31. MÄRZ 2013
Dear shareholder,
Macroeconomic trends have not significantly improved in the first three months of 2013. The continuing debt crisis in the euro zone with ever new crisis countries emerging, related austerity measures to reduce national debt and a weak overall economic development all have a negative impact on the individual economies. Consequently, unem-ployment rates in the countries affected by the crisis are reaching record highs.
Some Western European countries continued to show very weak or even negative economic growth. The cold winter with a lot of snow also had a detrimental effect on the gen-eral economic trend. Consequently, this sevgen-eral negative parameters had a negative impact on the performance of the Einhell Group.
Condensed Group Management Report of
Einhell Germany AG
General economic conditions
According to the leading indicator issued by the Organisa-tion for Economic Co-operaOrganisa-tion and Development (OECD), growth will accelerate in most of the member states during the coming months. The OECD also expects the long-ailing euro zone to return to growth. The Composite Leading Indicator for March 2013 is at 100.5 points, up from 100.4 points in the previous month. The indicator for the euro zone increased to 100.0 points as against 99.9 points in February 2013. For Germany, the indicator climbed from 99.7 points in the previous month to 99.8 points.
The business climate in the German economy deteriorated more substantially than experts had previously expected. As communicated by the Munich ifo Institute for Economic Research, the business climate index dropped by 0.7 to 106.7 points. This represented the end to four increases in a row.
The German economy is only slowly gaining momentum. The gross domestic product (GDP) exceeded the previous quarter by 0.1% in the first quarter 2013 adjusted for price, seasonal and calendar effects. The long winter also aggra-vated the weak development. In the final quarter of 2012, the German economy took a substantial hit of -0.7% ac-cording to latest calculations.
More and more countries are affected by the debt crisis. In the euro country Cyprus, the crisis took a dramatic turn for the worse. The island republic is reliant on financial aid from the EU safety net. The austerity programme required to this end was adopted with a narrow majority. However, a potential withdrawal from the euro is openly discussed in the country. Cyprus’s dependence on imports and the ex-tremely low availability of currency reserves speak against the exit. Moreover, the value of the new currency (pound) would crash and inflation would boom.
In the crisis country Italy, a government was finally estab-lished after months of political impasse and the related concerns about the euro. The successful formation of a government was received positively by the financial mar-kets. Risks premiums for Italian government bonds fell considerably, the value of the euro and the stock market gained momentum. According to economists, chances are good that Italy will continue its reform policies.
Industrial production in the euro zone has shown a surpris-ingly strong increase in March 2013. Compared to the previous month, production increased by 1.0%. Economists had only expected an increase of 0.5%. Compared to the prior-year period, production fell by 1.7% in March accord-ing to the European statistical authority Eurostat. In the previous month, the decline had still amounted to 3.2%. Industrial production in the crisis country of Portugal showed a very positive development with the strongest increase in industrial production of 5.3%. Slovenia and Ireland suffered severe setbacks in their industrial produc-tion.
Contrary to expectations, incoming orders in German in-dustry increased for the second month in a row. This indi-cates that Europe’s largest economy is returning to a growth path. Incoming orders adjusted for price, calendar and seasonal effects climbed by 2.2% compared to the previous month. Compared to the prior-year period, incoming orders adjusted for working days dropped by 0.4%. Orders from abroad increased by 2.7% in March 2013, orders from the euro zone jumped 4.2%. Domestic demand increased by 1.8%. Consumer goods demand slowed down by 0.7%. The order intake for capital goods increased by 2.0%.
German foreign trade suffered a severe setback in March. According to preliminary data, German exports and imports adjusted for calendar and seasonal effects dropped by 4.2% and 6.9%, respectively, compared to March 2012. Com-pared to February 2013, exports increased by 0.5% in March, while imports climbed 0.8%. Compared to March 2012, exports to EU countries dropped by 5.4% and imports from these countries fell by 3.7%. Exports to third countries dropped by 2.6% year-on-year and imports from third countries fell by 12.8%.
