Post on 06-Jul-2020
�
The OHB Group at a glance �
Revenues
Total revenues
EBITDA
EBIT
EBT
Net income for the period
Earnings per share (EUR)
Total assets
Equity
Cash flow from operating activities
Equity investments
thereof capital spending
Employees on December 31
2013
680,121
700,063
52,803
36,353
29,728
19,436
1.12
585,407
132,705
–34,111
23,632
1,046
2,412
2012
615,982
632,729
46,110
30,997
23,979
14,818
0.85
538,757
117,332
17,559
21,571
760
2,493
2011
555,689
555,292
43,101
27,276
19,517
13,523
0.78
528,239
113,577
21,137
15,533
156
2,352
2010
425,448
453,323
33,688
22,730
15,384
9,642
0.55
466,396
105,170
42,123
19,126
6,543
1,677
Closing price
Year high
Year low
Market capitalization at year-end
Number of shares
2013
17.55
18.63
14.76
307 million
17,468,096
2014
19.70
25.06
17.45
344 million
17,468,096
2012
15.15
16.50
11.16
265 million
17,468,096
2011
11.40
17.45
8.25
199 million
17,468,096
2010
16.60
18.34
11.50
290 million
17,468,096
The Stock in EUR
The Group in EUR 000s
OHB AG in Figures
Glossary
Calendar of events in 2015
Annual press conference and release of annual report for 2014, Bremen March 19
Analyst conference, Frankfurt/Main March 19
3 month report/analyst conference call May 13
Annual general meeting, Bremen May 21
6 month report/analyst conference call August 13
9 month report/analyst conference call November 11
Analyst presentation at Deutsches Eigenkapitalforum, Frankfurt/Main November 23–25
2014
728,147
772,954
53,416
40,400
33,874
25,713
1.48
640,613
147,199
–35,020
25,048
40
2,086
OH
B A
G •
Ann
ual R
epor
t 201
4OHB AG
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49 (0)421 2020-8
Fax: +49 (0)421 2020-613
ir@ohb.de
www.ohb.de
Annual Report 2014
�
The OHB Group at a glance �
Revenues
Total revenues
EBITDA
EBIT
EBT
Net income for the period
Earnings per share (EUR)
Total assets
Equity
Cash flow from operating activities
Equity investments
thereof capital spending
Employees on December 31
2013
680,121
700,063
52,803
36,353
29,728
19,436
1.12
585,407
132,705
–34,111
23,632
1,046
2,412
2012
615,982
632,729
46,110
30,997
23,979
14,818
0.85
538,757
117,332
17,559
21,571
760
2,493
2011
555,689
555,292
43,101
27,276
19,517
13,523
0.78
528,239
113,577
21,137
15,533
156
2,352
2010
425,448
453,323
33,688
22,730
15,384
9,642
0.55
466,396
105,170
42,123
19,126
6,543
1,677
Closing price
Year high
Year low
Market capitalization at year-end
Number of shares
2013
17.55
18.63
14.76
307 million
17,468,096
2014
19.70
25.06
17.45
344 million
17,468,096
2012
15.15
16.50
11.16
265 million
17,468,096
2011
11.40
17.45
8.25
199 million
17,468,096
2010
16.60
18.34
11.50
290 million
17,468,096
The Stock in EUR
The Group in EUR 000s
OHB AG in Figures
Glossary
Calendar of events in 2015
Annual press conference and release of annual report for 2014, Bremen March 19
Analyst conference, Frankfurt/Main March 19
3 month report/analyst conference call May 13
Annual general meeting, Bremen May 21
6 month report/analyst conference call August 13
9 month report/analyst conference call November 11
Analyst presentation at Deutsches Eigenkapitalforum, Frankfurt/Main November 23–25
2014
728,147
772,954
53,416
40,400
33,874
25,713
1.48
640,613
147,199
–35,020
25,048
40
2,086
OH
B A
G •
Ann
ual R
epor
t 201
4OHB AG
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49 (0)421 2020-8
Fax: +49 (0)421 2020-613
ir@ohb.de
www.ohb.de
Annual Report 2014
The OHB Group at a glance
OHB AG is a European space flight and technology group and one of the most important independent forces in Euro-pean aviation/aerospace. With more than 30 years of experience in developing and executing innovative space technology systems and structures and its range of specific aviation/aerospace and telematics products, the OHB Group is superbly positioned to face international competition.
“Form follows function” - this is the principle under which OHB AG has been successfully positioning itself in Europe over the past few years. These strategic decisions on loca-tions and the deliberate separation of functions across Europe allow the Group to participate in numerous Euro-pean programs and missions. The two “Space Systems” and “Aerospace + Industrial Products” business units reflect the convergence of these activities and the focus on specific core skills.
The “Space Systems” business unit focuses on developing and executing space projects. In particular, it is responsible for developing and fabricating low-orbiting and geostation-ary small satellites for navigation, research, communica-
tions and earth observation including scientific payloads. Its manned space flight activities chiefly entail the assembly and fitting of the International Space Station ISS, Columbus and ATV. The exploration segment works on studies and models for exploring our solar system, primarily the moon and Mars. In addition, efficient reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance.
The “Aerospace + Industrial Products” business unit is primarily responsible for fabricating aviation and space products as well as other industrial activities. In this area, OHB has established itself as a significant supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German supplier of components for the Ariane-5 program. In addition, it is an experienced vendor of mechatronic systems for antennas and telescopes and is involved in major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities.
OHB System AG, Bremen & Munich, Germany
Space Systems Aerospace + Industrial Products
MT Aerospace AG,Augsburg, Germany
megatel GmbH, Bremen, Germany
OHB Sweden AB, Stockholm, Sweden
OHB Teledata GmbH, Bremen, Germany
Antwerp Space N.V., Antwerp, Belgium
MT Aerospace Guyane S.A.S., Kourou, French Guiana
LuxSpace Sàrl, Betzdorf, Luxembourg
MT Mechatronics GmbH, Mainz, Germany
CGS S.p.A., Milan, Italy
74.9 %
MT M
echatronics Gm
bH
OHB Group in Europe
OHB System
AG München
CGS S.p.A
.
OHB S
wed
en A
B
OH
B S
yste
m A
G B
rem
en
MT
Aero
spac
e Gu
yane
S.A.
S., K
ouro
u
MT Mecatronica Limita
da,
Santiago de Chile
LuxSpace Sàrl
Antwerp Space N.V.
MT
Aer
ospa
ce A
G
Glossary
AQAP Allied Quality Assurance Publications; series of standards developed by NATA from the military standard for quality assurance systems
ARTES-7 Long-term ESA plan for developing a European communications satellite network using the latest laser communications
ASI Agenzia Spaziale Italiana; Italian space agency
ATV Automated Transfer Vehicle; unmanned space transporter for supply flights to the ISS
BAAINBw Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (formerly BWB German Federal Office of Defense Technology and Procurement)
BDLI German Federal Aviation and Space Industry Association
BIOMASS Earth observation programme of the European Space Agency
Blue Dot Name of the 6-month mission launched in May 2014 by ESA astronaut Alexander Gerst being on board the International Space Station ISS
BMVg German Federal Ministry of Defense
BMWi German Federal Ministry of Economics and Technology
CFRP Carbon fiber-reinforced plastic
COLUMBUS Name of the European module of the International Space Station
CPS Chemical Propulsion System
DAX German bluechip share index, tracking the performance of the 30 largest shares listed on the Frankfurt stock exchange
DEKRA Testing body for determining the roadworthiness of vehicles, certification services, safety checks and examination of technical equipment
Design-to-cost Designing and Engineering in terms of costs considering the given circumstances
DLR Deutsches Zentrum für Luft- und Raumfahrt; German Space Agency
Dream Chaser® The Dream Chaser Space System mission is to provide NASA with a transportation service for crew and cargo to the International Space Station
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortization
EBT Earnings before taxes
EDRS-C Dedicated satellite for the European Data Relay Satellite System for implementing a data network in space using optical satellite communications
Electra Fully electrically driven satellite based on the SmallGEO platform
EnMAP Environmental Mapping and Analysis Programme; satellite for hyperspectral terrestrial observation
EOEP ESA Earth Observation Envelope Programme
EPS Earnings per share
ESA European Space Agency
EU European Union
EUMETSAT European Organisation for the Exploration of Meteorological Satellites;
European Southern Observatory Intergovernmental research organisation for astronomy that has built and operated some of the largest and most technologically-advanced telescopes in the world
ExoMars Scientific mission of the European Space Agency and ROSCOSMOS to explore the Mars
FOC Full operational capability; final satellite configuration for the operation of a system
Galileo The Full Operational Capability phase of the Galileo programme is managed and fully funded by the European Union. The Commission and ESA have signed a delegation agreement by which ESA acts as design and procurement agent on behalf of the Commission. The views expressed in this Press Release can in no way be taken to reflect the official opinion of the European Union and/or ESA.“Galileo“ is a trademark subject to OHIM application number 002742237 by EU and ESA.
Heinrich Hertz Satellite mission based on the SmallGEO platform to explore new communications technologies in space
Hispasat AG1 Hispasat Advanced Generation 1
HGB German Commercial Code
IAC International Astronautical Congress; yearly space symposium that takes place in different event locations
IAS International Accounting Standards
IFRS International Financial Reporting Standards
ISS International Space Station
MTG Meteosat Third Generation; programme to develop, build and launch third-generation weather satellites
NADCAP National Aerospace and Defense Contractors Accreditation Programme; certification of special aviation,space and defense processes
NASA National Aeronautics and Space Administration; US space agency
OPSIS OPtical System for Imaging and Surveillance, satellite mission operated by the Italian space agency ASI
Philae Lander in the Rosetta comet mission with 10 instruments on board to examine material collected from the comet 67P/Tschurjumow-Gerasimenko
R+D Research and development
REACH Registration, Evaluation, Authorization of Chemicals; EU chemicals regulation
RoHS Restriction of the use of certain hazardous sub-stances; EU directive to limit the use of certain dangerous materials in electrical and electronic devices
ROSCOSMOS Space Agency of Russia
SAR-Lupe Synthetic Aperture Radar-Lupe; system of small satellites with a process for enhancing the quality of radar images
SmallGEOs Small geostationary satellites for telecom-munications and multimedia applications
Rosetta Mission organized by the European Space Agency ESA to explore the origins of our solar system; the mission comprises an orbiter and the Philae lander.
TecDAX German stock index, that tracks the performance of the 30 largest German companies from the technology sector in terms of order book turnover and market capitalization
Telematics A system linking telecommunications and IT
TET Technology mule; core element of the national “On-Orbit Verification of New Techniques and Technologies” project
TRL Technology Readiness Level; is a measure used to assess the maturity of evolving technologies
USD US-Dollar
The OHB Group at a glance
OHB AG is a European space flight and technology group and one of the most important independent forces in Euro-pean aviation/aerospace. With more than 30 years of experience in developing and executing innovative space technology systems and structures and its range of specific aviation/aerospace and telematics products, the OHB Group is superbly positioned to face international competition.
“Form follows function” - this is the principle under which OHB AG has been successfully positioning itself in Europe over the past few years. These strategic decisions on loca-tions and the deliberate separation of functions across Europe allow the Group to participate in numerous Euro-pean programs and missions. The two “Space Systems” and “Aerospace + Industrial Products” business units reflect the convergence of these activities and the focus on specific core skills.
The “Space Systems” business unit focuses on developing and executing space projects. In particular, it is responsible for developing and fabricating low-orbiting and geostation-ary small satellites for navigation, research, communica-
tions and earth observation including scientific payloads. Its manned space flight activities chiefly entail the assembly and fitting of the International Space Station ISS, Columbus and ATV. The exploration segment works on studies and models for exploring our solar system, primarily the moon and Mars. In addition, efficient reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance.
The “Aerospace + Industrial Products” business unit is primarily responsible for fabricating aviation and space products as well as other industrial activities. In this area, OHB has established itself as a significant supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German supplier of components for the Ariane-5 program. In addition, it is an experienced vendor of mechatronic systems for antennas and telescopes and is involved in major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities.
OHB System AG, Bremen & Munich, Germany
Space Systems Aerospace + Industrial Products
MT Aerospace AG,Augsburg, Germany
megatel GmbH, Bremen, Germany
OHB Sweden AB, Stockholm, Sweden
OHB Teledata GmbH, Bremen, Germany
Antwerp Space N.V., Antwerp, Belgium
MT Aerospace Guyane S.A.S., Kourou, French Guiana
LuxSpace Sàrl, Betzdorf, Luxembourg
MT Mechatronics GmbH, Mainz, Germany
CGS S.p.A., Milan, Italy
74.9 %
MT M
echatronics Gm
bH
OHB Group in Europe
OHB System
AG München
CGS S.p.A
.
OHB S
wed
en A
B
OH
B S
yste
m A
G B
rem
en
MT
Aero
spac
e Gu
yane
S.A.
S., K
ouro
u
MT Mecatronica Limita
da,
Santiago de Chile
LuxSpace Sàrl
Antwerp Space N.V.
MT
Aer
ospa
ce A
G
Glossary
AQAP Allied Quality Assurance Publications; series of standards developed by NATA from the military standard for quality assurance systems
ARTES-7 Long-term ESA plan for developing a European communications satellite network using the latest laser communications
ASI Agenzia Spaziale Italiana; Italian space agency
ATV Automated Transfer Vehicle; unmanned space transporter for supply flights to the ISS
BAAINBw Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (formerly BWB German Federal Office of Defense Technology and Procurement)
BDLI German Federal Aviation and Space Industry Association
BIOMASS Earth observation programme of the European Space Agency
Blue Dot Name of the 6-month mission launched in May 2014 by ESA astronaut Alexander Gerst being on board the International Space Station ISS
BMVg German Federal Ministry of Defense
BMWi German Federal Ministry of Economics and Technology
CFRP Carbon fiber-reinforced plastic
COLUMBUS Name of the European module of the International Space Station
CPS Chemical Propulsion System
DAX German bluechip share index, tracking the performance of the 30 largest shares listed on the Frankfurt stock exchange
DEKRA Testing body for determining the roadworthiness of vehicles, certification services, safety checks and examination of technical equipment
Design-to-cost Designing and Engineering in terms of costs considering the given circumstances
DLR Deutsches Zentrum für Luft- und Raumfahrt; German Space Agency
Dream Chaser® The Dream Chaser Space System mission is to provide NASA with a transportation service for crew and cargo to the International Space Station
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortization
EBT Earnings before taxes
EDRS-C Dedicated satellite for the European Data Relay Satellite System for implementing a data network in space using optical satellite communications
Electra Fully electrically driven satellite based on the SmallGEO platform
EnMAP Environmental Mapping and Analysis Programme; satellite for hyperspectral terrestrial observation
EOEP ESA Earth Observation Envelope Programme
EPS Earnings per share
ESA European Space Agency
EU European Union
EUMETSAT European Organisation for the Exploration of Meteorological Satellites;
European Southern Observatory Intergovernmental research organisation for astronomy that has built and operated some of the largest and most technologically-advanced telescopes in the world
ExoMars Scientific mission of the European Space Agency and ROSCOSMOS to explore the Mars
FOC Full operational capability; final satellite configuration for the operation of a system
Galileo The Full Operational Capability phase of the Galileo programme is managed and fully funded by the European Union. The Commission and ESA have signed a delegation agreement by which ESA acts as design and procurement agent on behalf of the Commission. The views expressed in this Press Release can in no way be taken to reflect the official opinion of the European Union and/or ESA.“Galileo“ is a trademark subject to OHIM application number 002742237 by EU and ESA.
Heinrich Hertz Satellite mission based on the SmallGEO platform to explore new communications technologies in space
Hispasat AG1 Hispasat Advanced Generation 1
HGB German Commercial Code
IAC International Astronautical Congress; yearly space symposium that takes place in different event locations
IAS International Accounting Standards
IFRS International Financial Reporting Standards
ISS International Space Station
MTG Meteosat Third Generation; programme to develop, build and launch third-generation weather satellites
NADCAP National Aerospace and Defense Contractors Accreditation Programme; certification of special aviation,space and defense processes
NASA National Aeronautics and Space Administration; US space agency
OPSIS OPtical System for Imaging and Surveillance, satellite mission operated by the Italian space agency ASI
Philae Lander in the Rosetta comet mission with 10 instruments on board to examine material collected from the comet 67P/Tschurjumow-Gerasimenko
R+D Research and development
REACH Registration, Evaluation, Authorization of Chemicals; EU chemicals regulation
RoHS Restriction of the use of certain hazardous sub-stances; EU directive to limit the use of certain dangerous materials in electrical and electronic devices
ROSCOSMOS Space Agency of Russia
SAR-Lupe Synthetic Aperture Radar-Lupe; system of small satellites with a process for enhancing the quality of radar images
SmallGEOs Small geostationary satellites for telecom-munications and multimedia applications
Rosetta Mission organized by the European Space Agency ESA to explore the origins of our solar system; the mission comprises an orbiter and the Philae lander.
TecDAX German stock index, that tracks the performance of the 30 largest German companies from the technology sector in terms of order book turnover and market capitalization
Telematics A system linking telecommunications and IT
TET Technology mule; core element of the national “On-Orbit Verification of New Techniques and Technologies” project
TRL Technology Readiness Level; is a measure used to assess the maturity of evolving technologies
USD US-Dollar
1
OHB AG | 2014
Highlights 2014
14
24 28
31
38
59 Internalcontrolandriskmanagement 59 Opportunityandriskreport 62 Compensationreport 62 DisclosuresinaccordancewithSection315(4) oftheGermanCommercialCode 63 Corporategovernancedeclaration
64 Corporategovernance
66 Consolidatedfinancialstatements 67 Consolidatedincomestatement 67 Consolidatedstatementofcomprehensiveincome 68 Consolidatedbalancesheet 69 Consolidatedcashflowstatement 70 Consolidatedstatementofchangesinequity 70 Notestotheconsolidatedfinancialstatements 93 Auditor’scertificate
94 Otherdisclosures 94 Contact/DisclosuresrequiredbyGermanlaw C Glossary/Calendarofeventsin2015
02 Lettertotheshareholders 05 ReportoftheSupervisoryBoard 10 Obituary 12 SmallGEO 16 Interview 20 Highlights2014 40 OHBstock 44 Groupmanagementreport
45 Businessperformanceandunderlyingconditions 47 Businessperformance 52 Salesandorders 52 Resultsofoperations 53 Assetsandfinancialcondition 54 Employees 54 Researchanddevelopment 56 Quality,environmentalmanagement, dataprotectionandprocesses 57 Significanteventsoccurringafterthe endoftheperiodunderreview 58 Outlook
CONTENTS
OHB AG | 2014
Ulrich Schulz,
bornin1951,engineer,memberoftheManagementBoardofOHBAGsince2000
Dr. Fritz Merkle,
bornin1950,Dipl.-Phys.,memberoftheManagementBoardofOHBAGsince2014
Marco R. Fuchs,
bornin1962,attorney,ChiefExecutiveOfficerofOHBAGsince2000
OHB AG | 2014
03
OHB has been ESA’s third European systems integrator for a number of years now. Driven by our strategy of continuous and controlled growth, OHB has evolved into a European space company over the last few decades. The focus on our successful European-wide space activities particu-larly became evident to the outside observer in several different ways last year:
1. Deconsolidation of the aviation activities of Aerotech Peissenberg (ATP) following OHB AG’s decision not to subscribe to the issue of new share capital in May 2014, thus assuming a majority interest.
2. Merger of the Group’s two space development and production companies OHB System in Bremen and Kayser-Threde in Munich in September 2014.
3. Preparation of OHB AG’s conversion into a Societas Europaea (SE) by mid 2015.
Underpinned by a further record in total revenues and earnings, the Group is leveraging its solid and reinforced capital base to react flexibly to the swift organic growth being achieved by individ-ual subsidiaries.
Speed and flexibility characterized our Group last year when the 4M – Manfred Memorial Moon Mission was executed within the space of a few months. This had been organized in memory of my father – a visionary and the founder of our Company – and was developed and successfully completed on a very small budget to prepare for future lunar missions. My father passed away completely unexpectedly at the end of April last year.
The combination of this ability to drive new developments forward and to master new challenges in a fast-changing environment swiftly, flexibly and unconventionally on the strength of our long-standing expertise and experience will help us to tackle future tasks just as efficiently and suc-cessfully. One increasingly important aspect in this regard is the integration and coordination within the Group of state-of-the-art research and development projects such as Electra, Heinrich Hertz and PLATO as well as industrial production of a total of 22 Galileo*-FOC satellites and 6–8 Ariane 5 booster casing sets a year.
The strategies and focus recently adopted at the 2014 ESA Ministerial Council on “Europe’s access to space”, the development of the ARIANE 6 and Vega C launchers and Europe’s space exploration strategy with the three main aspects LEO (low earth orbit), the moon and Mars harmonize particularly well with our own thrusts and strategies. What is more, we expect to benefit from the increased German contribution to the ESA budget in 2015 and beyond.
However, what is decisive for you as our shareholders is the fact that your Company’s business success is also reflected in the dividend distributed to you. The Management Board and the Supervisory Board will again be asking the shareholders to approve a dividend of EUR 0.37 per share at this year’s annual general meeting. Everyone investing in equities last year generally
Dear Shareholders, Customers and Business associates,
Letter to the shareholders
* see Glossary
OHB AG | 2014
04
made a fortunate decision. Once again, equities as an asset class offered a lucrative alternative to other instruments and particularly benefited from the historically low interest rates. OHB stock also performed well and with a gain of 12% last year outstripped the DAX.
Outlook for 2015 Looking forward to 2015, the OHB Group will be maintaining the growth strategy which it has adopted and will be able to continue operating at high capacity utilization in all areas. Based on the current high order backlog of around EUR 2.1 billion (previous year: EUR 2.3 billion), the Management Board expects a substantial increase in consolidated total revenues to EUR 800 mil-lion in 2015 as a whole, supported by both business units, whose total revenues will be up on 2014 levels. At over EUR 53 million and more than EUR 40 million, respectively, EBITDA and EBIT should also remain stable compared with the previous year.
I would like to take this opportunity to thank all our staff at all of the Group’s companies for their services, dedication and innovative ideas. If it were not for them, we would not have achieved last year’s successes. All business units have contributed to the Group’s growth and competitiveness. Together, we will be working with enthusiasm and vigor towards continuing our European success story.
Bremen, March 18, 2015
Marco R. Fuchs, Chairman of the Management Board
Letter to the shareholders
OHB AG | 2014
05ReportoftheSupervisoryBoard
Dear Shareholders,
Inseveraldifferentrespects,2014wasaveryunusualyearforOHBinitshistoryspanningmorethanthirtyyears.Overshadowedbythecompletelyunexpectedlossofourbelovedpartner,visionarypioneer,innovativefounderandlong-standingcommittedcompanionProf.ManfredFuchs,itwasalsoayearofchangeandconcentrationfortheOHBGroup.
ThecarefulandjudiciouspreparationsforconvertingOHGAGintoaEuropeanSEcalledforongo-ingassistanceandsupervision.ThetransitionfromdevelopmentworktovolumeproductionintheGalileo*satelliteprojectandarenewedfocusonthestrengthsofOHB’svisionaryandinnova-tivespiritofdevelopmentreflectthediversityandqualityofthisGroup.Thinkingup,planningandspontaneouslyimplementingnewandunconventionalyetinexpensivemissionslookingfarintothefuture,suchasthe“ManfredMemorialMoonMission”(4M),whichtookcompletelynewstepsinresearch–thisiswhatcharacterizesOHB.
Thisfocusonthestrengthsandrootsofspacetechnologyisalsoreflectedinthepoolingofexpertiseandexperienceinpotentunitsandtheeliminationofactivitiesoutsidethesecoreskills.Oneaspectofthisistheconcentrationonprofitablegrowthbyobtainingfollow-upcontractsfromexistingcustomersamongotherthings.
Christa Fuchs,
ChairwomanoftheSupervisoryBoardofOHBAG,MemberoftheSupervisoryBoardsince2002,bornin1938,businesswoman,ManagingshareholderofVOLPAIABeteiligungs-GmbH
Robert Wethmar,
MemberoftheSupervisoryBoardsince2012,bornin1961,attorneyatlaw,PartneratlawfirmTaylorWessing
Prof. Heinz Stoewer,
MemberoftheSupervisoryBoardsince2005,bornin1940,Dipl.-Ing.,M.Sc.,Professorem.SpaceSystemsEngineering,TechnicalUniversityofDelft,Netherlands,ManagingdirectorofSpaceAssociatesGmbH
*seeGlossary
OHB AG | 2014
06
OHBAGtogetherwithitsSupervisoryBoardandManagementBoardiscommittedtogoodandresponsiblecorporategovernance.ThiscommitmentissharedbythemajorityshareholdersandtheGroup’sentiremanagement.Inadditiontoobservinghighstatutoryandethicalstandards,employeeswiththeirkeensenseofresponsibilityattachtopprioritytominimizingenvironmentalimpact,theachievementofthegreatestpossiblequalityaswellasthesafety,healthandequalityofallstaff.Lookingaheadoverthenextfewyears,oneobjectivewillbetointerestagreaterpro-portionofwomenintheexcitingandinterestingcareeropportunitiesawaitingtheminaviation/aerospace,asectorwhichisstillheavilydominatedbymen,andtoencouragemoregirlsandwomentoembarkonatechnicalcareer.Inthisrespect,thenowtraditional“Girls’Day”,whichtheGrouporganizesandwhichwillbetakingplacethisyearonApril23,2015,merelymarksthebeginningofawholeseriesofactivitiesandmeasuresaimedatarousingwomen’sinterestinacareerinthisindustry.Specialpartnershipswithuniversitiesandtertiary-educationinstitutionsaswellastrainingandskillsdevelopmentforwomenandthetargeteddevelopmentoffemalestaffrightuptothemanagementandexecutivelevelwillprovideadditionalongoingsupportforthisprograminthefuture.
In2014,theSupervisoryBoardperformeditsdutieswithgreatcareinaccordancewiththeappli-cablestatutoryrequirements,theprovisionsoftheCompany’sbylawsanditsrulesofconduct.TheSupervisoryBoardisresponsibleforoverseeingtheManagementBoardbymonitoringitsactivitiesandexertinginfluence.ThislatterfunctionplaysadecisiveroleintheCompany’ssuc-cessnotonlyintheshorttermbutalsoonamediumandlong-termbasis.
TheManagementBoardbriefedtheSupervisoryBoardregularlyandcomprehensivelyonorderintake,totalrevenues,earningsandcapacityutilizationatOHBAGaswellaswithintheindividualbusinessunits,particularlyupdatingitontheprogressmadeinintegratingrecentacquisitions.TheManagementBoardansweredalloftheSupervisoryBoard’squestionsinfullandcomprehen-sively.TheSupervisoryBoardsoughtandreceivedongoinginformationoncorporateplanning,strategicdevelopmentandthemainacquisitionprojectsandadvisedtheManagementBoardonindividualmattersrelatingtocorporateacquisitionsandprojecttenders.
TheSupervisoryBoardheldsixscheduledmeetingsatwhichitdeliberatedontheGroup’sperfor-mance,thereportssubmittedbytheManagementBoard,thestatusofcurrentprojects,pendingtenderprocesses,plannedacquisitions,theprogressmadeinintegratingthenewlyacquiredinvestmentsandthecorporatebudgetfor2015.ScheduledmeetingsoftheSupervisoryBoardin2014wereheldonFebruary12,March19,May27,July2,September22andDecember17attheCompany’sheadquartersinBremen.
DetaileddiscussionontherestructuringoftheMTSubgroup,particularlywithrespecttothefutureofAerotechPeissenbergGmbH&Co.KG(ATP),andtheManagementBoard’sreportontheresultsoftheprecedingreviewandcurrentstatusoftheplannedmergerbetweenOHBSystemAGandErwinKayser-ThredeGmbHwerethemainitemsontheagendaofthefirstSupervisoryBoardmeetingoftheyearheldonFebruary12,2014.
ReportoftheSupervisoryBoard
OHB AG | 2014
07ReportoftheSupervisoryBoard
ThemeetingheldonMarch19,2014waschieflydevotedtotheManagementBoard’sreportontheGroup’sperformanceintheperiodfromJanuary1,2013throughDecember31,2013,thecurrentstateofbusinessandtheforecastsfor2014.Forthispurpose,theManagementBoardsubmittedtheannualfinancialstatements,theconsolidatedfinancialstatementsandthemanagementreportsforOHBAGandtheGroupfor2013.
ThestatutoryauditorsfromBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,personallypre-sentedtheauditreportandelaboratedonitatthismeeting.TheSupervisoryBoardapprovedtheannualfinancialstatementsandtheconsolidatedfinancialstatementsofOHBAG.TheReportoftheSupervisoryBoardincludingthedeclarationofconsentoftheRelatedPartiesReportpreparedbytheManagementBoardwasalsoapproved.Atthismeeting,theagendaofthe14thannualgeneralmeeting,whichtookplaceonJuly2,includingproposedresolutionsfortheutili-zationoftheunappropriatedsurplusandtheretentionofadividendofEUR0.37wasfinalized.
AtthemeetingheldonMay27,2014,theManagementBoardreportedontheGroup’sbusinessperformanceinthefirstquarterof2014aswellasthecurrentstateofbusiness.Mr.MarcoFuchsparticularlydescribedthecurrentstatusoftheGalileoproject,reportingthatthetwosatellitesFM1and2hadarrivedsafelyinKourouandwerebeingpreparedforlaunching.Moreover,heprovidedabriefoverviewonthemergerbetweenOHBSystemAGandErwinKayser-ThredeGmbH.Inaddition,theManagementBoardproposedthatDr.FritzMerkle,themanagingdirectorofErwinKayser-ThredeGmbH,shouldbeappointedasanadditionalmemberoftheManagementBoard.Inthisposition,hewastobeparticularlyresponsibleforbusinessdevelopmentatthelevelofOHBAGtostrengthentheOHBcompanies’competitivepositionasaEuropeanspacegroup.TheSupervisoryBoardapprovedDr.Merkle’sappointmenteffectiveJune1,2014foraperiodofthreeyearsexpiringMay31,2017.Atthesametime,heretainedhispositionaschair-manofthemanagementofErwinKayser-ThredeGmbH.Mr.MarcoFuchsadditionallyproposedtheestablishmentofanexecutivecommitteecomprisingthemembersoftheManagementBoardplussixfurtherexecutivesfromOHBAGtodealwithcross-companystrategicmattersbelowtheManagementBoardlevel.TheSupervisoryBoardgaveitsconsenttothisplan.Mr.FuchsreportedthatasofMay13,2014OHBAGheldonlyaminorityinterestinAerotechPeissenbergGmbH&Co.KG.
InthemeetingheldonJuly2,2014,theManagementBoardandtheSupervisoryBoardengagedinapreliminaryreviewofthe14thannualgeneralmeeting,whichhadbeenheldonthesamedayandhadbeencharacterizedbyaconstructiveandopenatmosphere.
Inaddition,theManagementBoardreportedonbusinessperformanceinthefirsthalfof2014aswellasthesituationatMTAerospaceAG(MT),Augsburg,withparticularattentionpaidtotheopportunitiesandrisksofapossibleinvestmentinAriane5ME/Ariane6.
*seeGlossary
OHB AG | 2014
08
ThemainbusinessconductedattheSupervisoryBoard’smeetingofSeptember22,2014entailedbriefreportsontheindividualmajorprojectsaswellasstatusreportsonconditionsatthesub-sidiaries.TheManagementBoardofOHBAGalsoreportedonthecurrentstatusofthemergerbetweenOHBSystemAGandErwinKayser-ThredeGmbH,whichwasscheduledforSeptember1,2014butfinanciallyalreadyeffectivewithretrospectiveeffectasfromJanuary1,2014on.
HeldshortlybeforetheendoftheyearonDecember17,2014,theSupervisoryBoard’ssixthmeetingdealtwiththeGroup’sbusinessperformanceinthethirdquarterof2014andthefirstninemonthsof2014,thecurrentstateofbusinessandexpectedearningsfor2014.Inaddition,theprovisionalbudgetfor2015waspresented.Areportwasalsosubmittedconcerningtheplannedestablishmentofinternalauditingstructuresandtheproceduralrulestobeadoptedforinternalauditing.Inthisconnection,theSupervisoryBoarddiscussedtherelationshipbetweentheMan-agementBoardandinternalauditingandtheeffectsonfutureresponsibility.
TheManagementBoardandtheLegaldepartmenttabledthecompliancereportfor2014andbriefedtheManagementBoardonmaterialevents.TheManagementBoardandtheSupervisoryBoardalsojointlyissuedthedeclarationofconformitytotheGermanCorporateGovernanceCodestipulatedbySection161oftheStockCorporationAct.
CorporategovernanceTheManagementBoardalsosubmittedacorporategovernancereporttotheSupervisoryBoardinaccordancewithSection3.10oftheGermanCorporateGovernanceCodeinconnectionwiththecorporategovernancedeclarationstipulatedbySection289aoftheGermanCommercialCode.ThecorporategovernancedeclarationcanbeexaminedatOHBAG’swebsite.TheSupervisoryBoardregularlydiscussedtheapplicationandfurtherdevelopmentoftheprinciplesofcorporategovernancewithintheCompany.OnDecember17,2014,theManagementBoardandtheSuper-visoryBoardissuedanupdateddeclarationofconformanceinaccordancewithSection161oftheGermanStockCorporationActandmadethisavailablepermanentlytoshareholdersattheCom-pany’swebsite.
Approvaloftheannualfinancialstatementsfor2014Theannualfinancialstatements,theconsolidatedfinancialstatementsandtherelatedmanage-mentreportsofOHBAGfor2014wereauditedbyBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,andissuedwithanunqualifiedauditor’sreport.
ThesedocumentsweremadeavailabletoallmembersoftheSupervisoryBoardinsufficienttime.AttheSupervisoryBoard’sbalancesheetmeetingheldonMarch18,2015,thesedocumentswerediscussedinthepresenceandwiththeinvolvementofthestatutoryauditor.
TheSupervisoryBoarddidnotraiseanyobjectionsandacceptedtheresultsoftheaudit.Itapprovedtheconsolidatedfinancialstatements,asaresultofwhichtheyarenowdeemedtohavebeendulyadopted.TheSupervisoryBoardconcurredwiththeManagementBoard’sproposalfor
ReportoftheSupervisoryBoard
OHB AG | 2014
09ReportoftheSupervisoryBoard
theallocationoftheCompany’sunappropriatedsurplus.TherelatedpartiesreportpreparedbytheManagementBoardwasauditedbyBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,andgiventhefollowingunqualifiedauditcertificate:
“Havingexaminedandassessedtherelatedpartiesreportinaccordancewithourduties,weherebyconfirmthat1.thefactsstatedinthereportarecorrect,2.theCompany’stransactionsasdetailedintheReportwerenotunreasonablyhigh.”
TheSupervisoryBoardraisesnoobjectionsfollowingitsownexaminationandthereforeapprovestheManagementBoard’srelatedpartiesreport.
TheSupervisoryBoardwishestothanktheManagementBoard,allemployeesandtheemployeerepresentativesfortheworkperformed.TheyhaveoncemoremadeacontributiontoaverysuccessfulyearforOHBAG.
Bremen,March18,2015
ChristaFuchsChairwomanoftheSupervisoryBoard
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OHB AG | 2014
Highlights 2014
11
OHB AG | 2014
ObituaryManfredFuchs
OBiTuaryPrOf. DOTT. iNg. h.C. MaNfrED fuChS *25.7.1938 † 26.4.2014
OHBfounderandvisionaryProf.Dott.Ing.h.c.ManfredFuchspassedawayattheageof75yearsonApril26,2014.
ManfredFuchswasborninLatsch,Italy,in1938.Attheageof17,hebecametheyoungestpilotinItaly.HecametoGermanyattheageof18.AfterstudyingaviationengineeringinMunichandHamburg,heembarkedonhiscareerwithspacetechnologycompanyERNOin1961,playingakeyroleinprojectssuchasARIANE-1,SPACELABandCOLUMBUS.
In1981hiswifeChristatookoverasmallcompanyknownasOHB(orOttoHydraulikBremenasitwascalledatthetime).In1985,ManfredFuchsjoinedthiscompany,thusfulfillinghisdreamofbeingself-employed.Togetherwithhiswife,helaidthefounda-tionsforoneoftheleadingEuropeanspacecompanies,OHBAG.
DrivenbyhisGermanengineeringskillscombinedwithakeensenseofpolitics,OHBistodayoneofthreelargestsysteminte-
gratorsinEurope.ChristaandManfredFuchsweretheperfectmatch.Shewasresponsibleforfinancialplanning,whilehewasthevisionarystrategistwhomadehisdreamscometrue.TheirinspiringfamilyspiritbecameanintrinsicvalueofOHB’scorpo-rateculture.
Inthelastfewyearsofhislife,ManfredFuchswasamemberoftheManagementBoardatOHBAGandChairmanoftheSupervisoryBoardofOHBSystemAG.Hewasnamedhonor-aryprofessorbytheUniversityofBremenin1995andreceivedanhonorarydoctoratefromtheTechnicalUniversityofMilanin2005.Heheldnumeroushonorarypositionsandreceivedseveralawardsinrecognitionofhisservices,includingthehighestGermandistinctionintechnicalsciences,the“Werner-von-SiemensRing”.Despitetheseaccolades,ManfredFuchsremainedmodest,down-to-earthandunassuming.
