Annual Report 2016 - Bankhaus LampeUnder the Oetker Group umbrella, Dr. August Oetker KG has united...

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Innovative DiversityAnnual Report 2016

2014 2015 2016 %2

in % in % in %

NET SALES BY DIVISION 1 (IN EUR MILLION) 10,646 100.0 11,949 100.0 11,704 100.0 – 2.1

Food 2,621 24.6 2,990 25.0 3,071 26.2 2.7

Beer and Nonalcoholic Beverages 1,840 17.3 1,878 15.7 1,901 16.2 1.2

Sparkling Wine, Wine and Spirits 498 4.7 501 4.2 502 4.3 0.2

Shipping 5,186 48.7 6,057 50.7 5,624 48.1 – 7.2

Other Interests 500 4.7 524 4.4 606 5.2 15.8

NET SALES BY REGION 1

(IN EUR MILLION) 10,646 100.0 11,949 100.0 11,704 100.0 – 2.1

Germany 3,512 33.0 3,733 31.2 3,894 33.3 4.3

Rest of the EU 2,523 23.7 2,764 23.1 2,663 22.8 – 3.6

Rest of Europe 555 5.2 577 4.8 580 5.0 0.4

Rest of the world 4,057 38.1 4,875 40.8 4,567 39.0 – 6.3

INVESTMENTS (IN EUR MILLION)(without fi rst-time consolidations) 667 100.0 740 100.0 405 100.0 – 45.3

Food 132 19.7 153 20.7 182 45.1 19.1

Beer and Nonalcoholic Beverages 121 18.2 97 13.0 84 20.8 – 12.9

Sparkling Wine, Wine and Spirits 16 2.3 15 2.1 14 3.4 – 11.6

Shipping 348 52.2 437 59.0 77 18.9 – 82.5

Other Interests 50 7.5 38 5.2 48 11.9 25.2

EMPLOYEES (BY HEADCOUNT) 28,354 100.0 30,787 100.0 32,078 100.0 4.2

Food 12,790 45.1 14,478 47.0 15,368 47.9 6.1


Sparkling Wine, Wine and Spirits 2,007 7.1 1,972 6.4 1,922 6.0 – 2.5

Shipping 5,360 18.9 5,960 19.4 6,300 19.6 5.7

Other Interests 2,440 8.6 2,482 8.1 2,503 7.8 0.8

1 The initial application of the German Accounting Directive Implementation Act (BilRUG) on January 1, 2016, resulted in the deduction of other directly sales-related taxes from sales revenue. For improved comparability, last year’s fi gures were adjusted accordingly for the excise taxes.

2 Percentage change 2015/2016.

All percentages relate to the exact sums, not the rounded totals.

The Oetker GroupKey Indicators

The Oetker GroupDivisions

Shipping

With its logistics network, the Hamburg Süd Group connects all five continents. The group operates container ships as well as bulkers and product tankers, and is one of the ten largest container shipping lines in the world, as well as one of the leading providers in the north-south trading routes.

Sparkling Wine, Wine and Spirits

The Henkell & Co. Group is represented by its own companies in 20 countries, and exports to more than 100 nations worldwide. The group includes brands such as Henkell, Mionetto, Törley, Bohemia, and i heart WINES.

Other Interests

Budenheim, the Oetker Collection, OEDIV Oetker Daten- und Informations verarbeitung, Handelsgesellschaft Sparrenberg, and Roland Transport are bundled in the Other Interests Division.

Bank

Bankhaus Lampe is one of the leading independent private banks in Germany. Besides 12 branches in the Federal Republic, the bank has locations in London, New York, and Vienna.

Food

Dr. Oetker is the umbrella for branded product companies in the areas of ambient food, frozen food, chilled food, and bulk consumers. The Martin Braun Group and Conditorei Coppenrath & Wiese also belong to this division.

Beer and Nonalcoholic Beverages

With a total of 16 locations in Germany, the Radeberger Group is Germany’s largest privately managed brewing group. The core business of beer is complemented by well-known nonalcoholic beverage brands such as Original Selters, Bionade, and Pepsi.

Under the Oetker Group umbrella, Dr. August Oetker KG has united more than 400 companies worldwide. Organized in six divisions, in addition to consumer goods the group companies also produce phosphate- based products, and are furthermore active in shipping, luxury hotels, information technology, and banking. Several additional companies complement the group’s broad, diversifi ed portfolio.

Div

isio

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nd ta

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2014 2015 2016 %2

in % in % in %


Food 2,621 24.6 2,990 25.0 3,071 26.2 2.7



Shipping 5,186 48.7 6,057 50.7 5,624 48.1 – 7.2

Other Interests 500 4.7 524 4.4 606 5.2 15.8


(IN EUR MILLION) 10,646 100.0 11,949 100.0 11,704 100.0 – 2.1

Germany 3,512 33.0 3,733 31.2 3,894 33.3 4.3

Rest of the EU 2,523 23.7 2,764 23.1 2,663 22.8 – 3.6

Rest of Europe 555 5.2 577 4.8 580 5.0 0.4

Rest of the world 4,057 38.1 4,875 40.8 4,567 39.0 – 6.3


Food 132 19.7 153 20.7 182 45.1 19.1



Shipping 348 52.2 437 59.0 77 18.9 – 82.5

Other Interests 50 7.5 38 5.2 48 11.9 25.2


Food 12,790 45.1 14,478 47.0 15,368 47.9 6.1



Shipping 5,360 18.9 5,960 19.4 6,300 19.6 5.7

Other Interests 2,440 8.6 2,482 8.1 2,503 7.8 0.8




The Oetker GroupKey Indicators

01 The Oetker Group

Corporate Profile 30

Locations 44

History 46

Sustainability 48

02 Group Management Report

Corporate Structure 54

Overview 54

Business Divisions 55

Management Structure 62

Group Management 64

Economic Framework 66

Business Development 70

Oetker Group 70

Food 72

Beer and Nonalcoholic Beverages 76

Sparkling Wine, Wine and Spirits 79

Shipping 82

Other Interests 85

Financial Position 90

Forecast Report 93

Opportunities and Risks Report 94

03 Consolidated Financial Statements

Consolidated Balance Sheet 100

Consolidated Statement of Changes in Fixed Assets 102

Notes to the Consolidated Financial Statements 104

Report of the Auditors 111

Contents

All percentage fi gures in the 2016 annual report relate to the exact sums, not the rounded totals. Due to rounding, it is possible that individual fi gures (euro, %, etc.) may not add up exactly to the reported sum.

“ As in the past 125 years, we continue to recognize the sign of the times today. Innovation will arrive – and we will use it to our advantage, because it is an opportunity for our companies, one which we gladly embrace. Thus, in principle, not much has changed for us: We have always anticipated the future in our business activities. This will continue throughout the coming years. However: Everything will happen a bit faster than we have been used to so far.”Dr. Albert Christmann

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The global economy is facing exciting challenges, whether due to the increase in political populism, the continuing expansive monetary policy of many central banks, or the evolution of digitalization, which has taken hold in every area of human life, and which will redistribute the creation of industrial value. Experts today are already talking about the beginning of the fourth industrial revolution, which is characterized by two main traits: machine-to-machine communication (M2M) and the intelligent analysis of huge data volumes (Big Data). The goal is no longer only to provide customers with perfect products. There is an increasing expectation of relevant services related to good products, which should, ideally, be easily available anywhere and at any time. “Analog” business models are coming under pressure because new market players are entering existing markets rapidly and with exactly this type of relevant offer: Often, the new combination of familiar products on the basis of existing technologies is sufficient to introduce disruptive changes. The first Apple iPhone from ten years ago is a perfect example of this. Digital platforms on which consumers can satisfy their needs easily and quickly, or through which they can communicate with each other, or with and about the manufacturer, are increasingly changing existing markets. Thanks to these new technologies, the power of consumers continues to grow. After all, the competition is literally just a mouse click away.

At the same time, the digital availability of data and information enables continuous transparency along the value creation chain, an individualization of products (consider, for example, the 3-D printing of athletic shoes), and, finally, an acceleration and simpli-fication of production processes.

The companies of the Oetker Group must adapt to these changes – and they are doing so! With new products, new technologies, and new services, we will in the future continue to prove our capacity for innovation, thus meeting the changing require-ments and framework conditions of the markets. We intend to play an active role in every area, and regard innovation as an opportunity that we take advantage of. More and more, the use of digital technologies will also play a part for us: to optimize our processes, but especially also to address the requirements of our customers even more effectively.

The articles in this annual report, the main theme of which is “innovation”, will provide examples of just how innovatively the companies of the Oetker Group are researching and working today.

I would like to thank all the customers and business partners of our group companies for their excellent cooperation throughout this reporting year. Above all, however,

Ladies and Gentlemen,

I would like to thank our employees for their commitment, for their daily efforts, and for their successful work. They have made our company into what it is today – and can be rightfully proud of that.

My special thanks goes out to the employees of Hamburg Süd, who, even after the decision to sell the shipping activities of the Oetker Group became public knowledge, have continued to work for their company with commitment and motivation in an emo tionally difficult situation. My thanks – also on behalf of my colleagues in group management – to the stockholders and the advisory board of Dr. August Oetker KG. In the year before last, they approved by far the largest innovation and acquisition program in the history of the company, and last year, after a conscientious evaluation, they approved the strategically important fundamental decision regarding Hamburg Süd.

Based on the foundation of a value orientation that has been actively practiced for decades, and which is focused on our companies and the people who work there, we look towards the future with confidence and the will to succeed. Actively shaping the impending change is our challenge, our opportunity, and the task which we have set ourselves. We approach this challenge with enthusiasm, and in the knowledge that the shape of our joint future lies in our very own hands.

On that note, and with best regards,

Dr. Albert Christmann

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Dr. Günther, in December 2016 you and your colleagues relocated into the new Dr. Oetker Center for Research and Development – what is so special about this new building? Dr. Oetker spent about 30 million euros on the expansion of the site.

With the new building, we have created a very special workplace for our employees. The modern and sustainable concept of the building, with its open and transparent design, is immediately persuasive, and promotes interdepartmental communication. We are looking forward to the many exciting product innovations that will be cre-ated in these leading-edge, inspiring rooms.

How many employees are working on new products there, and which departments do they come from? The new building has a total area of almost 10,000 square meters,

and offers about 150 workplaces for employees from various pro-fessional fields: From chemical lab technicians and food technolo-gists, to ecotrophologists, dairy technologists, IT specialists, and food chemists, Dr. Oetker represents a broad spectrum of professional diversity in the area of research and development.

The founder of the company, Dr. August Oetker, used to fondly refer to the laboratory where everything began in 1891 as his secret lair – what future trends will be researched in the new center? The new building is the modern version of the previous “laboratory”.

Besides innovation research in the context of product development, quality assurance is the focus of our work at Dr. Oetker, true to our motto “quality is the best recipe”. This ensures our future viability and contributes significantly to the success of the company. Apart from quality management, we are responsible for raw material analyses, sensory tests, and the food regulatory inspection of recipes and packaging. We also look into new production processes and alternative forms of nutrition.

Approx. 35products per year are developed in Dr. Oetker’s Center for Research and Development and then intro-duced onto the market.

Appetite for innovation

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Food

Future of researchand development

Dr. Claus Günther, Director of Research and Development, provides some insights into

the new innovation hub of Dr. Oetker in Bielefeld. An exchange about future research

and development efforts.

Dr. Günther, in December 2016 you and your colleagues relocated into the new Dr. Oetker Center for Research and Development – what is so special about this new building? Dr. Oetker spent about 30 million euros on the expansion of the site.

With the new building, we have created a very special workplace for our employees. The modern and sustainable concept of the building, with its open and transparent design, is immediately persuasive, and promotes interdepartmental communication. We are looking forward to the many exciting product innovations that will be cre-ated in these leading-edge, inspiring rooms.

How many employees are working on new products there, and which departments do they come from? The new building has a total area of almost 10,000 square meters,

and offers about 150 workplaces for employees from various pro-fessional fields: From chemical lab technicians and food technolo-gists, to ecotrophologists, dairy technologists, IT specialists, and food chemists, Dr. Oetker represents a broad spectrum of professional diversity in the area of research and development.

The founder of the company, Dr. August Oetker, used to fondly refer to the laboratory where everything began in 1891 as his secret lair – what future trends will be researched in the new center? The new building is the modern version of the previous “laboratory”.

Besides innovation research in the context of product development, quality assurance is the focus of our work at Dr. Oetker, true to our motto “quality is the best recipe”. This ensures our future viability and contributes significantly to the success of the company. Apart from quality management, we are responsible for raw material analyses, sensory tests, and the food regulatory inspection of recipes and packaging. We also look into new production processes and alternative forms of nutrition.

Approx. 35products per year are developed in Dr. Oetker’s Center for Research and Development and then intro-duced onto the market.

Division

Food

Future of researchand development

Dr. Claus Günther, Director of Research and Development, provides some insights into

the new innovation hub of Dr. Oetker in Bielefeld. An exchange about future research

and development efforts.

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after years of cross-breeding, it has now become possible to grow this barley without the use of gene technology – a globally unique innovation!

What makes this barley so special is its extremely low gluten content. It is many times lower than that of conventional barley. To ensure that this special barley is not crossed with other types of grain, the entire produc-tion and delivery process is being conducted with the most extreme care. For example, the special barley for Pionier is being planted with precautions usually applied only to seed. Harvesters and production facilities are cleaned prior to use.

During the brewing process, only traces of the already low amount of gluten are transferred into the beer. As a result, Pionier can be declared gluten- free. By awarding its quality seal – a crossed-out ear of grain – the German Celiac Society (DZG) has officially confirmed this.

Good news for everyone who wants to live gluten-free without sacrificing the true enjoyment of a good beer.

EXCELLENT QUALITY

With its official quality seal, the German Celiac Society (DZG) confirms

that Pionier Pilsener is gluten-free.

Pionier’s secret? The special barley. It has been successfully grown without the use of gene technology for the first time in Australia.

Brewing trendswith tradition

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The Radeberger Group has brewed the fi rst gluten-free pilsner in the world – the one and

only worldwide. In search of the special barley, the passionate brewer Andreas Ludwig

traveled all the way to the other side of the world, to Australia.

The curiosity of a pioneer

Whether because of food intolerances, or for other reasons: Many people today need to or want to live gluten-free. Offering them the chance to enjoy a pilsner that has been brewed in accordance with the Beer Purity Law is a real challenge. Enough motivation for the passionate brewer Andreas Ludwig to seek out a solution.

His ambition, his scientific curiosity, and his persistent search led him all the way to Australia. There, he discovered a new brewing barley, with which now, after a long trip and many attempts at development, a gluten-free, characterful, and great-tasting pilsner is being brewed in accordance with the German Beer Purity Law. With that much spirit of discovery in each bottle, there could only be one name for this beer: Pionier.

Since the beginning of 2016, the new, gluten-free pilsner has been part of the Radeberger Group product line, and is being sold in German retail food markets as well as several online shops. With an alcohol content of 4.5 percent, the amber-hued Pionier is characterized by its slightly bitter, crisp flavor.

In the Pionier, unlike other beers, barley is not replaced by corn or rice: It is brewed using special brewing barley. Besides pure, clear water from an in-house deep well, selected hops from the Hallertau area, and proprietary, pure-bred yeast, this special barley is the secret of Pionier. In Australia,

after years of cross-breeding, it has now become possible to grow this barley without the use of gene technology – a globally unique innovation!

What makes this barley so special is its extremely low gluten content. It is many times lower than that of conventional barley. To ensure that this special barley is not crossed with other types of grain, the entire produc-tion and delivery process is being conducted with the most extreme care. For example, the special barley for Pionier is being planted with precautions usually applied only to seed. Harvesters and production facilities are cleaned prior to use.

During the brewing process, only traces of the already low amount of gluten are transferred into the beer. As a result, Pionier can be declared gluten- free. By awarding its quality seal – a crossed-out ear of grain – the German Celiac Society (DZG) has officially confirmed this.

Good news for everyone who wants to live gluten-free without sacrificing the true enjoyment of a good beer.

EXCELLENT QUALITY

With its official quality seal, the German Celiac Society (DZG) confirms

that Pionier Pilsener is gluten-free.

Pionier’s secret? The special barley. It has been successfully grown without the use of gene technology for the first time in Australia.

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The Radeberger Group has brewed the fi rst gluten-free pilsner in the world – the one and

only worldwide. In search of the special barley, the passionate brewer Andreas Ludwig

traveled all the way to the other side of the world, to Australia.

The curiosity of a pioneer

Whether because of food intolerances, or for other reasons: Many people today need to or want to live gluten-free. Offering them the chance to enjoy a pilsner that has been brewed in accordance with the Beer Purity Law is a real challenge. Enough motivation for the passionate brewer Andreas Ludwig to seek out a solution.

His ambition, his scientific curiosity, and his persistent search led him all the way to Australia. There, he discovered a new brewing barley, with which now, after a long trip and many attempts at development, a gluten-free, characterful, and great-tasting pilsner is being brewed in accordance with the German Beer Purity Law. With that much spirit of discovery in each bottle, there could only be one name for this beer: Pionier.

Since the beginning of 2016, the new, gluten-free pilsner has been part of the Radeberger Group product line, and is being sold in German retail food markets as well as several online shops. With an alcohol content of 4.5 percent, the amber-hued Pionier is characterized by its slightly bitter, crisp flavor.

In the Pionier, unlike other beers, barley is not replaced by corn or rice: It is brewed using special brewing barley. Besides pure, clear water from an in-house deep well, selected hops from the Hallertau area, and proprietary, pure-bred yeast, this special barley is the secret of Pionier. In Australia,

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Dr. Webber Witt, you have a doctorate in enology and will be responsible for the sparkling wine manufactory in the future. What should visitors expect there? What insights are you providing to them?With the sparkling wine manu-factory, we provide our visitors with the opportunity to experi-ence, up close and in person, the craft of making sparkling wine. Consumers can expect an excit-ing glimpse behind the curtain, and at the same time sparkling pleasure for all the senses. We did not create an artificial space. We are showing authentic ex-cerpts from our daily production.

Of course, there will also be opportunities to cook, to sample, and to sit down with each other in a relaxed ambience.

Does the sparkling wine manufactory have a special highlight? Can your guests also produce their own sparkling wine?At the heart of the sparkling wine manufactory is our “creative cube”, equipped with modern communication areas, an open kitchen, and state-of-the-art media technology. The new area is open for tastings, events, and creative workshops on the topic of sparkling and other wines. And yes, it is also possible to produce your own sparkling wine. In this unique way, the zeitgeist is connected to tradition.

Here, visitors will directly experience how

sparkling wine is made, and why, in the

context of traditional bottle fermentation, the

sparkling wine bottles are positioned heads

down in so-called riddling racks – an exciting

glimpse behind the curtain.

W o r l d o f e x p e r i e n c e

T H E S PA R K L I N G W I N E M A N U FA C T O R Y

Sparkling passion

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Mr. Benz, as an executive board member of Henkell & Co. Sektkellerei KG, you and your two executive board colleagues provided the ideas for the sparkling wine manufactory, which will vividly present the craft of making sparkling wine. What motivated you to put this idea into action?Our passion for sparkling wine can be felt throughout the Wiesbaden winery, because since 1856, traditional bottle fermentation has been used here to maintain and continuously develop this outstanding craft. In keeping with our motto, “Making Life Sparkle”, we want to create a world of experience here in Wiesbaden with our sparkling wine manufactory, inspiring the public with our products and our craft. With the manufactory, we have created a transparent production site that is being used internally as well as externally.

So employees and guests have equal access to the manufactory?Yes, it is the creative pool for our employees and at the same time a world of experience for our visi-tors. Our manufactory provides creative freedom. Especially for our employees, we want to create an atmosphere that pro-motes new and different ways of thinking.

The new sparkling wine manufactory at the Henkell & Co. headquarters in Wiesbaden focuses on the premium products Adam Henkell, Fürst von Metternich,

and Menger-Krug, made using traditional bottle fermentation, and also offers outside visitors a chance to try their hand

at making sparkling wine. The origins.

Experience and pleasure for all the senses

Dr. Webber Witt, you have a doctorate in enology and will be responsible for the sparkling wine manufactory in the future. What should visitors expect there? What insights are you providing to them?With the sparkling wine manu-factory, we provide our visitors with the opportunity to experi-ence, up close and in person, the craft of making sparkling wine. Consumers can expect an excit-ing glimpse behind the curtain, and at the same time sparkling pleasure for all the senses. We did not create an artificial space. We are showing authentic ex-cerpts from our daily production.

Of course, there will also be opportunities to cook, to sample, and to sit down with each other in a relaxed ambience.

Does the sparkling wine manufactory have a special highlight? Can your guests also produce their own sparkling wine?At the heart of the sparkling wine manufactory is our “creative cube”, equipped with modern communication areas, an open kitchen, and state-of-the-art media technology. The new area is open for tastings, events, and creative workshops on the topic of sparkling and other wines. And yes, it is also possible to produce your own sparkling wine. In this unique way, the zeitgeist is connected to tradition.

Here, visitors will directly experience how

sparkling wine is made, and why, in the

context of traditional bottle fermentation, the

sparkling wine bottles are positioned heads

down in so-called riddling racks – an exciting

glimpse behind the curtain.

W o r l d o f e x p e r i e n c e

T H E S PA R K L I N G W I N E M A N U FA C T O R Y

Division


Mr. Benz, as an executive board member of Henkell & Co. Sektkellerei KG, you and your two executive board colleagues provided the ideas for the sparkling wine manufactory, which will vividly present the craft of making sparkling wine. What motivated you to put this idea into action?Our passion for sparkling wine can be felt throughout the Wiesbaden winery, because since 1856, traditional bottle fermentation has been used here to maintain and continuously develop this outstanding craft. In keeping with our motto, “Making Life Sparkle”, we want to create a world of experience here in Wiesbaden with our sparkling wine manufactory, inspiring the public with our products and our craft. With the manufactory, we have created a transparent production site that is being used internally as well as externally.