The foreign trade balance closed the month of March with a surplus of 18.8 billion euro.
The long winter hampered the usual spring upturn on the employment market. The official figures published by the German Federal Labour Office stated an unemployment figure for Germany of 3.098 million. This equals a decrease of 58,000 compared to February, but an increase of 70,000 compared to March 2012.
The unemployment rate decreased by 0.1% to 7.3% in March compared to the previous month. In March 2012, the rate had been at 7.2%.
In February 2013, unemployment in the euro zone climbed to a new record high. For the first time since the introduc-tion of the common currency, the unemployment rate reached 12%. In February 2013, the unemployment rate went up to 12.0%. More than 26 million people in the 17 euro countries were without a job, according to the Europe-an statistics authority Eurostat.
The divide between the North and the crisis-ridden South is obvious: With more than 26.0%, Spain and Greece show the highest unemployment rates in the euro zone, followed by Portugal with 17.5%. Austria (4.8%), Germany (5.4%) and Luxembourg (5.5%) feature the lowest unemployment rates.
Consumer price increases in March 2013 were the weakest in years: Compared to 2012, consumer prices only rose by 1.4% according to the Federal statistical office in Wiesba-den. A lower inflation rate was last achieved in December 2010. According to the statistics, this is mainly due to fall-ing prices of mineral oil products.
The harmonised index of consumer prices (HICP) for Ger-many was up 1.8% year-on-year in March 2013 and thus below the 2.0% threshold, which is the significant parame-ter for the ECB’s fiscal policies. Compared to the previous month, the index rose by 0.4%.
The DIY market in Germany showed a slightly declining sales trend in the 2012 financial year, while nearly reaching the strong prior-year level. In 2013, the BHB sector asso-ciation anticipates nominal sales growth ranging between 1.0% and a maximum of 2.0%; the assessment is based on forecasts on the development of the German GDP issued by leading economic research institutes. Positive signals are picked up from the behaviour of consumers at the begin-ning of the year, who started into 2013 on a positive note, according to the GfK consumer research association. As such, private spending in Germany has risen by 1.0% in real terms in 2013, according to the GfK.
Business activities
Einhell Group revenues
From January to March 2013, the Einhell Group earned revenues of EUR 102.1 million (previous year: EUR 90.5 million). This corresponded to a year-on-year increase of EUR 11.6 million and includes kwb revenues totalling EUR 7.3 million.
Sales revenues in the D/A/CH (Germany, Austria, Switzer-land) region increased to EUR 56.0 million (previous year: EUR 49.4 million). The share of D/A/CH region in consoli-dated revenues amounts to 54.9% (previous year: 54.6%). In other Europe, revenues improved to EUR 34.2 million (previous year: EUR 33.3 million). Austria, Turkey and Italy are among the largest sales markets in the euro area. In the Asia region, revenues of EUR 3.6 million were gen-erated (previous year: EUR 2.9 million).
The other countries and South America improved their revenues compared to the previous year with an increase of EUR 3.5 million to EUR 8.3 million (previous year: EUR 4.8 million). This is where the sales contributions of the young Group companies in Australia and South Ameri-ca had a noticeable effect.
Segment development
In the Tools segment, revenues amounted to EUR 58.2 million in the first three months of the 2013 financial year (previous year: EUR 41.7 million). The most significant sales in this segment were generated by products from the compressed air technology, power generation and power tools ranges. The kwb tools products are reported in the Tools segment.
In the Garden & Leisure segment revenue decreased by EUR 4.9 million to EUR 43.9 million (previous year: EUR 48.8 million). Strong sales were mainly generated with products from the lawn and garden care division. Lawn-machines, scarifiers and garden-pumps were the products with particularly strong sales in the quarter.
