net of tax
Net change in fair value of available-for-sale financial assets, net of tax
Defined benefit plan actuarial gains and losses, net of tax
Total comprehensive income for the period
– 8,076
0
0
– 8,076
0
0
63,575
860
9,590
Transactions with owners, recorded directly in equity:
Contributions by and distributions to owners:
Issuing of new shares
Dividends to shareholders
– 10,784
Changes in ownership interests in subsidiaries that do not result
in a change of control:
Acquisition of minority interests
– 623
Other changes
Transactions with owners, recorded directly in equity
Balance at December 31, 2010
Note
108_GfK
< < back
– 278
860
9,590
–11,685
151,157
206,868
329,357
24.
24.
24.
Other reserves
Translation reserve
Hedging reserve
Fair value reserve
Total
Minority interests
Total equity
– 131,061
15,494
4
476,969
23,327
500,296
50,975
9,549
60,524
12,898
160
13,058
2,686
2,686
2,686
– 407
– 407
– 407
– 16
– 16
– 3,490
– 16
8
– 3,482
12,898
2,279
– 16
11,671
168
11,839
12,898
2,279
– 16
62,646
9,717
72,363
– 16,536
– 7,399
– 23,935
1,561
2,729
4,290
0
0
0
– 14,975
– 4,670
– 19,645
– 118,163
17,773
– 12
524,640
28,374
553,014
– 118,163
17,773
– 12
524,640
28,374
553,014
71,651
12,333
83,984
56,087
1,903
56,087
– 1,734
426
–3
57,990
– 1,734
– 1,734
426
426
–3
– 8,076
–3
50
– 8,026
56,087
– 1,308
–3
46,700
1,953
48,653
56,087
– 1,308
–3
118,351
14,286
132,637
– 10,784
– 6,540
– 17,324
– 623
– 514
– 1,137
– 278
96
– 182
10,450
12,898
10,450
0
0
0
– 1,235
– 6,958
– 8,193
– 62,076
16,465
– 15
641,756
35,702
677,458
24.
29.
24.
forward > >
GfK_109
Notes to the consolidated
financial statements for 2010
—
1. general information
—
2. consolidation principles
GfK se is a listed company, a Societas Europaea with its registered
office on Nordwestring 101, Nuremberg, Germany. With entry
under hr b 25014 in the commercial register of the district court
of Nuremberg, GfK se was established on February 2, 2009 as a
result of a transformation changing the legal form of GfK Aktiengesellschaft. GfK se and its subsidiaries (the GfK Group) are among
the world’s leading market research companies. The GfK Group
provides information services for its clients in the consumer goods,
retail and services industries and media, which they use in marketing decision-making.
The annual financial statements of GfK se and all material subsidiaries whose financial and operating policies are controlled directly
or indirectly are included in the consolidated financial statements
of GfK se. The financial statements of all companies included in the
consolidated financial statements have been prepared according to
uniform accounting principles.
The consolidated financial statements of GfK se include the company
itself and all consolidated subsidiaries. They have been prepared
in compliance with the International Financial Reporting Standards
(ifrs), as they must be applied within the European Union.
All International Financial Reporting Standards (ifrs) binding for
financial year 2010 and the announcements of the International
Financial Reporting Interpretations Committee (ifric) have been
applied where they have been adopted by the European Union.
Additionally, the accounting principles set out in Section 315a (1)
of the German Commercial Code (hgb) have been considered when
preparing the consolidated financial statements.
The consolidated financial statements have been prepared in euros
and rounded up to the nearest thousand euros. All figures are specified in thousand euros, unless otherwise indicated.
The annual financial statements of the parent company, GfK se,
have been prepared in accordance with hgb and published in the
online Federal Gazette (Bundesanzeiger) under hr b 25014.
Section 37. of these Notes describes standards, interpretations and
amendments to ifrs that have been applied for the first time or that
have been published but not yet applied.
Companies in which the GfK Group has a participation of no more
than 50 %, but over which significant influence can be exercised,
are generally accounted for at equity as associates. All other companies in the GfK Group are reported at acquisition cost.
A list of GfK se shareholdings is provided in Section 41. of these Notes.
Capital consolidation is carried out in accordance with ifrs 3,
“Business Combinations”, on the basis of purchase accounting,
whereby the acquisition costs of the participation are charged
against the parent company’s pro rata share in the revalued equity
of the subsidiary at the acquisition date. Intangible assets acquired
in business combinations and identified as part of purchase price
allocation are entered on the balance sheet at fair value.
Any difference arising on the assets side after this crediting and
purchase price allocation is reported under non-current assets as
goodwill.
From financial year 2010 onwards, GfK applies the revised version
of ifrs 3 (“Business Combinations”) and the amendments to ias 27
(“Consolidated and Separate Financial Statements”). Material
changes relate to the accounting treatment of minority interests and
the remeasurement, through profit or loss, of already existing shares
at the time control was gained for successive company acquisitions.
In such cases, the goodwill is determined at the time when control
was gained and is the difference between the remeasured carrying
value of investment plus acquisition costs for buying the new shares
less the pro rata net assets attributable to GfK. Changes in the
participation quota without change of control are to be recorded
solely as equity transactions.
Incidental acquisition costs in connection with business combinations
are no longer capitalized from 2010 onwards, but recognized as
expenses. For possible adjustments to acquisition costs, as a result
of future events which are recognized as liabilities at the time of
acquisition, no adjustment is made to goodwill in the remeasurement
for new liabilities from earn-outs and rights of minority shareholders
to make delivery (put options and bonds) after January 1, 2010.
Instead, these changes are reported under net financial income in
the income statement.
110_GfK
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All transactions and balances among the companies of the GfK
Group which are included in the consolidated financial statements
are eliminated when preparing the consolidated financial statements.
Differences arising from debt consolidation are recorded in the
income statement. Intercompany results and asset movements are
eliminated with impact on the income statement if they are significant.
The exchange rates against the euro of the key currencies for the
GfK Group are indicated in the table below.
Associates and joint ventures are included at equity (one-line
consolidation). They are stated for the first time at the acquisition
date. First-time valuation is in line with full consolidation. Any
difference on the assets side arising from offsetting the carrying
amount of the participation against the pro rata equity capital at
initial valuation is included in the equity book value.
Country
Profits or losses from mergers arising from the merger of two
consolidated companies in the GfK Group are eliminated. Mergers
therefore have no impact on the income statement of the GfK Group.
Company mergers involving external minority shareholders do not
give rise to any change in the total minority interests or the consolidated total income.
Shares in the equity of subsidiaries attributable to external minority interests are shown separately under equity. Shares in the
subsidiaries’ results attributable to external minority interests are
shown as a separate item in the income statement.
—
3. accounting policies
Currency translation
Transactions in foreign currencies are translated into the functional
currency of the reporting company at the exchange rate on the
date on which they were carried out. As at the balance sheet date,
monetary items are translated at the exchange rate on that date
and non-monetary items are valued at the historical rate on the
transaction date. Differences resulting from these conversions are,
in principle, reported with impact on the income statement.
The balance sheets of foreign subsidiaries not prepared in euros as
well as hidden reserves disclosed as part of purchase price allocation
and goodwill from mergers and acquisitions are translated into euros
in accordance with the functional currency concept, based on the
mean exchange rates on the reporting date. The annual average euro
exchange rate, calculated as the mean of all month-end exchange
rates, is applied to the income statements of these subsidiaries.
Differences arising from the translation of asset and liability items
at the exchange rate on the reporting date compared with the
translation on the prior reporting date are reported in equity without
impact on the income statement. Exchange rate differences arising
from capital consolidation and differences arising from translation of
the annual result in the balance sheet (reporting date rate) and the
income statement (average rate) are reported in other reserves.
Unit of
currency
Euro mean rate
on balance sheet date
31.12.2009 31.12.2010
Euro average rate
during reporting period
2009
2010
USA
1 USD
0.70
0.75
0.72
0.76
UK
1 GBP
1.13
1.17
1.12
1.17
100 CHF
67.42
79.97
66.36
73.05
1 SGD
0.50
0.58
0.49
0.56
100 JPY
0.75
0.92
0.77
0.87
Switzerland
Singapore
Japan
Income statement
The income statement is prepared in accordance with the cost of
sales accounting method. Expenses are shown by function.
Sales
The method of recognizing sales is largely determined according to
ias 18 and depends on the nature of the underlying transaction:
Panel business involves surveying individuals, households and companies and is characterized by the fact that the same circumstances
are analyzed at the same, regular intervals on the basis of the same
sample and always using the same methods. For business involving
panels, the GfK Group recognizes sales pro rata temporis according to the progress of the project. Thus, the sales for a project are
distributed evenly over its duration. Each month during the term of
a contract, the same sales are recognized in terms of amount.
Ad hoc research business is the systematic, empirical research used
as the basis of marketing decisions in all areas of the marketing
mix. This includes tests and surveys on product and pricing policy,
brand positioning and brand management relating to traditional
and modern forms of communication with consumers and users.
It is employed with the goal of optimizing distribution and
enhancing customer loyalty. Ad hoc research business is valued
using the percentage of completion method. Progress on the
project is determined as the ratio of the actual costs incurred to the
overall anticipated costs of the project. The estimate of total cost is
continuously checked during the life of the project. Changes in the
estimate of total cost flow into the calculation of recognizable sales
at the time at which they can be anticipated.
From January 1, 2010, the consolidation on transition from equity
valuation to full consolidation no longer takes place with no impact
on the income statement, as was the case previously. The investment
in the associate is valued at fair value at the time of the acquisition of
additional shares with impact on the income statement. The acquisition costs included in capital consolidation comprise the fair value of
the previously existing investment and the acquisition costs for the
majority acquisition.
Main currencies
The costs to be included in this calculation comprise all direct
personnel expenses and other cost of sales as well as pro rata
indirect costs. Provisions are set up for expected losses on orders
in progress when they can be anticipated.
Syndicated business analyzes markets and market players without
this being specifically commissioned by a client to whose requirements the survey would be tailored. The completed survey is
marketed without customer-specific adjustments. Syndicated surveys
may be conducted once or on a recurring basis, without fulfilling
the distinct and highly specific features of a panel. Various market
participants may be questioned in repeated surveys, or the studies
may be published at different intervals. In terms of determining
sales, syndicated business is treated like panel business if it is
comparable to panel business in nature because it involves repeated
surveys where the cost behavior pattern is relatively evenly distributed
over the term.
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GfK_111
Accounting policies
For other syndicated business, the method of recognizing sales
depends on the empirical estimate of the profitability of the
respective survey:
• If a profit from the survey is probable, it is valued the same as
an ad hoc research contract.
• If it is not yet sufficiently certain that enough purchasers will be
found for a survey, the sale is recognized corresponding to the
accumulated costs. If the value of the actual incoming orders is
below that of the costs incurred, recognizable sales are limited
to the value of incoming orders. As soon as it is certain that the
value of orders exceeds the costs, sales are recognized according to the method used for ad hoc research contracts.
In all other business transactions, sales are only recognized once
the work has been completed and invoiced.
Operating income
Operating income in the GfK Group comprises gross income from
sales, less selling and general administrative expenses, and net
other income comprising other operating income and other operating expenses.
The indicator adjusted operating income is used internally to
manage the GfK Group’s business. It is derived from operating
income. To calculate adjusted operating income, the following
expenses and income items are excluded: expenses and income
in connection with reorganization and business combinations,
write-ups and write-downs of additional assets identified on acquisitions, personnel expenses for share-based payments and long-term
incentives and remaining other operating income and expenses.
Cost of sales, selling and general administrative expenses
In addition to personnel expenses, services rendered and
scheduled depreciation/amortization of tangible and intangible
assets, the cost of sales, selling and general administrative
expenses comprise all other costs directly linked to the operational
activity of the GfK Group.
They mainly include personnel expenses from the long-term
incentive plans, as well as scheduled write-downs of additional
assets identified on acquisitions and impairments of non-current
assets.
Research and development costs
Research and development costs are basically recorded as expenses
at the time they are incurred and shown under cost of sales.
ebit
Internally generated intangible assets are only capitalized if they
have resulted from the development phase and not the research
phase and if further precisely defined preconditions have been
cumulatively fulfilled. These include the technical viability of
project completion, the scheduled completion and use, as well as
the usefulness to the company or saleability of the intangible asset.
Future economic benefits and the availability of the necessary
technical, financial and other resources to complete the project
must also be reported. Reliable calculation of the costs associated
with the intangible asset during its development phase is also a
precondition for capitalization of internally generated intangible
assets.
Income from associates comprises income and expenses resulting
from the valuation of pro rata shares in associates at equity.
Other income from participations essentially comprises dividends
from non-consolidated affiliated companies and other participations
of the GfK Group, profit and loss from the disposal of such companies and income and expenses from profit transfer agreements with
these companies.
Development costs incurred within the GfK Group, particularly for
setting up new panels, are shown under other intangible assets if
the recognition criteria are met.
Other operating income and expenses
Other operating income and expenses comprise income and
expenses relating to operations, for which the allocation to sales
or functional costs would not be appropriate. They include mainly
exchange rate gains and losses, profit and loss from the disposal
of fixed assets, impairments not attributable to functional costs
and recoverable value and expenses for legal disputes.
112_GfK
Income from associates
< < back
The performance indicator ebit (earnings before interest and taxes)
has been included as a sub-total in the income statement. ebit is
determined by adding income from associates and other income
from participations to operating income.
Other financial income and expenses
Other financial income and expenses comprise interest income and
expenses, income and expenses from the valuation of derivative
financial instruments used to hedge against interest rate risks,
transaction costs for loans from banks, expenses relating to writeoffs of lendings and other financial income. Interest expenses also
include additional interest on previously discounted debt. Such
additional interest relates, for example, to future purchase price
components from acquisitions, which are stated on the liabilities
side at fair value.
Interest is recorded as income or expense at the time it is incurred.
Interest is deferred on the basis of the effective interest rate method.
Earnings per share
The “income from ongoing business activity” indicator has been
included in the income statement as a sub-total. Income from
ongoing business activity corresponds to consolidated total income
before tax on income.
The earnings per share (eps) reported in the consolidated income
statement show the proportion of consolidated total income
attributable to equity holders of the parent, which relates to the
weighted average number of shares in the reporting period,
taking into account, on a pro rata basis, the options exercised
during the financial year.
Tax on income
To calculate diluted earnings per share, the average number of
shares is adjusted by the options as yet not exercised which are in
the money as at the reporting date.
Current taxes are calculated by the companies within the GfK
Group according to valid tax law in their country of registration.
Deferred taxes are calculated according to the liability method
whereby deferred tax assets and liabilities are entered on the
balance sheet for temporary differences between the carrying
amounts attributed in the consolidated financial statements and the
tax basis of the assets and liabilities. Any effects on deferred taxes
from changes in tax law are incorporated in the income statement
from the date on which the tax law is passed.
Deferred tax assets are only entered on the balance sheet if it
is probable that they can be recognized at a future date. This is
generally the case where the relevant company is sufficiently
likely to achieve enough taxable profit to use the tax benefit.
If deferred tax assets already recorded are not expected to be recognized within the foreseeable future as a result of new information,
carrying values are adjusted. Applying its discretionary powers, the
management assumes a maximum period of time for the realization
of deferred tax assets of seven years for subsidiaries which are not
making a sustained loss, otherwise the period of time assumed is
shorter.
Tax on items recognized directly in equity is not included in the
income statement. No deferred taxes are amortized in relation to
currency differences from intra-Group loans in foreign currency,
which represent a net investment in the business operations of
subsidiaries and are recognized at equity. This is due to the fact
that there are no plans in place to realize temporary differences in
the foreseeable future.
Impairments
If an asset is impaired and is therefore depreciated, the cost of
impairment is included in the income statement.
The value of assets with an indefinite life and intangible assets under
development is checked once a year by means of an impairment
test. An impairment test is also carried out if triggering events occur,
which may significantly affect the value of the assets concerned.
Impairments on intangible assets are applied if the recoverable
amount is below the amortized cost of acquisition or production.
The recoverable amount is defined as the higher of the two sums
of the fair value, less costs to sell or value in use of an asset whose
expected future cash flows at the GfK Group are based on a minimum three-year period, planned in detail, and discounted on the
basis of a discount rate to be determined individually at market
conditions. The growth rate of the cash flows beyond the period
of detailed planning is usually taken into account by reducing the
discount rate by one to two percentage points.
Expenses arising from the decline in the value of brands are reported
in the income statement under other operating expenses while
impairments on surveys, panels, client bases, long-term contracts
and software are shown under functional costs.
Stock options for employees and executives of the GfK Group
Up until 2005, selected executives of the GfK Group were entitled
to convert part of their variable remuneration into stock options in
GfK se. The option term is five years; options cannot be exercised
until two years after issue.
The GfK Group applies ifrs 2 for stock options issued. This remuneration, which is to be settled with equity instruments, was valued
at the fair value on the grant date. The obligation was entered as
expense in the income statement whilst the counter-entry was made
under capital reserve.
Long-term incentive plans for employees and executives
of the GfK Group
Since financial year 2006, selected executives of the GfK Group
have been entitled to convert part of their variable remuneration
into virtual GfK shares. Virtual shares entitle the holders to cash
payments at the end of the three-year performance period. GfK
grants a corresponding volume of additional performance shares.
The payment for the performance shares, which is also due at the
end of the performance period, depends on the achievement of
two performance targets, the total shareholder return (tsr) on GfK
shares compared with the tsr on shares of companies listed in the
dj Euro Stoxx Media Index, and on the increase in operating profit
at the GfK Group, which corresponds to adjusted operating income,
over a three-year period.
The amount payable at the end of the performance period is accumulated as provisions. The amount of the provisions is based on
an actuarial opinion.
From financial year 2010 onwards, a different arrangement applies
for members of the Management Board of GfK se. The members
of the Management Board are granted an individual bonus amount,
half of which is converted into virtual shares and half into a
performance-based long-term cash bonus.
Tax on income from ongoing business activity comprises the current
and deferred tax expense.
The conversion into virtual shares of the target amount of virtual
shares is based on the GfK share price in the 20 trading days preceding the start of the performance period. The shares may first
be exercised after a four-year blocking period during a two-year
exercise period in specific trading windows. If a dividend is paid
to shareholders, the number of virtual shares increases in the corresponding value.
The following applies to the performance-based long-term cash
bonus: after expiry of a four-year performance period, the beneficiary
is entitled to payment of an amount in cash. The amount is determined by the extent to which the specified performance target (average return on capital employed of GfK, or GfK roce, for the four-year
period) was achieved by December 31 of the third year following the
year in which the bonus was granted. Payment for the corresponding
term is calculated on the basis of the audited financial statements.
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GfK_113
Accounting policies
If the employment ends prior to expiry of the performance period
as a result of notice being given or resignation, the bonuses granted
to members of the Management Board of GfK se expire without
compensation.
Intangible assets
Goodwill
Goodwill arising from the capital consolidation of subsidiaries and
that transferred from subsidiaries’ financial statements into the
consolidated financial statements is reported by the GfK Group
under intangible assets.
In business combinations, goodwill represents the remaining difference in assets after the costs of acquisition of the participation
are offset against the proportion of acquired revalued equity.
Goodwill from the acquisition of companies which do not report in
euros is recorded in the reporting currency of the acquired subsidiary. The exchange rate at the time of first consolidation is used to
calculate the goodwill at initial recognition. Subsequent measurements are based on the mean rate as at the reporting date.
The GfK Group checks the recoverability of its cash generating
units, including goodwill, as part of an impairment test once a year
or when triggering events or changed circumstances arise. For
this purpose, goodwill is allocated to four cash generating units
corresponding to the sectors, matching the internal Group control.
The cash generating units are therefore the three sectors Custom
Research, Retail and Technology and Media, supplemented by Other.
Recoverability of goodwill is indicated when the recoverable amount
is not less than the carrying amount of the cash generating unit.
The recoverable amount corresponds to the fair value less costs
to sell or the value in use if higher. The GfK Group calculates the
fair value less costs to sell as part of the impairment test, using the
discounted cash flow procedure based on anticipated future cash
flow from the relevant current five-year plan. The growth in cash
flow after the five-year period (perpetuity) is taken into account by
reducing the discount interest rate by 1.7 percentage points (2009:
1.7 percentage points). Similar to the discount interest rate, this
deduction from the growth rate is derived from available external
capital market data.
The discount rate is determined by carrying out a weighted average
capital costs calculation, taking into account the standard industry
capital structure and standard industry financing costs. The resulting discount rate was 6.7 % to 7.0 % as at September 30, 2010
(2009: between 7.4 % and 7.7 %), depending on the cash generating unit. The discount rate before tax as at September 30, 2010
was 8.8 % to 10.1 %. The discount rate takes into account the
respective equity and country risk as well as tax advantages from
the external financing of the cash generating unit concerned.
114_GfK
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Where an intangible asset has been subject to impairment, there is
a maximum write-up to the amount recoverable if a higher amount
is recoverable at a later date. The carrying value after the write-up
may not exceed the carrying value which would have resulted
had the impairment not taken place in the past. The write-up is
reported in the income statement in the position which previously
included the impairment.
Internally generated intangible assets
At the GfK Group, internally generated intangible assets mainly
comprise software and panel set-up costs.
As a rule, software developed by companies in the GfK Group
is used internally for analyzing and processing market research
data. In some cases, it is destined for external users and was written
specifically to meet user requirements. Internal costs of software
development are capitalized under non-current assets if the criteria
according to ias 38 are met. Amortization commences on completion
of the software.
Panel set-up costs generally involve capitalized development costs
for setting up new panels or expanding existing panels. Capitalized
panel set-up costs include:
• Spending on materials and services used in constructing panels
• Wages and salaries and other employment expenses for staff
directly involved in setting up panels
• Overheads necessarily incurred in panel set-up and which can
reasonably and regularly be allocated to this, based on cost
accounting.
Costs arising from the preparation and application phase and
maintenance costs for current panels cannot be capitalized. They
are included in expenses.
Panel set-up costs are only subject to scheduled amortization if
they are directly incurred in conjunction with a specific, fixedterm current client order. As a rule, the amortization period in
such cases is based on the duration of the contract or the useful
life. In all other cases, the useful life of panels is indefinite and they
are not subject to scheduled amortization. The value of panels is
checked at least once a year as part of an impairment test.
Expenses for research activities are reported as expenses in the
period under review. Development costs which did not result in a
capitalizable intangible asset are also reported as expenses.
Miscellaneous intangible assets
Financial instruments
Miscellaneous intangible assets include, in particular, software
acquired, surveys, customer relations and brands.
Financial instruments are contracts which result in a financial asset
with one company and a financial liability or an equity instrument
with another.
Miscellaneous intangible assets are entered in the balance sheet
at amortized cost and are subject to scheduled, straight line amortization. This does not apply to customer relations and brands.
As a rule, the useful life of software and miscellaneous intangible
assets is three to ten years.
Customer relations are generally subject to diminishing balance
amortization over a period of four to 22 years at an individually
determined customer churn rate of between 7 % and 44.7 %.
Financial liabilities regularly constitute a return entitlement in
cash or other financial liabilities. At the GfK Group, they primarily
comprise amounts due to banks, trade payables, liabilities under
finance lease agreements and derivative financial instruments.
Brands are not subject to scheduled amortization and have an
indefinite useful life. They are subject to an impairment test at
least once a year.
In the GfK Group, financial instruments are entered on the balance sheet as bought or sold on the trade date, i.e. on the date
on which the obligation to buy or sell a financial instrument was
entered into.
The interest on borrowing relating to qualifying assets is capitalized. Intangible assets with an indefinite useful life are subject to
an impairment test at least once a year.
In the case of fixed-income financial instruments, interest rate
changes may result in a change in fair value and in the case of
variable-rate financial instruments, in fluctuations in interest
payments. In principle, current receivables and liabilities are not
subject to interest rate risks.
Tangible assets
Tangible assets are valued at cost less cumulative depreciation. The
interest on borrowing relating to qualifying assets is capitalized.
Cumulative depreciation generally includes scheduled straight line
depreciation up to the balance sheet date and any impairments
recorded. The depreciation period corresponds to the useful life.
Assets in the course of set-up are not subject to scheduled depreciation.
Financial assets and financial liabilities are recorded if the GfK
Group is a contractual party in relation to a financial instrument.
Useful life in
years
Administrative buildings
it equipment
50
3 to 5
Cars and other vehicles
Office equipment
Office furniture
5
3 to 5
10 to 13
Financial assets are valued at fair value when they are first recognized. With regard to financial assets which are not subsequently
valued at fair value and recognized in profit or loss, the transaction
costs directly attributable to the acquisition are taken into account.
The fair values stated on the balance sheet regularly correspond
to the market prices of the financial assets. Where these cannot be
determined directly on the basis of an active market, they are valued
using standard market procedures (valuation models). These are
based on instrument-specific market parameters. Non-interestbearing and low-interest financial assets with a term of more than
one year are discounted. For financial assets with a remaining term
of less than one year, it is assumed that the fair value corresponds
to the nominal value.
The item fixtures and fittings also includes unfinished technical
equipment.
Financial assets are taken off the books if the contractual rights to
payments arising from the financial assets expire or if the financial
assets are transferred with all material risks and rewards.
Lease arrangements are entered on the balance sheet according to
ias 17, with either a finance or an operating lease depending on the
type of contract.
The loans and long-term deposits reported under other financial
assets are assigned to the loans and receivables category. They are
valued at amortized cost using the effective interest rate method.
Finance leases are characterized by the fact that risks and rewards
of leased assets are generally transferred to the lessee. With a finance
lease, the leased item is capitalized by the lessee and a corresponding leasing liability is recorded. The leasing liability is equivalent to
either the present value of the minimum lease payments or the fair
value of the leased asset at the start of the lease arrangement if lower.
Financial assets held for trading purposes are valued at fair value.
In addition to securities and fixed-term deposits, they include
derivative financial instruments which are not linked to an effective
hedge agreement according to ias 39 and whose classification as
financial assets held for trading is therefore mandatory. Any gain
or loss resulting from the subsequent valuation of financial assets
that are held for trading is reported in the income statement.
The capitalized leased asset is subject to scheduled straight line
depreciation. The depreciation period is the lease term or the economic useful life, whichever is shorter. Subject to fulfillment of the
preconditions, an impairment is recorded.
The lease liability is amortized over the contractual period through
lease payments. Discounts are written up by applying a constant
interest rate to the remaining debt and recorded in interest expenses
within other financial expenses.