So employees and guests have equal access to the manufactory?Yes, it is the creative pool for our employees and at the same time a world of experience for our visi-tors. Our manufactory provides creative freedom. Especially for our employees, we want to create an atmosphere that pro-motes new and different ways of thinking.

The new sparkling wine manufactory at the Henkell & Co. headquarters in Wiesbaden focuses on the premium products Adam Henkell, Fürst von Metternich,

and Menger-Krug, made using traditional bottle fermentation, and also offers outside visitors a chance to try their hand

at making sparkling wine. The origins.

Experience and pleasure for all the senses

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The goal of Hamburg Süd to equip 80 percent of all new containers built between 2012 and 2015 with bamboo flooring has been significantly surpassed with 93.5 percent. The next “bamboo goal” by 2020: 95 percent of all container floors are to be made of bamboo or alternative material.

Environmental goalEven more dry container floors made from bamboo

The sustainable grassLight, strong, and resistant

2012 to 2015

80%2016 to 2020

95%

Resistant to temperature fluctuations

Especially resistant to humidity

fluctuations

Grows ten timesas fast as wood

Very lightmaterial

Ten times highertensile strength than

wood

Strength comparable to steel and concrete

Responsibilityfor faraway worlds

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Shipping

Bamboo is one of the fastest-growing plants in the world: Within two months, a young shoot can reach its final height and thickness. Within this time, some types can even reach a height of more than 12 meters and a diameter of up to ten centimeters.

Within four years, a new trunk grows from the roots of a bamboo plant. Unlike with wood, this makes reforestation unnecessary.

Bamboo flooringprotects the climate

Bamboo is the container fl ooring of the future because, in contrast to tropical wood fl ooring, the use of this sustainable

grass protects the rainforest. The Hamburg Süd Group has already been using bamboo fl ooring since 2012, and wants to

increase the share of bamboo and other alternative fl ooring in new containers to a minimum of 95 percent by 2020.

BambooThe fast-growing raw material

12 m

18 days 28 days 36 days 44 days 56 days

The goal of Hamburg Süd to equip 80 percent of all new containers built between 2012 and 2015 with bamboo flooring has been significantly surpassed with 93.5 percent. The next “bamboo goal” by 2020: 95 percent of all container floors are to be made of bamboo or alternative material.

Environmental goalEven more dry container floors made from bamboo

The sustainable grassLight, strong, and resistant

2012 to 2015

80%2016 to 2020

95%

Resistant to temperature fluctuations

Especially resistant to humidity

fluctuations

Grows ten timesas fast as wood

Very lightmaterial

Ten times highertensile strength than

wood

Strength comparable to steel and concrete

Division

Shipping

Bamboo is one of the fastest-growing plants in the world: Within two months, a young shoot can reach its final height and thickness. Within this time, some types can even reach a height of more than 12 meters and a diameter of up to ten centimeters.

Within four years, a new trunk grows from the roots of a bamboo plant. Unlike with wood, this makes reforestation unnecessary.

Bamboo flooringprotects the climate

Bamboo is the container fl ooring of the future because, in contrast to tropical wood fl ooring, the use of this sustainable

grass protects the rainforest. The Hamburg Süd Group has already been using bamboo fl ooring since 2012, and wants to

increase the share of bamboo and other alternative fl ooring in new containers to a minimum of 95 percent by 2020.

BambooThe fast-growing raw material

12 m

18 days 28 days 36 days 44 days 56 days

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Dr. Futterer, you have been working on the development of new products and applications at Budenheim for 18 years. Which subject are you currently most excited about? My team and I are researching the interaction between laser light

and phosphates. We have observed that certain metal compounds absorb the light very well, and undergo a change in the process. When laser light strikes plastic components that were previously built into our products, the laser triggers a fascinating chemical and physical reaction: The metal phosphates in the plastic absorb energy and leave a precise metal track on the surface. These micro-scopic metal seeds serve as the precursor to complex conductor tracks. The plastic now has a completely new functionality!

That sounds unusual and new. What distinguishes these conductor tracks from conventional electrical conductor tracks? In our highly technologized world, we are always striving for lighter,

more compact devices. Plastic is usually the material of choice. If everything continues to become smaller and more complex at the same time, for example if we continue to follow the trend of miniaturization, this will also create new challenges for chemistry and technology. The goal is to create flexible solutions, including for electrical conductor tracks, with a minimum of material and using very little space. With precise movements of the laser light, we can create highly complex circuits in 3-D that are directly integrated into the plastic. Thanks to chemistry, new perspectives are also un-folding in microelectronics.

You mean that your products in plastics will be what enables new electronic applications? Exactly. Smartphones of the most recent generation are using exactly

this type of microstructure for antennas. The laser light is extremely precise and enables all conceivable forms and structures on the sur-face of the plastic. At the same time, this technology is especially resource-friendly, since the use of difficult-to-manage chemicals is significantly reduced, and the use of rare and expensive metal salts can be decreased to a minimum. A groundbreaking technology from any perspective.

Chemistryof the future

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Other Interests

Dr. Thomas Futterer, Director of Innovation and Application Development for Plastics Additives at the chemistry specialists

Budenheim, presents a technology for the manufacturing of complex conductor tracks, and shows how products are converted

to three-dimensional metal structures on surfaces.

How plasticsbecome conductive

Dr. Futterer, you have been working on the development of new products and applications at Budenheim for 18 years. Which subject are you currently most excited about? My team and I are researching the interaction between laser light

and phosphates. We have observed that certain metal compounds absorb the light very well, and undergo a change in the process. When laser light strikes plastic components that were previously built into our products, the laser triggers a fascinating chemical and physical reaction: The metal phosphates in the plastic absorb energy and leave a precise metal track on the surface. These micro-scopic metal seeds serve as the precursor to complex conductor tracks. The plastic now has a completely new functionality!

That sounds unusual and new. What distinguishes these conductor tracks from conventional electrical conductor tracks? In our highly technologized world, we are always striving for lighter,

more compact devices. Plastic is usually the material of choice. If everything continues to become smaller and more complex at the same time, for example if we continue to follow the trend of miniaturization, this will also create new challenges for chemistry and technology. The goal is to create flexible solutions, including for electrical conductor tracks, with a minimum of material and using very little space. With precise movements of the laser light, we can create highly complex circuits in 3-D that are directly integrated into the plastic. Thanks to chemistry, new perspectives are also un-folding in microelectronics.

You mean that your products in plastics will be what enables new electronic applications? Exactly. Smartphones of the most recent generation are using exactly

this type of microstructure for antennas. The laser light is extremely precise and enables all conceivable forms and structures on the sur-face of the plastic. At the same time, this technology is especially resource-friendly, since the use of difficult-to-manage chemicals is significantly reduced, and the use of rare and expensive metal salts can be decreased to a minimum. A groundbreaking technology from any perspective.

Division

Other Interests

Dr. Thomas Futterer, Director of Innovation and Application Development for Plastics Additives at the chemistry specialists

Budenheim, presents a technology for the manufacturing of complex conductor tracks, and shows how products are converted

to three-dimensional metal structures on surfaces.

How plasticsbecome conductive

The

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Ms. Gerbaulet, the major trend of digitalization unifies many facets. What does that mean? First of all, it creates interesting investment opportunities,

which are attracting increasing attention in the current market environment. Secondly, it is resulting in a tangible strategic development potential for established mid-sized companies. And thirdly, today’s start-up scene is growing into tomorrow’s mid-sized business sector, with a demand for classical corporate finance services and capital market-oriented strategic consulting.

What are the specific actions required – especially in regard to one of your core target groups, German mid-sized companies? Traditional companies must find their way into the digital

world. By providing access to international asset manage-ment with a strong focus on technology and the Internet, we are building a bridge between the established, predominantly industrially oriented mid-sized companies, and the innovation- driven digital world. This is also about establishing the “tech” asset class. With the help of exclusive investment opportuni-ties, we will bring together wealthy private investors and this promising asset class. This is validated by our cooperation with e.Ventures.

Your cooperation with e.Ventures – what is behind that? What is so innovative about it? e.Ventures is a venture capital company with a renowned

business family as anchor investor – thus a great fit for families and, of course, family businesses. Together with e. Ventures, we have made investments in digital business models available – including for wealthy private investors. In addition, the cooperation will serve to open up a dialog be-tween the owners of mid-sized businesses and young start-up business owners. This exchange will result in fresh ideas and important inspiration. We support our customers in the forward-looking modern orientation of their company and their investments.

This is also about establishing the “Tech” asset class.Ute Gerbaulet

Investmentsin the digital world

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Division

Bank

Ute Gerbaulet, General Partner of Bankhaus Lampe, shows how the bank provides investors with access to the digital world.

She builds bridges between predominantly industrially oriented medium-sized businesses in Germany, their investors,

and a world driven by digital innovation in Silicon Valley.

Bridge between medium-sized businesses

and Silicon Valley

Ms. Gerbaulet, the major trend of digitalization unifies many facets. What does that mean? First of all, it creates interesting investment opportunities,

which are attracting increasing attention in the current market environment. Secondly, it is resulting in a tangible strategic development potential for established mid-sized companies. And thirdly, today’s start-up scene is growing into tomorrow’s mid-sized business sector, with a demand for classical corporate finance services and capital market-oriented strategic consulting.

What are the specific actions required – especially in regard to one of your core target groups, German mid-sized companies? Traditional companies must find their way into the digital

world. By providing access to international asset manage-ment with a strong focus on technology and the Internet, we are building a bridge between the established, predominantly industrially oriented mid-sized companies, and the innovation- driven digital world. This is also about establishing the “tech” asset class. With the help of exclusive investment opportuni-ties, we will bring together wealthy private investors and this promising asset class. This is validated by our cooperation with e.Ventures.

Your cooperation with e.Ventures – what is behind that? What is so innovative about it? e.Ventures is a venture capital company with a renowned

business family as anchor investor – thus a great fit for families and, of course, family businesses. Together with e. Ventures, we have made investments in digital business models available – including for wealthy private investors. In addition, the cooperation will serve to open up a dialog be-tween the owners of mid-sized businesses and young start-up business owners. This exchange will result in fresh ideas and important inspiration. We support our customers in the forward-looking modern orientation of their company and their investments.

This is also about establishing the “Tech” asset class.Ute Gerbaulet

Division

Bank

Ute Gerbaulet, General Partner of Bankhaus Lampe, shows how the bank provides investors with access to the digital world.

She builds bridges between predominantly industrially oriented medium-sized businesses in Germany, their investors,

and a world driven by digital innovation in Silicon Valley.

Bridge between medium-sized businesses

and Silicon Valley

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28

01 The Oetker Group

Corporate Profile 30

Locations 44

History 46

Sustainability 48

29

The Oetker Group

The

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The Oetker Group

01

30

The Oetker Group

Corporate Profile

Corporate ProfileOverview of the Oetker Group

With around 32,000 employees and sales revenue of almost EUR 12 billion, the Oetker Group is one of the largest family-run businesses in Germany. This internationally active corporation, which can look back at more than 125 years of history, is characterized by its wide diversifi cation in six business divisions.

BielefeldHead offi ce

consolidated companies

415

years of company history

Over 12511.7billion euros in sales revenue

32,078employees

31

The Oetker Group

Corporate Profile

Bank

Shipping



Other Interests

Food

OETKER GROUP

Divisions

Food

oetker.comoetker.deoetker-professional.demartinbraungruppe.decoppenrath-wiese.de

People on every continent trust the food specialties of the Oetker Group. Besides Dr. Oetker, the Food Division includes the Martin Braun Group and Conditorei Coppenrath & Wiese. In the 2016 financial year, 15,368 em-ployees achieved sales revenue of EUR 3,071 million.

http://www.oetker.com/en/startseite.html

https://www.oetker.de/index.html

https://www.oetker-professional.de/de/index.html

http://www.martinbraungruppe.de/en/home/

https://www.coppenrath-wiese.de

33

Food

The Oetker Group

Dr. OetkerIn the year 1891, Dr. August Oetker founded a small company in Bielefeld. He sold health cocoa, tinctures, and baking powder. Today, the Dr. Oetker family business has more than 11,600 employees worldwide producing more than 4,000 products – still including baking powder and many other baking products, but also baking mixes, decorations, desserts and sweet meals, chilled desserts, preservation products, ready-made cakes, muesli, frozen pizzas and snacks, refinement products, a wide line of products for bulk consumers, and much more.

Martin Braun GroupThe Martin Braun Group offers a complete range of convenience products for sweet and savory baked goods, bread and rolls, desserts, and ice cream for bulk consumers. Together with Agrano, C. Siebrecht Söhne, Cresco, Capfruit, Delite, Martin Braun, Polen Gida, and Wolf ButterBack, it includes all companies in the bulk consumer baking sector, and has more than 1,400 employees in 13 locations. With its products, the group is re presented in almost 70 countries worldwide. In the fall of 2016, the group was newly joined by Polen Gida – a Turkish baking products manufacturer.

Conditorei Coppenrath & WieseSweet temptations are the main business of Conditorei Coppenrath & Wiese, which has around 2,300 employees: The company is the market leader in the manufacturing of frozen gateaux and cakes, which are produced in Mettingen. In addition to cream pies, baked cakes, sheet cakes, cream rolls and tarts, strudels, mini confectionery and desserts, the company’s product line also includes frozen rolls and baguettes.

Divisions

Beer and NonalcoholicBeverages

radeberger-gruppe.de

Internationally renowned names, nationally sold brands, regional specialties: The Radeberger Group offers beer enthusiasts a highly diverse line of products. An assortment of nonalcoholic beverages completes the wide variety of Germany’s largest private brewing group. It forms the Beer and Nonalcoholic Beverages Division. In the 2016 financial year, 5,986 employees achieved sales revenue of EUR 1,901 million (EUR 1,988 million including excise taxes).

http://www.radeberger-gruppe.de/en/home

Divisions

Beer and NonalcoholicBeverages


Internationally renowned names, nationally sold brands, regional specialties: The Radeberger Group offers beer enthusiasts a highly diverse line of products. An assortment of nonalcoholic beverages completes the wide variety of Germany’s largest private brewing group. It forms the Beer and Nonalcoholic Beverages Division. In the 2016 financial year, 5,986 employees achieved sales revenue of EUR 1,901 million (EUR 1,988 million including excise taxes).

35


The Oetker Group

BeersPilsner and wheat beer brands that are known throughout Germany can be found under the umbrella of the Radeberger Group: the unique Radeberger Pilsner, sparkling Schöfferhofer Weizen, or the dry Frisian beer Jever Pilsener. The Radeberger Group can service the current trend towards regional products like no other company in the German beer market: Allgäuer Büble Bier, Berliner Kindl and Berliner Pilsner, Brinkhoff’s No. 1, Dortmunder Kronen, Sion Kölsch, Ur-Krostitzer, Freiberger, Stuttgarter Hofbräu, and Tucher, to name just a few, pro-vide a wide spectrum of premium brands. Furthermore, many brands of the Radeberger Group in different varieties are also represented in the market for nonalcoholic beers.

Well-known international premium brands such as Guinness, Kilkenny, Sol, and Estrella Damm contribute to the comprehensive range of beers. However, the products of the Radeberger Group are not only sold in Germany. They also enjoy a continuously growing international popularity.

Nonalcoholic beveragesThe portfolio of nonalcoholic beverages includes one of the first brand products in the world: Original Selters from Selters an der Lahn. The product line is complemented by Bionade, the alternative refreshment from Ostheim vor der Rhön, and Ti, the refreshing tea. The Pepsi, Mirinda, 7Up, and Schwip Schwap brands from the cooperation partner PepsiCo Germany complete the range of nonalcoholic beverages.

Sparkling Wine, Wineand Spirits

Henkell is Germany’s most exported sparkling wine brand. With 1,922 employees, the Henkell & Co. Group makes up the Sparkling Wine, Wine and Spirits Division of the Oetker Group. In the 2016 financial year, the Henkell & Co. Group achieved sales revenue of EUR 502 million (EUR 691 million including excise taxes). It is represented with its own companies in 20 countries, and exports to more than 100 nations worldwide.

henkell-gruppe.de

https://www.henkell-gruppe.com/home.html

Sparkling Wine, Wineand Spirits

Henkell is Germany’s most exported sparkling wine brand. With 1,922 employees, the Henkell & Co. Group makes up the Sparkling Wine, Wine and Spirits Division of the Oetker Group. In the 2016 financial year, the Henkell & Co. Group achieved sales revenue of EUR 502 million (EUR 691 million including excise taxes). It is represented with its own companies in 20 countries, and exports to more than 100 nations worldwide.

henkell-gruppe.de

37


The Oetker Group

Sparkling wineThe Henkell & Co. Group offers all popular types of sparkling wine from its own production. Apart from well-known German sparkling wine brands such as Henkell, Fürst von Metternich, and Söhnlein Brillant, the portfolio includes proprietary champagnes and crémants under the brands Alfred Gratien and Gratien & Meyer from France, Mionetto prosecco from Italy, and cava from the small cava manufactory Cavas Hill in Spain. Also part of the portfolio are long-established sparkling wine brands from Hungary, the Czech Republic, Romania, Slovakia, and Ukraine. Henkell & Co. is a leader in the premium sparkling wine market in Germany, as well as in Austria, Hungary, Estonia, the Czech Republic, Slovakia, and Canada. The Mionetto brand is the leading prosecco in the world.

WineBesides sparkling wine, renowned national and international wines complete the group’s product line. The German winery Fürst von Metternich-Winneburg’sche Domäne Schloss Johannisberg represents selected, internationally renowned Riesling wines. With wineries in the Czech Republic, Slovakia, and Hungary, Henkell & Co. is one of the leading providers of quality wines in Central Europe, and with the wine brand i heart WINES it has one of the fastest-growing wine brands in England.

SpiritsThe Henkell & Co. Group offers a wide range of spirits, including almost all relevant types of vodka, “Korn” schnapps, gin, brandy, cream and bitter liqueurs, and aperitifs. In the spirits sector, Henkell & Co. is market leader for vodka in Germany, gin in Poland, and brandy in Slovakia.

The Hamburg Süd Group is represented by more than 250 offices worldwide, more than 100 of those its own. With 120 container ships, 48 of which are owned by the group, it is seventh among the world’s largest container shipping lines, and is one of the leading providers along the north-south trading routes. Its core business is container shipping; however, its range of services goes far beyond just sea transport from port to port. As an in-ternational transport logistics organization with 6,300 employees, it achieved sales revenue of EUR 5,624 million in the 2016 financial year. It is also active in bulk shipping and product tanker shipping.

hamburgsud.com

Shipping

https://hamburgsud.com/group/en/corporatehome/index.html

The Hamburg Süd Group is represented by more than 250 offices worldwide, more than 100 of those its own. With 120 container ships, 48 of which are owned by the group, it is seventh among the world’s largest container shipping lines, and is one of the leading providers along the north-south trading routes. Its core business is container shipping; however, its range of services goes far beyond just sea transport from port to port. As an in-ternational transport logistics organization with 6,300 employees, it achieved sales revenue of EUR 5,624 million in the 2016 financial year. It is also active in bulk shipping and product tanker shipping.

hamburgsud.com

Shipping

39

Shipping

The Oetker Group

Liner shipping In container liner services, the shipping group is represented by the German carrier Hamburg Süd and the Brazilian shipping company Aliança. They are both among the leading ship-ping companies in the traditionally significant South American business. Aliança is the clear market leader in the cabotage traffic along the Brazilian coastline. In the traffic from and to the west coast of South America, the group also operates under the name Compañía Chilena de Navegación Interoceánica S.A. (CCNI). Since the beginning of 2015, Hamburg Süd has also been represented in the east-west trade from Asia to Europe and North America, thus providing its customers with a global network. In 2016, the approximately 50 liner services of the Hamburg Süd Group operated 120 container ships and a pool of about 583,000 containers.

In order to guarantee high logistical quality and optimal transport conditions, the container ships used are optimally configured for their respective operating areas. Besides standard 20- and 40-foot containers, special containers are used to meet the various requirements of certain raw materials, semi-finished and finished products, industrial goods, and natural products. This is especially applicable in the refrigeration sector, where innovative refrigerated container technologies preserve the quality of fruit, meat, fish, vegetables, dairy products, and other perishable goods. The transport of fresh products is one of the core competences of Hamburg Süd, which is one of the five largest container carriers in the world.

Tramp shipping In contrast to liner shipping, tramp activities have no fixed schedules and routes. In this sector, the group is present on the world’s oceans with 48 ships in bulk cargo and with eight in product tanker shipping, under the names Rudolf A. Oetker (RAO), Furness Withy Chartering, and Aliança Bulk (Aliabulk).

Other services Columbus Shipmanagement GmbH (CSG) is responsible for technical administration as well as new construction of the group’s own liner ships, and manages the sea personnel. Furthermore, the group holds shares in a terminal in Brazil, and operates its own container depots and transport companies, especially in South America. The Hamburg Süd travel agency, a specialist provider for business travel, cruises, and other tourism products, completes the range of services in the Shipping Division.

Divisions

Other Interests

budenheim.comoetkercollection.comoediv.deroland-transport.de

Companies in the Other Interests Division represent the chemicals, luxury hotels, information technology, procurement services, and logistics sectors, thus providing a highly diverse range of products and services. In the 2016 financial year, the 2,503 employees in this division achieved sales revenue of EUR 606 million.

https://www.budenheim.com/en/

https://www.oetkercollection.com/eng/home/

https://www.oediv.de/en/

http://www.roland-transport.de/en/home/

Divisions

Other Interests


Companies in the Other Interests Division represent the chemicals, luxury hotels, information technology, procurement services, and logistics sectors, thus providing a highly diverse range of products and services. In the 2016 financial year, the 2,503 employees in this division achieved sales revenue of EUR 606 million.