Fromleft:ManfredFuchswithAntonioTajani/ChristaandManfredFuchsattheRussianlaunchpad/PhilippRöslerwelcomedbyManfredFuchsinBremen/ChristaandManfredFuchswithGerhardSchröder/MichailGorbachevandManfredFuchs/ManfredFuchswithJean-JacquesDordain
12 SmallGEO
13
OHBhasdevelopeda“small”geostationaryplatform(SmallGEO)forcommunicationssatellites.Theparticularstrengthoftheproductliesinitsmodularstructure.WithSmallGEO,satellitescanbefittedwiththenecessarycapabilitiesindividuallyandefficiently.Thisresultsinshortintegrationtimesandhighreliability.
SMallgEO – a SMall yET fiNE DESigN
SmallGEO
OHBAG|2013
14 SmallGEO
heinrich hertzTheHeinrichHertzmission
aimsatexploringandtestingnewcommunicationstechnologiesinspace.Thegoalistoofferbroad-bandcommunicationswithevengreaterdataratesformobileusersinthefuture.WiththisthirdSmall-GEOmission,OHBwillbeabletoadditionallyextenditssystemskillsincommunicationssatellitesandtelecommunicationspayloads.
hispasat advanced generation 1
ThefirstSmallGEOmissionbasedonthenewsatelliteplatformwillbelaunchedwithapayloadfortheSpanishsatelliteoperatorHispasatas“HispasatAdvancedGeneration1”.HispasatAG1willbeplacedinageostationaryorbitatanaltitudeof36,000kilometers,whereitwillsupplySpain,Portugal,theCanaryIslandsandSouthAmericawithmultimediaservices.
OHBAG|2013
15SmallGEO
EDrS-CEDRC-SisanOHB-developed
and-builtsatellitefortheEuropeanDataRelaySatelliteSystem(EDRS).EDRSwillachieveanewstandardinspace-basedcommunicationsandwillbeofparticularbenefitforearthobservationapplications.EDRS-Cwillcapturedatafromlow-flyingsatellitesandrelayittotheearth.
ElectraOHBisdevelopingatelecom-
municationssatellitewithasolelyelectricpropulsionsysteminapublic-privatepartnershipwithESAandSES.Electricpropulsionunitsreducepropellantmassrequire-mentsbyupto90percentcomparedwithchemicalpropulsionunits.Theprojectinitiallyentailsplatformdevelopment,whichinafurtherstepistoleadtoajointmissionwithindustrialprojectpartnerSES.
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OHBAG|2012OHBAG|2014
ExoMars
“at the beginning is an idea”interview with frank Negretti, a member of the Management Board of OhB System ag, on the past, present and future of telecommunications satellites at OhB
ThehistoryoftelecommunicationsmissionsatOHBleadsdirectlytotheSmallGEOrange,theOHB-developedmodularandcompactplatformforgeostationarycommunicationssatel-lites.AmemberoftheManagementBoardofOHBSystemAGsince2009,FrankNegrettiisresponsiblefortelecommunica-tionssatellitesandterrestrialapplicationsamongotherthings.
Mr.Negretti,whataretheoriginsoftheideaforSmallGEO?SmallGEOaroseinthegoodoldOHBway.ProfessorManfredFuchshadanunusuallykeenintuitionwhenitcametonewdevelopmentsandrealizedatanearlystagethatelectronicswouldincreasinglyshrinkinsizeandbecomemoreandmorecompact.Hethereforeaskedwhyinspiteofthissatelliteswereconstantlygrowinginsize.ManfredFuchstookasystematicapproachtothisquestionandtheresultsoftheseconsidera-
tionsyieldedtheideaforSmallGEO.Initially,therewasnotmuchsupportinfavorofthisinnovativeideaofarelativelysmallplatformforgeostationarysatellites.Undeterredbythis,however,ManfredFuchsinitiallycontinuedtopursuehisideainasmallself-financedOHBproject.Afterabriefperiodoftime,acoreteamwasestablishedwithpartnercompaniestodeveloptheSmallGEOsatelliteplatform.Atfirst,allwehadwasthefirmbeliefinaninnovativeidea–interestonthepartofcom-mercialcustomersdidnotcomeuntilfarfurtherdowntheroad.
So,itwasinitiallyonlyaboutdevelopinganewsatelliteplatform?Obviously,youalwaysaskiftherereallyisamarketforanewproduct.CommunicationssatelliteswerealreadybeingbuiltinEuropeatthetime.However,therewasnoplatformfromGer-many.Thismeantthatitwasclearfromanearlystatethat
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OHB AG | 2014
Interview
SmallGEO’scommercialsuccesswouldhingeonwhetheritwaspossiblefortheplatformtobeclearlypositionedinthemarketasauniqueproposition.Marketpositioningisprimarilydefinedonthebasisofsizeandmass–inSmallGEO’scase,wehaveatotalmassofthreetons.ThislimitwasnecessarytosetitapartfromotherEuropeantelecommunicationssatellites.Byassign-ingSmallGEOtothissizeclass,wewereabletoensurethatitwasrelativelysmallcomparedtoothergeostationarysatellites.Thisexplainsthename“SmallGEO”,whichwasultimatelycoinedfortherange.
AndhowdidSmallGEObecomeanESAproject?Afterprovidingtheinitialinternalfunding,OHBwasabletocon-vinceESAofthemeritsoftheidea.Obviously,thismeantthatwehadtoenlisttheassistanceofotherESAcountries.WewereluckyenoughtobeabletogainSweden,LuxembourgandtheSwitzerlandaspartnersforthisideaandtoaddcompaniesfromthesecountriestotheSmallGEOcoreteam.WithESAasaninstitutionalpartner,theprojectevolvedintoapublic-privatepartnershipwithSpanishcompanyHispasat.Asasatelliteoperator,Hispasathasaninherentinterestinbeingabletoaccommodateasmanyuplinkanddownlinkchannelsonasin-glesatelliteaspossible.Accordingly,thepayloadwasadjustedtomeetitscommercialneeds,asaresultofwhichthethree-tonmarkwasexceeded.ThisiswhyourfirstHispasatAdvancedGeneration1SmallGEOsatellitehasamassof3.5tons.
TalkingofHispasatAdvancedGeneration1,whatisthecurrentstatusofthisfirstgeostationarytelecommunicationsmission?WehavesuccessfullycompletedintegrationinBremenandshippedthesatellitetotheIABGtestingcenterinOttobrunnfortheensuingenvironmentaltestingcampaign.ThenextmajorgoalistodemonstratethequalityofHispasatAG1inallaspectsofthecampaign.
SmallGEOisalreadybeingusedinfourtelcomissionsandisbeingplannedformanyothers.Doesthismeanthatdevelop-mentofthesatelliteplatformhasnowbeencompleted?
OurbasicapproachtoSmallGEOistobuildthesatellitearoundacentralpipe.Inconceptionalterms,wedividethesatelliteintothepayloadandtheplatform;obviously,thespecificcustomerpayloadisdifferentforeverymission.Ourgoalistokeeptheplatformasconsistentaspossibletoreducethelearningcurvewithacorrespondingeffectontheprice.WiththefirstSmall-GEOmission,the“HispasatAdvancedGeneration1”,wehavecreatedastandardparticularlyforthenecessaryqualificationofprocesses.However,thatdoesnotmeanthatwewillbeusingacompletelyunchangedplatformforfuturemissions.Thisiswhywehaveadoptedanevolutionaryapproach,whichisstand-ingusingoodsteadwiththeEDRS-Csatelliteforexample.WehavesubstantiallysimplifiedthepropulsionsystemforthissecondSmallGEOmissionbuthaveretainedourcentralpipedesignwithoutanychanges.
SowhatapproachdoyoutakewithSmallGEO?“Onesizefitsall”or“tryingtogeteverythingtofit”?Neither.WhiletheSmallGEOwasbeingdeveloped,thelaunchermarketunderwentchange.WiththeSpaceXFalcon9andcur-rentpricestructures,itisverylucrativeforsatelliteownerstohaveaweightclassoptimizedforthelauncher.Andthisisnolongeralwaysa3.5tonsatellite.ThissatellitewasplannedfortheEuropeanmarketasa“secondpassenger”onboardtheARIANE5andisregularlyawaitedbyArianeSpacewithgreatanticipation.Thedifficultyistomakesurethatthesecondpas-sengerisreadyforlaunchingatthesametime.Assatelliteprogramsaremostlyorganizedindependentlyofeachother,thiscansometimesbedifficulttoachieve.Wheneverthefocusisonminimizingcosts,theFalcon9isused,inwhichcasethesatellitemusthaveamassofunderthreetonstoensureopti-mumutilizationofthelauncher’scapabilities.ThisiswhyasubstantialdesignchangewasnecessaryinthedevelopmentofELECTRA,ourplatformwithasolelyelectricpropulsionsys-tem.WhereasSmallGEOrequires1.6toffuel,ELECTRAneedsonly160kgtoreachitsgeostationaryorbit.
“We have created a standard with the SmallgEO
hispasat advanced generation 1.”
OHB AG | 2014
18 Interview
“assuming that the launcher market
stabilizes in the way that is currently being indicated, ElECTra is
an ideal solution.”
WouldOHBalsobeasecondpassengeronboardtheFalcon9?Therearetwoapproacheshere.OnepossibilityisfortheFalcon9tobelaunchedwithonlyasinglesatellite,whichisthenreleasedattheoptimumaltitudesothatthesatellitecangointoopera-tioninitsfinalpositionasquicklyaspossible.Theotheralter-nativeisfortwosatellitestobelaunchedonboardaFalcon9to“share”thelaunchcosts.
Itisnotonlythelaunchermarketwhichishotlycontestedbutalsothecommercialsatellitemarket.IsSmallGEOcompetitive?ThefirstSmallGEOsatellitecurrentlybeingassembledintheclean-roomfacilitiesisthefirstofitskind.Asithasitsoriginsinadevelopmentprogram,itisfittedwithanumberofnewtechnologieswhicharestillawaitingqualificationorin-orbitverification.Althoughitissmall,thesatelliteishighlycomplexandnotyetcost-optimized.Thechallengesposedbythisfirstgeostationarytelecommunicationsmissionareanythingbutsmalland,withtheassistanceofESAandHispasat,weareonasteeplearningcurve.Thenextmissionswilldoubtlessbelesscomplexaswewillhavelearnedalotfromthefirstmissionandtheprocessesarenowinplace.Unlikeresearchmissions,whicharealwaysunique,reproducibilityisimportantwithtelcosatellites.Forusitisclearthatoncewehavecompletedthislearningcurvewewillenjoyacompetitiveedgethankstooursizeandcoststructures.Whatismore,wehaveaperfectanswerforthemarketnichewhichhasarisenasaresultofnewlaunchersforwhichanoptimumplatformisnotyetavailable.
WhatimportancedoesSmallGEOhaveforOHBasawhole?OHB’sforaysintotelecommunicationsprovideitwithafurthermainstayforitsfuturebusiness.Inmyview,thenextobviousstep,namelytoexpandintothecommercialsatellitemarket,willmateriallysupplementOHB’sinstitutionalspacebusiness.Thisisbecause,ontheonehand,wedonotyethaveanypres-enceinthecommercialmarketand,ontheother,thecommer-
cialapproachwillforceustoworkevenmoreefficiently.Obvi-ously,wefaceharshcompetitionbutthemethodsandpro-cesseswhichwewilldevelopasaresultarevaluableandwillboosttheentirecompany’sefficiency.ThereisacommonthreadrunningthroughallofOHB’shistory:Fromtheoutset,wehaveowedoursuccesstoourabilitytofaceuptocompeti-tion.
Letusventureaglanceintothefuture.WhatcanweexpectafterSmallGEO?(Laughs).Beforewestartthinkingaboutthat,wemustfirstsigntheC/Dcontractsforthetwo“HeinrichHertz”and“ELECTRA”missions.InthecaseofHeinrichHertz,amissioninitiatedbytheGermanAerospaceCenter(DLR),weexpecttobeabletosealthecontractthisyear.WithrespecttoELECTRA,wearestillwaitingforthenecessaryEuropeanbudgettobedrawndowninfull.Despitethis,Iassumethatournextsatellitemis-sionwithaSmallGEOplatformwillbeatleastpartiallycom-mercial.
IsitpossiblethatELECTRAwillbethemissionthatcanbereadilyreproduced?Assumingthatthelaunchermarketstabilizesinthewaythatiscurrentlybeingindicated,ELECTRAisanidealsolution.Wearetheworld’sfirstproducertohavelaunchedanoptimizedplat-form.Withthisclearpriceadvantageatthemissionlevel,thereisastrongprobabilitythatsatelliteswithanelectricpropulsionsysteminourweightclasswillquicklytakeasubstantialleadoverchemicalsystems.
OHB AG | 2014
19Interview
HispasatAG1attheendoftheintegrationphaseatOHBSystemAG‘scleanroominBremen(top)andatthebeginningofenvironmentalimpacttestingattheIABGspacecenterinOttobrunn(bottompictures).
20
2014wasayearoffurthergrowthforOHBAG.Hereinbriefarethemaineventsoftheyearinchronologicalorder.
highlighTS 2014
Highlights2014
21
OHB AG | 2014
Highlights 2014
February2014
ElectraIndustryDayatOHBinBremen
OnFebruary4,OHBSystemheldElectraIndustryDayinBrementofindthebestpossiblepartnersfortheconstructionoftheElectrasatellite.Speakingtonumerousrepresentativesfromspacecomponentssuppliersfromallaroundtheworld,projectmanagerDr.AlexanderSchneideroutlinedtheplansforthefirstcommercialsatellitewithafullyelectricalpropulsionsystem,describingthehighstandardswhichitwasnecessarytoobserveinworkingwithOHBandexplainingthebiddingprocess.
OHBisplanningtobuildarangeofproductsinaclasscoveringaroundhalfofthecommercialmarketofaround20telecommu-nicationssatellitesayear:SmallGEOFASTandSmallGEOFLEXforpayloadswithanoutputof2–8kWandamassof200–700kg.
Followingthepresentationsgivenbyhigh-rankingrepresenta-tivesofESA,DLRandsatelliteoperatorSES,OHBinvitedcom-ponentssupplierstosubmitattractivebidsasabasisforgain-ingashareofupto20percentoftheglobalmarket.Toachievethis,itisnecessaryforthesatelliteoperatorstoharnesssav-ingsduringthelaunchprocedurethankstothesubstantiallylighterpropulsionsystembutalsoviaacompetitivepurchaseprice.Thecomponentssupplierswerethereforeaskedtodefinecorrespondingreductiontargetsandtoshowhowtheycouldcontributetomakingtheproductsasuccess.SEShadini-tiallyawardedOHBSystemacontractforthedevelopmentofaplatformforElectra(developmentphaseB1)inOctoberofthepreviousyear.Withthisyear’srequestforproposals,thepro-jectisnowtoenterthenextphaseofrealizationsothatthefirstfullyelectricEuropeansatellitecanbelaunchedin2018.
January2014
CGSawardedcontractforOPSAT3000mission
ItalianspacecompanyS.p.AisparticipatingintheItaliandefenseministry’s“OPSAT(OPticalSATellite)3000”programafterreceivingasub-contractwortharoundEUR44millionfromprincipalcontractorTelespazioS.p.A.providingforthedevelopment,designandassemblyofthesatellite-to-launcherinterfaceadapteraswellaslaunchservices.Thesatelliteistobeplacedinasun-synchronousorbitbyanArianespaceVegalauncher.Scheduledfor2016,themissionwillsupplyveryhigh-resolutionpanchromaticimagesoftheearth,permittingnewgenerationsofdigitalmapstobecreated,detectionmapstobeupdatedanddigitalsurfacemodelstobeproduced.
2014 at a glance
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OHB AG | 2014
Highlights 2014
Fromlefttoright:BrigitteZypries,ParliamentaryStateSecretary,GermanFederalGovernment’sAviationandSpaceCoordinator,Prof.Dr.-Ing.Johann-DietrichWörner,ChairmanoftheManagementBoardoftheGermanAerospaceCenterDLR,JensBöhrnsen,MayoroftheFreeHanseaticCityofBremen,PresidentoftheSenate,andMarcoR.Fuchs,CEOofOHBAG
February2014
Hand-overofthecoremoduleoftheTraceGasOrbiterforExoMars2016
InaceremonyheldonMonday,February3,2014inthepresenceoftheGermanfederalgovernment’snewaviationandspacecoordinator,BrigitteZypries,OHBSystemAGhandedoverthecoremoduleoftheExoMarsTraceGasOrbiter,comprisingthestructure,thethermalsystemandthedrivesystem,toThalesAleniaSpace.
MarcoFuchs,CEOofOHBSystemAGsaid:“ThetimelytransfermarksakeystepinthedevelopmentoftheExoMarsprogram.Weareproudtobepartofthisambitiousinternationalscienceandresearchprogram.”
TheparliamentarystatesecretaryBrigitteZypriesmadeapointofexperiencinglivethecompletionofthismilestoneintheExoMarsprogram.“Thiswasaverypleasantstarttomynewpositionascoordinatoroftheaviationandspaceindustry.WiththeExoMarsprogram,theGermanspaceindustryisdemon-stratingitsoutstandingskills,”BrigitteZypriessaidaftertheceremony.
ExoMarsisajointprojectofESAandtheRussianspaceorgani-zationROSCOSMOS,comprisingtwomissionsthatwillbehead-ingforMarsin2016and2018tofindanswerstothequestionastowhetherlifeeverexistedonthatplanet.Tothisend,itwillbetakingsoilsamplesfromtheplanet’ssurfaceandanalyzingthem.TheExoMarsprogramcoversthekeyentry,descent,landing,drillingandexplorationtechnologies.
TheTraceGasOrbiterandthe“Schiaparelli”landingmodulewillbelaunchedinJanuary2016andshouldreachMarsninemonthslater.ThesecondmissionwiththeESARoverandtheRussiangroundstationisscheduledforMay2018andwillreachtheplanetatthebeginningof2019.ROSCOSMOSisESA’smostimportantpartnerontheExoMarsmission.
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OHB AG | 2014
Highlights 2014
March2014
AndreasLindenthalappointedtotheManagementBoardofOHBSystemAG
TheSupervisoryBoardofOHBSystemAGappointedMr.AndreasLindenthaltotheManagementBoardeffectiveMarch1,2014.Thisadditionalappoint-mentwasinresponsetotheCompany’sstronggrowthoverthepastfewyearswiththeaimofdistributingthebroaderrangeofdutiesacrossalargernumberofManage-mentBoardmembers.
CEOMarcoR.Fuchs,whoislookingforwardtoworkingwiththenewManagementBoardmember,says:“Withhisoutstandingknowledgeoftheindustryandmanyyearsofmanagementexperience,AndreasLindenthalistheidealadditiontothemanagementteamatOHBSystem.”
AndreasLindenthalhasbeenworkingverysuccessfullyintheaviationandspaceindustryformorethan25years.PriortojoiningOHB,heheldnumerousmanagementpositionsatcom-paniessuchasDornier,Jena-Optronik,AstriumandAirbus.“Anextremelyexcitingandbusiness-orientedenvironmentawaitsmeatOHB.IamlookingforwardtothisnewchallengeandhopethatIwillbeabletomakeapositivecontributiontoOHBSystem’ssuccess,”hesaid.
May2014
OHBatILABerlinAirShow2014
Inkeepingwithtradition,theOHBGrouphadajointstandattheILABerlinAirShow,whichwasheldonMay20–25.AlltheOHBcompaniespresentedtheirproductsandtechnologiestotradeaudiencesand,duringthepublicdays,tothegeneralpublic.
TheOHBstandformedpartof“SpaceWorld”,aninternationallyuniquepoolingofspacecompaniesandinstitutionsatanaviationandspaceshow.Accompaniedbythe“SpacePavilion”,anexhibi-tionjointlyorganizedbyESA,DLRandtheGermanAerospaceIndustriesAssociation(BundesverbandderDeutschenLuft-undRaumfahrtindustriee.V.–BDLI),thisyear’sILAagainofferedanidealforumforconferencesandtalksconcerningthecurrentmainissuesinthespaceindustry.AheadoftheESAMinisterialCouncil,whichtookplaceinDecemberinLuxembourg,theILAservedasapodiumfordiscussiononfuturespaceprojectswiththeparticipationofhigh-rankingrepresentativesfrompolitics,researchandindustry.
OHB AG | 2014
May2014
OHBsubsidiaryLuxSpaceawardednewESAcontract
LuxSpacereceivedanESAdevelopmentcontractforthedesignofaninnovativecontainertrackingdevice.TheprojecthasavolumeofEUR2.5million,ofwhichESAisfunding50percent.DevelopedinconjunctionwithitstwoaffiliatesOHBTeledata(Germany)andmegatel(Germany)andprojectpartnerarviem(Switzerland),thefreight-trackingsystemusesawirelessnet-workofsensorstodeterminethepositionandconditionoffreight,transmittingthedataviasatelliteandgroundstations.Inadditiontothetechnicaldesignofthesystem,theprojectpartnersofferacomprehensivereal-timetrackingserviceincludinganalysisandoperatingsupport.
“Thisserviceprovidesaleveloftransparencytrackingtheentirefreightprocesswhichhaspreviouslybeenalmostimpossibletoachievewithconventionalmethods,”saidJochenHarms,man-agingdirectorofLuxSpace.
KnownasRTICM(RealTimeIntelligentCargoMonitoring),theprojectformspartofESA’sARTES20IntegratedApplicationProgram.Thisinnovativefreight-trackingsystemisprimarilytargetedatthemarketsforthetransportationofcontainersandhigh-qualityfreight.
OHBisdevelopingasystemforlocatingthepositionofacontaineranywhereintheworldandatanytime.
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OHB AG | 2014
Highlights 2014
June2014
NewappointmenttoOHBAG‘sManagementBoard
Dr.FritzMerklewasappointedtotheManagementBoardofOHBAG.Consequently,thisbody,whichcomprisedMarcoFuchsandUlrichSchulzfollowingthedeathofProf.Manfred,hasthreemembersagain.
Dr.MerklehadbeenDeputyCEOofsubsidiaryOHBSystemAGfor14years.Withhisdecadesofexperienceintheaviationandspaceindustry,heboastsextensiveknowledgeoftheCompanyandthesectorasawholetogetherwiththenecessaryfarsight-ednesstoimplementtheGroupstrategy.
AphysicistwithadoctoratefromtheUniversityofHeidelberg,Dr.MerklewasguestresearcherattheIBMAlmadenresearchlaboratoryinSanJose,California,fortwoyearsaftercomplet-inghisstudies.Aswellasthis,hespentmanyyearsattheEuropeanSouthernObservatoryworkingontheverylargetele-scope.AftereightyearsasheadofspacetechnologybusinessatCarlZeissinOberkochenandJenaforeightyears,hejoinedOHBinBremen.
June2014
NewproductionhallinSwedenopened
OnJune18,OHBSwedenorganizedaceremonytomarktheopeningofitsproductionfacilitywithfloorspaceof705squaremeters.Morethan120guests,includingSwedishastronautChristerFuglesang,attendedtheceremonyattheCompany’ssiteinKistaScienceCity.OHBSwedennowhastwomissioncon-trolcentersforthePRISMAandOdinsatellitesanda450-squaremeterClass8cleanroomforitsprojects.
June2014
AntwerpSpaceshippingtwoOmnisatsystemstoChina
InJune,AntwerpSpaceN.V.deliveredtwoOmnisatsystemstoinstitutionalcustomersinChina.Theequipmentwillbeusedforcheckinghigh-speedsatellitetransmittersandforreceivingearthobservationdataatgroundstations.AntwerpSpacestaffspenttwoweeksinChina,togetherwithitspartnerAASYSTELtoconductextensivetraining.Followingthis,theOmnisatequipmentwasintegratedinthecustomer’ssystem,afterwhichacceptancetestingwassuccessfullycompleted.
SaysAntwerpSpacemanagingdirectorGuyVanDijck:“Ant-werpSpacehasachievedamajorstepforwardwiththere-introductionofitsOmnisatdataacquisitionsystem.Wearegladtobeabletodemonstrateourcapabilitiesinthismarket.”ThissuccessfuldeliveryofthenewOmnisatsystemwillallowAntwerpSpacetoofferauniquemultichannelsolutiontoitscustomersatanattractiveprice.
26 Highlights 2014
OHBAG|2014
July2014
OHBAGtobeconvertedintoaSocietasEuropae
Attheannualgeneralmeeting,theshareholderspassedaresolutionapprovingtheproposaloftheManagementBoardandtheSupervisoryBoardtoconvertOHBAGintoaSocietasEuropaea(SE).TheCompany’sregisteredofficesandhead-quarterswillremaininBremen.UpontheconversionintoanSE,thepreviousshareholdersofOHBAGwillautomaticallybecomeshareholdersinOHBSE;accordingly,therewillbenochangeintheirshareholderstatus.
ByadoptingSEstatus,OHBisrespondingtothegrowingEuro-peanizationofspacetechnologyandtheGroup’sincreasinginterculturalstructures.ThechangeofcorporatestatuswillpermitmoreuniformandclearergovernanceandpromoteanopenandEuropeancorporateculture.Atthesametime,itwillbeeasierforthefutureOHBSEtoestablishnewbrancheswithintheEuropeanUnion.
July2014
OCAMfilmingATV-5andtrackingtheArianetrajectory
OnJuly30,2014,ESA’sfifthandfinalautomatedtransfervehicle(ATV)“GeorgesLemaître”liftedofffromthespacecenterinFrench-GuayanaonboardanAriane-5ESonamissionheadedfortheISS.OnboardthelauncherwasamodifiedOCAM-2onboardcamerasystemdevelopedbyOHBSystem.Itsuppliedimagesofthelaunch,recordingthereleaseoftheATVfromthelauncherforthethirdtime.ThankstotheintegratedGNSSreceiver,itwaspossibletorecordthelauncher’spositionduringitstrajectory.
Onthismission,OHBSystemwasresponsibleforthehardwareandsoftwareoftheon-boardsystemandforthevideo-process-ingpartofthegroundsegment,supportingthemissiononsiteandevaluatingthedata.
MTAerospacesuppliedtheboostercasingandthelargetankdomesforthecentralandupperstagesoftheAriane-5ESlauncher.OHBSystemwasadditionallyresponsiblefortheentirecablingandtheprotectivemeteoriteprotectionshieldfittedtotheATV.
July2014
LuxSpaceawardedESAcontractfortwomicrosatellites
LuxSpacesignedacontractwithESAattheFarnboroughAirShowintheUnitedKingdomfortheproductionoftwomicro-satellites.Thecontractisestablishingaprivatepublicpartner-ship,inwhichthefinalcustomer–exactEarthofCanada–willmakesignificantinvestmentsalongsideESAandtheparticipat-ingEuropeancompanies.ThetotalcontractvolumeforthetwosatellitesstandsatEUR30million.
“ThisisthelargestcontractLuxSpacehaseverreceivedasaprimecontractorandconstitutesthenextstepinitsdevelop-mentasasystemsintegrator,”saidJochenHarms,managingdirectorofLuxSpace.Thetwosatellitesaretobelaunchedin2018and2019respectively.Theywillhaveaweightofapproxi-mately100kgandprovideveryhighqualityAISdataforvesseldetection.
27Highlights 2014
OHBAG|2014
July2014
OHBholding“topping-outcelebration”foritsnewbuildinginOberpfaffen-hofen
OnJuly23,2014,OHBhelda“toppingoutcelebration”foritsnewbuildinginOberpfaffenhofennearMunichinthepresenceof150honoraryguests.ThenewbuildingwillprovidehighlymodernofficefacilitiesforallOHBemployees.
MarcoFuchs,ChiefExecutiveOfficerofOHBAG,isconvincedthattheinvestmentwillpayoff:“WithournewfacilityinOberp-faffenhofen,wewillbeabletoachieveseveralgoalsatthesametime:wewillbeexpandingoursatelliteintegrationandtestingcapabilitiesandprovidingourstaffwithasinglejointbuilding.Atthesametime,weareinthedirectvicinityoftheGermanSpaceAgencyDLR.”
Fromlefttoright:Prof.Dr.VolkerLiebig,ChristineHaderthauer,Dr.GerdGruppe,MarcoR.FuchsandDr.FritzMerkleatthe“topping-outcelebration”
Thetotalfloorareaexceeds14,000squaremeters.Withanareaofjustunder6,000squaremeters,aspaciousclean-roomcomplex(ClassISO8downtoISO5)isbeingassembledcom-pletewiththenecessaryextensivetechnology.Afurther1,000squaremetersareavailableforlaboratories.
OHB AG | 2014
28 Highlights2013
July2014
CGSawardedESAContractforNEOSTEL
TheNEOSTELProjectisdevelopedintheframeworkofanESAProgramnamedSpaceSituationalAwarenessNearEarthObjectsSystem(SSANEO),whichtargetistoimplementaNet-workofOpticalGroundSensorsthatwillcontributetotheSur-veyandTrackingofnaturalSpaceObjects,suchasAsteroids,Comets,etc.,thatcouldcomecloseandpotentiallyimpactwiththeEarth.
ThisnetworkwillbebasedonGroundOpticalTelescopesthatshallallowtocompletelyscanthefullvisibleskyeverynight.Thisobservationstrategy,whichiscalled‘WideSurvey’andiscomplementarytothetraditional„Deepsurvey“approach,willallowthediscoveryoftheNearEarthObjects(NEO)threatswithatimeadvantagesufficienttoadoptbothpreventionandmitigationactions,thusallowingtoeitheravoidorreducecata-strophicevents.
Theapplicationofthenew„WideSurvey“NEOObservationStrategywillbepossibleonlybyexploitingOpticalInstrumentscharacterizedbyanextremelylargeFieldofViewbutstillensuringthenecessaryaccuracy,inordertoreducethenum-berofrequiredtelescopesdowntoaneconomicallyaffordablefigure.
TheoutcomesoftheNEOSTELProgramwillputthebasisfortheimplementationanddeploymentofthefirst„NEOFly-EyeTelescopePrototype“andofallthesuccessiveInstruments,whichwillbeusedtobuilduptheentireNEOWideSurveyOpti-calObservationNetwork.
OHB AG | 2014
Highlights2013 29
OHB AG | 2014
August2014
FirsttwoGalileo*FOCsatelliteslaunched
ThetwoGalileoFOC*satellitesdevelopedandbuiltbyOHBSystemAGwerelaunchedonboardaSoyuzrocket,whichliftedofffromtheKourouspacecenterinFrench-GuayanaonAugust22,2014.Shortlyafterthis,theysenttheirfirst“signoflife”totheEuropeanSpaceAgency’smissioncontrolcenter(ESOC)inDarmstadt.However,afterthesatelliteswerereleasedfromtheupperstageofthelauncher,itbecameapparentthattheyhadnotbeenplacedintheplannedorbit.
AttheendofAugust,theteamatthecontrolcenteroper-atedbytheEuropeanSpaceAgencyESAinDarmstadtcon-firmedthatthetwosatelliteswereingoodhealthandwererespondingonanominalandstablebasisinorbit.Theywerethermallystable,hadasteadyalignmenttothesunandwereproducingsufficientpower.Alltheplatformsubsystemshadbeentestedandfoundtobeworkingproperly.
OHBsupportedtheinvestigationstoanalyzepossiblesce-nariosforsalvagingthesatellites.
*seeGlossary
31
OHB AG | 2014
Highlights 2014
August2014
ConstructionofanewproductionfacilityforMTAerospace
OnAugust25,2014,MTAerospaceAGsymbolicallyopenedthegatestoitsnewproductionfacilityinBremenfortheupperstagetankfortheArianeprogram.“TheideaofmovingindirectlynextdoortoourpartnerAirbusDefence&Spacewasthelogicalandrightthingtodo,”stressestheCEOofMTAero-space,HansJ.Steininger.“Inadditiontotheimprovedlogisticsfortheproductionoftheupper-stagetank,itdemonstratesthatGermanindustryispullingonthesameendoftheropewhenitcomestopreservingindependentEuropeanaccesstospace.”
MTAerospacereceivedcontractsforthedevelopmentandqua-lificationofthemetallicpropellanttankforthenewAriane-5MEupperstagefromAirbusDefenceandSpace,theprincipalcon-tractorfortheAriane-5MEprogram,andtheEuropeanSpaceAgencyESA.ThedesignoftheproductionfacilityalreadytakesaccountoftherequirementsofthefutureAriane-6upperstage.
BrigitteZypriesandJensBöhrnsen(middle)attendedthesymbolicopeningofthenewproductionfacility.
*seeGlossary
32 Highlights2014
OHBAG|2014
We.Create.Space.
WE. CREATE. SPACE.
September2014
MergerofOHBSystemandKayser-Threde
OnSeptember1,2014,OHBSystemAG,Bremen,andErwinKayser-ThredeGmbH,Munich,mergedtoformasinglecompanyunderthenameofOHBSystemAG.Bytakingthisstep,OHBAGispoolingitstwosubsidiaries’capabilitiesandcapacities.
“TwooutstandingcompaniesinthespaceindustryaretodayjoiningforcestobecomeasinglesatelliteandpayloadsystemsspecialistwhichwillbeassuminganewroleintheEuropeanmarketonaccountofitsscaleandorganizationalstructure,”saidCEOMarcoFuchs.“Inthisway,wewillbeabletoleverageourowninternalskillsmoreeffectivelyandthusoperatewithheightenedefficiencyandcompetitiveness.Wewillbebenefit-
ingfromtheresultantadvantagesasmuchasourcustomerswillbe,”Fuchsadds.
Withtheirdifferentskills,thetwoformeraffiliateshadprevi-ouslyalreadybeenworkingjointlyonmajorprojectssuchastheMTGweathersatellitesandtheEnMAPenvironmentalsat-ellite.Accordingly,themergerisalogicalsteptoreinforceandoptimizethejointactivitiesonasustainedbasisandtopositionthetwolocationsforthechallengeswhichtheyfaceintheiroperations.
TheoriginofOHBSystemAG’snewlogoandmotto
33Highlights 2014
OHBAG|2014
September2014
LuxSpaceawardedESAdevelopmentcontract
LuxSpace,navama–technologyfornatureandWWF,theglobalconservationorganizationwereawardedanESAdevelopmentcontractforthedesignofaninnovativefisherymonitoringsystem.
Thesystemwillexploitsatellitetechnologyinthesurveillanceoffishingactivitiestopromotelegalandtransparentfishingoperations.Targetedatcertifiedsustainablefisheries,thenewsystemretracestheroutesandactivitiesoffishingvesselsandassessestheconformityoffishingoperationswithsustainabil-itystandardsandrules.Moreover,thisinformationwillbemadeavailabletoseafoodcustomersviaasmartphoneapp.“Thispromisingapplicationshowshowsatellitetechnologycansupportfisherieswhicharecommittedtosustainablefishingpracticesandcansignificantlyenhancethecredibilityofeco-labeledseafoodproductsamongconsumers”,saidJochenHarms,ManagingDirectorofLuxSpace.
Thetechnologycanvisualizeroutesoffishingvesselsandrec-ognizecertainfishingactivities.Userscannoticeifboundariesofmarineprotectedareasorfishnurseryareasarebeingrespected.
October2014
CRONUSpassingfirsthurdle
MTisconductingtheCRONUSproject(CRyogenicOptimizedNewUpperStageDemonstrator)undertheESAFLPPprogram,whichisperformingpreparatorydevelopmentworkonfuturelaunchvehicles.Theprojecthasnowtakenadecisivestepforward.
CRONUSisatankdemonstratorwithasandwichcommonbulk-headrequiredtocheckandverifythetechnologiestobeutilizedinafutureAriane-6upperstage.Proofoftherequisitetechno-logicalmaturity(TRL6inthiscase)wasadecisiveconditionforparticipationinthenewAriane-6upperstage.
Forthisreason,itwascrucialfortheESAmanufacturingreadi-nessreviewconductedatMTAerospaceonSeptember9,2014tobecompletedwithahighscorefreeofanynegativeorcriticalfindings.Alloftheprojectschedule,particularlythecompletionofthenecessaryhardwarecomponent,wasobserved.Thankstothethoroughpreparations,itwaspossiblefortheESAreviewboardtoconcentrateonthemaintechnicalaspectsoftheMTdesign.ESAwasimpressedbythequalityofthedevelopmentworkwhichMTAerospacehadcompletedonatighttimeschedule.
CRONUS:DemonstratorforAriane-6upper-stagetank
34
OHB AG | 2014
Highlights 2014
October2014
OHBSwedenbuildingfirstInnoSat
TheSwedishspaceagencySNSBawardedOHBSwedenacon-tractfortheconstructionofthefirstInnoSatsatellite.TheawardhadbeenprecededbyastudyinwhichtheteaminSwedenhaddevelopedaninexpensiveandflexiblesatellitesystemwhichcanbeadjustedtomeettheneedsofdifferentkindsofresearchmis-sions.WithavalueofaroundEUR13million,thefirstmissionisknownasMATS(MesosphericAirglow/AerosolTomographyandSpectroscopy).Opticalinstrumentsfittedtothe50-kgsatellitewillmeasuremesosphericgasesandluminescenceataltitudesof80–100kilometers.MATSistotracktwofullsummersinthenorthernandsouthernhemispheresfromanorbitaround600kilometersabovethesurfaceoftheearth.
OHBSwedenwillbebuildingthesatelliteastheprincipalcontractorincollaborationwithAACMicrotech,OmnisysandSwedishresearchinstitutions.MATSistogointooperationin2017.SNSBplanstolaunchafurtherresearchsatelliteeverythreeyears.ThecontractalsoprovidesfortheinexpensivesatellitedesigntobemarketedoutsideSweden.