With operating leases, the leased assets are entered on the balance
sheet of the lessor. The lessee records the regular payments as rental
expense.
The GfK Group normally applies the useful life periods shown in
the following table.
Asset
Financial assets comprise, in particular, cash and cash equivalents, equity instruments held in other companies (e.g. participations), trade receivables, other loans granted and receivables,
and primary financial instruments and derivatives held for trading
purposes.
With regard to the accounting policies applied to financial investments, management has stipulated at its discretion as the competent body that financial investments are never classified as held to
maturity, but instead always as available for sale.
At the GfK Group, the category of available-for-sale financial assets
represents the residual amount of primary financial instruments,
for which ias 39 applies and which were not allocated to a different category. They comprise investments in affiliated companies
reported under other financial assets, other participations and other
available-for-sale securities.
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Accounting policies
In principle, the valuation is based on the fair value derived from
the market price where a price quoted in an active market is
available. Any gains and losses subsequently resulting from the
valuation at fair value are directly recognized in equity. This does
not apply if the item relates to permanent or material impairments,
or exchange rate-related changes in the value of debt instruments.
These are reported in the income statement.
The accumulated gains and losses from the valuation at fair value,
which are stated in equity, are only reported in the income statement on disposal of the financial assets. If the fair value cannot
reliably be determined for equity instruments that are not quoted on
the stock exchange, participations are valued at cost in particular
(less impairments where applicable).
Impairment expenses are stated if the carrying value of a financial
asset is higher than the present value of future cash flows. An
impairment test is carried out on every reporting date. In order to
ascertain and objectively verify impairment, the following triggering
events are considered:
• The debtor faces considerable financial difficulties.
• Observable data show that a measurable reduction in expected
future cash flows has occurred since the asset was first recognized.
To decide whether an impairment is required, the existing loans
which are allocated to the loans and receivables category and therefore subsequently valued at amortized cost are analyzed. On the
relevant reporting date, it is checked whether there is an objective
indication of impairment that should be taken into account on the
balance sheet. The impairment amount is calculated on the basis
of the difference between the carrying value and the recoverable
value, in other words, the present value of expected future cash
flows which is discounted at the original effective interest rate
of the financial instrument. To simplify matters, cash flows from
current liabilities are not discounted.
Financial liabilities are valued at fair value when they are recognized
for the first time. The directly attributable transaction costs are also
stated for financial liabilities that are not subsequently valued at fair
value, and amortized over the term using the effective interest rate
method.
Primary financial liabilities are in principle valued at amortized cost.
They include financial liabilities, trade payables and other financial
liabilities and deferred items. Non-interest-bearing and low-interest
liabilities with a term of more than one year are discounted. With
regard to liabilities with a term of less than one year, it is assumed
that the fair value corresponds to the repayment value.
116_GfK
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The mandatory classification of any derivative financial instruments
which are not linked to effective hedge agreements is held for trading. Accordingly, they must be included in the income statement at
fair value. If the fair value is negative, a financial liability is stated.
Financial liabilities are taken off the books if the contractual obligations have been settled, extinguished or have expired.
Borrowing costs are recorded as expenses in the period in which
they were incurred.
The market value of financial instruments to be valued at fair value
is generally established on the basis of stock exchange prices. If
no stock exchange prices are available, the financial instruments
are valued using standard market procedures (valuation methods)
based on instrument-specific market parameters.
The discounted cash flow method is used to establish the fair value,
taking into account individual credit ratings and other market
circumstances in the form of prevailing market credit ratings and
liquidity spreads for determining the present value.
There are no liquid markets for financial instruments in the loans
and receivables category, which are valued at amortized cost. For
short-term loans and receivables, it is assumed that the market value
corresponds to the carrying value. For all other loans and receivables, the market value is established by discounting the expected
future cash flows. The interest rates applied for loans are those
which would be used for new loans with a similar risk structure,
original currency and loan term.
For shares in unlisted companies, it is assumed that the carrying
value corresponds to the market value. The market value could
only be reliably established on the basis of concrete acquisition
negotiations.
Trade payables and other current financial liabilities generally
have a remaining term of less than one year, so the carrying value
approximately corresponds to the fair value.
For non-current financial liabilities, the fair values are determined
as the present values of the payments associated with the liabilities.
The GfK Group concludes transactions throughout the world in
various currencies, which may involve currency risks. In addition,
short-term investments, investments in securities and borrowing
from banks take place in various currencies and can result in risks
due to changes in exchange rates, interest rates and market prices.
More detailed information on currency and interest rate risks as well
as the goals, strategies and processes of the risk management is
provided in the risk report, which is part of the Management Report.
The GfK Group uses currency forward transactions, combined
interest rate and currency swaps as well as interest rate swaps to
hedge against currency and interest rate risks.
Derivative financial instruments are reported at cost as asset or
liability at the time of the transaction and subsequently valued at
fair value. The valuation of derivative financial instruments is carried out using standard market procedures based on instrumentspecific market parameters. Market prices are calculated on the
basis of present value and option price models. Where possible,
the relevant market prices and interest rates on the balance sheet
date are used as input parameters for these models.
In hedge accounting, changes in the value of derivative financial
instruments are recorded differently, depending on whether the
instrument is a fair value hedge, cash flow hedge or net investment
hedge.
If the derivative financial instrument is used to hedge against the
risk of changes in the value of assets or liabilities, it represents
a fair value hedge. In this case, changes in the value of both the
hedged underlying item and the derivative financial instrument are
taken to the income statement.
With changes in the value of cash flow hedges used to hedge
underlying transactions against risks from fluctuations in future
payment flows, the effective portions of the fair value fluctuations
are initially reported under income and expense recognized directly
in equity. If the effectiveness of a hedge is not in the range of 80 %
to 125 %, the hedge is liquidated. The ineffective portions of hedges
are charged directly to the income statement. The risk regarding the
amount of future cash flows applies, in particular, to variable-rate
loans and planned transactions that are highly likely to occur.
Once the hedged transaction affects the income statement, the
profits and losses accumulated in the income and expense recognized directly in equity must be released with impact on the
income statement.
Net investment hedges can be used to secure net investment in
foreign subsidiaries. This may, for example, involve a foreign
currency loan in the local currency of the acquired participation.
Any exchange gains or losses resulting from the cut-off date valuation of the foreign currency loan relating to the effective portion
are recorded in income and expense recognized directly in equity,
as is the case for cash flow hedges.
If the hedge is considered highly effective, the exchange gains and
losses from the hedging instrument are posted in the income and
expense recognized directly in equity. The release with impact on
the income statement of this item does not occur at the end of term
of the hedging instrument, but only upon sale or liquidation of the
hedged item.
The prerequisite for using any type of hedge accounting is that
the link between the hedged item and the hedging instrument is
accurately documented. It must also be recorded how the hedging
instrument used compensates the risk relating to the hedged item
highly effectively and which methods are used to substantiate the
effectiveness.
Generally, the part of the changes in value not covered by the hedged
item is taken to the income statement.
In addition, the GfK Group enters into hedge agreements which do
not meet the stringent regulations of ias 39 and cannot therefore
be reported according to the rules of hedge accounting. From a
financial point of view, these hedge agreements also comply with
the risk management principles. Furthermore, hedge accounting
is not applied to foreign currency hedges relating to reported
cash assets and liabilities, since the gains and losses realized on
the underlying instruments as a result of currency translation and
reported in the income statement according to ias 21 are linked
to the gains and losses on the derivative hedging instruments and
virtually offset each other in the income statement.
Receivables and other assets
Trade receivables include both billed and unbilled receivables.
Non-invoiced receivables can arise in the context of the valuation
of sales.
Receivables are stated at nominal value or, in the case of identifiable specific risks, at the lower attributable value. These valuation
allowances take sufficient account of the default risk. Group-wide
guidelines regulate hedging against the risk of non-payment.
Accordingly, a value adjustment of 50 % must be applied to
receivables that are six to nine months overdue. If receivables are
overdue by nine to twelve months, the value adjustment amounts
to 75 %. If receivables are more than twelve months overdue, or
the client company is in the process of being wound up, a valuation
allowance of 100 % must be applied. Exceptions are possible,
subject to authorization by the relevant management.
A credit check of new clients should be obtained from a recognized
credit agency if the order volume exceeds 0.1 % of the company’s
external sales. If no satisfactory data about the client is available,
two-thirds of the order value is payable prior to delivery of the
relevant data. The credit rating of existing clients must also be
monitored on the basis of the specified rules. In addition, the credit
risk is minimized through issuing invoices for prepayments and
on-account payments.
Derivative financial instruments, hedge accounting
Inventories
Inventories are valued at the lower of cost and net realizable value.
Due to their subordinated importance to the consolidated financial
statements of the GfK Group, inventories are reported under other
current assets and deferred items.
Cash and cash equivalents contain cash on hand and in banks, as well
as liquid investments with a remaining term of less than three months.
forward > >
GfK_117
Accounting policies
Equity and liabilities
Trade payables and other liabilities
Capital reserve
Trade payables and other liabilities are stated at repayment value.
Obligations under invoices outstanding are reported under trade
payables.
GfK se’s equity which is not part of the subscribed capital attributable to capital contributions of shareholders, and which does not
result from generated income, is reported under the capital reserve.
Services that are linked to deposits for the purposes of acquiring
shares or granting privileges, as well as other services aimed at
strengthening equity, are also reported under the capital reserve.
Retained earnings
Amounts created from income in the financial year under review
or prior financial years are reported as retained earnings. This
includes a statutory reserve to be created from income. In addition, the actuarial gains and losses from defined benefit plans are
included in retained earnings.
Other reserves
Other reserves comprise changes in Group equity, which initially
are not reported in the income statement and which do not involve
contributions by shareholders or distributions to shareholders.
These changes result from exchange rate differences, unrealized
profits and losses from available-for-sale securities and the valuation of hedging instruments (cash flow and net investment hedges).
Minority interests
Any non-controlling shares are reported as minority interests.
Liabilities on orders in progress
Liabilities on orders in progress comprise payments on account
and accrued amounts from the recognition of sales. Within this
item, sales are accrued which have arisen from contractually
agreed invoices for prepayments or payments on account, but
cannot yet be recognized as sales according to the above described
sales recognition methods.
Consolidated cash flow statement
The cash flow statement shows the changes to the balance sheet
item “cash and cash equivalents” resulting from cash flows from
operating activity, investing activity and financing activity.
The cash flow from operating activity is derived indirectly from
changes to balance sheet entries. These are adjusted for the effects
of currency translation and changes in the scope of consolidation.
As a consequence, only a limited reconciliation is possible between
the changes in the balance sheet items according to the consolidated
cash flow statement and the arithmetical changes in the consolidated
financial statements, the schedule of movements in non-current
assets and other information in the notes to the financial statements.
Provisions
In principle, provisions are set up when an obligation to a third
party will probably result in an outflow of funds. In addition, the
level of the obligation needs to be estimated reliably. Long-term
provisions are discounted if they are interest-free or low-interest.
Provisions for pensions are valued in accordance with the projected
unit credit method, in which future compensation increases are
taken into account. The amount shown on the balance sheet
represents the present value of the obligation, adjusted by the
unrecognized past-service costs after offsetting the fair value of
the plan assets. The discount rate is based on the interest rate for
prior-ranking fixed-income corporate bonds.
Payments for defined contribution plans are stated as expenses
when they occur.
Actuarial gains and losses on defined benefit plans are recorded
directly in retained earnings without impact on income in exercise
of the option in ias 19.
Financial liabilities
Financial liabilities include interest-bearing liabilities relating to
financing, particularly loans from banks and other lenders, liabilities
under finance leases and other interest-bearing liabilities.
The GfK Group reports rights to make delivery (put options or
bonds) held by minority shareholders and variable purchase prices
in connection with buying shares as purchase price elements which
depend on future events and are impacted by future sales and ebit.
The minority interests affected by this are not reported as minority
interests. The associated non-current or current financial liabilities
are generally valued at fair value. Interest added to payment obligations is reported under interest expenses.
118_GfK
< < back
Estimates
To a certain extent, estimates and assumptions cannot be avoided
in the consolidated financial statements. They may affect assets and
liabilities as well as contingencies on the balance sheet date and
the income and expenses for the financial year. These estimates
were made by the management, taking into account all known facts
to the best of their knowledge. Nevertheless, the actual amounts
may deviate from such estimates.
The most important estimates regarding the future performance of
the GfK Group and its economic environment are described in the
Outlook section of the Management Report.
—
Associated companies
4. scope of consolidation and major acquisitions
The consolidated financial statements as at December 31, 2010
report on participations in one (2009: two) associated company in
Germany and 13 (2009: 16) associated companies abroad.
As at December 31, 2010, the scope of consolidation in accordance
with ifrs included ten (2009: ten) German and 142 (2009: 145)
foreign subsidiaries in addition to the parent company.
As at May 1, 2010, a 40 % stake was acquired in SirValUse Consulting
GmbH, Hamburg, Germany.
The table below shows the changes in fully consolidated subsidiaries
between January 1, 2010 and December 31, 2010.
The participation in Infotab Research GmbH, Munich, Germany, was
sold in December 2010. Ernst und GfK Grundstücksgesellschaft,
Nuremberg, Germany, was wound up in December 2010.
Fully consolidated subsidiaries (number)
01.01.2010
Additions
Disposals
10
0
0
10
Abroad
145
3
–6
142
Total
155
3
–6
152
Germany
31.12.2010
For reasons of materiality, the 51 % stake in GfK – Conecta s.a.c.,
Lima, Peru, acquired in 2009, and its holding company, GfK Custom
Research Latam Holding, s.l., Valencia, Spain, were not consolidated
until January 1, 2010. Both companies’ activities are based in the
Custom Research sector.
GfK Retail and Technology Asia Holding b.v. (the former ifr Nederland b.v.), Amsterdam, the Netherlands, was consolidated for the
first time on October 1, 2010. The company has since been the
holding company for the Asian GfK companies with activities in the
Retail and Technology sector.
On January 1, 2010, the Custom Research sector companies Doane
Marketing Research, Inc., Saint Louis, Missouri, usa, and Marketeam
Associates of Ohio Inc., Cleveland, Ohio, usa were merged with
Marketeam Associates of Missouri, Inc., Saint Louis, Missouri, usa,
which then changed its name to Doane Marketing Research, Inc.
Datarectory, Inc., Saint Louis, Missouri, usa, was wound up. In
addition, GfK HealthCare Nederland b.v., Bussum, the Netherlands,
was merged with Intomart GfK b.v., Hilversum, the Netherlands, on
January 1, 2010.
On July 1, 2010, gfk isl s.a., Issy les Moulineaux, France, whose
activities are also based in the Custom Research sector, was merged
with gfk custom research france sarl, Rueil-Malmaison, France,
which changed its name to gfk isl, custom research france sas,
Rueil-Malmaison, France.
In March 2010, Bureau voor Reclame Statistiek Hoofddorp b.v.,
Hoofddorp, the Netherlands, was wound up. The participations in
ggc-nop Limited, London, uk, and Phononet ag, Zurich, Switzerland,
were sold in February and July 2010 respectively.
Other participations
The number of other participations is three (2009: four).
The participation in tmc Thomson Media Control GmbH & Co. kg,
Baden-Baden, Germany, was sold in March 2010.
—
5. sales
Sales are broken down according to type as shown in the table below:
Sales in respect of third parties, billed
Sales in respect of third parties, unbilled
2009
2010
1,137,716
1,266,722
21,752
23,333
Sales in respect of related parties and groups
2,982
2,325
Sales in respect of Group companies
2,082
1,828
1,164,532
1,294,208
Sales
The breakdown of sales according to sector and region is shown
under Section 33. Segment reporting.
—
6. cost of sales
The shares in Orange Interactive Research ab, Stockholm, Sweden,
were sold on December 20, 2010. The company has been divested.
The breakdown of cost of sales is shown in the table below:
Companies of minor importance
Personnel expenses
The GfK Group did not include 40 (2009: 47) companies in the
consolidated financial statements during the reporting year,
because they were of minor significance for the net assets, financial
position and income of the Group.
Depreciation and amortization
External sales, total assets and annual income from these companies
together totaled between 0.4 % and 1.9 % of the corresponding
figures in the consolidated financial statements.
Research and development costs
Other cost of sales
Cost of sales relating to Group companies
Cost of sales (before research and
development costs)
Cost of sales (including research and
development costs)
2009
2010
381,526
416,586
58,773
44,948
359,537
393,233
5,691
7,834
805,527
862,601
7,707
9,743
813,234
872,344
forward > >
Fully consolidated companies
GfK_119
Notes to the consolidated income statement
—
—
7. selling and general administrative expenses
11. adjusted operating income
The breakdown of selling and general administrative expenses is
shown in the table below:
Adjusted operating income is the internal management indicator for
the GfK Group and is explained in detail in the Management Report.
It is derived as follows:
Personnel expenses
Other selling and general administrative expenses
2009
2010
121,137
129,882
8,705
9,055
119,246
128,281
Selling and administrative expenses relating to
Group companies
1,252
876
250,340
268,094
2009
2010
Operating income
88,906
136,741
Expenses and income in connection with
reorganization and business combinations
16,013
6,649
Write-ups and write-downs of additional assets
identified on acquisitions
27,531
16,356
Personnel expenses for share-based
payments and long-term incentives
Remaining other operating income
—
8. other operating income
Remaining other operating expenses
3,043
9,848
– 19,913
– 18,314
31,574
33,706
147,154
184,986
Other operating income includes the items shown in the table below.
2009
2010
14,266
15,866
Reversals of impairments
4,087
1,287
Elimination of liabilities
1,464
18
Exchange gains
Miscellaneous
4,183
2,431
24,000
19,602
Miscellaneous operating income mainly consists of income from
refund claims, income from insurance policies and profits on the
disposal of tangible assets.
9. other operating expenses
Expenses and income in connection with reorganization and business combinations comprise expenses of eur 6,649 thousand (2009:
eur 16,013 thousand) arising from the biss fitness and efficiency
program. The biss-related expenses primarily include costs of external consultancy and training services as well as severance pay.
The composition of write-ups and write-downs on additional assets
identified on acquisitions and the allocation to items in the income
statement are shown in the table below.
Other operating expenses include the items shown in the table
below, which have not been assigned to functional costs.
2009
2010
19,126
23,224
3,232
2,328
Personnel expenses
7,003
3,083
6,691
36,052
7,996
36,631
Miscellaneous
Expenses and income in connection with reorganization and
business combinations
Write-ups and write-downs on additional assets identified on
acquisitions
—
Exchange losses
In the prior year, the remaining other operating expenses included
vat payments for prior years totaling eur 1,986 thousand.
2009
2010
Scheduled amortization
Cost of sales
15,597
6,480
0
5,555
570
85
11,408
6,782
Scheduled amortization of current assets
Cost of sales
Impairments
Personnel expenses primarily comprise severance payments in
relation to positions which were no longer filled. Miscellaneous
operating expenses include amortization of software projects, rental
and lease expenses for parts of buildings which are no longer used,
losses on the disposal of assets, expenses in respect of government
authorities and expenses relating to liability, penalties and damages.
Cost of sales
1,275
2,441
3,231
2,328
Reversal of impairments
Cost of sales
0
– 508
0
– 5,206
– 4,087
– 1,287
– 463
– 314
27,531
16,356
Amortization of hidden charges
—
10. personnel expenses
Cost of sales
The expense items in the income statement include the personnel
expenses listed in the table below.
Wages and salaries
Social security contributions and expenses for pensions
Personnel expenses
120_GfK
< < back
2009
2010
427,930
459,202
82,575
91,489
510,505
550,691
Write-ups and write-downs on additional assets identified on acquisitions
Further details are provided in Section 16, in the sub-section
“Amortization and impairments on intangible assets”.
Since 2009, no personnel expenses have arisen under the plan for
granting option rights to executives of the GfK Group, because no
new tranches have been issued since 2007. The total value of each
tranche was distributed over two years to the day after the options
were issued, which corresponds to the period between issue and
the date on which options could be exercised for the first time.
Expenses of eur 9,124 thousand (2009: expenses of eur 3,043
thousand) were incurred in 2010 for the 5 Star Long-Term Incentive
Plan for GfK Group employees and managers. This is the amount
transferred to the relevant provisions in addition to the premium
waiver of the employees included for 2010, which is based on calculations by an expert. Details are provided in the section entitled
“Accounting policies”.
The table below shows the number, term and value of virtual
shares and virtual performance shares issued as part of the 5 Star
Long-Term Incentive Plan.
instruments and eur 4,550 thousand (2009: eur 3,166 thousand)
in interest expenses on future purchase price liabilities (put options
or bonds) for the acquisition of shareholdings. Further information
about the use of derivative financial instruments is provided in Section 28. Financial instruments and Section 29. Risk management.
—
14. tax on income from ongoing business activity
The main elements of the Group’s tax on income are shown in the
table below.
2009
2010
Taxes on income from other periods
– 850
3,318
Tax income resulting from tax losses not
previously utilized
– 146
0
Current tax expenses/income
Tax income resulting from the use of tax refunds not
previously utilized
Other actual taxes on income
Tranche
Year issued
Year of payment
2
3
4
5
2007
2008
2009
2010
2011
– 869
43,024
32,424
45,473
Deferred tax expenses/income
2012
2013
Number of virtual shares issued
54,416
87,428 124,475
78,243
Number of virtual performance shares
issued
from the formation or reversal of temporary
differences
– 794
6,095
54,416
87,428 124,475
78,243
from changes in the tax rate/new taxes
– 683
– 129
31.46
based on previously non-utilized tax losses and
interest carried forward/tax credits
– 3,694
– 2,751
22.43
based on new tax losses incurred and applied and
– 2,216
– 3,998
1,675
1,653
– 11,085
– 5,692
Fair value of a virtual share at the time
of issue in EUR
2010
Current tax expenses/income
0
33,420
25.71
Fair value of a virtual performance share
at the time of issue in EUR
9.68
16.74
8.71
21.37
3.01
from the utilization of loss carried forward and
For the Long-Term Incentive Plan for members of the GfK se
Management Board, expenses of eur 724 thousand were incurred.
Launched in 2010, the new plan has a term of four years and
replaces the 5 Star Long-Term Incentive Plan for Management
Board members from tranche 5 onwards. A total of 43,310 virtual
shares were granted with an issue price of eur 23.67 per share.
—
12. other financial income
Other financial income amounting to eur 12,225 thousand (2009:
eur 6,140 thousand) mainly comprises income from derivative
financial instruments of eur 10,740 thousand (2009: eur 5,082
thousand) as well as interest on bank credit balances of eur 542
thousand (2009: eur 446 thousand).
—
13. other financial expenses
Other financial expenses break down as shown in the table below.
Interest and similar expenses due to banks
Other interest expenses
Interest expenses
Miscellaneous financial expenses
Other financial expenses
2009
2010
10,746
9,362
8,892
9,696
19,638
19,058
3,835
8,979
23,473
28,037
from write-ups and write-downs on additional
assets identifi ed on acquisitions
Other deferred tax expenses
Deferred tax expenses/income
Taxes on income from ongoing business activity
– 692
123
– 17,489
– 4,699
14,935
40,774
The balance sheet for 2010 recorded a deferred tax asset due
to non-utilized tax losses totaling eur 10,796 thousand (2009:
eur 7,596 thousand). In addition, there was a deferred tax asset
from interest carried forward and tax credits amounting to
eur 12,669 thousand (2009: eur 9,148 thousand).
The tax rate used to calculate deferred taxes for GfK se and its
German subsidiaries that form part of a tax group comprises
corporation tax of 15 % plus the solidarity surcharge of 5.5 % on
the corporation tax debt paid as well as the effective trade tax rate
of 15.645 %. This results in a tax rate of 31.470 % as at December
31, 2010.
Personnel expenses for share-based payments
and long-term incentives
The deferred taxes of the remaining German companies are
calculated according to the relevant municipal factor of the trade
tax rate. The deferred taxes of the companies outside Germany
are calculated according to the respective country-specific tax
rates.
The decrease in interest expenses due to banks mainly results
from the reduction in amounts due to banks compared with the
prior year. Other interest expenses comprise eur 3,430 thousand
(2009: eur 3,683 thousand) in expenses from derivative financial
forward > >
GfK_121
Notes to the consolidated income statement
The table below contains a reconciliation of the anticipated income
tax expense on the income tax expense stated in financial year 2010.
To calculate the anticipated tax expense, the tax rate valid during the
reporting year for the parent company GfK se, which was 31.470 %
(2009: 31.470 %), is multiplied by the pre-tax result.
31.12.2009
5,989
5,036
3,921
2,928
Tangible assets
4,718
4,981
Investments in affiliates
3,295
3,348
Investments in associates and other participations
Total tax rate
Expected tax expense
2009
2010
31.470 %
31.470 %
23,747
39,261
Increase/reduction in income tax
debt resulting from:
Tax-exempt income
– 3,593
– 4,611
Differences in tax rates
– 4,708
– 4,596
Change in temporary differences not recognized
as deferred tax assets, loss carried forward,
interest carried forward and tax credits
Other
Securities and fixed-term deposits,
cash and cash equivalents
Current assets
391
408
15
8
406
416
9,476
9,854
3,737
3,149
13,003
13,213
323
1,799
12,555
17,394
Current liabilities
12,878
19,193
Losses carried forward and interest
carried forward/tax credits
16,743
23,464
– 683
– 129
274
579
Deferred tax assets
996
1)
66,714
74,589
1,432
Goodwill
– 17,666
– 21,818
– 57,928
– 57,056
2,151
1,618
– 2,285
2,435
Tangible assets
– 6,124
– 6,558
2,131
6,460
Investments in affiliates
– 1,561
– 1,539
1,093
Investments in associates and other participations
– 121
–2
– 239
– 519
– 350 1)
14,935
40,774
– 286
– 4,264
Non-current assets
– 83,925
– 91,756
The item “Tax from prior years” comprises the negative tax impact
in prior years arising from provisions for tax risks at subsidiaries
of eur 3,466 thousand. The rise in non-deductible expenses of
eur 4,329 thousand on the prior year resulted primarily from a
change in the tax treatment of exchange gains and losses on hedging transactions in connection with the disposal of participations
(bmf letter dated August 25, 2010).
