OHB AG in Figures · BWB German Federal Office of Defense Technology and Procurement) BDLI German...

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The OHB Group at a glance �

Revenues

Total revenues

EBITDA

EBIT

EBT

Net income for the period

Earnings per share (EUR)

Total assets

Equity

Cash flow from operating activities

Equity investments

thereof capital spending

Employees on December 31

2013

680,121

700,063

52,803

36,353

29,728

19,436

1.12

585,407

132,705

–34,111

23,632

1,046

2,412

2012

615,982

632,729

46,110

30,997

23,979

14,818

0.85

538,757

117,332

17,559

21,571

760

2,493

2011

555,689

555,292

43,101

27,276

19,517

13,523

0.78

528,239

113,577

21,137

15,533

156

2,352

2010

425,448

453,323

33,688

22,730

15,384

9,642

0.55

466,396

105,170

42,123

19,126

6,543

1,677

Closing price

Year high

Year low

Market capitalization at year-end

Number of shares

2013

17.55

18.63

14.76

307 million

17,468,096

2014

19.70

25.06

17.45

344 million

17,468,096

2012

15.15

16.50

11.16

265 million

17,468,096

2011

11.40

17.45

8.25

199 million

17,468,096

2010

16.60

18.34

11.50

290 million

17,468,096

The Stock in EUR

The Group in EUR 000s

OHB AG in Figures

Glossary

Calendar of events in 2015

Annual press conference and release of annual report for 2014, Bremen March 19

Analyst conference, Frankfurt/Main March 19

3 month report/analyst conference call May 13

Annual general meeting, Bremen May 21

6 month report/analyst conference call August 13

9 month report/analyst conference call November 11

Analyst presentation at Deutsches Eigenkapitalforum, Frankfurt/Main November 23–25

2014

728,147

772,954

53,416

40,400

33,874

25,713

1.48

640,613

147,199

–35,020

25,048

40

2,086

OH

B A

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Ann

ual R

epor

t 201

4OHB AG

Karl-Ferdinand-Braun-Str. 8

28359 Bremen, Germany

Phone: +49 (0)421 2020-8

Fax: +49 (0)421 2020-613

[email protected]

www.ohb.de

Annual Report 2014

The OHB Group at a glance

OHB AG is a European space flight and technology group and one of the most important independent forces in Euro-pean aviation/aerospace. With more than 30 years of experience in developing and executing innovative space technology systems and structures and its range of specific aviation/aerospace and telematics products, the OHB Group is superbly positioned to face international competition.

“Form follows function” - this is the principle under which OHB AG has been successfully positioning itself in Europe over the past few years. These strategic decisions on loca-tions and the deliberate separation of functions across Europe allow the Group to participate in numerous Euro-pean programs and missions. The two “Space Systems” and “Aerospace + Industrial Products” business units reflect the convergence of these activities and the focus on specific core skills.

The “Space Systems” business unit focuses on developing and executing space projects. In particular, it is responsible for developing and fabricating low-orbiting and geostation-ary small satellites for navigation, research, communica-

tions and earth observation including scientific payloads. Its manned space flight activities chiefly entail the assembly and fitting of the International Space Station ISS, Columbus and ATV. The exploration segment works on studies and models for exploring our solar system, primarily the moon and Mars. In addition, efficient reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance.

The “Aerospace + Industrial Products” business unit is primarily responsible for fabricating aviation and space products as well as other industrial activities. In this area, OHB has established itself as a significant supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German supplier of components for the Ariane-5 program. In addition, it is an experienced vendor of mechatronic systems for antennas and telescopes and is involved in major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities.