October2014
LunarmissionmemoryofProf.ManfredFuchs
OHBconductedalunarmissioninmemoryofProf.Dott.Ing.h.c.ManfredFuchs.The4M(ManfredMemorialMoonMission)wassuccessfullylaunchedonboardaLongMarch3fromtheXichangSatelliteLaunchCenter,China,onOctober23,2014.At21:31hoursCEST,LuxSpaceannouncedthatthefirst4MsignalshadbeenpickedupinBrazil.
4MwasasmallspacecraftwhichtransmittedmessagesinmemoryofProf.ManfredFuchsandgreetingsfromallaroundtheworld.Inaddition,itcarriedaradiationexperimentonboardtomeasurethesizeofanappropriateradiationshieldingandamultilaterationtrialforspacecraftnavigationforthenextMoonmission.LuxSpacewasresponsibleforthetechnicalmanage-mentofthemissionandtheassemblyoftheprobe.“Thisisthefirst-everprivatelyfinancedlunarmission,”saidJochenHarms,managingdirectorofLuxSpace.
ThemissionwassuccessfullycompletedinearlyNovemberaftermorethan250operatinghours.Duringitspatharoundthemoon,allmessagesweretransmittedseveraltimesandpickedupbydozensofradioamateurstationsaroundtheglobe.
Illustrationofthe4MsatellitebuiltbyLuxSpace
35
OHB AG | 2014
Highlights 2014
November2014
CGSS.p.A.awardedcontractformicrowaveimager
OnNovember10,2014,CGSS.p.A.(CompagniaGeneraleperloSpazio)signedacontractwithAirbusDefence&Spacefortheassemblyofthesecond-generationmicrowaveimager(MWI)fortheMetOpsatellites.Themicrowaveimagerisanadvancedinstrument,whichwillbefittedtotheSeriesBsatellites.TheMicroWaveImagerinstrumentwillprovideEurope’snationalmeteorologicalservicesand,byextension,theinternationalusersandsciencecommunitywithunprecedentedandhigh-valuedataformeteorologicalandclimatemonitoring.
BysigningthiscontractEUR134million,CGSisassumingresponsibilityfordesigninganddevelopingtheMWIfromPhaseB2throughtofinalin-orbitverificationofthreeflightmodelsfordeliverytoprincipalcontractorAirbusDefence&Space.
TheMetOp-SGsatellitesconstitutethespacesegmentoftheEUMETSATPolarSystemSecondGeneration(EPS-SG)programandcomprisetwoseriesofsatellites,“SatelliteA”and“Satel-liteB”.Eachseriesisnominallymadeupofthreeunits.TheMetOp-SGsatellitesarebeingjointlydevelopedbytheEuro-peanSpaceAgencyESAandEUMETSAT.
October2014
ISS“PK-4”researchlaboratorysuccessfullylaunched
At08:09hoursCETonOctober29,2014,theEuropean-Russianplasmacrystallaboratory“PK-4”liftedofffromtheBaikonurCosmodromeonboardaSoyuzlauncherheadedfortheInter-nationalSpaceStationISS.ItdockedwiththeISSintheearlyafternoonasplanned.Aswiththeprevioustwolaboratories,OHBSystemAG(previouslyKayser-ThredeGmbH)wastheprimecontractorandresponsibleinthiscapacityforallsystemtasks.“PK-4”isapermanentinstallationwithintheEuropeanColumbusresearchmoduledesignedtoconductexperimentsoncomplexplasmas.
OHBSystemhasdevelopedandassembledtworacksforelectricitysupplies,communicationsanddatacollection.Inaddition,OHBSystemfabricatedandintegratedalargepartofthemechanicalstructureaswellasthecontrolandoperatingsoftwarefortheexperiment.The“PK-4”isbeinginstalledintheEuropeanPhysiologyModule(EPM),whichwasalsodevelopedbyOHBSystemAGandisafixedfacilityforstandardpayloadsintegratedintheEuropeanspacelaboratory.
36
OHB AG | 2014
Highlights 2014
November2014
OHBawardcontractsfortwostudiesonthePLATOcomethunter
ThePLATO(PLAnetaryTransitsandOscillationsofStars)mis-sionunderESA’sCosmicVisionprogramisexploringexoplan-ets.OHBSystemAGhasbeenawardedtwoB1studies:UnderESA’sscientificprogram,itwillbelookingintothemissionandsatellitedesign.OnbehalfofDLR,itisexploringthescopeforintegratingthePLATOinstrumentcomprising34individualtel-escopesplusthenecessaryelectronics.
Thespacesegmentismadeupofaservicemodule(SVM)andapayloadmodule(PLM).TheSVMwillbedevelopedinBremenleveragingthesatellitemissionexperienceavailablethere,whiletheMunichlocationwillhandlethePLMincludingthe
payload.TheESAstudyhasacontractvalueofEUR2.5millionandatermof18months.
TheDLRstudyonthescopeforintegratingthePLATOinstru-mentisworthEUR1.8millionandhasatermofagood18months.Inthisway,OHBwillhaveanopportunityofusingthestudiesintherealizationphase(B2/C/D)asasystemleadman-agerforthesatellitesandthepayloadforESAandDLR.
PLATOistosearchforplanetsoutsideourgalaxy
37
OHB AG | 2014
Highlights 2014
December 2014
ARIANE 6 approved at the ESA Ministerial Council
The responsible ministers of the 20 members states of the Euro-pean Space Agency ESA as well as Canada met in Luxembourg on December 2, 2014. They passed resolutions approving total funding of almost EUR 6 billion. The German federal government will be contributing a total of some EUR 1.4 billion over the next few years. Thus, Germany alongside France will be the largest contributor to ESA.
Explained State Secretary Brigitte Zypries, the German federal government’s coordinator of aerospace/aeronautics: “The 20 members states of the European Space Agency ESA agree that looking forward European space flight is to continue playing a key role in the world. This is underscored by the decision to go ahead with the future European launch vehicle Ariane-6. This not only secures European access to space. Moreover, the develop-ment and production of the launcher will ensure that technologi-cal skills are preserved and developed in Germany.”
Germany will be funding an average of EUR 180 million per year and, thus, assuming around 22 percent of the new Ariane-6 program.
In addition, it will be contributing an additional EUR 310 million to the operation of the ISS through 2017 and stepping up its share in the ESA ExoMars program by EUR 15 million.
38
OHB AG | 2014
Highlights 2014
39
OHB AG | 2014
Highlights 2014
December2014
FirstGalileo*-FOCsatellitesuccess-fullytestedafterorbitmaneuver
ThefirstGalileoFOCsatellitedisplayedexcellentpayloadcapa-bilitiesinDecember,competingthepayloadtestingcampaignsuccessfullyonDecember18,2014.After“Doresa”–asthesatelliteiscalled–reacheditsnewtargetorbit,itwaspossibletoactivatethenavigationpayload.ItstartedsendingitsfirstnavigationsignalssuccessfullyonNovember29,2014.
Theextensivetestingcampaignwascommencedafterthesatellitewasmovedtoaorbitmoresuitablefornavigationpurposes.
Atotalofelevenorbitmanoeuverswereperformedtobudgethesatellitestepbystepupwardsfromthelowestpointofitsorbit.Atthesametime,itwaspossibletosubstantiallyreducethesatellite’sexposuretothesuninitsneworbit,thusensu-ringreliablelong-termoperations.Nowthattheorbitismorecircular,theearthsensorcanbeusedcontinuously,meaningthatthemainantennaisalignedtotheearthandallowingthenavigationpayloadtobeactivated.
Itisimportantforthesatellitetocrossthesamepositiononthesurfaceoftheearthonceevery20daysinitsneworbitsothatthegroundtrackcanbesynchronizedwiththeentireGalileoconstellation.
“Milena”,thesecondGalileoFOCsatellitehasnowalsobeensuccessfullymovedintoamoresuitableorbit.
*seeGlossary
40 OHBstock
150
140
130
120
110
100
90
Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb.
TecDAX
DAX
OHB AG
OHB stOck12% gains in OHB stock in the course of the year
40 OHB stock
OHB stock
DAX over 10,000 points for the first timeThe2014stockmarketyearbrokeanumberofverydifferentrecords.Thus,forexample,theGermanbenchmarkDAXindexpassedthepsychologicallyimportant10,000markforthefirsttimeonJune5,2014,whileroughlyonemonthlatertheUSDowJonesIndexexceeded17,000pointsforthefirsttimeever,goingontoreachafurtherall-timehighofmorethan18,000pointsinDecember.RecordswerealsobrokenbyIPOs,withtheflotationoftheChinesecompanyAlibabageneratingproceedsofUSD25billion.Inthefinalquarteroftheyear,theEuropeanCentralBank(ECB)lowereditsratestoahistoricallylow0.05%.TheaccommodativemonetarypolicypursuedbyMarioDraghitoaddressEurope’seconomicweaknessalsocausedtheeurotodeclineanddepreciateagainsttheUSdollarby15%inthesec-ondhalfoftheyear.Inanefforttoencouragelending,anega-tiveinterestrateof0.2%wasimposedinthesecondhalfoftheyearonbalancesheldbycommercialbankswiththeECB.Stockmarketsalsotooktheircuesfromgeopoliticalevents,particu-larlytheCrimeanconflict,whichwasstillongoingasofthedateonwhichthisreportwenttopressandresultedineconomicsanctionsbeingimposedonRussia.ThistriggeredaslideinpricesontheMoscowstockexchangeandexertedpressureontheruble.
12% advance in OHB stock in the course of the yearTheGermanbluechipDAXindex,themidcapMDAXindexandthesmallcapSDAXindexclosedtheyearwithgainsof3%,2%and6%,respectively,whiletheTecDAXroseby18%inanenvi-ronmentfavoringtechstocks.OHBstocklargelytrackedthemarketasawholeandwithgainsof12%wasbeatenonlybytheTecDAX.Averagedailytradingvolumesroseslightlyoverthepreviousyearto13,771shares(previousyear:13,322).
Stock buyback programInaccordancewiththeauthorizationgrantedattheannualgen-eralmeetingonMay19,2010,theManagementBoarddecidedonSeptember13,2011toexecuteastockbuybackprogram.Forthispurpose,upto250,000sharesaretobepurchasedviathestockmarketviaanindependentbank,whichhasbeenretainedtocompletetheprogram.Inaccordancewiththeauthorizationgrantedattheannualgeneralmeeting,thestockboughtbackmaybeusedforseveraldifferentpurposes,e.g.toplacetheCompany’ssharesinforeignstockmarkets,topayfortheacquisitionofothercompanies,partsofcompaniesorsharesinsuchcompaniesandtoissuesharestotheCompany’semployees.
Treasury stockAsofDecember31,2014,OHBAG’streasurystockcomprisedatotalof80,496shares,equivalentto0.46%ofitsissuedcapital,i.e.unchangedinnumbersinceDecember31,2013.
Investor relations activitiesTraditionallyheldinFebruary,thecapitalmarketdaymarkedthebeginningoftheinvestorrelationsyearagain.OnFebruary25,theManagementBoardreleasedanoverviewofOHBAG’scurrentprojectsandguidanceforthemainfinancialsforthecurrentyear.Thefinalresultsforthepreviousyearwerean-nouncedonthemorningofMarch20attheannualpresscon-ferenceheldinBremenandduringtheanalystconferenceheldonthefollowingafternooninFrankfurt.Afterpublication,thefiguresforthequarterwerediscussedwithanalystsintele-phoneconferencesonthesameday.Inthecourseoftheyear,theManagementBoardandIRofficersattendedcapitalmarketconferencesandroadshowsinParis,Munich,AugsburgaswellasDeutschesEigenkapitalforuminFrankfurt/Main.
OHB stock data
ISIN DE0005936124
Ticker OHB
Tradingsegment PrimeStandard
Sector Technology
Subsector CommunicationsTechnology
Indices PrimeAllShare,TecAllShare,CDAX
DesignatedSponsor DZBANKAG,HSBCTrinkaus&BurkhardtKGaA
Issuedcapital EUR17,468,096
Sharetype No-par-valueordinarybearershares
41
OHB AG | 2014
OHB stock
OHB stock parameters in EUR (Xetra)
2011
End-of-yearprice 11.40
Highfortheyear 17.45
Lowfortheyear 8.25
Marketcapitalization(endofyear) 199millions
Averagedailytradingvolumes(Xetra+floor) 20,346shares
Price/earningsratio(P/E)(finaltradingdayoftheyear) 14.62
Earningspershare(EPS) 0.78
Dividendpershare 0.35
Dividendyield(endofyear) 3.07%
* Subject to approval by the shareholders
2014
19.70
25.06
17.45
344millions
13,771shares
13.31
1.48
0.37*
1.88%
Adoption of SE status approved at the annual general meetingTheCompany’sannualgeneralmeetingwasheldatitsheadofficeinBremenonJuly2,2014,approvingadividendfor2013ofEUR0.37pershare(unchangedoverthepreviousyear).Accordingly,thetotaldistributionamountforthe17,387,600dividend-entitledsharescametoEUR6.4millionagain.TheremainingunappropriatedsurplusofEUR16.0millionasshowninthefinancialaccountspreparedinaccordancewithGermanGAAP(HGB)wascarriedforward.AfurtheritemontheagendaconcernedtheCompany’sconversionintoaSocietasEuropaea(SE).Accordingly,theshareholderspassedaresolutionapprov-ingtheplanofMay20,2014,underwhichOHBAGwastobeconvertedintoaSocietasEuropaeaandapprovingthearticlesofincorporationofOHBSEattachedtothisplan.Theotheritemsoftheagenda,specificallytheratificationoftheactions
Analyst ratings
Target price Date Bank in EUR Rating
March2015 WGZBank 25.00 Buy
February2015 DZBANK 24.00 Buy
February2015 HSBCTrinkaus& Burkhardt 24.00 Overweight
November2014 Commerzbank 22.00 Hold
2013
17.55
18.63
14.76
307millions
13,322shares
15.67
1.12
0.37
2.11%
2012
15.15
16.50
11.16
265millions
11,580shares
17.82
0.85
0.37
2.44%
Freefloat (5,208,880shares)
Treasury stock(80,496shares)
Issued capital:17,468,096 shares
Fuchs pool (12,178,720shares)
OHB AG shareholder structure on December 31, 2014
29.82%
0.46%
69.72%
oftheManagementBoardandSupervisoryBoardandtheap-pointmentofanauditorfortheannualandconsolidatedfinan-cialstatements,werealsopassedwithlargemajorities.
42
OHB AG | 2014
OHB stock
Impressions of the 11th Capital Market Day on February 12, 2015 in Bremen.
43
OHB AG | 2014
Group management report
GrOup manaGement repOrtManagement report for the year fromJanuary 1, 2014 until December 31, 2014
Consolidated total revenues over four years in EUR millions
632.7
700.1
555.3
773.0
45 Businessperformanceandunderlyingconditions47 BusinessPerformance52 Salesandorders52 Resultsofoperations53 Assetsandfinancialcondition54 Employees54 Researchanddevelopment56 Qualityandenvironmentalmanagement,
dataprotectionandprocesses
57 Significanteventsoccurringaftertheendoftheperiodunderreview
58 Outlook59 Internalcontrolandriskmanagement59 Opportunityandriskreport62 Compensationreport62 DisclosuresinaccordancewithSection315(4)
oftheGermanCommercialCode63 Corporategovernancedeclaration
2011 2012 2013 2014
44
Group management report
I. BUSINESS PERFORMANCE AND UNDERLYING CONDITIONS
1. OHB AG’s business performance in 2014TheCompany’sbusinessperformanceintheyearunderreviewandtheresultantfavorableperformanceindicatorslargelyliveduptotheManagementBoard’spositiveexpectations.InFebruary2014,theCompanypublishedfull-yearguidancefortotalrevenues,EBITDAandEBIT.Inthecourseoftheyear,theguidancefortotalrevenueswasadjustedduetothedeconsoli-dationofAerotechPeissenberg,whichhadpreviouslybeenconsolidated.Thefull-yearforecastfortotalrevenuesandEBITwasexceeded,whileEBITDAfellslightlyshortoftheforecast.TotalrevenuesrosefromEUR700millionin2013toEUR773million,whileEBITclimbedfromEUR36.4milliontoEUR40.4millionandEBITDAfromEUR52.8milliontoEUR53.4million.Inaddition,consolidatednetincomeafterminorityinterestsrosefromEUR19.4milliontoEUR25.7millionandearningspersharefromEUR1.12toEUR1.48.ThehighvolumeofordersonhanddroppedslightlyfromEUR2,340millioninthepreviousyeartoEUR2,106millionintheyearunderreviewduetothebalanceoforderintakeandthepercentageofprojectcomple-tion.
2. Underlying economic conditionsLastyear,Germangrossdomesticproduct(GDP)expandedby1.6%and,hence,agooddealmorequicklythaninearlieryears
(0.4%in2013,0.7%in2012).NearlyallsectorscontributedtoGDPgrowth,withthegreatestgainsrecordedinconstruction,manufacturingandservices.Ontheutilizationside,consump-tionprovedtobethemaindriver:Thenumberofdomesticem-ployeesroseagainoverthepreviousyear,reachinganewhighfortheeighthconsecutiveyear.Lastyear,42millionpeopleoutoftotalpopulationof82millionweregainfullyemployedinGer-many.Thispositivetrendinthelabormarketwasaccompaniedbyadeclininginflationrate,whichrecededfrom1.5%inthepreviousyearto0.9%in2014inGermany.
3. Underlying conditions in the sectorAlthoughspaceisonlyanicheindustry,itmakesacrucialcon-tributiontotheeconomyasawhole.Navigationsatellites,forexample,allowITsystemstobesynchronizedglobally,provid-ingthebasisforglobalfinancialtransactionstobeexecutedanddocumentedreliably.Thedatacollectedbyweathersatel-litesensuressafeflyingconditionsandmorefrequentflights,improvedefficiencyinagriculture,theavoidanceofpoorhar-vestsandplannableleisuretravel.Spacetravelmakesanim-portantcontributiontoimprovingenvironmentalprotectionandplaysadecisiveroleincivilandmilitarysecurity.Inotherwords,spacemaybeasmallindustrybutitisofcrucialimpor-tanceforamodernandefficienteconomicsystem.Theroleplayedbyspaceactivitiesvariesfromregiontoregion.Howev-er,theyarerecognizedasbeingakeyindustrybothpolitically
2012
0.85
2008
0.61
2009
0.96
2011
0.78
2010
0.55
2007
0.84
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0
2013
1.12
2014
1.48
Earnings per share
Over eight years in EUR
45
OHB AG | 2014
Group management report
andbysocietyatlargeinEuropeandNorthAmericainparticu-lar.Giventhelong-termnatureoftheprogramsandprojects,macroeconomicconditionsinindividualcountrieshaveonlyalimiteddirectimpactoncurrentprogramsandprojects.Moreo-ver,dependingontheregioninquestion,commercial,civilandmilitaryspaceprogramsareoftenlinkedwitheachothertoverydifferingextentsorarecompletelyindependentofeachother.WhereasinEuropetheprogramsinitiatedbytheEurope-anSpaceAgency(ESA)andtheEuropeanUnion(EU)ensurestableperformancethankstotheirlong-termplanninghori-zons,theUSgovernmenthasmadewhatinsomecasesaredrasticcutstothebudgetsofNASAandotheragencieswhicharepotentialcustomersforspaceprojectsoverthelastfewyears.However,signsofasubstantialimprovementemergedin2014.Thus,NASAwillhaveabudgetofoverUSD18billionagainin2015,risingbyaroundUSD0.6billionin2016.Aftertwodecadesofuncertaintyastotheirfuturedirection,spaceactivi-tiesintheRussianFederationhavereceivedanewperspectiveagain.Thatsaid,itisnotpossibletoassesstheramificationsforspaceprogramsofthecurrentsituationintheRussianeconomyfollowingthemeasurestakenbytheWestinresponsetotheUkraineconflictandthedeclineinoilprices.Inparticu-lar,theUnitedStateshassubstantiallyscaledbackjointactivi-tieswiththeRussianFederationbutstillremainsdependentonRussiaforthetransportationofsuppliesandastronautstotheInternationalSpaceStationISS.Itexpectstoregaintheinde-pendencewhichithadpriortotheterminationoftheShuttleprogramfrom2017,whennationalcommercialoperatorsbe-comeavailable.China,India,SouthKorea,TurkeyandBrazilarestillpursuingtheirambitionsofestablishingtheirownna-tionalspaceflightprogramsandinfrastructures.Theestab-lishmentofanationalspacestationandalong-termsuccessfullunarlandinginitiallywitharoverandlaterwithastronautsformkeyelementsoftheChinesespaceprogram.
SpacetravelattractedagreatdealofmediaattentioninEuropeinparticularin2014.Foronething,the“BlueDot”missionwithGermanESAastronautAlexanderGerstleftastrongim-pressiononyoungpeople.HecaptivatedhundredsofthousandsofFacebookandTwitterfollowerswithhisreportsfromspace.
Aswellasthis,theEuropeanRosettamissioncausedanin-ternationalsensationwhenthePhilaeprobelandedonthesur-faceofcomet67PChuryumov--Gerasimenko.Aftertravelingmorethantenyearsthroughspaceandhibernatingforthreeyears,Rosettafinallyreachedthecomet,successfullyreleasingthePhilaeprobe.Despitetheratheruncontrolledlanding,itwaspossibleforalargepartoftheplannedmeasurementsandrecordingstobecompleted.Thedatacollectedisstillbeingevaluatedandisexpectedtoprovideimportantinformationontheoriginsofoursolarsystemandtheearthaswellaslifeonourplanet.OHBSystemalsomadeasmallcontributiontoRo-settaintheformofanelectronicunitsuppliedbyOHBSystem
Munich.ThelaunchofthefirsttwoGalileo*satellitesalsomarkedakeymilestoneforOHBin2014,albeitonewhichwasovershadowedbythemishapoccurringonboardtheSoyuzlauncherafteritliftedofffromtheKourouspacecenter.Fol-lowinganadjustmenttotheirorbit,thetwosatelliteswentintooperationandarefunctioningsuperbly.Consequently,theensuinglauncheswillberesumedwithoutanymajormodifica-tionstothesatellitesinthefirstquarterof2015.HeldonDe-cember2and3,2014,theESAMinisterialCouncilwasofcrucialimportanceforEuropeanspacetechnologybotheconomicallyandintermsofprograms.Inadditiontoimportantbudgetdeci-sionsforthenexttwoyears,adecisionwasparticularlymadetogoaheadwiththenewAriane6Europeanlauncher.TheincreasedGermancontributionisanessentialsteptowardsachievingabalanceddistributionoftasksinthejointEuropeanAriane6project.Aswellasthis,theEuropeaninvolvementinISSuntil2017aswellasfurtherfundingfortheEuropeanEx-oMarsmissiontoMarswereapproved.LastyearalsosawthelaunchonJuly30,2014ofthefifthandfinalAutomatedTransferVehicle(ATV)“GeorgesLemaître”onboardanAriane-5.WithitspurposeoftransportingsuppliestotheISSandcorrectingitsorbit,thismissionwasofparticularsignificanceforEurope.ATV5wasincineratedintheatmosphereonFebruary15,2015.InGermany,thenationalspacetechnologybudgetandthecountry’scontributionstotheESAprogramsofaroundEUR770millionp.a.wereincreasedslightlyin2014asplanned.TheGermanfederalgovernment’songoingcommitmenttospacetechnologywasdemonstratedattheESAMinisterialCouncil.DemandforAriane5launchservicesremainssteady.Theen-duringtechnicalsuccessoftheAriane-5programwithatotalof63consecutivesuccessfullaunchesasoftheendof2014shouldensureareliablelaunchcadenceatArianespaceagainin2015.
4. Organizational and legal structure of the GroupAsanaerospaceandspacegroup,OHBAGcombinesactivitiesfromdifferentareasofhightechnology.Inadditiontospaceflightactivities,aircraftcomponentsbusinessformsakeyele-mentofitsactivities.Theindividualcompaniesareabletore-taintheirindividualityandcorporateculturewithintheGroup,whilestillbeingboundbythedecisionsmadebytheGroupholdingcompany.OHBSystemAG,Bremen,andErwinKayser-ThredeGmbH,Munich,whicharebothassignedtotheSpaceSystemsbusinessunit,mergedunderthenameofOHBSystemAGonSeptember1withretroactiveeffectfromJanuary1,2014.TheGroupmanagesitsfinancialconditiononthebasisoftotalrevenues,EBITandEBITDA.Theseparametersaredefinedinanannualbudgetandtrackedduringtheyearbymeansoffore-castsandreportsonactualfigurestogetherwithdeviationanalyses.OHBAGitselfdoesnotengageinanyoperatingbusi-nessbutsupportsthesubsidiariesintheirsalesandmarketingactivitiesandthusassumestheroleofanactiveholdingcom-
*seeGlossary
46
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pany.InMayandJuly2014,theSupervisoryBoardandtheshareholdersofOHBAGapprovedtheManagementBoard’sdecisiontoconverttheCompanyintoaSocietasEuropaea(SE).ByadoptingSEstatus,OHBisrespondingtothegrowingEuro-peanizationofspacetechnologyandtheGroup’sincreasinginterculturalstructures.ThechangeofcorporatestatuswillpermitmoreuniformandclearergovernanceandpromoteanopenandEuropeancorporateculture.TheCompanyestab-lishedanExecutiveCommitteeinthesecondhalfof2014comprisingmembersoftheManagementBoard,otherkeymanagersatOHBAGandthemanagingdirectorsofindividualsubsidiaries.ThepurposeofthisExecutiveCommitteeistoachieveswiftercommunicationsbetweenthestrategyandoperatinglevelsandtoimplementefficientdecision-makingprocessesbyleveragingtheknowledgeandexperienceheldbytheexecutivesoftheoperatingcompanies.OHBAGcomprisestwobusinessunits:
“Space Systems”Thisbusinessunitfocusesondevelopingandexecutingspaceprojects.Inparticular,itisresponsiblefordevelopingandfab-ricatinglow-orbitingandgeostationarysmallsatellitesfornavigation,research,communications,earthandweatherobservationandreconnaissanceincludingscientificpayloads.ItsmannedspaceflightactivitieschieflyentailprojectsfortheassemblyandfittingoftheInternationalSpaceStationISS.Theexplorationsegmentworksonstudiesandmodelsforexploringoursolarsystem,primarilythemoon,asteroidsandMars.Reconnaissancesatellitesandbroadbandwirelesstransmis-sionofimagedataformcoretechnologiesforsecurityandreconnaissance.
“Aerospace + Industrial Products”Thissegmentisprimarilyresponsibleforfabricatingaviationandspaceproductsaswellasperformingotherindustrialac-tivities.Inthisarea,OHBhasestablisheditselfasasignificantsupplierofaerospacestructuresfortheaviationandspacein-dustry;amongotherthings,itisthelargestGermansupplierofcomponentsfortheAriane-5programandanestablishedpro-ducerofstructuralelementsforsatellites.Inaddition,OHBisanexperiencedvendorofmechatronicsystemsforantennasandtelescopesandisinvolvedinmajorradiotelescopepro-jects.OHBtelematicssystemsservethelogisticsindustryaroundtheworldbyofferingefficienttransportmanagementandconsignmenttrackingfacilities.
II. BUSINESS PERFORMANCE
TheOHBGroup’sfavorablebusinessperformancecontinuedagainin2014.Thus,totalrevenuesroseby10%overtheprevi-ousyearfromaroundEUR700milliontoaroundEUR773mil-lionintheyearunderreview.Thiswasaccompaniedbya7%increaseinsalestoaroundEUR728million,upfromEUR680millionthepreviousyear.Thetransformationofthespaceindustryfromwhatwasonceasolelyresearchorpolitically/ideologicallydrivensegmenttoauser-orientedandeconomi-callysignificantmarkethasformedthebasisforOHBAG’scontinuousandsustainedgrowthoverthelastone-and-a-halfdecades.Theareasinwhichitengagesviaitssubsidiariesplaceitinanexcellentposition:Spaceflightisagrowthmarketinwhichnewpossibilitiesforusingexistingornewtechnologiesareunleashingnewdemand.Theexistingapplicationsarebasedonsatellitesystemsalreadyinoperationwhichhavealimitedlifeexpectancyandmustthereforebereplacedwithnewsystemswithpotentiallyimprovedtechnologyorefficiency.
1. “Space Systems” business unitBusinessinthe“SpaceSystems”businessunitischieflychar-acterizedbylong-termprojectswhicharegenerallyawardedbypublic-sectorcustomers.TheveryhighorderbacklogofEUR1,798million(December31,2014)andthebroadpotentialforgeneratingnewprojectbusinessprovidethebasisforhighfor-wardplanningvisibility.
a) Earth observation and reconnaissanceDevelopedandbuiltbyOHBSystemandputintooperationbe-tween2006and2008,theSAR-Lupesystemwithitsfiveradarsatellites,groundsegmentsandthecombinedGerman-FrenchreconnaissancesatellitesystemmadeupofSAR-Lupe(radarimages)andHelios2(opticalimages)hassofarshownnosignsofanydegradationandisstilloperatingverystablyandtothefullsatisfactionofthecustomer(FederalOfficeofBundeswehrEquipment,InformationTechnologyandIn-ServiceSupport(BAAINBw–formerlyBWB))andtheGermanarmedforces.Inthisway,theGermanarmedforceswillcontinuetohaveahigh-lymodern,reliableandcapableradarsatellitereconnaissancesystemevenafteralmostsevenyearspendingtheimplementa-tionofthefollow-upsystemSARah,whichisscheduledfor2018/2019.ThefiveSAR-LupesatellitesaretobeoperatedbytheSARahgroundsegmentfrom2016on.WorkontheSAR-LupesuccessorSARahwithsubstantiallyimprovedperfor-manceisproceedingaccordingtoplan.Thedesigncomprisesthreesatellites,twosatellitesbasedonOHBSystem’sreflectorantennatechnologyandonesatelliteusingtheAirbusphased-arraytechnology.AllthenecessarygroundequipmentwillbesuppliedbyOHBSystemandwillalsobeusedforcontrollingtheSAR-Lupesatellitesfrom2016.TheGermanfederalarmed
47
OHB AG | 2014
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forcesareconsideringthepossibilityofsupplementingthethreeradarsatelliteswithanopticalobservationsatellite.Atthisstage,nodecisionhasbeenmadeonwhethertheGermanfederalgovernmentwillprocuresuchasatelliteonanationallevelormakeasolelyfinancialcontributiontotheFrenchCSO(ComposanteSpatialeOptique/OpticalSpaceComponent)pro-gram.InJanuary2014,CGSinMilanwasawardedacontractforparticipationintheOPSAT3000mission,whichwillbeopen-inguppossibilitiesforopticalreconnaissanceforItaly.Sub-stantialprogresswasalsomadebyCGStowardscompletingthestudyontherealizationoftheOPSIS(OPticalSystemforImagingandSurveillance)earthobservationsatellitefortheItalianspaceagencyASI.OPSISisprimarilydesignedtoprovideanoperationalsystemforhigh-resolutionopticalearthobser-vation.However,theprogramiscurrentlynotbeingpursuedonaccountofthepresenteconomicconditionsinItaly.Thenation-alopticalearthobservationprogramEnMAP(EnvironmentalMappingandAnalysisProgram)forDLRhasnowovercomethedifficultiesofthepastandisscheduledtogointooperationattheendof2017/beginningof2018.Withitsnewtypeofhyper-spectralsensors,theEnMAPenvironmentalsatelliteisprimar-ilydesignedtocharacterizeandmonitortheconditionoftheearth.Itisaninnovativesystemwhichcanbeusedformanynewareasofapplication,e.g.security.Currently,theextenttowhichthissystemcanbeusedasabasisforaEuropeanearthobservationsatelliteundertheCopernicusprogramisbeingconsidered.ThecontractsignedbyOHBSystemandThalesAleniaSpacein2012forthedevelopmentandconstructionofthethird-generationEuropeanweathersatelliteMTG(MeteosatThirdGeneration)isbeingimplemented.Aconversioncontract
wassignedin2014fortheresultantnecessaryadjustmentstothecontractforthefinalconstructionofthesatellites.Conse-quently,realizationoftheMTGsatellitesisenteringthefinalphase.Inthisway,OHBisactiveinallareasofearthandweath-erobservationandreconnaissancewithproductsrangingfromradarsatellitestoopticalobservationsystems.
b) CommunicationsAtOHBSystem,thefinalphaseoftheassemblyoftheHispasatAG1satelliteforthecommercialSpanishsatelliteservicepro-viderHispasatwasembarkedupon.Followingthecompletionofintegrationwork,thesatellitehasbeenwithIABGinOttob-runnsinceFebruary22,2015whereitisundergoingextensiveenvironmentalimpacttesting.Underthepresentschedule,itistobeshippedtotheKourouspacecenterattheendoftheyear.ThismarksthefirsttimethattheOHB-developedSmallGEOplatformisbeingdeployeddirectlyinasatelliteoperator’scommercialsystem.ESAhasalsoselectedtheSmallGEOplat-formasabasisfortheEuropeanDataRelaySatellite(EDRS-C)withintheARTES-7program.Accordingly,OHBSystemisthecontractorforthesatelliteoperatorAirbusServices,whichwillbeoperatingitforESA.Developmentworkiscontinuingatfullspeed.Atthesametime,workonassemblingthesatellitehascommenced.TheenhancementstotheSmallGEOmodelforuseasaspecializeddatarelaysatelliteinultra-high-speedsatel-lite-to-satellitecommunicationsarecreatinganimportantnewstrategicsegmentforOHBSysteminboththecivilianandmili-tarymarket.SmallGEOwasalsodefinedbyDLRasthebasisforanationaltelecommunicationsmission(“HeinrichHertz”).ThecontractawardedbytheGermanAerospaceCenter(DLR)for
Total revenues by business unit before consolidation and holding
2014 in EUR millions
Space Systems
Aerospace +Industrial Products
564.0
213.5
48
OHB AG | 2014
Group management report
thedefinitionofthismissioninconjunctionwiththeGermanFederalMinistryofDefensewascompletedin2013.“HeinrichHertz”willbeusedtotestnewtypesofsatellitecommunica-tionstechnologyunderrealconditionstosafeguardnationalsystemcompetenceingeostationarycommunicationssatel-lites.Amongotherthings,itisalsotosupportthemilitarycom-municationsoftheGermanfederalarmedforces.In2014,theGermanFederalMinistriesofDefenseandEconomicsfinallyagreedonthetermsofthejointprocurementofthesatelliteplannedformid2015.Commencedin2012,thepreliminarystudieson“Electra”,the“AllElectricSpacecraft”ledtotheawardinOctober2013ofacontractforthedefinitionphasebySES-AstrafromLuxembourg.Asthesesatellitesdonotrequireanychemicalpropellant,theywillbesubstantiallylighter.Thiswilllowerthelaunchcostsontheonehandandpermitsub-stantiallylargerpayloadsontheother.ThefinaldecisionbyESAonwhethertogoaheadwiththejointactivitieswithSESandOHBSystemascontractorsisexpectedfor2015.
c) NavigationIn2013,thefirsttwoofthe22satellitesfortheGalileo*-FOC(fulloperationalcapability)spacesegmentwereshippedtotheESAsatellitetestingfacilityinNoordwijk.ThesetwosatelliteswerelaunchedintospaceforESAonAugust28,2014onboardaSoyuz,whichliftedofffromtheKourouspacecenter.However,amalfunctionintheupperstagepreventedthemfromreachingtheirtargetcircularorbit.Instead,theyareinanellipticalorbitaroundtheearth.Usingpartofthepropellanttheywerecarry-ingonboard,itwaspossibletocorrecttheorbitsufficientlytocommencecomprehensivetestingofthesatelliteplatformsand
payloads.ThetwocontrolcentersinOberpfaffenhofenandFucinoweresatisfiedthatthetwosatelliteswereinperfecttechnicalcondition.Atthisstage,nodecisionhasbeenmadeonwhetheritwillbepossibleforthesetwosatellitestobeusedaspartoftheGalileo*systeminthelongtermorwhethertheymustbereplacedbytwonewones.ThenexttwosatelliteshavebeentestedandshippedtoKourou,wheretheyareexpectedtobelaunchedonboardaSoyuzonMarch27,2015.AfurthertwosatellitesarecurrentlyundergoingtestingatESTEC,whilean-otherelevenarecurrentlyinproductionatdifferingstagesofcompletion.Inthethirdquarterof2013,OHBSystemsubmittedaproposaltoESAforastudyonthenext-generationGalileosatellites.Thecontractwasdulyawardedandworkonthestudyhassincecommenced.Thisstudywillensurethataftertheexpiryofitsplanned12-yearservicelifethesystemwillbeequippedwithnewGalileo*satellitesonthebasisofanasyetundevelopedtechnologyaimedatpreservingitsleadingposi-tioninefficiency.