Receivables and current other assets
– 12,467
– 13,905
The following income tax assets and liabilities have been recorded
in the balance sheet:
31.12.2009
Non-current income tax assets
Securities and fixed-term deposits,
cash and cash equivalents
Current assets
– 36
–6
– 12,503
– 13,911
– 246
– 787
– 4,050
– 257
– 4,296
– 1,044
– 804
– 104
– 2,482
– 1,048
Current liabilities
– 3,286
– 1,152
– 104,010
– 107,863
Net deferred tax liabilities
– 37,296
– 33,274
31.12.2010
914
2,141
Current income tax assets
18,243
13,307
Total income tax receivables
19,157
15,448
Non-current income tax liabilities
388
50
Current income tax liabilities
25,291
25,919
Total income tax liabilities
25,679
25,969
Deferred taxes are reported in the balance sheet as shown in the
following table.
31.12. 2009
Deferred tax assets
31.12.2010
32,600
38,901
– 69,896
– 72,175
Non-current income tax assets are reported under the balance sheet
item “Non-current other assets and deferred items”.
Net deferred tax liabilities
– 37,296
– 33,274
The non-current income tax liabilities are included in the balance
sheet item “Non-current other liabilities and deferred items”.
Taxes resulted on items posted directly to equity as shown in the
table below.
The deferred taxes result from the balance sheet items shown in the
following table.
Tax in cumulative other equity from
net investment hedges
Tax in cumulative other equity from securities
Tax in cumulative other equity from
cash fl ow hedges
Tax in cumulative other equity from actuarial
gains/losses from defined benefi t plans
Tax posted directly in equity
122_GfK
2,181
18,513
1) The allocation of the prior year’s fi gures has been adjusted
Receivables and current other assets
2,841
23,474
– 190
Expenses from future purchase price liabilities
that cannot be utilized for tax purposes
Tax expense reported
Non-current assets
32
– 2,578
Consolidation of taxable income from
participations
Non-deductible expenses
7
2,634
– 815
Adjustment of deferred tax due to changes
in tax rates
Tax from prior years
76
– 1,930
Change in permanent differences
Deviating tax base
31.12.2010
Goodwill
< < back
31.12.2009
31.12.2010
– 8,404
– 7,607
2
2
242
47
2,237
3,760
– 5,923
– 3,798
The estimate of their future realizability governs the recognition and
valuation of deferred tax assets. This is dependent on the generation of future taxable profits during accounting periods in which
tax valuation differences are reversed and tax loss carryforwards,
interest carried forward and tax credits can be applied.
In view of expected future performance, it is assumed probable that
the relevant benefits of the recognized deferred tax assets will be
realized according to the provisions of ifrs. For companies which
reported deferred tax receivables for tax loss carryforwards and
which were in a loss-making situation in the year under review or
the previous year, additional deferred tax assets of eur 3,106 thousand (2009: eur 1,061 thousand) are stated, since there is sufficient
assumption of future profits.
The items for which no deferred tax assets have been stated are
shown in the table below.
The average share price during the exercise window was below the
exercise price of the options under tranches 6 and 7. As a result,
there is no dilution effect in respect of the earnings per share.
Additional information about the stock option program is provided
in Section 24. of these Notes. Business events involving potential
ordinary shares did not arise after the balance sheet date.
—
16. intangible assets
The movement in intangible assets is shown in the table below.
Acquisition and
manufacturing costs
Goodwill
Internally
generated
intangible
assets
As at January 1, 2009
31.12.2009
31.12.2010
1,257
1,319
Losses carried forward
18,902
21,167
Interest carried forward/tax credits
Total
9,959
903
30,118
23,389
Of the tax losses not recognized as deferred tax assets, an
amount of eur 4,895 thousand lapses within the next five years.
eur 1,527 thousand will lapse within the next six to ten years and
eur 2,404 thousand in the next eleven to 15 years. The remaining eur 12,341 thousand will lapse after more than 15 years or
include amounts with no time limit on their use. Of the taxable
interest carried forward/tax credits, eur 160 thousand will lapse
within the next six to ten years. The remaining eur 744 thousand
are amounts with no time limit on their use.
The GfK Group reports deferred taxes on retained profits from
foreign subsidiaries where these profits are distributable and
are to be distributed in the foreseeable future. No tax liabilities
were deferred in relation to temporary differences amounting to
eur 10,881 thousand (2009: eur 1,538 thousand) in view of the
fact that there is no pay-out intention.
Pay-outs to shareholders of GfK se do not result in income tax consequences at GfK se level.
Total
intangible
assets
773,989
75,230
282,505
1,131,724
Exchange rate changes
12,260
– 236
– 1,490
10,534
Changes in scope of
consolidation
89,643
42,756
856
46,031
Additions
1
14,091
4,634
18,726
Disposals
0
– 9,957
– 6,061
– 16,018
Reclassifications
0
– 860
1,077
217
As at December 31, 2009
829,006
79,124
326,696
1,234,826
829,006
79,124
326,696
1,234,826
42,077
1,075
20,417
63,569
Changes in scope of
consolidation
Additions
Temporary differences
Miscellaneous
intangible
assets
Disposals
6,987
0
2,446
9,433
917
14,344
13,456
28,717
– 2,648
– 56
– 269
– 2,323
– 272
– 88
448
88
878,659
94,186
361,140
1,333,985
37,523
19,440
144,259
201,222
408
– 88
– 1,618
– 1,298
10,190
Reclassifications
Cumulative amortization
Changes in scope of
consolidation
0
46
10,144
Additions
0
7,071
22,310
29,381
Disposals
0
– 6,910
– 5,454
– 12,364
Impairments
0
2,887
15,946
18,833
0
0
– 4,087
– 4,087
Reclassifications
0
0
109
109
37,931
22,446
181,609
241,986
37,931
22,446
181,609
241,986
1,980
167
10,351
12,498
Changes in scope of
consolidation
0
0
20
20
Additions
0
8,013
19,022
27,035
– 2,112
Disposals
0
– 237
– 1,875
Impairments
0
284
11,556
11,840
0
0
– 7,001
– 7,001
Reclassifications
0
– 22
–4
– 26
39,911
30,651
213,678
284,240
As at December 31, 2010, the Group had domestic tax loss carryforwards amounting to eur 81 thousand (2009: eur 81 thousand), which
can be utilized for corporation tax and trade tax purposes. In addition,
there are foreign tax loss carryforwards totaling eur 57,716 thousand
(2009: eur 43,235 thousand). The domestic tax loss carryforwards can
be carried forward without restriction in terms of time and amount.
Of the foreign loss carryforwards, the amount of eur 16,076 thousand
may be carried forward without limit. The amount of eur 18,015
thousand is available for carryforward until 2025 at the latest, and
eur 12,984 thousand until 2020 at the latest. A total of eur 10,641
thousand can be carried forward until 2015 at the latest.
Carrying values
—
15. earnings per share
Earnings per share are derived as shown below:
Consolidated total income attributable to equity
holders of the parent
Weighted average of shares outstanding (no.)
– non diluted –
Weighted average of shares outstanding (no.)
– diluted –
Earnings per share in eur
Earnings per share (diluted) in eur
2009
2010
50,975
71,651
35,947,363
35,967,252
35,947,363
1.42
1.42
35,967,252
1.99
1.99
736,466
55,790
138,246
930,502
791,075
56,678
145,087
992,840
791,075
56,678
145,087
992,840
838,748
63,535
147,462
1,049,745
The changes in the scope of consolidation under acquisition and
manufacturing costs mainly comprise adjustments in goodwill as
a result of variable purchase price elements in connection with
acquisitions, which were agreed prior to January 1, 2010.
forward > >
GfK_123
Notes to the consolidated balance sheet
Intangible assets of major importance
An impairment test is carried out at least once a year to determine
whether and to what extent existing goodwill is to be impaired. No
impairment adjustment was required as a result of the impairment
tests for 2009 and 2010. There were therefore no impairment
expenses for either financial year.
The sum total of all intangible assets of major importance is shown
in the table below. These figures relate to intangible assets with an
individual value of more than eur 5 million.
31.12.2009
31.12.2010
Goodwill
791,075
838,748
Software
25,270
26,044
Brands
18,277
17,438
Customer relations
15,347
14,160
Surveys
21,019
9,670
Panels
7,492
8,013
Goodwill and brands have an indefinite useful life and are not
subject to scheduled amortization.
Software relates to the internally developed StarTrack analysis
and production system in the Retail and Technology sector with
a remaining useful life of four years as well as the Evogenius
software for the Media sector, which has a remaining useful life of
nine years.
The survey and brands stem from the purchase price allocation
as part of the acquisition of the former nop World. The useful life
for the survey is ten years. The customer relations with an initial
useful life of 19 years resulted from the purchase price allocation
as part of the acquisition of GfK arbor, llc, Media, Pennsylvania,
usa, which was merged with GfK Custom Research, llc, New
York, New York, usa.
The table below provides an overview of the goodwill tested in the
impairment test and the material assumptions used in the impairment test.
Carrying value of goodwill as at
September 30, 2010
Amortization and impairments charged on intangible assets are
included in the income statement under the items shown in the
following table.
Total
528,905
153,181
146,443
5 years
5 years
5 years
Average annual growth in external
sales in the detailed planning period
6%
6%
4%
Average margin (adjusted operating
income/external sales) in the detailed
planning period
9%
29 %
14 %
Growth per year after the end of the
detailed planning period
1.7 %
1.7 %
1.7 %
Discount rate as at September 30, 2010
7.0 %
6.7 %
7.0 %
The value of the panel set-up costs and brands with an indefinite
useful life was also checked as part of an impairment test.
The table below provides an overview of the material intangible
assets with an indefinite useful life tested in the impairment test
and the material assumptions used in the relevant impairment test.
2009
2010
27,380
3,057
9,167
3,231
2,328
48,214
38,875
2010
5,441
Customer relations
1,275
2,441
Brands
3,231
2,328
Panels
2,542
1,337
0
211
2,771
82
Other assets
Software
Order book
Long-term contracts
Total
124_GfK
2009
8,739
< < back
224
0
51
0
18,833
11,840
“mri“
brand
8,013
7,412
10,026
Basis of recoverable amount
Utility
value
Fair value less
selling costs
Utility
value
5 years
3 years
5 years
Average annual growth in
external sales in the detailed
planning period
41,926
“nopr“
brand
Carrying value
Duration of detailed
planning period
The impairment adjustments were identified in the impairment test,
which was based on updated capital market data and the adjusted
business planning. The breakdown of impairment expenses is as
follows:
Surveys
Media
“us Agronomics“
panel
Amortization and impairments of intangible assets
Retail and
Technology
Duration of detailed planning period
The panel resulted from the purchase price allocation as part of
the acquisition of the GfK Kynetec Group.
Cost of sales
Custom
Research
6%
4%
3%
Average margin (adjusted operating income/external sales) in
the detailed planning period
31 %
6%
21 %
Growth per year after the end
of the detailed planning period
1.7 %
1.7 %
1.7 %
Discount rate
7.3 %
7.3 %
7.1 %
The average external sales growth p.a. is in line with historical
values and sales growth in the market research industry prior to
the financial and economic crisis.
The planned margins are based on past empirical values. Future
increases in margins in the Custom Research and Media sectors
will result, in particular, from the positive effects after the end
of the global economic crisis. In the Custom Research sector,
additional synergetic effects are expected from the cross-sector use
of technology, data collection and the use of standard methods as
well as coordinated global key account management.
Based on an assumed discount rate of approx. 9.5 % for Custom
Research and approx. 8.2 % for Media in the impairment test for goodwill, with all other assumptions unchanged, the fair value less selling
costs would correspond to the carrying value of the relevant asset.
Goodwill
The allocation of goodwill to the cash generating units is shown in
the following table.
The breakdown of miscellaneous intangible assets is shown in the
table below.
31.12.2009
Customer relations
44,070
46,903
Brands
29,508
30,063
Panels
26,856
26,942
Surveys
25,131
16,332
344
142
Order book
Contracts
Software
Custom Research
Acquired panels
31.12.2009
31.12.2010
504,968
537,013
Sundry intangible assets
145,487
151,088
Media
140,620
150,647
Goodwill
791,075
838,748
The increase in goodwill of eur 47,673 thousand resulted from a
rise of eur 7,576 thousand from changes in the scope of consolidation and other changes, as well as an exchange rate-driven gain
of eur 40,097 thousand.
Internally generated intangible assets
31.12.2010
Disclosed hidden reserves from
purchase price allocation:
Panel set-up costs
88
0
13,907
15,256
0
5,994
430
510
4,753
5,320
145,087
147,462
The item “acquired panels” is reported for the first time in the
year under review. In addition to a new panel acquired in Japan,
this item includes reclassifications of panels which already existed
in the prior year, most of which were shown under the item
“licenses”.
Brands which have been identified and capitalized as part of the
purchase price allocation have an indefinite useful life. They are
established brands with a high degree of brand recognition.
Internally generated intangible assets primarily comprise internally
developed software totaling eur 45,691 thousand (2009: eur 42,471
thousand) as well as panel set-up costs of eur 14,757 thousand
(2009: eur 13,425 thousand).
The allocation of brands to the sectors is shown in the table below.
Panel set-up costs only have a limited useful life if the panel was
created for a specific, fixed-term client order. Capitalized panel
set-up costs amounting to eur 10,469 thousand (2009: eur 9,486
thousand) have an indefinite useful life.
The allocation of panel set-up costs to the sectors is shown in the
table below.
31.12.2009
31.12.2010
7,644
9,243
894
1,187
Media
948
39
9,486
10,469
Custom Research
Panels set up internally with
an indefinite useful life
Custom Research
31.12.2009
31.12.2010
17,467
19,349
70
0
Media
11,971
10,714
Brands
29,508
30,063
In addition, panels were also identified as part of the purchase
price allocation. Most of these have an indefinite useful life. The
allocation of panels with an indefinite useful life to the sectors is
31.12.2009
31.12.2010
Custom Research
10,296
10,200
15,388
15,664
Panels acquired with an indefinite useful life
25,684
25,864
forward > >
Assuming that a perpetuity growth rate of only 1.7 % is already
applied in the planning for 2014 and 2015, with all other planning
assumptions unchanged, no impairment requirement arises on
goodwill in any of the corporate sectors.
GfK_125
—
Operating lease
17. tangible assets
The movement in tangible assets is shown in the table below.
The payments listed in the table below under operating lease
agreements were carried as expenses:
Acquisition and
manufacturing costs
Minimum lease payments
Changes in scope of consolidation
Land and
buildings
Fixtures and
fittings
Total tangible
assets
50,386
236,296
286,682
– 18
1,396
1,378
Less sub-lease payments received
Lease payments
150
2,906
3,056
Additions
1,176
31,161
32,337
Disposals
– 85
– 13,499
– 13,584
Reclassifications
109
– 326
– 217
51,718
257,934
309,652
51,718
257,934
309,652
3,337
6,485
9,822
12
100
112
Additions
322
23,454
23,776
Disposals
– 167
– 16,049
– 16,216
Reclassifications
2009
2010
31,3201)
35,814
Contingent lease payments
213
243
– 393
– 346
31,140
35,711
1) The valuation of the prior year’s figures was adjusted where this was not appropriate.
As at December 31, 2010, the future minimum lease payments
under non-terminable agreements were due as follows:
Payable
31.12.2009
31.12.2010
Within one year
31,746
32,890
Between one and fi ve years
92,716
95,152
After more than fi ve years
21,518
14,077
145,980
142,119
–4
– 84
– 88
55,218
271,840
327,058
Future minimum lease payments
under operating leases
20,212
172,974
193,186
0
1,177
1,177
The main operating leases in the GfK Group involve leases on land
and buildings, some with options to extend the lease. They have
differing future expiry dates.
Cumulative depreciation
0
1,468
1,468
Additions
1,237
20,893
22,130
Disposals
– 85
– 12,935
– 13,020
0
0
0
Impairments
0
0
0
351
– 460
– 109
21,715
183,117
204,832
21,715
183,117
204,832
1,466
4,462
5,928
0
59
59
Additions
1,346
21,819
23,165
Disposals
Reclassifications
– 167
– 15,274
– 15,441
Impairments
0
102
102
0
0
0
Reclassifications
0
26
26
24,360
194,311
218,671
Finance lease
The carrying values of capitalized leased assets as at December 31,
2010 are shown in the table below.
31.12.2009
31.12.2010
Buildings
9,237
8,839
Other leased assets
2,529
3,139
11,766
11,978
Capitalized leased assets
Determination of the present value and due date of future minimum
lease payments are shown in the tables below.
31.12.2009
Carrying values
30,174
63,322
93,496
30,003
74,817
104,820
Payable
30,003
74,817
104,820
Within one year
30,858
77,529
108,387
Minimum
lease
payments
A land charge has been entered on a piece of land with company
buildings in Nuremberg with a carrying value of eur 8,843 thousand
(2009: eur 9,073 thousand) for the potential granting of a loan by a
bank. Similar to the prior year, no secured liabilities existed as at the
reporting date.
2,504
105
2,399
1,206
9,802
0
0
0
13,512
1,311
12,201
Less
interest
Present value
minimum lease
payments
31.12.2010
Payable
Leasing
The GfK Group leases office premises and business equipment under
long-term lease agreements. As a rule, the lease installments consist
of a minimum lease payment plus a contingent lease payment whose
level is governed by the level of use of the leased assets. In cases in
which the GfK Group bears the risks and opportunities arising from
the use of the leased assets to a substantial extent, these are capitalized (finance lease). Otherwise, the lease installments are carried as
an expense (operating lease).
126_GfK
< < back
Present value
minimum lease
payments
11,008
Less
interest
Minimum
lease
payments
Within one year
2,766
90
2,676
9,509
687
8,822
0
0
0
12,275
777
11,498
The main finance leases held by the GfK Group are for buildings
and part buildings, software, and fixtures and fittings.
In April 1992, GfK se entered into a sale-and-leaseback agreement
for part of the office building at Nordwestring 101, Nuremberg,
which qualifies as a finance lease. The lease was concluded for
30 years with an original obligation amount of eur 13,012 thousand. The original lease period without right of cancellation ends
in March 2012, but with the option to acquire the building for
eur 7,533 thousand.
The finance lease liability is eur 11,498 thousand (2009: eur 12,201
thousand), of which eur 2,676 thousand (2009: eur 2,399 thousand)
has a remaining term of under one year.
The carrying amount for these shares and the income from associates are not materially affected by including these financial statements with differing reporting dates. Moreover, preparing interim
financial statements would not have been possible for practical
reasons.
Other financial assets
The breakdown of other financial assets is shown in the table below.
31.12.2009
31.12.2010
Shares in affiliated companies
4,393
5,302
1,500
1,500
Loans to affiliated companies
2,190
2,365
675
1,061
Loans to associates
Other loans
252
139
Other available-for-sale securities
410
448
—
18. financial assets
Long-term deposits
Investments in associates
The shares in affiliated, non-consolidated companies and other
participations are classified as available-for-sale and reported at
amortized cost, as no market prices exist for them, other methods
of realistically estimating the fair value are not practicable and
determining the market value reliably would only be possible as
part of concrete acquisition negotiations. A sale of the shares is not
currently intended.
The GfK Group’s investments in associates are shown in the list
of shareholdings in Section 41. of these Notes.
The table below gives a summary of financial information on the
main investments in associates, which have been valued at equity
in the consolidated financial statements.
2009
2010
Assets
59,193
72,731
Liabilities
18,594
28,228
Sales
61,838
70,903
Total income for the period
12,073
9,718
The change in the figures shown in the table above resulted essentially from the acquisition of SirValUse Consulting GmbH, Hamburg,
Germany. The 40.0 % stake was acquired as at May 1, 2010 and
valued at equity from that date. Ernst und GfK Grundstücksgesellschaft, Nuremberg, Germany, was wound up in December 2010.
During the reporting period, there were no material pro rata losses
on the shareholdings in associates.
As in the previous year, the equity valuation was based on financial
statements with differing reporting dates for the following associated companies:
• Media Focus (arge), Hergiswil, Switzerland (November 30, 2010)
• Sports Tracking Europe, b.v., Amstelveen, Netherlands
(September 30, 2010)
124
200
9,544
11,015
Further information on the GfK Group’s shares in affiliated companies and other participations is provided in the list of shareholdings
in Section 41. of these Notes.
—
19. other assets and deferred items
The breakdown of non-current and current other assets and deferred
items by financial and non-financial other assets and deferred items
is shown in the table below.
Financial non-current other assets
and deferred items
31.12. 2009
31.12. 2010
3,979
3,038
Non-financial non-current other assets
and deferred items
2,655
3,788
6,634
6,826
11,088
11,550
Financial current other assets and
deferred items
Non-financial current other assets
and deferred items
20,180
21,153
31,268
32,703
In the reporting year, there were no contingent lease installments
to be recognized as expenses. There were no sub-lease arrangements
under finance leases.
• npd Intelect, l.l.c., Port Washington, New York, New York, usa
(September 30, 2010)
forward > >
GfK_127
Financial other assets and deferred items break down as follows:
—
20. trade receivables
31.12.2009
31.12.2010
Deposits
1,350
1,603
Billed trade receivables
Assets from share and asset deals
1,550
1,092
Unbilled trade receivables
Trade receivables
382
99
Miscellaneous financial non-current other
assets and deferred items
697
244
3,979
3,038
Trade receivables break down as follows:
Financial non-current other assets and deferred items
with a remaining term of more than one year
Non-derivatives:
Financial non-current other assets
and deferred items
Financial current other assets and deferred items
with a remaining term of up to one year
Non-derivatives:
Trade receivables
2,363
3,089
Deposits
1,456
1,679
341
432
1,115
314
Interest receivables
Miscellaneous financial current other
Sub-total: non-derivatives
5,250
5,420
10,525
10,934
Derivative financial instruments
used as hedges
28
40
not used as hedges
535
576
563
616
Financial current other assets
and deferred items
11,088
11,550
Total: financial other assets
and deferred items
15,067
14,588
14,504
13,972
563
616
of which non-derivatives
of which derivatives
Valuation allowances amounting to eur 343 thousand (2009: eur 402
thousand) were recorded on financial other assets and deferred
items in the reporting year. They are reported under other operating
expenses. No income resulted from reversals of valuation allowances.
In the reporting year, valuation allowances of eur 16 thousand (2009:
eur 0 thousand) were utilized.
Non-financial other assets and deferred items as at the reporting
date were as follows:
31.12.2009
31.12.2010
914
2,141
1,113
1,184
628
463
2,655
3,788
Non-financial non-current other assets and deferred
items with a remaining term of more than one year
Receivables from income taxes
Receivables from tax and other authorities
Miscellaneous non-financial non-current other
Non-financial non-current other
Trade receivables
14,538
3,320
3,479
Receivables from employees
825
877
Receivables from utilities
857
564
Miscellanous non-financial current other
Non-financial current other
< < back
322,222
– 4,740
– 6,653
270,683
315,569
Securities and fixed-term deposits of eur 1,382 thousand (2009:
eur 957 thousand) comprised no money market funds.
—
22. cash and cash equivalents
A breakdown of cash and cash equivalents is shown in the table
below.
Credit with banks
Cash equivalents and fi xed-term deposits with a
remaining term of less than 3 months
Checks in transit
Cash in hand and checks
31.12.2009
31.12.2010
39,138
47,864
3,186
6,763
– 1,249
– 1,503
1,286
1,631
42,361
54,755
There are no material restrictions on the availability of cash and
cash equivalents.
—
23. due dates of assets
The trade receivables and current other assets and deferred items
fall due for payment as shown in the tables below.
2,084
20,180
1,695
21,153
31.12.2010
Trade receivables
270,683
315,569
of which: neither impaired nor overdue
173,481
217,013
by up to 30 days
63,389
63,549
by between 31 and 90 days
24,555
26,824
6,500
6,238
1,648
1,053
by more than 360 days
1,110
651
0
241
of which: non-impaired and overdue as follows
of which: new terms negotiated, as otherwise overdue
128_GfK
60,306
275,423
31.12.2009
13,094
Receivables from tax and other authorities
261,916
51,097
Allocations to valuation allowances totaled eur 3,231 thousand
(2009: eur 3,525 thousand). In addition, currency effects of
eur 362 thousand (2009: eur – 222 thousand) increased the figure.
These impairment expenses are reported in the income statement
under selling and general administrative expenses. Reversals
of valuation allowances amounted to eur 666 thousand (2009:
eur 1,093 thousand). Valuation allowances of eur 1,014 thousand
(2009: eur 2,899 thousand) were utilized.
Non-financial current other assets and deferred
items with a remaining term of up to one year
Deferred items
31.12.2010
224,326
—
21. securities and fixed-term deposits
Derivatives:
Sub-total: derivatives
Less valuation allowances
31.12.2009
In the GfK Group, a considerable portion of the trade receivables
is due on the billing date. Trade receivables which are not due
include unbilled receivables amounting to eur 60,306 thousand
(2009: 51.097 thousand).
Authorized capital
GfK se has authorized capital, on the basis of which the Management Board is authorized, with the consent of the Supervisory
Board, to increase the share capital against cash and/or contributions in kind on one or more occasions until May 22, 2012 by up to
a total amount of eur 55,000 thousand, whereby the shareholders’
subscription rights may be excluded.
31.12.2009
31.12.2010
(excluding inventories and receivables from employees)
29,815
31,122
of which: neither impaired nor overdue
21,577
26,675
by up to 30 days
2,337
3,287
2,610
536
2,142
406
of which: non-impaired and overdue as follows
432
21
by more than 360 days
717
112
0
85
of which: new terms negotiated, as otherwise overdue
With regard to non-impaired current other assets and deferred
items, there was no indication as at the reporting date that the
debtors would be unable to fulfill their payment obligations.
—
24. equity
Subscribed capital
GfK se’s share capital increased as a result of the exercise of stock
options in 2010.
Under the stock option program, stock option holders from tranche
2005/2010 were able to acquire GfK se no-par shares in the ratio of
1:1.2 and from tranche 2006/2011 in the ratio of 1:1 by returning
their stock options in 2010. A total of 326,727 no-par shares were
acquired in 2010 through exercising 274,498 options.
Following the issue of the new shares, the subscribed capital, the
capital reserve and the number of no-par bearer shares issued
changed as follows:
Carried forward as at
January 1, 2010
Issue of new shares by converting
options from contingent capital
Subscribed
capital
eur ‘000
Capital
reserve
eur ‘000
No. of no-par
shares issued
150,297
197,278
35,947,363
860
9,590
326,727
151,157
206,868
36,274,090
The 36,274,090 no-par shares are fully paid-up. Each shareholder
is entitled to receive dividends on his shares in accordance with the
respective profit distribution resolution. Each share grants one vote
at the Annual General Meeting.