41

Other Interests

The Oetker Group

BudenheimThe long-established company Budenheim has its origins in the eponymous municipality in Rheinhessen. On the world markets, it has evolved into an international leader in the manufacturing of phosphates and special chemicals. Around 1,000 employees produce more than 1,000 products for about 6,000 customers in over 100 countries – for special tech-nical applications, food, and pharmaceutical products.

Oetker CollectionSingular elegance and distinctive hospitality – that is what the Masterpiece Hotels of the Oetker Collection represent. Four of these masterpieces – the Brenners Park-Hotel & Spa, the Hotel Le Bristol, the Château Saint-Martin & Spa, and the Hotel du Cap-Eden-Roc – are owned by the group. An additional five grand hotels complete the collection. Their manage-ment has been entrusted to the Oetker Hotel Management Company (OHMC).

OEDIV Oetker Daten- und InformationsverarbeitungOEDIV Oetker Daten- und Informationsverarbeitung not only operates the group’s own data centers, but also provides a wide range of IT systems for external companies. The main focus includes applications by SAP and Microsoft, as well as corresponding solutions for visualizing of integrated process chains. In the course of continuous development of the SAP and Microsoft product range towards cloud-based solutions, OEDIV is also expanding its expertise to these operating models.

Handelsgesellschaft SparrenbergMarket expertise, services, tools – Handelsgesellschaft Sparrenberg supports the Oetker Group as well as selected external companies in strategic procurement, with information and consulting services for procurement market research, material group analysis, tender manage-ment, and coordination / bundling.

Roland TransportRoland Transport is a service-oriented partner for logistics services. Besides freight and other logistics services, Roland offers support for tenders, transport planning, and other 4PL activities (4PL = fourth-party logistics).

Divisions

Bankhaus Lampe is one of the leading private banks in Germany and represents quality. Its select customer base includes high net worth indi-viduals, companies, and institutional clients. With 669 employees, the eponymous group makes up the Bank Division. In addition to Bankhaus Lampe, with 12 branches and other locations in London, New York, and Vienna, this division includes several subsidiaries and shareholdings.

bankhaus-lampe.de

Bank

Divisions

Bankhaus Lampe is one of the leading private banks in Germany and represents quality. Its select customer base includes high net worth indi-viduals, companies, and institutional clients. With 669 employees, the eponymous group makes up the Bank Division. In addition to Bankhaus Lampe, with 12 branches and other locations in London, New York, and Vienna, this division includes several subsidiaries and shareholdings.

bankhaus-lampe.de

Bank

43

Bank

The Oetker Group

Bankhaus LampeIn 1852, Hermann Lampe founded the bank in Minden, East Westphalia. Today, the bank’s head office is in Bielefeld. Additional branches are located in Berlin, Bonn, Bremen, Dresden, Düsseldorf, Frankfurt am Main, Hamburg, Munich, Münster, Osnabrück, and Stuttgart.

The bank’s range of services includes intelligent wealth and asset management as well as corporate finance services for high net worth individuals, companies, and institutional clients.

As a bank by entrepreneurs for entrepreneurs, the long-established company represents continuity in the market, thus providing ideal conditions for long-term and trusting business relationships.

“Achieving the extraordinary” is the motto to which the bank and its employees have always been committed. The four values of responsibility, excellence, partnership, and innovation characterize the work of Bankhaus Lampe. A future-proof business model, independence, and an inherent understanding of the mid-sized sector ensure a clear distinction from the competition.

44

The Oetker Group

Locations

EOH Externally owned hotel (Management by Oetker Hotel Management Company)

GOH Group-owned hotelPAL Production and administration locationPL Production locationSAL Sales locationSASU Sales support SEL Services locationSHL Shipping line SLL Sales and logistics location

incl. joint ventures

36Region North America

Food

11Germany

22Eastern Europe

23Northern, Southern, and Western Europe

1South America

6Asia and Australia

8North America

2Africa


18locations

worldwide

16Germany


1North America


32locations

worldwide

16Eastern Europe

1North America

3Germany

Food: 3 PL, 3 SAL, 2 PAL (Dr. Oetker: 3 PL, 2 SAL, 2 PAL / Conditorei Coppenrath & Wiese: 1 SAL)Beer and Nonalcoholic Beverages: 1 SALSparkling Wine, Wine and Spirits: 1 SALShipping: 23 SLLOther Interests: Hotels: 1 EOH / Chemistry: 2 PAL

32Region South America

Food: 1 PAL (Dr. Oetker)Shipping: 1 SHL, 25 SLL, 4 SEL Other Interests: Hotels: 1 EOH

73locations

worldwide

Locations

12Northern, Southern,

and Western Europe

45

The Oetker Group

Locations

Other InterestsShipping

locationsworldwide

29Asia and Australia

9Germany


30South America

23North America

6Africa

46Region Germany

Food: 1 PL, 1 SAL, 9 PAL (Dr. Oetker: 1 PL, 5 PAL / Martin Braun: 3 PAL / Conditorei Coppenrath & Wiese: 1 PAL, 1 SAL)Beer and Nonalcoholic Beverages: 1 SAL, 15 PALSparkling Wine, Wine and Spirits: 1 PL, 2 PALShipping: 2 SHL, 5 SLL, 2 SELOther Interests: Chemistry: 1 PAL / Hotels: 1 GOH, 1 SASU / Other: 4

39Region Asia and Australia

Food: 1 PL, 1 SAL, 4 PAL(Dr. Oetker: 1 PL, 4 PAL / Martin Braun: 1 SAL)Shipping: 1 SHL, 28 SLLOther Interests: Chemistry: 3 SAL, 1 PAL

locationsworldwide

24110

38Region Eastern Europe

Food: 4 PL, 10 SAL, 8 PAL(Dr. Oetker: 4 PL, 8 SAL, 6 PAL / Martin Braun: 2 SAL, 2 PAL)Sparkling Wine, Wine and Spirits: 8 PL, 3 SAL, 5 PAL

9Region Africa

Food: 2 PAL (Dr. Oetker)Shipping: 6 SLLOther Interests: Hotels: 1 EOH

57Region Northern, Southern, and Western Europe

Food: 1 PL, 12 SAL, 10 PAL(Dr. Oetker: 1 PL, 11 SAL, 5 PAL / Martin Braun: 5 PAL / Conditorei Coppenrath & Wiese: 1 SAL)Beer and Nonalcoholic Beverages: 1 SALSparkling Wine, Wine and Spirits: 2 PL, 7 SAL, 3 PALShipping: 1 SHL, 12 SLLOther Interests: Chemistry: 1 SAL, 2 PAL / Hotels: 2 EOH, 3 GOH

1Africa

4Asia and Australia


1South America

3North America

7Germany

46

The Oetker Group

History

1952Acquisition of Binding-Brauerei AG in Frankfurt am Main; the city is today the headquarters of the Radeberger Group.

1949Acquisition of Bankhaus Lampe, founded in Minden in 1852, and re-location of the com-pany’s headquarters to Bielefeld.

1923Investment in Chemische Fabrik Budenheim. 1941

Acquisition of the majority share in Brenners Park-Hotel & Spa.

1944The founder’s grand-son, Rudolf- August Oetker (1916–2007), takes on the manage-ment of the family com pany and continu-ously expands into new areas of business.

1950Dr. Oetker Verlag founded.

1891The pharmacist Dr. August Oetker develops Backin baking powder, laying the foundation for the company Dr. Oetker.

1936Participation in the shipping company Hamburg Süd.

1958Acquisition of Söhnlein Rheingold Sektkellerei. Today’s international Henkell & Co. Group was formed through the subsequent merger with Henkell & Co.

The history of the long-established company goes back to the year 1891, when Dr. August Oetker laid the foundation for the Oetker Group in Bielefeld. Today, the company comprises six divisions, and is active in various industrial sectors throughout the world.

History

47

The Oetker Group

History

1990Acquisition of Martin Braun, from which today’s Martin Braun Group evolves.

1969Hotel du Cap-Eden-Roc (France) acquired.

1981August Oetker becomes

General Partner of Dr. August Oetker KG.

1978Hotel Le Bristol Paris (France) acquired.

1994Acquisition of the hotel Château St.-Martin & Spa (France).

2015Acquisition of Conditorei Coppenrath & Wiese, the leading manufacturer of frozen gateaux and cakes.

2010Richard Oetker

becomes General Partner of

Dr. August Oetker KG and takes over as Chairman of the

Executive Board of Dr. Oetker GmbH.

2008Founding of Oetker Hotel Management Company (OHMC), which specializes in the management of unique, externally owned hotels.

48

The Oetker Group

Sustainability

Sustainability

As one of the largest German family-run businesses, the Oetker Group is always aware of its responsibilities towards its stakeholders and remains committed to sustainable value creation in the context of its economic activity. To achieve long-term economic success in harmony with the environment and society, the international corporate strategy is being con-tinuously developed in the context of an active dialog with customers, business partners, and employees, with consideration to current megatrends, and adapted to the market realities of the various sectors.

Sustainable action is an integral part of the corporate philosophy: At all its locations world-wide, the Oetker Group assumes responsibility for its employees as well as the environment. To create the possibility of passing on the Earth to future generations in a better state, available resources should be used sparingly. The products and services of the Oetker Group companies will fulfill this ideal.

Within the group-wide context, the individual companies are decentrally implementing sustainable measures in the areas of supply chain, research and development, environment, employees, social responsibility, and compliance.

Supply chain Sustainable business and a transparent supply chain are being increasingly demanded by the business partners of the group companies. The decentrally organized purchasing organizations are responsible for all acquisition activity in their respective sectors, and thus for sustainable business within the supply chains. In cooperation with the suppliers, they ensure the optimization of the value creation chain and the high quality of supply. In addition to transparency, the assurance of basic human rights and minimum social standards plays a key role in this. The contract partners of the group are expected to conduct them-selves according to corporate ethical values as defined in the Code of Conduct, to which the sup pliers are bound. Furthermore, given the increasing volatility of markets, risk manage-ment is an integral part of the purchasing strategies.

To fulfill the high quality requirements of the Oetker Group, the acquisition of all materials takes place exclusively through carefully selected suppliers who have been approved through a regular, periodic quality assurance process. In this process, the adherence to strict quality standards is the foremost priority. The various standards and purchasing guidelines of the group companies define the high requirements for the goods and services of business partners, and assure transparency in the purchasing process throughout the respective business fields. For this purpose, the companies have established a comprehensive supplier management system applicable to the respective sector, thereby processing the increased requirements for the supply chains in a resource-saving and sustainable fashion. The pur-chasing processes are regularly analyzed and continuously adjusted. Central processes are standardized and coordinated with each other. In addition, there is close, group-wide coordination within the purchasing organization of the Oetker Group.

Sustainability as a strategic core mission

Fulfillment of the high standard of quality through comprehensive purchasing requirements and codes

Focus on sustainable procurement of certified raw ingredients

49

The Oetker Group

Sustainability

Besides the decentrally controlled purchasing organizations in the group companies, Handelsgesellschaft Sparrenberg (HGS), as a professionally and methodically specialized information and procurement provider, supports the purchasing managers of the Oetker Group in the mostly internationally oriented activities of strategic purchasing. This applies to, for example, the analysis and use of European procurement markets, the research, processing, and interpretation of market and price data and the derivation of possible future developments.

Research and development For the Oetker Group, innovative new products and services guarantee growth and success, and are therefore the main focus of research and development efforts (R+D). The accep-tance of customers, the trust in the quality of products and services, and, customer satisfaction are the benchmark for new products and the continuous improvement and evolution of existing product lines and processes. Through a holistic consideration of all value creation stages, the companies secure the customer-oriented range of high-quality products and premium services.

The decentrally organized R+D divisions accompany the entire life cycle of individual products with the essential processes of idea management, product development, and quality assur-ance. In this way, trends are identified and evaluated in a timely fashion, and possibly turned into new products. The respective R+D departments have access to a quality management system that is aligned with the company and the product range, and they collaborate closely with the marketing, purchasing, and production departments.

Environment Environmental protection is a top priority in all business divisions of the Oetker Group, and is firmly rooted in the corporate strategy, which defines concrete objectives in its orientation towards long-term value creation. In the context of sustainable and environmentally friendly product development, the group companies consider the complete product life cycle, imple-menting the standard of environmental protection in everything from packaging design and production to product usage, disposal, and recycling. They act in accordance with the ap-proved environmental and energy guidelines. This has facilitated the achievement of high environmental standards in the group companies, and led to the introduction of certified environmental management systems. In almost all plants, as well as on all ships, energy consumption, waste and recycling amounts, water consumption, and carbon dioxide emis-sions are recorded and presented in annual environmental reports.

Development of innovative convenience products and services

Quality assurance: regular audits in accordance with ISO 9001, 9002, and 22000, among other standards

Increased energy efficiency through continued reduction of energy consumption and CO2 emissions

50

The Oetker Group

Sustainability

Regardless of which, the objective remains to continuously reduce environmental impact. In 2016, the comprehensive measures of the Oetker Group companies continued to achieve further improvements in this regard. This progress is largely thanks to the commitment of the employees. They regularly monitor the achievement of these demanding objectives and assume responsibility for environmental protection on their own initiative. The decline in energy consumption and the associated decrease in emissions remain at the center of activities for environmental and climate protection within the Oetker Group.

EmployeesThe success of the Oetker Group is based on its qualified and committed employees around the world. They characterize the corporate image, and are at the center of all activities together with products, services, and brands. The personnel strategy of the group is geared towards supporting strategic evolution and international growth as effectively as possible, and to promoting close collaboration between the group companies. It is based on the com-mon principles of modern, international human resource management, and constitutes the foundation for a group-wide understanding of values, the promotion of know-how transfers throughout the group, and the creation of conditions that will make employees enthusiastic about their flexible deployment within the group.

In order to meet the challenges of demographic change and increasing international com-petition, the family-run business ensures attractive working conditions on all levels, and creates secure jobs. It also provides attractive professional prospects in an internationally oriented group of companies.

SocietyAs a family-run business, the Oetker Group is part of society in a special way. To recognize and consider the integration of the business in a social context is the fundamental require-ment of sustainable action. With their worldwide commitment in many different areas, the owner family, the partners, and the company, including all of its employees, are meeting this responsibility.

Ever since Dr. Oetker was founded in 1891 – the origin of the Oetker Group – the owner family and the partners have been engaging with the pressing sociopolitical subjects of their time, and contributing to the ecological, social, cultural, and educational evolution of all sectors of society. The tremendous scope of challenges in globalized society has also forced companies such as the Oetker Group to focus their commitment on selected areas.

Certified environmental and energy management according to ISO 14001 and 50001

Focus on corporate health management

Ongoing and advanced training: individually tailored and certified

Promotion of education and training for young people in cooperation with schools and universities

Comprehensive support for social, cultural, and scientific institutions

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The Oetker Group

Sustainability

Compliance In addition to the previously described areas of activity, the topic of compliance has gained relevance in view of the strong international growth of the Oetker Group and the associated increase in statutory requirements. For this reason, a compliance management system was developed for the entire Oetker Group, and a compliance organization was set up whose representatives are available as neutral and independent resources for all questions regard-ing compliance. The guidelines for sustainable action are summarized in the Oetker Code of Conduct. This applies to all companies of the Oetker Group and includes mandatory principles of conduct for all employees.

Additional information on the sustainability activities of the group companies can be found in the respective publications and websites.

Compliance organization: group-wide unifiedcompliance management system

Sustainability management of the Oetker Group

Sustainability as a strategic core mission

Inte

rnat

iona

l corporate philosophy

of the group companies

Responsibility for employees, the environm

ent

of th

e Oetk

er Group

Decentrally controlled sustainability measures

and worldw

ide society

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The Oetker Group

Sustainability

02 Group Management Report

Corporate Structure 54

Overview 54

Business Divisions 55

Management Structure 62

Group Management 64

Economic Framework 66

Business Development 70

Oetker Group 70

Food 72

Beer and Nonalcoholic Beverages 76

Sparkling Wine, Wine and Spirits 79

Shipping 82

Other Interests 85

Financial Position 90

Forecast Report 93

Opportunities and Risks Report 94

Sustainability

Group Management Report

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Corporate Structure


Corporate StructureOverview

The Oetker Group is one of Germany’s major family businesses. The internationally active group is characterized by its diversification into six business divisions, and maintains production plants, sales, and service units in more than 50 countries. It has more than 250 locations worldwide. The consolidated financial statements for 2016 cover a total of 415 companies (previous year: 417 companies) under the rules of full consolidation, of which 236 are based in Germany (previous year: 240) and 179 (previous year: 177) abroad. The group’s head office is in Bielefeld (Germany).

The group is committed to the balancing of risks, and is comprised of five consolidated business divisions:

• Food• Beer and Nonalcoholic Beverages• Sparkling Wine, Wine and Spirits• Shipping• Other Interests

In addition, Bankhaus Lampe and its subsidiaries form the Bank Division, which is included at equity in the consolidated financial statements.

As the group holding company, Dr. August Oetker KG steers this process centrally through mature structures, a leadership framework with clear responsibilities, coordination of finance and personnel, and central service departments. Standards and values across the group form the cultural framework for effective cooperation that builds on high business continuity. Under the group umbrella and building on the strategic potential and core com-petencies of the Oetker Group, the divisions are developed and expanded autonomously.

Corporate Structure


55

FoodThe Food Division is comprised of the companies Dr. Oetker, the Martin Braun Group, and Conditorei Coppenrath & Wiese. The three groups are headquartered in Germany and produce food for retail and wholesale consumers worldwide.

Under the umbrella of Dr. Oetker, and its head office in Bielefeld, 40 national companies operate across the globe. The more than 4,000 different products worldwide are marketed in all key distribution channels. The sales activities of Dr. Oetker are decentrally organized and specific to each country, corresponding to the requirements of local customers. Sales target groups are divided into retail and professional customers. In the German end- consumer business, Dr. Oetker offers about 1,000 products in the areas of ambient food, frozen food, and chilled products, which are complemented by a richly varied offering for bulk consumers. The Dr. Oetker Professional brand offers products in appropriate packaging sizes for kitchens and canteens in the catering segment, hospitals, and other institutions. The products from the ambient food range are manufactured in Germany, at the plants in Bielefeld and Oerlinghausen. Pizza production is based in Wittenburg and Wittlich. Chilled products are produced in Moers. The bulk consumer product range is produced by Dr. Oetker Professional at the Ettlingen location. In addition to production sites in Germany, Dr. Oetker operates plants in the European core markets and in North America, South America, and Asia.

Besides the Dr. Oetker brand, the company owns other strong and firmly established brands in certain countries. These include cameo and Paneangeli in Italy, D’Gari in Mexico, Koopmans in the Netherlands, and Chicago Town in the United Kingdom. The national companies offer international Dr. Oetker products such as baked products, desserts, and pizza, as well as national products geared towards typical local tastes. The global control of international brands plays a key role, especially in the area of pizza.

To fulfill the high quality requirements of the Oetker Group, the procurement of all materials is handled exclusively through carefully selected suppliers who have been approved through a regular, periodic quality assurance process. In this process, adherence to the strict quality standards is the top priority.

For Dr. Oetker, innovative new products and services guarantee growth and success. Consumer acceptance and confidence in the quality of products set the standard for new products and the continuing development of the existing product line. International teams work with prod-ucts throughout their entire life cycle. Trends are thus identified and evaluated in a timely fashion, and possibly turned into new products.

Business Divisions

oetker.comoetker.deoetker-professional.demartinbraungruppe.decoppenrath-wiese.de

http://www.oetker.com/en/startseite.html

https://www.oetker.de/index.html

https://www.oetker-professional.de/de/index.html

http://www.martinbraungruppe.de/en/home/

https://www.coppenrath-wiese.de

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Corporate Structure


The Martin Braun Group, headquartered in Hanover, includes all companies in the bulk consumer baking sector. It develops, produces, and markets a full range of convenience prod-ucts for the bakery, confectionery, and restaurant industries, and sells its products world-wide in wholesale and retail outlets, bakeries, patisseries, and industrial companies. Among other items, the product range includes flavorings, fillings, cream stabilizers, glazes, pastes, decorating supplies, ready-made and pre-mixes for baked products, gelling and bind-ing agents, ice-cream products, toppings, beverage concentrates, and fruit purees. The comprehensive product range for commercial processing offers confectionery ingredients under the Braun brand, ingredients for bread and rolls under the Agrano brand, and ingre-dients for ice cream under the Cresco brand. In addition, the group produces premium frozen baked products under the Wolf ButterBack brand. The company has 13 international loca-tions and is represented in all relevant distribution channels with about 5,000 products in over 70 countries.

The purchasing policies of the Martin Braun Group secure transparency in the purchasing process. All suppliers are selected based on defined criteria, and all incoming production mate-rials undergo a careful receiving check. Through its holistic approach to products, the Martin Braun Group ensures a customer-oriented product line of foolproof baked products throughout the entire value creation chain, and in accordance with statutory food safety regulations.

Conditorei Coppenrath & Wiese is the German market leader in frozen gateaux and cakes, which are produced in Mettingen. The baked products produced in Germany are sold nationally and internationally under the corporate brand Conditorei Coppenrath & Wiese as well as other trade brands. The product line of the company includes cream gateaux, baked cakes, sheet cakes, cream rolls and tarts, strudels, mini confectionery, and desserts, as well as frozen rolls and baguettes. The business model follows the creed “We provide the best alternative to home-made” and combines classic baking traditions and confectionery know-how with state-of-the-art manufacturing methods.

At Coppenrath & Wiese the high quality requirements for the baked products and the needs of customers set the standard for raw materials and the service quality of its suppliers. Procurement is implemented close to the market and, through many years of close supplier relationships over short distances, provides efficient solutions to problems, in particular for new raw materials, packaging, and indirect goods.