Order backlog by business unit
Total order backlog 2,106.412/31/2014 in EUR millions
Space Systems
Aerospace +Industrial Products
1,797.7
308.7
*seeGlossary
49
OHB AG | 2014
50
40
30
20
10
0
20112007 2009 20102008 2012
Group management report
d) Space explorationIn2013,thecentralunitfortheTraceGasOrbiterdevelopedandbuiltundertheESAExoMars2016programwascompletedandshippedtotheprimecontractorThalesAleniaSpaceinCannes,France,inFebruary2014.WorkhasnowalsocommencedonthecarrierfortheExoMars2018mission.WiththeadditionalfundingapprovedbytheESAMinisterialCouncil,OHBSystemwasauthorizedtostartworkingonthesecondelementoftheExoMarsmission.
e) Space research and roboticsOHBwasagaininvolvedinseveralstudiesinconnectionwithESA’snextEuropeanscientificresearchmissionsin2014.Inthisway,itisalsobuildingupapositionforitselfinthisclassicsegmentofspacetechnology.ItisparticularlyfocusingonthemajorJUICEmission(toJupiteranditsmoons)andthetwomid-sizedEUKLIDandPLATOmissions.In2014,twostudiesonPLATOwerecommenced;onestudyontheoverallmissionwasawardedbyESAtoOHBSystemBremenandanotheronebyDLRonthepayloadinstrumentpackage.ThepurposeofthePLATOmissionistosearchforexoplanets,i.e.planetsthatorbitaroundotherstars,andtodeterminetheextenttowhichtheyarecomparabletotheearth.
f) Manned spaceflightOHBSystemcontinuedtosupportworkonboardtheISSInter-nationalSpaceStationin2014.Thisincludedoverseeingexperi-mentsaswellasperformingmaintenanceandrepairworkontheequipmentdevelopedandsuppliedbyOHBSystem.OHBSystemhasperformedseveralinternalstudiesanalyzingpos-
siblescenariosfortransportingsuppliestotheISSaftertheexpiryoftheATVprogramandexploringpotentialalternativesinmicrogravitationresearchfollowingthedecommissioningoftheISSin2024orlater.ThisyieldedaveryattractiveconceptinvolvingtheuseoftheDreamChaser®currentlybeingdevel-opedbySierraNevadaCorporation(SNC)intheUnitedStates.SNCandOHBhavesignedacorrespondingpartnershipagree-ment.DLRhasprovidedfundingfortheseactivitiesin2014.
g) Ground stationsAttheendof2014,thefiveSAR-Luperadarsatellitesachieved36ofthe50contractualcumulativeyearsofoperationinspace.Allfivesatellitesremaininexcellentconditionandshownosignsofanyage-relateddegradationoftheirperformance.OHBSystem’sSAR-Lupeoperationsarescheduledtoexpirein2017butwillbeintegratedin2016intheSARahgroundstations,wheretheywillcontinuetooperatesimultaneouslyforSARahandSAR-Lupe.
2. “Aerospace + Industrial Products” business unitSixAriane5launchvehiclesliftedoffsuccessfullyfromtheKourouspacecenterin2014.Asaresult,Arianespace,whichisresponsibleforoperatingandmarketingAriane5,wasagainthemarketleaderforcommercialsatellitelaunches.Duringthesameperiod,MTAerospacedeliveredsixflightsetsfortheAriane5(inthepreviousyear,sixflightsetshadbeendeliveredbutfourAriane5launcheswereexecuted).InresponsetoArianespace’songoingeffortstoimprovethecompetitivenessofAriane5,MTAerospaceestablishedamulti-yearcost-opti-mizationprogram,whichalreadyhelpedtoimproveearningsin
*seeGlossary
25.9
31.7
43.146.1
33.7
28.7
52.8
2013
Over eight years in EUR millions
EBITDA
53.4
2014
50
OHB AG | 2014
20112007 2009 20102008 2012 2013 2014
40
30
20
10
0
Group management report
2014.InaEurope-widecompetitionannouncedbyESAfortheAriane6developmentprogram,MTAerospacewasabletoqualifyforkeystructuresandtanks.InNovember2014,MTAerospacesignedaletterofintentwithAirbusDefence&SpacegoverningitscontributiontotheAriane6developmentandpro-ductionplan.Underthisplan,AirbusandMTAerospacewilleachworkonhalfoftheGermandevelopmentandproductioncontracts.ThedecisionmadebytheESAMinisterialCouncilinDecember2014onthedevelopmentoftheAriane6launchvehi-clewasmateriallysupportedbyGermanyasthesecondlargestpartner.Givenanationalshareof23%inthetotalbudgetofEUR3.75billion,GermanycanexpecttoreceivecontractsworthoverEUR600millionfrom2015through2021.ThemainpurposeofthelargeGermanshareintheAriane6programistosecuresophisticatedtechnologicaldevelopmentandpro-ductionworkforGermany.ThisalsoincludesthedevelopmentofanewproductionlineatMTAerospaceforboostercasingsmadefromcompositematerialsfortheAriane6.AtthenewsatellitetankcenterinAugust,productionofthetwomainproductsandtheIridiumprojectwassuccessfullyrampedupin2014.Moreover,testingofanew-generationpressurizedtank,whichistobeusedintheMeteosatThirdGenerationforthefirsttime,wascompleted.
Intheaviationsegment,productionofthefreshandwastewatertanksfortheAirbusA320/330continuedaccordingtoschedule.Substantialimprovementstoearningswereachievedinsomeareasthankstocostoptimization.ProductionofthesampleA350andA400Mtankswasalsorampedupaccordingtoschedule.AcontractwassignedwithAirbusHelicoptersGermanytoextendtheproductionofcomponentsfortheTiger
samplebyafurthertwoyears.Intheyearunderreview,acom-prehensiveprogramwasimplementedtosecurethefuturevia-bilityandstrengthenthecompetitivenessofaviationactivitieswiththegoalofreinforcingcoreskillswithinthecompanyandoptimizingcostsalongtheentirevaluechain.Keyelementsofthisprogramaretoberolledoutthisyear.
Intheantennaandmechatronicssegment,theALMA(Chile)andSRT(Italy)projectswerecompletedandtheensuingopera-tionandmaintenancecontractscommencedwithstableresultsin2014.ThegroundequipmentsegmentpassedallmilestonesintheconstructionofanewfuelingbuildingfortheSoyuzlaunchvehicleattheEuropeanspacecenterinKourou.
Orderintakefor2015/16wasgood.Awholeseriesofnewcontractsforantennasandtelescopesweregainedin2014.Theseincludecontractsfortheturnkeydeliveryof13mVLBItelescopestoNorwegianandSwedishresearchestablishmentsaswellasthereplacementofthetelemetricstationsoperatedbyFrenchspaceagencyCNES.WorkinginconjunctionwithChi-nesepartnerCETC54,MTMechatronicsreceivedacontractforKabandantennasforsatellitecommunications,thusprevailingovertheinternationalcompetition.Inthetelematicssegment,businessinnavigationequipmentforcommercialvehiclesperformedwell,with14,000unitsdeliveredtoVolvoTrucks,thusexceedingtheforecastfor2014byaround20%.Afurtherincreaseindeliveriesisexpectedfor2015.Specialnavigationsoftwaredevelopedbyoursubsidiarymegatelspecificallyforcommercialvehicleswillalsobedeployedforthefirsttime.Afteragood14years,wedeliveredthelastseriesofon-boardtelematicscomputerstoourlong-standingcorecustomerMANlastyear.Atotalofsome50,000unitsweredeliveredtoMAN
Over eight years in EUR millions
EBIT
31.0
36.4
17.520.8
22.7
18.7
27.3
40.4
51
OHB AG | 2014
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Group management report
alone.Thefirstphaseofthedevelopmentactivitiescommencedin2013oncontainertrackingunitsforDeutscheTelekomwascompletedandverifiedincomprehensivetestinginOctober2014.VolumeproductioncommencedinNovember2014.AdditionalfunctionsrequiredforspecialtypesofcontainertransportarebeingdevelopedunderanESAIAPprogram.
III. SALES AND ORDERS
In2014,theOHBGroup’stotalrevenuesrosebyEUR72.9mil-lionor10%overthepreviousyeartoEUR773.0million.Consol-idatedsalescametoEUR728.1million(previousyear:EUR680.1million).Non-consolidatedtotalrevenuesinthe“SpaceSystems”businessunitreachedEUR564.0millionin2014(pre-viousyear:EUR484.5million).Non-consolidatedsalescametoEUR545.3million(previousyear:EUR466.9million).Thisen-couragingperformanceisparticularlyduetoprogressmadeinthesatelliteprograms.AtEUR213.5millionin2014,non-con-solidatedtotalrevenuesinthe“Aerospace+IndustrialProd-ucts”businessunitweredownEUR9.5milliononthepreviousyear.ThelowertotalrevenuesinthisbusinessunitareduetothedeconsolidationofAerotechPeissenberginMay2014.WithavalueofEUR2,106millionasofthereportingdate(previousyear:EUR2,340million),theOHBGroup’sorderbacklogwasslightlydownonthepreviousyear.Ofthisthe“SpaceSystems”businessunitaccountedforEUR1,797.7million(previousyear:EUR2,005.4million)andthe“Aerospace+IndustrialProducts”businessunitforEUR308.7millionasofthereportingdate(previousyear:EUR335.0million).
IV. RESULTS OF OPERATIONS
Intheperiodunderreview,theOHBGroupgeneratedEBITDAofEUR53.4million(previousyear:EUR52.8million)andEBITofEUR40.4million(previousyear:EUR36.4million).Inthiscon-nection,itshouldbenotedthatthenon-recurringeffectsonearningsarisingfromthesaleofthe34%interestinELTAS.AandthedeconsolidationofAerotechPeissenbergwereoffsetbytheupdatedprojectevaluations.Netprofitaftertaxandnon-controllinginterestsstoodataroundEUR25.7millionintheyearunderreview(previousyear:EUR19.4million),whileearn-ingspershareequaledEUR1.48in2014,upfromEUR1.12in2013.EBITbeforeconsolidationinthe“SpaceSystems”busi-nessunitfellfromEUR29.0millioninthepreviousyeardowntoEUR14.1million.Theincreaseinthecostofmaterialsandser-vicespurchasedinthisbusinessunitfromEUR322.4millioninthepreviousyeartoEUR402.3millionasofthereportingdatewasduetoagreatervolumeofsubcontractorservices,reflect-ingtheprogressmadeinthesatelliteprograms.EBITinthe“Aerospace+IndustrialProducts”businessunitrosefromEUR7.3milliontoEUR19.4million.TheOHBGrouprecordednetfi-nanceexpenseofEUR6.5millionin2014(previousyear:EUR6.6million).ThisincludesotherfinanceexpenseofEUR7.824million(previousyear:EUR7.209million)chieflycomprisingin-terestexpenseonretirementbenefitprovisionsofEUR3.323million(previousyear:EUR3.565million).Theparent-companyfinancialstatementspreparedaccordingtoGermanGAAP(HGB)forOHBAGcarryanunappropriatedsurplusofaroundEUR29.4millionfor2014.TheManagementBoardandSuper-visoryBoardwillbeaskingtheshareholderstoapproveadivi-
EBIT by business unit before consolidation and holding
2014 in EUR millions
Space Systems
Aerospace + Industrial Products 19.4
14.1
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dendofEUR0.37persharefor2014atthisyear’sannualgener-almeeting.
V. ASSETS AND FINANCIAL CONDITION
Intheyearunderreview,theOHBGroup’stotalassetsrosefromEUR585.4milliontoEUR640.6million.ThechangesarisingfromthedeconsolidationofAerotechPeissenbergaredescribedonpage71ofthenotestotheconsolidatedfinancialstatements.GroupcapitalspendingtotaledEUR25.0millionin2014(previousyear:EUR23.6million).InventoriesdroppedinvaluefromEUR83.0milliontoEUR76.4million;ontheotherhand,prepaymentsreceivedfromcustomerscametoEUR131.5million(previousyear:EUR122.2million).CashandcashequivalentsincludingsecuritieswerevaluedatEUR53.3mil-lionasofDecember31,2014,downfromEUR57.3millioninthepreviousyear.Adetailedanalysisofthecashflowcanbefoundinthecashflowstatementintheconsolidatedfinancialstate-ments.EquityrosebyEUR14.5millionoverthepreviousyear,comingtoEUR147.2millionasofDecember31,2014(previousyear:EUR132.7million).Asaresult,theequityratiowidenedto22.98%asofthereportingdate,upfrom22.67%inthepreviousyear.TheretirementbenefitprovisionsofEUR97.0millionattheendof2014continuetoconstituteamaterialitemontheright-handsideofthebalancesheet.Theincreaseincurrentfi-nancialliabilitiesfromEUR68.0milliontoEUR113.8millionisduetotheutilizationofacreditfacilityestablishedinDecember2013.Thisisrelatedtothetimingdifferencesbetweentheservicescompletedunderprojectsmeasuredusingtheper-centage-of-completionmethodandthecorrespondingpayment
schedulesfortheseprojects,resultinginanincreaseofEUR62.5millionintradereceivablesoverthepreviousyear.TradereceivablesofEUR331.8million(previousyear:EUR269.4mil-lion)wereaccompaniedbytradepayablesofEUR84.0million(previousyear:EUR81.0million).TheManagementBoardgen-erallyconsidersOHBAG’snetassetsandfinancialconditiontobesolid.
Asset structure | Total assets 12/31/2014: EUR 641 millions
In a percentage of total assets
Property, plant and equipment 8% 23% Shareholders‘ equity
Other assets 13% 15% Pension provisions
Other non-current assets 3%
Liquidity 8%
Other non-current liabilitiesand provisions4%
Other currentassets
68% Current liabilities58%
Assets Shareholders‘ equity and liabilities
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VI. EMPLOYEES
Thetotalnumberofemployeesdroppedfrom2,412onDecem-ber31,2013to2,086onDecember31,2014verylargelyasare-sultofthedeconsolidationofAerotechPeissenbergGmbH&Co.KG.Alltold,1,646employeeswerebasedatcompaniesinGer-many,332inotherEuropeancountries(Italy,Sweden,Belgium,Luxembourg,France)and108inChileandFrench-Guayanaasofthereportingdate.Forsome1,000employees,2014wasdominatedbythemergerofKayser-ThredeGmbHwithSystemAG.Themergerofthetwocompanieswasadditionallyusedtoimplementnewstructuresforbothsites.Thisprojectwassuc-cessfullycompletedonDecember31,2014withoutanylayoffs–onthecontrary,additionalpersonnelwasrecruitedatbothlocationstoaccommodatethehighorderintake.The“TopEm-ployerforEngineersin2014”certificatecontinuedtoapplyafterthemergerandisproofofOHBSystemAG’sappealasanemployer.
TheplannedconversionofOHBAGintoaSocietasEuropaea(SE)willresultinchangesandadditionstoEuropeanco-deter-minationattheGrouplevelinresponsetoitsincreasinglyinter-nationalstructures.Negotiationsonacorrespondingco-deter-minationagreementbetweentheemployeerepresentativesoftheEuropeancompaniesandGroupmanagementcommencedinNovember2014andaretobecompletedinspring2015inlinewiththeapplicablestatutoryrequirements.
VII. RESEARCH AND DEVELOPMENT
Intheyearunderreview,OHBspentroughlyEUR20.1million(previousyear:EUR22.1million)oninternallyfundedresearchanddevelopment(R+D).PartoftheR+Dactivities(EUR4.0mil-lion;previousyear:EUR3.9million)arebeingfundedbyvariousinstitutionssuchastheEuropeanUnion,theGermanFederalGovernmentandtheGermanstatesandItaly.DevelopmentworkofEUR13.9millionwascapitalizedin2014,upfromEUR10.8millioninthepreviousyear.InaccordancewithEuropeanUniondirectives,subsidiesaccountforbetween25%and75%ofthetotalcostsdependingonthedegreeofcompletionofthedevelopmentproject.Inthe“SpaceSystems”businessunit,oneofthemainfocuseswasonbasicspaceresearch.Inadditiontonewandenhancedtechnologies,thefocuswasonnewtypesofmissionconcepts,suchaslow-flyingsatelliteconstellationsforultra-high-resolutionearthobservation.Afurtheraspectentailedtechnologiesforenhancingandfuture-proofingtheSmallGEOplatformparticularlyinthelightofcommercialcus-tomers’requirements.The“Aerospace+IndustrialProducts”businessunitperformedthefollowingdevelopmentworkonnewproductsandpreparationsforinvolvementinnewpro-grams.Inthelaunchercomponentssegment,thelargestcus-tomer-fundeddevelopmentprojectin2014wasthequalificationofanewupperstagetankfortheA5Mid-LifeEvolution.Inthisconnection,MTAerospacesignedcontractswithAirbusDe-fence&SpaceandESAwithatotalvalueofaroundEUR63mil-lioninthefirstquarterof2014.Allthedevelopmentmilestonesplannedfor2014weresuccessfullycompletedincludingtheproductionofpreliminarycomponents.Theconstructionand
Staff
Total personnel by business units 12/31/2014 Total personnel 2,086
Holding
Space Systems
Aerospace +Industrial Products
7307
1,349
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start-upofanewproductionfacilityinBremenproceededac-cordingtoschedule.ThedecisionbytheESAMinisterialCounciltodeveloptheAriane6andthereforenottofullycompletede-velopmentworkontheA5MEdidnothaveanyimpactonbusi-nessin2014.However,alldevelopmenttaskswhicharealsonecessaryforthenewAriane6configurationaretobecontin-ued.Thisparticularlyappliestoproductionfacilities.AlltargetsinthedevelopmentofthetankdomesforthemainstageoftheUSSpaceLaunchSystemsforBoeingwereachievedandthecomponentsforthefirstflightsetdelivered.Productionistocommencethisyear.Thefocusofthetechnologyprojectsin2014wasonpreparationsforefficientproductionprocessesforAriane6.Thedevelopmentofafullyautomatedproductionpro-cessforcompositematerialsmadefromthermoplasticwassuccessfullycompleted.Thisprocesspermitstherobot-basedproductionofcompositestructuresforuseinlauncherenginesandsub-stages.Likewise,thedevelopmentofhighlyefficientproductionprocessesforcryo-propellanttankswascompleted.Thisentailsspin-forminglargepanelsfromhighlyrigidalu-minum-lithiumalloysaswellasfriction-stirweldingofthesecomponentstoassemblelargestagetankswithacapacityofupto150tonsofpropellantforuseintheAriane6.Thetankspro-ducedusingthistechnologyweresuccessfullytestedin2014.MTAerospacesuppliedthecontrolflapsmadefromhigh-tem-perature-resistantceramiccompositesforIXV,theESAexperi-mentalspaceglider.Thevehiclessuccessfullycompletedre-entrytestingincludingawaterlandingatthebeginningof2015.ThistechnologywillbeusediftheAriane6stagesundergofur-therdevelopmentforre-use.
Intheaviationsegment,preliminarydevelopmentofanew-generationfresh-watertankfortheAirbusA320NEOallowingareductioninproductioncostswassuccessfullycompleted.MTAerospacewillbereadyingthetankforvolumeproductionasasingle-sourcesupplier.
Intheantennaandmechatronicssegment,anew-genera-tionKabandantennawentintooperationsuccessfully.Thisan-tennasystemisnotonlysuitableforESAasthefirstcustomerbutalsoforotherlow-earthsatellites.
Staff
Total personnel by regions 12/31/2014 Total personnel 2,086
Rest of Europe
Germany Rest of the world108
332
1,646
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VIII. QUALITY AND ENVIRONMENTAL MANAGEMENT, DATA PROTECTION AND PROCESSES
1. Quality and environmental managementQualityandenvironmentalmanagementismonitoredandregu-larlyupdatedonanon-centralizedbasisbytheindividualcom-panies.
WorkingonbehalfofOHBAG,OHBSystemkeepstrackofthevalidityofthenecessarycertificatesforcoordinatingselectedindividualprocessesandforharnessingsynergisticbenefitsarisingfromtheimplementationoftheseprocessesatthefol-lowingcompanies:• OHBSystemAG,SiteBremenandMunich,Germany• CGSS.p.A.,Milan,Italy• LuxSpaceSàrl,Betzdorf.Luxembourg• AntwerpSpaceN.V.,Antwerp,Belgium• OHBSwedenAB,Stockholm,Sweden• MTAerospaceAG,Augsburg,Germany• MTMechatronicsGmbH,Mainz,Germany• OHBTeledataGmbH,Bremen,Germany• megatelInformations-undKommunikationssystemeGmbH,
Bremen,Germany
Legalresponsibilityforimplementationofthecertificatere-quirementsinproduct-relatedoperationalqualityprocessesrestswiththeindividualcompanies.
Certificationoftheindividualcompanies’qualitymanage-mentencompassesthesumtotalofdistribution,systemsman-agement,development,procurement,productionandmainte-nanceofproductsforspaceandenvironmentaltechnology,in-formationandcommunicationstechnologyaswellassoftwareproductsandservices.
a) OHB System AG – Bremen siteEN 9100:2009 Quality Management System (aviation/aero-space) based on ISO 9001:2008 Quality Management SystemOHBSystem,theBremensiteiscertifiedforsystemguidance,designdevelopment,productionandoperationsforaerospaceproductsaswellasreconnaissanceandcommunicationtech-nologies.ThiscertificationinvolvesinclusionintheBDLIsupplierlistfortheaviationindustryandintheglobalOASISdatabasemanagedbyIAQG.ThecertificateQS-3674HHissuedbyGermanischerLloydisvaliduntilMay2015.
AQAP 2110/-2210 (military products)ThesiteBremenholdsavalidcertificationissuedbytheGer-manFederalOfficeofBundeswehrEquipment,InformationTechnologyandIn-ServiceSupport(BAAINBw)inaccordancewithAQAP2110(NATOqualityassurancerequirementsforde-sign,developmentandproduction)andAQAP2210(software
qualityassurance)forthedevelopment,production,sales&marketingintheareaofaerospace,reconnaissanceandsatel-liteandcommunicationtechnology.
TheBAAINBwcertificateiscontract-andproduct-relatedvaliduntilMay2015.
OHB System AG – Munich siteISO 9001:2008 Quality Management System (aviation/ aerospace)OHBSystem,theMunichsiteiscertifiedfordevelopment,manufactureandsalesofsystemsforaerospace,scientificandindustrialapplications.TheDEKRAcertificateNo.41294186/6isvaliduntilJuly2015.CertificationinaccordancewithEN9100isplannedforbothsitesin2015.
ISO 14001:2004 Environmental ManagementObservanceoftheenvironmentalmanagementrequirementsstipulatedbythisstandardisatthesiteMunichoverseenbyanenvironmentalmanagementofficer;formalcertificationisnotnecessary.
b) CGS S.p.A.EN 9100:2009 Quality Management System (aviation/aero-space) based on ISO 9001:2008 Quality Management SystemGGSiscertifiedfordesign,constructionandintegrationofsat-ellites,payloadandgroundequipment.Designanddevelop-mentofhardwareandsoftwaresolutionsforaerospaceappli-cations.Researchanddevelopmentofinnovativetechnologiesforaerospaceapplications.ThecertificateNo.AS/77/13/Sis-suedbyRINAServicescoverstheCGSsitesinMilan,TortonaandRomeandisvaliduntilDecember2016.
c) LuxSpace SàrlISO 9001:2008 Quality Management System (base certification)LuxSpaceiscertifiedforthedesignanddevelopment,procure-mentandsalesofspacesystemsandrelatedservices.Thecer-tificate158377-2014-AQ-GER-DAkkSissuedbyDNVGLisvaliduntilJune2017.
d) Antwerp Space N.V.ISO 9001:2008 Quality Management System (base certification)CertificationforaqualitymanagementsysteminaccordancewithISO9001:2008wassuccessfullycompletedatthebegin-ningof2012.ThecertificateQS-8094HHissuedbyGermanis-cherLloydisvaliduntilFebruary2015.
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e) OHB Sweden ABISO 9001:2015 Quality Management System (aviation/space and defence)TherelocationtoKistabroughtbothnewfacilitiesandnew/revisedprocesses,leadingtoarevisionofthequalitymanage-mentsystem.WiththereleaseofISO9001:2015inQ32015,re-certificationtothisnewstandardwilloccurinQ42015/Q12016.
f) MT Aerospace AGEN 9100:2009 Quality Management System (aviation/aero-space) based on ISO 9001:2008 Quality Management SystemMTAerospaceiscertifiedforthedevelopment,productionandtestsofcomponentsandsubsystemsforaerospace,aviation,defenceandindustrialapplications.ThiscertificationinvolvesinclusionintheBDLIsupplierlistfortheaviationindustryandintheglobalOASISdatabasemanagedbyIAQG.ThecertificateQS-8086HHissuedbyGermanischerLloydisvaliduntilFebru-ary2015.
ValidapprovalcertificationshavebeenissuedbytheGer-manFederalAviationOfficefortheproduction(LBAEASAPart21,SectionA,PartG,certificateDE.21G.0048)andformainte-nance(LBAEASAPart145,certificateDE.145.0253)ofairbornevehicles.
g) MT Mechatronics GmbHISO 9001:2008 Quality Management System (base certification)MTMechatronicsGmbHiscertifiedforconsultancy,conceptualanddesignstudies,detaileddesign,manufacturing,installa-tion,commissioning,systemintegrationandserviceforturn-keycommunicationantennas,radio-andopticallargetele-scopes,mechatronicaldevicesforinstitutionalandindustrialapplications,launchfacilitiesfortheEuropeanSpaceProgram.Thecertificate455233QM08issuedbyDQSisvaliduntilNo-vember2015.
h) OHB Teledata GmbHISO 9001:2008 Quality Management System (base certification) OHBTeledataiscertifiedforsales,procurement,development,productionandserviceforproductsandprojectsoftelematicsandtelecommunicationsandbatterymanagement.Theexten-sionofthecertificateQS-2276HHissuedbyGermanischerLloydvaliduntilJuly2014hasbeenassignedtoDNVGLandwillbefinalizedinQ22015.
ISO 14001:2009 Environmental ManagementOHBTeledataismaintainingacertifiedenvironmentalmanage-mentsystem.TheextensionofthecertificateEM-4595HHissuedbyGermanischerLloydvaliduntilNovember2014hasbeenassignedtoDNVGLandwillbefinalizedinQ22015.
i) megatel Informations- und Kommunikationssysteme GmbHISO 9001:2008 Quality Management System (base certification)megateliscertifiedforsales,developmentandserviceforinformationtechnologyproductsandprojects.Thecertificate163223-2014-AQ-GER-DAkkSissuedbyDNVGLisvaliduntilJuly2017.
2. Data privacyCompliance with the German Federal Data Privacy ActThedataprivacyofficersattheindividualcompaniesinGerma-nywhoareformallyregisteredwiththeresponsiblestatedataprivacyagenciessafeguardtheprivacyofpersonaldatainac-cordancewiththeGermanFederalDataPrivacyActasmostrecentlyamended.Localimplementationofthedataprivacyrequirementsissetforthinmanualsandprocessdescriptionsandmonitoredbytheresponsibledataprivacyofficers.
3. ProcessesOHBSystemandCGSaremaintainingqualifiedprocessesinaccordancewithECSS(EuropeanCooperationforSpaceStand-ardization)forweldingofsurface-mounteddevices(SMDs),includingFPGAwith352connectors.
OHBSystemactivelysupportsthefollowingstandardizationboards:• EurospaceStandardizationWorkingGroup(e.g.ECSS)• EAQGSpaceForum(EN9100)• DINNormenausschussLuft-undRaumfahrt
REACH (Registration, Evaluation, Authorization and Restriction of Chemicals)Regulation (EC) No. 1907/2006 (REACH)EUrulescameintoeffectonJune1,2007governingtheman-agementofchemicalsubstancesintheEUforallindustrialproducts.Theserulesprimarilysetoutregulationsforthereg-istrationandmonitoringofhazardoussubstancesaccountingformorethan0.1percentagebyweightintheproduct(accord-ingwithregistrationintheREACHdatabase).
AllOHBcompaniesareawareofthisregistrationdutyandimposethisrequirementontheirsubcontractors.
IX. SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE PERIOD UNDER REVIEW
Therewerenosignificantreportableeventbetweenthebalancesheetdateandthedateonwhichtheannualreportfor2014wasprepared.
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X. OUTLOOK
1. “Space Systems” business unitIn2015andbeyond,the“SpaceSystems”businessunitwillbeconcentratingoncontinuingitssuccessfulworkontheGalileo*,HispasatAG1,MeteosatThirdGeneration(MTG),EnMAPandSARahprojects.Studiesonthenewconceptforthe“Electra”geostationarysatelliteswillbecontinued.Arequestforapro-posalisexpectedtobereceivedin2015fromDLRforthena-tionaltelecommunicationssatellite“HeinrichHertz”.ESAissystematicallycontinuingtheExoMarsprogram.Followingtheshipmentofthecentralmodulefortheorbiterinthe2016mis-sion,negotiationsforthecarrierforthe2018missionarecur-rentlystillongoing.In2015,OHBSystemplanstosubmitapro-posalfortheESABIOMASSmissionasprincipalcontractorandfortheJUICEresearchmissionasapartnertoprincipalcon-tractorThalesAleniaSpace.Preliminarystudiesonthesec-ond-generationGalileo*commencedin2014toexploremoreadvanceddesignsfortheEuropeannavigationsystem.AseriesofrequestsforproposalsforelementsoftheESAearthobser-vationandsciencemissionaswellascontractsforfurtherstudiesareexpectedfor2015.Dependingontheprogram,OHBplanstosubmitproposalseitherasaprincipalorsubcontrac-tor.WithrespecttonationalItalianprograms,CGSintendstosystematicallybroadenitsroleassecondplayerinItalyforsat-ellitemissions,bothforscienceandremotesensing.BudgetarydecisionsintheEU,onthepartofESAandinthenationalspaceprogramsinGermanyandItalyaswellastheothercountriesinwhichOHBcompaniesarelocatedpointtolargelystableunder-lyingconditionsandasufficientlyfirmbasisforfutureplanning.Withitscurrentandplannedprojectsandprograms,OHBAG’s“SpaceSystems”businessunitisideallypositionedtomaintainthelevelwhichithasachievedonasustainedbasisandtocon-tinuegrowingsuccessfully.
2. “Aerospace + Industrial Products” business unitInthe“Aerospace+IndustrialProducts”businessunit,theexistingorderbacklogwillensurecontinuedproductionanddeliveryofcomponentsfortheAriane5in2015and2016.Thecost-optimizationprogramwhichhasalreadybeencommencedwillbesystematicallycontinued.Thedevelopmentoflaunchvehiclecomponentswillbedominatedbytheramp-upoftheAriane6developmentprogramontheonehandandthephasing-outoftheA5MEprogramontheother.AcceptancetestingandqualificationoftheproductionfacilitiesalreadydesignedfortheAriane6willbecompletedasplanned.Thedevelopmentpro-gramfortheUSSpaceLaunchSystemcouldbeincreasedwithadditionalinvolvementinthedevelopmentofthenewupperstage.Severaldevelopmentcontractsforthesatellitetanksareexpectedtocommenceandwillexpandthetankportfolio.
ThetechnologyprogramswillbefocusingonthedevelopmentofcompositetechnologyfortheAriane6booster.Tothisend,thefirstmodelonascaleof1:1willbeassembledandtested.
Intheaviationsegment,theprogramforachievingcosteffi-ciencyandenhancingcompetitivenesswillbeimplemented.Thisalsoinvolvesthetransferofworktomoreinexpensivesup-pliers.TheproductionratefortheA350andA400Mproductswillbeincreasedsubstantiallyin2015,accompaniedbyinten-siveoptimizationmeasures.DevelopmentworkwillprimarilyconcentrateonthesuccessfuldevelopmentoftheA320NEOtankforvolumeproduction.ThesuccessfulcompletionoftheKoLiBriprojectwillopenupopportunitiesforMTAerospacetopositionitselfasasupplierofCFRPboostercasings.
Orderbacklogissufficienttoensureutilizationoftheexist-ingcapacityintheantennaandmechatronicssegmentsin2015.Furthercontractsforlargertelescopeprojectsareexpectedfor2015,thusprovidingthebasisforsolidongoingbusiness.Businessactivitiesintheareaofsatellitecommunicationsan-tennasshouldexpandinthemediumterm.Inthegroundequip-mentsegment,acontractforthemodernizationoftheboosterintegrationhallinKourouisexpectedtobeawardedthisyear.Inthetrucknavigationsegment,deliveriesofover14,000unitsforVolvoTrucksareplannedfor2015.Inaddition,aproposalforthedevelopmentofamorepowerfulfollow-upmodelwassub-mittedtoVolvoTrucksattheendof2014.Theimprovedeffi-ciencyoftheelectronicsystemsshouldensuredeliveriestothecustomerbeyond2016.Followingthecompletionofthefirstphaseofthecontainertrackingproject,aninitialbatchof1,000–2,000unitsistobeshippedbytheendof2015.
3. OutlookTheManagementBoardexpectscontinuedgrowthinconsoli-datedtotalrevenuesintheOHBGrouptomorethanEUR800millionin2015.EBITDAshouldexceedEUR53millionandEBIT40millionin2015.Giventhehigherorderbacklogandupbeatoutlookforthecurrentyear,weassumethattheGroup’snetassetsandfinancialconditionwillalsoremainstrong.In2014,totalrevenuesandEBITexceededtheforecastfortheyear,whileEBITDAfellslightlyshortoftheforecast.Itshouldbeexpresslynotedinconnectionwithforward-lookingstatementsthatactualeventsmaydiffermateriallyfromexpectationsoffutureperformance.
*seeGlossary
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XI. INTERNAL CONTROL AND RISK MANAGEMENT
Thecontrolandriskmanagementsystemformsanintegralpartofthecorporate,planning,accountingandcontrolpro-cessesandconstitutesamaterialcomponentofthemanage-mentsystem.TheProductQualityandPurchasingdepartmentsparticularlymonitorsupplierssothatoperatingandtechnicalriskscanbeassessedmorereliablyandsuitableprecautionstaken.MonthlyandquarterlyreportingconstitutesanintegralpartofOHBAG’sriskmanagementoperationsandhasbeenwidenedtoincludealloftheGroup’scompanies.Group-widecontrollinginstrumentssupportedbybusinessintelligencesoftwareareusedforreportingpurposes.Thisprimarilyen-tailscomparisonsoftheactual/requiredfiguresanddeviationanalyses.Budgeting,regularforecastsandongoingreportingdiscussionssupplementstandardizedreportinginthetwobusi-nessunits.Appropriateprecautionsaretakenintheaccountingandconsolidationprocesstoensurefullimplementationofthedouble-sign-offprinciple.AccessrestrictionstotheITsystemensureahighdegreeofdatasecurity.Inaddition,theaccount-ingsystemcomplieswiththerequirementsofpublic-sectorcontractawardingrules.Customerpaymentpracticesaremonitoredonanongoingbasistominimizefinancialrisks.Inadditiontoamulti-levelremindersystem,controllingmethodsincluderegularreportstotheManagementBoard.TheOHBGroup’scustomerbasecomprisesalargeproportionofpublic-sectorcustomersbothdirectlyandindirectly.Forthisreason,theriskofpaymentdefaultsisverysmall.Overthepastfewyears,therehavebeenvirtuallynopaymentdefaults,meaningthatadjustmentstoortheprolongationofindividualreceivableshavenotbeennecessary.Paymentsonaccountreceivedcom-prisepartpaymentsremitteduponthecompletionofspecificprojectmilestones.Inthisway,itispossibletominimizeliquidi-tyrisksandworkingcapitalrequirements.FollowingthecreditfacilityagreementsignedinDecember2013forEUR250mil-lion,fundingrequirementscannowbecoveredinexpensively.
XII. OPPORTUNITY AND RISK REPORT
OHBAG’sManagementBoardpermanentlymonitorstheGroup’soperating,marketandfinancialrisksandisintegratedinallmainbusinessandcapexdecision-makingprocessesinordertoensuretheGroup’ssustainedbusinesssuccess.TheopportunitiesandriskmanagementsystemusedbytheOHBGroupisprimarilysupportedbytheQualityManagementandFinance/Controllingdepartments.Assistedbythecentraldepartments,theManagementBoardobservesandanalyzestrendsinthesector,marketandeconomyasawholeonanon-goingbasis.Thebasisforopportunitiesandriskmanagementisformedbyadetailedmonthlyreportforoverseeingordersandcosts.Reportingalsocoversallbusinessdevelopment,re-
searchanddevelopmentactivitiesandallowspotentialoppor-tunitiesandriskstobeidentifiedatanearlystage.Thesubsidi-ariessubmitstandardizedmonthlyorquarterlyreportstoOHBAGcoveringallprocesses,opportunitiesandrisksofrelevance.Theindividualbusinessunitsdeploydifferentsoftwaresystemsforgeneratingreports,e.g.SAPorbusinessintelligencesolu-tions.WeconsiderthefollowingtypesofrisktoberelevantforOHBAG’sbusinessactivities:
1. Sector risks, risks in underlying conditionsThe“SpaceSystems”businessunitprimarilyworksforpublic-sectorcustomers.Orderintakeisexposedtorisksarisingfromthebudgetsofpublic-sectorcustomers(chieflytheEU,theEuropeanSpaceAgencyESA,nationalministriessuchastheGermanFederalMinistriesofEconomics,DefenseandTrans-portationaswellasthenationalspaceagencies).Thismarkethasbeenconsolidatingoverthepastfewyears.However,thissituationis,ifanything,favorableforOHBAGinviewofitsspe-cialstandingasaGermansystemsproviderforspacetechnolo-gy.Consequently,furthersignificantgrowthisnotpossibleandcanonlybefoundinthecommercialandexportmarkets.Thissegmenthasbeencloselyobservedandanalyzedforanumberofyearsandpreliminaryactivitiesinthisdirectionarebeingprepared.Inthe“Aerospace+IndustrialProducts”businessunit,thegreatestmarketriskisinmechatronicsystemsforantennasandtelescopesduetotheheavydependencyontheglobalmarketforscientificradioandopticaltelescopesastheawardofsuchcontractsismateriallydeterminedbytheprovi-sionofthenecessaryfundingbythenationalgovernmentsinvolved.