Contingent capital
The contingent capital (contingent capital I and II) is used for
granting stock options to the senior management teams of the
company and its affiliated companies within the meaning of Sections 15ff. of the German Stock Corporation Act (AktG). Contingent
capital I covered stock options under tranches 1 to 6, which were
issued in the period from 2000 to 2005. An amount of eur 3,499
thousand of contingent capital I expired following the exercising of
stock options from tranche 6 in 2010 through the issue of 313,383
no-par shares with an arithmetical nominal value of eur 802 thousand.
Contingent capital II of eur 3,400 thousand facilitates the issue of
780,000 no-par bearer shares. It was created to service the stock
options issued in 2006 under tranche 7, which can still be exercised up to 2011. In 2010, contingent capital II was utilized to issue
13,344 no-par shares with an arithmetical nominal value of eur 58
thousand. As at year-end 2010, an amount of eur 3,342 thousand
of contingent capital II remains for exercising stock options, which
corresponds to 766,656 no-par bearer shares.
By resolution of May 23, 2007, the company’s contingent capital
was increased by eur 21,250 thousand through the issue of up to
5,000,000 new no-par bearer shares (contingent capital III). The
contingent capital III is used to grant shares to holders or creditors of options and/or convertible bonds issued on the basis of the
authorization of the Annual General Meeting of May 23, 2007.
The contingent capital of the company totaled eur 24,592 thousand
as at December 31, 2010, which corresponds to 5,766,656 no-par
shares.
Stock options
As a result of the capital increase in 2004 out of company funds
and the issue of bonus shares in the ratio of 5:1, the subscription
right in respect of the issued options of tranches 1 to 5 increased
from one share to 1.2 shares per option. The exercise prices were
adjusted accordingly. For tranche 6, to which GfK executives were
invited to subscribe before the capital increase but which was
only issued after the capital increase, the number of shares to be
granted was also adjusted in the above ratio. For tranche 7, to
which GfK executives were invited to subscribe after the capital
increase in 2004, one option corresponds to the right to subscribe
one share.
6
7
Total
options
Of which:
Management Board
Exercise
price in
EUR
Exercisable
from to
Options
exercised
334,569 401,481
Term
2005/
2010
419,866
122,2211)
31.92
2007 2010
2006/
2011
483,946
119,998
33.48
2008 2011
13,344
Information about the guidelines on monitoring receivables and the
credit rating of clients as well as the criteria for setting up valuation
allowances relating to receivables, which apply throughout the
Group, is provided in Section 3. under Accounting policies.
Tranche
With regard to trade receivables with no impairment, there was
no indication as at the reporting date of circumstances that may
negatively affect their value.
Shares
issued
13,344
1) Including members who have since left the Management Board
forward > >
GfK_129
The development of the stock options issued is shown in the table
below.
2009
Balance at start of year
Options granted
Exercised
Forfeited
Expired
Repayments
Balance at year-end
Exercisable at year-end
No. of
options
1,075,194
–
–
57,802
171,756
–
845,636
845,636
Weighted
average price
in EUR/share
31.65
–
–
31.66
25.81
–
32.83
32.83
Proposed appropriation of profits
2010
No. of
options
845,636
–
274,498
10,374
90,162
–
470,602
470,602
Weighted
average price
in EUR/share
32.83
–
32.00
33.48
31.92
–
33.48
33.48
—
25. provisions
Since financial year 2009, no further personnel expenses have been
incurred in connection with the stock option program.
Tranche
6
7
Implicit volatility on issue date in %
26
22
Risk-free investment interest in %1)
2.5
3.9
Term in years
Fair value per option in EUR
Total value per program
5.6
5.6
5.04
3.14
2,289
1,730
1) Interest rate of zero coupon bonds with a maturity of three years
The calculation of volatility is based on historical volatility data for
GfK shares (weekly average prices, net of any extraordinary past
prices) for the expected term of the options.
The average weighted remaining term for the stock options was
1.0 years (2009: 1.6 years) as at December 31, 2010.
Statement of changes in equity
A proposal will be made to the Annual General Meeting to distribute a dividend of eur 17,412 thousand (eur 0.48 per no-par share)
to shareholders out of the retained profit for 2010 of eur 128,437
thousand and to transfer eur 111,025 thousand to other retained
earnings.
The average share price in the exercise window in 2010 amounted
to eur 29.08 per share.
The fair value of the stock options issued by GfK in the years 2001
to 2006 was calculated as at the date of granting on the basis of
a Black-Scholes option pricing model, which takes account of the
issue terms and conditions. The parameters considered when
calculating the fair value and the overall amounts based on it are
The statement of changes in equity precedes these Notes.
The change in the difference from currency translation in the year
under review of eur 56,087 thousand, recognized directly in equity,
resulted mainly from the revaluation of the pound sterling, the us
dollar and the Swiss franc. Of the amounts reported under other
reserves, no material gains and losses were transferred to the income
statement in financial year 2010, as was also the case in 2009.
During the reporting year, eur 10,784 thousand (2009: eur 16,536
thousand) were distributed to GfK se shareholders. This corresponds
to eur 0.30 (2009: eur 0.46 eur) per share.
Consolidated total income attributable to minority interests amounted
to eur 14,286 thousand (2009: eur 9,717 thousand). A total of
eur 6,540 thousand (2009: eur 7,399 thousand) was paid out to
minority interests.
130_GfK
In accordance with the German Stock Corporation Act (AktG), the
dividend that may be distributed is determined by the retained
profit reported in the annual financial statements of the parent
company, GfK se. These are prepared under the provisions of
the German Commercial Code (hgb). The retained earnings and
retained profit of GfK se reported under the provisions of the hgb
are available for distribution to shareholders in their entirety. The
capital reserve may not be distributed to shareholders.
< < back
The breakdown of long-term provisions is shown in the table
below:
31.12.2009
31.12.2010
Pension provisions
46,010
55,672
Other long-term provisions
19,677
26,293
65,687
81,965
Pension provisions
Pension provisioning within the GfK Group is based on both
defined contribution plans and defined benefit plans for each
company.
For defined contribution plans, which are financed exclusively
on the basis of external funds, there are no further obligations
for GfK companies other than paying contributions. Expenses for
defined contribution plans also include employer contributions to
statutory pension plans.
Pension commitments are based on statutory or contractual
arrangements or are on a voluntary basis. The basis of assessment for contributions to defined contribution plans is mainly the
length of service with the company and the wage or salary level of
the employee. However, the benefits can vary depending on the
legal, fiscal and economic framework conditions of the country
concerned. The expenses for defined contribution plans amounted
to eur 15,890 thousand in 2010 (2009: eur 14,790 thousand).
The pension obligations arising from defined benefit plans are
reported according to the projected unit credit method. Actuarial
reports are produced annually by independent actuaries for
defined benefit plans. The actuaries apply statistical and actuarial
calculations to determine the assets and provisions to be carried
on the balance sheet. Determining the present value of defined
benefit plans and pension assets is based on empirical and statistical estimated values, such as future salary increases, mortality
rates or expected long-term returns on the plan assets.
Discrepancies between the actual values and these estimated
values are expressed as actuarial gains or losses. The GfK Group
is utilizing the option under ias 19, whereby actuarial gains and
losses are not recognized in the income statement but recognized
directly in equity. In the year under review, actuarial losses of
eur 9,627 thousand (2009: eur 4,618 thousand) were reported
in this way. This change also comprises the effects of currency
translation. The cumulative amount recognized in retained
earnings in this respect totaled eur – 21,091 thousand (2009:
eur – 11,464 thousand) as at December 31, 2010. The values
indicated represent the relevant figures before deferred taxes
and excluding minority interests.
The table below shows the movement in plan assets.
Fair value of plan assets as at January 1
Change in scope of consolidation
The calculation of obligations and, in certain cases, associated
plan assets, is based on the actuarial and statistical assumptions
listed in the table below (weighted average).
Expected return on plan assets
Actuarial gains/losses
2009
2010
45,039
45,473
0
0
1,701
1,753
556
– 717
– 119
8,432
Employer contributions
3,011
3,605
Participant contributions
1,604
1,494
– 1,906
– 1,877
2009
2010
Discount rate
4.14 %
3.51 %
Rate of salary increase
2.39 %
2.52%
Benefi ts paid in Switzerland under the
freedom of capital movements
– 1,326
– 2,290
Fluctuation rate
0.41 %
0.37 %
Plan settlements
– 3,087
– 1,700
Expected growth in pensions
0.91 %
0.94 %
Fair value of plan assets as at December 31
45,473
54,173
Expected long-term return on plan assets
3.48 %
3.47 %
The plan assets for funded pension obligations essentially comprise
financial instruments amounting to eur 38,678 thousand (2009:
eur 30,167 thousand).
Mortality rates for GfK companies in Germany were taken from the
2005 g guideline tables by Dr. Klaus Heubeck.
The breakdown of pension provisions reported in the balance sheet
is shown in the table below.
31.12.2009
31.12.2010
Present value of unfunded obligations
37,296
41,220
Present value of funded obligations
54,072
68,517
Present value of overall obligations
91,368
109,737
– 45,473
– 54,173
– 179
– 189
Refund claims
Impact of ceiling in accordance with IAS 19.58 (b)
23
0
Net present value of obligations
45,739
55,375
Pension provisions
46,010
55,672
Other assets
Net amount reported on balance sheet
– 271
– 297
45,739
55,375
The general expected return on the plan assets was determined
based mainly on experience from the past ten years. The expected
return on plan assets in the financial statements for 2010 was on
average 3.47 % (2009: 3.48 %). The actual results from the plan
assets amounted to eur 1,037 thousand in 2010 (2009: eur 2,264
thousand).
According to GfK estimates, contributions of around eur 2,502
thousand will be payable into funded pension plans over the coming
year (2009: eur 2,329 thousand).
The amounts reported in the income statement break down as
Service cost
Interest cost
The movement in the present value of the defined benefit obligation (dbo) during the period under review is shown in the table
below.
2009
Present value of defined benefi t obligation
as at January 1
Change in scope of consolidation
86,450
Expected return on plan assets
2010
0
Current service cost
2,961
3,298
Interest cost
3,656
3,789
Participant contributions
1,609
1,499
Actuarial gains/losses
5,211
6,624
Benefi ts paid
Benefi ts paid in Switzerland under the
freedom of capital movements
Past service cost
Plan reductions
2010
3,298
3,656
3,789
– 1,701
– 1,753
Expected return from refund claims
–7
–9
Past service cost
40
474
Profi t/loss from curtailment or
discontinuation of pension plans
– 664
0
Pension expenses
4,285
5,799
91,368
295
2009
2,961
– 231
10,488
– 3,546
– 3,813
– 1,326
– 2,290
40
474
– 664
0
Plan settlements
– 3,087
– 1,700
Present value of defined benefit
obligation as at December 31
91,368
109,737
The exchange rate changes reflected in the above table to a major
extent resulted from the revaluation of the Swiss franc. The same
applies to the exchange rate changes in plan assets shown in the
table below.
The pension expenses are included mainly in cost of sales, selling
and general administrative expenses and in interest expenses.
Fair value of plan assets
Benefi ts paid
The funding status is shown in the table below.
Pension liabilities
Pension assets
Impact of ceiling in accordance with ias 19.58 (b)
2006
2007
2008
2009
2010
81,998
75,336
86,450
91,368
109,737
– 41,627
– 40,754
– 45,201
– 45,652
– 54,362
0
58
80
23
0
Funding status
40,371
34,640
41,329
45,739
55,375
Empirical adjustment
in liabilities
5.35 % – 8.12 % – 2.77 % – 0.10 %
0.77 %
Empirical adjustment in
assets
5.68 % – 2.10 % 15.60 % – 1.18 %
1.44 %
forward > >
GfK_131
Long-term other provisions
—
The movement in long-term other provisions in the period under
review is shown in the table below.
26. interest-bearing financial liabilities
The breakdown of financial liabilities is shown in the tables below.
Personnel
10,868
Potential
contractual
losses
7,226
Other
1,583
Total
19,677
116
535
167
818
0
0
0
0
Currency effects
Change in scope of
consolidation
Remaining term
31.12.2009
Write-ups to discounted
provisions
Additions
Reclassifications to
short-term provisions
0
544
0
544
11,387
1,667
672
13,726
– 4,541
– 2,868
939
– 6,470
Utilization
– 551
0
– 150
– 701
Release
– 771
0
– 530
– 1,301
16,508
7,104
2,681
26,293
Personnel provisions mainly comprise commitments relating to
employees leaving and from provisions for anniversary expenses
based on contractual agreements. In addition, they include provisions for long-term incentive programs of eur 11,822 thousand
(2009: eur 5,554 thousand).
The provision for potential contractual losses relates to two longterm lease agreements at non-standard terms as well as other rental
agreements. The agreements accounting for the highest amounts
are at companies of the former nop World. The agreements at GfK
Mediamark Research & Intelligence, llc, New York, New York, usa,
and GfK Custom Research, llc, New York, New York, usa, have been
in place since 2005 and 2002 respectively. The remaining terms are
six and nine years respectively. The agreed rent has been compared
with the current and estimated future market rates and the amount in
excess has been recognized in the provisions. As these are interestfree commitments, the present value has been used. The discount on
the contracts involving the highest amounts was calculated at interest
rates of 6.79 % and 4.45 % respectively. The nominal amount of the
commitment of GfK Mediamark Research & Intelligence, llc, New York,
New York, usa, was eur 4,141 thousand (usd 5,556 thousand) as at
the reporting date (2009: eur 4,285 thousand or usd 6,148 thousand).
The nominal amount of the commitment of GfK Custom Research,
llc, New York, New York, usa, was eur 3,133 thousand (usd 4,203
thousand; 2009: eur 3,826 thousand or usd 5,489 thousand). A share
of these commitments is reported under short-term provisions. In
the year under review, write-ups to these discounted provisions of
eur 544 thousand (2009: eur 358 thousand) were applied.
Amounts due to banks
Liabilities under
finance leases
Other financial
liabilities
Interest-bearing
financial liabilities
Of which
More between Of which
one and more than
than one
year five years five years
Total
Less than
one year
400,426
97,280
303,146
303,146
0
12,200
2,399
9,801
9,801
0
84,492
36,546
47,946
44,968
2,978
497,118
136,225
360,893
357,915
2,978
Remaining term
31.12.2010
Liabilities under
finance leases
Other financial
liabilities
Interest-bearing
Of which
More between Of which
one and more than
than one
year five years five years
Total
Less than
one year
348,236
77,786
270,450
270,450
0
11,498
2,676
8,822
8,822
0
69,187
22,135
47,052
45,452
1,600
428,921
102,597
326,324
324,724
1,600
Other financial liabilities included loan liabilities totaling eur 8,509
thousand (2009: eur 5,404 thousand) as at December 31, 2010, of
which eur 8,326 thousand (2009: eur 4,904 thousand) concerned
related parties.
In addition, other financial liabilities comprised purchase price
liabilities which depend on future events (put options and bonds)
for the acquisition of participations amounting to eur 60,231 thousand (2009: eur 78,277 thousand).
As at December 31, 2010, the weighted average interest rate for
the amounts due to banks was 2.51 % after interest rate hedging
(2009: 2.85 %).
The financial liabilities become due in the next five years and thereafter, as shown in the table below.
31.12.2009
136,225
102,597
One to two years
58,289
214,303
The movement in short-term provisions in the year under review is
Two to three years
234,251
90,461
Three to four years
62,888
268
2,487
19,692
Four to fi ve years
Personnel
As at January
1, 2010
Currency
effects
Change in
scope of
consolidation
Additions
Reclassifi cations from
long-term
provisions
Utilization
Release
132_GfK
31.12.2010
Within one year1)
< < back
Potential
Authorities
contrac- and insurance
companies
tual losses
More than fi ve years
Sales Sundry
Total
Interest-bearing financial liabilities
2,978
1,600
497,118
428,921
1) Includes current account liabilities payable on demand in the context of credit lines
5,498
2,741
850
1,729
71
10,889
146
194
9
157
10
516
8
3,793
0
0
0
2,805
0
946
0
64
8
7,608
4,541
– 3,911
– 242
2,868
– 3,216
0
0 – 1,040
– 745
– 483
– 13
– 300
101
– 50
0
6,470
– 8,405
– 555
9,833
2,587
2,906
196
16,531
1,009
The weighted average interest rate for loans and credit lines is
1.98 % (2009: 2.78 %) before interest rate hedging.
As in the prior year, no collateral is in place for amounts due to
banks and liabilities under leases of eur 359,734 thousand (2009:
eur 412,626 thousand).
—
27. other liabilities and deferred items
The non-current and current items relating to other liabilities and
deferred items are divided into financial and non-financial other
liabilities and deferred items as follows:
31.12.2009
31.12.2010
Financial non-current other liabilities and
deferred items
1,856
2,888
Non-financial non-current other liabilities and
deferred items
1,533
1,568
3,389
4,456
36,096
36,389
81,141
103,295
117,237
139,684
Financial current other liabilities and deferred items
Non-financial current other liabilities and
deferred items
Financial current other liabilities from operating business mainly
comprise amounts owed to households and respondents (eur 8,777
thousand; 2009: eur 6,937 thousand), interviewers (eur 6,695 thousand; 2009: eur 5,659 thousand) as well as customers (eur 2,926
thousand; 2009: eur 2,124 thousand).
Financial current other liabilities from non-operating business
primarily include liabilities for external year-end closing costs
(eur 2,093 thousand; 2009: eur 2,759 thousand) and legal and
consultancy costs (eur 1,020 thousand; 2009: eur 1,271 thousand).
The breakdown of the partial amount “non-financial other liabilities
and deferred items” is as follows:
31.12.2009
31.12.2010
1,096
1,426
437
142
1,533
1,568
Liabilities due to employees
55,503
72,457
Liabilities arising from other taxes
24,776
29,340
862
1,498
81,141
103,295
Non-financial non-current other liabilities and deferred
items with a remaining term of more than one year
Liabilities due to employees
The breakdown of the partial amount “financial other liabilities and
deferred items” is as follows:
Miscellaneous non-financial non-current
other liabilities and deferred items
Non-financial non-current other liabilities
and deferred items
31.12.2009
31.12.2010
Financial non-current other liabilities and deferred
items with a remaining term of over one year
Non-derivatives:
Financial other liabilities from
operating business
524
1,546
Liabilities relating to rent
341
688
4
23
987
631
1,856
2,888
operating business
20,708
24,121
non-operating business
6,123
4,420
Liabilities relating to rent
2,746
3,190
Liabilities to related parties
1,636
1,745
Interest due
1,165
1,248
Miscellanous financial non-current other
liabilities and deferred items
Financial non-current other liabilities
and deferred items
Financial current other liabilities and deferred
items with a remaining term of less than one year
Non-financial current other liabilites and deferred
items with a remaining term of less than one year
Miscellaneous non-financial current other
Non-financial current other liabilities
and deferred items
Non-financial current liabilities due to employees mainly comprise
liabilities for the payment of bonuses (eur 35,295 thousand; 2009:
eur 23,622 thousand) and holiday claims (eur 11,883 thousand;
2009: eur 10,788 thousand) as well as liabilities arising from social
security (eur 10,377 thousand; 2009: eur 9,823 thousand).
Non-derivatives:
Sub-total: non-derivatives
2,450
606
34,828
35,330
1,124
251
Derivatives:
used as hedges
not used as hedges
Sub-total: derivatives
Financial current other liabilities and deferred items
Total: Financial other liabilities and deferred items
of which non-derivatives
of which derivatives
144
808
1,268
36,096
1,059
36,389
37,952
39,277
36,684
38,218
1,268
1,059
The tables on pages 134 to 137 list the carrying values, values
and fair values of all financial instruments held by the GfK Group,
in accordance with the valuation categories of ias 39.
In the following, the financial assets and liabilities reported at
fair value as at the reporting date are defined according to the
importance of the input parameters required for valuation. For
this purpose, their carrying values are divided into three levels:
values observable in active markets (level 1), observable input
parameters which contribute to establishing the fair value on the
basis of a valuation model (level 2) and input parameters not
based on observable market data (level 3).
forward > >
Miscellaneous financial current other
—
28. financial instruments
GfK_133
ias 39 valuation category
Carrying value as at
31.12.2009
Assets
Investments in affiliated companies
Financial assets available for sale
4,393
1,500
Loans and receivables
2,190
Loans to associates
675
Other loans
252
410
Long-term fixed-term deposits
124
Trade receivables
270,683
Short-term securities and fixed-term deposits
Assets valued at fair value with impact on the income statement
957
Financial other assets and deferred items
Deposits
2,806
Receivables from suppliers
2,745
1,891
1,115
Derivative financial instruments (with hedging)
–
Derivative financial instruments (without hedging)
Miscellaneous financial other assets and deferred items
–
28
535
5,947
42,361
Liabilities
Financial liabilities valued at amortized cost
Liabilities from finance lease
–
12,200
Other financial liabilities
84,492
60,231
Financial other liabilities from operational business
21,232
Financial other liabilities from non-operational business
6,123
Liabilities from leasing
3,087
Trade payables
400,426
Financial other liabilities and deferred items
1,640
Interest liabilities
1,165
–
1,124
Liabilities valued at fair value and charged to the income statement
Miscellaneous financial other liabilities and deferred items
144
3,437
Aggregated under ias 39 valuation categories
134_GfK
< < back
288,428
6,303
1,492
581,833
144
ias 17 balance sheet
tax basis
Recognition and measurement in the balance sheet according to ias 39
Acquisition costs
Fair value recognized Fair value with impact on
directly in equity
the income statement
4,393
4,393
1,500
1,500
2,190
2,190
675
675
252
252
410
410
124
124
270,683
270,683
957
957
2,806
2,806
2,745
2,745
1,891
1,891
1,115
1,115
28
28
535
535
5,947
5,947
42,361
42,361
400,426
394,331
12,200
12,200
84,492
86,576
60,231
60,231
21,232
21,232
6,123
6,123
3,087
3,087
1,640
1,640
1,165
1,165
1,124
1,124
144
3,437
Amortized costs
Fair value as at
31.12.2009
144
3,437
288,428
6,303
1,492
577,822
144
forward > >
GfK_135
ias 39 valuation category
Carrying value as at
31.12.2010
Assets
Investments in affiliated companies
5,302
1,500
2,365
Loans to associates
1,061
Other loans
139
448
Long-term fixed-term deposits
200
Trade receivables
315,569
Short-term securities and fixed-term deposits
1,382
Deposits
3,282
Receivables from suppliers
3,188
1,524
314
–
Financial other assets and deferred items
Miscellaneous financial other assets and deferred items
–
40
576
5,664
54,755
Liabilities
Liabilities from finance lease
–
11,498
63,877
Trade payables
348,236
5,310
66,103
Financial other liabilities from operational business
25,667
Financial other liabilities from non-operational business
4,420
Financial other liabilities and deferred items
Liabilities from leasing
3,878
1,768
Interest liabilities
1,248
–
Miscellaneous financial other liabilities and deferred items
251
808
1,237
Aggregated under ias 39 valuation categories
7,250
1,958
136_GfK
333,306
< < back
516,434
6,118
ias 17 balance sheet
tax basis
Recognition and measurement in the balance sheet according to ias 39
Acquisition costs
Fair value recognized Fair value with impact on
directly in equity
the income statement
5,302
5,302
1,500
1,500
2,365
2,365
1,061
1,061
139
139
448
448
200
200
315,569
315,569
1,382
1,382
3,282
3,282
3,188
3,188
1,524
1,524
314
314
40
40
576
576
5,664
5,664
54,755
54,755
348,236
347,567
11,498
63,877
11,498
65,165
5,310
5,310
66,103
66,103
25,667
25,667
4,420
4,420
3,878
3,878
1,768
1,768
1,248
1,248
251
251
808
1,237
Amortized costs
Fair value as at
31.12.2010
808
1,237
333,306
7,250
1,958
517,053
6,118
forward > >
GfK_137
31.12.2009
Level 1
Level 2
Level 3
not used as hedges
535
0
535
0
used as hedges
28
0
28
0
957
957
0
0
not used as hedges
– 144
0
– 144
0
used as hedges
– 1,124
0
– 1,124
0
252
957
– 705
0
31.12.2010
Level 1
Level 2
Level 3
not used as hedges
576
0
576
0
used as hedges
40
0
40
0
1,382
1,382
0
0
not used as hedges
– 808
0
– 808
0
used as hedges
– 251
0
– 251
0
Financial assets valued
at fair value
Short-term securities and
fixed-term deposits
Financial liabilities valued
at fair value
Total
The sensitivity analysis approximately quantifies the risk that can
arise under certain assumed conditions if specific parameters
change. The new earn-outs included in 2010 were affected by
a simultaneous parallel appreciation of the interest rate by one
percentage point and the reduction in ebit by ten percentage points
while all other factors remained constant. This reduced existing
liabilities and increased the net financial income by eur 1,098 thousand each. The decrease in the interest rate by one percentage point
with a simultaneous rise in ebit by ten percentage points income in
an increase in liabilities and a reduction in the net financial income
of eur 112 thousand each.
—
29. risk management relating to market,
credit and liquidity risks
As a result of using financial instruments, the GfK Group is exposed
to market risks, liquidity risks and default risks.
Financial assets valued
at fair value
Short-term securities and
fixed-term deposits
Market risk
Market risks arise from potential changes in risk factors that result
in a decrease in the market value of the transactions affected by
these risk factors. For the GfK Group, exchange rate risks and
interest rate risks are particularly relevant.
Financial liabilities valued
at fair value
Purchase price components
which depend on future events
– 5,310
0
0
– 5,310
Total
– 4,371
1,382
– 443
– 5,310
Exchange rate risks
Exchange rate risks can arise in the GfK Group from transactions
conducted in a currency other than the respective functional currency.
The main currencies are shown in thousand euros in the tables below.
EUR
USD
GBP
CHF
SGD
JPY
No material valuation results were recognized directly in equity in
financial year 2010 as part of recognizing changes in the value of
financial instruments in the available-for-sale category.
31.12.2009
Loans
1,377
260,991
59,521
0
988
0
Trade receivables
7,890
2,833
160
54
595
0
Cash and cash
equivalents
2,531
383
17
199
0
0
Interest income from financial assets and liabilities recognized
directly in equity at fair value, which is calculated using the effective interest rate method, amounted to eur 2,414 thousand (2009:
eur 3,244 thousand). At the same time, the corresponding interest
expenses amounted to eur 19,058 thousand (2009: eur 19,639
thousand).