Earnings development
From January to March 2013, the Einhell Group generated operating earnings of EUR 2.1 million (previous year: EUR 4.2 million). The pre-tax rate of return is 2.0% (previ-ous year: 4.7%).
Consolidated net profit after minority interest amounts to EUR 1.2 million in the first quarter 2013 (previous year: EUR 3.0 million). Earnings per share come out at EUR 0.3 (previous year: EUR 0.8 per share).
Compared to the prior-year period, personnel expenses have increased in both absolute and proportionate terms and amounted to EUR 13.5 million (previous year: EUR 11.6 million). This is driven in particular by the newly acquired and newly founded companies as well as the staff expansion in some of the Group divisions.
The increase in other expenses to EUR 14.6 million (previ-ous year: EUR 12.8 million) corresponds with the revenue increase.
The gross margin is lower in March 2013 on account of promotional measures to accelerate the sale of seasonal products.
Financial costs of EUR -0.04 million are slightly below the prior-year level.
Personnel and social security
On 31 March 2013, the Einhell Group had 1,291 employees worldwide (previous year: 1,130). This equals an increase in staff levels compared to the prior-year period. All in all, headcount was taken up by another 161 employees as against the previous year.
The increase in personnel capacities are mainly due to kwb tools GmbH and KWB-RUS OOO.
The Board of Directors would like to take this opportunity to thank all employees for their personal commitment and excellent work.
Financial and assets position
The most important items in the statements of financial position as of 31 March 2013 and 31 March 2012 are as follows:
03/2013 03/2012 in EUR
million
in EUR million Non-current assets incl. deferred tax assets 36.8 36.5
Inventories 129.3 120.4
Receivables and other assets 135.9 112.2 Cash and cash equivalents 7.0 5.7
Equity 165.3 162.5
Liabilities to banks 81.9 50.2
Investments
In the reporting period, the Einhell Group made invest-ments amounting to EUR 0.7 million (previous year: EUR 0.7 million). Most investments were made in intangi-ble assets and property plant and equipment.
Current assets
Goods inventories increased as against the previous year to EUR 129.3 million (previous year: EUR 120.4 million). Trade receivables are shown after deduction of impairment for bad debts. In this reporting period, they increased by EUR 14.6 million year-on-year to EUR 105.3 million (pre-vious year: EUR 90.7 million) because of the growing turnovers.
Other assets increased compared to the prior-year period to EUR 30.6 million (previous year: EUR 21.5 million).
Group structure
The expansion in the region of South America is continued. Following the establishment of companies in Brazil, Chile
and Argentina, a new company was established in the re-porting period at Columbia which its operational business activity will start probable at 2014.
Investor Relations
On 6 May 2013 Einhell Germany AG took part in the Deutsche Börse Spring Conference in order to talk to ana-lysts and investors. The presentation addressed the figures from the annual report 2012 and an outlook for the planned development of the Group.
Financing
The financial requirements of the Einhell Group are driven in particular by the level of inventories and trade receiva-bles. Stock turnover rates of inventories and the maturities of trade receivables play a major role here and have a sig-nificant impact on the financial requirements.
Einhell is financed through non-current loans from banks with bilateral agreements and holds sufficient unsecured credit lines with several banks.
The Group also keeps a constant eye on the financial mar-kets for financing opportunities in order to secure the finan-cial flexibility of the Einhell Group and limit excessive refinancing risks.
Note to the financial report
The financial report was subjected to neither a review nor an audit pursuant to Section 317 of the German Commer-cial Code (HGB) by the auditors.
Corporate Governance Code
The current Declaration of the Board of Directors and the Supervisory Board of Einhell Germany AG on the German Corporate Governance Code pursuant to section 161 of the Stock Corporation Act (AktG) is permanently available on the Company’s website at www.einhell.com.
Risk report
As part of its international operations, Einhell is subject to numerous risks that are inherent to in all entrepreneurial activities.