2. Strategic risksThe“Aerospace+IndustrialProducts”businessunitisheavilyexposedtothefortunesoftheARIANEprogram.Afurtherchal-lengeentailssecuringmarketshareintheaviationcomponentsindustry.Inthe“SpaceSystems”businessunit,currentrisksrelatetothecompletionofongoingprojectswithintheagreedperiodandinlinewiththespecifiedlevelofquality.Afurthermainfactoristhesuccessfulcompletionofdevelopmentpro-jectswithinthestipulatedperiodsandinlinewiththecontrac-tualprices.Advanceoutlayshavebeenmadeforthedevelop-mentofstrategicallyimportantproductsegments,thecostsofwhichmustberecoupedfromthedevelopmentofbusinessinthecorrespondingapplications.Lookingahead,sufficientorderreceiptswillbenecessarytomaintainthecurrenthighorderbacklog.
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3. Sourcing risksTheOHBGroupconstantlyoptimizesitssupplychainbycontin-uallymonitoringthebuy-sidemarketandtrackinginventoriesandincreasinglytakingmeasurestosafeguardthelocalavail-abilityofsupplies.Asaresult,ithasbeenpossibletoreduceresponsetimesforproblemreports.Inaddition,itiscontinuingtotapnewsourcesaroundtheworld.Inthe“Aerospace+IndustrialProducts”businessunit,thecostofrawmaterialsremainedpredominantlysteadyinthecourseof2014.Theagreeddeliveryperiodswereverylargelyobservedbythesup-pliers.The“SpaceSystems”businessunitisexposedtoonlysporadicsupply-siderisksinthesourcingofsubsystems.Asarule,thereissufficientadvancenoticeoftheserisks,meaningthatshortfallsoccuronlyrarely.
4. Project risksTheriskmanagementsystemusedforbid-costingandongoingprojectmanagementinvolvesregularescalatedreportingtotheprojectmanagers,thedirectors,theManagementBoardofOHBAGandthemanagementoftheoperatingcompanies.AllprojectsasofaspecificsizearesubjecttoregularreviewbytheManagementBoardandformpartofacontinuousmonitoringprocesscoveringtechnicalperformance,schedulecomplianceandbudgetchecking.Giventhesystemsunderlyingourbusi-nessmodel,thereareinherentrisksintheobservanceofschedulesaswellasdevelopmentrisks.
5. IT risksTheGroup’sbusinessprocessesrelyoninformationservicesandsystemsinallareas.TheprimarypurposeistoensuresmoothoperationsofallITsystemsandnetworkstosupportdevelopmentandproductionprocessesaswellascommercialapplicationsoftware.AfurtherkeyaspectoftheITsecuritystrategyistocontrolaccesstodataandtomonitordatatrafficbothinsideandoutsidetheenterprise.OHBhasinstalledspe-cialInternetaccesssoftwareandsystemstoadditionallyenhanceitsnetworkswithincomingandoutgoingdata.Inaddition,itperformedintensiveactivitiesatitsBremensitetoprepareforbasicBSIcertification.
6. Financial risksMostgoodsandservicesprocuredareinvoicedineuro.For-eign-currencytransactionsinthedollarregionmayresultintranslationgainsorlosses.Intheaviationsegment,thedollar-denominatedordersandreceivableswerehedged.Thesecuri-tiesentaillong-terminvestmentswithacceptablerisks.Aconclusiveassessmentoftherisksituationisnotpossibleduetothecurrentsituationinthefinancialmarkets.Furtherinfor-mationisavailableintheIFRS7disclosurescontainedinthenotestotheconsolidatedfinancialstatements.Workingcapitalrequirementscanbereducedsubstantiallybymeansofpro-
gressbillings.AcreditfacilityagreementwassignedinDecem-ber2013withasyndicateofsevenbankstoavertliquidityrisks.Marketinterestrateshavedroppedsignificantlyoverthepastfewyears.Withrespecttoretirementbenefitprovisions,wedonotexpecttoseeanyfurthersignificantchangeininterestratesinthefuture.
7. Personnel risksTheOHBGroupemploysalargenumberofhighlyqualifiedpeople,onwhosemotivationanddedicationitssuccessde-pends.However,Groupexpertiseisspreadovermanypeople,meaningthatthereisonlyverylimiteddependenceonindividu-alspecialists.StafffluctuationislowattheOHBGroup.Despitetheflourishinglabormarketinthehighlyspecializedaviationandaerospaceindustry,theOHBGrouphasbeenabletofindsuitablespecialiststocoveritspersonnelrequirementsinmostareas.Temporarypeakrequirementsarecoveredbyusingtemporaryorloanstaff.Lookingahead,personnelrequire-mentswillcontinuetobeanalyzedandplannedcarefully,withcorrespondingallocationsmade.Trainingandskillsdevelop-mentremainanimportantinstrumentforminimizingpersonnelrisks.
8. SummaryThroughout2014,theOHBGroup’sexposurewasforthemostpartconfinedtotherisksdescribed.InthelightofcurrentmarkettrendsandtheoutlookfortheCompany’sbusiness,itsorderbackloganditsfinancialsituation,theManagementBoardconsidersfutureriskstotheGrouptobemanageable.NoriskstotheGroup’sgoing-concernstatusarecurrentlydis-cernible.
9. Opportunity and risk reportTheobservanceandevaluationofandbusinessresponsetoopportunitiesandthepotentialwhichtheyharboraswellastheresponsetoriskscallforprofessionalmanagement,whichiscombinedintheOHBGroup’sopportunityandriskmanagementsystem.
60
OHB AG | 2014
Group management report
10. Material opportunitiesThespacemarketoffersinterestingopportunitiesforgrowthinviewoftheconstantadditionofnewtechnicalareasofrele-vance.Systematicobservationofallrelevantrequestsforpro-posalsonaEuropeanandalsoanationallevelwithintheEUallowstheOHBGrouptotakepartinvirtuallyallmajorbiddingprocessesinEurope.WithitsEuropean-widepresenceandstrongnationalcompaniesspecializinginselectedtechnologiesandapplicationsinthespaceindustry,OHBadditionallyhastheopportunityofbiddingforspacecontractswhichareawardedtoindividualnationsinaccordancewiththegeographicreturnprinciplewithinESAalongsideEU-widebids.Intheindividualcountries,theGroup’snationalcompaniesareadditionallyabletobidforcontractsandprojectsawardedbythenationalspaceagencies.ThehighdegreeofspecializationoftheindividualcompanieswithintheOHBGroupgenerallymeansthatwhenitbidsforamajorESAprojectitreceivesthestatusoflead-man-agerorsubcontractorofthelead-manager.OHB’sspecificspaceexpertiseisbasedonthelong-standingexperienceoftheresponsiblepersonswithintheGroupaswellasbasicresearchanddevelopmentperformedinthisareaallowingpromisingfutureareasanddevelopmentsinspaceflighttobeidentifiedandresponsestothemdefined.Telecommunications,thegrow-ingexploration,mappinganddepictionoftheearthbymeansofspacetechnologyareincreasinglyevolvingintopromisingareasofapplication.Forthispurpose,theGroupusesitsownfundswhichareutilizedincloseconsultationwithitscustomers.Aswithbusinessrisks,projectmanagementmayalsogenerateopportunitiesfromsystematicclaimmanagementbasedontheprojectreviewprocess.
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Group management report
XIII. COMPENSATION REPORT
ThecompensationpaidtothemembersoftheManagementBoardcomprisesfixedandvariablecomponents.TheservicecontractscurrentlyinforcewiththemembersoftheManage-mentBoard(durationofcontractsforMarcoFuchs:July1,2012untilJune30,2015;durationofcontractforUlrichSchulz:July1,2012untilJune30,2016,durationofcontractforDr.FritzMerkle:October1,2014untilAugust31,2017)provideforvaria-blecompensationtobedeterminedonthebasisofadirectshareinprofit(percentageofEBT)inthecaseofMarcoFuchsandUlrichSchulz.InDr.FritzMerkle’scase,thevariablecom-pensationisbasedonacombinationofagreedpersonaltargetsandtheCompany’sbusinessperformance.Thereiscurrentlynoprovisionforanyshare-basedcompensationcomponentsorcompensationcomponentswithalong-termincentive.IntheeventofthedeathofaManagementBoardmember,hissurviv-ingdependentsareentitledtoreceivecontinuedpaymentofthatmember’sfixedcompensationforafurtherperiodofsixmonths.ThemembersoftheManagementBoardareentitledtoacompanycar.ThecompensationpaidtothemembersoftheManagementBoardbreaksdownasfollows:Thetotalfixedcompensationpaidin2014cametoEUR0.799million(previousyearEUR0.880million),whilethevariablecomponentequaledEUR1.041million(previousyearEUR0.840million).Thebreak-downbymembersoftheManagementBoardisasfollows:MarcoR.FuchsreceivedasumofEUR0.345million(previousyear:EUR0.345million)asfixedcompensationincludingallbenefitsaswellasadvancestowardshealthandpensioninsur-anceandanon-cashbenefitintheformofcontributionsofEUR1.7k(previousyear:EUR1.7k)towardsanendowmentpolicy.VariablecompensationequaledEUR0.446million(previousyear:EUR0.360million).Prof.Dott.Ing.h.c.ManfredFuchs,whopassedawayonApril26,2014,receivedasumofEUR0.090million(previousyear:EUR0.278million)asfixedcom-pensationincludingallbenefitssuchasadvancestowardshealth.VariablecompensationequaledEUR0.446million(previousyear:EUR0.360million).Inaddition,paymentsofEUR0.012millionweremadebyOHBSystemAGpursuanttoapensioncommitmentassumedin1988underwhichhewastoreceiveasumofEUR3,000amonthuponturning65years.UlrichSchulzreceivedasumofEUR0.217million(previousyear:EUR0.217million)asfixedcompensationincludingallbenefitsaswellasadvancestowardshealthandpensioninsur-anceandanon-cashbenefitintheformofcontributionsofEUR1.2k(previousyear:EUR1.2k)towardsanendowmentpolicy.VariablecompensationequaledEUR0.149million(previousyear:EUR0.120million).
Dr.FritzMerklewasappointedtoOHBAG’sManagementBoardeffectiveJune1,2014followingProf.ManfredFuchswhodiedinApril2014.Intheperiodpriortosigningaservicecon-
tractwithOHBAGeffectiveOctober1,2014,hereceivedcom-pensationfromOHBSystemAG.HereceivedanamountofEUR0.082millionforallactivitiesfortheOHBGroupinthisperiod(June1–September30,2014).ForhisservicesfromOctober1,2014,Dr.FritzMerklereceivedasumofEUR0.065millionasfixedcompensationincludingallbenefitssuchasadvancestowardshealthandpensioninsurance.Inaddition,thecostsofanexistinglifeinsurancepolicyofEUR0.4kwereassumed.Inaddition,hereceivedcompensationunderoldcontractsfortheperiodfromJanuary1,2014throughMay31,2014duringwhichhewasnotamemberoftheManagementBoardofOHBAGbutheldmanagementpositionsatOHBSystemAGandKayser-ThredeGmbH.InhercapacityaschairwomanoftheSupervisoryBoard,Mrs.ChristaFuchsreceivedasumofEUR0.030millionfor2014(previousyear:EUR0.030million),whileMr.RobertWethmarreceivedEUR0.020million(previousyear:EUR0.020million)andProf.HeinzStoewerEUR0.020million(previousyear:EUR0.020million).VariablecompensationcomponentsweredispensedwithforthemembersoftheSupervisoryBoard.Mrs.ChristaFuchswaspaidcompensationofEUR0.064million(previousyear:EUR0.128million)forheradvisoryser-vicesformembersoftheOHBGroupintheyearunderreview.
XIV. DISCLOSURES IN ACCORDANCE WITH SECTION 315 (4) OF THE GERMAN COMMERCIAL CODE
Breakdown of the subscribed capital (No. 1)IssuedcapitalstoodatEUR17,468,096.00onthebalancesheetdateandwasdividedinto17,468,096no-par-valuebearershares.
Restrictions to voting rights or the transfer of shares (No. 2)Prof.Dott.Ing.h.c.ManfredFuchs,ChristaFuchsandMarcoR.Fuchs,whoarealsoshareholdersofVOLPAIABeteiligungs-GmbH,andVOLPAIABeteiligungsgesellschaftmbHintheircapacityasshareholdersofOHBAG,enteredintoapoolingcon-tractonDecember20,2001providingforthecoordinatedexer-ciseofvotingrightswithrespecttopresentandfutureshareholdings.OnFebruary4,2009,thepartiessignedanaddendumtothispoolingcontractimposingonthemrestrictionswithrespecttothesaleofthesharesheldinthepoolingcontract.OnJuly10,2009,thepartiessignedarevisedversionofthepoolingcontract.RomanaFuchsMayrhoferjoinedthispoolinJanuary2010.Atotalof69.72%oftheCompany’sissuedcapitalisheldinthispoolingcontract.TherearenochangesinthetotalnumberofpooledvotingrightsasaresultofProf.ManfredFuchs’deathinApril2014.
Shares exceeding 10% of the voting capital (No. 3)Asofthebalancesheetdate,MarcoR.Fuchsheld18.23%ofOHBAG’ssubscribedcapital(3,184,796shares).Theshareof
62
OHB AG | 2014
Group management report
16.39%(2,863,064shares)previouslyheldbyProf.ManfredFuchsiscurrentlystillunderestateadministration.VOLPAIABeteiligungsGmbHholdsafurther21.35%oftheCompany’sshares.TogetherwiththesharesheldbyChristaFuchs(8.02%,1,400,690shares)andRomanaFuchsMayrhofer(5.72%,1,000,000shares),69.72%(12,178,720)oftheCompany’ssharesaresubjecttoapoolingcontractprovidingforthecoordinatedexerciseofvotingrightsasofthebalancesheetdate.
Statutory stipulations and provisions contained in the Company’s bylaws with respect to the appointment and dismis-sal of members of the Management Board and amendments to the bylaws (No. 6)WithrespecttotheappointmentanddismissalofmembersoftheManagementBoard,referenceismadetothestatutorypro-visionscontainedinSections84and85oftheGermanStockCorporationAct.Inaddition,Article7(1)and(2)oftheOHBAG’sbylawsintheversiondatedJune8,2012stipulatethattheSu-pervisoryBoardistoappointthemembersoftheManagementBoardanddeterminetheirnumber.AmemberoftheManage-mentBoardmaybeappointedChairman.Inaddition,theSuper-visoryBoardisempoweredtoappointmembersoftheManage-mentBoardasdeputytotheChairmanoftheManagementBoard.TheprocedureforamendingthebylawsisgovernedbySections133,179oftheGermanStockCorporationAct.Article20ofOHBAG’sbylawsalsoauthorizestheSupervisoryBoardtomakeamendmentstothebylawsaffectingonlytheirwording.
Powers of the Management Board to issue or buy back shares (No. 7)AttheannualgeneralmeetingheldonMay19,2010,theshare-holderspassedaresolutionauthorizingtheManagementBoardtobuybackupto10%oftheCompany’ssharecapitalinexist-enceasofthedateoftheresolutionuntilMay18,2015.Authori-zationwasgrantedtousetheCompany’ssharesforallpurpos-espermittedbylawincludingbutnotlimitedto:• theplacementoftheCompany’ssharesinforeignstock
exchanges,• theacquisitionofallorpartsofotherentitiesorshares
therein,• offeringandtransferringsharestotheemployeesofthe
CompanyorotherrelatedentitiesinaccordancewithSections15etseq.oftheGermanStockCorporationAct.
TheCompanyheld80,496sharesastreasurystockasofthebalancesheetdate.Thisisequivalenttoaround0.46%ofitssharecapital.AttheannualgeneralmeetingheldonMay19,2010,theshareholdersauthorizedtheManagementBoardtoincreasewiththeSupervisoryBoard’sapprovaltheCompany’ssharecapitalbyuptoEUR8,734,048.00onacashornon-cashbasisbyissuingnewsharesonceorseveraltimesonorbeforeMay18,2015.ThenewsharesmayalsobeissuedtotheCompa-
ny’semployees.Inaddition,theCompany’sManagementBoardwasauthorized–subjecttotheSupervisoryBoard’sapproval–toexcludetheshareholders’subscriptionrights• forfractionalamounts;• forpartoftheauthorizedcapitaluptoamaximumofEUR
1,746,809.00providedthatthenewsharesareissuedinre-turnforcashcapitalcontributionsatapricenotmateriallylessthanthestock-marketprice;
• forapartoftheauthorizedcapitaluptoamaximumofEUR8,734,048.00providedthenewshares– areissuedasconsiderationfortheacquisitionofallorpart
ofothercompaniesorentitiesorotherassetsandsuchacquisitionisintheinterestsoftheCompany;or
– areissuedasconsiderationforcashcapitalcontributionstohavetheCompany’sstocklistedinaforeignmarketinwhichithaspreviouslynotbeenadmittedtotrading.
TheManagementBoardisadditionallyauthorizedsubjecttotheSupervisoryBoard’sapprovaltodeterminetheextentandnatureoftheoptionrightsandtheotherconditionsofissue.Pleaserefertothecorrespondingpartsofthenotesonthecon-solidatedfinancialstatementsforfurtherinformation.
XV. CORPORATE GOVERNANCE DECLARATION
ThecorporategovernancedeclarationwasofficiallypublishedonOHBAG’swebsiteinMarch2015.TheInternetaddressis:www.ohb.de>InvestorRelations>CorporateGovernance>Corporategovernancedeclaration
63
OHB AG | 2014
InJune2002,acommissioninstalledbytheGermanFederalGovernmentpublishedrecommendationsknownjointlyasthe“GermanCorporateGovernanceCode”settingoutstandardsofconductandbehaviorforcompanies.CorporategovernanceincludestheentiremanagementandsupervisionsystemandseekstomaketherulesapplicableinGermanymoretranspar-enttonationalandinternationalinvestorsintheinterestsofstrengtheningconfidenceinthemanagementofGermancom-panies.TheSupervisoryBoardandtheManagementBoardofOHBAGarecommittedtotheprinciplesembodiedintheCodeasameansofensuringvalue-orientedcorporategovernanceandsupervisionandwelcometheadoptionoftheseprinciplesinGermany.
Management Board and Supervisory Board shareholdingsAsofthebalancesheetdate,ChristaFuchs,chairwomanoftheSupervisoryBoard,held1,400,690shares,Prof.HeinzStoewer,amemberoftheSupervisoryBoard,1,000sharesandMarcoR.Fuchs,chairmanoftheManagementBoard,3,184,796shares.The2,863,064sharespreviouslyheldbyProf.ManfredFuchswerestillunderestateadministrationasofthereportingdate.TheothermembersoftheManagementBoardDr.FritzMerkleandUlrichSchulzheld1,000and54shares,respective-ly.OnDecember31,2014,VOLPAIABeteiligungs-GmbHheld3,730,170shares.ChristaFuchsheld20%andMarcoR.Fuchs25%ofthecapitalofVOLPAIABeteiligungsgesellschaftasofthereportingdate.The35%shareinVOLPAIABeteiligungs-GmbHpreviouslyheldbyProf.ManfredFuchswasstillunderestateadministrationasofthereportingdate.
Directors’ dealingsIntheyearunderreview,membersoftheCompany’sManage-mentBoardandSupervisoryBoardaswellasrelatedlegalentitiesdidnotreportanysecuritiestransactions.
Objectives regarding the composition of the Supervisory BoardOHBAGseekstoimplementtheprincipleofdiversityinthecompositionoftheSupervisoryBoardandhasformulatedthefollowingobjectivesinthisconnection.ThemembersoftheSupervisoryBoardasawhole(i.e.initsentiretyandnotnecessarilyeachindividualmemberoftheSupervisoryBoard)shouldmeetthefollowingrequirements:• knowledgeoftheaviation/aerospaceindustry,particularly
spacetechnology
• severalyearsofpracticalexperienceinindustryandpublicorganizations/agencies
• extensiveknowledgegainedovermanyyearsinfinance,accounting,bookkeepingandadministration.
Inaddition,theprincipleofdiversityisimplementedbyensur-inganappropriatedegreeoffemalerepresentationontheSupervisoryBoard.Aswellasthis,acombinationofmembersfromtechnicalandcommercialbackgroundsissought.ThenumberofindependentmembersasdefinedinArticle5.4.2oftheCorporateGovernanceCodeistoequalatleastone.
Status of implementationAhighdegreeofdiversityintermsofgender,expertiseandin-ternationalexperiencehasbeenachievedwiththeappointmentofMrs.ChristaFuchs,thefounderofOHBSystemandcommer-cialmanagingdirectorwithmanyyearsofexperience,tothepositionofchairwomanoftheSupervisoryBoard,ProfessorHeinzStoewerasaninternationallyrenownedspacetechnologyexpertandformerleadingmanagerofESAandmanagingdirectoroftheGermanSpaceAgencyandRobertWethmarasapartnerinaninternationallyactivelawfirm.
DECLARATION OF CONFORMITY BY OHB AG PURSUANT TO SECTION 161 OF THE STOCK CORPORATION ACT CONCERNING THE GERMAN CORPORATE GOVERNANCE CODE
OHBAGwelcomestheGermanCorporateGovernanceCodeandthefactthatitisembodiedinstatutorylaw.TheManagementBoardandtheSupervisoryBoardofOHBAGdeclarethattheCompanyconformedtotherecommendationsoftheCorporateGovernanceCodeCommissionappointedbytheGermanFeder-alGovernmentandwillcontinuetodosointhefuture.ThisdeclarationofconformityisbasedontheJune24,2014versionoftheCorporateGovernanceCode.OHBAGdepartsfromtheprinciplesoftheGermanCorporateGovernanceCodeinonlyasmallnumberofpoints:
Disclosures on compensation of the Management Board (4.2.5)OHBAGdisclosesthecompensationpaidtoitsManagementBoardindetailintheannualcompensationreport,whichisincludedinthemanagementreport.Wedonotconsideranyadditionaldisclosuressuchasthoserecommendedin4.2.5tobeappropriateinthelightofreportingrelevance.
corporate Governance Bericht
Corporate Governance64
OHB AG | 2014
Age limits for the Management Board (5.1.2)OHBAGdoesnotsetamaximumageformembersoftheMan-agementBoardasthiswouldlimittheavailabilityofManage-mentBoardmembersforappointmentbytheSupervisoryBoard.
Formation of Supervisory Board committees (5.3)OHBAG’sSupervisoryBoardhasnotformedanycommitteesonaccountofthesmallnumberofmembers(three).
Age limits for the Supervisory Board (5.4.1)TheCorporateGovernanceCoderecommendsdefiningmaxi-mumagesforthemembersoftheSupervisoryBoard.TheSu-pervisoryBoardiselectedbytheshareholdersofOHB;accord-ingly,adefinedagelimitisnotadesirablefactorforselectionpurposes.
ManagementBoardandSupervisoryBoardofOHBAG
Bremen,December17,2014
Corporate Governance 65
OHB AG | 2014
Consolidated financial statements66
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Financial Statements for the Period from January 1, 2014 until December 31, 2014
67 Consolidatedincomestatement67 Consolidatedstatementofcomprehensiveincome68 Consolidatedbalancesheet69 Consolidatedcashflowstatement70 Consolidatedstatementofchangesinequity70 Notestotheconsolidatedfinancialstatements93 Auditor’scertificate
67
OHB AG | 2014
Consolidated financial statements
Note
1. Sales (1)
2. Increase/decreaseininventoriesoffinishedgoodsandworkinprogress (2)
3. Otherownworkcapitalized
4. Otheroperatingincome (3)
5. Totalrevenues
6. Costofmaterials (4)
7. Staffcosts (5)
8. Depreciationandamortization (6)
9. Otheroperatingexpenses
10. Operatingprofit(EBIT)
11. Otherinterestandsimilarincome (7)
12. Otherfinancialexpenses (7)
13. Currencytranslationgains/losses
14. Netprofit/lossfromsharescarriedatequity (7)
15. Investmentincome (7)
16. Netfinancialincome/expense
17. Earningsbeforetaxes
18. Incometaxes (8)
19. Consolidatednetincomefortheyear
20. Minorityinterests (9)
21. Consolidatednetincomefortheyearafterminorityinterests
22. Consolidatedprofitcarriedforward
24. Consolidatedprofit
25. Numberofshares
26. Earningspershare(basic,EUR)
27. Earningspershare(diluted,EUR)
Note
Consolidatednetincomefortheyear
Exchangedifferenceontranslatingforeignoperations (21)
Netgains/lossesfromthemeasurementoffinancialassetsrecordedunderequity (21)
CashflowHedges (21)
Recycling
Gains/lossesarisingduringtheyear
Actuarialgains/losses
Othercomprehensiveincomeaftertax
Comprehensiveincome
Ofwhichattributableto
equityholdersofOHBAG
otherequityholders
inEUR000s
I.CONsOlIdaTEdINCOmEsTaTEmENT
II.CONsOlIdaTEdsTaTEmENTOfCOmpREhENsIvEINCOmE
inEUR000s
2014
728,147
11,707
14,732
18,368
772,954
497,265
176,322
13,016
45,951
40,400
1,601
7,824
–210
0
–93
–6,526
33,874
4,706
29,168
–3,455
25,713
87,484
113,197
17,387,600
1.48
1.48
2014
29,168
–130
1,732
0
–45
–7,625
–6,068
23,100
21,676
1,424
2013
680,121
–4,085
12,990
11,037
700,063
422,629
182,185
16,450
42,446
36,353
1,258
7,209
32
–576
–130
–6,625
29,728
9,660
20,068
–632
19,436
75,558
94,994
17,387,600
1.12
1.12
2013
20,068
–100
3,582
0
–37
–1,526
1,919
21,987
20,633
1,354
68
OHB AG | 2014
Consolidated financial statements
Note
Goodwill (10)
Otherintangibleassets (10)
Property,plantandequipment (11)
Sharescarriedatequity (12)
Otherfinancialassets (13)
Non-currentassets
Othernon-currentreceivablesandassets (14)
Securities (16)
Deferredtaxes
Othernon-currentassets
property,plantandequipment/non-currentassets
Inventories (15)
Tradereceivables (14)
Othertaxreceivables (14)
Othernon-financialassets (14)
Securities (16)
Cashandcashequivalents (17)
Currentassets
Totalassets
Note
Subscribedcapital (18)
Additionalpaid-incapital (19)
Retainedearnings (20)
Othercomprehensiveincome (21)
Treasurystock (22)
Consolidatedprofit
shareholders‘equityexcludingminorityinterests
Minorityinterests (23)
shareholders‘equity
Provisionsforpensionsandsimilarobligations (24)
Othernon-currentprovisions (25)
Non-currentfinancialliabilities (26)
Non-currentadvancepaymentsreceivedonorders (27)
Deferredtaxliabilities
Non-currentliabilitiesandprovisions
Currentprovisions (25)
Currentfinancialliabilities (28)
Tradepayables (29)
Currentadvancepaymentsreceivedonorders (30)
Taxliabilities
Othercurrentliabilities (31)
Currentliabilities
Totalequityandliabilities
assets inEUR000s
shareholders‘equityandliabilities inEUR000s
december31,2014
7,687
48,278
54,270
0
23,539
133,774
1,611
1,665
14,758
18,034
151,808
76,354
331,823
1,968
25,336
2,846
50,478
488,805
640,613
december31,2014
17,468
14,923
521
–6,876
–781
113,197
138,452
8,747
147,199
96,974
2,757
5,012
395
19,410
124,548
24,627
113,784
83,967
131,128
3,909
11,451
368,866
640,613
december31,2013
7,687
42,174
70,282
683
22,591
143,417
2,277
1,631
10,398
14,306
157,723
83,048
269,355
1,201
16,800
3,021
54,259
427,684
585,407
december31,2013
17,468
14,923
521
–3,593
–781
94,994
123,532
9,173
132,705
96,290
3,269
12,898
3,038
18,114
133,609
29,764
67,965
80,950
119,123
6,797
14,494
319,093
585,407
III.CONsOlIdaTEdBalaNCEshEET
69
OHB AG | 2014
Consolidated financial statements
*includingreclassifications2013ofEUR3,608,000
Notesonthecashflowstatementonpage90.
OperatingEBIT
Incometaxespaid
Othernon-cashexpenses(+)/income(–)
Depreciation/amortization
Changesinpensionprovisions*
Grosscashflow
Increase(–)inownworkcapitalized
Increase(–)/decrease(+)ininventories
Increase(-)/decrease(+)inreceivablesandotherassetsincl.accrualsanddeferrals
Increase(+)/decrease(–)inliabilitiesandcurrentprovisions
Increase(+)/decrease(–)inadvancepaymentsreceived
Profit(–)/loss(+)fromthedisposalofassets
Cashflowfromoperatingactivites
Paymentsmadeforinvestmentsinnon-currentassets
Paymentsreceivedfromthedisposalofassets
Netreductionfromlossofcontroll
Paymentsreceivedfromdecreaseoffinancialassets
Interestandotherfinancialincome
Cashflowfrominvestingactivites
Dividendpayout
Paymentsmade/receivedforotherfinancialinstruments
Paymentsmadeforthesettlementoffinancialliabilities
Paymentsreceivedfromraisingborrowings
Minorityinterests
Interestandotherfinancialexpenses*
Cashflowfromfinancingactivities
Changestocashandcashequivalents
Currency-relatedchangestocashandcashequivalents
Cashandcashequivalentsatthebeginningoftheperiod
Cashandcashequivalentsattheendoftheperiod
Cashandcashequivalentsattheendoftheperiodandcurrentfinancialinstruments
January1
Changesincashandcashequivalentsincludingsecuritiesandcurrentfinancialinstruments
december31
inEUR000s
2014
40,400
–9,188
–3,804
13,016
–4,018
36,406
–13,944
–17,642
–80,968
33,467
14,466
–6,805
–35,020
–11,104
918
–4,701
7,550
1,472
–5,865
–6,433
192
–32,857
83,196
–2,173
–4,501
37,424
1,240
–320
54,259
50,478
58,911
–3,922
54,989
2013
36,353
–6,194
0
16,450
–2,848
43,761
–11,458
–641
–68,933
–3,228
11,778
–5,390
–34,111
–12,174
7,802
0
0
1,178
–3,194
–6,433
0
–45,087
60,678
–36
–3,732
5,390
–31,915
–62
86,236
54,259
95,415
–36,504
58,911
Iv.CONsOlIdaTEdCashflOwsTaTEmENT
70
OHB AG | 2014
Consolidated financial statements
vI.NOTEsTOThECONsOlIdaTEdfINaNCIalsTaTEmENTs
GeneralinformationTheCompanyhasitsheadofficeatKarl-Ferdinand-Braun-Str.8in28359Bremen,Germany.OHBAGexercisesthefunctionofanactiveholdingcompanywhichmanagesthesubsidiarieswithintheOHBGroup.TheGroupisprimarilyengagedintheproductionanddistributionofproductsandprojectsaswellastheprovisionofhigh-technologyservicesparticularlyintheareasofspaceandaeronautictechnology,telematicsandsatel-liteservices.
accountingprinciplesandmethodsInaccordancewithRegulation(EC)1606/2002issuedbytheEuropeanParliamentandtheCouncilonJuly19,2002,OHBAGisrequiredtoprepareconsolidatedfinancialstatementsinaccordancewithinternationalaccountingstandards(IFRS/IAS).TheconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththeInternationalFinancialReportingStand-ards(IFRS/IAS)applicableintheEUinthelightoftheinterpre-tationsoftheInternationalFinancialReportingInterpretationsCommittee(IFRIC/SIC)aswellasthesupplementaryprovisionscontainedinSection315aoftheGermanCommercialCode.Theconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththegoing-concernprinciple.TheGroupman-agesitscapitalwiththeaimofensuringthatallGroupmem-bersareabletooperateinaccordancewiththegoing-concernprincipleandwiththeaimofmaximizingincomefromitsinvestmentsbyoptimizingitsequityanddebtcapital.ManagedcapitalcomprisessolelytheequityofEUR147million(previousyear:EUR133million)shownonthefaceoftheconsolidatedfinancialstatements.TheoverallstrategypursuedbytheGroup
wasunchangedover2013.Theexternallyimposedcapitalrequirementswhicharecurrentlynotatriskareadditionallytakenintoaccount.
Inadditiontotheconsolidatedbalancesheet,consolidatedincomestatementandtheconsolidatedstatementofcompre-hensiveincome,theconsolidatedannualfinancialstatementsincludeaconsolidatedcashflowstatementandastatementofchangesinconsolidatedequity.Thenotescontainthedeclara-tionrequiredbySection285No.16oftheGermanCommercialCodeconfirmingthatthedisclosuresstipulatedbySection161oftheGermanStockCorporationActhavebeendulymade.Theincomestatementhasbeencompiledusingthetotal-costmethod.
Thereportingcurrencyistheeuro.Unlessotherwisestated,allamountsarereportedinmillionsofeuros(EURmillion).Itshouldbenotedthattheuseofroundedfiguresandpercentagesmayresultindifferencesduetocommercialrounding.
ConsolidationmethodsThepurchasemethodofaccountingisusedtoaccountfortheacquisitionofsubsidiariesbytheGroup.Allmaterialsubsidiar-iesunderthelegalorconstructivecontrolofOHBAGhavebeenconsolidated.
AnyremainingpositivedifferencebetweenthecostofacquiringtheshareholdingsandthenetassetscalculatedattheirfairvaluesisrecognizedasgoodwillunderIAS3.32.Thefullgoodwillmethodisapplied.
Sales,expenses,incomeaswellasreceivablesandliabili-tiesbetweenconsolidatedcompaniesarenettedandanyinter-Groupprofitseliminated.Thecarryingamountsofcompaniesconsolidatedusingtheequitymethodareadjustedtoallowfortheproportionateprofit/lossattributabletosuchcompanies.
inEUR000s
Note
december31,2012
Dividendpayment(EUR0.37pershare)
Comprehensiveincome
Otherchanges
January1,2013
Dividendpayment(EUR0.37pershare)
Comprehensiveincome
Otherchanges
december31,2014
Subscribedcapital
(18)
17,468
0
0
0
17,468
0
0
0
17,468
Additionalpaid-incapital
(19)
15,094
0
0
–171
14,923
0
0
0
14,923
Retainedearnings
(20)
521
0
0
0
521
0
0
0
521
Othercom-prehensive
income
(21)
–6,260
0
2,667
0
–3,593
0
–4,360
1,077
–6,876
Consolida-tedprofit
81,991
–6,433
19,436
0
94,994
–6,433
25,713
–1,077
113,197
Share-holders‘
equityexclu-dingminori-tyinterests
108,033
–6,433
22,103
–171
123,532
–6,433
21,353
0
138,452
Minorityinterests
(23)
9,299
0
–90
–36
9,173
0
1,748
–2,174
8,747
Share-holders‘equity
117,332
–6,433
22,013
–207
132,705
–6,433
23,101
–2,174
147,199
Treasurystock
(22)
–781
0
0
0
–781
0
0
0
–781
v.CONsOlIdaTEdsTaTEmENTOfChaNGEsINEqUITy
71
OHB AG | 2014
Consolidated financial statements
acquiredbusinessesNoacquisitionswereexecutedduringthisperiod.
ConsolidatedcompaniesOHBAG’sconsolidatedfinancialstatementsincludeOHBAG,eightdomesticandfivenon-domesticsubsidiariesandafur-thernon-domesticassociateaccountedforusingtheequitymethod.Thetableentitled“Consolidationperimeter”setsoutthesubsidiariesandassociatestogetherwiththerelativesizeoftheshareheld.Comparedwiththepreviousyear,thenumberofcompaniesconsolidatedwasreducedbytwo.Kayser-ThredeGmbH,STSSystemtechnikSchwerinGmbHandTimtecTelda-transGmbHweremergedwithOHBSystemAG.Inthisconnec-tion,KTBeteiligungsGmbH&Co.KGwasdissolvedanditsassetstransferredtoOHBAG.ThereductionintheshareinAerotechPeissenbergGmbH&Co.KGasaresultoftheissueofnewsharecapitalsubscribedtobyothershareholdersresultedinthedeconsolidationofthiscompanyinMay2014.Conse-quently,itisnowrecognizedusingtheequitymethodofaccountingwithinthe“Aerospace+IndustrialProducts”busi-nessunit.Onthedateonwhichitwasdeconsolidated,Aero-tech-PeissenbergGmbH&Co.KGhadnon-currentassetsofEUR22.596million(December31,2013:EUR23.205million),currentassetsofEUR39.750million(December31,2013:EUR41.226million),liabilitiesofEUR48.819million(December31,2013:EUR56.726million)andprovisionsofEUR15.312million(December31,2013:EUR13.416million).The34%shareinELTAS.A.,whichhadhithertobereportedusingtheequitymethodofaccounting,wassoldinDecember2014.