Interest-bearing
The purchase price components which depend on future events
reflect earn-out agreements concluded after December 31, 2009.
They are valued as at the reporting date on the basis of market
interest rates that are appropriate for the relevant term. In the year
under review, no changes in value occurred with impact on the
income statement, since the underlying transactions took place at
the end of the financial year. No change in value was offset against
equity without impact on the income statement.
138_GfK
< < back
Trade payables
Liabilities
from orders
in progress
Net exposure
– 514
– 185,641
– 8,358
0
– 2,485
– 9,358
– 3,264
– 4,252
– 989
– 3,550
– 186
– 223
– 238
– 3,103
– 19
0
– 109
0
0
– 3,664
7,698
3,790
1,327
7,112
7,782
67,547
58,030
493
130
– 2,469
EUR
USD
GBP
CHF
SGD
JPY
527
196,057
81,555
0
0
1,471
13,951
8,247
202
127
441
10
Cash and cash
equivalents
2,301
1,732
473
923
0
0
Interest-bearing
– 317
– 118,849
0
– 15,994
– 8,072
– 6,885
– 1,076
– 54
– 292
– 263
– 416
– 4,434
–4
0
– 111
0
– 2,065
– 8,126
5,360
9,706
– 4,302
12,545
5,909
67,742
86,510
– 5,292
– 8,909
– 253
Loans
Trade receivables
Trade payables
Liabilities
from orders
in progress
Net exposure
– 4,645 – 14,016
The exchange rates of the most important currencies to the euro are
shown in Section 3. Accounting policies.
The sensitivity analysis approximately quantifies the risk that can
arise under certain assumed conditions if specific parameters
change. The table below shows how equity and net income are
affected by a simultaneous parallel appreciation of all foreign currencies of 10 % against the euro while all other factors remain constant.
Interest rate risks
Interest rate risks can impact on variable-rate financial instruments
and on fixed-income financial instruments not valued at amortized
cost.
Changes in the market value of fixed-income financial assets and
liabilities are not recognized in the income statement; moreover,
there are no interest rate derivatives which are allocated to fixedincome instruments as fair value hedges in accordance with ias 39
and reported in fair value hedge accounting. A change in interest
rates on the reporting date, therefore, has no impact on the income
statement or the equity as these items are measured at amortized
cost.
The tables below provide an overview of variable-rate financial
instruments:
Remaining term
31.12.2009
Loans
Derivatives
31.12.2009
Equity
Income
statement
31.12.2010
Overall
impact
Equity
Income
statement
Net exposure
Less than
one year
1,103
One to
five years
2,014
More than
five years
0
– 340,791
– 50,543
– 290,248
0
5,154
– 4,041
– 1,113
0
159,952
139,952
20,000
0
– 182,876
86,471
– 269,347
0
Total
amount
2,486
Less than
one year
2,486
One to
five years
0
– 264,865
– 50,981
– 213,884
0
– 4,454
– 3,193
– 1,261
0
Overall
impact
EUR
0
– 745
– 745
0
– 749
– 749
USD
12,261
– 5,139
7,122
14,618
– 7,031
7,587
GBP
5,778
– 744
5,034
7,975
140
8,115
– 1,500
CHF
0
– 330
– 330
0
– 1,500
SGD
0
– 120
– 120
0
– 461
– 461
JPY
0
– 958
– 958
0
– 1,280
– 1,280
18,039
– 8,036
10,003
22,593
– 10,881
11,712
Total
Total
amount
3,117
Remaining term
31.12.2010
Loans
Derivatives
Net exposure
The impact of exchange rate fluctuations is concentrated on the
us dollar and pound sterling in particular.
More than
five years
0
23,563
1,118
22,445
0
– 243,270
– 50,570
– 192,700
0
The effects before tax on the equity and income statement of a
change in interest rates for variable-rate financial instruments
of 100 basis points on the reporting date are shown in the table
below. The minimum interest rate applied to take account of
changes in interest rates was 0 %. This analysis assumes that all
other variables, especially exchange rates, remain constant.
31.12.2010
forward > >
GfK_139
Risk management
The total interest rate and interest rate and currency swaps mature
in the next five years as shown in the table below.
31.12.2009
Equity
Interest rate change
in percentage points
Variable-rate instruments
Income statement
+1
–1
+1
–1
0
0
– 2,238
2,238
Interest rate swaps
480
– 119
1,514
– 1,517
Cash flow sensitivity
480
– 119
– 724
721
Equity
Variable-rate instruments
Income statement
+1
–1
+1
–1
0
0
– 2,449
1,845
Interest rate swaps
250
– 250
253
– 255
250
– 250
– 2,196
1,590
The column headed “equity” only shows the impact of changes that
are recognized directly in equity. Changes which would impact on
the income statement are not shown in the column headed “equity”.
The GfK Group uses derivative financial instruments to hedge
against exchange rate and interest rate risks. If the prerequisites
for hedge accounting are met, derivative financial instruments are
reported as part of cash flow hedges.
Assets
Carrying
value
31.12.2010
Nominal Carrying
volume
value
Nominal
volume
Interest rate swaps
as cash flow hedges
0
0
0
0
125
2,091
1
1,118
0
0
0
0
not used as hedges
410
24,299
575
23,196
28
3,255
40
1,742
Interest rate and currency swaps
not used as hedges
Interest rate caps
Currency forward transactions
Liabilities
Interest rate swaps
1,120
159,952
220
20,000
44
2,977
477
2,445
0
3,903
0
0
100
12,295
331
33,091
4
382
31
452
Interest rate and currency swaps
not used as hedges
Interest rate caps
Currency forward transactions
not used as hedges
31.12.2010
145,0201)
1,118
0
22,445
Between two and three years
20,000
0
Between three and four years
0
0
Between four and five years
0
0
165,020
23,563
The nominal volume of derivative financial instruments comprises
the total of the nominal amounts of individual put and call option
contracts. The fair value is calculated on the basis of the valuation
of all contracts at the prices recorded on the valuation date.
The derivative financial instruments are valued on a markingto-market basis, in accordance with the market conditions as at
the reporting date. In addition, the Group’s own calculations are
checked for plausibility on the basis of the market assessments
provided by the banks.
As at December 31, 2010, the GfK Group essentially had currency
hedging contracts relating to the Australian dollar, us dollar, Singapore dollar, Japanese yen, pound sterling and Swiss franc.
GfK se charges its subsidiaries a management fee for central Group
services. To protect selected subsidiaries from possible exchange
rate risks, GfK se invoices these Group services in local currency.
The resultant exchange rate risk at GfK se arising from increases
in the euro exchange rate against the foreign currencies of these
invoices is eliminated through currency forward transactions with
various banks relating to the relevant payment dates.
Derivative financial instruments
31.12.2009
31.12.2009
1) The allocation of the prior year’s figures was adjusted where this was not appropriate.
Cash flow sensitivity
Between one and two years
Nominal volume of interest rate swaps
31.12.2010
Interest rate change
in percentage points
Maturity
Less than one year
The GfK Group used net investment hedges to hedge net investments in foreign subsidiaries. In the year under review, effective
changes in the value of a loan in us dollars, which was concluded
as part of the acquisition of the former nop World, as well as
existing us dollar loans for the financing of GfK arbor, llc, Media,
Pennsylvania, usa (merged with GfK Custom Research, llc, New
York, New York, usa), and GfK v2, llc, Blue Bell, Pennsylvania,
usa (merged with GfK Healthcare, lp, East Hanover, New Jersey,
usa), of eur 2,531 thousand before tax (2009: eur 3,919 thousand)
and eur 1,734 thousand after tax (2009: eur 2,686 thousand),
were recognized directly in equity without impact on the income
statement.
In the case of derivatives used as part of cash flow hedges, changes
in values are reported under other reserves. In the year under
review, the change in other reserves amounted to eur 622 thousand
before tax (2009: eur – 594 thousand) and eur 426 thousand after
tax (2009: eur – 407 thousand).
Liabilities from cash flow hedges have a carrying value of eur 19,975
thousand (2009: eur 159,887 thousand). The expected outflow of
funds from the underlying transactions which are hedged by these
cash flow hedges amounted to eur 1,019 thousand (2009: eur 4,467
thousand). Of this, eur 777 thousand (2009: eur 3,514 thousand)
will occur and impact on income in less than one year and eur 242
thousand (2009: eur 953 thousand) in a period of between one and
five years.
In the reporting year, no material ineffective portions were recorded
in relation to cash flow hedges and net investment hedges.
The gains and losses from derivative financial instruments are
posted in other financial income or expenses respectively. The
income from financial instruments contained in this figure, which
was not reported as part of hedge accounting, amounted to a total
of eur 10,740 thousand (2009: eur 4,323 thousand), while expenses
amounted to eur 8,714 thousand (2009: eur 4,239 thousand).
140_GfK
< < back
Credit risks
The default risk linked to the positive fair values of the derivatives
is estimated to be low, as transactions are only concluded with
renowned German and foreign banks. Furthermore, the default risk
is reduced by spreading the transactions across several banks.
The maximum default risk of the GfK Group amounts essentially
to the carrying value of all financial assets. The global activities of
the GfK Group and the large number of customers, which include
many established major companies, reduce the concentration of
the default risk.
Liquidity risks
As at December 31, 2010, the GfK Group had confirmed loans and
credit lines of eur 552,187 thousand (2009: eur 566,116 thousand),
of which eur 203,951 thousand (2009: eur 165,690 thousand) have
not been used.
The GfK Group has undertaken to meet certain covenants as part
of a syndicated credit facility and the issue of a loan note. The ratio
of net debt to modified ebitda, which is established on the basis
of specific criteria, must be lower than 3.25. The ratio of modified
ebitda to interest expenses must be higher than 4.0. In the event of
these covenants being breached, the credit margin of the banks providing the finance increases and a new agreement on the covenants
to be met in future must be concluded with the creditors. The GfK
Group comfortably met both covenants as at December 31, 2010.
The GfK Group only concludes financing transactions with renowned
German and foreign banks. The default risk and risk concentration is
further reduced by spreading the transactions across several banks.
At the beginning of 2010, the GfK Group secured fresh liquidity
through five bilateral bank loans amounting to eur 70.0 million,
with terms ranging from one to five years. The funding elements
indicated and an existing cash holding of eur 54.8 million as at the
reporting date assure the sound financial basis of the Group. Based
on the 2010 budgeting process, detailed twelve-month liquidity
and finance planning is prepared and compared with the available
credit lines. This enables the GfK Group to respond at an early
stage to any potential liquidity bottlenecks identified.
The tables below show the contractually agreed, undiscounted
interest and principal repayments on primary financial liabilities
and derivative financial instruments of the GfK Group at negative
fair value for 2009 and 2010.
Remaining term up to
31.12.2009
Carrying value
Gross
outflows
2010
2011
2012
2013
> 2013
Non-derivative financial liabilities
400,426
418,756
105,086
57,414
225,666
30,590
0
Liabilities under finance leases
12,200
13,512
2,504
2,478
8,229
293
8
84,492
93,803
37,628
4,875
5,205
37,993
8,102
Trade payables
60,231
60,231
60,231
0
0
0
0
Miscellaneous financial liabilities
36,684
36,684
34,828
1,856
0
0
0
1,268
1,290
1,333
14
– 57
0
0
Derivative financial liabilities
of which valued at fair value and
charged to the income statement
Total
144
146
151
2
–7
0
0
595,301
624,276
241,610
66,637
239,043
68,876
8,110
31.12.2010
Carrying value
Gross
outflows
2011
2012
2013
2014
> 2014
15,186
Remaining term up to
348,236
367,290
88,024
201,668
61,766
646
Liabilities under finance leases
11,498
12,276
2,766
8,741
349
297
123
69,187
73,759
22,175
8,990
34,696
0
7,898
0
5,310
5,589
1,863
1,863
1,863
0
Trade payables
66,103
66,103
66,103
0
0
0
0
Miscellaneous financial liabilities
38,217
38,217
35,329
2,888
0
0
0
1,059
1,069
368
701
0
0
0
Derivative financial liabilities
Total
808
816
281
535
0
0
0
534,300
558,714
214,765
222,988
96,811
943
23,207
forward > >
Non-derivative financial liabilities
GfK_141
Notes to the consolidated cash flow statement
This presentation does not indicate budgeted figures. It reflects the
financial instruments held as at the reporting date and for which
contractual agreements regarding payments are in place. Foreign
currency amounts were translated with the exchange rate as at the
reporting date.
No material financial assets were provided as collateral.
—
30. notes to the consolidated cash flow statement
The cash flow statement is presented at the front of the Notes. It
shows changes in the GfK Group balance sheet item cash and cash
equivalents during the year under review. In accordance with ias 7,
a distinction is made between cash flows from operating activity
and from investing and financing activity. The funding sources covered in the cash flow statement comprise cash and cash equivalents.
They encompass cash in hand, checks, cash equivalents and fixedterm deposits where they are available within three months.
The cash flow from operating activity amounted to eur 172,011
thousand (2009: eur 134,650 thousand). It covered investments
in full, which totaled eur 89,605 thousand (2009: eur 106,641
thousand). Of this, eur 48,608 thousand (2009: eur 48,978 thousand) related to capital expenditure. The disbursements for the
acquisition of consolidated companies and other business units
amounted to eur 35,070 thousand (2009: eur 54,770 thousand).
In addition, cash flow from operating activity was partly used
for loan repayments (eur 135,783 thousand; 2009: eur 142,391
thousand). At the same time, new loans totaled eur 78,422 thousand (2009: eur 154,047 thousand). In net terms, the cash flow
from financing activity resulted in a negative figure (eur – 76,947
thousand; 2009: eur – 26,229 thousand). In the year under
review, interest paid amounted to eur 16,231 thousand (2009:
eur 17,876 thousand). The cash inflow from interest totaled
eur 3,182 thousand (2009: eur 3,447 thousand). The interest
received as well as the interest paid was allocated to cash flow
from financing activity in the year under review, since it essentially comprises payments in connection with derivative interest
rate hedging contracts.
Dividends totaling eur 16,987 thousand (2009: eur 23,456 thousand)
were paid to shareholders of GfK se and minority shareholders in
subsidiaries. The cash and cash equivalents reported in the balance
sheet rose by eur 12,394 thousand (2009: eur 5,691 thousand).
Income tax payments resulted overall in a cash outflow of eur 41,316
thousand in financial year 2010 (2009: eur 36,290 thousand).
No funds were acquired in the reporting year through the purchase
of subsidiaries (2009: eur 2,151 thousand).
—
31. related parties
Related parties are persons or groups which could be influenced by
the GfK Group or could have an influence on the GfK Group. In the
year under review, the following major transactions were carried
out involving related parties:
Liabilities relating to as yet unpaid profit shares of eur 1,334 thousand
(2009: eur 1,295 thousand) arose vis-à-vis The npd Group Inc., Port
Washington, New York, usa.
Loan obligations amounting to eur 4,315 thousand (2009: eur 2,560
thousand) were due to GfK-Nürnberg, Gesellschaft für Konsum-,
Markt- und Absatzforschung e.V. (GfK Association), Nuremberg, the
142_GfK
< < back
majority shareholder of GfK se. The corresponding interest expenses
stood at eur 56 thousand (2009: eur 23 thousand). In addition, sales
of eur 1,244 thousand (2009: eur 1,530 thousand) were realized
with this shareholder. Furthermore, loan obligations of eur 1,971
thousand (2009: eur 0 thousand) arose vis-à-vis the joint partners
in SirValUse Consulting GmbH, Hamburg, with the corresponding
interest expenses of eur 57 thousand (2009: eur 0 thousand).
In connection with the acquisition of shares by GfK se in SirValUse
Consulting GmbH, Hamburg, purchase price payments totaling
eur 1,915 thousand (2009: eur 0 thousand) were made to the
minority shareholder dih Finanz und Consult GmbH, Frankfurt am
Main, a wholly owned subsidiary of Deutsche Industrie-Holding
GmbH, Frankfurt am Main. Peter Zühlsdorff is a partner and
advisory board member in the latter. Mr Zühlsdorff is President
of the majority shareholder of GfK se, GfK-Nürnberg, Gesellschaft
für Konsum-, Markt- und Absatzforschung e.V. (GfK Association),
Nuremberg.
Provisions in connection with the long-term incentive programs
(eur 17,342 thousand; 2009: eur 7,413 thousand) represent a
commitment to selected managers of the GfK Group. Of this,
eur 11,822 thousand (2009: eur 5,554 thousand) have a remaining
term of more than one year.
Unless stated otherwise, amounts owed to and by related parties
mainly have a remaining term of less than one year.
Material receivables, liabilities, income and expenses with nonconsolidated affiliated companies, associated companies and other
participations of the GfK Group are specified in the Notes above
under the respective items.
—
32. contingent liabilities and
other financial commitments
The contingent liabilities and other financial commitments that
are not carried as liabilities in the consolidated balance sheet
are reported at nominal values and break down as shown in the
following table.
31.12.2009
31.12.2010
Commitments arising from
maintenance, service and license agreements
4,477
2,536
guarantees and sureties
1,229
1,827
order commitments
2,638
1,978
Of these commitments, eur 4,645 thousand (2009: eur 5,834 thousand) have a remaining term of less than one year.
In addition, there are the following contingent liabilities and financial
commitments:
bwv Holding ag, St. Gallen, Switzerland, sold holdings in two
Swiss and one Austrian joint stock company with agreement dated
July 28, 2004. GfK se has assumed a purchase price payment obligation of up to eur 5,998 thousand (chf 7,500 thousand) to cover
claims by the purchaser arising from contractual infringements.
This guarantee ends as at December 31, 2014.
Following the acquisition of the nop World Group in 2005, the GfK
Group was restructured in part and sub-groups and intermediate
holding companies were set up. GfK se has issued a conditional
declaration to three of the managing directors of the holding
companies, which releases them from any future claims that may
be made by third parties in connection with their positions as
managing directors of these companies.
cycle. Consumers represent the main data source for the Custom
Research sector.
In the Retail and Technology sector, data is collected from the retail
industry. Clients are provided with information and consultancy
services, which are based on regular surveys and analysis of sales of
consumer goods and services in retail. Services comprise regularly
published surveys.
A purchase price commitment of eur 10,167 thousand relates to
the future acquisition of additional shares in SirValUse Consulting
GmbH, Hamburg, of which eur 3,154 thousand have a remaining
term of less than one year.
The Media sector provides information services on reach, intensity and how media and media offerings are used as well as on
their acceptance. The services are aimed at clients from media
companies, agencies and the branded goods industry. The sector
makes available regular, as well as special, one-off surveys and
analyses. The source of information for the Media sector encompasses all types of media.
It is possible that subsequent tax payments may be necessary
following future tax audits at GfK Group companies. This also
applies in terms of possible liabilities due to social security agencies. An amount of approximately eur 10 million is estimated
for such risks relating to the GfK companies in Latin America.
The occurrence and amount of such future liabilities cannot be
estimated with certainty.
The sectors are complemented by Other, which comprises, in particular, the head office services of GfK for its subsidiaries and non market
research-related services. The division primarily combines some
departments of GfK Switzerland ag, Hergiswil, Switzerland, and the
following GfK se divisions: GfK Data Services, GfK Methoden- und
Produktentwicklung (method and product development) and certain
departments within GfK Group Services.
—
33. segment reporting
In accordance with ifrs 8, external segment reporting is based on
the Group’s internal organizational and management structure as
well as internal financial reporting to the chief operating decision
makers. At the GfK Group, the Management Board is responsible
for the valuation and management of business performance in the
operating sectors and is considered to be the top management body
in accordance with ifrs 8. The comparative sector information for
the previous year has been reported in line with the requirements
specified in ifrs 8.
GfK’s organizational structure is divided into three business sectors,
Custom Research, Retail and Technology and Media, supplemented
by Other. The segmentation of the GfK Group into sectors is based
on the origin of market research data.
In the Custom Research sector, the GfK Group provides information
and consultancy services that support operating and strategic marketing decisions. Custom Research offers a wide range of tests and
surveys, in particular relating to product and pricing policy, brand
management, communications, distribution and customer loyalty.
Consequently, GfK provides support for products and services from
the initial idea to the final development stages of the product life
Income from third parties
Custom Research
The Group measures the success of its sectors by reference to the
adjusted operating income according to internal reporting. The
adjusted operating income of a sector is determined on the basis
of the operating income before interest and taxes, by deducting
the following expense and income items: expenses and income in
connection with reorganization and business combinations, writedowns on additional assets identified on acquisitions, personnel
expenses from share-based payment and long-term incentives,
other operating income and other operating expenses. Segment
reporting on the sectors includes no information about segment
assets and investments, since these are not calculated for the individual sectors for the purposes of internal reporting and internal
management and are not reported to the Management Board.
Income from third parties comprises sales established in accordance
with ifrs. Income from other sectors is only generated by the Other
division and excluded in the reconciliation account for consolidated
sales. In principle, intra-Group transactions are recorded under
the same conditions as for third parties. Scheduled amortization
(excluding impairments) comprises depreciation and amortization on
tangible and intangible assets respectively in accordance with ifrs,
excluding write-downs on additional assets identified on acquisitions.
Segment information about the sectors for financial years 2009 and
2010 is shown in the table below.
Scheduled depreciation/
amortization
Inter-sector income
2009
2010
2009
2010
2009
2010
2009
2010
709,171
785,592
0
0
21,346
22,985
39,538
63,205
113,858
325,840
370,823
0
0
8,160
10,370
95,852
Media
126,376
133,077
0
0
6,036
4,280
16,555
15,588
Other
3,145
4,716
49,483
50,840
372
530
– 4,791
– 7,665
0
0
– 49,483
– 50,840
0
0
0
0
1,164,532
1,294,208
0
0
35,914
38,165
147,154
184,986
Reconciliation
Group
Future commitments arising from lease agreements are described
in Section 17, Tangible assets, in the sub-heading “Leasing”.
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GfK_143
Supplement disclosures
The reconciliation of scheduled depreciation/amortization to the
additions stated under (scheduled) depreciation/amortization for
tangible and intangible assets in the consolidated schedule of
movement in assets is as follows:
The reconciliation of non-current assets to the consolidated balance
sheet is as follows:
Non-current assets
Scheduled depreciation/amortization
2009
2010
35,914
38,165
Amortization on additional assets identified on
acquisitions
15,597
12,035
Depreciation/amortization in consolidated schedules of
movement in assets (see Sections 16 and 17)
51,511
50,200
With regard to the reconciliation of adjusted operating income to
operating income, reference is made to Section 11 of the Notes.
Information about geographical regions comprises details about
the regions in which the GfK Group operates. These are Germany,
Western Europe/Middle East/Africa, Central and Eastern Europe,
North America, Latin America and Asia and the Pacific.
The Western Europe/Middle East/Africa and Central and Eastern
Europe regions comprise all the countries in the European Union
with the exception of Germany, as well as other European countries
where the GfK Group is represented. In addition, Egypt, South
Africa and the United Arab Emirates are allocated to the Western
Europe/Middle East/Africa segment. The Central and Eastern
Europe segment also includes Russia and Kazakhstan. The North
America segment includes the United States of America and
Canada. Argentina, Brazil, Chile, Ecuador, Colombia, Mexico, Peru
and Venezuela are allocated to the Latin America segment. Asia
and the Pacific includes subsidiaries in the countries Australia,
China, India, Indonesia, Japan, Malaysia, Pakistan, Singapore, South
Korea, Thailand and Vietnam.
The information about geographical regions is based on financial
information, which is used to prepare the consolidated financial
statements. In accordance with ifrs 8, the non-current assets to be
stated do not comprise financial instruments, deferred tax assets,
services after termination of employment or rights arising from
insurance policies.
The information about the regions for financial years 2009 and
2010 is shown in the table below. Income from third parties has
been allocated to the individual regions according to where the
relevant subsidiary’s head office is located. Non-current assets
also include shares in associated companies.
Income from third parties
2010
2009
2010
Germany
301,265
341,109
175,671
183,870
Western Europe/
Middle East/Africa
458,119
482,874
505,785
527,992
Central and Eastern
Europe
North America
71,744
89,750
22,428
22,393
207,165
219,234
322,945
341,537
Latin America
39,366
54,791
30,128
35,017
86,873
106,450
58,828
71,467
1,164,532
1,294,208
1,115,785
1,182,276
Group
144_GfK
Non-current assets
2009
< < back
Deferred tax assets
Non-current assets according to the
consolidated balance sheet
2009
2010
1,115,785
1,182,276
9,544
11,015
32,600
38,901
1,157,929
1,232,192
The division of income from third parties according to groups of
comparable services corresponds to the above segment information for the Custom Research, Retail and Technology and Media
sectors.
As in the previous year, none of the sectors recorded income from
third parties in excess of 10 % of consolidated sales with a single
client in the year under review.
—
34. pro forma statements in accordance with ifrs 3
In view of the fact that company acquisitions during 2010 do not
materially affect comparability with the figures in the consolidated
financial statements as at December 31, 2009, no pro forma
statements are required in accordance with ifrs 3.
—
35. pending litigation and claims for compensation
No material disputes involving GfK se or one of its subsidiaries
were pending as at December 31, 2010.
—
36. events after the balance sheet date
Professor Dr. Klaus L. Wübbenhorst, GfK se’s long-standing ceo,
advised the Supervisory Board on February 23, 2011 that, for
personal reasons, he will not be extending his contract when it
runs out at the end of July 2012.
On January 1, 2011, GfK increased its shareholding in SirValUse
Consulting GmbH, Hamburg, the market leader in user experience
consulting, and its indirect participation in nurago GmbH, Hanover,
a leading global expert in digital brand, media and usability research,
from 20 % to 60 %. The companies will be fully consolidated from
January 1, 2011.
There were no further events materially affecting the GfK Group
after the reporting date.
37. amendments to ifrs standards
and interpretations
First-time application of standards or interpretations
In November 2006, the iasb published ifric 12 (Service Concession
Arrangements), which deals with the accounting of infrastructure
services by private companies. ifric 12 includes explanations regarding the distinction between the various phases of service concession
arrangements and for recognizing the related expenses and sales
revenue. The interpretation was adopted by the European Union in
March 2009. First-time application is mandatory for financial years
starting on March 29, 2009. The amendments have no impact on the
consolidated financial statements of the GfK Group.