Beer and Nonalcoholic BeveragesHeadquartered in Frankfurt, the Radeberger Group is Germany’s largest private brewery group and forms the Beer and Nonalcoholic Beverages Division of the Oetker Group. Besides 14 brewing locations, the division includes two sites for production of nonalcoholic beverages in Germany. The Radeberger Group offers a broad spectrum of strong international, national, and regional brands: Besides the Radeberger Pilsner to which it lends its name, this includes well-known and popular brands of beer, such as Jever, Clausthaler, Schöfferhofer Weizen, Allgäuer Büble Bier, Ur-Krostitzer, Stuttgarter Hofbräu, Berliner Pilsner, and Freiberger. In addition to that, there is also the mineral water brand Original Selters and the nonalcoholic


http://www.radeberger-gruppe.de/en/home

Corporate Structure


57

refresher drinks Bionade and Ti. The core sales market is Germany. Apart from Germany, the products are marketed in more than 70 countries. The Radeberger Group is also the exclusive distribution partner for the Guinness and Kilkenny brands from Diageo, and for the Heineken Group’s Mexican beer brand Sol. Since 2015, in the context of a long-term partnership with PepsiCo, the Radeberger Group has been producing and distributing in Germany the Pepsi, Mirinda, 7Up, Schwip Schwap, and Punica apple spritzer brands for the catering market and beverage outlets with no connection to the retail grocery trade.

With its portfolio, the Radeberger Group promotes the diversity of German beer and bever-ages, and continues to actively develop the German market for beer and nonalcoholic beverages with an innovative business model. So as to meet new consumer demands, the brand portfolio is regularly expanded and updated with new products or additions to the existing product line. In addition to its own production and sales locations, long-haul logistics under the umbrella of Getränke Essmann, companies of the wholesale beverage trade (GFGH), and beverage outlets (GAM) under the company name Getränke Hoffmann complete the Beer and Nonalcoholic Beverages Division.

Sparkling Wine, Wine and SpiritsWithin the Oetker Group, the Henkell & Co. Group forms the Sparkling Wine, Wine and Spirits Division, operating its own production and sales locations in 20 countries – primarily in Western and Eastern Europe – and exporting sparkling wine, wine, and spirits to more than 100 nations worldwide. Products are distributed through retail and wholesale outlets as well as the restaurant industry. The group offers all major varieties of sparkling wine from its own production facilities. In Germany, the portfolio includes well-known sparkling wine brands such as Henkell, Fürst von Metternich, and Söhnlein Brillant. The Henkell & Co. Group is represented with three production sites in Germany. The production for all German sparkling wine brands distributed in Germany and abroad is carried out at the original Henkell & Co. plant in Wiesbaden. The production of the spirits produced in Germany is centralized in the Kuemmerling plant in Bodenheim near Mainz, while Schloss Johannis-berger Riesling wines and wine from the G.H. von Mumm’schen Weingut are grown and harvested on the Johannisberg in the Rhine Gorge. In addition, Henkell & Co. operates various other production sites in Europe for sparkling wine, wine, and spirits.

The group also has an international product line with its own champagne and crémant varieties sold under the brands Alfred Gratien and Gratien & Meyer from France, Mionetto prosecco from Italy, and cava from Spain. In addition, there are sparkling wine brands from Hungary, the Czech Republic, Romania, Slovakia, and Ukraine that have been excep-tionally well established for decades. Henkell & Co. is the market leader for premium sparkling wine in Germany, and for sparkling wine in Austria, Hungary, Estonia, the Czech Republic, Slovakia, Ukraine, and Canada. Mionetto is the leading brand of prosecco worldwide.

Besides sparkling wine, renowned national and international wines round off the group’s product line. The German winery Fürst von Metternich-Winneburg’sche Domäne Schloss

henkell-gruppe.de

https://www.henkell-gruppe.com/home.html

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Corporate Structure


Johannisberg represents selected, internationally renowned Riesling wines. With its wineries in the Czech Republic, Slovakia, and Hungary, the group is one of the leading suppliers of quality wine in Central Europe, while the brand i heart WINES is one of the fastest-growing wine brands in England.

The Henkell & Co. Group also represents a broad spectrum of spirits that includes almost all relevant varieties of vodka, as well as “Korn” schnapps, gin, brandy, cream and bitter liqueurs, and aperitifs. In the spirits sector, Henkell & Co. is the market leader for vodka in Germany, gin in Poland, and brandy in Slovakia.

Development efforts are driven by the desires and needs of customers for new product categories and taste experiences, but also by the continuing development of existing brands and products. Across divisions, interdisciplinary teams are working on the continuous development of the brands and the implementation of new product ideas.

ShippingThe Hamburg Süd Group is represented worldwide with around 250 offices, including 100 of its own. With 120 container ships, 48 of which are owned by the group, as of the end of 2016 it is in seventh place among the world’s largest container shipping lines. For decades, it has been one of the leading providers in the north-south trading routes. The internationally active transport logistics organization has 6,300 employees worldwide. Its core business is container shipping; however, the range of services goes far beyond the transport by sea from port to port – the Hamburg Süd Group covers the entire logistics chain from door to door. In addition, the group operates 48 bulk carriers and eight product tankers. Outstanding logistics processes are the basis for the market reputation of Hamburg Süd as a quality carrier. The shipping group strives to provide the best possible solution for any logistical challenge, and to respond to customer requirements with flexibility.

In the container liner services that operate along fixed routes and on a fixed schedule, the shipping company is represented by the German carrier Hamburg Süd and the Brazilian shipping company Aliança. They are both among the leading shipping companies in the traditionally significant South American business. Aliança is the clear market leader in the cabotage traffic along the Brazilian coastline. In the traffic from and to the west coast of South America, the group also operates under the name Compañía Chilena de Navegación Interoceánica S.A. (CCNI). The business of this shipping company was acquired in 2015. Since the beginning of 2015, Hamburg Süd has also been represented in the east-west trade from Asia to Europe and North America, thus providing its customers with a global network. In 2016, the approximately 50 liner services of the Hamburg Süd Group operated about 120 container ships and a pool of about 583,000 containers.

In order to guarantee high logistical quality and optimal transport conditions, the container ships used are optimally configured for their respective operating areas. Besides standard 20 and 40-foot containers, special containers are used to meet the various requirements of

hamburgsud.com

https://hamburgsud.com/group/en/corporatehome/index.html

Corporate Structure


59

certain raw materials, semi-finished and finished products, industrial goods, and natural products. This is especially applicable in the refrigeration sector, where innovative refrigerated container technologies preserve the quality of fruit, meat, fish, vegetables, dairy products, and other perishable goods. The transport of fresh products is one of the core competences of Hamburg Süd, which is one of the five largest container carriers in the world.

In contrast to liner shipping, tramp activities have no fixed schedules and routes. In this sector, the group is present on the world’s oceans with about 60 ships in bulk cargo and product tanker shipping, operating under the names Rudolf A. Oetker (RAO), Furness Withy Chartering, and Aliança Bulk (Aliabulk). When and where ships are loaded, and their destinations, depends entirely on customers and their cargo. Bulk ships transport dry materials such as fertilizer, grain, or coal. Also part of the group’s scope of services are prod-uct tankers, which transport liquid bulk goods such as diesel oil and aviation fuel, but also molasses, plant oils, and light chemicals.

Columbus Shipmanagement GmbH (CSG) is responsible for the technical administration of the group’s own liner ships, and manages the seagoing personnel. It also manages new construction and conversions of ships for the entire Hamburg Süd Group. Furthermore, the group holds shares in a terminal in Brazil, and operates its own container depots and trans-port companies, especially in South America. The Hamburg Süd travel agency, a specialist provider for business travel, cruises, and other tourism products, completes the range of services in the Shipping Division.

From its beginnings in the classic north-south trading routes, Hamburg Süd container shipping has evolved into an internationally active provider of logistics services on various routes between Europe, South and North America, the Caribbean, Mexico, Asia, India, Australia, and New Zealand.

Other InterestsThe Other Interests Division includes Oetker Group companies from various sectors, such as the chemical specialist Budenheim, the Oetker Collection, OEDIV Oetker Daten- und Informations verarbeitung, Handelsgesellschaft Sparrenberg (HGS), and Roland Transport.

The long-established company Budenheim has evolved into an internationally leading manu-facturer of customized high-quality phosphates and other special chemicals. Via direct sales and distributors, the products are marketed in more than 100 countries, and used, among other things, for food, pharmaceutical products, and special technical applications. In the three business units of food ingredients (including seafood), performance materials (including acid), and material ingredients (including wildfire), Budenheim is one of the leading special chemical companies in the respective markets and has its origins in the eponymous munici-pality in Rheinhessen, which is also the location of one of the company’s worldwide produc-tion sites. In addition, Budenheim carries out production in the US, Mexico, Spain, and Chi-na. With its network of production and sales locations, e.g. in Singapore, India, and South


https://www.budenheim.com/en/

https://www.oetkercollection.com/eng/home/

https://www.oediv.de/en/

http://www.roland-transport.de/en/home/

60

Corporate Structure


America, as well as numerous trade partners, the company is present in its customers’ mar-kets. The base material for Budenheim’s range of phosphate products is extremely pure phosphoric acid, which is procured via a joint venture based in Morocco.

The Oetker Collection represents a unique collection of international grand hotels. It includes four group-owned luxury-class hotels in Germany and France. In addition, the Oetker Collection manages five unique, externally owned grand hotels at various locations across the globe. The hotels of the Oetker Collection, including their marketing activities and sales processes, are coordinated by the Oetker Hotel Management Company (OHMC). This enables coordinated and efficient marketing. Cooperation with the leading travel agents in the core markets, intensive support for the hotels from the international network of PR agencies, and the close cooperation between the hotels to jointly promote the individual operations of the Oetker Collection remain essential to sales success.

OEDIV Oetker Daten- und Informations verarbeitung operates the data centers of the Oetker Group as well as numerous IT systems for external companies. The focus includes appli-cations by SAP and Microsoft, as well as corresponding solutions for the visualizing of in-tegrated process chains. In the course of continuous development of the SAP and Microsoft product range towards cloud-based solutions, OEDIV is also expanding its expertise to these operating models. The services provided by OEDIV through its data centers are delivered according to the highest quality standards. Due to the extremely process-critical nature of the systems operated by OEDIV, the systems and architectures deployed must meet customers’ exacting availability requirements. To secure its services, OEDIV operates two data centers, so that in case of a catastrophic failure systems will either remain available or come back online in the shortest possible timeframe. In addition, up-to-date security systems and infra-structures guarantee the best possible protection of data.

As a specialized information and procurement services provider, Handelsgesellschaft Sparrenberg (HGS) pools procurement expertise from across the Oetker Group, and supports the group and external customers in the development of new strategic perspectives. HGS has many years of experience in the analysis and use of European procurement markets, the research, processing, and interpretation of market and price data, and the derivation of possible future developments.

As an independent and service-oriented 4PL partner (4PL – fourth-party logistics), the company Roland Transport provides comprehensive logistics services for small and medium- sized enterprises. The company acts as a 4PL service provider that is always neutral and without assets of its own, and optimizes the various services offered in a total package.

Corporate Structure


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BankBankhaus Lampe and its subsidiaries form the Bank Division, and are regarded as being among the leading independent and general partner-managed private banks in Germany. The bank’s business activities are focused on consultation and support for its three target customer groups: high net worth individuals, companies, and institutional clients. It is included at equity in the consolidated financial statements. Additional information is available in the bank’s separate annual report.

bankhaus-lampe.de

62

Corporate Structure


The Oetker Group is one of Germany’s major family businesses. To this day, the owner family exerts considerable influence on the group’s strategy and business policy. The values, which are solidified in more than 125 years of corporate history and place the human being at the center of all action, are still embodied by the members of the highest executive body, the group management, are being upheld by group companies, and are being actively transferred into the increasingly digitalized future.

The management structure ensures that decisions are made locally, close to the market, and based on the needs of the line of business concerned, while resources are pooled centrally at the same time.

The management level consists of the stockholders, the advisory board, group management, and the executive boards of the individual companies.

The advisory board of Dr. August Oetker KG, which, based on the articles of incorporation, is made up of stockholders and a majority of individuals from outside the stockholder families, remained unchanged during the 2016 financial year.

The members of the advisory board representing the stockholders are now Dr. h. c. August Oetker (chairman), Dr. Alfred Oetker, and Rudolf Louis Schweizer. The external members are Dr. Christoph v. Grolman, Dr. Andreas Jacobs, Hans-Otto Schrader, and Carsten Spohr.

Management Structure

Corporate Structure


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Stockholders

Advisory BoardDr. h. c. August OetkerChairman of the Advisory Board and stockholder of Dr. August Oetker KG.

Dr. Alfred OetkerStockholder of Dr. August Oetker KG and Deputy to the Chairman of the Advisory Board,

Dr. h. c. August Oetker.

Dr. Christoph v. GrolmanChief Executive Officer of TBG AG.

Dr. Andreas JacobsMember of the Administrative Board of Jacobs Holding AG and Chairman

of INSEAD – the Business School for the World.

Hans-Otto SchraderChairman of the Executive Board of the Otto Group, until February 28, 2017.

Since March 1, 2017, Member of the Supervisory Board of the Otto Group.

Rudolf Louis SchweizerStockholder of Dr. August Oetker KG.

Carsten Spohr Chairman of the Executive Board of Deutsche Lufthansa AG.

Group ManagementRichard OetkerGeneral Partner of Dr. August Oetker KG and Head of Food; Sparkling Wine, Wine and Spirits

(until December 31, 2016). Chairman of the Executive Board of Dr. Oetker GmbH.

Dr. Albert ChristmannGeneral Partner of Dr. August Oetker KG and Head of Food; Sparkling Wine, Wine and Spirits

(since January 1, 2017), as well as Other Interests, Bank, Finance, Controlling, Legal, and Taxes.

Dr. Ottmar GastGeneral Partner of Dr. August Oetker KG, Speaker of the Executive Board of Hamburg Südamerikanische

Dampfschifffahrts-Gesellschaft KG (Hamburg Süd) and Head of Shipping.

Dr. Niels LorenzSpeaker of the Executive Board of Radeberger Gruppe KG, and Head of Beer and Nonalcoholic Beverages.

Executive Boards of the Group Companies

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Corporate Structure


Group Management

The members of the group management (from left to right): Dr. Albert Christmann (Food; Sparkling Wine, Wine and Spirits since January 1, 2017; Other Interests, Bank, Finance, Controlling, Legal, and Taxes), Dr. Ottmar Gast (Shipping), Richard Oetker (Food; Sparkling Wine, Wine and Spirits until December 31, 2016); Dr. Niels Lorenz (Beer and Nonalcoholic Beverages).

Corporate Structure


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Economic Framework


Macroeconomic conditionsThe global economy grew by 3.1% in 2016. The advanced economies continued their moderate growth. In the emerging nations, after a weak start to 2016, the economic climate improved, resulting in overall growth of the economy by the end of the year. The volume of global trade increased by 1.8% versus the previous year. The decrease of elasticity in global trade in regard to global production is based primarily on structural issues, such as the increasing weight in the global economy of nations with low trade intensity, and a slowing down of the trend towards further division of global value creation chains.

The economy of the European Union continued its moderate expansion. As in the previous year, economic growth was up 1.8%. Favorable financing conditions and an improved job market were essential drivers for this overall positive development. The economic trend in the European Union presents a heterogeneous picture in the reporting year. While the econo-mies of Spain and Ireland showed a continuing upswing with significant growth rates, de-velopments in France and Italy were only slightly positive. Following the vote to exit the European Union, the economy of the United Kingdom has so far remained surprisingly robust. In the short term, the negative impact of the Brexit vote has been lower than expected. The German gross domestic product increased by 1.8%. This expansion was primarily sup-ported by domestic economic stimuli. Private consumption benefited from the favorable job market situation. The framework conditions for corporate investments also continued to provide a stimulus, even though the upturn in investments was interrupted during the summer months. This was caused mainly by insecurities in the international environment, for example, the Brexit vote and the US presidential election. Eastern Europe remains in recession, the main cause of which is the negative economic development of Russia.

The US economy achieved growth of 1.6%. The reticent expansion in the first half of the year was followed by an economic revival, triggered primarily by the turnaround in inventory investments during the third quarter. Private consumption continued to expand signifi-cantly, remaining an essential pillar of the United States’ economy. Corporate investments, on the other hand, decreased. In South America, the picture varied. While the economies of Mexico and the Andean states achieved significant growth, Brazil, Argentina, and Venezuela remained in recession. In Brazil, the mood of consumers and corporations has improved since the impeachment of the nation’s president; however, the gross domestic product contin-ued to decrease throughout the year, in particular due to the decline in industrial production.

Economic Framework

Economic Framework


67

Growth in the Asian region can be attributed mainly to the developments in India and China. In China, however, economic growth is slowing down. The continuing structural change towards an economy that is driven more by consumption and the domestic market has so far led to a consistent decline in the rate of economic growth. The stability of the Chinese economy was achieved in part by economic programs, which, in view of a lack of structural reforms, have slowed the country’s progress.

The prices of industrial materials, which around springtime, in unison with the oil price, recovered from the record lows at the beginning of the year, also increased significantly in November. Oil prices had also risen steeply towards the end of November and beginning of December, after OPEC agreed on country-specific output quotas with which to implement the reduction of output that had already been announced at the end of September. In addition, the announcement of production shortages also supported the increase in oil prices in important non-OPEC oil-producing countries, especially Russia.

Consumer prices in the eurozone increased only marginally in comparison to the previous year, and are thus situated far below the inflation target of 2% established by the European Central Bank. Monetary policy in the major advanced economies continues to differ widely. While the US Federal Reserve implemented its second interest rate increase in December, Europe and Japan are continuing their low interest rate policies. The different prospects for the economy and monetary policy are reflected in the appreciation of the US dollar. In the fi-nal weeks of 2016, due to the expectation that the change of government in the United States would increase the economic gap and international interest rate differences, there was renewed appreciation of the US dollar against other currencies, in particular the Japanese yen. On the balance sheet date, the euro closed at 1.0541 US dollars, recording a depreciation of 3.2% versus the previous year.

The development of the currencies important to the Oetker Group against the euro are shown in the following table.

CLOSING AND AVERAGE RATEAGAINST THE EURO

Closing rate December 31, 2015

Closing rate December 31, 2016

Average rate 2015

Average rate 2016

Australian dollar 1.4897 1.4596 1.4837 1.4852

Brazilian real 4.3117 3.4305 3.7426 3.8193

British pound 0.7340 0.8562 0.7242 0.8227

Canadian dollar 1.5116 1.4188 1.4251 1.4589

US dollar 1.0887 1.0541 1.1046 1.1032

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Economic Framework


Division-related conditionsFood; Beer and Nonalcoholic Beverages; Sparkling Wine, Wine and SpiritsThe FMCG markets (fast-moving consumer goods) and in particular the European food markets again achieved only moderate growth in 2016. In view of the economic and political challenges in Europe, consumer confidence is somewhat dampened. This led to reserved consumer behavior in certain countries. Furthermore, the framework conditions for FMCG companies are marked by a progressive rate of concentration in international trade, and an associated continued increase in its purchasing power. Especially in Europe, the relevance of trademarks and discount concepts that are supported by the increased price sensitivity of consumers has grown. The competition across all of Dr. Oetker’s product lines and country markets remains intense.

The beer market was also marked by intense competition. This was heightened by price wars and condition demands in the trade. The resulting impact on value creation and continuously rising costs have led to increased consolidation pressure. In addition, demographic change and changes in consumer behavior are affecting the beer market. In 2016, the beer market overall showed a slight positive development. The domestic business benefited from the UEFA European Championship, the main European soccer tournament, and a warm spring. However, a rainy July resulted in the sector losing sales. Besides overall inclement weather, the fear of terror attacks at large events led to a slowdown of sales in the trade as well as in the excursion, event, and festival industries. The growth in beer exports continued throughout 2016 and is driven mainly by the export of cheap beer to China.

Germany is the largest market for sparkling wines. However, the huge variety of products resulted in a low level of prices versus the international standard, as well as intense predatory competition. While the domestic market for sparkling wine was stagnant, on the interna-tional level North and South America, the United Kingdom, Northern and Eastern Europe, and Asia have emerged as growing markets for sparkling wine. Prosecco continues its positive development, mainly in the United States, the United Kingdom, and Northern Europe. In regard to vodka, rum, and – for the first time in years – brandy, the market for spirits was moderately positive.

ShippingShipping continues to navigate a very difficult market environment. With an increase of 1.8%, global container transport showed low growth as compared to the development of the global economy. For several years the global economy and trade have been developing at an only moderate rate, and economic growth has not been reflected in cargo growth. Global shipping capacity, however, has continued to increase, with deliveries of new ships far exceeding the scrapping of old ships. As a result, there are significant overcapacities in almost every shipping segment, especially in bulk goods and container liner shipping. Following significant growth in the previous year (+ 8.6%), fleet capacity in 2016 increased by only 1.6%. This is approximately equal to the global growth in cargo. In certain shipping areas, at least, there was a bottom formation of freight rates, caused, among other things, by a con-scious reduction in deployed capacities. However, a reduction of overcapacities will not be

Economic Framework


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possible in the short term, and may still take years. For this reason, the industry has initiated a process of consolidation, with the objective of achieving a more favorable cost position through larger business units and global alliances.

Chemicals2016 was fair to middling for the chemical industry in Germany, and altogether unsatisfactory. With prices decreasing and production increasing only slightly (+ 0.5%), the industry’s sales revenue fell by 3%. The decrease in sales revenue was higher domestically than abroad. Due to competition, the area of special chemicals has come under pressure in terms of both pricing and volume. The weak demand for fertilizer in the agricultural sector had an indirect impact on industrial phosphates.

HotelsThe European hotel industry suffered from the general economic conditions in the eurozone and the effects of the terror attacks. The refugee crisis and political insecurities related to, for example, the Brexit vote and the crises in Ukraine and Syria also had an adverse effect on international tourism. For specific regions of Europe, e.g. France, temporary travel advisories were issued. Several locations outside of Europe, which are regarded as secure and stable, may in turn profit from these developments.