The risk management process at Einhell Group is split into two stages. The first stage is the decentralised recognition of risks in subsidiaries and the various departments of Einhell AG by the risk officers appointed by the Board of Directors. They are responsible for risk identification and evaluation. The critical aspect here for the Einhell Group is identification, since no risk planning can be undertaken for risks that have not yet been identified.
The internal control system comprises integrated process controls and internal control systems.
The domestic controlling, investment controlling, finance, Group accounting and legal departments form the internal management system of the Einhell Group. The Einhell Group companies make a forecast in the current financial year to budget the following financial year. Based on dif-ferentiated sales planning, corresponding costs of sales and other costs are budgeted. These projected figures are collat-ed for the Group into a budgetary statement of comprehen-sive income.
The actual figures from the individual companies are pro-cessed on a monthly basis. As a result, a complete consoli-dated statement of comprehensive income is devised that compares the budgeted and actual figures and allows for their analysis. Development of orders, margins etc. is also shown for all companies on a monthly basis. This compari-son is discussed with the members of the Board of Direc-tors and with the managers of the separate divisions and companies. The analysis of the budgeted and actual figures permits corresponding measures to be developed and im-plemented to control these risks.
The internal control system comprises integrated process controls and process-independent controls.
In addition to automated IT process controls, manual con-trols also form an important part of integrated process measures which are, for example, also carried out by the internal audit department. The Supervisory Board, the Group auditors and other audit bodies are involved in carry-ing out process-independent controls within the Einhell Group.
The audit of the consolidated financial statements by the Group auditors in particular is the main process-independent control measure with respect to Group ac-counting processes.
The Einhell Group operates internationally and is thus exposed to market risks from changes to interest rates and exchange rates.
The Group uses derivative financial instruments to manage these risks. The guidelines used for managing the associat-ed risks are implementassociat-ed with the approval of the Board of Directors by a central treasury department working in close cooperation with the Group companies.
In conclusion, there are no risks that endanger the future of the Group as a going concern according to the Board of Directors’ assessment.
Forecast
Global business development
Growth in the individual regions of the world will show a highly mixed picture again in 2013. The International Mon-etary Fund has forecast 3.5% growth for 2013 and 4.1% for 2014, whereby this positive trend will be driven first and foremost by the emerging countries. The largest risks for the global economy are presently posed by the euro zone. According to the IMF, adherence to the measures already taken to control the debt crisis is crucial for the economic outlook.
European growth
The European Commission has once again lowered its growth forecast for the euro zone. The common economic performance by the 17 euro countries is expected to shrink by 0.4% in the current year. Next year, the experts antici-pate the economic performance in the euro states to return to growth again, although they believe the short-term out-look is still fraught with a high degree of uncertainty. Until then, unemployment is set to rise further according to the forecast. It is to reach its peak in the euro zone in the current year, before starting to go down again.
According to the assessment of the IMF, France is facing a slight economic growth decline. For Italy, the Monetary Fund has forecast another slight decrease in gross domestic product by 1.3% in 2013, while the decline in Spain is to be even at 1.5%.
The price increase rate in Europe since the introduction of the euro averaged 2.0%, thus showing a moderate level. The European Central Bank has reached its price stability target and there has not been any noticeable increase in price pressure since then. Experience has shown that con-sumer prices depend heavily on the economic trend and at the moment they are far from overheating. Economic ex-perts expect an inflation rate of 1.8% in 2013. The forecast for 2014 was likewise lowered to 1.8%.
Growth in Germany
The effects of the financial and economic crisis are having a detrimental effect on the German economy. According to the most recent forecast by the EU Commission, Germany will see economic growth of 0.4% in the current year and 1.8% in 2014.
The German economy is being supported primarily by private consumer spending. The forecast also states that private consumer spending will show a slight increase of 0.5% in 2013. Based on the good economic situation, the president of the employers’ association expects salaries to rise in the current year.
Since the inflation will presumably remain at the level of 2012 (2.0%), consumers will have more money in real terms.