Through the publication of the revised version of ifrs 3 (Business
Combinations) and the amendments to ias 27 (Consolidated and
Separate Financial Statements) in January 2008, the iasb completed
the second phase of the Business Combinations project. The main
changes include the accounting treatment of minority interests and
the remeasurement, through profit or loss, of already existing shares
at the time control was gained for successive company acquisitions.
Changes in the participation quota without loss of control are to be
recorded solely as equity transactions. Incidental acquisition costs
are to be recognized as expenses. For possible adjustments to acquisition costs, as a result of future events which are to be recognized
as liabilities at the time of acquisition, no adjustment to goodwill is
possible in the remeasurement. Adopted by the European Union in
June 2009, the amendments to ifrs 3 and ias 27 must be applied to
financial years commencing on or after July 1, 2009. These amendments result, in particular, in changes to liabilities from earn-outs
and rights of minority shareholders to make delivery (put options
and bonds), which were previously recognized directly in equity,
now being charged to the income statement of the consolidated
financial statements for the GfK Group. Incidental acquisition costs
in connection with business combinations are now also recognized
as expenses.
In July 2008, the iasb published the amendment to ias 39 (Financial Instruments: Recognition and Measurement: Eligible Hedge
Items). According to the existing regulations, companies may comprehensively include the risk relating to an underlying transaction
in hedges, or include specific risks only. In order to simplify application of the unchanged basic principles, the principles have been
supplemented in terms of defining inflation risks as an underlying
transaction and defining the unilateral risk inherent in an underlying transaction. The amendment is to be applied for financial years
starting on or after July 1, 2009 and was adopted by the European
Union in September 2009. The changes have no material impact on
the consolidated financial statements of the GfK Group.
In July 2008, the iasb also published ifric 16 (Hedges of a Net
Investment in a Foreign Operation), which clarifies issues relating
to the accounting of hedges against exchange rate risks within a
company and its international business operations in accordance
with the regulations in ias 21 and ias 39. The first-time application
of ifric 16 is mandatory in financial years starting on or after July 1,
2009. The interpretation was adopted by the European Union in
June 2009. The changes have no material impact on the consolidated
financial statements of the GfK Group.
In November 2008, the iasb published a revised version of ifrs 1
(First Time Adoption of ifrs), which replaced the existing ifrs 1
and is aimed at clarifying the content of the standard and making
it easier to apply. The changes relate solely to the format of ifrs
1. The standard must be applied for companies which prepare
financial statements in accordance with ifrs for the first time from
January 1, 2010 onwards. The revised version was adopted by the
European Union in November 2009. The changes have no impact
on the consolidated financial statements of the GfK Group.
In November 2008, the iasb also published ifric 17 (Distributions
of Non-cash Assets to Owners). The interpretation regulates how
a company should measure other assets as cash equivalents (noncash assets) when such assets are transferred to shareholders as
profit distribution. Application of ifric 17 is mandatory for financial
years starting on or after November 1, 2009. The interpretation was
adopted by the European Union in November 2009. The changes
have no impact on the consolidated financial statements of the GfK
Group.
In January 2009, the iasb published ifric 18 (Transfers of Assets
from Customers), which provides additional information regarding
the accounting for transfers of assets from customers, which the
company must use either to connect the customer to a network or
to grant the customer permanent access to the supply of goods and
services. ifric 18 also describes cases in which a company receives
cash equivalents subject to the condition of acquiring or producing
one of the above assets. The interpretation was adopted by the
European Union in November 2009. The changes have no impact
In April 2009, the iasb published the Improvements to ifrss 2009
as part of the annual improvements project, which resulted in
a number of changes to ifrs standards. Unless regulated separately in the relevant standard, the Improvements to ifrss are to
be applied to financial years starting on or after January 1, 2009.
Earlier application is permissible. The European Union adopted
the improvements in March 2010. The changes have no material
impact on the consolidated financial statements of the GfK Group.
In June 2009, the iasb published amendments to ifrs 2 (Group
Cash-settled Share-based Payment Transactions), which clarify
the treatment of share-based payments settled in cash within the
Group. Companies which receive goods or services as part of a
share-based compensation agreement must report these goods or
services, irrespective of which company within the Group fulfills
the associated obligation or whether the obligation is settled in
shares or in cash. In line with ias 27, a “group” comprises only
the parent company and its subsidiaries. The changes must be
applied for the first time to financial years starting on or after
January 1, 2010. The amendments were adopted by the European
Union in March 2010. The changes have no impact on the consolidated financial statements of the GfK Group.
—
In July 2009, the iasb published amendments to ifrs 1 (Additional
Exemptions for First-time Adopters). The amendments relate to the
retrospective application of ifrs in certain situations and are aimed
at ensuring that companies do not incur unreasonable costs when
switching to ifrs accounting. The standard affects companies which
apply ifrs for the first time. The amendments must be applied for
the first time to financial years starting on or after January 1, 2010.
The amendments were adopted by the European Union in June 2010.
The changes have no impact on the consolidated financial statements
of the GfK Group.
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GfK_145
Supplement disclosures
Standards or interpretations adopted by the eu whose application
is not yet mandatory for financial years starting on January 1, 2010
In October 2009, the iasb published the amendments to ias 32
(Amendments to ias 32 Classification of Rights Issues), which
were adopted by the European Union in December 2009. These
amendments to ias 32 clarify the treatment of certain subscription
rights if the instruments issued are not denominated in the issuer’s
functional currency. If such instruments are offered to the current
holders at a fixed amount on a pro rata basis, they should also be
classified as equity instruments if their subscription rights price is
expressed in a currency which differs from the issuer’s functional
currency. The changes must be applied for the first time to financial years starting on or after February 1, 2010. These amendments will have no material impact on the consolidated financial
statements of the GfK Group.
In November 2009, the iasb published a revised version of ias 24
(Related Party Disclosures). The changes include a clarification of
the definition of the term “related party”. The first-time application
of ias 24 is mandatory for financial years starting on or after
January 1, 2011. The revised version was adopted by the European
Union in July 2010. The changes will have no material impact on
In November 2009, the iasb also published an amendment to
ifric 14 (Amendment to ifric 14 Prepayments of a Minimum
Funding Requirement). The amendment to ifric 14 is relevant if a
company is subject to a minimum funding requirement and makes
advance contribution payments, in order to fulfill this minimum
funding requirement. The amendment enables companies to
recognize the benefit from such prepayments as an asset in these
cases. Application of the amendment to ifric 14 is mandatory from
January 1, 2011. The amendment was adopted by the European
Union in July 2010. The changes will have no material impact on
In November 2009, the iasb additionally published ifric 19
(Extinguishing Financial Liabilities with Equity Instruments). The
interpretation clarifies that the equity instruments issued to a
creditor for extinguishing financial liabilities form a component
of the “compensation paid” in accordance with ias 39.41. The
corresponding equity instruments must generally be valued at fair
value. The difference between the carrying value of the financial
liability to be taken off the books and the amount at first-time
recognition of the equity instruments issued must be reported in
the income statement. ifric 19 must be applied to financial years
starting on or after July 1, 2010. The interpretation was adopted by
the European Union in July 2010. The changes will have no impact
In January 2010, the iasb published an amendment to ifrs 1 (Limited Exemption from Comparative ifrs 7 Disclosures for First-time
Adopters). This amendment exempts parties applying ifrs for the
first time from the additional disclosures to be made in 2009 under
ifrs 7. Application is mandatory from July 1, 2010. The amendment
was adopted by the European Union in June 2010. The changes
will have no impact on the consolidated financial statements of the
GfK Group.
146_GfK
< < back
In May 2010, the iasb published the Improvements to ifrss 2010 as
part of the annual improvements project, which resulted in a number of changes to ifrs standards. Unless regulated separately in the
relevant standard, the Improvements to ifrss are to be applied to
financial years starting on or after July 1, 2010. Earlier application
is permissible. The European Union adopted the improvements in
February 2011. The changes will have no material impact on the
Standards or interpretations resolved by the iasb but not yet
adopted by the eu
In November 2009, the iasb published ifrs 9 (Financial Instruments). The standard regulates the requirements in terms of the
classification and valuation of financial instruments. ifrs 9 creates
only two valuation categories. The changes must be applied to
financial years starting on or after January 1, 2013. Earlier application is permissible. Adoption by the European Union is currently
outstanding. The changes will impact on the consolidated financial
statements of the GfK Group with regard to the classification and
valuation of financial instruments.
In October 2010, the iasb published amendments to ifrs 7 Financial Instruments: Disclosures (Disclosures – Transfers of Financial
Assets). They relate, in particular, to additional disclosure requirements regarding the transfer of financial assets. They are aimed
at making it easier to understand the link between the financial
assets transferred and the corresponding financial liabilities. The
amendments to ifrs 7 must be applied in financial years starting
on or after July 1, 2011. Adoption by the European Union is
currently outstanding. The changes will have no material impact
In December 2010, the iasb published an amendment to ifrs 1
(Severe Hyperinflation and Removal of Fixed Dates for First-time
Adopters). As a result of this amendment to ifrs 1, rules have been
included for cases in which a company was temporarily unable to
comply with the ifrs requirements because its functional currency
was subject to hyperinflation. This amendment to ifrs 1 must be
applied for the first time in financial years starting on or after July
1, 2011. The changes will have no impact on the consolidated
financial statements of the GfK Group.
In December 2010, the iasb also published an amendment to
ias 12 (Deferred Tax on Investment Property). With regard
to investments property, it is often difficult to assess whether
temporary tax differences will be reversed under continued use
or as part of a sale. The amendment to ias 12 now clarifies that
the reversal generally occurs on the basis of a sale. The amended
ias 12 must be applied for the first time in financial years starting
on or after January 1, 2012. Adoption by the European Union is
currently outstanding. The changes will have no impact on the
Auditor’s service fee
In 2010, the expenses for the fee for the auditor of GfK se amounted
to eur 1,690 thousand (2009: eur 1,585 thousand) and also included
the service fee for the auditor and its affiliated companies for the
financial statements of the us, uk, Spanish, Swiss, Dutch and Belgian
subsidiaries of GfK se. The fee comprises the auditing of the annual
financial statements of GfK se in accordance with the German
Commercial Code (hgb), the Group reporting package in accordance
with ifrs and the consolidated financial statements in accordance
with ifrs. In addition, the service fee for the auditor and its affiliated
companies included the fee for the audited financial statements of
the German, us, uk, Spanish, Swiss, Dutch and Belgian subsidiaries
in accordance with national legislation (where required) as well as
the ifrs reporting package.
Number of staff
In the year under review, 10,377 (2009: 10,307) staff were employed
on average. The annual average number of staff was determined
on the basis of the full-time equivalent. The average was calculated
using the key dates of March 31, June 30, September 30 and December 31.
The allocation of staff to sectors is shown in the table below.
2009
2010
Custom Research
6,010
5,912
3,183
3,344
Media
560
549
Other
384
407
10,137
10,212
108
109
Managing Directors/Management Board members
Trainees
The cost of tax advice from the auditor in Germany, England, Spain,
Switzerland and the Netherlands was eur 286 thousand (2009:
eur 516 thousand) and eur 180 thousand (2009: eur 152 thousand)
for other services provided by the auditor.
Exemption of subsidiaries from the obligation to prepare
financial statements
Pursuant to Section 264 (3) of the German Commercial Code (hgb),
GfK Retail and Technology GmbH, Nuremberg, encodex International GmbH, Nuremberg, and GfK GeoMarketing GmbH, Bruchsal,
are exempt from preparing, having audited and disclosing annual
financial statements and a management report in accordance with
the provisions for joint stock companies pursuant to Sections 264ff.
hgb.
Full-time employees
62
56
10,307
10,377
Total remuneration and shares of the Management Board
and Supervisory Board
Total remuneration granted to the Management Board for its
duties in the financial year amounted to eur 7,452 thousand (2009:
eur 5,187 thousand). Total remuneration for the Supervisory Board
in the financial year amounted to eur 416 thousand (2009: eur 370
thousand).
Information about the individual remuneration paid to the Management Board and Supervisory Board and the structure of the relevant
remuneration components for the Management Board as well as
the shares held by Management Board members is provided in the
remuneration report of the Corporate Governance report on pages
21ff.
The Supervisory Board holds 3,762 shares. The members of the
Supervisory Board hold no stock options. Former members of the
management of GfK GmbH, Nuremberg, and the Management
Board of GfK se, Nuremberg, as well as their surviving dependants,
received total payments of eur 914 thousand (2009: eur 916
thousand). Provisions of eur 13,657 thousand (2009: eur 11,289
thousand) have been set up for pension commitments to former
Management Board members, their surviving dependants and
managing directors.
There were no loans and advances to members of the Management
Board or Supervisory Board.
forward > >
—
38. supplementary disclosures
GfK_147
Supervisory Board
—
39. supervisory board
Dr. Arno Mahlert
Stephan Gemkow
Chairman
Member of the Management Board of Deutsche Lufthansa ag
Seats held on other supervisory boards and comparable
supervisory bodies:
supervisory bodies:
• Eterna Mode GmbH, Passau, Germany (Chairman, since July 1, 2010)
• Springer Science + Business Media s.a., Luxembourg,
Luxembourg (Chairman, until February 28, 2010)
• Saarbrücker Zeitung GmbH, Saarbrücken, Germany
(Deputy Chairman)
• dal Deutsche Afrika-Linien GmbH & Co. kg, Hamburg, Germany
• Delvag Luftfahrtversicherungs-ag, Cologne, Germany (Chairman)
• lsg Lufthansa Service Holding ag, Neu-Isenburg, Germany
(Chairman)
• Lufthansa AirPlus Servicekarten GmbH, Neu-Isenburg, Germany
(Chairman)
• Lufthansa Cargo ag, Kelsterbach, Germany (Chairman)
• Lufthansa Systems ag, Kelsterbach, Germany (Chairman)
• maxingvest ag, Hamburg, Germany
• Lufthansa Technik ag, Hamburg, Germany (Chairman)
• Peek & Cloppenburg kg, Hamburg, Germany (since June 23, 2010)
• Amadeus it Group s.a., Madrid, Spain
• Zeitverlag Gerd Bucerius GmbH & Co., Hamburg, Germany
• Amadeus it Holding s.a., Madrid, Spain
Stefan Pfander
• JetBlue Airways Corp., New York, New York, usa
• Evonik Industries ag, Essen, Germany
Deputy Chairman
Sandra Hofstetter (since May 26, 2010)
supervisory bodies:
Independent Works’ Council representative at GfK se
• PETMedical ag, Zumikon, Switzerland (Chairman)
Deputy Chairman of the Works’ Council at GfK se
Deputy Chairman of the European se Works’ Council
• Treofan Holdings GmbH, Raunheim, Germany (Chairman)
• Sweet Global Network e.V., Munich, Germany
(Deputy Chairman)
• Barry Callebaut ag, Zurich, Switzerland
• maxingvest ag, Hamburg, Germany
Stephan Lindeman
Research Director at Intomart GfK b.v., Hilversum, Netherlands
Chairman of the Works’ Council at Intomart GfK b.v.,
Hilversum, Netherlands
Deputy Chairman of the European se Works’ Council
Managing Director and Business Consultant
Shani Orchard
supervisory bodies:
Human Resources and Facilities Director,
GfK Retail and Technology uk Ltd, West Byfleet, Surrey, uk
• Reinert GmbH & Co. kg, Versmold, Germany
(Chairman, since January 1, 2010)
Member of the Steering Committee of the European se Works’
Council
• Peek & Cloppenburg kg, Hamburg, Germany (since June 23, 2010)
• SinnLeffers GmbH, Hagen, Germany (until August 31, 2010)
Hauke Stars
General Manager, Hewlett-Packard Schweiz GmbH, Dübendorf,
Switzerland
supervisory bodies:
• omv ag, Vienna, Austria (Deputy Chairman, since May 26, 2010)
• Bank of Scotland plc, Edinburgh, Scotland (until May 6, 2010)
• Cadbury plc, London, uk (until April 30, 2010)
• hbos plc, Edinburgh, Scotland (until May 6, 2010)
• Lloyds Banking Group plc, London, uk (until May 6, 2010)
• Lloyds tsb Bank plc, London, uk (until May 6, 2010)
• miba ag, Laakirchen, Austria
• miba Beteiligungs ag, Laakirchen, Austria
• bast ag, Vienna, Austria (since September 23, 2010)
148_GfK
< < back
Dieter Wilbois
Independent Works’ Council representative at GfK se
Chairman of the Group Works’ Council
Chairman of the European se Works’ Council
—
40. management board
Professor Dr. Klaus L. Wübbenhorst
Dr. Gérard Hermet (until December 31, 2010)
Chief Executive Officer (ceo)
Chief Operating Officer (coo)
Responsible for Strategy, Internal Audit, Marketing Sciences,
Corporate Communications and it Services
Retail and Technology sector
Seats held on supervisory boards and comparable supervisory bodies:
• npd Intelect, l.l.c., New York, New York, usa
• bu Holding GmbH & Co. kg, Nuremberg, Germany (Chairman)
• ergo Versicherungsgruppe ag, Dusseldorf, Germany
Debra A. Pruent
Pamela Knapp
Custom Research sector
Chief Financial Officer (cfo)
Responsible for Finance, Accounting, Controlling, Tax, Mergers
and Acquisitions, Legal and Compliance, Human Resources and
Central Services
• Advertising Research Foundation (arf), New York, New York, usa
Wilhelm R. Wessels
• Monier Holding gp s.a., Luxembourg, Luxembourg
Custom Research and Media sectors
Petra Heinlein
• Leoni ag, Nuremberg, Germany
Custom Research sector
• staedtler Noris GmbH, Nuremberg, Germany
• staedtler Stiftung, Nuremberg, Germany
Dr. Gerhard Hausruckinger (since September 1, 2010)
• TriStyle Mode GmbH & Co. kg, Fürth, Germany
Retail and Technology sector
forward > >
GfK_149
—
41. shareholdings of the gf k group
Share in the capital
in %
Company name and registered office
Financial
year
Equity
(eur '000)
Affiliated companies (Germany), included in the consolidated financial statements
(details according to ifrs commercial balance sheet ii)
encodex International GmbH, Nuremberg
1951)
95.00
2010
enigma GfK Medien- und Marketingforschung GmbH, Wiesbaden
100.00
2010
6931)
GfK GeoMarketing GmbH, Bruchsal
100.00
2010
1,0221)
GfK North America Holding GmbH, Nuremberg
100.00
2010
242,8331)
GfK North America Investment GmbH, Nuremberg
100.00 3)
2010
190,7191)
95.00 10)
GfK Retail and Technology GmbH, Nuremberg
ifr Deutschland GmbH, Dusseldorf
media control GfK international GmbH, Baden-Baden
2010
140,6281)
100.00 3)
2010
– 1,713
70.00 4)
2010
2,748
Media Markt Analysen GmbH & Co. kg, Frankfurt/Main
100.00
2010
349
Modata GmbH, Berlin
100.00 3)
2010
372
99.00 3)
2010
3,122
Affiliated companies (abroad), included in the consolidated financial statements
(details according to ifrs commercial balance sheet ii)
Adimark Investigaciones de Mercado Ltda., Providencia, Santiago, Chile
Adimark s.a., Providencia, Santiago, Chile
100.00
2010
603
afi Investments ulc, London, uk
100.00 3)
2010
716
Barterstore ulc, London, uk
100.00 3)
2010
4,980
Beijing Sino Market Research Co., Ltd., Beijing, China
100.00 3)
2010
200
Bilesim Internasyonal Arastirma Organizasyon Danismanlik ve Ticaret a.s.,
Istanbul, Turkey
China Market Monitor Co., Ltd., Beijing, China
100.00 3)
100.00 3)
2010
2010
106
1,305
Collect Investigaciones de Mercado s.a., Providencia, Santiago, Chile
100.00 3)
2010
637
51.00 3)
2010
343
Dealtalk Limited, London, uk
100.00 3)
2010
3,114
Doane Marketing Research, Inc., Saint Louis, Missouri, usa
100.00 3)
2010
1,638
63.00 3)
2010
666
100.00 3)
2010
144
51.00 3)
2010
6,858
100.00 3)
2010
681
51.00 3)
2010
189
GfK (u.k.) Ltd., West Byfleet, Surrey, uk
100.00 3)
2010
5,806
GfK Animal Healthcare Limited, West Byfleet, Surrey, uk
100.00 3)
2010
0
GfK Arastirma Hizmetleri a.s., Istanbul, Turkey
100.00
2010
6,363
GfK Ascent-mi Limited, West Byfleet, Surrey, uk
100.00
2010
388
GfK Asia Pte Ltd., Singapore, Singapore
100.00 3)
2010
21,757
GfK Audimetrie n.v., Brussels, Belgium
100.00 3)
2010
1,880
94.80 3)
2010
10,604
GfK Belgrade d.o.o., Belgrade, Serbia
100.00 3)
2010
560
GfK bh d.o.o., Sarajevo, Bosnia and Herzegovina
100.00 3)
2010
130
GfK Blue Moon Quantitative Research Pty. Limited, St Leonards, Australia
100.00 3)
2010
4
GfK Blue Moon Research and Planning Pty. Limited, St Leonards, Australia
100.00 3)
2010
241
Corporación Empresarial asa sa de cv, Mexico City, Mexico
Encodex Japan k.k., Osaka, Japan
Etilize (Private) Limited, Karachi, Pakistan
Etilize, Inc., Rolling Hills Estates, California, usa
GfK – Centar za istrazivanje trzista d.o.o., Zagreb, Croatia
GfK – Conecta s.a.c., Lima, Peru
GfK Austria GmbH, Vienna, Austria
1) Profit and loss transfer agreement
2) Details according to commercial balance sheet II
3) Full indirect shareholding
4) Partially indirect shareholding
150_GfK
< < back
5) Details not available
6) Details as per provisional financial statements
drawn up under national law
7) Newly established in 2010
8) In liquidation
9) Stub period
10) Shareholding of the minority shareholder
is regulated by separate agreement
Financial
year
Equity
(eur '000)
378
GfK Chart-Track Limited, London, uk
55.00 3)
2010
GfK Colombia s.a., Bogotá, Colombia
99.40 3)
2010
160
2010
4,835
– 468
GfK Custom Research Australia Holding Pty. Limited, Sydney, Australia
100.00
GfK Custom Research Baltic, Riga, Latvia
51.00 3)
2010
GfK Custom Research Beijing Co., Ltd., Beijing, China
66.00
2010
877
GfK Custom Research Brasil Pesquisa de Mercado Ltda., São Paulo, Brazil
95.00
2010
5,621
GfK Custom Research Japan kk, Tokyo, Japan
66.00
2010
1,192
GfK Custom Research Latam Holding, s.l., Valencia, Spain
95.00
2010
95
GfK Custom Research Pte. Ltd., Singapore, Singapore
100.00
2010
8,147
GfK Custom Research, llc, New York, New York, usa
100.00 3)
2010
45,055
GfK Czech, s r.o., Prague, Czech Republic
100.00 3)
2010
891
GfK Danmark a/s, Frederiksberg, Denmark
100.00
2010
274
GfK Daphne Communication Management b.v., Amstelveen, Netherlands
100.00 3)
2010
– 215
GfK emer Ad Hoc Research, s.l., Valencia, Spain
50.10
2010
5,498
GfK Equity Research Inc., Boston, Massachusetts, usa
100.00 3)
2010
1,229
GfK eurisko rom s.r.l., Iasi, Romania
100.00 3)
2010
97
GfK eurisko S.r.l., Milan, Italy
100.00 3)
2010
– 9,287