OHB System AG, Bremen & Munich, Germany

Space Systems Aerospace + Industrial Products

MT Aerospace AG,Augsburg, Germany

megatel GmbH, Bremen, Germany

OHB Sweden AB, Stockholm, Sweden

OHB Teledata GmbH, Bremen, Germany

Antwerp Space N.V., Antwerp, Belgium

MT Aerospace Guyane S.A.S., Kourou, French Guiana

LuxSpace Sàrl, Betzdorf, Luxembourg

MT Mechatronics GmbH, Mainz, Germany

CGS S.p.A., Milan, Italy

74.9 %

MT M

echatronics Gm

bH

OHB Group in Europe

OHB System

AG München

CGS S.p.A

.

OHB S

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OH

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MT

Aero

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S.A.

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MT Mecatronica Limita

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Santiago de Chile

LuxSpace Sàrl

Antwerp Space N.V.

MT

Aer

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Glossary

AQAP Allied Quality Assurance Publications; series of standards developed by NATA from the military standard for quality assurance systems

ARTES-7 Long-term ESA plan for developing a European communications satellite network using the latest laser communications

ASI Agenzia Spaziale Italiana; Italian space agency

ATV Automated Transfer Vehicle; unmanned space transporter for supply flights to the ISS

BAAINBw Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (formerly BWB German Federal Office of Defense Technology and Procurement)

BDLI German Federal Aviation and Space Industry Association

BIOMASS Earth observation programme of the European Space Agency

Blue Dot Name of the 6-month mission launched in May 2014 by ESA astronaut Alexander Gerst being on board the International Space Station ISS

BMVg German Federal Ministry of Defense

BMWi German Federal Ministry of Economics and Technology

CFRP Carbon fiber-reinforced plastic

COLUMBUS Name of the European module of the International Space Station

CPS Chemical Propulsion System

DAX German bluechip share index, tracking the performance of the 30 largest shares listed on the Frankfurt stock exchange

DEKRA Testing body for determining the roadworthiness of vehicles, certification services, safety checks and examination of technical equipment

Design-to-cost Designing and Engineering in terms of costs considering the given circumstances

DLR Deutsches Zentrum für Luft- und Raumfahrt; German Space Agency

Dream Chaser® The Dream Chaser Space System mission is to provide NASA with a transportation service for crew and cargo to the International Space Station

EBIT Earnings before interest and taxes

EBITDA Earnings before interest, taxes, depreciation and amortization

EBT Earnings before taxes

EDRS-C Dedicated satellite for the European Data Relay Satellite System for implementing a data network in space using optical satellite communications

Electra Fully electrically driven satellite based on the SmallGEO platform

EnMAP Environmental Mapping and Analysis Programme; satellite for hyperspectral terrestrial observation

EOEP ESA Earth Observation Envelope Programme

EPS Earnings per share

ESA European Space Agency

EU European Union

EUMETSAT European Organisation for the Exploration of Meteorological Satellites;

European Southern Observatory Intergovernmental research organisation for astronomy that has built and operated some of the largest and most technologically-advanced telescopes in the world

ExoMars Scientific mission of the European Space Agency and ROSCOSMOS to explore the Mars

FOC Full operational capability; final satellite configuration for the operation of a system

Galileo The Full Operational Capability phase of the Galileo programme is managed and fully funded by the European Union. The Commission and ESA have signed a delegation agreement by which ESA acts as design and procurement agent on behalf of the Commission. The views expressed in this Press Release can in no way be taken to reflect the official opinion of the European Union and/or ESA.“Galileo“ is a trademark subject to OHIM application number 002742237 by EU and ESA.