The German exporting firms are expected to further in-crease the export of industrial products in the current year. The foreign trade report by the Voice of German Industry (BDI) predicts that exports will rise 3% this year, meaning the German industry will be able to maintain its global market share.
The low growth projected for 2013 will have hardly any impact on the job market according to the German Institute for Economic Research (DIW). Experts expect the labour market to remain stable, predicting neither a noticeable decline nor an actual downturn.
Nevertheless, it is still essential for the economic situation that the European partner countries return to stability and growth.
Outlook
The internationally positioned Einhell Group expects the different markets to present a highly mixed picture again in 2013.
The markets in South America and Australia that are deemed future growth markets can be described as expand-ing. Here, the Einhell Group established itself in a strategi-cally advantageous position with a new company in Co-lumbia. The new subsidiaries in Brazil, Chile and Argentina are still in the early phase and have totally not yet generated any profit, but showed a sound revenue performance. In addition to the persistent debt crisis, also the drawn out winter weighed on revenue and income figures in the home market of Germany and the Western European countries in the first quarter of 2013. The increasing uncertainty on the part of consumers may also have an effect on future private consumption and savings trends.
Other markets, such as Southern Europe, have plummeted due to the debt crises in the respective countries. Eastern Europe is still suffering from extremely difficult general conditions paired with a drop in consumer spending. This is also reflected in the revenues of the Einhell Group. Reve-nues in both Southern Europe and the Eastern European countries have so far failed to meet expectations.
In addition, the investments in the “Einhell” brand incurred further costs for the Group. On the other hand, the Group is also planning to save costs, in particular by consolidating parts of some of the subsidiaries. Plans include merging storage locations that no longer reach the critical revenue threshold due to the economic situation in the respective countries.
The future economic and political development is hard to forecast. The different regions around the world will con-tinue to show highly divergent trends. No great growth momentum is to be expected from the euro zone in 2013.
This region will have to concentrate on re-establishing stability and further pursuing the savings measures and reforms that are underway. Given their strong interdepend-ence with the states in the monetary union, experts are concerned that this could have a negative impact on the emerging economies in Eastern Europe.
From today’s point of view, we believe that the highly uncertain market environment in various economic regions will cause consolidated turnover to come in at the lower end of the planning horizon of about EUR 390 - 400 million at the end of the year. The estimated pre-tax yield will amount to 2-3%.
Landau a. d. Isar, 22 May 2013 Einhell Germany AG
The Board of Directors Andreas Kroiss Jan Teichert
Consolidated statement of financial position (IFRS) as at 31 March 2013 (abbreviated)
Assets 31 March 2013 € thousand
31 March 2012 € thousand
NON-CURRENT ASSETS
Intangible assets 10,453 9,192
Property, plant and equipment 17,856 17,721
Non-current financial assets 362 353
Other non-current assets 2,451 2,438
Deferred tax assets 5,681 6,800
36,803 36,504 CURRENT ASSETS
Inventories 129,344 120,387
Trade receivables 105,328 90,645
Other assets 30,585 21,521
Cash and cash equivalents 7,024 5,719
272,281 238,272 309,084 274,776
Equity and liabilities 31 March 2013 € thousand
31 March 2012 € thousand
EQUITY
Subscribed capital 9,662 9,662
Capital reserve 26,677 26,677
Retained earnings 124,449 123,763
Other reserves 1,530 -574
Equity of shareholders of
Einhell Germany AG 162,318 159,528
Minority interests 2,962 2,950
165,280 162,478 NON-CURRENT LIABILITIES