GfK Healthcare Holding, Inc., Wilmington, Delaware, usa
100.00 3)
2010
464
GfK Healthcare, lp, East Hanover, New Jersey, usa
100.00 3)
2010
8,249
gfk hellas e.p.e., Athens, Greece
100.00
2010
1,520
gfk holding mexico, s.a. de c.v., Mexico City, Mexico
100.00
2010
798
GfK Holding, Inc., Wilmington, Delaware, usa
100.00 3)
2010
177,777
GfK Hungária Piackutató Kft., Budapest, Hungary
100.00 3)
2010
2,310
GfK Immobilier Société à responsabilité limitée, Rueil-Malmaison, France
100.00 3)
2010
375
gfk isl, custom research france sas, Rueil-Malmaison, France
100.00
2010
515
GfK Kasachstan too, Almaty, Kazakhstan
100.00 3)
2010
175
GfK Kleiman Sygnos s.a., Buenos Aires, Argentina
90.00
2010
107
100.00 3)
2010
– 375
GfK Kynetec Group Limited, St Peter Port, Guernsey, uk
100.00
2010
25,728
GfK Kynetec Limited, Bristol, uk
100.00 3)
2010
3,070
51.00 3)
2010
3,398
GfK Kynetec France sas, Saint Aubin, France
gfk latinoamerica holding, s.l., Valencia, Spain
GfK LifeStyle Tracking Japan kk, Tokyo, Japan
100.00
2010
1,016
GfK Malta Holding Limited, Portomaso, Malta
100.00
2010
246,779
GfK Malta Services Limited, Portomaso, Malta
100.00 3)
2010
129,783
99.00 3)
2010
1,192
100.00 3)
2010
1,595
84.20 3)
2010
16,002
GfK Mediamark Research & Intelligence, llc, New York, New York, usa
100.00 3)
2010
21,313
GfK Mode Pvt Ltd, Kolkata, India
100.00 3)
2010
2,912
GfK Music sarl, Rueil-Malmaison, France
100.00 3)
2010
172
GfK Mystery Shopping Services Ltd., London, uk
100.00 3)
2010
211
GfK Nielsen India Private Limited, Mumbai, India
50.10 3)
2010
1,264
GfK Market Consulting (Beijing) Co. Ltd., Beijing, China
GfK Marketing Services Hong Kong Limited, Hong Kong, China
GfK Marketing Services Japan k.k., Tokyo, Japan
in %
8) In liquidation
9) Stub period
forward > >
GfK_151
in %
398
GfK nop Field Interviewing Services Limited, London, uk
100.00 3)
2010
100.00 3)
2010
167
GfK nop Limited, London, uk
100.00 3)
2010
59,607
GfK nop Mystery Shopping Services Limited, London, uk
100.00 3)
2010
125
GfK nop Services Limited, London, uk
100.00 3)
2010
299
GfK nop Telephone Interviewing Services Limited, London, uk
100.00 3)
2010
456
GfK nop u.k. Holding Limited, London, uk
100.00 3)
2010
25,383
GfK Norge a/s, Oslo, Norway
100.00
2010
929
GfK Panelservices Benelux b.v., Dongen, Netherlands
100.00
3)
2010
8,785
GfK Polonia Sp. z o.o., Warsaw, Poland
100.00 3)
2010
3,630
80.00 3)
2010
2,492
GfK Research Dynamics, Inc., Mississauga, Canada
100.00
2010
1,228
GfK Research Matters ag, Basel, Switzerland
100.00
2010
1,865
GfK Retail and Technology (Thailand) Ltd., Bangkok, Thailand
100.00 3)
2010
190
GfK Retail and Technology Argentina s.a., Buenos Aires, Argentina
95.10 3)
2010
607
GfK Retail and Technology Asia Holding b.v., Amsterdam, Netherlands
89.48 3)
2010
143
GfK Retail and Technology Baltic sia, Riga, Latvia
100.00 3)
2010
660
GfK Retail and Technology Benelux b.v., Amstelveen, Netherlands
100.00 3)
2010
8,153
GfK Retail and Technology Brasil Ltda., São Paulo, Brazil
95.00 3)
2010
3,171
GfK Retail and Technology Chile Limitada, Santiago, Chile
100.00 3)
2010
1,286
GfK Retail and Technology China Co. Ltd., Shanghai, China
100.00 3)
2010
20,360
50.10 3)
2010
7,770
Gfk Retail and Technology France sas, Rueil-Malmaison, France
100.00 3)
2010
7,090
GfK Retail and Technology Hong Kong Limited, Hong Kong, China
100.00 3)
2010
1,913
GfK Retail and Technology Italia S.r.l., Milan, Italy
100.00 3)
2010
7,099
GfK Retail and Technology Korea Limited, Seoul, South Korea
100.00 3)
2010
2,835
GfK Retail and Technology Malaysia Sdn. Bhd., Kuala Lumpur, Malaysia
100.00 3)
2010
841
GfK Retail and Technology Market Research Vietnam Limited,
Ho Chi Minh City, Vietnam
GfK Retail and Technology Middle East fz-llc, Dubai, United Arab Emirates
100.00 3)
100.00 3)
2010
2010
123
3,484
GfK Retail and Technology South Africa (Proprietary), Sandton, South Africa
100.00 3)
2010
432
GfK Retail and Technology Taiwan Ltd, Taipei, Taiwan, China
100.00 3)
2010
332
GfK Retail and Technology uk Ltd, West Byfleet, Surrey, uk
100.00 3)
2010
10,665
GfK Retail and Technology usa, llc, Wilmington, Delaware, usa
100.00 3)
2010
508
GfK Retail and Technology, Australia Pty. Limited, Sydney, Australia
100.00 3)
2010
10,026
GfK Romania-Institut de Cercetare de Piata Srl, Bucharest, Romania
100.00 3)
2010
1,671
GfK Slovakia Inštitút pre prieskum trhu s r.o., Bratislava, Slovakia
100.00 3)
2010
411
gfk slovenija, tržne raziskave d.o.o., Ljubljana, Slovenia
100.00 3)
2010
405
GfK Sverige Aktiebolag, Lund, Sweden
100.00
2010
2,190
GfK Switzerland ag, Hergiswil, Switzerland
100.00
2010
30,083
GfK Telecontrol ag, Hergiswil, Switzerland
100.00 3)
2010
9,528
70.00
2010
147
100.00 3)
2010
2,565
GfK Retail and Technology España, s.a., Valencia, Spain
Equity
(eur '000)
GfK nop Field Marketing Services Limited, London, uk
GfK portugal – Marketing Services, Limitada, Lisbon, Portugal
GfK uk Entertainments Ltd., London, uk
GfK Ukraine, Kiev, Ukraine
152_GfK
Financial
year
< < back
8) In liquidation
9) Stub period
Financial
year
Equity
(eur '000)
GfK us Holdings, Inc., Wilmington, Delaware, usa
100.00 3)
2010
232,640
GfK-Bulgaria, Institut für Marktforschung EGmbH, Sofia, Bulgaria
100.00 3)
2010
943
GFKEcuador s.a. Investigacion Estrategica, Quito, Ecuador
99.80 3)
2010
390
GfK-memrb Marketing Services Limited, Nicosia, Cyprus
60.00 3)
2010
428
GfK-rus Gesellschaft mbH, Moscow, Russia
100.00 3)
2010
5,913
ifr Europe Ltd., London, uk
100.00 3)
2010
395
ifr France s.a., Rueil-Malmaison, France
100.00 3)
2010
570
ifr Italia S.r.L., Milan, Italy
100.00 3)
2010
138
ifr Marketing España s.a., Madrid, Spain
100.00
3)
2010
114
ifr Monitoring Canada Inc., Niagara Falls, Canada
100.00 3)
2010
242
ifr Monitoring usa Inc., Niagara Falls, New York, usa
100.00 3)
2010
725
75.00 3)
2010
34
100.00 3)
2010
116
incoma Research, s.r.o., Prague, Czech Republic
Informark Pty. Ltd., Braddon, Australia
Institut Français de Recherche-i.f.r. s.a., Rueil-Malmaison, France
100.00
2010
18,548
Interactive Research Limited, London, uk
100.00 3)
2010
– 655
intercampus-recolha, tratamento e distribuição de informação, Limitada,
Lisbon, Portugal
Intomart GfK b.v., Hilversum, Netherlands
69.10 3)
100.00 3)
2010
2010
1,255
14,302
Intomart GfK Group b.v., Hilversum, Netherlands
100.00 3)
2010
– 1,347
merc Analistas de Mercados c.a., Caracas, Venezuela
100.00 3)
2010
1,001
merc Analistas de Mercados s.a. de c.v., Mexico City, Mexico
51.00 3)
2010
4,839
metris-métodos de recolha e investigação social, lda, Lisbon, Portugal
71.00 3)
2010
1,141
mil Research Group Limited, London, uk
100.00 3)
2010
575
National Opinion Polls Limited, London, uk
100.00 3)
2010
2,740
nop World Limited, London, uk
100.00 3)
2010
53,197
Numbers Services Limited, London, uk
100.00 3)
2010
966
51.00 3)
2010
30
pt. GfK Retail and Technology Indonesia, Jakarta, Indonesia
100.00 3)
2010
145
Roperasw Europe Limited, Leatherhead, Surrey, uk
100.00 3)
2010
3,815
86.03 3)
2010
1,571
Significant GfK bvba, Heverlee, Belgium
100.00 3)
2010
4,207
Telecontrol Bulgaria – Switzerland ag, Hergiswil, Switzerland
100.00 3)
2010
– 2,016
Oz Toys Marketing Services Pty. Ltd., Sydney, Australia
Shopping Brasil Tecnologia da Informação Ltda, Porto Alegre, Brazil
in %
Affiliated companies (Germany) not included in the consolidated financial statements
(details according to hgb commercial balance sheet i)
1-2-3 MysteryWorldNet GmbH, Hamburg
100.00
2010
13
59.00
2010
397
GfK Siebte Vermögensverwaltungs GmbH, Nuremberg
100.00
2010
15
GfK Vierte Vermögensverwaltungs GmbH, Nuremberg
100.00
2010
Gplus GmbH, Nuremberg
100.00
2010
403
Media Markt Analysen Verwaltungs-GmbH, Frankfurt/Main
100.00
2010
28
GfK Middle East cr Holding GmbH, Nuremberg
251)
8) In liquidation
9) Stub period
forward > >
GfK_153
in %
Financial
year
Equity
(eur '000)
Affiliated companies (abroad) not included in the consolidated financial statements
Adfinders b.v., Hoofddorp, Netherlands
100.00 3)
2010
– 654
caticall – recolha de informação assistida por computador, lda.,
Lisbon, Portugal
gfk Egypt ltd, Cairo, Egypt
100.00 3)
74.00 3)
2010
2010
34
227
GeoAdimark s.a., Providencia, Santiago, Chile
100.00 3)
2010
216
99.50 3)
2010
158
100.00 3)
2010
76
81.00 4)
2010
0
GfK Kynetec Poland, Poznan, Poland
100.00 3)
2010
– 119
GfK m2 GmbH, Hergiswil, Switzerland
GfK Marketing Services Eastern Europe Holding spol. z o. o., Warsaw, Poland
70.00
100.00 3)
2010
2010
– 527
5
GfK Martin Hamblin Limited, London, uk
100.00
2010
0
53.45
2010
–1
Gfk Middle East fz-llc, Dubai, United Arab Emirates
100.00 3)
2010
– 479
gfk panama s.a., Panama City, Panama
100.00 3),7)
2010
4109)
99.84
3),7)
2010
739)
90.00
3)
2010
GfK – Retail and Technology Colombia Limitada, Bogotá, Colombia
GfK Albania, Tirana, Albania
GfK Custom Research Development and Training Center eig, Brussels, Belgium
GfK Mediacontrol Latina s.l., Valencia, Spain
GFK Retail & Technology Egypt , l.l.c., Cairo, Egypt
GfK Retail & Technology Ltd., Ramat Gan, Israel
GfK Retail and Technology East Africa Limited, Nairobi, Kenya
100.00
GfK Retail and Technology Peru s.a.c., Lima, Peru
100.00 3),7)
2010
417
– 19)
2010
420
2010
4499)
3)
2010
5
100.00 3)
67.00 3)
2010
2010
260
39
GfK-rt Nigeria Limited, Lagos, Nigeria
100.00 3)
2010
122
ifr Asia Co. Ltd., Beijing, China
100.00 3)
2010
156
ifr Central Europe Market Research llc, Budapest, Hungary
100.00 3)
2010
215
ifr Field sarl, Rueil-Malmaison, France
100.00 3)
2010
57
ifr Polska Sp. z o.o., Warsaw, Poland
100.00 3)
2010
32
ifr rus Limited, Moscow, Russia
100.00 3)
2010
110
70.00 3)
2010
3)
2010
137
80.00 3)
2010
– 114
Intomart DataCall b.v., Hilversum, Netherlands
100.00 3)
2010
– 337
Media Control ag, Zurich, Switzerland
100.00 3)
2010
225
Server s.a., Providencia, Santiago, Chile
100.00 3)
2010
1
51.00
GfK Stratégie et développement Groupement d'intérêt Economique,
Rueil-Malmaison, France
GfK-Media Research Middle East sa, Hergiswil, Switzerland
3)
GfK Retail and Technology North Africa sarl, Casablanca, Morocco
gfk Skopje ltd Skopje, Skopje, Macedonia
ifr South America, sa, Buenos Aires, Argentina
ifr u.k. Ltd., London, uk
100.00
intercampus estudos de mercado, lda, Maputo, Mozambique
154_GfK
100.00 3),7)
< < back
5)
8) In liquidation
9) Stub period
in %
Financial
year
Equity
(eur '000)
40.00
2010
3,399
agb Nielsen, medijske raziskave, d.o.o., Ljubljana, Slovenia
21.00 3)
2010
748
Common Technology Centre eeig, London, uk
25.00 3)
2010
Consumer Zoom sas, Rueil-Malmaison, France
30.00 4)
2010
Europanel Raw Database gie, Brussels, Belgium
50.00 4)
2010
5)
8)
2010
5)
Associated companies (Germany)
(details according to hgb commercial balance sheet i)
SirValUse Consulting GmbH, Hamburg
Associated companies (abroad)
5)
976
i + g Infratest Medical Research Inc., Rhode Island, usa
50.00
MarketingScan snc, Rueil-Malmaison, France
50.00
Media Focus (arge), Hergiswil, Switzerland
50.00 3)
2009/2010
5)
mrc-Mode Pvt. Limited, Dhaka, Bangladesh
36.00
3)
2009/2010
5)
npd Intelect, l.l.c., Port Washington, New York, usa
25.00
3)
2009/2010
Sports Tracking Europe b.v., Amstelveen, Netherlands
25.00
2010
3,036
42,281
5)
2009/2010
St. Mamet Saisie Informatique (smsi) s.a.r.l., Saint-Mamet-la-Salvetat, France
20.40
3)
2010
713
Starch Research Services Limited, Toronto, Ontario, Canada
20.00 3)
2009/2010
144
Watch Media (Cyprus) ltd, Nicosia, Cyprus
49.00
2010
12.26 4)
2010
5.80 4)
2010
5)
Other participations (abroad)
Qosmos sa, Amiens, France
6,531
5)
symphony iri group limited, Maidenhead, Berkshire, uk
8) In liquidation
9) Stub period
forward > >
GfK_155
—
—
42. declaration on the german
corporate governance code
44. statement by the legal representatives
The declaration prescribed by Section 161 of the German Stock
Corporation Act (AktG) has been issued by the Management Board
and the Supervisory Board and made permanently available to
shareholders at www.gfk.com.
—
43. release for publication
The Management Board of GfK se released the consolidated
financial statements for passing on to the Supervisory Board on
March 17, 2011. It is the duty of the Supervisory Board to check
the consolidated financial statements and to declare whether it
approves the consolidated financial statements.
To the best of our knowledge, and in accordance with the applicable
reporting principles, the consolidated financial statements give a
true and fair view of the assets, liabilities, financial position and
profit or loss of the Group, and the Management Report of the Group
includes a fair review of the development and performance of the
business and the position of the Group, together with a description
of the principal opportunities and risks associated with the expected
development of the Group.
—
—
Pamela Knapp
—
—
Petra Heinlein
—
Debra A. Pruent
—
Wilhelm R. Wessels
156_GfK
< < back
Auditor’s
Auditor
s report
—
auditor’s report
We conducted our audit of the consolidated financial statements
in accordance with § 317 hgb (Handelsgesetzbuch “German
Commercial Code”) and German generally accepted standards for
the audit of financial statements promulgated by the Institut der
Wirtschaftsprüfer (idw). Those standards require that we plan and
perform the audit such that misstatements materially affecting
the presentation of the net assets, financial position and results of
operations in the consolidated financial statements in accordance
with the applicable financial reporting framework and in the Group
management report are detected with reasonable assurance.
Knowledge of the business activities and the economic and
legal environment of the Group and expectations as to possible
misstatements are taken into account in the determination of audit
procedures. The effectiveness of the accounting-related internal
control system and the evidence supporting the disclosures in
the consolidated financial statements and the Group management
report are examined primarily on a test basis within the framework
of the audit. The audit includes assessing the annual financial
statements of those entities included in consolidation, the
determination of entities to be included in consolidation, the
accounting and consolidation principles used and significant
estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements
and Group management report. We believe that our audit
provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated
financial statements comply with ifrs, as adopted by the eu, the
additional requirements of German commercial law pursuant to
§ 315a section 1 hgb (and supplementary provisions of the articles
of incorporation) and give a true and fair view of the net assets,
financial position and results of operations of the Group in accordance with these requirements. The Group management report
is consistent with the consolidated financial statements and as a
whole provides a suitable view of the Group’s position and suitably
presents the opportunities and risks of future development.
kpmg ag
Wirtschaftsprüfungsgesellschaft
Alfons Maurer
German Public Auditor
Sebastian Kiesewetter
German Public Auditor
We have audited the consolidated financial statements prepared
by GfK se, Nuremberg, comprising the consolidated income
statement, the consolidated statement of comprehensive income,
the consolidated balance sheet, the consolidated cash flow
statement, the consolidated equity change statement, and the notes
to the consolidated financial statements, together with the Group
management report for the business year from 1 January 2010 to
31 December 2010. The preparation of the consolidated financial
statements and the Group management report in accordance with
ifrs, as adopted by the eu, and the additional requirements of
German commercial law pursuant to § 315a section 1 hgb (and
supplementary provisions of the articles of incorporation) are the
responsibility of the parent company‘s management. Our responsibility is to express an opinion on the consolidated financial statements and on the Group management report based on our audit.
forward > >
GfK_157
158_GfK
< < back
Additional
information
5-year overview
160
Glossary of financial terminology
164
Glossary of specialist GfK terms
166
List of GfK companies mentioned
170
Index
Acknowledgements
V
VI
VII
forward > >
GfK_159
ADDITIONAL INFORMATION
Financial calendar
5-year
year overview
2006 to 2010 according to ifrs
Key indicators – income statement
eur million/percent
Sales
Change in % on prior year
Personnel expenses
Depreciation/amortization1)
Margin in %
ebitda
2008
2009
2010
1,112.2
1,162.1
1,220.4
1,164.5
1,294.2
+ 18.7
+ 4.5
+ 5.0
– 4.6
+ 11.1
442.3
465.2
494.3
510.5
550.7
+ 18.5
+ 5.2
+ 6.3
+ 3.3
+ 7.9
51.2
59.7
59.2
66.3
55.1
+ 14.8
+ 16.6
– 0.8
+ 11.9
– 16.8
150.5
157.6
158.7
147.2
185.0
+ 20.3
+ 4.7
+ 0.7
– 7.3
+ 25.7
13.5
13.6
13.0
12.6
14.3
173.1
188.4
192.0
159.1
195.7
+ 23.0
+ 12.8
+ 8.8
+ 1.9
– 17.2
15.6
16.2
15.7
13.7
15.1
Operating income
118.5
125.6
128.9
88.9
136.7
+ 46.9
+ 6.0
+ 2.6
– 31.0
+ 53.8
10.7
10.8
10.6
7.6
10.6
3.4
3.0
3.9
3.9
3.9
– 87.9
– 10.8
+ 28.2
– 0.6
– 1.5
121.9
128.6
132.8
92.8
140.6
+ 11.9
+ 5.5
+ 3.2
– 30.1
+ 51.5
11.0
11.1
10.9
8.0
10.9
93.5
104.2
113.0
75.5
124.8
+ 1.4
+ 11.5
+ 8.4
– 33.2
+ 65.3
71.2
78.9
82.0
60.5
84.0
+ 5.5
+ 10.7
+ 4.0
– 26.2
+ 38.8
23.8
24.3
27.4
19.8
32.7
Margin in %
Income from participations
ebit
Margin in %
Tax ratio in %
5-year overview
1) Tangible and intangible assets
2) Adjusted by the effects of the settlement with ubm
2007 2)
Margin in %
160_GfK
2006
< < back
5-year
year overview
Key indicators – balance sheet
eur million/percent
Non-current assets
Current assets
Asset structure in %
Investments
2006
2007
2008
2009
2010
1,120.8
1,088.3
1,085.0
1,157.9
1,232.2
+ 2.1
– 2.9
– 0.3
+ 6.7
+ 6.4
375.4
382.5
361.6
363.5
417.7
– 4.0
+ 1.9
– 5.5
+ 0.5
+ 14.9
298.6
284.5
300.1
318.5
295.0
56.6
73.7
101.5
106.7
89.6
– 91.6
+ 30.2
+ 37.7
+ 5.1
– 16.0
thereof in tangible assets1)
42.6
49.2
50.5
49.0
48.6
+ 20.2
+ 15.7
+ 2.5
– 3.0
– 0.8
14.0
24.5
51.0
57.7
41.0
– 97.8
+ 74.1
+ 108.6
+ 13.1
– 28.9
466.4
509.6
500.3
553.0
677.5
+ 9.4
+ 9.3
– 1.8
+ 10.5
+ 22.5
1,029.8
961.2
946.3
968.4
972.4
– 3.1
– 6.7
– 1.5
+ 2.3
+ 0.4
1,496.2
1,470.8
1,446.6
1,521.4
1,649.9
+ 0.5
– 1.7
– 1.6
+ 5.2
+ 8.4
Net debt
– 542.5
+ 3.7
– 472.9
– 12.8
– 481.5
+ 1.8
– 499.8
+ 3.8
– 428.5
– 14.3
thereof in financial assets
Equity
Borrowings
Total assets
1) Tangible and intangible assets
Key indicators – cash flow statement
eur million/percent
2006
2007
2008
2009
2010
Cash flow from operating activity
110.3
168.1
145.8
134.7
172.0
+ 27.7
– 14.5
+ 52.5
– 13.3
– 7.7
Cash flow from investing activity
– 48.0
– 64.6
– 100.4
– 104.4
– 86.2
– 92.6
+ 34.6
+ 55.4
+ 4.0
– 17.4
Cash flow from financing activity
– 90.9
– 112.9
– 46.4
– 26.2
– 76.9
– 116.5
+ 24.3
– 58.9
– 43.5
+ 193.4
67.7
118.9
95.4
85.7
123.4
– 27.6
+ 75.6
– 19.8
– 10.2
+ 44.0
5-year overview
forward > >
GfK_161
Free cash flow
5-year
year overview
Key indicator – profitability
2006
2007 2)
2008
2009
2010
ROCE in %
12.0
12.5
12.8
9.7
14.1
2006
2007
2008
2009
2010
Key indicators – company valuation
Earnings per share in eur
1)
1.86
1.98
2.04
1.42
1.99
Adjusted earnings per share in eur1)
2.77
2.88
2.87
3.04
3.33
Free cash flow per share in eur1)
1.93
3.33
2.66
2.38
3.43
116.3
92.8
96.2
90.4
63.2
Net debt in relation to
equity in % (gearing)
ebit in %
444.8
367.5
362.6
538.6
304.8
ebitda in %
313.3
251.0
250.8
314.2
218.9
free cash flow in %
347.2
801.2
397.8
505.0
583.4
Dividend per share in eur
0.36
0.45
0.46
0.30
0.48
Total dividend in eur million
12.8
16.1
16.5
10.8
17.4
Dividend yield in %
Year-end share price in eur1)
Weighted number of shares (in thousands)
5-year overview
1) Adjusted for capital increase
2) Adjusted by the effects of the settlement with ubm
162_GfK
< < back
1.10
1.64
2.09
1.24
1.28
32.82
27.50
22.02
24.13
37.60
35,156
35,682
35,884
35,947
35,967
5-year
year overview
Sales by sectors and regions1)
eur million/percent
2006
2007
2008
2009
2010
755.2
773.0
782.8
709.2
785.6
+ 10.8
Sectors
Custom Research
Media
+ 21.0
+ 2.4
+ 1.3
– 9.4
235.4
260.8
304.1
325.8
370.8
+ 12.3
+ 10.8
+ 16.6
+ 7.2
+ 13.8
117.0
124.5
130.1
126.4
133.1
+ 21.7
+ 6.4
+ 4.5
– 2.9
+ 5.3
269.6
290.3
316.1
301.3
340.8
+ 6.3
+ 7.7
+ 8.9
– 4.7
+ 13.1
457.7
480.5
487.2
458.1
483.0
+ 5.0
+ 1.4
– 6.0
+ 5.4
Regions
Germany
Western and Southern Europe
290.3
+ 12.7
Northern Europe
North America
167.4
+ 31.6
64.4
73.1
87.2
71.7
89.7
+ 22.4
+ 13.4
+ 19.3
– 17.8
+ 25.2
257.3
240.7
219.7
207.2
219.3
– 6.5
– 8.7
– 5.7
+ 5.9
26.7
35.5
39.4
54.9
+ 12.9
+ 33.0
+ 11.0
+ 39.5
Latin America
23.7
America
280.9
+ 35.7
39.6
50.8
74.8
86.9
106.5
+ 0.4
+ 28.4
+ 47.3
+ 16.1
+ 22.5
7,903
9,070
9,692
10,058
10,546
+ 5.1
+ 14.8
+ 6.9
+ 3.8
+ 4.9
forward > >
GfK_163
Number of employees
at year-end
5-year overview
1) Data taken from the Management Information System
Glossary of financial terminology
A
Adjusted earnings per share
The > Consolidated total income attributable to
the equity holders of the parent company plus
the > Highlighted items divided by the weighted
average number of shares.
—
Adjusted operating income does not take into
account > Highlighted items. The management
uses this financial indicator in the Group-wide
management of GfK’s operating business.
—
Affiliated companies
Companies which are controlled by the parent. As
a rule, the parent holds the majority of the voting
rights and capital of the company.
—
Assets
Resources that are at the disposal of the company
as a result of events in the past and which should
represent an economic benefit in future.
—
Asset structure
The asset structure describes the relationship
between non-current assets and current assets.
It is determined on the basis of the ratio of noncurrent assets to current assets multiplied by 100.
—
—
Cost of sales
Total of all types of operating costs which can be
directly allocated to clients’ orders. These include,
in particular, costs for external data procurement,
costs for interviewees and interviewers.
—
Cost of sales accounting
Form of income statement which shows the income
achieved in the market during the accounting
period. Opposite: total cost accounting. Here the
total operating income for the period is shown,
whereby the sales and changes in inventories
are shown against the total cost. Both forms of
accounting produce the same income for the
accounting period.
—
Current assets
The total of all short-term receivables, deferrals,
funds, securities and inventories reported on the
assets side of the balance sheet.
—
Current liabilities
The total of all short-term provisions, liabilities
and deferrals reported on the liabilities side of
the balance sheet.
D
Associated companies
Deferred taxes
> Minority participations in companies on whose
business or company policy a decisive, but not
a controlling, influence is exercised. Associated
companies are in principle valued at equity.
Tax assets or liabilities reported in the balance
sheet to equalize the difference between the
tax debt actually assessed and the commercial
tax burden based on the financial reporting
in accordance with > ifrs for the commercial
balance sheet. The basis for determining deferred
taxes is the difference between the value of the
assets and liabilities reported in the balance sheet
in accordance with ifrs and the local tax balance
sheet.
—
B
Borrowings
Total assets less equity.
Dividend yield
C
Cash flow
Balance of funds inflow and outflow affecting
payment.
—
Glossaries
Consolidated total income attributable to the
equity holders of the parent company plus
consolidated total income attributable to minority
interests; also referred to as consolidated total
income before minority interests.
164_GfK
< < back
Dividend per share in relation to the annual
closing price.
E
ebit
Abbreviation for earnings before interest and taxes,
calculated as > Operating income plus income from
associates plus > Other income from participations.
—
ebitda
Earnings before interest, taxes, depreciation and
amortization calculated as > ebit plus depreciation
and amortization charges.
—
Equity
Equity comprises funds from the equity holders
available to the company as capital contributions
and/or deposits and retained profit as well as equity
attributable to minority interests.
—
Equity ratio
Balance sheet equity in relation to total assets.
The higher the indicator, the lower the level of
indebtedness.
F
Total assets less equity.
—
Free cash flow
Cash flow from operating activity less capex.
G
Goodwill
Intangible business asset that represents the
value of the intangible assets of a company at the
time of its acquisition that are not separately
capitalizable, such as the expertise of staff. This is
calculated as the purchase price of the company
less revalued equity on a pro rata basis.
—
Sales less > Cost of sales.