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Business Development


2014 2015 2016 %2

in % in % in %


Food 2,621 24.6 2,990 25.0 3,071 26.2 2.7



Shipping 5,186 48.7 6,057 50.7 5,624 48.1 – 7.2

Other Interests 500 4.7 524 4.4 606 5.2 15.8


(IN EUR MILLION) 10,646 100.0 11,949 100.0 11,704 100.0 – 2.1

Germany 3,512 33.0 3,733 31.2 3,894 33.3 4.3

Rest of the EU 2,523 23.7 2,764 23.1 2,663 22.8 – 3.6

Rest of Europe 555 5.2 577 4.8 580 5.0 0.4

Rest of the world 4,057 38.1 4,875 40.8 4,567 39.0 – 6.3


Food 132 19.7 153 20.7 182 45.1 19.1



Shipping 348 52.2 437 59.0 77 18.9 – 82.5

Other Interests 50 7.5 38 5.2 48 11.9 25.2


Food 12,790 45.1 14,478 47.0 15,368 47.9 6.1



Shipping 5,360 18.9 5,960 19.4 6,300 19.6 5.7

Other Interests 2,440 8.6 2,482 8.1 2,503 7.8 0.8




With the exception of the Hamburg Süd Group and the Oetker Collection, development of the Oetker Group in the reporting year was satisfactory. It achieved sales revenue in the amount of EUR 11,704 million, which is 2.1% below the previous year’s figure (EUR 11,949 million). The decrease in sales, in the amount of EUR 367 million, was related to operations, attribut-able mainly to the difficult market conditions in shipping. Lower freight rates as a result of continuing overcapacities led to sales revenue losses in the Hamburg Süd Group, which could not be recouped by sales revenue increases in the other divisions. In addition, the devel-opment of currency exchange rates had a negative effect in the amount of EUR 84 million,

Business DevelopmentOetker Group



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above all due to the depreciation of the British pound, the Mexican peso, and the Turkish lira against the euro. Changes in the scope of consolidation resulted in an overall increase in revenue in the amount of EUR 138 million.

Furthermore, the change in the definition of sales revenue in the German Accounting Directive Implementation Act (BilRUG) had a positive impact, as shown by the sales revenue change in the Other Interests Division. On a comparable basis, the previous year’s sales revenue of this division was EUR 591 million.

From a regional perspective, the group-wide domestic sales revenue increased by 4.3%, to EUR 3,894 million. Internationally, the Oetker Group was not able to achieve any growth. As a result, the share of sales revenue achieved outside of Germany has decreased from 68.8% in the previous year to 66.7% in the reporting year. Again, this can be attributed mainly to developments in the Shipping Division.

The investment volume (without first-time consolidation) of the Oetker Group in the amount of EUR 405 million was significantly lower than the previous year’s high level of EUR 740 million. At 45.1%, the largest proportion of investment was in the Food Divi-sion. In this division, expenditures once again increased versus the previous year, totaling EUR 182 million in 2016, while expenditures in Shipping amounted to only EUR 77 million (previous year: EUR 437 million). Based on the weak growth in cargo, no additional ships were ordered, and investment in containers was also significantly reduced.

The number of employees increased by 4.2% in 2016, to 32,078 employees worldwide. Approximately half of these can be attributed to the Food Division, which counted an aver-age of 6.1% more employees versus the previous year. This was caused mainly by taking the Coppenrath & Wiese employees into account for the full year, while the deconsolidation of the FrischeParadies Group had the opposite effect. Altogether, the Oetker Group had 18,029 employees in Germany and 14,049 employees abroad.

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Business processesIn the 2016 financial year, in the area of procurement Dr. Oetker placed its focus on the sustainable development of supply chains in regard to the raw materials cocoa, palm oil, meat, and fish. Regarding cocoa, in the future any products manufactured or commercially pur-chased by Dr. Oetker will use only sustainably cultivated and correspondingly certified cocoa. In Germany, this transition should be complete by the end of 2017, and worldwide by the end of 2020. Furthermore, the decision was made to no longer use palm oil worldwide by the end of 2018. Should this prove impossible for sensory reasons, then by the end of 2020 any palm oil used must at minimum comply with the RSPO standard “Segregated” (Roundtable on Sustainable Palm Oil, abbr.: RSPO). In the past financial year Dr. Oetker also developed a concept targeted at the continued improvement of animal welfare in the production of raw materials, as well as the improvement of transparency and reduction of complexity within supply chains. An essential part of these measures is reducing the geo-graphic distance covered by the supply chain in the procurement of meat. Continuing its support for a sustainable fishing industry, since 2016 Dr. Oetker has been working closely with the Marine Stewardship Council (MSC) and the Aquaculture Stewardship Council (ASC) to strengthen the use of raw materials from fisheries that are certified according to the strict criteria of the MSC and / or ASC in its products in the future.

In the ambient food and pizza production locations, areas have been set up for gluten-free production. In connection with the expansion of production capacity in Poland, new con-struction of a freezer warehouse commenced in 2016. Dr. Oetker opened a new plant in Serbia, which was inaugurated in 2016.

On the sales side, Dr. Oetker has implemented international projects targeted at the perma-nent improvement of trade and sales processes (customer management), and at IT-related topics in the area of customer relations management and trade marketing. In the marketing area, Italy was able to use rack jobbing, in which areas at the points of sale are rented to promote sales, to expand distribution, and to increase product rotation. The Tradizionale pizza line was also completely revamped, and the Dr. Oetker Professional product range was expanded with new frozen desserts.

In the research and development area, efforts have been very much focused on reducing the sugar and salt content of products, and on the optimization of raw materials with respect to sustainability. Another priority was the development of gluten-free ambient food and frozen food products. Furthermore, numerous new products were launched in the 2016 financial year. In Germany, for example, these included Vitalis Knusperpop Müsli with popcorn, ready-made Paula Fleckenkuchen, a vegetarian gelling agent, fruit fillings for baking, baking mixes for sheet cakes and cupcakes, and various pizza products, such as the Pizzaburger Hot Dog. In Poland, the successful Guseppe line of pizzas was expanded with new inter-national styles, and in the United Kingdom a sweet pizza variety was developed under the Chicago Town brand.

General information on the division can be found on page 55.

Gluten-free ambient food and pizza production

Food



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Martin Braun placed the priority in 2016 on optimal support for sales activities. Fostered by market conditions, speed and comprehensive service are of enormous importance, especially in the area of industrial and wholesale customers. Accordingly, products have been developed for this purpose, and the presence of developers at customer sites has been expanded. Furthermore, customized solutions have been implemented in response to cus-tomer requests in the area of sustainable product development. For example, regarding the transition to palm oil-free products. Besides the ongoing development of existing products, numerous new products were launched to market, for example: vegan ready-made dough, vegan mousse au chocolat, muffin mix for baked products with a long shelf life, and cake mix without E numbers and a long shelf life.

Wolf ButterBack has put a new social building into operation. Furthermore, planning was concluded for plant no. 3 and the logistics center, and construction of the logistics building has commenced. In various plants of the group, investments were made into capacity expansion, quality assurance, and energy savings.

In the 2016 financial year, Conditorei Coppenrath & Wiese focused on the improvement of production workflows. In addition, preparations were made for the participation in AmazonFresh – an online grocery delivery service. In the United Kingdom, the company entered the refrigerated baked products market. In Italy, Spain, and Belgium, frozen bakery products were expanded with the “My Sweet Deli” product range. The company also began construction on a new administration building in Mettingen, scheduled for completion in mid-2017.

Business development

KEY FIGURES 2015 2016

Sales revenue (in EUR million) 2,990 3,071

Adjusted sales revenue (in EUR million) 3,044 3,128

Investments (in EUR million) 153 182

Employees 14,478 15,368

The Food Division achieved overall sales revenue in the amount of EUR 3,071 million, a growth of 2.7% in the 2016 reporting year. Adjusted for the scope of consolidation and ex-change rate effects, sales revenue grew by 2.8%. Investments amounted to EUR 182 million (previous year: EUR 153 million). Partially related to acquisitions, the number of employees in the reporting period increased by 6.1%, to 15,368 employees.

Customized solutions for sustainable products

EUR 182million of investment

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The Dr. Oetker national companies were able to increase their sales revenue by 0.9%. How-ever, adjusted for acquisitions and the exchange rate effects, sales revenue increased by 2.5%. Although the development of the Dr. Oetker national companies varied, the overall development of sales was once again positive. In the saturated markets of Europe and the Americas, the planned growth rates could not be achieved. Besides negative exchange rate effects, above all due to the depreciation of the British pound, the Mexican peso, and the Turkish lira against the euro, this was caused by weaker market development and the loss of market share in several countries. In addition, business development was impacted by increased competition from private label products and a higher share of sales campaigns. On the other hand, it was especially pleasing that Dr. Oetker was able to achieve above-average growth, particularly in the 3A region (Asia, Africa, and Australia) and in Eastern Europe. At a total of EUR 139 million, investments surpassed the already high level of the previous year. The focus was on expanding pizza production capacities in Europe and North America, and on the new construction of the research and development center at the Bielefeld location.

From the perspective of strategic product ranges, frozen pizza was, as planned, the leading area of sales revenue for Dr. Oetker. This development was based mainly on the growth in Eastern Europe, and here in particular on the expansion of the product line with the Guseppe pizza in Poland. In addition, the double-digit growth of frozen pizza in the 3A region provided positive support for the development of the product range. However, the change in North American frozen food sales had a dampening effect. On the one hand, business development was impacted by the declining Canadian market, while on the other hand, the transfer of the McCain sub-brands to Dr. Oetker resulted in a temporary loss in market share. Growth drivers in the equally lucrative ambient food area were once again the Dr. Oetker India product range, as well as baked products and powdered desserts, which were also able to achieve an increase in sales through the previous year’s acquisitions of D’Gari in Mexico and Queen in Australia. The range of fresh desserts in Western Europe was in slight decline. As a brand concept, Dr. Oetker Professional is targeted towards the needs and requirements of professional consumers in the out-of-home market, and was able to achieve international growth. This was facilitated by the business in Western Europe and Canada, among other factors.

In the 2016 financial year, the Martin Braun Group achieved a sales increase of 7.1%, thus surpassing its forecast from the previous year. Almost all country units and product ranges played a part in this. The positive development in revenue was also driven by acquisition effects. An essential cornerstone of business development was the internationalization across all four product ranges, and the simultaneous expansion of the core markets in Germany and Switzerland. Even though the number of craft bakeries in the German market is de-creasing, and the sales market for baking ingredients, the traditional segment of the Martin Braun Group, is shrinking, the group once again managed to surpass the previous year’s level. Due to the adjustments to product ranges and thanks to the frozen goods strategy, Martin Braun is successfully navigating the structural change in the German core market. As a result of the economic and political difficulties with and around Russia, positive sales impulses were somewhat weakened. Also worthy of special mention is the acquisition in

Region 3A and Eastern Europe: above-average growth

7.1% revenue increase



75

Turkey, as of October 1, 2016, of the majority in Polen Gida. Polen Gida is the leader in the Turkish market for baking ingredients. With this acquisition, the Martin Braun Group has secured an important partner for the continued development of the Turkish market, while at the same time expanding the product range.

Conditorei Coppenrath & Wiese was able to continue increasing sales revenue in 2016, achieving a positive development throughout the entire division. The decline of the German trade label business was offset in particular by a strong development of the strategic product groups breakfast, sheet cakes, and desserts in the branded business.

ForecastFor the financial year 2017, Dr. Oetker expects a moderate increase in sales revenue. Planned growth is based mainly on the ambient food and frozen pizza product ranges. Both price and volume effects will contribute to this. Significant currency effects are not expected.

In the context of its strategic measures, the Martin Braun Group will in the future continue to focus on the balance between core and emerging markets, and on the structure of its product range. For example, the organic product segment will be expanded further. At the same time, the group intends to expand the internationalization of the frozen food growth segment into additional European markets. The baking ingredients business segment is also slated for significant expansion. This includes a focus on the successful integration of Polen Gida. For the 2017 financial year, overall the group expects a significant revenue increase.

With challenging economic conditions continuing, Conditorei Coppenrath & Wiese expects a moderate increase in sales revenue in 2017. The group will continue the implementation of its internationalization concept, and is planning a significant expansion of capacities.

Implementation of the internationalization concept

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Business processesIn the 2016 financial year, the Radeberger Group implemented various production and tech-nical measures at its locations. In Krostitz, a new grain storage silo is providing more flexibility in feed-related time management. Also, a warm water tank was installed, with its additional heat storage capacity now contributing to a more efficient use of heating at the location. At the Berlin location, new palletizers and depalletizers were installed in both re-usable bottling systems, including a new control system and correspondingly sized pallet conveyors. At the Leipzig location, the reusable bottling system was technically optimized, and the performance of the system was increased. In the area of filtration, a big-bag system was put into operation for the supply of kieselguhr (diatomaceous earth). In the course of this, the filtration was also equipped with a fully automatic process control. At the Frankfurt am Main location, the technical elements in the chemical storage for the supply of bottling were replaced in the course of new construction measures. In addition, a new vapor con-denser was installed in the brewhouse. In the bottling and logistics areas, all medium and low-voltage systems were brought up to the state of the art. In Löhnberg, the bottling systems were optimized further – with the goal of continuing to increase their utilization levels. At Getränke Essmann, the service offering of sorting bottles was expanded further.

Following the introduction of the warehouse management system in Bischofsheim and Frankfurt am Main, all relevant production sites of the Radeberger Group are now equipped with an inventory system for full and empty bottles. The prerequisites for continued pro-cess improvements are therefore now in place at all locations.

The negotiations regarding the sorting and repacking systems at the Berlin, Marktoberdorf, Nuremberg, and Leipzig locations have been brought to a successful conclusion. With the commissioning of these modern systems, the bottling systems at the aforementioned locations can now be cost-effectively supplied with precisely sorted empty bottles. In addition, the small pack units that are becoming more and more popular with consumers can be produced in greater variety while maintaining competitive cost structures.

Furthermore, in December 2016 the project “Optimization of the Radeberger Group Forklift Pool” was successfully completed. The acquisition and maintenance concept for the entire forklift pool of the Radeberger Group provides for the transition from combustion engine forklifts to only five types of electrical forklifts, a reduction of pollutants and noise emissions, and an improvement of safety equipment and workplace ergonomics, all by the year 2019.

In 2016, the main focus of development activities in the Radeberger Group was once again on the development of new beverage products. For example, in the strongly growing market for naturally cloudy shandy, the portfolios of the Stuttgarter Hofbräu and Freiberger Brauhaus brands were each expanded with a corresponding product. Also, a nonalcoholic wheat beer in a swing stopper bottle was developed under the brand umbrella of Allgäuer Büble Bier. In addition to the development of new products, extensive development work was performed to implement improvements in existing products and processes.

Inventory system for full and empty bottles





77



Sales revenue including excise taxes (in EUR million)1 1,966 1,988




Employees 5,894 5,986

1 Beer tax and other excise taxes.

In an always challenging environment, the Radeberger Group has acquitted itself very well. The market was characterized primarily by an increase in sales campaigns, a decrease in campaign prices, and condition demands by retailers, as well as cutthroat competition due to a slight decline in domestic sales. The group was able to slightly increase its sales revenue, and, in spite of returning distribution rights for the international brand Corona Extra to the trademark owner, was also able to maintain almost stable beverage sales. In the 2016 financial year, group-wide sales revenue was at EUR 1,901 million. As compared to the previous year, which was adjusted for the balancing of excise taxes in accordance with the German Accounting Directive Implementation Act (BilRUG), revenue increased by 1.2%. Investments amounted to EUR 84 million. Mainly due to the insourcing of empty bottle sorting, the number of employees increased by 1.5%, to a total of 5,986 employees.

The development of the strong regional brands in the portfolio of the group, above all Allgäuer Büble Bier and Ur-Krostitzer, is especially pleasing. In 2016, while Ur-Krostitzer again increased sales revenue in the double digits, making it the fastest-growing brand of pilsner in the German beer market for quite some time, Allgäuer Büble Bier, the ambassador from the Allgäu Alps, was also able to again score a double-digit increase in sales revenue, especially in metropolitan areas.

On the other hand, the national brands in the Radeberger Group portfolio, e.g. Radeberger Pilsner, Jever, and Schöfferhofer Weizen, were under pressure in the trade, due to their value- oriented positioning and the generally apparent trend towards regional brands. Sales in the segment declined slightly. Schöfferhofer Weizen, the group’s national wheat beer, was able to benefit from its strong range of mixes. The increase in sales was therefore driven mainly by the extremely positive development of Schöfferhofer Grapefruit and Schöfferhofer Grapefruit Alkoholfrei. In the continuously growing segment of nonalcoholic beer, Jever Fun acquitted itself very well.

The international brands of the Radeberger Group, especially Guinness, Kilkenny, Stowford, and Estrella Damm, also showed positive development and a significant increase in sales revenue. The original Mexican Sol is another strong and popular brand that has been comple-menting the portfolio of the Radeberger Group since the beginning of 2016, and has now taken its first important steps in the German market. The flavored beer Captain Morgan

Allgäuer Büble Bier and Ur-Krostitzer: strongest-growing brands in 2016

78



Mutineer, another innovative international brand that will open up new target groups, joined the group’s portfolio at the end of the year.

In the export business, the Radeberger Group proved its consistency: True to its principles, it is also implementing a value creation strategy in the Chinese market, and has therefore let go of low-margin sales. This decision in China has of course impacted the sales statistics, resulting in a slight decline in export sales revenue after years of growth.

The nonalcoholic beverages of the Radeberger Group all developed successfully, above all Original Selters mineral water, the brand range of the cooperation partner PepsiCo, and the refreshing organic tea Ti. Bionade continued to acquit itself respectably well in a highly competitive lemonade and refreshment drink market that is characterized by numerous new product launches.

ForecastFor the year 2017, the Radeberger Group, in a continuously competitive and challenging market environment, expects overall sales revenue to remain at the level of the past reporting year. This forecast is especially applicable with a view to the ongoing reduction of the product range in the market. The national and regional brands continue to be bolstered by comprehensive packages of measures. With its nonalcoholic beverages, the Radeberger Group will continue to expand its existing strong market position. Innovative new products such as Bionade Black Currant & Rosemary and Ti Rooibos Tea & Peach, as well as newly launched products in the nonalcoholic beer segment, e.g. Stuttgarter Hofbräu Helles or Allgäuer Büble Edelweißbier, will contribute to this.

2017: innovative new products



79

Business processesIn the 2016 financial year, the organization was restructured in the area of procurement. A supply chain management system was introduced along the entire supply chain, connecting it with the functional departments of materials purchasing, raw materials purchasing, production planning, and logistics. The constantly growing complexity of the business is re-flected by a segmentation of the portfolio into core products, niche products, and innova-tions. In addition, the previously partially analog supply chain management system was tran-sitioned to an SAP-supported operational planning system. Apart from development on the systems side, the group continues to integrate its platforms across the national borders of the group companies.

In production, the overall efficiency of the system was increased. At the Wiesbaden location, the most varied bottle shapes can now be processed without any mechanical retrofitting required. New maintenance software operates the systems at their optimum, thus minimizing maintenance requirements and maximizing system availability.

The continued expansion of the international brands Henkell and Mionetto prosecco also presents the Henkell & Co. Group with new logistical challenges. Merchandise hubs have been set up within the group to supply the brands to the group companies.

The continued growth of Mionetto and prosecco is being addressed with the expansion of the location in Valdobbiadene (Italy). In the heart of the prosecco region, at the historical headquarters of Mionetto, a modern winery is being constructed, organically integrated with the landscape and the appearance of the town.

Furthermore, the production of sparkling wine using the traditional bottle fermentation process is being expanded at the Wiesbaden location. This is emphasized by the new sparkling wine manufactory, which will allow visitors to the company to fully experience the fascination of producing sparkling wine from spring 2017.

In the context of the digital strategy, an interdepartmental digital team was created with a focus on digital media and platforms, especially social media and e-commerce. As a result, a significantly stronger network of all marketing, sales, and PR activities with all relevant digital touchpoints was developed. Its objective is both qualitative development and the de-velopment of online communications as long-range media. Step by step, the company is adjusting to digitalization, and making it usable for the future success of the company.

Spring 2017: new sparkling wine manufactoryin Wiesbaden



80





Sales revenue including excise taxes (in EUR million)1 689 691

Sales revenue (in EUR million) 501 502

Adjusted sales revenue (in EUR million) 501 508



1 Sparkling wine and brandy tax.

The group recorded slight growth in 2016, increasing its sales revenue, including excise taxes, to EUR 691 million (previous year: EUR 689 million). While nominal growth was at 0.3%, organic growth reached 1.6%. Therefore, adjusted for acquisition and exchange rate effects, sales revenue increased to EUR 508 million. Domestic sales revenue (including excise taxes) reached EUR 277 million (previous year: EUR 284 million), while international sales revenue reached EUR 414 million (previous year: EUR 405 million). In the continu-ously competitive domestic business, the core brand business was successfully expanded; sales revenue in the premium sparkling wine market increased by 5.8%. Due to a decline in the trade label business, domestic business overall remained below the level of the previous year. Internationally, Henkell & Co. Global and the United States were growth drivers; however, the Western and Eastern European regions also contributed to growth.

Investments by the Henkell & Co. Group totaled EUR 14 million, as compared to EUR 15 million in the previous year. Against the backdrop of an ongoing worldwide prosecco boom, the main focus of investment was on the expansion of the Mionetto location in Italy. Added to this were investments in vineyards in the Czech Republic and Hungary as a qualitative and quantitative safeguard of domestic wine and sparkling wine production, and the construc-tion of a sparkling wine manufactory at the company headquarters in Wiesbaden. In the reporting period, the number of employees decreased to 1,922 (previous year: 1,972).