Inaddition,shareswereheldinothercompanies(seetableentitled“Furtherequityinterestsandfinancialassets”,page74).InaccordancewiththeprincipleofmaterialitypursuanttotheIFRS/IASframework,thecompaniesstatedinthetable,whicharefundamentallysubjecttocompulsoryconsolidation(OHBshare›20%),arenotincludedintheconsolidationperim-eter.Thesecompanies’cumulativecurrentsalesandEBITarenotconsideredtomakeanymaterialcontributionstoconsoli-datedearnings.Subsidiarieswithdiscontinuedorminimalbusi-nessactivitieswhichareofonlyminorimportanceforobtainingatrueandfairviewoftheOHBGroup’snetassets,financialconditionandresultsofoperationsaswellasitscashflowarenotconsolidated.Theshareholdingsshowninthetablesenti-tled“Consolidationperimeter”and“Furtherinvestmentsandfinancialassets”correspondtothevotingrightsheld.
OHBAG’sconsolidatedfinancialstatementsincludethefollowingcompanies:see“consolidationperimeter”table.
CurrencytranslationMostoutgoinginvoicesaredenominatedineuro.Incomingandoutgoinginvoicesdenominatedinaforeigncurrencyareconvertedandrecognizedonthebalance-sheetdate.Foreign-currencybankbalancesweretranslatedattheend-of-yearexchangerate.Theannualfinancialstatementsoftheinde-pendentnon-domesticsubsidiaryOHBSwedenABwerepreparedinitsdomesticcurrency(SEK)andtranslatedusingthefunctionalcurrencyprincipleinaccordancewithIAS21.
Consolidatedcompanies
Nameofcompany shareheld(%) Consolidation
OHBSystemAG,Bremen(Germany) 100.0 Fullyconsolidated
ORBCOMMDeutschlandSatellitenkommunikationAG,Bremen(Germany)¹ 100.0 Fullyconsolidated
CGSS.p.A.,Milan(Italy) 100.0 Fullyconsolidated
OHBSwedenAB,Stockholm(Sweden) 100.0 Fullyconsolidated
AntwerpSpaceN.V.,Antwerp(Belgium) 100.0 Fullyconsolidated
LuxSpaceSàrl,Betzdorf(Luxembourg) 100.0 Fullyconsolidated
MTAerospaceHoldingGmbH,Bremen(Germany) 70.0 Fullyconsolidated
MTAerospaceAG,Augsburg(Germany)² 100.0 Fullyconsolidated
MTAerospaceGrundstücksGmbH&Co.KG,Munich(Germany)³ 100.0 Fullyconsolidated
MTMechatronicsGmbH,Mainz(Germany)³ 100.0 Fullyconsolidated
MTAerospaceGuyaneS.A.S.,Kourou(FrenchGuiana)³ 100.0 Fullyconsolidated
AerotechPeissenbergGmbH&Co.KG,Peissenberg(Germany)² 43.3 AtEquity
OHBTeledataGmbH,Bremen(Germany) 100.0 Fullyconsolidated
megatelInformations-undKommunikationssystemeGmbH,Bremen(Germany) 74.9 Fullyconsolidated
¹heldbyOHBSystemAG²heldbyMTAerospaceHoldingGmbH³heldbyMTAerospaceAG
72
OHB AG | 2014
Consolidated financial statements
Theforeign-currencydifferencearisingfromtranslationoftheequitycapitalisrecordedwithinequityfromunrealizedgains/losses.
summaryofsignificantaccountingpoliciesTheInternationalAccountingStandardsBoard(IASB)andIFRIChaverevisedthefollowingstandardsandinterpretationswhicharesubjecttocompulsoryapplicationfrom2014:> IfRs10ConsolidatedFinancialStatements–IFRS10
replacestheguidanceonconsolidationcontainedinIAS27.IAS27nowprovidesguidanceonaccountingforsubsidiar-ies,associatesandjointventuresintheinvestor’sseparatefinancialstatements.IFRS10nowcontainsguidanceonconsolidationwhichhadpreviouslybeenincludedgenerallyinIAS27andspecificallyforspecial-purposeentitiesinSIC12.Itintroducesauniformcontrolconcept.Thus,aninves-torcontrolsaninvesteeifithaspowerovertheinvestee,exposuretovariablereturnsfromitsinvolvementandtheabilitytouseitspowerovertheinvesteetoaffecttheamountofthereturn.Theapplicationofthisamendedstandarddidnotgiverisetoanychangestotheconsolidatedfinancialstatements.
> IfRs11JointArrangements–IFRS11providesguidanceonsituationsinwhichacompanyhasaninterestinarrange-mentsthatarejointlycontrolled.IFRS11replacestheguid-
anceinIAS31andSIC13.Asaresultofthemodifieddefini-tions,therearenowtwo“kinds”ofjointarrangements:jointoperationsandjointventures.Theclassificationofjointlymanagedassets(IAS31)hasnowbeenincludedinjointoperations.Thepreviousoptionofproportionateconsolida-tionforjointventuresunderIAS31hasbeenabolished.Instead,jointventuresmustbeaccountedforintheconsoli-datedfinancialstatementsusingtheequitymethod.Asbefore,jointoperationsareaccountedforonaproportionatebasisintheseparateandconsolidatedfinancialstatementsofthejointoperators.TheserulesarenotrelevantfortheOHBGroup.
> IfRs12DisclosuresofInterestsinotherEntities–replacestheguidanceinIAS27,IAS28,IAS31andSIC12onthedis-closurestobeincludedinthenotes.Accordingly,itprovidesuniformguidanceonthedisclosuredutiesforallkindsofinterestsinotherentities.Underthenewstandard,compa-niesmustdiscloseinformationenablingtheusersofthefinancialstatementstoevaluatethenatureofandrisksassociatedwiththeirinterestsinsubsidiaries,associates,jointarrangementsandunconsolidatedstructuredentities.Thedisclosuresintheconsolidatedfinancialstatementshavebeendulyenhanced.
> Ias27SeparateFinancialStatements–IAS27hasbeenmodifiedbythenewconsolidationpackagestandards(IFRS
IfRsadoptedinEuropeanlaw
AnnualimprovementofIFRS-period2011-2013
IfRIC21–Disposals
IfRsnotyetadoptedinEuropeanlaw
IfRs9FinancialInstruments
IfRs14RegulatoryDeferralAccounts
IfRs15RevenuefromContractswithCustomers
InvestmentEntities:ApplyingtheConsolidationException(AmendmentstoIfRs10,IfRs12andIas28)
DisclosureInitiative(AmendmentstoIas1)
SaleorContributionofAssetsbetweenanInvestoranditsAssociateorJointVenture(AmendmentstoIfRs10andIas28)
EquityMethodinSeparateFinancialStatements(AmendmentstoIas27)
BearerPlants(AmendmentstoIas16andIas41)
ClarificationofAcceptableMethodsofDepreciationandAmortisation(AmendmentstoIas16andIas38)
AccountingforAcquisitionsofInterestsinJointOperations(AmendmentstoIfRs11)
DefinedBenefitPlans:EmployeeContributions(AmendmentstoIas19)
AnnualImprovementstoIfRss2010-2012Cycle
AnnualImprovementstoIfRss2012-2014Cycle
Effectivedate(EU)
TobeappliedinaccountingperiodsbeginningonorafterJuly1,2014
TobeappliedinaccountingperiodsbeginningonorafterJune17,2014
Effectivedate
January1,2018
January1,2016
January1,2017
January1,2016
January1,2016
January1,2016
January1,2016
January1,2016
January1,2016
January1,2016
July1,2014
July1,2014
January1,2016
73
OHB AG | 2014
Consolidated financial statements
10,IFRS11).FollowingthepublicationofthenewIFRS10,IAS27nowonlyprovidesguidanceonaccountingforsubsid-iaries,jointventuresandassociatesandthecorrespondingdisclosuresinthenotestotheseparatefinancialstatementsunderIFRS.Theapplicationofthisamendedstandarddidnotgiverisetoanychangestotheconsolidatedfinancialstatements.
> Ias28,InvestmentsinAssociatesandJointVentures–TheamendmentsrelatetothechangestoIAS36asaresultofthepublicationofIFRS13.WiththeintroductionofIFRS13,thedisclosurerequirementsinIAS36weretoobroadinsomecases.Thus,forexample,itwouldhavebeenneces-sarytodisclosetherecoverableamountofacash-generat-ingunitwithgoodwillorintangibleassetsofanindefiniteusefulliferegardlessofwhetheranyimpairmentwasrecorded.Undertheamendedguidance,therecoverableamountmustnowonlybedisclosedifanimpairmentwasrecognizedintheperiodinquestion.TheserulesarenotrelevantfortheOHBGroup.
> Disclosuresonrecoverableamountinthecaseofnon-financialassets(amendmentstoIas36–theamendmentsrelatetothechangestoIAS36asaresultofthepublicationofIFRS13.WiththeintroductionofIFRS13,thedisclosurerequirementsinIAS36weretoobroadinsomecases.Thus,forexample,itwouldhavebeennecessarytodisclosetherecoverableamountofacash-generatingunitwithgoodwillorintangibleassetsofanindefiniteusefulliferegardlessofwhetheranyimpairmentwasrecorded.Undertheamendedguidance,therecoverableamountmustnowonlybedis-closedifanimpairmentwasrecognizedintheperiodinquestions.Inaddition,theamendmentsclarifyandextendthedisclosurerequirementswithrespecttoimpairedassetswhoserecoverableamountwasdeterminedonthebasisoftheirfairvaluelesscosttosell.Theapplicationofthisamendedstandarddidnotgiverisetoanychangestotheconsolidatedfinancialstatements.
> Novationofderivativesandcontinuationofhedgeaccounting(amendmentstoIas39)–thepurposeoftheamendmentsistopreventanyeffectsonhedgeaccountingwhenderivativesrequiredfornovationarenecessary.AsaresultoftheamendmentstoIAS39,thenovationofaderivativedoesnotleadtothedissolutionofthehedgeprovidedthatcertainconditionsarecumulativelysatisfied.Theapplicationofthisamendedstandarddidnotgiverisetoanychangestotheconsolidatedfinancialstatements.
> JointArrangementsandDisclosureofInterestsinOtherEntities–transitionguidance(amendmentstoIfRs10,IfRs11andIfRs12)–thepurposeoftheamendmentsistoclar-ifythefirst-timeapplicationofIFRS10.Additionally,furtherexceptionsaredefinedinallthestandardsoftheconsolida-
tionpackage.Inaddition,therestatementofthecomparisonfiguresarisingfromretrospectiveapplicationisrequiredonlyforthe(immediately)precedingperiodevenifreportingcoversmorethanonecomparisonperiod.TheserulesarenotrelevantfortheOHBGroup.
> Investmententities(amendmentstoIfRs10,IfRs12andIas27)–theamendmentstoIFRS10,IFRS12andIAS27definetheterm“investmententity”.Inaddition,aparentcompanywhichisaninvestmententityisrequiredtomeas-ureitssharesinindividualassociatesatfairvaluethroughprofitandlossintheconsolidatedandseparatefinancialstatements.TheserulesarenotrelevantfortheOHBGroup.
> Offsettingofafinancialassetandafinancialliability(amendmentstoIas32)–thisamendmentclarifiesanum-berofrulespertainingtotheoffsettingoffinancialassetsandfinancialliabilitiesonthebalancesheet.TheserulesarenotrelevantfortheOHBGroup.
TheIASBhasissuedthestandards,interpretationsandrevisionstoexistingstandardssetoutinthetableonpage72whicharenotyetcompulsoryanddonotbecomesountilfuturereportingperiodsandwhichOHBAGhasnotadoptedonavoluntaryearlybasis.Onthebasisofapreliminaryassessment,theapplicationoftheabove-mentionedstandardsandinterpretationswillnotexertanymaterialinfluenceonthepresentationofthefinancialstatements.TheManagementBoardofOHBAGhasdecidednottoapplytheaforementionedstandardsbeforetheaccountingperiodsinwhichapplicationbecomesmandatory.
ChangesinaccountingpolicyTherehavebeennochangesintherecognitionormeasurementprinciplescomparedwiththepreviousyear.
RecognitionofrevenuesRevenuesandotheroperatingincomefromseriesproductionarerecognizedonthedateonwhichtheservicesorgoodsareprovidedorriskpassestothecustomer.Withrespecttolong-termcontractconstruction,thepercentage-of-completionmethodprovidedforinIAS11isapplied,subjecttoreasonablediscountsonthebasisofatrueandfairviewtoallowforunex-pectedfutureriskstotheextentthatitispossibletocalculatethepartialprofitwithadequateprecisiononthebasisofthepercentageofcompletion.Forthispurpose,thepercentageofcompletionisdeterminedonthebasisofthecontractcostswhichhavearisenasofthereportingdaterelativetotheexpectedtotalcontractcosts.Revenuesfromcontractsarecal-culatedbymultiplyingthepercentageofcompletionwiththecontractuallyagreedproceedsincludinganysubsequentlyagreedadditions.Long-termprojectsinprogressonthereportingdate(remainingdurationsofbetweenoneandtenyears)arerecognizedasrevenueonthebasisofproduction
74
OHB AG | 2014
Consolidated financial statements
costsplusrefundableadministrativeoverheadcostsprovidedthatapartialprofitcanbeestimatedwithareasonabledegreeofreliability.Partialprofitsarerecognizedinotherprojectsusinggenerallyacceptedprinciples.
OwnworkcapitalizedDevelopmentexpenditureisrecognizedasanassetpursuanttoIAS38.57ifanewlydevelopedproductorprocesscanbeclearlydelineated,istechnicallyfeasibleandisintendedeitherfortheCompany’sownuseorforsale.Afurtherconditionisthatitmustbesufficientlylikelyforthedevelopmentexpendi-turetoberecoupedfromfuturecashflows.Suchexpenditureisrecognizedonthebasisoftheproductioncostsincurred,pri-marilydevelopmenthoursmultipliedbytheapplicablehourlyrate.Intheyearunderreview,researchanddevelopmentcostsofEUR2.168million(previousyear:EUR7.380million)wererecordedasexpenseasthecriteriaprovidedforinIAS38.57werenotsatisfied.OfthetotaldevelopmentcostsofEUR20.1million(previousyear:EUR22.1million),anamountofEUR13.9million(previousyear:EUR10.8million)wascapitalizedandEUR4.0million(previousyear:EUR3.9million)receivedintheformofgrants.Intheyearunderreview,theinternallyproducedintangibleassetsofoneGroupcompanywerere-
assessed,resultinginanincreasedusefullifewithapositiveeffectonearningsofEUR0.981million.Theincomefromdevel-opmentgrantsisrecognizedupontheoccurrenceoftherelatedcosts.Incomefromgrantsisreportedgross,i.e.itisnotnettedwithexpenses.Atthemoment,thereisnoevidenceindicatingthattheconditionsimposedbytheprovidersofgrantscannotbesatisfied.
NetfinanceexpenseNetfinanceincome/expenseincludestheshareofprofitsofassociatesaccountedforusingtheequitymethodaswellasotherinvestmentsincludingprofitfromthesaleoffinancialassets,adjustmentstothevalueoffinancialassets,otherinter-estexpenditureonliabilities,dividends,interestincomeonreceivablesandforeign-currencygainsandlosses.Interestincomeisrecordedintheincomestatementusingtheeffectiveinterestmethod.Dividendsarereportedintheincomestate-mentuponaresolutiontodistributeadividendbeingpassed.Interestexpenditureonpensionprovisionsarealsoreportedasotherinterestexpenditure.
Nameofcompany
RSTRadarSystemtechnikGmbH,Salem(Germany)*
OHBFranceS.A.,Paris(France)*
OHB-ElectroOPticsGmbH,Bremen(Germany)*
beosGmbH,Bremen(Germany)
ATBGmbH,Bremen(Germany)
OHBMarineTechnologiesGmbH,Bremen(Germany)*
COSMOSInternationalSatellitenstartGmbH,Bremen(Germany)*
CosmosSpaceSystemsAG,Bremen(Germany)*
TelemondoInternationalGmbH,Bremen(Germany)*
KTVerwaltungsgesellschaftmbH,Bremen(Germany)*
AntaresS.c.a.r.l.,SanGiorgioDelSannio(Italy)*
ArianespaceParticipation,Evry(France)
MTDezentraleEnergiesystemeGmbH,München(Germany)*
MTMecatronicaLimitada,SantiagodeChile(Chile)*
MTMecatronicas.r.l.,Cagliari(Italy)*
MTManagementServiceGmbH,Augsburg(Germany)*
ORBCOMMInc.,RochellePark,NJ(USA)
*notconsolidatedintheyearunderreviewformaterialityreasons
furtherinvestmentsandfinancialassets
share-
holders’equity000s
1,018
n/a
10
399
503
603
205
59
13
23
190
n/a
1,023
–172
8
n/a
158,904
shareincapitalEUR
000s
190
37
13
60
26
25
13
40
26
25
58
8,328
1,022
530
10
26
12,008
shareheld(%)
24.0
100.0
50.0
12.0
5.0
100.0
49.9
66.6
100.0
100.0
24.0
8.3
100.0
99.9
100.0
100.0
4.7
profit/loss000s
49
n/a
–1
14
27
–1
7,181
2
0
0
0
n/a
0
–185
–2
n/a
3,735
latestannualfinancial
statement
2013
n/a
2013
2012
2013
2013
2013
2013
2013
2013
2013
n/a
2014
2014
2014
n/a
2013
75
OHB AG | 2014
Consolidated financial statements
IntangibleassetsAsofeachreportingdate,OHBreviewsthecarryingamountsofitsintangibleassetstoidentifyanyevidenceofimpairment.
Inthiscase,therecoverableamountoftheassetinquestioniscalculatedtodeterminetheamountofanyimpairment.Therecoverableamountisdefinedasthefairvaluelesspossiblecoststosellorthevalueinuse,whicheveristhegreater.
Intangibleassetsacquiredfromthirdpartiesprimarilycomprisesoftwareprogramsandlicenses.Thesearewrittendownonastraight-linebasisoveraperiodofbetweenoneandfifteenyears.Internallygeneratedassetsarewrittendownonastraight-linebasisovertheirexpectedusefullifeoffourtoeightyears.Forthepurposeofidentifyinganyimpairment,goodwillmustbeallocatedtoeachcash-generatingunitwithintheGroupexpectedtoderiveanybenefitfromthesynergisticeffectsofthebusinesscombination.Cash-generatingunitstowhichpartofthegoodwillisallocatedaresubjecttoannualimpairmenttesting.Ifthereisanyevidenceofimpairmentofacash-gener-atingunit,itistestedmorefrequentlyforimpairment.Iftherecoverableamountofacash-generatingunitislessthanitscarryingamount,theimpairmentlossisinitiallyassignedtothecarryingamountofallgoodwillallocatedtotheunitandthenonaproportionatebasistotheotherassetsonthebasisofthecarryingamountofeachassetwithintheunit.Theuseofgrowthratesisofonlysubordinateimportanceasplanningisprimarilyinfluencedbyspecificprojects.
property,plantandequipmentAsofeachreportingdate,OHBreviewsthecarryingamountsofitsproperty,plantandequipmenttoidentifyanyevidenceofimpairment.Inthiscase,therecoverableamountoftheassetinquestioniscalculatedtodeterminetheamountofanyimpair-ment.Therecoverableamountisdefinedasthefairvaluelesspossiblecostsofsaleorthevalueinuse,whicheveristhegreater.Assetsclassedasproperty,plantandequipmentarecarriedathistoricalcostlessscheduledstraight-linedeprecia-tionovertheirexpectedusefullives.Subsequentexpenditureonassetswhichdoesnotincreasetheirvalueormateriallyextendtheirusefullivesisexpensed.Materialadditionsandimprove-mentsarerecognizedasassets.Disposalsarereflectedinhis-toricalacquisitioncostsaswellasaccumulativedepreciation.Profitandlossfromthedisposalofassetsarerecordedwithinoperatingincome/expenses.Thefollowingdepreciationperiodsareappliedtoproperty,plantandequipment:betweentenand33yearsforbuildings,fivetotenyearsformachineryandtech-nicalequipmentandthreetotenyearsforotherequipmentaswellasoperatingandbusinessequipment.
financialassetssharesinassociatesSharesinassociatesarereportedathistoricalcostincludingtheshareintheirprofit/lossfortheyear.
OtherfinancialassetsOtherfinancialassetsarereportedathistoricalcost(lessanyimpairments)or,ifmarketpricescanbeidentified,attheirfairvalue.Atesttoidentifyanyobjectiveevidenceofimpairmentisperformedasofeachreportingdate.ThisitemcomprisestheinvestmentsinORBCOMMInc.,detailsofwhosestockmarketpriceswereavailableasofthereportingdate.Adjustmentsresultingfromfairvalueaccountingarerecognizedunderequity.Thedeferredtaxarisingfromthisisreportedunderdeferredtaxliabilities.Otherfinancialassetsaresetoutinthetableentitled“Furtherinvestmentsandfinancialassets”.
InventoriesInventoriesarerecognizedathistoricalcostorthelowernetrecoverablevalueprevailingonthereportingdate.Productioncostscomprisetheindividualcostsofmaterialandproduction,overheadcostsofmaterialandproductionaswellasdeprecia-tionandamortizationexpenseinconnectiontheproductionequipment.Theyalsoincludeoverheadadministrationcosts.Partoftheinventoriesweremeasuredusingthemovingaver-agemethod.
76
OHB AG | 2014
Consolidated financial statements
ReceivablesReceivablesandotherassetsarereportedattheirsettlementamount.Ifinindividualcasestherearejustifieddoubtsastowhetherreceivablescanberetrieved,theyarewrittendownorrecordedatthelowerrecoverablevalue.
InthecaseofconsolidatedcompanieswithconstructioncontractsasdefinedinIAS11ontheirbooks,thepercentage-of-completionmethodisappliedallowingforreasonabledis-countsonthebasisofatrueandfairviewtotakeaccountofunexpectedfuturerisksasfarasitispossibletocalculatethepartialprofitwithadequateprecisiononthebasisoftheper-centageofcompletion.Constructionprojectsinprogressonthereportingdate(remainingdurationsofbetweenoneandeightyears)arerecognizedasassetsonthebasisofproductioncostsplusproratedrefundableadministrativeoverheadcostspro-videdthatapartialprofitcanbeestimatedwithareasonabledegreeofreliability.ProjectsforwhichpartialprofitshavebeenrecognizedarereportedunderrevenuespursuanttoIAS11.22.Thecorrespondingcontractcostsarerecognizedascostofmaterials/servicesinthefiscalyearinquestion.
securities/financialinstrumentsThefairvaluesaredeterminedonthebasisofthestockmarketpricesasofthereportingdate.Non-currentsecuritiesaremeasuredinaccordancewithIAS39andIFRS7(Reclassifica-tionofFinancialAssets).
deferredincometaxesPursuanttoIAS12,temporarydifferencesbetweenthecarry-ingamountofassetsorliabilitiesonthebalancesheetandtheirtaxbaseinaccordancewithIFRS/IASgiverisetodeferredincometaxes.TheOHBGroupappliesauniformdomestictaxrateof32%forcalculatingdeferredincometaxes.
EquityIAS32(FinancialInstruments:DisclosureandPresentation)stipulatesthatequitymustnotincludeanycontractualobliga-tiontodelivercashoranyotherfinancialassettoanotherentity.OHBAGdefinesequityassubscribedcapital,thesharepremium,unrealizedgainsandlossesrecognizedwithinequity,retainedearningsandaccruedprofitbroughtforward.
RetirementbenefitprovisionsObligationsunderdefinedbenefitplansarecalculatedusingtheprojectedunitcreditmethodinaccordancewithIAS19(EmployeeBenefits).Theexpectedbenefitsaredeferredovertheentireperiodofserviceoftheemployees.
OtherprovisionsOtherprovisionshavebeenreliablyassessedformattersresultinginanoutflowofenterpriseresourcestosettlepresentobligationsinaccordancewithIAS37.Estimatesareprimarilybasedondetailedcalculations.
liabilitiesLiabilitiescomprisefinancialliabilities,tradepayablesandotherliabilities.Financialliabilitiesarereportedatamortizedcost.Anydifferencesbetweenhistoricalcostandthesettle-mentamountarereportedinaccordancewiththeeffectiveinterestmethod.Otherliabilitiesarerecognizedattheirnomi-nalorsettlementamount.
EstimatesProperandfullpreparationoftheconsolidatedfinancialstate-mentsrequirestosomedegreetheuseofestimatesandassumptions,whichaffecttheassetsandliabilitiesreported,thedisclosureofcontingentliabilitiesandreceivablesonthebalancesheetandtheincomeandexpensesrecognized.Theactualamountsmayvaryfromtheseestimatesandassump-tionsinindividualcases.Anyadjustmentsaretakentotheincomestatementuponfurtherknowledgebecomingavailable.Thevalueofgoodwillisdeterminedinanannualimpairmenttest.Thistestinvolvesestimatesoffuturecashinflows.FuturechangesinthegeneraleconomicenvironmentandthesituationofthesectororCompanymayresultinareductioninnetcashinflowsand,hence,impairthevalueofthegoodwill.Technicalprogress,deteriorationinthemarketsituationordamagemaynecessitatenon-scheduleddepreciationofproperty,plantandequipment.Thepercentage-of-completionmethodisappliedtolong-termconstructioncontractsprovidedthattheapplicableconditionsaresatisfied.Forthispurpose,thecostsincurredaredividedbythetotalcoststocalculatethepercentageofcompletion.Pensionprovisionsarecalculatedonthebasisofanumberofpremisesandassumedtrends,theapplicationofbiometricprobabilitiesaswellasgenerallyacceptedapproxi-mationmethodstodeterminepensionobligations.Actualpay-mentobligationsarisingovertimemayvaryfromthese.Taxprovisionsandimpairmenttestingofdeferredtaxassetsarealsobasedonestimates.Indeterminingthevalueofdeferredtaxassets,uncertaintymayarisewithrespecttotheinterpre-tationofcomplextaxlegislationaswellastheamountandtim-ingoffuturetaxableincome.Otherprovisionsarerecognizedinthelightofavailableknowledgeandusingthecustomaryscopefordiscretion.Inviewofthecurrentconditionsintheeconomyandthefinancialmarkets,itisnotpossibleatthisstagetomakeanyreliableassumptionsontherangeofpossibleadjust-mentswhichmayneedtobemadetotheestimatesin2015.
77
OHB AG | 2014
Consolidated financial statements
vII.NOTEsONThECONsOlIdaTEdINCOmEsTaTEmENT
(1)salesRevenuesfromconstructioncontractsasdefinedinIAS11cametoEUR619.819millionin2014(previousyear:EUR506.830million).TherelatedcontractcostsstoodatEUR597.591million(previousyear:EUR476.507million).Theresult-antearningsbeforeinterestandtaxes(EBIT)for2014equaledEUR22.228million(previousyear:EUR30.324million).
Salesbreakdownbybusinessunitasfollows:
inEUR000s 2014 2013
SpaceSystems 545,286 466,927
Aerospace+IndustrialProducts 193,993 220,316
Consolidation –11,131 –7,122
Total 728,147 680,121
additionaldisclosuresonpOCmeasurement(Ias11)
inEUR000sNet
assetsNet
liabilities Total
Expenses+profit 1,585,879 376,020 1,961,899
Prepaymentsreceived 1,302,305 447,938 1,750,243
amountshownonbalancesheet
283,574
–71,918
211,656
(2)Increase/decreaseininventoriesoffinishedgoodsandworkinprogressTheincreaseininventoriesoffinishedgoodsandworkinpro-gressprimarilyrelatestotheincreaseofEUR11.0millioninthe“Aerospace+IndustrialProducts”businessunit(previousyear:decreaseofEUR3.7million).Alltold,inventoriesrosebyEUR11.7million(previousyear:declineofEUR4.1million).
(3)OtheroperatingincomeTheotheroperatingincomeofEUR18.368million(previousyear:EUR11.037million)includesincomefromthesaleofthesharesinELTAS.A.ofaroundEUR7millionandtheproceedsfromthedeconsolidationofATPofEUR3.8million.IncomefromgrantsstandsatEUR3.975million(previousyear:EUR3.892million).
(4)Costofmaterials
inEUR000s 2014 2013
Costofrawmaterialsandgoodspurchased 325,787 301,294
Costofservicesbought 171,478 121,335
Total 497,265 422,629
(5)staffcosts
inEUR000s 2014 2013
Wagesandsalaries 146,330 151,700
Socialsecurityandexpenditureonretirementbenefits 29,992 30,485
Total 176,322 182,185
RetirementbenefitsandretirementbenefitprovisionscametoEUR4.734million(previousyear:EUR4.447million).
(6)depreciationandamortizationNonon-scheduleddepreciation/amortizationwasrequiredintheyearunderreview.Furtherdetailsondepreciation/amorti-zationaresetoutintheconsolidatedstatementofchangesinassets.
Intangibleassetsandproperty,plantandequipment
Financialassets
Currentassets
Provisions
Liabilities
Taxlossesandcredits
Balance
Total
analysisofdeferredtaxesandassets
inEUR000s 2014 2014 2013
Deferredtaxassets
50
382
12
13,424
403
8,044
–7,557
14,758
2013
Deferredtaxliabilities
13,126
337
13,248
135
0
121
–7,557
19,410
Deferredtaxassets
217
393
125
11,776
177
6,546
–8,836
10,398
Deferredtaxliabilities
12,379
310
13,919
8
28
306
–8,836
18,114
Changeeffectingnetincome
–914
–8
538
–1,503
254
1,683
0
50
Changeeffectingnetincome
–1,709
–105
–2,194
2,519
–354
647
0
–1,196
78
OHB AG | 2014
Consolidated financial statements
(7)Netfinanceincome/expenseTheinterestincomeofEUR1.601million(previousyear:EUR1.258million)primarilycomprisesinterestearnedontheinvestmentofcashinfixed-termdeposits.
TheotherfinanceexpenseofEUR7.824million(previousyear:EUR7.209million)chieflyrelatestointerestexpenditureonretirementbenefitprovisionsofEUR3.323million(previousyear:EUR3.565million)andborrowingcostsofEUR3.013mil-lion(previousyear:EUR1.951million).
shareofprofit/lossofassociatesTheshareofprofit/lossofassociatescomprisestheshare
intheprofitofEUR0(previousyear:lossofEUR0.576million)sustainedbyELTAS.A.TheproportionateshareintheprofitorlossofAerotechPeissenbergGmbH&Co.KGstandsatEUR0millionin2014.
(8)IncometaxesActualincometaxofEUR5.078million(previousyear:EUR3.759million)arosewithrespecttotheconsolidatedGermancompanies;incometaxofEUR0.439million(previousyear:EUR1.099million)aroseoutsideGermany.Domesticincometaxesin2014werecalculatedindetailusingdifferenttaxrates.DeferredtaxassetsarerecognizedpursuanttoIAS12.Thedomesticdeferredincometaxiscalculatedonthebasisoftaxratesof32%.
Reconciliationoftaxexpense
inEUR000s 2014 2013
Taxesatataxrateof32.00% 10,840 9,513
Reductionsintaxexpensesasaresultofpartiallytax-exemptincome –3,332 –1
Taxlossesutilized –5,154 –386
Non-deductibleoperatingexpenses 1,316 335
Othertaxeffects –452 –6
Off-periodtaxexpense 1,768 197
Differencesinforeigntaxrates –280 8
Effectivetaxexpense 4,706 9,660
deferredincometaxesThedeferredincometaxassetsprimarilyarisefromthediffer-enceinprovisionsforretirementbenefitcommitmentsinaccordancewithtaxlawsontheonehandandIFRSontheother.
In2014,deferredincometaxassetsofEUR0.811million(previousyear:EUR1.196million)wererecognizedinprofitandloss.TwosubsidiariesrecognizeddeferredincometaxassetsonunusedtaxlossesofEUR1.754million(previousyear:EUR0.823million).DeferredincometaxeswererecognizedontheunusedtaxlossesofEUR5.096millionreportedbyAntwerpSpaceN.V.forthefirsttimeduetothesustainedpositivebusi-
nessperformance.Deferredincometaxeswererecognizedonthatpartoftheunusedtaxlosseswhichareexpectedtobeset-tledinthecomingeightyearsinaccordancewiththecompany’splans.
(9)Non-controllinginterestsNon-controllinginterestsarevaluedatEUR3.455million(pre-viousyear:EUR0.632million)andchieflyrelatetoMTAero-spaceHoldingGmbH.TheMTHoldingsubgroup,inwhichOHBAGholdsa70%share,generatedtotalrevenuesofEUR199.150million(previousyear:EUR211.943million),EBITofEUR19.489million(previousyear:EUR6.557million)andEBITDAofEUR24.209million(previousyear:EUR14.362million).
IfRs/IasearningspershareBasicearningspersharearecalculatedbydividingthepost-taxearningsattributabletothesharesinquestionbythetotalnumberofshareswithdividendentitlement.Thisindicatormaybedilutedbyso-calledpotentialshares–particularlyoptionsandsubscriptionrights.Therewerenocomparablerightsasofthereportingdate.Accordingly,thereisnodifferencebetweenbasicanddilutedearningspershare.TheCompany’ssharecapitalstandsatEUR17,468,096.00.Thecalculationswerebasedon17,387,600sharesastheCompanyheldanannualaverageof80,496treasuryshares.TheconsolidatednetprofitofEUR25.713million(previousyear:EUR19.436million)netofnon-controllinginterestswasusedforcalculationpurposes.Earningspersharefor2014cametoEUR1.48(previousyear:EUR1.12).
vIII.NOTEsONThECONsOlIdaTEdBalaNCEshEET
(10)GoodwillandotherintangibleassetsThebalancesheetfortheyearendingDecember31,2014includesgoodwillofEUR7.687million(previousyear:EUR7.687million).
Goodwill
inEUR000s 2014 2013
Goodwillfromconsolidationof:OHBSystemMunich 5,003 5,003
CGSS.p.A. 801 801
OHBSystemBremen 681 681
megatelGmbH 646 646
ORBCOMMDeutschlandAG 556 556
Total 7,687 7,687
Goodwillwastestedforimpairmentatthelevelofthecashgen-eratingunitsasdesignatedintheabovetable.Goodwillunder-wentimpairmenttestingasofDecember31,2014.Noimpair-mentswereidentified.Therecoverableamountwascalculatedonthebasisofthevalueinuse,whichinturnwasdetermined
79
OHB AG | 2014
Consolidated financial statements
byusingadiscountedcashflowmethod.Thiswasbasedontheforecastscoveringaperiodoffiveyearsapprovedbymanage-mentforthecompaniesconcerned.Apre-taxweightedaveragecostofcapital(WACC)of9.10%(previousyear:10.90%)wasappliedtodomesticgoodwillandof12.80%(previousyear:14.60%)tonon-domesticgoodwill.Theotherintangibleassetschieflycompriseownworkcapitalized(seeconsolidatedstate-mentofchangesinassets).Goodwillandotherintangibleassetsareanalyzedonpages88/89.ThedefinitionsoftheCGUshavebeenmodifiedinthelightofthemergersin2014.TheformerKayser-ThredeCGUisnowreferredtoasOHBSystemMunichand,incontrasttothepreviousyear,isnolongeralegallyindependententity.ThegoodwillattributabletoSTSSystemtechnikSchwerinGmbHandTimtecTeldatransGmbHhasbeenallocatedtotheOHBSystemBremenCGU.AnincreaseintheWACCof1percentagepointwouldnotresultinanimpairment.
(11)property,plantandequipmentAdditionsintheyearunderreviewprimarilyentailedtechnical/electroniclaboratoryequipment,technicalequipmentandmachinery,hardware,operatingandbusinessequipmentandminor-valueassets.Withtheexceptionofthelandchargesreferredtoin“Otherfinancialobligations”,therearenorestric-tionsontheownershiprightstotheremainingassetsclassedasproperty,plantandequipment.Thedepreciationamountsaresetoutintheconsolidatedstatementofchangesinassets.Noimpairmentswererecognized.Property,plantandequip-mentareanalyzedonpages88/89.
(12)sharesinassociatesThisitemcomprisestheshareintheequityofATP,Peissen-berg.Themajorityshareholderexercisesacontrollinginflu-enceonthisentity’sbusinessmodel.ATPrecordedtotalreve-nuesofEUR62.855million,EBITofEUR1.378millionandEBITDAofEUR3.470millionin2014fromthedateonwhichitwasaccountedforusingtheequitymethod.Ithadnon-currentassetsofEUR28.913millionandcurrentassetsofEUR36.534millionasofDecember31,2014.Asthecompanyhadnegativeequityasofthereportingdate,thisitemstandsatEUR0(previ-ousyear:ELTAEUR0.683million).
(13)OtherfinancialassetsTheincreaseinfairvaluerecognizedwithinequityofEUR1.760million(previousyear:EUR3.625million)relatestotheremeasurementofthesharesheldinORBCOMMInc.ItwasremeasuredonthebasisofthestockmarketpriceofORB-COMMInc.asofDecember31,2014andtheUSD/EURexchangerateasofthesamedate.Thestatementofcomprehensiveincomeincludesnetgains/lossesfromthemeasurementoffinancialassetsofEUR1.732million(previousyear:EUR3.582million).