Heinrich Hertz Satellite mission based on the SmallGEO platform to explore new communications technologies in space

Hispasat AG1 Hispasat Advanced Generation 1

HGB German Commercial Code

IAC International Astronautical Congress; yearly space symposium that takes place in different event locations

IAS International Accounting Standards

IFRS International Financial Reporting Standards

ISS International Space Station

MTG Meteosat Third Generation; programme to develop, build and launch third-generation weather satellites

NADCAP National Aerospace and Defense Contractors Accreditation Programme; certification of special aviation,space and defense processes

NASA National Aeronautics and Space Administration; US space agency

OPSIS OPtical System for Imaging and Surveillance, satellite mission operated by the Italian space agency ASI

Philae Lander in the Rosetta comet mission with 10 instruments on board to examine material collected from the comet 67P/Tschurjumow-Gerasimenko

R+D Research and development

REACH Registration, Evaluation, Authorization of Chemicals; EU chemicals regulation

RoHS Restriction of the use of certain hazardous sub-stances; EU directive to limit the use of certain dangerous materials in electrical and electronic devices

ROSCOSMOS Space Agency of Russia

SAR-Lupe Synthetic Aperture Radar-Lupe; system of small satellites with a process for enhancing the quality of radar images

SmallGEOs Small geostationary satellites for telecom-munications and multimedia applications

Rosetta Mission organized by the European Space Agency ESA to explore the origins of our solar system; the mission comprises an orbiter and the Philae lander.

TecDAX German stock index, that tracks the performance of the 30 largest German companies from the technology sector in terms of order book turnover and market capitalization

Telematics A system linking telecommunications and IT

TET Technology mule; core element of the national “On-Orbit Verification of New Techniques and Technologies” project

TRL Technology Readiness Level; is a measure used to assess the maturity of evolving technologies

USD US-Dollar

1

OHB AG | 2014

Highlights 2014

14

24 28

31

38

59 Internalcontrolandriskmanagement 59 Opportunityandriskreport 62 Compensationreport 62 DisclosuresinaccordancewithSection315(4) oftheGermanCommercialCode 63 Corporategovernancedeclaration

64 Corporategovernance

66 Consolidatedfinancialstatements 67 Consolidatedincomestatement 67 Consolidatedstatementofcomprehensiveincome 68 Consolidatedbalancesheet 69 Consolidatedcashflowstatement 70 Consolidatedstatementofchangesinequity 70 Notestotheconsolidatedfinancialstatements 93 Auditor’scertificate

94 Otherdisclosures 94 Contact/DisclosuresrequiredbyGermanlaw C Glossary/Calendarofeventsin2015

02 Lettertotheshareholders 05 ReportoftheSupervisoryBoard 10 Obituary 12 SmallGEO 16 Interview 20 Highlights2014 40 OHBstock 44 Groupmanagementreport

45 Businessperformanceandunderlyingconditions 47 Businessperformance 52 Salesandorders 52 Resultsofoperations 53 Assetsandfinancialcondition 54 Employees 54 Researchanddevelopment 56 Quality,environmentalmanagement, dataprotectionandprocesses 57 Significanteventsoccurringafterthe endoftheperiodunderreview 58 Outlook

CONTENTS

OHB AG | 2014

Ulrich Schulz,

bornin1951,engineer,memberoftheManagementBoardofOHBAGsince2000

Dr. Fritz Merkle,

bornin1950,Dipl.-Phys.,memberoftheManagementBoardofOHBAGsince2014

Marco R. Fuchs,

bornin1962,attorney,ChiefExecutiveOfficerofOHBAGsince2000

OHB AG | 2014

03

OHB has been ESA’s third European systems integrator for a number of years now. Driven by our strategy of continuous and controlled growth, OHB has evolved into a European space company over the last few decades. The focus on our successful European-wide space activities particu-larly became evident to the outside observer in several different ways last year:

1. Deconsolidation of the aviation activities of Aerotech Peissenberg (ATP) following OHB AG’s decision not to subscribe to the issue of new share capital in May 2014, thus assuming a majority interest.

2. Merger of the Group’s two space development and production companies OHB System in Bremen and Kayser-Threde in Munich in September 2014.

3. Preparation of OHB AG’s conversion into a Societas Europaea (SE) by mid 2015.

Underpinned by a further record in total revenues and earnings, the Group is leveraging its solid and reinforced capital base to react flexibly to the swift organic growth being achieved by individ-ual subsidiaries.