Provisions 2,614 1,974
Financial liabilities 20,395 20,781
Deferred taxes 1,187 1,092
Other liabilities 1,879 2,059
26,075 25,906 CURRENT LIABILITIES
Trade payables 26,080 29,217
Provisions 10,828 10,832
Financial liabilities 61,502 29,424
Other liabilities 19,319 16,919
117,729 86,392 309,084 274,776
Consolidated statement of comprehensive income (IFRS) for the period from 1 January to 31
March 2013
1.1 - 31.3.2013
€ thousand
1.1 - 31.3.2012
€ thousand
Revenues 102,130 90,521
Other operating income 1,686 1,253
Cost of materials -72,859 -62,305
Personnel expenses -13,532 -11,645
Depreciation -709 -648
Other operating expenses -14,613 -12,845
Net finance costs -42 -99
Profit before income taxes 2,061 4,232
Income taxes -971 -1,247
Consolidated net profit 1,090 2,985
Share of minority shareholders in
consoli-dated net income/loss -118 -38
Thereof share in consolidated net in-come/loss of shareholders of Einhell
Consolidated statement of cash flows (IFRS) for the period from 1 January to 31 March 2013
in € thousand 1.1 -
31.3.2013
1.1 - 31.3.2012 Cash flows from/used in operating activities
Profit before taxes 2,061 4,232
+ Depreciation and amortisation of intangible assets and property, plant and
equipment 709 648
- Interest income -62 -128
+ Interest expenses 649 431
+/- Other non-cash expenses and income 459 548
Operating profit before changes in net working capital 3,816 5,731
+/- Decrease/increase in trade receivables -38,739 -28,221
+/- Decrease/increase in inventories -3,616 -8,316
+/- Decrease/increase in other assets -4,280 -6,645
+/- Increase/decrease in non-current liabilities -39 -43
+/- Increase/decrease in current liabilities 4,301 1,511
+/- Increase/decrease in trade payables -6,987 1,982
Cash flows generated from operating activities -45,544 -34,001
- Taxes paid -1,619 -1,235
+ Interest received 32 173
- Interest paid -389 -204
Net cash from operating activities -47,520 -35,267
Cash flows from investing activities
- Payments to acquire assets -689 -739
+ Proceeds from disposal of assets 1 13
- Payments for acquisition of equity investments 0 -308
+/- Increase/decrease in goodwill 0 101
Net cash from investing activities -688 -933
Cash flows from financing activities
+/- Increase/decrease in financial liabilities 49,659 28,222
+ Payments received from minority shareholders 0 0
- Payments to shareholders including minority shareholders 0 0
- Payments for liabilities for finance leases -2 -2
Net cash flows for financing activities 49,657 28,220
Changes to cash and cash equivalents due to currency exchange -43 -10
Net cash acquired from acquisitions 0 0
Net decrease/increase in cash and cash equivalents 1,406 -7,990
Cash and cash equivalents at beginning of reporting period 5,618 13,709
Selected IFRS consolidated notes of Einhell
Germany AG, Landau/Isar, for the period
from 1 January to 31 March 2013
1. Principles and methods used in preparing
the consolidated financial statements
1.1 Basis of consolidation
The consolidated financial statements comprise Einhell Germany AG and the companies it controls. IAS 27 de-fines control as the power to govern the financial and operating policies so as to obtain benefits from a compa-ny’s activities. If the Group holds more than 50% of the voting rights of a company, either directly or indirectly, it is deemed to control such company, unless such assump-tion is refuted. Companies that are acquired or sold during the course of a financial year are included in the consoli-dated financial statements as from the date of acquisition until the date of sale.
1.2 Accounting and valuation principles
The report as at 31 March 2013 applies the same account-ing and valuation principles as were used in the annual financial statements 2012.
2. Notes to statement of financial position
2.1 Non-current assetsIntangible assets and property, plant and equipment are valued at acquisition or manufacturing cost and are recog-nised in the statement of financial position less accumulat-ed depreciation.
Intangible assets amounted to EUR 10.5 million as at 31 March 2013, while property, plant and equipment came out to EUR 17.9 million.