(14)Currentandnon-currentreceivablesandotherassetsReceivablesandotherassetsarerecognizedatamortizedcost.ReceivablesofEUR1.611million(previousyear:EUR2.277mil-lion)aredueforsettlementinmorethanoneyear.Thecarryingamountsofcurrentassetsandotherreceivablesprimarilymatchtheirfairvalue.ReceivablesofEUR202.988million(pre-viousyear:EUR215.174million)relatetoconstructioncontractsrecognizedusingthepercentage-of-completionmethod.Re-ceivablesandotherassetsmainlycomprisecurrentandnon-currentloans;therearenomaterialinterestordefaultrisks.Asofthereportingdate,currencyforwardsworthUSD11.2millionhadbeentransactedtohedgeunderlyingcontractsofUSD10.7milliontocovertheexportsofaconsolidatedcompany.Thedifferenceisreportedascashflowhedgesforexpectedorderreceiptsin2014.Tradereceivablesaredueforsettlementinlessthanoneyearandarereportedatamortizedcost,whichgenerallyequalstheirsettlementamountnetofanyadjust-ments.
Reasonableadjustmentsaremadetoallowfordiscerniblerisks.Asofthereportingdate,adjustmentsofatotalofEUR1.563million(previousyear:EUR3.794million)hadbeenmade.Othertaxreceivableschieflycompriseincometaxrefundclaims.
(15)InventoriesInventoriesdroppedoverthepreviousyeartoEUR76.354mil-lion(previousyear:EUR83.048million).Prepaymentsreceivedarenotnettedwithinventories.
inEUR000s 2014 2013
Rawmaterialsandsupplies 11,249 18,105
Unfinishedgoodsandservices 48,153 49,491
Finishedgoodsandmerchandise 1,828 6,178
Prepaymentsmade 15,124 9,274
Total 76,354 83,048
Prepaymentsmadewereallocatedtoinventoriesduetotheircloserelationship.Impairmentswererecognizedonworkinprogressandincludedinprofitandlossintheyearunderreview.
(16)securitiesAsofthereportingdate,thesecuritiesportfoliowasvaluedatEUR4.512million(previousyear:EUR4.652million).Thisbreaksdownasfollows:financialassetsatfairvaluethroughprofitorlossEUR2.846million(previousyear:EUR2.830mil-lion)andloansandreceivablesEUR1.666million(previousyear:EUR1.822million).Financialrisksprimarilycompriseliquidity,marketpriceandcounterpartydefaultrisks.Therearenomaterialshort-termliquidityorcounterpartydefaultrisksaslow-riskinvestmentfundsareselectedforthemostpart.Intheinterestsforavertingmarketpricerisks,virtuallyallcashisinvestedinfundswhichcanberedeemedatshortnoticeinordertoachievebroadriskdiversification.
80
OHB AG | 2014
Consolidated financial statements
(17)CashandcashequivalentsCashandcashequivalentswerevaluedatEUR50.478milliononthereportingdate(previousyear:EUR54.259million)andcomprisedcashinhandandcashatbanks.Thecashatbanksisduewithinthreemonthsandisexposedtoonlyaminimalriskofanychangeinvalue.
(18)subscribedcapitalSinceSeptember30,2009,theCompany’sissuedcapitalhasequaledEUR17,468,096.00andisdividedinto17,468,096no-par-valueordinarybearersharesequivalenttoanotionalshareofEUR1.00eachintheCompany’sissuedcapital.Oftheseshares,anunchangednumberof5,208,880comparedwiththepreviousyearisfreefloat.Thereisonevoteforeachshareheld.
(a)ContingentcapitalAttheirannualgeneralmeetingheldonJanuary23,2001,theCompany’sshareholderspassedaresolutiontoincreasetheCompany’ssharecapitalbyapprovingtheissueofatotalofEUR516,404.00intheformofupto516,404bearersharesonacontingentbasis.Thecontingentcapitalincreaseistobeusedforgrantingoptionstoentitledpersonsunderastaffcompen-sationsystem.Nosuchstaffcompensationsystemsarecur-rentlyinoperation.Thecontingentcapitalincreasemayonlybeimplementediftheholdersofsuchoptionsexercisethese.Thenewsharesaredividend-entitledforthefirsttimeintheyearinthecourseofwhichtheyareissued.TheManagementBoardisauthorizedsubjecttotheSupervisoryBoard’sapprovaltodeterminethespecificconditionsforsuchcontingentcapitalincrease.IntheeventthatoptionsaregrantedtomembersoftheCompany’sManagementBoard,theSupervisoryBoardisauthorizedtodeterminethespecificconditionsforsuchcontin-gentcapitalincrease.
(b)authorizedcapitalAttheirannualgeneralmeetingheldonMay19,2010,theshareholderspassedaresolutionauthorizingtheCompany’sManagementBoard–withtheSupervisoryBoard’sapproval–toraisethesharecapitalonceorrepeatedlybyatotalofuptoEUR8,734,048.00onacashornon-cashbasis(authorizedcapi-tal)onorbeforeMay18,2015.ThenewsharesmayalsobeissuedtotheCompany’semployees.TheCompany’sManage-mentBoardwasauthorized–subjecttotheSupervisoryBoard’sapproval–toexcludetheshareholders’subscriptionrightsinthefollowingcases:(1)forfractionalamounts;(2)forpartoftheauthorizedcapital2010uptoamaximumofEUR1,746,809.00providedthatthenewsharesareissuedinreturnforcashcapitalcontributionsatapricenotmaterially
lessthanthestock-marketprice(Section186(3)Sentence4oftheGermanStockCorporationAct);(3)forapartofthe2010authorizedcapitaluptoamaximumofEUR8,734,048.00providedthenewshares– areissuedasconsiderationfortheacquisitionofallorpartof
othercompaniesorentitiesorotherassetsandsuchacquisi-tionisintheinterestsoftheCompanyprovidedthatsuchacquisitionisintheinterestsoftheCompany;or
– areissuedasconsiderationforcashcapitalcontributionstohavetheCompany’sstocklistedinaforeignmarketinwhichithaspreviouslynotbeenadmittedtotrading.
TheManagementBoardisadditionallyauthorizedsubjecttotheSupervisoryBoard’sapprovaltodeterminetheextentandnatureoftheoptionrightsandtheotherconditionsofissue.
(c)authorizationtoacquireandselltreasurystockAttheannualgeneralmeetingheldonMay19,2010,theshare-holdersauthorizedtheCompanytobuybacktreasurystockofuptoatotalof10%oftheCompany’ssharecapitalonorbeforeMay18,2015.Uponthisauthorizationtakingeffect,theauthori-zationgrantedonMay13,2009fortheacquisitionandutiliza-tionoftreasurystockwasrevoked.
a)TheCompanyisauthorizedtobuybackatotalofupto10%ofitsownsharecapitalintheamountexistingasofthedateonwhichtheresolutionwaspassed.AtnotimemaythesharesacquiredbytheCompanytogetherwithothertreasurystockalreadyacquiredorstillheldbyitorattributabletoitinaccord-ancewithSections71d,71eoftheGermanStockCorporationActexceedmorethantenpercent(10%)ofitssharecapital.
TheauthorizationmaybeexercisedbytheCompanyinfullorinpart,onceorrepeatedlyorfordifferentpurposesandmayalsobeexercisedbydependentcompaniesorcompaniesinwhichOHBAGholdsamajoritystakefortheiraccountorforthird-partyaccount.
TheauthorizationexpiresonMay18,2015.Theauthoriza-tiongrantedbytheshareholdersintheirresolutionpassedonMay13,2009wascanceleduponthisnewauthorizationtakingeffect.
b)Theacquisitionofsharesmustcomplywiththeequaltreat-mentprinciple(Section53aoftheStockCorporationAct)andisexecutedattheManagementBoard’sdiscretioneitherviathestockmarket(1)orinapublicofferingaddressedtoallshare-holders(2).Inthesecondcase,theprovisionsoftheSecuritiesAcquisitionandTransferActmustbeobservedwhereapplicable.
81
OHB AG | 2014
Consolidated financial statements
(1)IftheCompanybuysbackitsownsharesviathestockmarket,thepurchasepricepaidpershare(netoftransactioncosts)maynotbeanymorethan10%aboveorbelowtheaver-ageclosingpriceofthestockinXETRAtrading(oranequivalentreplacementsystem)ontheFrankfurtstockexchangeonthelastthreetradingdayspriortoacquisitionoftheshares.
(2)IftheCompanybuysbackitsownsharesinapublicofferingaddressedtoallshareholders,thepurchasepricepaidpershare(netoftransactioncosts)maynotbeanymorethan10%aboveorbelowtheaverageclosingpriceofthestockinXETRAtrading(oranequivalentreplacementsystem)ontheFrankfurtstockexchangeonthefifth,fourthandthirdtradingdayspriortothepublicationoftheoffer.Ifsuchapublicofferingisoversubscribed,thesharesmustbeboughtbackonaquotasystem.Provisionmaybemadeforthepreferredacceptanceofalowervolumeofupto100sharesofferedpershareholderandroundinginaccordancewithcommercialprovisions.
c)TheManagementBoardisauthorizedtoutilizethetreasurystockacquiredthroughtheexerciseoftheauthorizationmen-tionedaboveforallpurposespermittedbylaw,includingbutnotlimitedtothefollowing:
(1)ActingwiththeapprovaloftheSupervisoryBoarditmayusethetreasurystocktohavetheCompany’sstocktradedonforeignstockexchangestowhichithashithertonotbeenadmitted.
(2)SubjecttotheapprovaloftheSupervisoryBoard,itmayofferortransferthetreasurystocktothirdpartiesforthepur-poseofacquiringcompanies,partsofcompaniesorequityinterestsincludingbutnotlimitedtoadditionstoexistingequityinterests.
(3)ItmayofferthetreasurystocktotheemployeesoftheCompanyorotherentitiesrelatedtoitinaccordancewiththedefinitioninSections15etseq.oftheGermanStockCorpora-tionActasemployeeshares.
(4)ActingwiththeapprovaloftheSupervisoryBoard,itmayredeemthetreasurystockwithoutanyneedforaresolutionoftheshareholdersapprovingsuchredemptionorrelatedactivi-ties.
d)TheManagementBoardisauthorized–subjecttotheapprovaloftheSupervisoryBoardandwithoutanyobligationforafurtherresolutiontobepassedbytheshareholders–tosellthetreasurystockacquiredinaccordancewiththeaboveauthorizationorinanyothermannereitherpubliclyorintheformofanoffertotheshareholdersprovidedthatthesaleisforcashandthepriceofferedisnotmateriallylessthanthepriceatwhichequivalentstockissuedbytheCompanyistradingonthestockmarketonthedateofthesale.Forthepurposesoftheaboverule,thestockmarketpriceisdefinedasthearithmeticmeanofthepricefixedfortheCompany’sstockintheclosingauctionsinXETRAtrading(oranequivalentreplacementsys-tem)ontheFrankfurt/Mainstockexchangeonthelastfivetradingdaysbeforethedateofthesale.Thisauthorizationislimitedtoatotalof10%oftheCompany’ssharecapital.Themaximumof10%isreducedbytheproratedshareinthesharecapitalaccountedforbyshareswhichareissuedduringthetermofthisauthorizationaspartofanequityissueinwhichpre-emptiveshareholderrightsareexcludedinaccordancewithSection186(3)Sentence4oftheGermanStockCorpora-tionAct.Thevolumecoveredbytheauthorizationisalsoreducedbyanamountequalingtheproratedshareinthesharecapitalaccountedforbyconversionand/oroptionrightsunderbondsissuedsincethedateonwhichthisauthorizationtakeseffectinconnectionwithwhichpre-emptiveshareholderrightsareexcludedinaccordancewithSection186(3)Sentence4oftheGermanStockCorporationAct.
e)Theaforementionedauthorizationsmaybeutilizedonceorrepeatedly,inpartorinfull,individuallyorjointly.
Changesinequitynotrecognisedthroughtheincomestatement
inEUR000s
Exchangedifferenceontranslatingforeignoperations
Netgains/lossesfromthemeasuremenmtoffinancialassetsrecordedunderequity
CashflowHedges
Actuarialgains/losses
Total
beforetax
–130
1,760
–65
–10,648
–9,083
beforetax
–86
3,625
–37
–1,501
2,001
taxeffects
0
–28
20
3,024
3,016
taxeffects
0
–43
11
698
666
net
–130
1,732
–45
–7,625
–6,068
net
–86
3,582
–26
–803
2,667
2014 2013
82
OHB AG | 2014
Consolidated financial statements
f)Theshareholders’pre-emptivesubscriptionrightswithrespecttotheCompany’streasurystockareexcludedincasesinwhichitisusedinaccordancewiththeauthorizationsdescribedinc)(1)–(3)andd)above.
(19)sharepremiumThesharepremiumprimarilycomprisesthecashproceedsfromthestock-marketflotation.
(20)RetainedearningsRetainedearningsincludesthenegativegoodwillarisingfromtheconsolidationofnewlyacquiredcompaniesupuntil2002.
(21)UnrealizedgainsandlossesrecognizedunderequityThisequityitemrelatestothefair-valuemeasurementofthesharesheldinORBCOMMInc.onthebasisofthestockpriceonthereportingdatenetofthecarryingvalues.Thisadjustmentwasrecognizedwithinequity.
Intheyearunderreview,noprovisionswhichhadbeensetasideinearlieryearswerereleasedtoprofitandlossornettedagainstacquisitioncosts.Italsoincludestheforeigncurrencytranslationdifferencesarisinginconnectionwithindependentsubsidiaries.
(22)TreasurystockOnSeptember13,2011,theManagementBoardofOHBAGdecidedtoimplementastockbuybackprogramandtoacquireupto250,000oftheCompany’ssharesinaccordancewitharesolutionpassedbytheshareholdersattheannualgeneralmeetingonMay19,2010.Uponthisauthorizationtakingeffect,theauthorizationgrantedonMay13,2009fortheacquisitionandutilizationoftreasurystockwasrevoked.ThepurposeofthetreasurystockistoplacetheCompany’ssharesinforeignstockmarkets,topayfortheacquisitionofothercompanies,partsofcompaniesorsharesinsuchcompaniesandtoissuesharestotheCompany’semployees.TheCompanyhasbeenbuyingbacksharesonthestockmarketfloorsinceSeptember14,2011.Sincethebeginningofthebuybackprogram,atotalof13,542shareshavebeenacquiredatanaveragepriceofEUR11.0145.Noshareswereboughtbackintheyearunderreview.
statementofchangesinprovisions
inEUR000s
Pension provisions
–ofwhichnon-current
Other provisions
–ofwhichnon-current
Total
BalanceonDecember31,
2013
96,290
96,290
33,033
3,269
129,323
Added
15,189
15,189
27,630
2,432
42,819
Utilized
4,159
4,159
25,796
765
29,955
Released
1,076
1,076
1,441
467
2,517
Balance
0
0
0
0
0
Changestoconsolidatedcompanies
–9,270
–9,270
–6,042
–1,712
–15,312
BalanceonDecember31,
2014
96,974
96,974
27,384
2,757
124,358
AsofDecember31,2014,OHBAG’streasurystockcomprisedatotalof80,496shares,equivalentto0.46%ofitsissuedcapital.
(23)Non-controllinginterestsThenon-controllinginterestsarevaluedatEUR8.747million(previousyear:EUR9.173million)andprimarilyrelatetotheco-shareholdersintheMTAerospacesubgroup.Thenon-con-trollinginterestsreceiveddividendsofEUR2.173millionintheyearunderreview(previousyear:EUR0.036million).Asofthereportingdate,MTHolding,inwhichOHBAGholdsa70%inter-est,hadnon-currentassetsofEUR54.642million(previousyear:EUR78.779million),currentassetsofEUR166.403mil-lion(previousyear:EUR173.470million),equityofEUR14.107million(previousyear:EUR16.512million),non-currentdebtcapitalofEUR104.914(previousyear:EUR119.374million)andcurrentdebtcapitalofEUR102.023million(previousyearEUR116.362million).
(24)RetirementbenefitprovisionsRetirementbenefitobligationsbreakdownasfollows:
inEUR000s 2014 2013
Retirementbenefits 93,994 94,340
Similarobligations 2,979 1,950
Retirementbenefitobligations 96,674 96,290
OHBGrouphasmadearrangementsforretirementbenefitsforentitledemployeesinbothbusinessunits.Theamountofthefuturebenefitsisgenerallybasedonthelengthofservice,amountofremunerationandpositionheldwithintheCompany.Thedirectandindirectobligationsencompassthoseunderexistingpensionsandentitlementtofuturepensionsandretire-mentbenefits.Reinsurancehasbeentakenouttocoverretire-mentbenefitobligations.Notallofthesereinsurancepoliciessatisfytheconditionsforclassificationasplanassets.Thelat-terarereportedwithinothernon-currentassets.Thereinsur-ancepolicieswhichsatisfytheconditionsforclassificationasplanassetsarenettedwiththeretirementbenefitobligations.Therewerenoextraordinaryexpensesorincomeasaresultoftheterminationofanyplansoronaccountofthecurtailmentor
83
OHB AG | 2014
Consolidated financial statements
transferofbenefitsintheyearunderreview.Anetcashoutflowcomparabletothepreviousyearisexpectedfor2015(Note4).Thecalculationofpost-retirementbenefitobligationstakesaccountofmarketinterestratesaswellastrendsinwagesandsalaries,pensionsandfluctuationsonthebasisofthefollowingactuarialassumptions:• Discountrate:2.15%(previousyear:3.60%)• Wage/salarytrend:2.75%(previousyear2.75%)• Wagedrift:0.00%(previousyear0.00%)• Pensiondrift:1.25%(previousyear1.75%)
ThefollowingalternativeactuarialassumptionsapplytothesubsidiaryCGSS.P.A.:• Wage/salarytrend:0.00%(previousyear0.00%)• Pensiondrift:3.00%(previousyear3.00%)
ThefollowingalternativeactuarialassumptionsapplytothesubsidiaryAntwerpSpaceN.V.:• Discountrate:1.75%(previousyear:3.15%)• Wage/salarytrend:1.00%(previousyear1.00%)• Pensiondrift:2.00%(previousyear2.00%)• Expectedreturnonplanassets:1.75%(previousyear:3.15%)
Theseparametersarealsoappliedinthefollowingyeartothecalculationofthecostoftheentitlementacquired.Thetotalcostofdefinedbenefitpensioncommitmentsbreaksdownasfollows:
inEUR000s 2014 2013
Currentservicecost 874 927
Interestexpense 3,323 3,608
Expectincome–fromplanassets –203 –227
Total 3,994 4,308
Thepresentvaluesofthedefinedbenefitobligationschangedasfollows:
inEUR000s 2014 2013
PresentvalueofthedefinedbenefitobligationsonJanuary1
100,282
97,488
Changesinthecompaniesconsolidated –10,120 0
Presentvalueoftheentitlementacquiredintheyear
874
928
Interestexpenditureonentitlementalreadyacquired
3,323
3,607
Paymentsfromprovisions –4,734 –4,631
Actuarialgains(–)/losses(+) 10,410 2,890
presentvalueofthedefinedbenefitobligationsondecember31 100,035 100,282
Theplanassetsbreakdownasfollows:
inEUR000s 2014 2013
ValueofplanassetsonJanuary1 6,497 6,729
Paymentsmade –680 –517
Expectedincome 203 227
Actuarialgains(+)/losses(–) 21 58
Retirementbenefitobligations 6,041 6,497
ActualincomefromplanassetscametoEUR0.224million(previousyear:EUR0.286million).
Thepresentvalueisreconciledwiththedefinedbenefit(definedbenefitliability(+)/definedbenefitasset(–))asfollows:
inEUR000s 2014 2013
ActualpresentvalueofthedefinedbenefitobligationonDecember31
100,035
100,282
Fairvalueofplanassets –6,041 –6,497
Retirementbenefitobligationsrecordedonthebalancesheet 93,994 93,785
Theretirementbenefitobligationbreaksdownintoadefinedbenefitliabilityanddefinedbenefitassetasfollows:
inEUR000s 2014 2013
Definedbenefitasset 0 –555
Definedbenefitliability 93,994 94,340
Thechangeinthepresentvalueofthedefinedbenefitobliga-tionsasaresultofconsolidationchangesrelatestothedecon-solidationofAerotechPeissenbergGmbH&Co.KGeffectiveMay31andthetransferofeligibleemployeesandrecipientsofbenefitsfromMTAerospaceAGtothenewlyestablishedentityMTManagementServiceGmbH.Inaddition,thepresentvalueofthedefinedbenefitobligationsasofDecember31includesactuariallossesofEUR9.363millionforMTAerospaceAGandEUR0.766millionforAntwerpSpaceN.V.particularlyasaresultofdeclininginterestrates.
Asaresultofthelowerinterestrate,anetretirementbene-fitliability(definedbenefitasset<-definedbenefitliability)ofEUR0.414million(previousyear:EUR–0.555million)aroseatthesubsidiaryAntwerpSpaceN.V.
ThepresentvalueofthedefinedbenefitobligationsofEUR0.407million(previousyear:EUR0.691million)wascalculatedinaccordancewiththeentryagenormalmethod.Thefractionalvaluesarecomputedusingactuarialprinciplesonthebasisofthe2005GbiometrictablescompiledbyProf.Dr.KlausHeu-beckandaninterestrateof4.58%.Withrespecttotheseprovi-sions,itisassumedthattheapplicationoftheprojectedunitcreditmethodprovidedforinIAS19doesnotresultinanymajordifferencesinthisitem.Ifthediscountratewere0.25%lower,thepresentvalueoftheretirementbenefitobligationswouldincreasebyEUR3.361million.Ifthediscountratewere0.25%higher,thepresentvalueoftheretirementbenefitobli-
84
OHB AG | 2014
Consolidated financial statements
gations would decrease by EUR 3.258 million. If the rate by which pensions rise were 0.25% higher, the present value of the retirement benefit obligations would increase by EUR 2.648 million. If the rate by which pensions rise were 0.25% lower, the present value of the retirement benefit obligations would decrease by EUR 2.594 million.
(25) Other provisions (current and non-current)Non-current provisions primarily comprise provisions for phased retirement scheme obligations in the “Aerospace + Industrial Products” business unit. Current provisions of EUR 4.597 million (previous year: EUR 13.182 million) were set aside for the cost of purchased materials and services for which deliveries had already been received but for which the corre-sponding invoices were still outstanding. Other provisions pri-marily relate to obligations towards employees of EUR 13.395 million (previous year: EUR 12.604 million).
(26) Non-current financial liabilitiesThis mostly entails non-current liabilities towards banks owed by the Italian subsidiary CGS S.p.A. in an amount of EUR 4.855 million (previous year: EUR 2.342 million). The reduction in the overall item compared with the previous year is largely due to the deconsolidation of Aerotech Peissenberg GmbH & Co. KG. These liabilities are due for settlement in more than twelve months after the reporting date. The average interest rate on these liabilities stands at 1.2%.
(27) Non-current prepayments receivedThis entails prepayments made by customers for contracts under construction which are due for completion in more than twelve months. They are measured at their nominal amounts.
(28) Current financial liabilitiesThis entails current liabilities towards banks held by OHB AG (EUR 33.000 million), OHB System AG (EUR 77.181 million), MT
Carrying amounts of financial instruments by type in 2014
Financial assets
0
0
23,539
0
Trade
receivables
0
330,328
0
0
Other receivables and assets
0
29,372
0
0
Securities and cash and cash
equivalents
0
50,478
0
2,846
Total
0
410,178
23,539
2,846
in EUR 000s
Held-to-maturity assets (HtM)
Loans and receivables (LaR)
Available-for-sale assets (AfS)
Trading assets (FAHfT)
in EUR 000s
Financial liabilities measured at amortised cost (FLAC)
Trading liabilities (FLHfT)
Financial liabilities
118,796
0
Trade
payables
83,967
0
Advance pay-ments received
on orders
130,027
0
Other
liabilities
16,613
0
Total
349,403
0
Carrying amounts of financial instruments by type in 2013
Financial assets
0
0
22,591
0
Trade
receivables
0
269,355
0
0
Other receivables and assets
0
20,279
0
0
Securities and cash and cash
equivalents
0
56,081
0
2,830
Total
0
345,715
22,591
2,830
in EUR 000s
Held-to-maturity assets (HtM)
Loans and receivables (LaR)
Available-for-sale assets (AfS)
Trading assets (FAHfT)
in EUR 000s
Financial liabilities measured at amortised cost (FLAC)
Trading liabilities (FLHfT)
Financial liabilities
80,863
0
Trade
payables
80,950
0
Advance pay-ments received
on orders
122,161
0
Other
liabilities
21,291
0
Total
305,265
0
85
OHB AG | 2014
Consolidated financial statements
loansettlementperiods
inEUR000s
Non-currentfinancialobligations
Non-currentprepaymentsreceived
Currentfinancialliabilities
Tradepayables
Currentprepaymentsreceivedonorders
Taxliabilities
Othercurrentliabilities
Total
Lessthanoneyear
157
0
113,784
75,432
127,272
3,909
11,451
332,005
Onetotwoyears
3,975
394
0
0
3,856
0
0
8,225
Threetofiveyears
880
0
0
0
0
0
0
880
Morethanfiveyears
0
0
0
0
0
0
0
0
Total
5,012
394
113,784
75,432
131,128
3,909
11,451
341,110
liquidityrisks
Netgains/lossesbycategoryin2014
inEUR000s
Financialassetsatfairvaluethroughprofitandloss FAFVPL
ofwhichfinancialinstrumentsdesignatedusingthefairvalueoption
ofwhichheldfortrading
Held-to-maturityfinancialassets HtM
Loansandreceivables LaR
Available-for-salefinancialassets AfS
Financialliabilitiesatfairvaluethroughprofitandloss FLFVPL
ofwhichfinancialinstrumentsdesignatedusingthefairvalueoption
ofwhichheldfortrading
Financialliabilitiesatamortizedcost FLAC
Historicalcost
2,920
0
2,920
0
410,178
18,813
0
0
0
349,403
Fairvalue
2,846
0
2,846
0
410,178
23,539
0
0
0
349,403
Netfair-valuegains/lossesrecognizedin
equity
0
0
0
0
0
1,760
0
0
0
0
Netprofit/lossfortheperiod
28
0
28
0
35
0
0
0
0
0
Netgains/lossesbycategoryin2013
inEUR000s
Financialassetsatfairvaluethroughprofitandloss FAFVPL
ofwhichfinancialinstrumentsdesignatedusingthefairvalueoption
ofwhichheldfortrading
Held-to-maturityfinancialassets HtM
Loansandreceivables LaR
Available-for-salefinancialassets AfS
Financialliabilitiesatfairvaluethroughprofitandloss FLFVPL
ofwhichfinancialinstrumentsdesignatedusingthefairvalueoption
ofwhichheldfortrading
Financialliabilitiesatamortizedcost FLAC
Historicalcost
2,920
0
2,920
0
345,715
18,813
0
0
0
305,265
Fairvalue
2,818
0
2,830
0
345,715
22,591
0
0
0
305,265
Netfair-valuegains/lossesrecognizedin
equity
0
0
0
0
0
3,625
0
0
0
0
Netprofit/lossfortheperiod
123
0
123
0
80
0
0
0
0
0
86
OHB AG | 2014
Consolidated financial statements
prisessolelysuchassets.Currentfinancialliabilitieschieflycompriseamountsdrawnonacreditfacility,utilizationofwhichissubjecttocompliancewithtwofinancialcovenantsattheleveloftheOHBGroup.Thehistoricalcostofloansandreceiva-blesmostlyequalstheirfairvalue(nominalamountlessanyimpairment).Thefairvalueoffinancialliabilitiesatamortizedcostisderivedfromtheirdiscountedsettlementamounts.Oth-erwise,fairvaluesaredeterminedbyreferencetolistedprices.
measurementhierarchyforfinancialassetsatfairvaluethroughprofitandlosslevel1:Financialinstrumentstradedinactivemarkets,thelistedpricesofwhichareappliedformeasurementpurposes.level2:Financialinstrumentsaremeasuredusingmethodswithparameterswhicharederiveddirectlyorindirectlyfromobservablemarketdata.level3:Financialinstrumentsaremeasuredusingmethodswithparameterswhicharenotbasedsolelyonobservablemarketdata.
Ofthefinancialassetsatfairvaluethroughprofitandloss,anamountofEUR2.846million(previousyear:EUR2.818mil-lion)referstocurrentsecuritiesthefairvaluesofwhicharecalculatedinaccordancewithLevel1.Thefairvaluesoftheavailable-for-salefinancialassetsofEUR12.008million(previ-ousyear:EUR10.248million)arecalculatedinaccordancewithLevel1.TheotherfairvaluesofEUR11.531million(previousyear:EUR12.343million)werecalculatedusingLevel3.
AerospaceAG(EUR9.968million)andtheItaliansubsidiaryCGSS.p.A.(EUR2.588million).Therewerenoliabilitiesunderoper-atingleasesasofthereportingdate.
(29)TradepayablesLiabilitiesarereportedattheirsettlementamount.Allliabili-tiesaredueforsettlementwithinoneyear.
(30)CurrentprepaymentsreceivedThisitemcomprisesprepaymentsmadebycustomersforcon-tractsunderconstructiondueforcompletioninlessthantwelvemonths.
(31)OthercurrentliabilitiesTheseprimarilyentailpersonnel-relatedobligations.
additionaldisclosuresonfinancialinstrumentsOriginatedfinancialassetsprimarilycompriseotherfinancialassets,receivables,securitiesavailableforsaleandheldtomaturityandcashandcashequivalents.Theavailable-for-saleandheld-for-tradingfinancialassetsarereportedattheirfairvalueandtheotherfinancialassetsatamortizedcost.Origi-natedfinancialliabilitiesprimarilycompriseliabilitiesmeas-uredatamortizedcost.Holdingsoforiginatedfinancialinstru-mentsarereportedonthefaceofthebalancesheetandmeas-uredattheirmaximumdefaultrisk.Adjustmentsaremadeforalldiscerniblerisksofdefaultinfinancialassets.Financialinstrumentsforwhichmarketpricesareavailableareclassi-fiedasavailable-for-salefinancialassets;thiscategorycom-
segmentreporting
inEUR000s
Sales
ofwhichinternalsales
Totalrevenues
Costofmaterialsandservicespurchased
EBITda
Depreciationandamortization
EBIT
Non-currentassets
Currentassets
Totalassets
Equity
Liabilities
Totalequityandliabilities
Investmentsnetoffinancialassets
2014
545,286
2,744
563,972
402,296
21,030
6,985
14,046
68,755
350,346
419,101
82,400
336,701
419,101
20,728
2014
193,993
8,387
213,537
102,578
25,493
6,052
19,441
48,345
186,700
235,045
22,999
212,046
235,045
4,271
spacesystems aerospace+Industrialproducts
2013
466,927
338
484,465
322,385
36,396
7,398
28,998
55,326
285,198
340,524
68,871
271,653
340,524
12,978
2013
220,316
6,697
223,079
106,214
16,322
9,069
7,253
71,643
195,236
266,879
25,211
241,668
266,879
9,602
87
OHB AG | 2014
Consolidated financial statements
CreditrisksCreditrisksaregenerallylow,theportfolioofreceivablesisbroadlydiversified(noriskclustering)andbusinessistrans-actedonlywithinvestment-gradecounterparties.Inaddition,however,generalcreditrisksmayalwaysoccurasaresultofspecificeconomicconditions.TheGroupasawholedoesnottakeoutanycreditinsuranceforreceivablesasalargepartofitscustomerbaseismadeupofpublic-sectoragencies.
CurrencyriskTheUSD/EURexchangerateinfluencesincomeinaviationbusi-ness.Morethan80%ofordersandreceivablesdenominatedinUSdollarswerehedgedbymeansofcurrencyforwardsfor2014.
InterestrisksGenerallyspeaking,investmentswithlowinterestratesarepreferredsoastoavertinterestrisksandaresubjecttonormalmarketfluctuation.Short-termloansareraisedtocoverre-quirementsofcurrentassetsarisingfromprojectpaymentcycles.Forthispurpose,fundsunderaloanfacilityagreementwithamarket-basedfloatinginterestratecomponentareused.
A1%changeintheinterestrateonsuchdrawingswouldresultinadditionalexpenseofaroundEUR1.300million.
IX.OThERINfORmaTION
segmentreportingIFRS8stipulatesthatoperatingsegmentsaretobedefinedonthebasisofinternalsegmentreportingwhichisregularlyreviewedbytheCompany’schiefoperatingdecisionmakerwithrespecttotheallocationofresourcestothesesegmentsandtheassessmentoftheirprofitability.ThemainmanagementindicatorsusedwithintheOHBGrouparetotalrevenues,EBITandEBITDA.InformationreportedtotheManagementBoardasthechiefoperatingdecisionmakerforthepurposesofallo-catingresourcestotheCompany’ssegmentsaswellastheassessmentoftheirprofitabilitymostlycoversthetypesofgoodsandserviceswhichareproducedorprovided.
TheGroupcomprisesthefollowingreportablesegmentsasdefinedinIFRS8:•SpaceSystems•Aerospace+IndustrialProducts
The“SpaceSystems”segmentchieflydevelopsandexe-cutesspaceprojects.The“Aerospace+IndustrialProducts”segmentisprimarilyresponsibleforfabricatingaviationandspaceproductsaswellasotherindustrialactivities.
ThesegmentsaredescribedindetailintheGroupmanage-mentreportSegmentincome,expensesandearningsalsoentailbusinessrelationsbetweenthebusinessunits.Thesetransferswerenettedinfull.Themeasurementprinciplesappliedinsegmentreportingareidenticaltothoseappliedinthepreparationoftheconsolidatedfinancialstatements.The
segmentreporting
Reconciliation
2014
0
0
13,847
0
6,893
30
6,862
53,513
51,997
105,510
67,925
37,585
105,510
9
holdingcompany
2013
0
0
5,185
0
85
34
51
52,505
59,385
111,890
64,215
47,674
111,890
7
2014
–11,131
–11,131
–18,403
–7,609
0
–51
51
–36,839
–82,204
–119,043
–26,125
–92,918
–119,043
0
Consolidation
2013
–7,122
–7,035
–12,666
–5,970
0
–51
51
–36,057
–97,829
–133,886
–25,593
–108,293
–133,886
0
2014
728,147
0
772,954
497,265
53,416
13,016
40,400
133,774
506,839
640,613
147,199
493,414
640,613
25,008
Total
2013
680,121
0
700,063
422,629
52,803
16,450
36,353
143,417
441,990
585,407
132,705
452,702
585,407
22,587
88
OHB AG | 2014
Consolidated financial statements
productionandaquisitioncosts
productionandaquisitioncosts
FortheyearfromJanuary1untilDecember31,2014
I. Goodwill
II. Intangibleassets
Concessionsandindustrialpropertyrights
Softwareacquired
Softwareproduced
III.Property,plantandequipment
Operatingandbusinessequipment
Propertyandplant
IV.Financialassets
Investmentsinaffiliatedcompanies
Investmentsinassociatedcompanies
Otherinvestments
Total
BalanceonJanuary1,
2014
EUR000s
8,957
2,055
14,259
75,854
105,382
58,557
63
683
41,087
306,897
Revaluations
EUR000s
0
0
0
0
0
0
0
0
1,760
1,760
Disposals
deconsolidation
EUR000s
0
0
–3,181
–2,931
–14,492
–12,017
0
0
–105
–32,726
Additions
EUR000s
0
2
1,212
13,944
9,782
68
26
0
14
25,048
Disposals
EUR000s
0
0
338
12
2,724
5
0
683
747
4,509
Reclassi-fications
EUR000s
0
0
15
0
–15
0
0
0
0
0
BalanceonDecember31,
2014
EUR000s
8,957
2,057
11,967
86,855
97,933
46,603
89
0
42,009
296,470
Consolidatedstatementofchangesinassets
FortheyearfromJanuary1untilDecember31,2013
I. Goodwill
II. Intangibleassets
Concessionsandindustrialpropertyrights
Softwareacquired
Softwareproduced
III.Property,plantandequipment
Operatingandbusinessequipment
Propertyandplant
IV.Financialassets
Investmentsinaffiliatedcompanies
Investmentsinassociatedcompanies
Otherinvestments
Total
BalanceonJanuary1,
2013
EUR000s
8,957
2,044
13,133
64,396
97,457
58,478
63
1,259
36,462
282,249
Revaluations
EUR000s
0
0
0
0
0
0
0
0
3,625
3,625
Additionsfromfirst-time
consolidation
EUR000s
0
0
0
0
0
0
0
0
0
0
Disposals
EUR000s
0
5
1,242
11,458
9,798
83
0
0
1,046
23,632
Reclassi-fications
EUR000s
0
0
110
0
1,873
4
0
576
46
2,609
Umbuchungen
EUR000s
0
6
–6
0
0
0
0
0
0
0
BalanceonDecember31,
2013
EUR000s
8,957
2,055
14,259
75,854
105,382
58,557
63
683
41,087
306,897
89
OHB AG | 2014
Consolidated financial statements
Bookvaluesaccumulateddepreciation
Bookvaluesaccumulateddepreciation
BalanceonJanuary1,
2014
EUR000s
1,270
1,968
10,802
37,224
70,259
23,398
0
0
18,559
163,480
BalanceonDecember31,
2014
EUR000s
7,687
68
2,017
46,193
31,102
23,168
89
0
23,450
133,774
Disposals
deconsolidation
EUR000s
0
0
–1,494
–993
–7,180
–1,306
0
0
0
–10,973
Additions
EUR000s
0
21
980
4,443
6,225
1,348
0
0
0
13,017
Disposals
EUR000s
0
0
338
12
2,473
5
0
0
0
2,828
BalanceonDecember31,
2014
EUR000s
1,270
1,989
9,950
40,662
66,831
23,435
0
0
18,559
162,696
BalanceonDecember31,
2013
EUR000s
7,687
87
3,457
38,630
35,123
35,159
63
683
22,528
143,417
Consolidatedstatementofchangesinassets
BalanceonJanuary1,
2013
EUR000s
1,270
1,947
9,742
31,560
63,925
21,234
0
0
18,559
148,237
BalanceonDecember31,
2013
EUR000s
7,687
87
3,457
38,630
35,123
35,159
63
683
22,528
143,417
Additionsfromfirst-time
consolidation
EUR000s
0
0
0
0
0
0
0
0
0
0
Additions
EUR000s
0
21
1,169
5,664
7,428
2,168
0
0
0
16,450
Disposals
EUR000s
0
0
109
0
1,094
4
0
0
0
1,207
BalanceonDecember31,
2013
EUR000s
1,270
1,968
10,802
37,224
70,259
23,398
0
0
18,559
163,480
BalanceonDecember31,
2012
EUR000s
7,687
97
3,391
32,836
33,532
37,244
63
1,259
17,903
134,012
90
OHB AG | 2014
Consolidated financial statements
holdingcompanyisshownseparatelyasmostoftheequityinterestsareheldonthislevel.OHBAGexercisesthefunctionofanactiveholdingcompany.