In the German market, the brand business was expanded further. This promoted the growth of Fürst von Metternich, as well as that of Mionetto prosecco, Henkell, Söhnlein Brillant, and Kupferberg. In addition, there was a very promising and successful launch in Germany of the internationally established wine brand i heart WINES. Wodka Gorbatschow also developed very positively at a high level, thus significantly supporting the growth of the spirits segment in Germany.

Mionetto and i heart WINES were growth drivers in Western Europe. The two brands were the basis of the continuing positive growth of the Copestick Murray subsidiary in the United Kingdom. In its home market of Italy, which had an overall positive development in the double digits, Mionetto was also able to grow. In addition, Henkell & Co. Austria, Henkell & Co. Benelux, and Henkell & Co. Suomi were able to contribute to the positive development in Western Europe.

EUR 14million investments



81

The Eastern European business of Henkell & Co. is characterized by the strong subsidiaries Bohemia in the Czech Republic, Törley in Hungary, and Hubert in Slovakia, which each have a more than 60% market share in their respective country. Törley had an especially positive development thanks to powerful image communication during the season and the new brand Törley Excellence.

Outside of Europe, business grew significantly. This was driven by the continued growth of Mionetto prosecco in the United States, and by the newly founded business unit Henkell & Co. Global, which is headquartered in Wiesbaden and centrally bundles the export marketing of the entire Henkell & Co. Group.

The wine segment of the group continued its positive development in 2016. A dispropor-tionate share of this was contributed by the international wine brand i heart WINES. Particu-larly positive, with growth in the high double digits, was the development of the wine brand 50 Grad Riesling. Added to this are the wine brands György Villa and Szent Istvan (Hungary), Habanske Sklepy and Vino Mikulov (Czech Republic), and the Vitis wines from Slovakia.

The core brands in the spirits segment developed positively overall. The strongest brand is Wodka Gorbatschow, which has been the market leader in Germany since the mid-70s. The portfolio in Germany is complemented by Kuemmerling, Pott Rum, Batida de Côco, and Fürst Bismarck Doppelkorn; internationally also by the leader in Poland’s gin market, Lubuski Gin, the leading brandy in Slovakia, Karpatské Brandy, and the Romanian Wermut Angelli.

ForecastThe Henkell & Co. Group expects moderate growth for 2017. The focus is on strong brands, which continue to be actively promoted by always up-to-date communication in combination with promising innovations. Focus areas of growth are also seen in the continuing prosecco trend in Western Europe and the United States. For Henkell & Co. Global and for Germany, the group also expects an organic increase in sales revenue. In Eastern Europe, the group intends to continue strengthening its brands and market share, and is focused on the sparkling wine and wine business. Political and economic changes may have an equally strong impact on the developments in individual countries.

Positive development of the international wine brand i heart WINES

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Business processesIn the logistics area, the “Fleet Operations Center” of Hamburg Süd was further expanded to optimize fleet utilization. At this time, it has taken over the support for all large liner services. In the particularly stormy winter of 2016, the Fleet Operations Center was able to provide excellent support in the optimization of travel routes, ensuring that the crew, ships, and cargo always arrived safely, with bunker consumption remaining within acceptable parameters.

In recognition of its operational excellence and high standard of customer service, in July 2016 Hamburg Süd received the “Top Ranked Carrier 2016” award from the Agriculture Transportation Coalition, and in August 2016 it received the “Ocean Supplier of the Year” award from CEVA Logistics.

At the same time, the Hamburg Süd Group is working on the continuing modernization of its operative IT systems. In January 2016, the terminal departure report module (TDR), newly developed in the context of GLOBE, went live for all operational departments worldwide. Each week, container terminal-related data for more than 200 port calls are registered.

In the area of sales and marketing, in the context of integrating CCNI, which was acquired in 2015, and for the continued support for growing transport volumes in several regions, the sales and customer service organization was optimized and restructured. For example, at the beginning of 2016, Hamburg Süd opened representative offices in Seoul and Busan, South Korea. Hamburg Süd is now also represented with its own offices in Le Havre, France.

In the 2016 financial year, the Hamburg Süd Group continued to increase its energy efficiency in ship operations. For example, future energy-saving concepts were tested on ships of the latest generation. The Hamburg Süd Group is also continuing the modernization of technology on older ships. On the Rio ships, for example, retrofitting of an electronic speed control for the seawater cooling pumps has begun.

The internationally approved sulfur limits will be lowered in the future. In preparation for this, the Hamburg Süd subsidiary Columbus Shipmanagement GmbH (CSG) has developed a concept study for the new construction of a liquid gas-fueled container ship of the “Cap San” class. In response to questions from professional circles, the results of the study have now been presented at various industry events.

The GLOBE project, which serves as the replacement for operative and administrative IT applications that were developed more than 20 years ago, reached a new milestone in May 2016 with the successful roll-out of the GLOBE export booking module. Additional functions will follow in the current year.

Increased energy efficiency


Shipping



83







Contrary to its forecast, the Hamburg Süd Group was unable to maintain sales revenue at the previous year’s level. In 2016, the group had sales revenue of EUR 5,624 million, corre-sponding to a 7.2% decline as compared to the previous year. Although transport volume could be increased by 7.2%, to 4.4 million TEU (1 TEU = 1 20-foot standard container), as a result of continuing overcapacities the freight revenue per individual shipment decreased by about 15%. Adjusted for currency and acquisition effects, sales revenue in the reporting year decreased by 8.0%, to EUR 5,627 million. Investments amounted to EUR 77 million, and were therefore far below the previous year’s level. In view of the weak cargo growth, no additional ship orders were required. Since the last ships of the “Cap San” class were delivered in the course of 2016, investments in the shipping fleet were also significantly lower. The number of employees increased to 6,300 during the reporting period.

Over the years, the Hamburg Süd Group has been able to finance the strong growth of its business and the strengthening of its asset base mostly from operative cash flow. Following the significant transport volume increase in liner shipping of about 22% in the previous year, the entry into the east-west routes, and the integration of CCNI activities, the year 2016 was characterized by the consolidation and restructuring of liner services. In view of rising overcapacities and the low global growth in cargo, in part caused by the crisis in most South American economies, the Hamburg Süd Group, like other liner shipping companies, was not able to achieve a satisfactory result in this extremely difficult and challenging market environment.

Bulk markets also continued to be subject to very difficult market conditions, and were impacted this year by overcapacities and low rates. The charter rates this year temporarily sank below their lowest levels from the crisis year 2009, and did not recover in the course of the year, putting sales revenue in bulk carrier shipping significantly below expectations. One of the main drivers of this was the decrease in coal and iron ore exports in China. In some cases, the rates barely covered the ships’ operating costs. In the product tanker shipping area, more time charter contracts were concluded than planned, generating far lower income as compared to voyage charters. This led to lower total revenue in this area as well.

Consolidation and restructuring of liner services

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In December 2016, Dr. August Oetker KG announced its intention to sell the Hamburg Süd Group to Maersk Line A / S, the market leader. Since active participation in the currently ongoing consolidation process of the industry would require an even higher capital invest-ment, and would also be severely disruptive in terms of risk allocation within the Oetker Group, the stockholders of the Oetker Group have decided to turn over Hamburg Süd to new owners. In their view, the global market leader Maersk is the ideal partner to preserve and further develop the successful business model of the shipping company. The purchase agree-ment was signed in March 2017, and is pending approval by the supervisory bodies and / or partners of both parties, as well as the antitrust authorities in all relevant jurisdictions.

ForecastIn the current market environment, the Hamburg Süd Group, like all its competitors, is subject to an unsatisfactory earnings situation. Following a turbulent year in 2016, further consoli-dations in the shipping industry can be expected for 2017. Since shipping will remain a diffi-cult environment with continuing overcapacities and low cargo rates, a fundamental change in the market situation is unfortunately also not to be expected in the coming year. In the long term and throughout the industry, this downward spiral will only end with the restoration of at least an approximate balance between capacity supply and transport space demand, and when, at the same time, competition-distorting subsidies, such as those emanating especially from Korea, China, and Taiwan, are discontinued.

For this reason, rather than an increase in sales revenue, Hamburg Süd has defined the improvement of operating results as its primary objective in 2017. This will involve further cost-cutting measures. There will be additional rationalization of liner services, for example, resulting in a significantly lower increase in transport volume. At the same time, for certain shipping areas in which there is a balance between supply and demand, an increase in cargo rates is expected. Based on a continuously strong US dollar, the group is expecting a slight overall increase in sales. A slight market recovery is also expected for bulk carrier shipping in 2017, even though the charter rate situation will remain far from satisfactory.

The earnings of the shipping group in 2017 are essentially dependent on the development of the global economy and global trade, and on the industry’s adaptability to market conditions.

Sale of the Hamburg Süd Group to the market leader Maersk Line A / S



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Business processesIn the area of production and logistics, in the financial year 2016 Budenheim began con-struction on a fully automated robotic repalletizing system, designed to reduce complexity in the numerous packaging variations. In addition, following the works management plan, it was decided to construct a new production building to house the new automated production systems in the future.

In the research and development area, Budenheim achieved an innovation rate of 17.1% in 2016, thus again increasing the previous year’s figure. The restructuring of the global innovation organization continued to be driven forward in 2016 with on-the-job training of global materials and process experts. This allowed for a more efficient response by the divisions to market-related queries, and facilitated the identification of internal improvement potential, for example in the global production facilities.

Within the innovation area, the research-oriented innovation platform Phosphorus Recovery studies the recovery of phosphorus from sewage sludge. In June 2016, representatives of the platform were invited to the Environment Week at the Bellevue Palace park in Berlin by the then Federal President Joachim Gauck. Budenheim had the honor of being present among close to 200 selected projects, and was one of the few exhibitors to be personally visited by the Federal President.

In the reporting year, the development activities in the food ingredients division focused on the market launch of the product lines LEVALL® SR, for the manufacturing of low- sodium baked products, and LEVALL® AS. The latter is a substitute product for the aluminum- based leavening acids that are an increasing topic of discussion across the globe. In both cases, formulas and recipes were optimized and adjusted in cooperation with the key customers. With the product launch of CARNAL® HQ PEEL, a product concept that was created in cooperation with the leading manufacturer of machines for the processing of coldwater shrimp was successfully positioned in the market.

The performance materials division continued to expand its portfolio of innovative specialty products. For application in fireproof materials, four additives that improve specific material characteristics were launched under the brand name FFB®. A graphite-free lubricant in powder form was developed for the forging industry, which can be mixed into solution by the customer on-site. The new product PHOSPHATHERM® significantly reduces logistics requirements, as the previously used liquid products consist of more than 50% water. In the area of general industrial applications, an additive was developed for the manufacturing of grinding disks, which significantly increases the useful life of the disks.

New product guidelines for the production of sodium-reduced baked products


Other Interests

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The material ingredients division achieved further approvals in 2016 for the product FR CROS® 584, which was developed over the past few years. It allows customers to produce improved and environmentally safe flame-retardant coatings for water-based applications. This development is supported by the October 2016 launch of the new fire safety lab, a key investment for the demonstration of product performance. At K 2016, the world’s largest plastics trade fair, the newly developed BUDIT® 610 for fiber-reinforced polyamide was pre-sented. Based on polymeric phosphorous compounds, this patented flame retardant leads to significantly lower wear, and reduces the processing costs during extrusion. The product is being tested with selected customers from the plastics processing industry. In 2016, a novelty for Budenheim was the market launch of the plastics concentrates of the BUDIT®-L and BUDIT®-F series, with optimized formulas of light-sensitive phosphates and foaming agents for plastics. The products of the BUDIT®-L series, optimized for laser etching and laser welding, can be more readily and homogeneously mixed into plastics. The BUDIT®-F series helps to achieve a more uniform, ecologic plastic foam.

Due to the high speed of innovation in the IT sector, in the past year OEDIV also evaluated new operating concepts and technologies, and brought these to operational maturity. In the course of 2016, the service portfolio continued to grow. Examples of this are the operation of virtual in-memory systems based on SAP HANA, the deployment of Microsoft products in the context of the Cloud Solution Provider program, and the implementation of file-sharing platforms similar to Dropbox, based on OwnCloud and Citrix ShareFile.



Sales revenue (in EUR million) 524 606

Adjusted sales revenue (in EUR million) 597 605



The companies of the Other Interests Division are primarily active in the chemical indus-try and luxury hotel sector. In view of the different markets, the companies of this division de veloped differently. Overall, the division achieved an increase in sales revenue of 15.8%, to EUR 606 million. This growth can be attributed mainly to the effects of the initial applica-tion of the German Accounting Directive Implementation Act (BilRUG), according to which nontypical services must also be shown as sales revenue. Sales effects resulting from this in the five consolidated business divisions are shown under miscellaneous sales revenue of the Other Interests Division. After adjustment for these effects as well as the exchange rate and acquisition effects, sales revenue in 2016 increased by 1.5%, to EUR 605 million. Investments totaled EUR 48 million in the reporting year. During the same period, the number of employees increased to 2,503.

EUR 606 million in sales revenue



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Contrary to the trend in the chemical sector, in 2016 Budenheim was able to increase sales revenue by 2.1%, to EUR 278 million. Volume growth was at 4.1%. Although the group performed better than the competition and the sector in relative terms, in absolute terms Budenheim was unable to achieve its very ambitious growth targets. Average prices de-clined slightly due to structural effects and other issues. Price concessions related to com-petition and as the result of a decline in raw material costs only had to be made in individual cases in the food ingredients division. The largest contributions to growth came from the performance materials and material ingredients divisions. In the regional perspective, Budenheim achieved very positive growth in Asia. The European markets were also quite positive. In North America, the previous year’s sales revenue was maintained. However, sales revenue in Central and South America declined as a result of weak economies, but in part also due to changes in food legislation.

In a continuously increasing price competition in the food additives market segment, which was characterized in particular by declining raw material prices and the increased use of excess capacities for phosphates in the Asian and North American regions, the Food Ingredients division ended the 2016 financial year with a slightly lower sales volume than in the previous year. After an adjustment of the price and portfolio policy, and driven by increased sales volume throughout the year in the European core region, margin growth versus the previous year could be achieved by year-end. In the course of increased market cultivation in North and South America, the innovative leavening acids of the LEVALL®-SR series could be suc-cessfully positioned in the market. The PureMin® product line, under which mineral-based food additives for the infant and toddler segment are marketed, enjoyed increased demand in all sales regions. This development was complemented by an increase in the sales of PureMin® Fe. In contrast to phosphate-based additives, the market segment for the treatment of fish and seafood was able to achieve significant growth in sales revenue, even though worldwide catch levels were on the decline.

The performance materials division registered significant growth in sales revenue, including due to the December 2015 acquisition of the lubricant business of Imerys Graphite & Carbon. Even after adjustment for acquisition growth, this year value-oriented price and product portfolio management once again increased profitability. The step-by-step expansion of the international sales organization showed positive results. In the application areas of pharma and personal care, significant increases in sales revenue were achieved, particularly in Asia and South America.

In the material ingredients division, which combines the application areas of functional plastic and color additives, sales revenue increased by double digits versus the previous year, exceeding expectations by far, even though the competitive pressure has markedly increased in the Asian and North American markets. Besides a targeted expansion of the European customer base in the paints and coatings market segment, this was caused by the increased demand for environmentally friendly flame retardant concepts for electronic components

Expansion of the international sales organization

88



made of special plastics. The still young market segment of active polymers benefited from the introduction of an innovative additive for the production of three-dimensional conductors, which use laser direct structuring (LDS) to ensure reliable mobile reception in the latest smartphones. The trade with products to fight forest fires achieved significant growth versus the previous year, due in no small part to an unusually high demand in the Israeli market.

The sales revenue of the Oetker Collection decreased by 2.4% in the 2016 financial year, down to EUR 146 million and far below expectations. The main cause of the decline was the negative development of sales revenue at the Hotel Le Bristol in Paris. Due to the economi-cally uneasy conditions in France, the Parisian hotel did expect a decline in sales; however, the decline was higher than assumed. The effects of the terror attacks have had a huge impact on tourism. The number of Russian guests also increased very slowly, and was far below the level of a few years ago.

The fall in sales revenue at the Hotel Le Bristol Paris could not be compensated for by the significant increases in revenue at the Hotel du Cap-Eden-Roc in the south of France, the Brenners Park-Hotel & Spa in Baden-Baden, and the Oetker Hotel Management Company. In mid-2015, the Oetker Hotel Management Company took over the management of The Lanesborough, an iconic London hotel. As planned, the 12 months of business activity to date led to an increase in revenue in the reporting year. Brenners Park-Hotel & Spa profited from a strong increase in overnight stays by foreign guests, and was able to raise both the utilization of capacity and the average rate. The number of overnight stays sold within the group rose by 5.9% as compared to the previous year.

The sales revenue of OEDIV continued to develop positively and according to plan in the 2016 financial year. The trend in the medium-sized business market of outsourcing internal IT infrastructures continued throughout the past year. Among other things, this is caused by an increase in availability requirements, the rise in technological complexity, and last but not least by a lack of qualified IT personnel in the mid-size market. The largest share of OEDIV’s revenue was attributable to German customers with international locations.

From the perspective of the individual divisions, the core segments of SAP and Microsoft generated about two thirds of OEDIV’s sales revenue. Revenue related to the still fairly new in-memory technology SAP HANA increased significantly. Other growth drivers included the increased demand from existing customers for additional, previously unused services from the OEDIV portfolio, as well as growth-related expansion to existing infrastructures. The successful acquisition of new customers has also contributed to the growth in sales revenue, even though it was lower than in the previous years.

ForecastAgainst the backdrop of global developments and the huge geopolitical risk potential, the export-oriented German chemical trade will not be very dynamic. For the entire year of 2017, the chemical sector expects – in spite of an only moderate increase in chemical production –

Launch of an innovative additive for the production of three- dimensional conductors



89

a 1% increase in sales revenue in the sector, attributable to rising raw material prices. As a clearly market- oriented specialty chemical company, Budenheim will remain disconnected from this general trend in 2017, and will achieve significant increases in sales revenue, in-cluding through higher sales volumes.

The Oetker Collection expects a significant rise in revenue for 2017. All hotels of the group and the activities of the OHMC will contribute to this. The OHMC will profit from the opening of the ninth Masterpiece hotel in São Paulo. Increased sales revenue and therefore increased management earnings are also expected by other management operations.

OEDIV will continue to expand its service portfolio, so as to acquire new customers in co-operation with strategic partners, and to expand the service range and business relationships with existing customers. In conjunction with the continuing march of digitalization, this will contribute to the growth of OEDIV. Due to the rise in requirements for professionally operated infrastructures, systems, and applications, OEDIV expects moderate growth in 2017.

São Paulo: Opening of the ninth Masterpiece hotel

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Financial Position


Total assets have risen by EUR 84 million, versus December 31, 2015, to EUR 8,896 million. This is largely attributable to the increase in current assets for operational reasons and a higher level of cash and cash equivalents. In contrast, fixed assets decreased due to invest-ments, especially in shipping, being below depreciation. The basic values of the balance sheet structure are as follows:

BALANCE SHEET STRUCTUREIn EUR million 2014 2015 2016

Total assets 8,499 8,812 8,896

Fixed assets 4,634 5,216 5,059

Inventories, accounts receivable, prepaid expenses 2,545 2,789 2,848

Cash and cash equivalents 1,320 807 990

Equity 3,484 3,613 3,648

Provisions 1,526 1,750 1,778

Liabilities including deferred income, deferred tax liabilities 3,489 3,450 3,470

As compared to the previous year, intangible assets decreased by EUR 137 million, to EUR 459 million. In the reporting year, the depreciation of intangible assets exceeded capital expenditure. Additions in 2016 totaled EUR 54 million. EUR 29 million of this was goodwill, and can be attributed to acquisitions in the Food Division. The decrease in fixed assets by EUR 98 million, to EUR 4,015 million, is driven mainly by the changes in ships and con-tainers. Additions to fixed assets and intangible assets totaled EUR 442 million (previous year: EUR 1,471 million). EUR 37 million of this can be attributed to acquisitions (previous year: EUR 731 million). Current investments totaled EUR 405 million, which is EUR 335 million be-low last year’s level of investment. From the regional perspective, the focus was once again on investments in Germany, although the share of the foreign companies in current invest-ments increased from 15.2% to 34.8% in 2016. The amortization and depreciation on intan-gible assets and tangible assets totaled EUR 694 million (previous year: EUR 684 million).

The carrying amount of the investments in associated companies increased by EUR 76 million, to EUR 489 million. The investments accounted for using the equity method include mainly Bankhaus Lampe KG, Düsseldorf, S.A. Damm, Barcelona (Spain), Emaphos Euro Maroc Phospore S.A., Casablanca (Morocco), and Itapoá Terminais Portuários S.A., Itapoá (Brazil).

As compared to the previous year, inventories increased by EUR 36 million, to EUR 879 million. Trade accounts receivable have increased by EUR 24 million, to EUR 1,358 million. These changes are related to operations and also influenced by the acquisitions in the Food Division. The total accounts receivable from affiliated companies of EUR 6 million (previous year: EUR 7 million) can be set against liabilities of EUR 20 million (previous year: EUR 5 million). These items relate to German and foreign subsidiaries and other investments not included in the scope of consolidation.

Financial Position

Financial Position


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The other assets of EUR 536 million (previous year: EUR 533 million) include short-term borrowings and claims not set off against liability items from the reinsurance of pension obligations with Condor Versicherungsgruppe, as well as tax refund entitlements, receiv-ables relating to empty packaging, and the like. They also include the assets of Atlantic Forfaitierungs AG, which essentially relate to short-term financial investments. With regard to maturity, an amount of EUR 75 million (previous year: EUR 103 million) was attributable to other assets that are payable after more than one year.

The cash and cash equivalents of EUR 990 million (previous year: EUR 807 million) are made up of amounts due from Bankhaus Lampe KG and the item “Cash in hand, deposits with nonaffiliated banks and checks”.