2.2 Inventories
March 2013
March 2012 € thousand € thousand
Raw materials and supplies
(at acquisition cost) 307 275 Finished goods 128,518 118,418
Prepayments 519 1,694
Total 129,344 120,387
Inventories are valued at the lower of acquisition or manu-facturing cost or net realisable value.
2.3 Cash and cash equivalents
Cash and cash equivalents include bank balances, cheques and cash in hand.
2.4 Provisions
Provisions totalled EUR 13,442 thousand. This includes non-current provisions of EUR 2,614 thousand.
Provisions refer in particular to provisions for warranty.
2.5 Liabilities
Upon addition, liabilities are valued at fair value of the consideration received; subsequent valuation is performed at amortised cost. Liabilities in foreign currencies are recognised at the reporting date price or hedging rate as of the reporting date.
3. Notes to the consolidated statement of
com-prehensive income
Other operating expenses
Other operating expenses amounted to EUR 14,613 thou-sand as of 31 March 2013. This pertains primarily to ex-penses for the transportation of goods, guarantees, custom-er scustom-ervices, impairment, advcustom-ertising and product design.
4. Segment reporting
The identification of reportable segments pursuant to IFRS 8 is based on the so-called management approach concept. The segmentation of the Einhell Group into the two seg-ments Garden & Leisure and Tools reflects the Group’s internal management and reporting structures.
Income and expenses that cannot be directly allocated to the individual segments are shown in the reconciliation item.
4.1 Segment reporting by division
March 2013 in € thousand
T o o ls G a rd en & L ei su re T o ta l se g m en ts R ec o n ci li a ti o n G ro u p
Segment revenues 58,192 43,938 102,130 0 102,130 Profit from
operation (EBT) -255 2,316 2,061 0 2,061
Financial result -168 126 -42 0 -42 Scheduled
depreciation 409 300 709 0 709 Non-cash income -146 -93 -239 0 -239 Non-cash expenses 434 264 698 0 698 Inventories 73,422 55,922 129,344 0 129,344
March 2012 in € thousand
T o o ls G a rd en & L ei su re T o ta l se g m en ts R ec o n ci li a ti o n G ro u p
Segment revenues 41,676 48,845 90,521 0 90,521 Profit from
operation (EBT) 1,154 3,078 4,232 0 4,232 Financial result 7 -106 -99 0 -99 Scheduled
depreciation 296 352 648 0 648 Non-cash income -239 -202 -441 0 -441 Non-cash expenses 476 513 989 0 989 Inventories 67,500 52,887 120,387 0 120,387
The Tools segment includes electronic hand tools and stationary tools as well as hand-held tools and general electronic tools accessories. Garden & Leisure comprises garden and water technology as well as cooling and heat-ing technology.
4.2 Segment reporting by region
The geographic allocation of revenues is based on the registered office of the invoice recipient. The decisive factor is the market where the revenues are generated. The following table shows segment reporting by region:
March 2013 in € thousand D /A /C H r eg io n O th er E u ro p e A si a S o u th A m er ic a O th er c o u n tr ie s R ec o n ci li a ti o n G ro u p External
revenues 56,029 34,249 3,564 5,891 2,397 0 102,130
Non-current
assets 15,469 14,134 508 720 291 0 31,122
March 2012 in € thousand D /A /C H r eg io n O th er E u ro p e A si a S o u th A m er ic a O th er c o u n tr ie s R ec o n ci li a ti o n G ro u p External
revenues 49,415 33,330 2,942 3,965 869 0 90,521
Non-current assets
14,250 14,264 503 551 136 0 29,704
5. Statement of responsibility
To the best of our knowledge, we assure that the interim consolidated financial statements give a true and fair view of the net assets, financial position and earnings situation of the Group and that the interim Group management report accurately reflects the actual development and per-formance of the business and the position of the Group and describes the principal risks and opportunities associated with the Group’s expected development in the remaining months of the financial year.
Landau a. d. Isar, 22 May 2013 Einhell Germany AG
The Board of Directors Andreas Kroiss Jan Teichert