Sales(non-consolidated)breakdownbyproductgroupasfollows:
inEUR000s 2014 2013
Spacetechnology 732,066 619,729
Aviation 56,129 82,374
Antennas 9,329 21,467
Telematics 7,217 5,033
Processcontroltechnology 5,155 4,186
Total 809,896 732,789
OHBAG’snon-consolidatedsalesbreakdownbyregion(loca-tionofcustomer)asfollows:
inEUR000s 2014 2013
Germany 267,990 202,132
RestofEurope 510,501 520,673
Restoftheworld 31,405 9,984
Total 809,896 732,789
WithsalesofEUR109.037million,EUR143.399millionandEUR96.675million,respectively,threecustomersinthe“SpaceSys-tems”segmenteachaccountformorethan10%oftheOHBGroup’stotalsales.Non-currentassetswithacarryingamountofEUR116million(previousyear:EUR130million)arelocatedinGermanyandthosewithacarryingamountofEUR37million(previousyear:EUR28million)arelocatedinothercountries.
NotesonthecashflowstatementLiquiditycomprisescashandcashequivalents.ThenetoutflowfromthelossofcontrolreferstothedeconsolidationofthecashandcashequivalentsheldbyATPinthe“Aerospace+IndustrialProducts”businessunit.Therewerenoothereffectsoncash.Deconsolidationresultedinanon-cashinflowofEUR3.804million.
OtherfinancialobligationsFinancialobligationsunderleasesarevaluedatEUR91.856million(previousyear:EUR51.678million);ofthis,anamountofEUR12.589million(previousyear:EUR11.409million)isdueforsettlementinlessthanoneyear,anamountofEUR37.662million(previousyear:EUR27.718million)inonetofiveyearsandanamountofEUR41.605million(previousyear:EUR12.551million)inmorethanfiveyears.Operatingleasesentailfinan-cialobligationsofEUR1.471million(previousyear:EUR1.696million)dueforsettlementinonetofiveyears;anamountofEUR0.659million(previousyear:EUR0.714million)isduefor
settlementinlessthanoneyear,anamountofEUR0.801mil-lion(previousyear:EUR0.936million)isdueforsettlementinonetofiveyearsandanamountofEUR0.011million(previousyear:EUR0.046million)inmorethanfiveyears.Themainoper-atingleasesareforbuildingsandhaveatermofonetofiveyears.Therearenopurchaseoptions.FollowingthetransferofbusinessactivitiesheldbyaGroupcompanytoasubsidiary,thereareotherfinancialobligationsofEUR1.305million(previ-ousyear:EUR3.577million)dueforsettlementinlessthanoneyearintheformoflettersofcomfort.Therearenootherobliga-tionsnecessitatinganoutflowofresources.Asofthereportingdate,therewereobligationsunderguaranteesofEUR36.332million(previousyear:EUR63.301million).Theparticipatingcompanieshaveassumedjointandseveralliabilityforobliga-tionsunderthecreditfacility.OHBAGhasissuedaletterofcomfortinfavorofacustomerforthecompletionoftwopro-jects/contractsbyGroupmembersand,inonecase,aguaran-teeinfavorofthecustomer.
EmployeesTheaverageheadcountstoodat2,174intheyearunderreview(previousyear:2,437).AsofDecember31,2014,therewere1,349employeesinthe“SpaceSystems”businessunit(previ-ousyear:1,219),730employeesinthe“Aerospace+IndustrialProducts”businessunit(previousyear:1,185)and7employeesintheholdingcompany(previousyear:8).
X.maNaGEmENTBOaRdaNdsUpERvIsORyBOaRd
TheCompany’sManagementBoardcomprises:• Mr.MarcoFuchs,Lilienthal,CEO• Dr.FritzMerkle,Bremen(sinceJune1,2014)• Mr.UlrichSchulz,Bremen• Prof.ManfredFuchs,Bremen
(passedawayonApril26,2014).
TheCompany’sSupervisoryBoardcomprises:• Mrs.ChristaFuchs,Bremen,managingshareholderof
VOLPAIABeteiligungs-GmbH,Bremen,chairwoman• Prof.HeinzStoewer,St.Augustin,Professorem.SpaceSys-
temsEngineering,TechnicalUniversityofDelft,Netherlands,managingdirectorofSpaceAssociatesGmbH,St.Augustin
• Mr.RobertWethmar,Hamburg,partneratlawfirmTaylorWessing
OfficesheldbymembersoftheCompany’sManagementBoardandSupervisoryBoardinothersupervisoryboardsandman-agementbodiesin2014:• Mr.MarcoR.Fuchs,ZARMTechnikAG,Bremen,chairmanof
thesupervisoryboard;MTAerospaceAG,Augsburg,chair-manofthesupervisoryboard(Groupmandate);ORBCOMM
91
OHB AG | 2014
Consolidated financial statements
Inc.RochelleParl,NJ,UnitedStates,memberoftheboardofdirectors(Groupmandate);CGSS.p.A.,Milan,Italy,JacobsUniversityBremengGmbH,memberofthesupervisoryboard
• Prof.Dott.Ing.h.c.ManfredFuchs,(passedawayonApril26,2014),OHBSystemAG,Bremen,chairmanofthesupervisoryboard(Groupmandate);MTAerospaceAG,Augsburg,memberofthesupervisoryboard(Groupmandate);CGSS.p.A.,Milan,Italy,chairmanoftheboardofdirectors(Groupmandate)
• Mrs.ChristaFuchs,ORBCOMMDeutschlandAG,Bremen,chairwomanofthesupervisoryboard(Groupmandate);CosmosSpaceSystemsAG,Bremen,chairwomanofthesupervisoryboard(Groupmandate);OHBSystemAG,Bremen,chairwomanofthesupervisoryboard,fromJune17,2014.
securitiesheldbymembersoftheCompany’smanagementBoardandsupervisoryBoard
asofdecember31,2014 shares +/–2014/13
ChristaFuchs,ChairwomanoftheSupervisoryBoard 1.400.690 –
ProfessorHeinzStoewer,Memberofthesupervisoryboard 1.000 –
MarcoR.Fuchs,ChiefExecutiveOfficer 3.184.796* –
Dr.FritzMerkle,memberoftheManagementBoard 1.000 –
UlrichSchulz,memberoftheManagementBoard 54 –
*plusthe2,863,064sharespreviouslyheldbyProf.ManfredFuchs,therightsfromwhichpassedtoMarcoR.Fuchsasofthereportingdate.
ExemptionfromthedutytodisclosethefinancialstatementsoftheGroupcompaniesAttheirmeetingofMarch18,2014,theshareholdersofOHB-SystemAGpassedaresolutiontoadopttheexemptionprovi-sionsinSection264(3)oftheGermanCommercialCodewithrespecttodisclosureoftheannualfinancialstatements.
RelatedpartiesdisclosuresRelatedpartiesasdefinedinIAS24compriseChristaFuchs,RomanaFuchsMayrhofer,Prof.Dott.Ing.h.c.ManfredFuchs,MarcoR.Fuchs,UlrichSchulz,Prof.HeinzStoewerandRobertWethmar.Thefollowingcompaniesarerelatedparties:• OHBGrundstücksgesellschaftAchterstraßeGmbH&Co.KG,
Bremen• OHBGrundstücksgesellschaft,KitzbühlerStraßeGmbH&
Co.KG,Bremen• OHBGrundstücksgesellschaft,UniversitätsalleeGmbH&Co.
KG,Bremen• OHBGrundstücksgesellschaft,Karl-Ferdinand-Braun-
StraßeGmbH&Co.KG,Bremen• VOLPAIABeteiligungs-GmbH,Bremen
• ApolloCapitalPartnersGmbH,Munich• ImmobiliareGallarateS.r.l.,Milan• KTGrundstücksverwaltungsGmbH&Co.KG,Munich• SchloßAnnabergGmbH,Latsch,Italy
Businesstransactionswithrelatedpartiesareconductedonarm’slengthterms.Intheyearunderreview,salesandotherincomeofEUR0million(previousyear:EUR0.002million)arosefromtransactionswithrelatedparties,whileexpenditureongoodsandservicespurchasedandrentalscametoaroundEUR4.673million(previousyear:EUR5.151million)atGroupcompanies.OutstandingreceivablesasofthereportingdatewerevaluedatEUR0million(previousyear:EUR0.152million).AsofDecember31,2014,therewereliabilitiesofEUR1.113mil-lion(previousyear:EUR0.007million).ReferenceshouldalsobemadetotheCompany’sexplanationsontherelatedpartiesreportincludedinthemanagementreportinaccordancewithSection312oftheGermanStockCorporationAct.
declarationofconformitywiththeCorporateGovernanceCodepursuanttoarticle161oftheJointstockCompaniesactTheManagementBoardandtheSupervisoryBoardhavepub-lishedthedeclarationrequiredpursuanttoSection161oftheGermanStockCorporationActconfirmingthat,apartfromafewsmallexceptions(seeCorporateGovernanceonpage64),theGroupalreadyconformstotheGermanCorporateGovern-anceCodeandwillcontinuetodosointhefuture.Thedeclara-tionofconformanceisavailableontheInternetat:http://www.ohb.de/investor-relations/corporate-governance/entsprechenserklaerung.html
allocationofearningsTheparent-companyfinancialstatementspreparedforOHBAGpursuanttoGermanGAAP(HGB)fortheyearendingDecember31,2014carrynetprofitfortheyearofEUR29,365,915.44.OHBAGexercisesthefunctionofanactiveholdingcompany.ItsmainassetscompriseinvestmentswhichwerecarriedatavalueofEUR44.514milliononthebalance-sheetdate.OHBAG’sequitystoodatEUR68.604milliononDecember31,2014.TheCompany’ssingle-entityfinancialstatementscarrycashandcashequivalentsofEUR3.799million.IncomeofEUR4.977millionunderprofittransferagreementsandfromtheshareofprofitofassociatesofEUR5.118millionmadeaparticularcon-tributiontonetprofitfor2014.TheManagementBoardwillbeaskingtheshareholderstopassaresolutionprovidingfortheallocationoftheCompany’sunappropriatedsurplusofEUR29,366for2014(asspecifiedinthetableentitled“Allocationofunappropriatedsurplus”).Thefiguresstatedforthetotaldivi-dendandtheamounttobecarriedforwardarebasedonthenumberofdividend-entitledsharesasofthedateoftheMan-agementBoard’sallocationproposal.
Dr.FritzMerkle
92
MarcoR.Fuchs
OHB AG | 2014
Consolidated financial statements
UlrichSchulz
PursuanttoSection71boftheGermanStockCorporationAct,theCompany’streasurystock(80,496shares)asofthereport-ingdateisnotdividend-entitled.IfthenumberofsharesheldastreasurystockonthedateonwhichtheshareholderspassaresolutionadoptingtheproposalfortheallocationoftheCom-pany’sunappropriatedsurplusisgreaterorsmallerthanonthereportingdate,theamountpayabletotheshareholderswillbeincreasedor,asthecasemaybe,decreasedbytheamountattributabletothedifferenceinthenumberofshares.Theamounttobecarriedforwardwillbeadjustedaccordingly.However,therewillbenochangeinthedistributabledividendperdividend-entitledshare.
Ifnecessary,theshareholderswillbepresentedwithacor-respondinglymodifiedproposalfortheallocationoftheCom-pany’sunappropriatedsurplus.Thedividenddistributedfor2013cametoEUR0.37perdividend-entitledshare(17,387,600shares),resultinginatotalpayoutofEUR6,433,412.00.Inaddi-tion,anamountofEUR15,970,928.46wascarriedforward.TheunappropriatedsurpluscametoEUR22,404,340.46in2013.
allocationofearnings
inEUR000s 2014
DividendofEUR0.37proposedforeachdividendentitledshare(17,387,600shares)
6,433,412,00
Amounttobecarriedforward 22,932,503,44
Unappropriatedsurplus 29,365,915,44
CompensationAsamatterofprinciple,thecompensationpaidtothemembersoftheManagementBoardcomprisesfixedandvariablecompo-nents.Thereiscurrentlynoprovisionforanyshare-basedcom-pensationcomponentsorcompensationcomponentswithalong-termincentive.IntheeventofthedeathofaManagementBoardmember,hissurvivingdependentsareentitledtoreceivecontinuedpaymentofthatmember’sfixedcompensationforafurtherperiodofsixmonths.
TheprinciplesofthecompensationsystemaswellastheindividualizedcompensationpaidtotheManagementBoardaredescribedindetailinthecompensationreport,whichformspartofthemanagementreport(page62).Thetotalcompensa-tionpaidtothemembersoftheManagementBoardfor2014cametoEUR1.840million(previousyear:EUR1.720million).Ofthis,variablecomponentsaccountforEUR1.041million,fixedcomponentsforEUR0.799million,contributionstoendowmentpoliciesforEUR3.3kandpaymentsunderapensioncommit-mentforEUR12k.
ThetotalcompensationpaidtomembersoftheSupervisoryBoardfor2014cametoEUR70k(previousyear:EUR70k).Ofthis,thechairwomanoftheSupervisoryBoardreceivedEUR30kandtheothertwomembersoftheSupervisoryBoarda
totalofEUR40k.Variablecompensationcomponentsweredis-pensedwith.Mrs.ChristaFuchsreceivedarms-lengthcom-pensationofEUR0.064million(previousyear:EUR0.128mil-lion)foradvisoryservicesrenderedforOHBGroupcompaniesintheyearunderreview.
auditfeesIntheperiodunderreview,theOHBGrouprecordedthefollow-ingfeespaidtoBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,theauditorsofitsfinancialstatements:• Auditingofannualandconsolidatedfinancialstatements:EUR0.226million(previousyear:EUR0.235million)• Taxconsultingservices:EUR0.056million(previousyear:
EUR0.136million)• Otherservices:EUR0.019million(previousyear:EUR0.011
million)
EventsafterthereportingdateTherewerenosignificantreportableeventbetweenthereport-ingdateandthedateonwhichtheannualreportfor2014wasprepared.
TheconsolidatedfinancialstatementswereapprovedbytheManagementBoardforpublicationfollowingtheSupervisoryBoard’smeetingofMarch18,2015.
TheManagementBoardBremen,March16,2015
93
OHB AG | 2014
Consolidated financial statements
XI.aUdITOR’sCERTIfICaTE
Wehaveauditedtheconsolidatedfinancialstatementspre-paredbytheOHBAG,Bremen,comprisingthestatementoffinancialposition,thestatementofcomprehensiveincome,thestatementofchangesinequity,thestatementofcashflowsandthenotestotheconsolidatedfinancialstatements,togetherwiththegroupmanagementreportforthefinancialyearfromJanuary1,2014toDecember31,2014.ThepreparationoftheconsolidatedfinancialstatementsandthegroupmanagementreportinaccordancewithIFRSsasadoptedbytheEU,andtheadditionalrequirementsofGermancommerciallawpursuantto§315a(1)oftheHGBaretheresponsibilityofthelegalrepre-sentativesoftheparentcompany.Ourresponsibilityistoexpressanopinionontheconsolidatedfinancialstatementsandonthegroupmanagementreportbasedonouraudit.
Weconductedourauditoftheconsolidatedfinancialstate-mentsinaccordancewith§317oftheHGBandtheGermangenerallyacceptedstandardsfortheauditoffinancialstate-mentspromulgatedbytheInstitutderWirtschaftsprüfer[InstituteofPublicAuditorsinGermany](IDW).Thosestandardsrequirethatweplanandperformtheauditsuchthatmisstate-mentsmateriallyaffectingthepresentationofthenetassets,financialpositionandresultsofoperationsintheconsolidatedfinancialstatementsinaccordancewiththeapplicablefinancialreportingframeworkandinthegroupmanagementreportaredetectedwithreasonableassurance.Knowledgeofthebusi-nessactivitiesandtheeconomicandlegalenvironmentofthegroupandexpectationsastopossiblemisstatementsaretakenintoaccountinthedeterminationofauditprocedures.Theeffectivenessoftheaccounting-relatedinternalcontrolsystemandtheevidencesupportingthedisclosuresintheconsolidatedfinancialstatementsandthegroupmanagementreportareexaminedprimarilyonatestbasiswithintheframeworkoftheaudit.Theauditincludesassessingthefinancialinformationofthosecomponentsconsolidated,thescopeoftheconsolidation,
theaccountingandconsolidationprinciplesusedandthesignif-icantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatementsandthegroupmanagementreport.Webelievethatourauditprovidesareasonablebasisforouropinion.
Ouraudithasnotledtoanyreservations.
Inouropinion,basedonthefindingsofouraudit,theconsoli-datedfinancialstatementscomplywithIFRSsasadoptedbytheEU,theadditionalrequirementsofGermancommerciallawpursuantto§315a(1)oftheHGBandgiveatrueandfairviewofthenetassets,financialpositionandresultsofoperationsofthegroupinaccordancewiththeserequirements.Thegroupmanagementreportisconsistentwiththeconsolidatedfinan-cialstatementsandasawholeprovidesasuitableviewofthegroup’spositionandsuitablypresentstheopportunitiesandrisksoffuturedevelopment.
Hamburg,March16,2015BDOAGWirtschaftsprüfungsgesellschaft
declarationofthemanagementBoardTothebestofourknowledge,andinaccordancewiththeapplicablereportingprinciples,theconsolidatedfinancialstatementsgiveatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossofthegroup,andtheGroupmanagementreportincludesafairreviewofthedevelopmentandperformanceofthebusinessandthepositionofthegroup,
togetherwithadescriptionoftheprincipalopportunitiesandrisksassociatedwiththeexpecteddevelopmentoftheGroup.
TheManagementBoardBremen,March16,2015
94
OHB AG | 2014
Contact information
OhBaGKarl-Ferdinand-Braun-Straße828359Bremen,Germany
MarcoR.FuchsChiefExecutiveOfficer
MartinaLilienthalInvestorRelationsPhone:+49(0)4212020-720Fax:+49(0)4212020-613ir ohb.de
MartinStadeCorporateCommunicationsPhone:+49(0)4212020-620Fax:+49(0)4212020-613pr ohb.de
Imprint
Copyandcontent:OHBAG,Bremen,GermanyPvFInvestorRelations,Eschborn,GermanymoskitoKommunikationundDesign,Bremen,Germany
Conceptanddesign:moskitoKommunikationundDesign,Bremen,Germany
photos:Arianespace,Evry,FranceAstriumGmbH,Bremen,GermanyBAAINBw,Koblenz,GermanyCarl-ChristianMeyer,Bremen,GermanyCarstenHeidmannFotografie,Bremen,GermanyCGSS.p.A.,Mailand,ItalyCNES,Paris,FranceCouncilofEuropeanAerospaceSocietiesESA,CNES,ARIANESPACE,OptiqueVideoduCSG(JMGuillon)ESA,Paris,France(AOESMedialab,J.Huart,AnnekeLeFloc‘h,OptiqueVid.oduCSG)ESO,Garching/Munich(IgorChekalin,M.KornmesserundNickRisinger)IngoWagneriStockphotoLuxSpaceSarl,Betzdorf,LuxembourgMTAerospace,Augsburg,GermanyMTMechatronicGmbH,Mainz,GermanyNASA,Washington,USANASA/JPL(Caltech/Cornell/ArizonaStateUniv.),USAOHBAG,Bremen,GermanyOHBSweden,Kista,SwedenOHBSystemAG,Bremen,GermanySNC,Sparks,NV,USA
Editing:ZertaniDieDruckGmbH,Bremen,Germany
printedby:BerlinDruck,AchimbeiBremen,Germany
Further disclosures
www.ohb.de
96
OHB AG | 2014
Consolidated financial statements
�
The OHB Group at a glance �
Revenues
Total revenues
EBITDA
EBIT
EBT
Net income for the period
Earnings per share (EUR)
Total assets
Equity
Cash flow from operating activities
Equity investments
thereof capital spending
Employees on December 31
2013
680,121
700,063
52,803
36,353
29,728
19,436
1.12
585,407
132,705
–34,111
23,632
1,046
2,412
2012
615,982
632,729
46,110
30,997
23,979
14,818
0.85
538,757
117,332
17,559
21,571
760
2,493
2011
555,689
555,292
43,101
27,276
19,517
13,523
0.78
528,239
113,577
21,137
15,533
156
2,352
2010
425,448
453,323
33,688
22,730
15,384
9,642
0.55
466,396
105,170
42,123
19,126
6,543
1,677
Closing price
Year high
Year low
Market capitalization at year-end
Number of shares
2013
17.55
18.63
14.76
307 million
17,468,096
2014
19.70
25.06
17.45
344 million
17,468,096
2012
15.15
16.50
11.16
265 million
17,468,096
2011
11.40
17.45
8.25
199 million
17,468,096
2010
16.60
18.34
11.50
290 million
17,468,096
The Stock in EUR
The Group in EUR 000s
OHB AG in Figures
Glossary
Calendar of events in 2015
Annual press conference and release of annual report for 2014, Bremen March 19
Analyst conference, Frankfurt/Main March 19
3 month report/analyst conference call May 13
Annual general meeting, Bremen May 21
6 month report/analyst conference call August 13
9 month report/analyst conference call November 11
Analyst presentation at Deutsches Eigenkapitalforum, Frankfurt/Main November 23–25
2014
728,147
772,954
53,416
40,400
33,874
25,713
1.48
640,613
147,199
–35,020
25,048
40
2,086
OH
B A
G •
Ann
ual R
epor
t 201
4OHB AG
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49 (0)421 2020-8
Fax: +49 (0)421 2020-613
ir@ohb.de
www.ohb.de
Annual Report 2014
The OHB Group at a glance
OHB AG is a European space flight and technology group and one of the most important independent forces in Euro-pean aviation/aerospace. With more than 30 years of experience in developing and executing innovative space technology systems and structures and its range of specific aviation/aerospace and telematics products, the OHB Group is superbly positioned to face international competition.
“Form follows function” - this is the principle under which OHB AG has been successfully positioning itself in Europe over the past few years. These strategic decisions on loca-tions and the deliberate separation of functions across Europe allow the Group to participate in numerous Euro-pean programs and missions. The two “Space Systems” and “Aerospace + Industrial Products” business units reflect the convergence of these activities and the focus on specific core skills.
The “Space Systems” business unit focuses on developing and executing space projects. In particular, it is responsible for developing and fabricating low-orbiting and geostation-ary small satellites for navigation, research, communica-
tions and earth observation including scientific payloads. Its manned space flight activities chiefly entail the assembly and fitting of the International Space Station ISS, Columbus and ATV. The exploration segment works on studies and models for exploring our solar system, primarily the moon and Mars. In addition, efficient reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance.
The “Aerospace + Industrial Products” business unit is primarily responsible for fabricating aviation and space products as well as other industrial activities. In this area, OHB has established itself as a significant supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German supplier of components for the Ariane-5 program. In addition, it is an experienced vendor of mechatronic systems for antennas and telescopes and is involved in major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities.
OHB System AG, Bremen & Munich, Germany
Space Systems Aerospace + Industrial Products
MT Aerospace AG,Augsburg, Germany
megatel GmbH, Bremen, Germany
OHB Sweden AB, Stockholm, Sweden
OHB Teledata GmbH, Bremen, Germany
Antwerp Space N.V., Antwerp, Belgium
MT Aerospace Guyane S.A.S., Kourou, French Guiana
LuxSpace Sàrl, Betzdorf, Luxembourg
MT Mechatronics GmbH, Mainz, Germany
CGS S.p.A., Milan, Italy
74.9 %
MT M
echatronics Gm
bH
OHB Group in Europe
OHB System
AG München
CGS S.p.A
.
OHB S
wed
en A
B
OH
B S
yste
m A
G B
rem
en
MT
Aero
spac
e Gu
yane
S.A.
S., K
ouro
u
MT Mecatronica Limita
da,
Santiago de Chile
LuxSpace Sàrl
Antwerp Space N.V.
MT
Aer
ospa
ce A
G
Glossary
AQAP Allied Quality Assurance Publications; series of standards developed by NATA from the military standard for quality assurance systems
ARTES-7 Long-term ESA plan for developing a European communications satellite network using the latest laser communications
ASI Agenzia Spaziale Italiana; Italian space agency
ATV Automated Transfer Vehicle; unmanned space transporter for supply flights to the ISS
BAAINBw Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (formerly BWB German Federal Office of Defense Technology and Procurement)
BDLI German Federal Aviation and Space Industry Association
BIOMASS Earth observation programme of the European Space Agency
Blue Dot Name of the 6-month mission launched in May 2014 by ESA astronaut Alexander Gerst being on board the International Space Station ISS
BMVg German Federal Ministry of Defense
BMWi German Federal Ministry of Economics and Technology
CFRP Carbon fiber-reinforced plastic
COLUMBUS Name of the European module of the International Space Station
CPS Chemical Propulsion System
DAX German bluechip share index, tracking the performance of the 30 largest shares listed on the Frankfurt stock exchange
DEKRA Testing body for determining the roadworthiness of vehicles, certification services, safety checks and examination of technical equipment
Design-to-cost Designing and Engineering in terms of costs considering the given circumstances
DLR Deutsches Zentrum für Luft- und Raumfahrt; German Space Agency
Dream Chaser® The Dream Chaser Space System mission is to provide NASA with a transportation service for crew and cargo to the International Space Station
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortization
EBT Earnings before taxes
EDRS-C Dedicated satellite for the European Data Relay Satellite System for implementing a data network in space using optical satellite communications
Electra Fully electrically driven satellite based on the SmallGEO platform
EnMAP Environmental Mapping and Analysis Programme; satellite for hyperspectral terrestrial observation
EOEP ESA Earth Observation Envelope Programme
EPS Earnings per share
ESA European Space Agency
EU European Union
EUMETSAT European Organisation for the Exploration of Meteorological Satellites;
European Southern Observatory Intergovernmental research organisation for astronomy that has built and operated some of the largest and most technologically-advanced telescopes in the world
ExoMars Scientific mission of the European Space Agency and ROSCOSMOS to explore the Mars
FOC Full operational capability; final satellite configuration for the operation of a system
Galileo The Full Operational Capability phase of the Galileo programme is managed and fully funded by the European Union. The Commission and ESA have signed a delegation agreement by which ESA acts as design and procurement agent on behalf of the Commission. The views expressed in this Press Release can in no way be taken to reflect the official opinion of the European Union and/or ESA.“Galileo“ is a trademark subject to OHIM application number 002742237 by EU and ESA.
Heinrich Hertz Satellite mission based on the SmallGEO platform to explore new communications technologies in space
Hispasat AG1 Hispasat Advanced Generation 1
HGB German Commercial Code
IAC International Astronautical Congress; yearly space symposium that takes place in different event locations
IAS International Accounting Standards
IFRS International Financial Reporting Standards
ISS International Space Station
MTG Meteosat Third Generation; programme to develop, build and launch third-generation weather satellites
NADCAP National Aerospace and Defense Contractors Accreditation Programme; certification of special aviation,space and defense processes
NASA National Aeronautics and Space Administration; US space agency
OPSIS OPtical System for Imaging and Surveillance, satellite mission operated by the Italian space agency ASI
Philae Lander in the Rosetta comet mission with 10 instruments on board to examine material collected from the comet 67P/Tschurjumow-Gerasimenko
R+D Research and development
REACH Registration, Evaluation, Authorization of Chemicals; EU chemicals regulation
RoHS Restriction of the use of certain hazardous sub-stances; EU directive to limit the use of certain dangerous materials in electrical and electronic devices
ROSCOSMOS Space Agency of Russia
SAR-Lupe Synthetic Aperture Radar-Lupe; system of small satellites with a process for enhancing the quality of radar images
SmallGEOs Small geostationary satellites for telecom-munications and multimedia applications
Rosetta Mission organized by the European Space Agency ESA to explore the origins of our solar system; the mission comprises an orbiter and the Philae lander.
TecDAX German stock index, that tracks the performance of the 30 largest German companies from the technology sector in terms of order book turnover and market capitalization
Telematics A system linking telecommunications and IT
TET Technology mule; core element of the national “On-Orbit Verification of New Techniques and Technologies” project
TRL Technology Readiness Level; is a measure used to assess the maturity of evolving technologies
USD US-Dollar
The OHB Group at a glance
OHB AG is a European space flight and technology group and one of the most important independent forces in Euro-pean aviation/aerospace. With more than 30 years of experience in developing and executing innovative space technology systems and structures and its range of specific aviation/aerospace and telematics products, the OHB Group is superbly positioned to face international competition.
“Form follows function” - this is the principle under which OHB AG has been successfully positioning itself in Europe over the past few years. These strategic decisions on loca-tions and the deliberate separation of functions across Europe allow the Group to participate in numerous Euro-pean programs and missions. The two “Space Systems” and “Aerospace + Industrial Products” business units reflect the convergence of these activities and the focus on specific core skills.
The “Space Systems” business unit focuses on developing and executing space projects. In particular, it is responsible for developing and fabricating low-orbiting and geostation-ary small satellites for navigation, research, communica-
tions and earth observation including scientific payloads. Its manned space flight activities chiefly entail the assembly and fitting of the International Space Station ISS, Columbus and ATV. The exploration segment works on studies and models for exploring our solar system, primarily the moon and Mars. In addition, efficient reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance.
The “Aerospace + Industrial Products” business unit is primarily responsible for fabricating aviation and space products as well as other industrial activities. In this area, OHB has established itself as a significant supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German supplier of components for the Ariane-5 program. In addition, it is an experienced vendor of mechatronic systems for antennas and telescopes and is involved in major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities.
OHB System AG, Bremen & Munich, Germany
Space Systems Aerospace + Industrial Products
MT Aerospace AG,Augsburg, Germany
megatel GmbH, Bremen, Germany
OHB Sweden AB, Stockholm, Sweden
OHB Teledata GmbH, Bremen, Germany
Antwerp Space N.V., Antwerp, Belgium
MT Aerospace Guyane S.A.S., Kourou, French Guiana
LuxSpace Sàrl, Betzdorf, Luxembourg
MT Mechatronics GmbH, Mainz, Germany
CGS S.p.A., Milan, Italy
74.9 %
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OHB Group in Europe
OHB System
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LuxSpace Sàrl
Antwerp Space N.V.
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Glossary
AQAP Allied Quality Assurance Publications; series of standards developed by NATA from the military standard for quality assurance systems
ARTES-7 Long-term ESA plan for developing a European communications satellite network using the latest laser communications
ASI Agenzia Spaziale Italiana; Italian space agency
ATV Automated Transfer Vehicle; unmanned space transporter for supply flights to the ISS
BAAINBw Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (formerly BWB German Federal Office of Defense Technology and Procurement)
BDLI German Federal Aviation and Space Industry Association
BIOMASS Earth observation programme of the European Space Agency
Blue Dot Name of the 6-month mission launched in May 2014 by ESA astronaut Alexander Gerst being on board the International Space Station ISS
BMVg German Federal Ministry of Defense
BMWi German Federal Ministry of Economics and Technology
CFRP Carbon fiber-reinforced plastic
COLUMBUS Name of the European module of the International Space Station
CPS Chemical Propulsion System
DAX German bluechip share index, tracking the performance of the 30 largest shares listed on the Frankfurt stock exchange
DEKRA Testing body for determining the roadworthiness of vehicles, certification services, safety checks and examination of technical equipment
Design-to-cost Designing and Engineering in terms of costs considering the given circumstances
DLR Deutsches Zentrum für Luft- und Raumfahrt; German Space Agency
Dream Chaser® The Dream Chaser Space System mission is to provide NASA with a transportation service for crew and cargo to the International Space Station
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortization
EBT Earnings before taxes
EDRS-C Dedicated satellite for the European Data Relay Satellite System for implementing a data network in space using optical satellite communications
Electra Fully electrically driven satellite based on the SmallGEO platform
EnMAP Environmental Mapping and Analysis Programme; satellite for hyperspectral terrestrial observation
EOEP ESA Earth Observation Envelope Programme
EPS Earnings per share
ESA European Space Agency
EU European Union
EUMETSAT European Organisation for the Exploration of Meteorological Satellites;
European Southern Observatory Intergovernmental research organisation for astronomy that has built and operated some of the largest and most technologically-advanced telescopes in the world
ExoMars Scientific mission of the European Space Agency and ROSCOSMOS to explore the Mars
FOC Full operational capability; final satellite configuration for the operation of a system
Galileo The Full Operational Capability phase of the Galileo programme is managed and fully funded by the European Union. The Commission and ESA have signed a delegation agreement by which ESA acts as design and procurement agent on behalf of the Commission. The views expressed in this Press Release can in no way be taken to reflect the official opinion of the European Union and/or ESA.“Galileo“ is a trademark subject to OHIM application number 002742237 by EU and ESA.
Heinrich Hertz Satellite mission based on the SmallGEO platform to explore new communications technologies in space
Hispasat AG1 Hispasat Advanced Generation 1
HGB German Commercial Code
IAC International Astronautical Congress; yearly space symposium that takes place in different event locations
IAS International Accounting Standards
IFRS International Financial Reporting Standards
ISS International Space Station
MTG Meteosat Third Generation; programme to develop, build and launch third-generation weather satellites
NADCAP National Aerospace and Defense Contractors Accreditation Programme; certification of special aviation,space and defense processes
NASA National Aeronautics and Space Administration; US space agency
OPSIS OPtical System for Imaging and Surveillance, satellite mission operated by the Italian space agency ASI
Philae Lander in the Rosetta comet mission with 10 instruments on board to examine material collected from the comet 67P/Tschurjumow-Gerasimenko
R+D Research and development
REACH Registration, Evaluation, Authorization of Chemicals; EU chemicals regulation
RoHS Restriction of the use of certain hazardous sub-stances; EU directive to limit the use of certain dangerous materials in electrical and electronic devices
ROSCOSMOS Space Agency of Russia
SAR-Lupe Synthetic Aperture Radar-Lupe; system of small satellites with a process for enhancing the quality of radar images
SmallGEOs Small geostationary satellites for telecom-munications and multimedia applications
Rosetta Mission organized by the European Space Agency ESA to explore the origins of our solar system; the mission comprises an orbiter and the Philae lander.
TecDAX German stock index, that tracks the performance of the 30 largest German companies from the technology sector in terms of order book turnover and market capitalization
Telematics A system linking telecommunications and IT
TET Technology mule; core element of the national “On-Orbit Verification of New Techniques and Technologies” project
TRL Technology Readiness Level; is a measure used to assess the maturity of evolving technologies
USD US-Dollar
�
The OHB Group at a glance �
Revenues
Total revenues
EBITDA
EBIT
EBT
Net income for the period
Earnings per share (EUR)
Total assets
Equity
Cash flow from operating activities
Equity investments
thereof capital spending
Employees on December 31
2013
680,121
700,063
52,803
36,353
29,728
19,436
1.12
585,407
132,705
–34,111
23,632
1,046
2,412
2012
615,982
632,729
46,110
30,997
23,979
14,818
0.85
538,757
117,332
17,559
21,571
760
2,493
2011
555,689
555,292
43,101
27,276
19,517
13,523
0.78
528,239
113,577
21,137
15,533
156
2,352
2010
425,448
453,323
33,688
22,730
15,384
9,642
0.55
466,396
105,170
42,123
19,126
6,543
1,677
Closing price
Year high
Year low
Market capitalization at year-end
Number of shares
2013
17.55
18.63
14.76
307 million
17,468,096
2014
19.70
25.06
17.45
344 million
17,468,096
2012
15.15
16.50
11.16
265 million
17,468,096
2011
11.40
17.45
8.25
199 million
17,468,096
2010
16.60
18.34
11.50
290 million
17,468,096
The Stock in EUR
The Group in EUR 000s
OHB AG in Figures
Glossary
Calendar of events in 2015
Annual press conference and release of annual report for 2014, Bremen March 19
Analyst conference, Frankfurt/Main March 19
3 month report/analyst conference call May 13
Annual general meeting, Bremen May 21
6 month report/analyst conference call August 13
9 month report/analyst conference call November 11
Analyst presentation at Deutsches Eigenkapitalforum, Frankfurt/Main November 23–25
2014
728,147
772,954
53,416
40,400
33,874
25,713
1.48
640,613
147,199
–35,020
25,048
40
2,086
OH
B A
G •
Ann
ual R
epor
t 201
4OHB AG
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49 (0)421 2020-8
Fax: +49 (0)421 2020-613
ir@ohb.de
www.ohb.de
Annual Report 2014