The fixed capital of Dr. August Oetker KG remained unchanged at EUR 450 million. The group’s reserves decreased by EUR 23 million, to EUR 3,371 million on the balance sheet date. The positive change in the difference in equity from currency translation of EUR 50 million was essentially the result of the shift in the euro against the national currencies in Brazil, Mexico, the United Kingdom, and Turkey.

The provisions for pensions amounted to EUR 616 million on the balance sheet date (previous year: EUR 621 million). While portfolio changes had a negative effect of EUR – 25 million, interest and exchange rate effects had a positive effect of EUR 20 million. As in the past, a portion of the staff pension arrangements is covered by direct insurance policies, mainly with Condor Lebensversicherungs-AG. The insurance premiums needed for this purpose are largely paid in the form of a lump sum. Policy loans are not used.

The provisions for taxes of EUR 86 million (previous year: EUR 38 million) include only effective taxes. The other provisions include amounts for outstanding invoices, deposit credit balances from the Beer and Nonalcoholic Beverages Division, and sales reductions, especially in the Food Division and in the personnel department.

Total liabilities amount to EUR 3,436 million (previous year: EUR 3,376 million) structured by remaining maturity, which can be found in the notes. The miscellaneous other liabilities included in the total amount of EUR 1,616 million (previous year: EUR 1,525 million) include payments received for pending voyages in the Shipping Division and the stockholders’ accounts within Dr. August Oetker KG.

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Financial Position


The deferred tax liabilities decreased by EUR 35 million to EUR 24 million on the balance sheet date and result only from consolidation measures. There was an asset surplus at the level of the individual financial statements, essentially as the result of different valuation approaches in the provisions for pensions. To that extent, the company availed itself of the option under Section 274, para. 1, sent. 2, of the German Commercial Code (HGB).

The Oetker Group’s financial position is marked by internal financing, largely retained earnings, and long-term bank loans. As of December 31, 2015, net financial assets still showed a negative balance of EUR 314 million, above all due to the expenses for acquisitions in the previous year. By year-end 2016, the balance was positive again and in the amount of EUR 70 million.

As compared to the previous year, equity increased by EUR 35 million, to EUR 3,648 million. With a 1.0% increase in the total equity and liabilities at the same time, the equity ratio remained unchanged at 41.0%. The bank liabilities are mainly based on loans with terms of ten years, which are serviced according to plan. Long-term loans of EUR 161 million were repaid during the reporting year, and no new loans were taken out. In the case of the companies consolidated for the first time in 2016, loan repayments and new loans were negligible.

Long-term charter contracts exist in an amount of EUR 2,442 million (previous year: EUR 2,709 million) and are typical for the Shipping Division. In addition, there are leasing liabilities on a manageable scale only in the area of financing containers for Hamburg Süd. Other leasing agreements and off-balance-sheet financial instruments have only a subordinate role for the Oetker Group.

Financing and cash investments by subsidiaries are combined within the Oetker Group wherever possible in order to minimize risks and exploit potential optimization. Interest, price, and currency hedging is carried out primarily by Dr. August Oetker KG by means of derivative financial instruments.

Forecast Report


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In the year 2017, the global economy will grow by approximately 3.4%, with Asia lying dis-tinctly above and Europe distinctly below the average. At an expected level of 3.0%, world trade will grow noticeably faster than in the previous year (1.8%). This is based chiefly on the assumption that the proportion of expansion by the emerging nations will increase by a perceptible degree.

In 2017, the business development of the Oetker Group will continue to essentially depend on the development of economic conditions. In the consumer goods divisions, rising prices are expected for raw materials; however, due to price hedges, these will only have a partial effect. The annual average price for bunker oil is expected to remain below the previous year’s level. Regarding the rates of the foreign currencies important to the Oetker Group, planning has stayed close to the annual average of 2016.

Sales revenue planning for 2017 is based solely on organic growth and is anticipating sales revenue of more than EUR 12 billion. Investments of approximately EUR 600 million are expected in 2017, especially due to several new plant constructions and expansions in the Food Division, and the final payments for four new-build ships. Net financial liabilities are ex-pected to continue decreasing. Employee numbers are assumed to remain constant.

Other aspects of the expected development in the individual divisions are described in their respective sections.

The forecasts for the individual divisions can be found starting on page 75.

Forecast Report

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Opportunities and Risks Report


The business activities of the Oetker Group offer many opportunities and are subject to permanent risks. The primary goal is to achieve a balance between opportunities and risks.

All trends in the industries relevant to the group are constantly monitored. Opportunities are considered when formulating plans and pursued as part of periodic reporting. Regular market and competitive analyses are carried out and the crucial success factors for the markets are examined.

The group companies are subject to different economic conditions. In the three consumer goods divisions, consumption trends among consumers are particularly relevant. A diversified product portfolio and continuous development of new products help the group to take account of market and consumer needs. This also includes the trend towards more quality awareness and increased demand for sustainably produced products.

Expanding the group’s market presence also offers strategic opportunities. This applies, for example, to the markets in emerging nations. With the help of strategic acquisitions, the product portfolio can be expanded, the market position improved, and growth boosted.

Within the context of its structure, which is diversified across both industries and regions, the Oetker Group is also exposed to different risks. These mainly involve economic risks, which particularly affect the freight and charter rates in the Shipping Division, raw material price risks, which affect all divisions of the Oetker Group (especially fuel price risks in Shipping), and, to a lesser extent, currency risks. Dealing with these business risks is a key component of entrepreneurial leadership at the Oetker Group.

Operational opportunities and risksProcurement market opportunities and risksIn the estimation of the group management, the prices on the procurement markets will increase in 2017. Many of the raw materials important to the consumer goods divisions have already been firmly contracted for 2017 in terms of their prices, so there are no risks there. Other risks in procurement are mitigated by diversification of suppliers and other measures to secure volumes. For the fuels important to the Shipping Division, bunker oil and gas oil, on the other hand, a lower price than the average in 2016 is expected.

Environmental and industry opportunities and risks The consumption climate is of crucial significance for the consumer goods divisions. On top of that there are crises, such as in Ukraine and Russia. In addition, state interventions also have a major influence. There are also risks for the divisions of the group from the persisting debt and financial crises in many countries. In addition, the increasingly intense competition and continuing trade concentration harbor risks as well. By continuously strengthening their brands and constantly developing new products, the group companies counter these risks while at the same time generating new opportunities. Apart from this, using different sales channels enables a balance between potentially structural migration movements and consumer demand patterns.




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For the Shipping Division, there are risks in particular from worsening macroeconomic trends with corresponding consequences for developments in freight rates, especially in the line business. Given the forthcoming delivery of new-build tonnage and the low scrapping rates of old ships, there is the risk that market capacities will increase faster than the demand for transport services. With any recovery in global trading, however, there will also be opportunities to implement the division’s transport services on the market profitably.

Functional opportunities and risksFinancial opportunities and risksThe Oetker Group is subject to financial opportunities and risks in terms of liquidity, cur-rencies, and interest rates. Given the solid earnings structure of the Oetker Group, the long-term relationships with various banks, and financing based on classic bank loans, mainly with ten-year terms, the liquidity and interest risk is regarded as extremely low. Currency risks are mainly hedged with the help of forward exchange transactions, which limit potential losses. Given the dominance of the US dollar in Shipping, the prospect of the rate of the US dollar against the euro in 2017 remaining at or around the level of the balance sheet date in 2016 represents no change in the risk situation for the upcoming financial year.

Legal and regulatory risksAs a company that operates worldwide, the Oetker Group has to observe a large number of legal and regulatory standards.

To implement them, internal standards, guidelines, and procedures need to be regularly reviewed – including within the context of management systems. All relevant legal and regulatory requirements and compliance with the Oetker Code of Conduct are monitored by a compliance organization set up across the group.

In addition, the usual insurance policies have been concluded to cover certain legal risks.

Opportunities and risks in the area of IT / digitalizationThe use of digital technology enables the ongoing standardization of data systems as well as the harmonization and optimization of processes. Information technology risks are countered by extensive capital expenditures in the security architecture of the IT systems. Digital transformation is an unstoppable trend that is influencing consumer behavior and market participants. Apart from risks, for example as a result of the entry of new market participants, this also results in new offerings that will provide the Oetker Group with new opportunities for growth, especially in the consumer goods divisions.

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Personnel opportunities and risksThe financial success of the Oetker Group is largely defined by its employees’ skills and motivation. Recruiting highly qualified specialists and managers and binding them to the Oetker Group in the long term is therefore enormously important. To this end, the group relies on targeted measures to develop employees, and on incentive systems. A further focal point in the group’s human resources work is on health management and the counseling of employees in different phases of their lives.

Environmental and safety factorsDue to its activities at numerous locations worldwide, the Oetker Group has to observe standards in the environmental, safety, health, and social areas. This can result in harm to people and goods. Measures that target legal and regulatory risks also help counter environ-mental and safety risks, as do the certification, counseling, and training of employees. In addition, high technical standards in production provide effective protection.

Summary of the opportunities and risks situationThere are no concentrations of risk worthy of mention either on the customer side or on the supplier side. Likewise, there are no apparent risks that may put the group’s existence at risk in connection to the countries in which the Oetker Group operates.

Moreover, from today’s perspective, there are no risks apparent that might result in any impact on the long-term existence of the Oetker Group. In addition, a higher risk coverage volume has been created in past years via a sustainable increase in the equity ratio, with which from today’s perspective the risk drivers in the Oetker Group’s business can be man-aged even more effectively. At the same time, the opportunities offered can be grasped from this solid foundation.



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03 Consolidated Financial Statements

Consolidated Balance Sheet 100

Consolidated Statement of Changes in Fixed Assets 102

Notes to the Consolidated Financial Statements 104

Report of the Auditors 111

Consolidated Financial Statements

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Consolidated Balance Sheet

Consolidated Balance SheetDr. August Oetker KG

ASSETSIn EUR ’000 2015 2016

FIXED ASSETS

Intangibles

Acquired concessions, trademarks, and similar rights and assets as well as licenses to such rights and assets 434,957 317,952

Goodwill 158,408 138,337

Advance payments 2,470 2,715

595,835 459,004

Tangibles

Land, leasehold rights, and buildings, including buildings on leasehold land 1,012,087 1,141,990

Machinery and equipment 475,941 488,746

Other equipment, fi xtures, furniture, and offi ce equipment

Ships and containers 2,194,278 1,957,936

Miscellaneous other equipment 274,743 286,920

Advance payments and fi xed assets under construction 155,250 139,101

4,112,299 4,014,694

Financial assets

Shares in subsidiaries 65 107

Investments in associated companies 412,966 488,913

Investments in other companies 19,796 27,542

Long-term borrowings to affi liated companies 1,725 1,851

Fixed-assets securities 1,489 1,707

Other long-term borrowings 72,274 64,857

508,314 584,977

5,216,448 5,058,674

CURRENT ASSETS

Inventories

Raw materials and supplies 254,110 296,994

Work in progress

Voyages in progress (shipping) 149,213 139,598

Other work in progress 91,365 91,093

Finished products and merchandise 343,658 342,153

Advance payments 3,920 8,901

842,266 878,738

Accounts receivable and other current assets

Accounts receivable (trade) 1,334,954 1,358,455

Accounts receivable from subsidiaries 186

Accounts receivable from affi liated companies (apart from banks) 7,052 5,522

Other current assets 532,679 535,988

1,874,685 1,900,150

Funds

Accounts receivable from affi liated banks 71,027 107,510

Cash in hand, deposits with nonaffi liated banks, and checks 735,655 882,374

806,682 989,883

3,523,633 3,768,772

DEFERRED CHARGES AND PREPAID EXPENSES 68,468 65,244

POSITIVE DIFFERENCE BETWEEN PLAN ASSETS AND RETIREMENT BENEFIT OBLIGATIONS 3,636 3,705

8,812,184 8,896,396


101

Consolidated Balance Sheet

EQUITY AND LIABILITIESIn EUR ’000 2015 2016

EQUITY

Fixed capital 450,000 450,000

Reserves 3,394,367 3,370,911

Difference in equity due to currency conversion – 234,977 – 185,087

Noncontrolling interests 3,461 11,696

3,612,851 3,647,520

DIFFERENCE DUE TO CAPITAL CONSOLIDATION 0 111

PROVISIONS

Provisions for pensions and similar obligations 620,885 616,310

Provisions for taxes 37,896 85,619

Other provisions 1,090,803 1,076,480

1,749,583 1,778,409

LIABILITIES

Liabilities due to banks

Liabilities due to banks outside the Oetker Group 1,111,085 910,195

Liabilities due to affi liated banks 9,967 9,930

Advance payments received 7,542 8,814

Accounts payable (trade) 571,057 593,605

Accounts payable to subsidiaries 43 27

Accounts payable to affi liated companies (apart from banks) 5,315 20,201

Miscellaneous liabilities

Taxes 131,968 263,130

Social security 14,110 14,420

Other 1,525,209 1,615,897

3,376,297 3,436,220

DEFERRED INCOME 14,133 9,887

DEFERRED TAX LIABILITIES 59,319 24,250

8,812,184 8,896,396

Bielefeld, April 12, 2017 Dr. August Oetker KGGeneral Partners

Dr. Ottmar GastRichard Oetker (until December 31, 2016)


102


Consolidated Statement of Changes in Fixed Assets

Consolidated Statementof Changes in Fixed Assets

Dr. August Oetker KG

CONSOLIDATED STATEMENT OF CHANGES IN FIXED ASSETSIn EUR ’000

Cost as of January 1, 2016

Currency differences and

effects due to change in scope of consolidation Additions Disposals Reclassifi cations

Cost as of December 31, 2016

Accumulateddepreciation and

amortization as of January 1, 2016


effects due to change in scope of consolidation

Depreciation and amortization

in 2016 DisposalsReclassifi -

cationsWrite-ups

in 2016


amortization as of December 31, 2016

Book value as of December 31, 2016


Intangibles

Acquired concessions, trademarks, and similar rights and assets as well as licenses to such rights and assets 1,287,194 – 8,910 23,071 – 23,919 3,020 1,280,456 – 852,237 3,414 – 136,899 22,964 – 271 526 – 962,504 317,952 434,957

Goodwill 220,610 – 9,322 28,688 – 7,551 232,426 – 62,203 1,674 – 41,108 7,548 – 94,088 138,337 158,408

Advance payments 2,472 2 2,500 – 44 – 2,216 2,715 – 3 0 3 0 2,715 2,470

1,510,277 – 18,230 54,258 – 31,513 805 1,515,596 – 914,442 5,088 – 178,005 30,512 – 271 526 – 1,056,592 459,004 595,835

Tangibles

Land, leasehold rights, and buildings, including buildings on leasehold land 2,095,910 2,809 83,334 – 27,884 104,874 2,259,042 – 1,083,822 – 1,810 – 58,607 25,619 – 218 1,785 – 1,117,052 1,141,990 1,012,087

Machinery and equipment 2,240,860 778 91,612 – 112,411 28,679 2,249,518 – 1,764,920 1,163 – 108,402 111,345 26 16 – 1,760,772 488,746 475,941

Ships and containers 4,171,350 – 119,671 4,436 – 55,200 411 4,001,327 – 1,977,073 153,814 – 273,210 53,078 – 2,043,391 1,957,936 2,194,278

Other equipment, fi xtures, furniture, and offi ce equipment 855,629 743 86,943 – 68,440 2,842 877,717 – 580,887 – 727 – 75,859 66,427 248 – 590,797 286,920 274,743

Advance payments and fi xed assets under construction 155,295 435 121,276 – 670 – 137,180 139,157 – 45 – 0 – 11 – 56 139,101 155,250

9,519,045 – 114,905 387,601 – 264,605 – 374 9,526,761 – 5,406,746 152,439 – 516,088 256,469 57 1,801 – 5,512,068 4,014,694 4,112,299

Financial assets

Shares in subsidiaries 68 43 111 – 4 – 4 107 65

Investments in associated companies 421,666 4,516 71,865 – 435 497,612 – 8,699 – 8,699 488,913 412,966

Investments in other companies 26,728 33 8,212 – 1,683 – 1 33,290 – 6,932 0 1,184 – 5,748 27,542 19,796

Long-term borrowings to affi liated companies 1,745 93 – 6 39 1,871 – 20 – 20 1,851 1,725

Fixed-assets securities 1,919 11 250 – 53 – 18 2,108 – 430 – 0 – 4 33 – 401 1,707 1,489

Other long-term borrowings 90,643 – 495 18,529 – 27,443 – 451 80,783 – 18,369 495 – 1,911 3,292 215 352 – 15,926 64,857 72,274

542,768 4,065 98,992 – 29,620 – 431 615,775 – 34,454 495 – 1,914 4,476 215 385 – 30,798 584,977 508,314

TOTAL 11,572,090 – 129,070 540,851 – 325,739 11,658,133 – 6,355,642 158,023 – 696,007 291,456 2,712 – 6,599,458 5,058,674 5,216,448


103

Consolidated Statement of Changes in Fixed Assets

CONSOLIDATED STATEMENT OF CHANGES IN FIXED ASSETSIn EUR ’000

Cost as of January 1, 2016


effects due to change in scope of consolidation Additions Disposals Reclassifi cations

Cost as of December 31, 2016


amortization as of January 1, 2016


effects due to change in scope of consolidation

Depreciation and amortization

in 2016 DisposalsReclassifi -

cationsWrite-ups

in 2016


amortization as of December 31, 2016



Intangibles

Acquired concessions, trademarks, and similar rights and assets as well as licenses to such rights and assets 1,287,194 – 8,910 23,071 – 23,919 3,020 1,280,456 – 852,237 3,414 – 136,899 22,964 – 271 526 – 962,504 317,952 434,957

Goodwill 220,610 – 9,322 28,688 – 7,551 232,426 – 62,203 1,674 – 41,108 7,548 – 94,088 138,337 158,408

Advance payments 2,472 2 2,500 – 44 – 2,216 2,715 – 3 0 3 0 2,715 2,470

1,510,277 – 18,230 54,258 – 31,513 805 1,515,596 – 914,442 5,088 – 178,005 30,512 – 271 526 – 1,056,592 459,004 595,835

Tangibles

Land, leasehold rights, and buildings, including buildings on leasehold land 2,095,910 2,809 83,334 – 27,884 104,874 2,259,042 – 1,083,822 – 1,810 – 58,607 25,619 – 218 1,785 – 1,117,052 1,141,990 1,012,087

Machinery and equipment 2,240,860 778 91,612 – 112,411 28,679 2,249,518 – 1,764,920 1,163 – 108,402 111,345 26 16 – 1,760,772 488,746 475,941

Ships and containers 4,171,350 – 119,671 4,436 – 55,200 411 4,001,327 – 1,977,073 153,814 – 273,210 53,078 – 2,043,391 1,957,936 2,194,278

Other equipment, fi xtures, furniture, and offi ce equipment 855,629 743 86,943 – 68,440 2,842 877,717 – 580,887 – 727 – 75,859 66,427 248 – 590,797 286,920 274,743

Advance payments and fi xed assets under construction 155,295 435 121,276 – 670 – 137,180 139,157 – 45 – 0 – 11 – 56 139,101 155,250

9,519,045 – 114,905 387,601 – 264,605 – 374 9,526,761 – 5,406,746 152,439 – 516,088 256,469 57 1,801 – 5,512,068 4,014,694 4,112,299

Financial assets

Shares in subsidiaries 68 43 111 – 4 – 4 107 65

Investments in associated companies 421,666 4,516 71,865 – 435 497,612 – 8,699 – 8,699 488,913 412,966

Investments in other companies 26,728 33 8,212 – 1,683 – 1 33,290 – 6,932 0 1,184 – 5,748 27,542 19,796

Long-term borrowings to affi liated companies 1,745 93 – 6 39 1,871 – 20 – 20 1,851 1,725

Fixed-assets securities 1,919 11 250 – 53 – 18 2,108 – 430 – 0 – 4 33 – 401 1,707 1,489

Other long-term borrowings 90,643 – 495 18,529 – 27,443 – 451 80,783 – 18,369 495 – 1,911 3,292 215 352 – 15,926 64,857 72,274

542,768 4,065 98,992 – 29,620 – 431 615,775 – 34,454 495 – 1,914 4,476 215 385 – 30,798 584,977 508,314

TOTAL 11,572,090 – 129,070 540,851 – 325,739 11,658,133 – 6,355,642 158,023 – 696,007 291,456 2,712 – 6,599,458 5,058,674 5,216,448

104


Notes to the Consolidated Financial Statements


Dr. August Oetker KG

Application of the statutory requirementsAs a commercial partnership, Dr. August Oetker KG, registered in the Commercial Register of the Municipal Court of Bielefeld under HRA 8242, is required pursuant to Section 2 of the German Act on Disclosure of Company Financial Statements (below Disclosure Act) to compile and publish consolidated financial statements and a group management report. These consolidated financial statements and group management report, which were prepared in accordance with Section 13 of the Disclosure Act in conjunction with Sections 294 to 315 of the German Commercial Code (below Commercial Code), qualify for exemption within the meaning of Section 264 (4) of the Commercial Code, Section 264b of the Commercial Code, and Section 5 (6) of the Dis closure Act for the companies identified in the list of share-holdings pursuant to Section 313 of the Commercial Code (published in the electronic Federal Gazette).

With the exception of the information pursuant to Section 313 (2) of the Commercial Code, this annual report complies with the regulations of Section 13 of the Disclosure Act in conjunc-tion with Sections 294 to 315 of the Commercial Code.

Pursuant to the introduction of the German Accounting Directive Implementation Act (BilRUG), the previous year’s sales revenue figures are not comparable with the figures of the current financial year.

Scope of consolidationAll of the major domestic and foreign companies on which Dr. August Oetker KG can exert a controlling influence directly or indirectly have been included in the consolidated financial statements.

A total of 415 companies (previous year: 417), of which 236 are German and 179 are foreign companies, were consolidated as of the balance sheet date. Nine companies (previous year: seven) were not fully consolidated as they are not of material significance. The same applies to 13 associated companies (previous year: 12 companies) with regard to con solidation at equity.