Speed and flexibility characterized our Group last year when the 4M – Manfred Memorial Moon Mission was executed within the space of a few months. This had been organized in memory of my father – a visionary and the founder of our Company – and was developed and successfully completed on a very small budget to prepare for future lunar missions. My father passed away completely unexpectedly at the end of April last year.

The combination of this ability to drive new developments forward and to master new challenges in a fast-changing environment swiftly, flexibly and unconventionally on the strength of our long-standing expertise and experience will help us to tackle future tasks just as efficiently and suc-cessfully. One increasingly important aspect in this regard is the integration and coordination within the Group of state-of-the-art research and development projects such as Electra, Heinrich Hertz and PLATO as well as industrial production of a total of 22 Galileo*-FOC satellites and 6–8 Ariane 5 booster casing sets a year.

The strategies and focus recently adopted at the 2014 ESA Ministerial Council on “Europe’s access to space”, the development of the ARIANE 6 and Vega C launchers and Europe’s space exploration strategy with the three main aspects LEO (low earth orbit), the moon and Mars harmonize particularly well with our own thrusts and strategies. What is more, we expect to benefit from the increased German contribution to the ESA budget in 2015 and beyond.

However, what is decisive for you as our shareholders is the fact that your Company’s business success is also reflected in the dividend distributed to you. The Management Board and the Supervisory Board will again be asking the shareholders to approve a dividend of EUR 0.37 per share at this year’s annual general meeting. Everyone investing in equities last year generally

Dear Shareholders, Customers and Business associates,

Letter to the shareholders

* see Glossary

OHB AG | 2014

04

made a fortunate decision. Once again, equities as an asset class offered a lucrative alternative to other instruments and particularly benefited from the historically low interest rates. OHB stock also performed well and with a gain of 12% last year outstripped the DAX.

Outlook for 2015 Looking forward to 2015, the OHB Group will be maintaining the growth strategy which it has adopted and will be able to continue operating at high capacity utilization in all areas. Based on the current high order backlog of around EUR 2.1 billion (previous year: EUR 2.3 billion), the Management Board expects a substantial increase in consolidated total revenues to EUR 800 mil-lion in 2015 as a whole, supported by both business units, whose total revenues will be up on 2014 levels. At over EUR 53 million and more than EUR 40 million, respectively, EBITDA and EBIT should also remain stable compared with the previous year.

I would like to take this opportunity to thank all our staff at all of the Group’s companies for their services, dedication and innovative ideas. If it were not for them, we would not have achieved last year’s successes. All business units have contributed to the Group’s growth and competitiveness. Together, we will be working with enthusiasm and vigor towards continuing our European success story.

Bremen, March 18, 2015

Marco R. Fuchs, Chairman of the Management Board

Letter to the shareholders

OHB AG | 2014

05ReportoftheSupervisoryBoard

Dear Shareholders,

Inseveraldifferentrespects,2014wasaveryunusualyearforOHBinitshistoryspanningmorethanthirtyyears.Overshadowedbythecompletelyunexpectedlossofourbelovedpartner,visionarypioneer,innovativefounderandlong-standingcommittedcompanionProf.ManfredFuchs,itwasalsoayearofchangeandconcentrationfortheOHBGroup.

ThecarefulandjudiciouspreparationsforconvertingOHGAGintoaEuropeanSEcalledforongo-ingassistanceandsupervision.ThetransitionfromdevelopmentworktovolumeproductionintheGalileo*satelliteprojectandarenewedfocusonthestrengthsofOHB’svisionaryandinnova-tivespiritofdevelopmentreflectthediversityandqualityofthisGroup.Thinkingup,planningandspontaneouslyimplementingnewandunconventionalyetinexpensivemissionslookingfarintothefuture,suchasthe“ManfredMemorialMoonMission”(4M),whichtookcompletelynewstepsinresearch–thisiswhatcharacterizesOHB.