H
Highlighted items
The costs that are not taken into account in
> Adjusted operating income: expenses and
income connected with restructuring and
corporate transactions, write-ups and amortization on disclosed hidden reserves as part
of the purchase price allocation, share-based
payments and long-term incentives, other income
and expenses, including, in particular, effects
from the valuation of foreign exchange items on
the reporting date.
I
N
P
ias
Net debt
Purchase price allocation
The International Accounting Standards (ias)
were developed and published by the iasc from
1973 to 2000. Unless specific standards have
been revoked, they are still valid in full today.
Since the reworking of ias 1 in 2003, the “old”
ias have been collectively referred to as ifrs.
Any existing standards are developed further as
ias and all new standards are known as > ifrs.
—
Liquid funds and securities less pension liabilities
and financial liabilities.
—
Allocation of the purchase price when companies
are acquired to assets and liabilities not previously
reported or not in such amounts.
Impairment
Write-down of assets in addition to scheduled
amortization/depreciation, or in place of scheduled
amortization/depreciation in the case of intangible
assets with an indefinite useful life. Impairment
tests are used to establish whether the carrying
value of assets is higher than the recoverable
amount for the asset. The asset is written down
to the recoverable value as necessary.
—
Income
> Adjusted operating income.
—
> ebit plus > Other financial income less > Other
financial expenses.
Total of all long-term provisions, liabilities,
deferred tax liabilities and other deferrals reported
on the liabilities side of the balance sheet.
O
Majority participations
> Affiliated companies.
—
Margin
A margin represents the relationship of an indicator
(> Income, > ebit, > ebitda, etc.) to sales.
—
Minority participations
Generic term for > Associated companies and
> Other participations. The participation quota is
below 50 %.
roce
Abbreviation of return on capital employed. The
adjusted ebit is divided by the average invested
capital. The adjusted ebit is obtained by adjusting
the > ebit for the currency result and expenditure
on the stock option plan and share-based payments,
as well as one-off effects. To calculate the average
invested capital, the total assets figure is adjusted
by non interest-bearing liabilities.
Operating income
Gross income from sales less > Selling and general
administrative expenses plus > Other operating
income less > Other operating expenses.
—
S
Other financial expenses
Operating costs, not directly aligned to individual
client orders, such as general marketing or
accounting measures.
—
Financial expenses that do not result directly from
participating interests. These are calculated as
interest expense plus other financial expenses.
—
Other financial income
Financial income that does not result directly
from participating interests. This is calculated
as interest income plus other financial income.
—
M
R
Income from > Affiliated companies not included
in the scope of consolidation and > Other participations as well as expenses and income from
write-ups or write-downs of book values of investments plus gains/losses from the disposal of
participations.
—
Sector
GfK manages its business via the three sectors
Custom Research, Retail and Technology and
Media. The three sectors emerged from the five
divisions Custom Research, Retail and Technology,
Consumer Tracking, Media and HealthCare,
which existed until the end of 2007.
T
Tax ratio
Tax on income from operating activity in relation to
> Income from ongoing business activity.
Expenses in connection with ongoing business
activity, excluding financial expenses, not
attributable to > Cost of sales or > Selling and
general administrative expenses. Examples are
> Impairment, losses from the disposal of fixed
assets or exchange losses.
—
Glossaries
The International Financial Reporting Standards
(ifrs) are accounting principles developed
and published by the iasb. In addition to the
actual ifrs, the > ias that are still valid and the
interpretations of the ifric and sic are grouped
under the ifrs.
—
Assets that benefit business operations in the
longer term. In addition to intangible assets,
tangible assets and investments, these include
deferred tax assets and other non-current
receivables and deferrals.
—
Income from ongoing business activity, excluding
financial income, which does not represent sales.
Examples are profits on the disposal of fixed
assets and exchange gains.
—
Companies in which a participation is held but on
whose business policy no decisive influence is
exercised. The participation quota is below 20%.
forward > >
GfK_165
ifrs
Non-current assets
Glossary of specialist G f K terms
A
D
F
Ad hoc research
Deep Packet Inspection (dpi)
5 Star Incentive Program
Empirical research carried out on a one-off basis
and relating to a specific question, which is used
as a resource for marketing decision-making.
> Custom Research.
Approach which monitors and filters data packages. Applied in the > Retail and Technology sector
as part of the > GfK nis tool for analyzing the
internet surfing behavior of mobile phone users.
—
Appreciation panel
—
Dialogatore
Part of the remuneration system for the GfK Group’s
management. The amount of these partial remuneration payments varies depending on the share price
trend and the key figures in the consolidated
accounts.
Evaluation panel for tv, radio and the internet.
—
Tool developed by GfK Eurisko, Italy, which makes
it possible to survey panel participants via gprs
in real time. The device is equipped with a touchscreen, camera, scanner, microphone, loudspeaker
and straightforward user interface.
Asia and the Pacific
Region of the GfK Group.
C
—
Conjoint analysis
Multivariate analysis method used to determine
complex patterns of consumer preference.
—
Dialogic introspection
Method in which participants engage with the topic
or stimulus for far longer and more intensively than
is the case with a traditional > Group discussion.
Participants observe their own reactions and feelings, and subsequently note these down without
being questioned or influenced. This process produces in-depth, undistorted and diverse insights
into the experiences of consumers.
—
Consumer electronics
Also known as brown goods, which comprise
products such as tv sets, dvd players, games
consoles and mp3 players. > Retail and Technology.
E
—
Consumer panel
Economic expectations
> Sample of households which provide regular
information on their purchases. > Panel.
—
Consumer tracking
Survey of consumer households and individuals
which is repeated on a regular basis. > Household
panel, > Panel, > Tracking.
—
Content analysis
Content analysis is a fundamental component of
> Qualitative market research. Using a variety of
techniques, written content from a qualitative
survey is analyzed to determine its meaning.
—
Cross-media campaign
Integrated, intermedia advertising campaign.
—
Custom Research
Glossaries
Custom Research is one of GfK’s sectors. > Ad hoc
research.
166_GfK
< < back
Indicator of the > GfK Consumer Climate. This index
is based on the following question to consumers:
“How do you think the general economic situation
will develop in the next twelve months?” (improve
– stagnate – deteriorate). > Propensity to buy,
> Income expectations.
—
esomar
World organization for market research.
—
Face-to-face interview
Direct interview, conducted orally. Respondents
do not see the questionnaire, but are asked the
relevant questions by the interviewer.
—
Fact-based consultancy
Strategic client consulting based on figures. One of
the five aims of GfK’s corporate strategy.
—
Focus group
A focus group comprises a number of people with
common interests or other shared characteristics
which are relevant for the research area. The
test subjects, who have never previously met,
discuss a particular topic under the supervision
of a moderator.
—
Fundamental research
Market research is based on the findings of many
different sciences, including psychology, sociology
and statistics. Fundamental research reviews those
findings and establishes by independent investigation whether and under which circumstances these
findings can be applied in market research.
G
Germany
—
GfK Automotive Pricing Tool
This tool is a further development of traditional
pricing approaches and is specifically tailored to
the special features of the automotive market. It
comprises five modules, which cover the different
areas of pricing.
—
GfK Brand Buzz Miner dx
—
GfK Network Intelligence Solution (GfK nis)
—
GfK TechTest
Approach which allows GfK to analyze consumers’ comments and opinions in online social networks with regard to brand image and consumer
purchasing behavior.
Research methodology based on the analysis of
information that is transmitted to mobile networks
via internet protocols. This technology makes it
possible to monitor mobile internet behavior and
exposure to advertising campaigns in real time.
> GfK StarTrack, > GfK StarTrack Explorer.
GfK instrument for comparing new concepts or
ideas with similar concepts for existing products
prior to product development and analyzing the
planned product’s chances of success.
—
GfK RegioGraph Analysis
GfK Custom Research uses the GfK Trust Index
to determine the levels of trust that citizens in
16 European countries and the usa have in the
following 20 professional groups and organizations:
doctors, bank employees, civil servants, the fire
service, trade union representatives, journalists,
the clergy, teachers, marketing experts, market
researchers, the armed forces, the police,
politicians, postal workers, lawyers, judges, top
managers, environmental protection organizations,
advertising experts and charities.
—
GfK Consumer Climate
Indicator that is calculated on the basis of the
findings of a monthly consumer survey carried
out on behalf of the European Commission. It
gives an insight into the level and general trends
of private consumption in specific countries.
> Economic expectations, > Income expectations,
> Propensity to buy.
—
GfK ExposureEffects.dx
GfK tool that allows clients to evaluate online
campaigns and compare their current exposure
within a target group with the media plan.
—
GfK Inside Journey
GfK method applied within a > Focus group which
is based on > Dialogic introspection and generates
in-depth, undistorted and diverse insights into the
experiences of consumers. > Group discussion.
—
GfK Linear Matching
GfK method for weighting one survey group, the
“experimental group”, to correspond completely
with another group, the “control group”, for all
defined variables.
—
GfK MarketObsurvey.dx
Tool which enables GfK to analyze the online
behavior of specific target groups by combining
both qualitative and quantitative data derived
from observation and surveys.
—
GfK Media Efficiency Panel
Instrument for analyzing the synergy effects of
cross-media advertising on actual purchasing
behavior.
Basic version of GfK GeoMarketing software
which allows company and market data to be
depicted and analyzed on digital maps.
> GfK RegioGraph Planning,
> GfK RegioGraph Strategy.
—
GfK RegioGraph Planning
In addition to the presentation and analysis functions of the basic version, this GfK GeoMarketing
software also offers tools for location and regional
planning. > GfK RegioGraph Analysis,
> GfK RegioGraph Strategy.
—
GfK Web Efficiency Panel
> GfK Media Efficiency Panel.
—
GfK RegioGraph Strategy
—
GfK Web Value
GeoMarketing software solution that enables
companies in the fields of retail and industry to
evaluate comprehensive > Potential data, at both
regional and even more localized levels, on digital
maps. > GfK RegioGraph Analysis, > GfK RegioGraph Planning.
GfK tool that measures the reaches of around
20,000 domains and also provides detailed
analyses for more than 3,000 domains.
—
GfK roi Evaluator
GfK method that enables a marketing campaign to
be evaluated in the > Test market GfK MarketingLab® prior to implementation at national level.
The analysis provides clients with precise information on the current return on investment (roi) of
each individual marketing activity.
—
GfK SiteObsurvey.dx
GfK tool that combines the monitoring of natural
website surfing behavior with targeted satisfaction surveys in order to analyze the strengths and
weaknesses of an online presence.
—
GfK StarTrack
SysTem to Analyze and Report on TRACKing data.
it platform used to produce and evaluate data in
the > Retail and Technology sector.
—
GfK StarTrack Explorer
Online portal of the Retail and Technology sector,
which allows customers to create reports online in
a globally standardized format and great analytical
depth, tailored to their individual requirements.
—
GfK Web Value Index
GfK index that represents a website’s usage
intensity as a single figure.
—
Global key account management
Selected GfK employees who manage global
corporate client accounts in the > Custom
Research sector.
—
Group discussion
A group of six to twelve participants discusses a
particular topic under the supervision of one or
more moderators. The objective is to collate
information on collective attitudes, opinions and
judgments. If possible, the moderators should
direct the conversation so that all participants
are given the opportunity to voice their opinions.
The group discussion allows the process of forming opinions to be observed and uses the creative
potential of respondents. This provides a wellfounded insight into the psychological processes
through which consumers perceive and evaluate
product concepts and advertising measures. The
discussions are recorded on tape or video, or by
a secretary, and evaluated using
> Content analysis, for example. > Focus group.
forward > >
Glossaries
Tool that allows GfK to analyze the online information exchange between consumers about different
brands.
—
GfK Trust Index
GfK_167
—
GfK Ceres
Glossary of specialist GfK terms
H
M
P
Household panel
Market segmentation
Panel
Division of an overall market into sub-markets
using different categories. Segmentation can
be by product type, price class, geographic
demography or psychological and socio-economic
lifestyle features and value categories of consumers.
A survey of individuals, households, companies
etc. to obtain data on a single subject at regular
intervals over a longer period, using the same
> Sample and carried out using the same methods
each time. > Consumer tracking, > Household
panel, > tv panel, > Tracking.
Representative sample of households which report
regularly on their purchases.
I
Income expectations
Indicator of the > GfK Consumer Climate.
This index is based on the following question
to consumers: “How do you think the financial
situation of your household will develop in the
next twelve months?” (improve – stagnate –
deteriorate). > Economic expectations,
> Propensity to buy.
K
kes
Knowledge Exchange Solution. GfK initiative on
global knowledge sharing between employees.
L
Latin America
—
Media
Media is one of GfK’s sectors. It provides
information services on the reach, intensity and
nature of media usage and acceptance.
> tv audience research, > tv panel,
> Media research, > Reach research.
—
MediaWatch
An electronic metering device incorporated into
a wristwatch, used to measure consumption of
various forms of media. > Media,
> Media research, > Reach research.
—
Media research
Systematic, empirical research used as a basis for
decision making by media companies and their
advertising clients. > Media, > tv audience
research, > Reach, > Reach research.
N
North America
—
Potential data
Detailed market data, for example GfK Purchasing
Power, which incorporates all municipalities and
postcode areas of Germany. The data provides a
regional evaluation of sales potential and localization of target groups.
—
Propensity to buy
Indicator of the > GfK Consumer Climate. Consumers’ inclination to make major purchases in
the foreseeable future. The propensity to buy is
one of the indicators used in the GfK Consumer
Climate study, and is based on the following question to consumers: “Do you think that it is advisable to make major purchases at the moment?”
> Economic expectations, > Income expectations.
Q
Qualitative market research
Surveys conducted using exploratory, unstructured
conversational interview and observation techniques
and evaluated interpretatively.
—
Quantitative market research
O
Online research
Glossaries
Surveying of individuals and other survey units
via the internet.
168_GfK
< < back
Surveys conducted using standardized interview
and observation techniques and analyzed using
statistical methods and it platforms.
R
T
U
Radio research
Test market
Universal Meter System (ums)
Monitoring the listening habits of radio
audiences. > Media, > MediaWatch.
Largely self-contained sub-market, in which a new
product is tested in a reality-based situation, e.g. a
superstore specifically equipped for this purpose
or in a region that is representative of a whole
country. GfK offers test markets in Germany and
France.
Media measuring instrument that combines
different measuring technologies in a central
instrument and records all electronic types of
media consumption.
—
Reach
The percentage of the total population or a
specific target group reached by a medium.
A central concept in media planning and
> Media research. > tv panel, > Reach research.
—
The Survey of the American Consumer
—
Reach research
Survey of magazine readership ratings in the usa
which is conducted twice a year.
The continuous recording of media usage. Part of
> Media research. > Media, > Reach.
—
Tracking
—
Surveys of individuals, households and
companies, repeated at regular intervals and
using the same interview method each time.
Unlike a > Panel, the data is not necessarily
collected from the same sources each time, but
the structure of the sample is the same in each
case. > Sample, > Consumer tracking.
Retail and Technology is one of GfK’s sectors.
> Retail panel.
—
Retail panel/research
Regular surveying of sales, product categories
and products via a representative sample of
different types of retail outlet and sales channels.
> Retail and Technology, > Tracking.
S
Sample
The observation data and/or survey units which
are selected from all of the units and included
in a specific survey. > Panel.
W
—
tv audience research
tv audience research is used to determine
audience share. > Media, > Media research,
> Reach, > tv panel.
—
tv panel
A representative group of households whose tv
viewing is continuously recorded via tv meters
and used as a basis for determining audience
share and ratings. > tv audience research,
> Media, > Panel, > Reach.
—
Segmentation
> Market segmentation.
—
Single-source approach
Method that allows questions on various topic
areas to be answered, e.g. information on
purchase behavior and media consumption, in
one > Panel. > GfK Media Efficiency Panel.
—
Storyboard
Illustrative visualization of a concept or idea.
—
Syndicated business
forward > >
GfK_169
Glossaries
Market or market player surveys that are not
necessarily commissioned by a client or tailored
to suit client requirements, and which are offered
on the market without client-specific adaptation.
Syndicated surveys can be carried out on a oneoff or repeated basis, without the need to conform
to the strict limitations of a panel.
List of G f K COMPANIES MENTIONED
Adimark
GfK isl Custom Research France
GfK nop Media
Adimark s.a., Providencia, Santiago, Chile
gfk isl, custom research france sas,
GfK nop Limited, Media division,
London, uk
GfK iss
GfK Panel Services
GfK se, GfK Integrated Software Services division,
Nuremberg, Germany
GfK se, Panel Services division, Nuremberg,
Germany
GfK Kleiman Sygnos
GfK Panel Services Benelux
GfK Kleiman Sygnos s.a., Buenos Aires, Argentina
GfK Panelservices Benelux b.v., Dongen, Netherlands
GfK Asia Pte Ltd., Singapore, Singapore
GfK Kynetec
GfK Retail and Technology Deutschland
GfK Audience Research Bulgaria
GfK Kynetec Group Limited, St Peter Port,
Guernsey, uk
GfK Retail and Technology GmbH, Nuremberg,
Germany
Adimark Investigaciones de Mercado Ltda.,
Providencia, Santiago, Chile
Server s.a., Providencia, Santiago, Chile
GeoAdimark s.a., Providencia, Santiago, Chile
Collect Investigaciones de Mercado s.a.,
Providencia, Santiago, Chile
GfK Asia
GfK Audience Research Bulgaria ag, Sofia, Bulgaria
GfK Austria
GfK Austria GmbH, Vienna, Austria
GfK Kynetec Limited, Bristol, uk
Doane Marketing Research, Inc., Saint Louis,
Missouri, usa
ǉ, Poland
GfK Kynetec Poland, Poznaǉ
GfK cr Group usa
GfK Custom Research, llc, New York, New York, usa
GfK Animal Healthcare Limited,
West Byfleet, Surrey, uk
GfK Holding, Inc., Wilmington, Delaware, usa
GfK Kynetec France sas, Saint Aubin, France
GfK Custom Research Baltic
GfK Malta Group
GfK Custom Research Baltic, Riga, Latvia
GfK Malta Holding Limited, Portomaso, Malta
GfK Retail and Technology East Africa
GfK Retail and Technology East Africa Limited,
Nairobi, Kenya
GfK Retail and Technology Italia
GfK Retail and Technology Italia S.r.l., Milan, Italy
GfK Retail and Technology uk
GfK Retail and Technology uk Ltd., West Byfleet,
Surrey, uk
GfK Malta Services Limited, Portomaso, Malta
GfK Custom Research Beijing
GfK Custom Research Beijing Co., Ltd., Beijing,
China
GfK Significant
GfK Marketing Sciences
Significant GfK bvba, Heverlee, Belgium
GfK se, GfK Marketing Sciences division,
Nuremberg, Germany
GfK Switzerland
GfK Custom Research France
gfk custom research france sarl,
GfK Mediamark Research & Intelligence
GfK Mediamark Research & Intelligence, llc,
New York, New York, usa
GfK Custom Research North America
GfK Custom Research, llc, New York,
New York, usa
GfK-memrb Marketing Services
GfK-memrb Marketing Services Limited, Nicosia,
Cyprus
GfK Data Services
GfK se, GfK Data Services division, Nuremberg,
Germany
GfK Methoden- und Produktentwicklung
GfK se, GfK Methoden- und Produktentwicklung
division, Nuremberg, Germany
GfK Eurisko
GfK Eurisko S.r.l., Milan, Italy
GfK Middle East
Gfk Middle East fz-llc, Dubai, United Arab Emirates
List of GfK companies
GfK Fernsehforschung
GfK se, Fernsehforschung division, Nuremberg,
Germany
GfK Middle East cr Holding
GfK Middle East cr Holding GmbH, Nuremberg,
Germany
GfK GeoMarketing
GfK GeoMarketing GmbH, Bruchsal, Germany
GfK Mode
GfK Mode Pvt Ltd, Kolkata, India
GfK Group Services
GfK se, GfK Group Services division, Nuremberg,
Germany
GfK isl
GFK isl sas, Issy les Moulineaux, France
GfK mri
GfK Mediamark Research & Intelligence, llc,
New York, New York, usa
GfK nop
GfK nop Limited, London, uk
170_GfK
< < back
GfK Switzerland ag, Hergiswil, Switzerland
GfK Verein (GfK Association)
GfK-Nürnberg, Gesellschaft für Konsum-, Marktund Absatzforschung e.V., Nuremberg, Germany
G-Plus
Gplus GmbH, Nuremberg, Germany
Intercampus
intercampus-recolha, tratamento e distribuição
de informação, Limitada, Lisbon, Portugal
Intomart GfK
Intomart GfK b.v., Hilversum, Netherlands
nurago
nurago GmbH, Hanover, Germany
Shopping Brasil
Shopping Brasil Tecnologia da Informação Ltda,
Porto Alegre, Brazil
SirValUse
SirValUse Consulting GmbH, Hamburg, Germany
Watch Media (Cyprus)
Watch Media (Cyprus) ltd, Nicosia, Cyprus
PROVISIONAL KEY DATES
IN THE FINANCIAL CALENDAR
Dates for 2011
Dates for 2012
March 31, 2011
March 12, 2012
Accounts press conference, Nuremberg
Accounts press conference, Nuremberg
March 31, 2011
May 15, 2012
Analysts’ conference, Frankfurt am Main
Annual General Meeting, Fürth
May 16, 2011
May 15, 2012
Interim quarterly report as at March 31
Interim quarterly report as at March 311)
May 26, 2011
August 14, 2012
Annual General Meeting, Fürth
Interim half-year report as at June 301)
August 15, 2011
November 14, 2012
Interim half-year report as at June 301)
Interim nine-month report as at September 301)
1)
November 14, 2011
Interim nine-month report as at September 301)
1) Publication is scheduled for before the start of the trading season
V
Index
111ff. Accounting and
valuation methods
75f., 80f., 82ff. Acquisitions
74 Adjusted operating income
see Income
3, 11, 72, 80f., Asia and the Pacific
82, 84, 86
114, 161 Assets
114 – intangible
111, 119, 164 Associated companies
106 Balance sheet
– Notes to the accounts
161 – Total assets
12, 75, 80 biss
Cash flow
107, 161 – from financing activity
IV, 71, 107, 161 – from ongoing business activity
107, 161 – from investment activity
107, 118, 142 Cash flow statement
11, 80f., 82f., 163 Central and Eastern Europe
Consolidated
103ff. – financial statements
IV, 76, 104f., 107 – income
119 Consolidation
166 Consumer Tracking
93 Corporate Communications
and Marketing
18ff. Corporate Governance
114, 125 Corporate value/goodwill
34, 54, 69f., 82, 94f., Custom Research
163, 166
107,121 Deferred taxes
IV, 30, 162 Dividend
30 Dividend yield
75, 104, 160, 164 ebit
IV, 75, 160, 164 ebitda
III, IV, 12, 91, 163 Employees
93 Environment
106, 118f., 129, 169 Equity
77, 164 – ratio
115, 133 Financial instruments
118 Financial liabilities
113 5 Star Incentive
77, 162 Gearing
72, 60f., 82f., 163 Germany
91f. Human Resources
Income
IV, 104, 113, 160 – from ongoing business activity
104, 107, 123, 162 – per share
see Shares
– operating
see Operating income
VI
75, 112, 160, 162 Income from participations
165 – Other
104, 111 Income statement
113 Income tax
77, 161 Investments
11, 73, 80ff., 163 Latin America
126 Leasing
125, 161 Liabilities
10ff., 14f., 147, 149 Management Board
IV, 79f.,160 Margin
44, 79, 81, 89, Media
163, 168
77, 162 Net debt
11, 73, 80ff., 163 North America
IV, 75, 112, 160 Operating income
see Income
94ff.. Opportunities and risks
92 Organization and administration
Profit for the year
see Consolidated income
144 Proforma statements (ifrs 3)
118, 130f. Provisions
88 Purchasing
86f. Research and Development
60, 79ff., 89, 163, Retail and Technology
169
162 roce
IV, 73, 79, 111, 160 Sales
143f. Segment reporting
150ff. Shareholdings
27, 104 Shares
IV, 31, 74, 107 Income
123, 162
31 – Key indicators
27 – Share price performance
29 Shareholder structure
Staff
see Employees
108f. Statement of changes in equity
4ff., 147, 148 Supervisory Board
115, 126 Tangible assets
Taxes
see Income tax
IV, 160 Tax ratio
81 tv research
73, 80f., 82ff., 163 Western Europe, the Middle East
and Africa
Yield
see Margin
ACKNOWLEDGEMENTS
The present Annual Report is available in German and
English. Both versions and supplementary press information are available for download from www.gfk.com.
Annual reports, interim reports and
press information are available from:
Corporate Communications
public.relations@gfk.com
investor.relations@gfk.com
Contacts
Bernhard Wolf
Global Head of Corporate Communications
Tel. + 49 911 395 – 2012
Fax + 49 911 395 – 4075
bernhard.wolf@gfk.com
Marion Eisenblätter
Public Relations
Tel. + 49 911 395 – 2645
Fax + 49 911 395 – 4041
marion.eisenblaetter@gfk.com
Gabo
Gabo is considered to be one of the most important photographers in Germany today. She mainly photographs
well-known personalities from the worlds of politics, sport,
film and tv. Born in Hamburg, she first became interested
in photography as a teenager, and initially worked as a
photographic model for ten years before moving behind
the camera in 1985. In addition to her work with both
German and international personalities and in the fields of
fashion and advertising, she is also a film director.
Publisher
GfK se
Nordwestring 101
90419 Nuremberg, Germany
http://www.gfk.com
Editorial support services
Abacus Presse & pr, Jo Clahsen
Translation
arb limited, London
Design
Scheufele Hesse Eigler
Kommunikationsagentur GmbH,
Frankfurt am Main, Germany
Photography
Gabo: pages 10, 14 – 15
Andreas Chudowski: pages 4, 34, 37, 39, 40–41, 44, 46,
47, 48, 51, 52, 53, 54, 56, 58, 59, 60, 62, 65, 66, 68, 69
VII
Andreas Chudowski
Andreas Chudowski was born on the Baltic coast in
1983. After graduating from high school, he first moved
to Dusseldorf and later to Berlin, learning the art of
photography as an assistant in both cities. Several
years later he took the plunge and began working as a
freelancer, and has since achieved success as a photographer in the fields of portraits/people and advertising.
In his freelance work he often focuses on topics and
people relating to the internet, its increased significance
for society and the progress with which it is associated.
Gff k . G row th f ro m k n owle dg e

Annual Report 2010

Transcription

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