In addition, seven companies were valued at equity, as in the previous year.

The following significant changes occurred within the scope of consolidation:

The acquisition of the Turkish company Polen Gida on September 29, 2016, expanded the scope of consolidation by three foreign companies. There were further additions to the other divisions, which, however, are of secondary significance for the group overall.

No longer in the scope of consolidation are several small companies, insignificant from the perspective of the group, that were either merged or liquidated.


105


A listing of shareholdings is published in the electronic Federal Gazette as an element of the notes to the consolidated financial statements.

Accounting policies and valuation methodsIn the individual financial statements, created for consolidation purposes, of the companies included in the consolidated financial statements, the accounting and valuation are performed in accordance with standardized criteria pursuant to the provisions of the Disclosure Act and the Commercial Code, and on the basis of the accounting policies and valuation methods of the Oetker Group (Handelsbilanz II). The financial statements of the companies ac-counted for using the equity method were adjusted in part to the uniform group guidelines.

Tangible and intangible assets were valued in accordance with Section 253 of the Commercial Code. No use was made of the option provided for in Section 248 (2), sent. 1, of the Com-mercial Code to capitalize self-produced intangible assets within the Oetker Group. Goodwill is amortized according to its useful life. The maximum valuation limit for the pro duction cost is the cost pursuant to Section 255 (2), sent. 1 and 2, of the Commercial Code. Investment grants were treated as deductions from the acquisition cost. Scheduled depreciation and amortization were based both on the straight line and the declining balance method (with transition to the straight line method if the amount thus produced was higher than with the declining balance method), largely in accordance with the useful lives recognized by the tax authorities. In Germany, minor assets with an acquisition cost of up to EUR 410 are fully written off in the year of acquisition. A similar approach is taken abroad in comparable cases. In some cases, a collective item is formed for the year for minor assets, for which the acqui-sition or production cost for the individual asset exceed EUR 150 but not EUR 1,000, which is written off as a cost evenly over five years.

The value of financial assets is not to exceed their acquisition cost where no lower values are called for. Permanent decreases in the value of fixed assets are accounted for by impair-ment losses.

Current assets are valued in accordance with Sections 253 and 256 of the Commercial Code. The production cost of inventories includes appropriate manufacturing overheads observing the production cost limits set by the tax authorities; interest on borrowed capital is not capitalized. Apparent inventory risks are accounted for through loss-free valuation. Adequate specific and general provisions are formed to cover risks in accounts receivable.

Transactions in foreign currencies are translated at the mean spot exchange rate at the time of the transaction for the sake of simplicity and at the monthly average rate in some cases.

106



Pension provisions are calculated based on actuarial reports. The pension provisions of the German companies are formed based on Section 6a of the Income Tax Act. They take into account the current mortality tables of Prof. Klaus Heubeck, with the simplification rule of Section 253 (2), sent. 2, of the Commercial Code applied in conjunction with the interest rate forecast as of October 31, 2016, by the German Central Bank for a remaining maturity of 15 years as of December 31, 2016 (4.01%, previous year: 3.89%). In addition, the provisions are based on an expected increase in wages and salaries of 2.9% (previous year: 3.0%), and an expected pension increase of 1.6% (previous year: 1.5%). The pension obligations of the foreign companies are assessed on the basis of the respective national regulations, and are not of material importance. The difference in accordance with Section 253 (6) of the Commercial Code is EUR 48 million.

Excess coverage within the meaning of Section 67 (1), sent. 2, of the Introductory Act to the German Commercial Code (EGHGB) comprises pension provisions of EUR 1,000. Assets within the meaning of Section 246 (2), sent. 2, of the Commercial Code of EUR 23 million were set off against corresponding provisions for pension obligations.

Provisions are recognized at the settlement amount necessary based on prudent commercial judgment. The provisions for long service anniversaries are also calculated based on the values stated for interest rates and wage and salary increases. Expected price increases of 1.6% are taken into account under “Other provisions”.

Liabilities are recognized at their settlement amount.

On account of an asset surplus in deferred taxes from individual financial statements, the deferred taxes are formed only as provided for by Section 306 of the Commercial Code. Deferred tax assets and liabilities from consolidation transactions are set off against one another, leaving an excess of liabilities. As compared to the previous year, this was decreased by EUR 35 million, to EUR 24 million. Tax rates specific to the individual companies are applied.

Valuation units within the meaning of Section 254 of the Commercial Code are formed to a minor extent. In these cases, the freezing method is applied.

Currency translationThe currency translation of items in foreign currencies on the balance sheets of the consoli-dated companies is based on Section 256a of the Commercial Code. Where not already drawn up in euros, the balance sheets of the foreign subsidiaries are translated based on the modified closing rate method of Section 308a of the Commercial Code. Movements in the consolidated statement of changes in fixed assets are translated at the average exchange rate for the year.


107


Consolidation principlesThe annual financial statements of all consolidated companies are compiled as of the date of the consolidated financial statements. Upon consolidation for the first time, the acquisition cost and investment book values are set off against the proportional equity in the capital consolidation based on the principles of the revaluation method. Initial consolidation is carried out on the date on which the company became a subsidiary. The fair value of the acquired assets, debts, accruals and deferrals, and special items acquired is derived as far as possible from market prices within the context of comparable transactions. The remaining differences on the assets side are recognized as goodwill and written off as expense in the subsequent years pursuant to Section 309 (1) of the Commercial Code. The amortization takes place based on the straight line method and a useful life of at most five years. The same applies to the companies consolidated at equity. Differences on the liabilities side are recognized under the item “Difference due to capital consolidation” after equity and treated in accordance with Section 309 (2) of the Commercial Code.

All receivables and payables between consolidated companies are calculated to net and profits and losses on intercompany transactions are eliminated, as are intercompany expenses and income. Deferred taxes are allowed for in the event of differences resulting from consolidation that are expected to be eliminated in subsequent financial years.

Profits on intercompany transactions with companies consolidated at equity are not eliminated.

Other informationLiabilities amount to EUR 3,436 million. Based on remaining maturity, the individual items are structured as shown in Table 1.

TABLE 1: LIABILITIESIn EUR million

Payable withinone year

(previous year)

Payable afterone year

(previous year)

Payable after more than 5 years

(previous year)

Liabilities due to banks outside the Oetker Group 352 (406) 559 (705) 207 (276)

Liabilities due to affi liated banks 10 (10)

Advance payments received 9 (8)

Accounts payable (trade) 592 (568) 2 (3)

Accounts payable to affi liated companies (apart from banks) 20 (5)

Miscellaneous liabilities 956 (723) 937 (948) 430 (516)

Total 1,938 (1,719) 1,498 (1,657) 638 (792)

No securities requiring disclosure were granted for these liabilities.


107


Consolidation principlesThe annual financial statements of all consolidated companies are compiled as of the date of the consolidated financial statements. Upon consolidation for the first time, the acquisition cost and investment book values are set off against the proportional equity in the capital consolidation based on the principles of the revaluation method. Initial consolidation is carried out on the date on which the company became a subsidiary. The fair value of the acquired assets, debts, accruals and deferrals, and special items acquired is derived as far as possible from market prices within the context of comparable transactions. The remaining differences on the assets side are recognized as goodwill and written off as expense in the subsequent years pursuant to Section 309 (1) of the Commercial Code. The amortization takes place based on the straight line method and a useful life of at most five years. The same applies to the companies consolidated at equity. Differences on the liabilities side are recognized under the item “Difference due to capital consolidation” after equity and treated in accordance with Section 309 (2) of the Commercial Code.

All receivables and payables between consolidated companies are calculated to net and profits and losses on intercompany transactions are eliminated, as are intercompany expenses and income. Deferred taxes are allowed for in the event of differences resulting from consolidation that are expected to be eliminated in subsequent financial years.

Profits on intercompany transactions with companies consolidated at equity are not eliminated.

Other informationLiabilities amount to EUR 3,436 million. Based on remaining maturity, the individual items are structured as shown in Table 1.

TABLE 1: LIABILITIESIn EUR million

Payable withinone year

(previous year)

Payable afterone year

(previous year)

Payable after more than 5 years

(previous year)

Liabilities due to banks outside the Oetker Group 352 (406) 559 (705) 207 (276)

Liabilities due to affi liated banks 10 (10)

Advance payments received 9 (8)

Accounts payable (trade) 592 (568) 2 (3)

Accounts payable to affi liated companies (apart from banks) 20 (5)

Miscellaneous liabilities 956 (723) 937 (948) 430 (516)

Total 1,938 (1,719) 1,498 (1,657) 638 (792)

No securities requiring disclosure were granted for these liabilities.

108



On the balance sheet date, the following contingent liabilities pursuant to Section 251 of the Commercial Code existed:

TABLE 2: CONTINGENT LIABILITIESIn EUR million 2015 2016

Liabilities from guarantees 15 17

Liabilities from warranties 4 57

Thereof due to associated companies 40

Risks arising from claims with respect to contingent liabilities are not anticipated given the creditworthiness of the debtor concerned.

The other financial obligations pursuant to Section 314 (1), no. 2a, of the Commercial Code total EUR 3,840 million, of which EUR 900 million is for next year. This includes the longer- term charter contracts that are typical for the Shipping Division, with obligations of EUR 2,442 million and EUR 153 million for obligations under shipbuilding contracts. Off-balance-sheet transactions – beyond the obligations set out above in the Shipping Division – were negligible in view of the financial position of the Oetker Group.

As companies operating internationally, Dr. August Oetker KG and its subsidiaries are exposed to interest rate, price, and currency risks. To mitigate these risks, Dr. August Oetker KG has, in particular, concluded contracts in derivative financial instruments (futures, swaps, and options). As of the balance sheet date forward exchange purchases / sales existed with a transaction volume of EUR 118 million, and a fair value of EUR 1 million. In addition, there were call and put options for the purchase and / or sale of bunker oil with a volume of 416,700 MT each. The net positions have a fair value of EUR 14 million.

Reserves of EUR 0.4 million were formed for the forward transactions, swaps, and options not included in the valuation units.

The derivative financial instruments are valued based on certain assumptions and valuation models, such as the present value method, Black-Scholes, or Heath-Jarrow-Morton.

The workforce of the companies consolidated in the Oetker Group rose during the year by 4.2% to 32,078 employees (previous year: 30,787). The Food Division increased its headcount from 14,478 to 15,368. In the Beer and Nonalcoholic Beverages Division, the number of employees rose from 5,894 to 5,986. The Sparkling Wine, Wine and Spirits Division recorded a slight decrease in personnel from 1,972 to 1,922 employees. The headcount in the Ship-ping Division rose from 5,960 to 6,300. The workforce in the Other Interests Division grew from 2,482 to 2,503 employees.


109


The differential amount between the corresponding carrying amounts and the share of equity of all associated companies included amounts to EUR 1 million.

The total fee pursuant to Section 314 (1), no. 9, of the Commercial Code amounts to EUR 2,232 thousand. Of this amount, EUR 1,772 thousand is attributable to annual account auditing services, EUR 144 thousand to other assurance services, EUR 132 thousand to tax consultancy services, and EUR 184 thousand to miscellaneous services.

Transactions with related companies and persons pursuant to Section 314 (1), no. 13, of the Commercial Code were immaterial in scope.

Income statementIn accordance with Section 13 (3), sent. 2, of the Disclosure Act, no income statement will be published. In the same application of the Disclosure Act to the management report, it also does not provide any explanations regarding the earnings situation or key financial indicators, with the exception of sales revenue. The income statement of the bank can be found in its separate annual report.

The disclosures required pursuant to Section 5 (5), sent. 3, of the Disclosure Act are published in a separate appendix – see Table 3.

TABLE 3: APPENDIX TO THE BALANCE SHEETPursuant to Section 13 (3), sent. 2, of the Disclosure Act in conjunction with Section 5 (5), sent. 3, of the Disclosure Act 2015 2016

a) External sales (in EUR ’000) 12,225,753 11,703,946

b) Income from investments (in EUR ’000) 86,534 80,030

c) Wages and salaries, social security contributions, expenditure on pensions and other benefi ts (in EUR ’000) 1,484,150 1,558,157

d) Number of employeesConverted into full-time employees, the average number of employees in 2016 was 30,851 (previous year: 29,557).

30,787 32,078

110



The sales revenue reported is broken down into geographically defined markets and business segments as shown in Table 4.

TABLE 4: BREAKDOWN OF SALES REVENUEIn EUR million 2015 2016

Distributed by region:

Germany 3,947 3,894

Rest of the EU 2,821 2,663

Rest of Europe 582 580

Rest of the world 4,875 4,567

Thereof shipping sales in international waters 4,212 3,868

Distributed by division:

Food 2,990 3,071

Beer and Nonalcoholic Beverages 1,966 1,901

Sparkling Wine, Wine and Spirits 689 502

Shipping 6,057 5,624

Other Interests 524 606

Adjusted for changes in the scope of consolidation, total sales revenue for 2016 was EUR 11,686 million, versus EUR 12,137 million for 2015. Upon application of the new definition of Section 277 of the Commercial Code as amended by the German Accounting Directive Implementation Act (BilRUG), sales revenue in the previous year would have totaled EUR 12,016 million.

Subsequent eventsWith the signing of the purchase agreement on March 14, 2017, the shares of the companies in the Shipping Division were sold to the Maersk Group. The sale is pending approval by the supervisory bodies and / or partners of both parties, as well as the antitrust authorities in all relevant jurisdictions.

Bielefeld, April 12, 2017 Dr. August Oetker KGGeneral Partners

Dr. Ottmar GastRichard Oetker (until December 31, 2016)



111

Report of the Auditors

We have audited the consolidated financial statements – consisting of the balance sheet, income statement, and notes – of Dr. August Oetker KG, Bielefeld, for the financial year from January 1 to December 31, 2016, taking into consideration the relevant accounting records and the group management report.

Pursuant to German commercial law, the legally appointed representatives of the parent company are responsible for keeping accounting records and for compiling the consolidated financial statements as well as the group management report. Our task as auditors is to arrive at an assessment of the consolidated financial statements and the group management report, taking the relevant accounting records into consideration.

We have conducted our audit of the consolidated financial statements in accordance with Section 317 of the German Commercial Code (HGB) and the professional standards laid down by the Institute of Public Auditors in Germany. Accordingly, the audit must be planned and conducted in such a way that it is possible to detect with an adequate degree of certainty any inaccuracies and infringements that may have a negative impact on the true and fair picture of the net worth, financial position, and earnings situation of the company presented in the consolidated financial statements and group management report, taking the principles of proper accounting into consideration.

The auditing procedures take account of specific knowledge of the company’s business activities, the general economic and legal environment, and possible sources of error. In the context of the audit, the effectiveness of the accounting-related internal audit system as well as the accuracy of the data contained in the accounting records, the consolidated financial statements, and the group management report are verified largely on the basis of spot checks. The audit also evaluates the annual accounts of the companies included in the annual financial statements, the delineation of the consolidated group, the accounting and consoli-dation principles, the appraisals made by the legally appointed representatives, and the over-all picture presented in the consolidated financial statements and the group management report. In our view, the audit provides an adequately sound basis for evaluation.

Our audit did not result in any objections.

In our considered opinion, the consolidated financial statements are in accord with the legal requirements, and convey a true and fair view of the net worth, financial position, and earnings situation of the group in compliance with proper accounting principles.

Report of the Auditors on the Complete Consolidated Financial Statements

112


Auditor’s Opinion

Publishing Information

Published by

Dr. August Oetker KG Lutterstraße 14 33617 Bielefeld Telephone: +49-521-1550 Fax: +49-521-1552-995Email: [email protected] Website: www.oetker-gruppe.de

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Public relations department

Design and production

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Dr. August Oetker KG andgroup companiesCover: Jever head officeStudio B, BremenPage 3: picture alliance / dpa / photographer: Bernd ThissenPages 8 – 11: iStockPages 16 – 17, 19: ShutterstockPages 24 – 25, 27: Plainpicture

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The group management report is consistent with the consolidated financial statements, is in accord with the legal requirements, accurately describes the situation of the group, and accurately presents the opportunities and risks inherent in future developments.

Bielefeld, April 13, 2017

PricewaterhouseCoopers GmbHWirtschaftsprüfungsgesellschaft

Peter KruppCertifi ed Public Accountant

Thomas AngeleCertifi ed Public Accountant

The Oetker Group2016 / 2017

For the Oetker Group, the reporting year 2016 has been largely satisfactory. The group is looking towards the future with optimism and the will to succeed. Actively managing the current transformation is a challenge that the group embraces wholeheartedly.

January Under the motto “A Piece of Home for 125 Years”, Dr. Oetker is

celebrating the 125th anniversary of the company. In addition

to a consumer sweepstakes, numerous anniversary products will

be launched onto the market throughout the course of the year.

The Radeberger Group starts marketing the Mexican beer

Sol in the restaurant business, with a strong focus on major cities

and metropolitan areas.

For its systematic and holistic healthcare management,

Budenheim is the first company in the Rhineland- Palatinate

chemical sector to be certified according to the “Premium Quality

Seal” of the BG RCI trade association.

A member of the Oetker Collection, the Brenners Park

Hotel & Spa, achieves first place in the category “Top Hotels in

Germany” in the TripAdvisor Travellers’ Choice Awards.

February Huge success for Henkell & Co. at the Berlin Wine Trophy: The

company’s sparkling wines win 12 gold medals. The awards

go to products from German wineries as well as to sparkling wines

from the European subsidiaries.

March The Pionier brand from the Radeberger Group, the first gluten-

free pilsner in Germany that is brewed according to the German

Beer Purity Law, will now be available exclusively at Edeka through-

out Germany.

The Oetker GroupHighlights 2016

MayThe Oetker Group donates 100,000 euros to SOS Children’s

Village for emergency relief following the earthquake disaster in

northern Ecuador.

Dr. Oetker inaugurates its new plant in Šimanovci (Serbia).

More than 100 products are manufactured at this location. They

mainly include baking ingredients, which are intended mostly for

the Serbian market, but also for Kosovo, Montenegro, Macedonia,

and Albania.

With the title “Setting Standards and Acting Sustainably”,

Hamburg Süd is the first container shipping company world-

wide to publish its sustainability report for the years 2014 and

2015 in accordance with the G4 standard of the Global Reporting

Initiative (GRI).

June A visit to the Bellevue Palace garden: In the course of the

annual Environment Week, German Federal President Gauck is in-

formed about the environmentally friendly, Budenheim-developed

ExtraPhos® process for regaining phosphorus from sewage sludge.

July For its environmental declaration, Budenheim is declared the

national winner of the Responsible Care Award in the “Communi-

cations” category. The jury describes the environmental declaration

as “highly professional, impressive, and an enhancement to the

image of the small to medium-sized business market”.

Travel + Leisure World’s Best Awards: In the Travel + Leisure

World’s Best Awards Survey, the Oetker Collection is awarded

multiple high marks by travelers, including as the best European

hotel brand in the luxury sector.

Hig

hlig

hts

2016

August At its location in Mettingen, Conditorei Coppenrath & Wiese

launches production of a new line of frozen and refrigerated

baked goods, with a focus on new, innovative products such as

cheesecakes, pies, crumbles, and tarts.

Launch of a new ad campaign for Berliner Pilsner: Since

August, it has been shown on TV, in movie theaters, on billboards,

and online. Among other things, it features murals that light

up entire building facades in the look of the new Berliner Pilsner

campaign.

During the Summer Olympics in Rio de Janeiro, Henkell is

the sparkling ambassador of the German Residence, which

during the games is the meeting place for a top-class mix of

athletes, officials, media representatives, and politicians.

Conversion and expansion of the Hamburg Süd head office

completed: After a construction phase of about two years,

Hamburg Süd employees move back into the “old new” head

office, which now meets all the requirements of a modern

work environment.

September “The Future Grows from Trust” – this is the title under which

Dr. Oetker publishes the company’s new sustainability report, in

accordance with the internationally recognized guidelines of the

Global Reporting Initiative (GRI G4).

The Martin Braun Group expands in Turkey: The company

acquires a majority stake in Polen Gida, the Turkish market leader

for baking ingredients.

EcoVadis, a network for the sustainability of supply chains,

awards the progressive sustainability management of Hamburg Süd

its highest possible rating, “Gold”.

World Travel Awards 2016: Le Bristol Paris from the Oetker

Collection receives the award “Best Hotel in France”.

October Wodka Gorbatschow announces a huge competition on the

design crowdsourcing platform jovoto. The winning design will

be chosen by the fan community. At the end of the year, the

Wodka Gorbatschow Jovoto Limited Edition will be launched onto

the market.

A year after an extensive renovation, the Oetker Collection

restaurant Céleste at The Lanesborough receives its first

Michelin star.

The Oetker Group 2016 / 2017 Gap Year Program commences,

offering all interested students the chance to complete two

to three internships in different divisions of the Oetker Group

between their bachelor’s and master’s degrees.

November The German food magazine “Lebensmittel Zeitung” honors

Dr. Oetker with the coveted Goldener Zuckerhut award. The

award is granted to outstanding companies and personalities

from the consumer products industry.

In a representative survey by the German industry publication

“Lebensmittel Praxis”, consumers vote the brand i heart WINES as

the Product of the Year 2017 in the category “Wine, sparkling

wine and champagne”. The wine, with its eye-catching “i heart” label,

is available on the market in four of the most popular varietals.

Budenheim completes a new plant for the production of

ammonium polyphosphates at its China location. As a premium

supplier of fire-retardant coatings, it also manufactures the

products FR CROS® and BUDIT® as key components for the pro-

duction of halogen-free and therefore environmentally friendly

flame retardants.

December Ute Gerbaulet is appointed General Partner of Bankhaus

Lampe KG.

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Annual Report 2016 - Bankhaus LampeUnder the Oetker Group umbrella, Dr. August Oetker KG has united...

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Transcript of Annual Report 2016 - Bankhaus LampeUnder the Oetker Group umbrella, Dr. August Oetker KG has united...