Thisfocusonthestrengthsandrootsofspacetechnologyisalsoreflectedinthepoolingofexpertiseandexperienceinpotentunitsandtheeliminationofactivitiesoutsidethesecoreskills.Oneaspectofthisistheconcentrationonprofitablegrowthbyobtainingfollow-upcontractsfromexistingcustomersamongotherthings.

Christa Fuchs,

ChairwomanoftheSupervisoryBoardofOHBAG,MemberoftheSupervisoryBoardsince2002,bornin1938,businesswoman,ManagingshareholderofVOLPAIABeteiligungs-GmbH

Robert Wethmar,

MemberoftheSupervisoryBoardsince2012,bornin1961,attorneyatlaw,PartneratlawfirmTaylorWessing

Prof. Heinz Stoewer,

MemberoftheSupervisoryBoardsince2005,bornin1940,Dipl.-Ing.,M.Sc.,Professorem.SpaceSystemsEngineering,TechnicalUniversityofDelft,Netherlands,ManagingdirectorofSpaceAssociatesGmbH

*seeGlossary

OHB AG | 2014

06

OHBAGtogetherwithitsSupervisoryBoardandManagementBoardiscommittedtogoodandresponsiblecorporategovernance.ThiscommitmentissharedbythemajorityshareholdersandtheGroup’sentiremanagement.Inadditiontoobservinghighstatutoryandethicalstandards,employeeswiththeirkeensenseofresponsibilityattachtopprioritytominimizingenvironmentalimpact,theachievementofthegreatestpossiblequalityaswellasthesafety,healthandequalityofallstaff.Lookingaheadoverthenextfewyears,oneobjectivewillbetointerestagreaterpro-portionofwomenintheexcitingandinterestingcareeropportunitiesawaitingtheminaviation/aerospace,asectorwhichisstillheavilydominatedbymen,andtoencouragemoregirlsandwomentoembarkonatechnicalcareer.Inthisrespect,thenowtraditional“Girls’Day”,whichtheGrouporganizesandwhichwillbetakingplacethisyearonApril23,2015,merelymarksthebeginningofawholeseriesofactivitiesandmeasuresaimedatarousingwomen’sinterestinacareerinthisindustry.Specialpartnershipswithuniversitiesandtertiary-educationinstitutionsaswellastrainingandskillsdevelopmentforwomenandthetargeteddevelopmentoffemalestaffrightuptothemanagementandexecutivelevelwillprovideadditionalongoingsupportforthisprograminthefuture.

In2014,theSupervisoryBoardperformeditsdutieswithgreatcareinaccordancewiththeappli-cablestatutoryrequirements,theprovisionsoftheCompany’sbylawsanditsrulesofconduct.TheSupervisoryBoardisresponsibleforoverseeingtheManagementBoardbymonitoringitsactivitiesandexertinginfluence.ThislatterfunctionplaysadecisiveroleintheCompany’ssuc-cessnotonlyintheshorttermbutalsoonamediumandlong-termbasis.

TheManagementBoardbriefedtheSupervisoryBoardregularlyandcomprehensivelyonorderintake,totalrevenues,earningsandcapacityutilizationatOHBAGaswellaswithintheindividualbusinessunits,particularlyupdatingitontheprogressmadeinintegratingrecentacquisitions.TheManagementBoardansweredalloftheSupervisoryBoard’squestionsinfullandcomprehen-sively.TheSupervisoryBoardsoughtandreceivedongoinginformationoncorporateplanning,strategicdevelopmentandthemainacquisitionprojectsandadvisedtheManagementBoardonindividualmattersrelatingtocorporateacquisitionsandprojecttenders.

TheSupervisoryBoardheldsixscheduledmeetingsatwhichitdeliberatedontheGroup’sperfor-mance,thereportssubmittedbytheManagementBoard,thestatusofcurrentprojects,pendingtenderprocesses,plannedacquisitions,theprogressmadeinintegratingthenewlyacquiredinvestmentsandthecorporatebudgetfor2015.ScheduledmeetingsoftheSupervisoryBoardin2014wereheldonFebruary12,March19,May27,July2,September22andDecember17attheCompany’sheadquartersinBremen.

DetaileddiscussionontherestructuringoftheMTSubgroup,particularlywithrespecttothefutureofAerotechPeissenbergGmbH&Co.KG(ATP),andtheManagementBoard’sreportontheresultsoftheprecedingreviewandcurrentstatusoftheplannedmergerbetweenOHBSystemAGandErwinKayser-ThredeGmbHwerethemainitemsontheagendaofthefirstSupervisoryBoardmeetingoftheyearheldonFebruary12,2014.

ReportoftheSupervisoryBoard

OHB AG | 2014


ThemeetingheldonMarch19,2014waschieflydevotedtotheManagementBoard’sreportontheGroup’sperformanceintheperiodfromJanuary1,2013throughDecember31,2013,thecurrentstateofbusinessandtheforecastsfor2014.Forthispurpose,theManagementBoardsubmittedtheannualfinancialstatements,theconsolidatedfinancialstatementsandthemanagementreportsforOHBAGandtheGroupfor2013.

ThestatutoryauditorsfromBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,personallypre-sentedtheauditreportandelaboratedonitatthismeeting.TheSupervisoryBoardapprovedtheannualfinancialstatementsandtheconsolidatedfinancialstatementsofOHBAG.TheReportoftheSupervisoryBoardincludingthedeclarationofconsentoftheRelatedPartiesReportpreparedbytheManagementBoardwasalsoapproved.Atthismeeting,theagendaofthe14thannualgeneralmeeting,whichtookplaceonJuly2,includingproposedresolutionsfortheutili-zationoftheunappropriatedsurplusandtheretentionofadividendofEUR0.37wasfinalized.

AtthemeetingheldonMay27,2014,theManagementBoardreportedontheGroup’sbusinessperformanceinthefirstquarterof2014aswellasthecurrentstateofbusiness.Mr.MarcoFuchsparticularlydescribedthecurrentstatusoftheGalileoproject,reportingthatthetwosatellitesFM1and2hadarrivedsafelyinKourouandwerebeingpreparedforlaunching.Moreover,heprovidedabriefoverviewonthemergerbetweenOHBSystemAGandErwinKayser-ThredeGmbH.Inaddition,theManagementBoardproposedthatDr.FritzMerkle,themanagingdirectorofErwinKayser-ThredeGmbH,shouldbeappointedasanadditionalmemberoftheManagementBoard.Inthisposition,hewastobeparticularlyresponsibleforbusinessdevelopmentatthelevelofOHBAGtostrengthentheOHBcompanies’competitivepositionasaEuropeanspacegroup.TheSupervisoryBoardapprovedDr.Merkle’sappointmenteffectiveJune1,2014foraperiodofthreeyearsexpiringMay31,2017.Atthesametime,heretainedhispositionaschair-manofthemanagementofErwinKayser-ThredeGmbH.Mr.MarcoFuchsadditionallyproposedtheestablishmentofanexecutivecommitteecomprisingthemembersoftheManagementBoardplussixfurtherexecutivesfromOHBAGtodealwithcross-companystrategicmattersbelowtheManagementBoardlevel.TheSupervisoryBoardgaveitsconsenttothisplan.Mr.FuchsreportedthatasofMay13,2014OHBAGheldonlyaminorityinterestinAerotechPeissenbergGmbH&Co.KG.

InthemeetingheldonJuly2,2014,theManagementBoardandtheSupervisoryBoardengagedinapreliminaryreviewofthe14thannualgeneralmeeting,whichhadbeenheldonthesamedayandhadbeencharacterizedbyaconstructiveandopenatmosphere.

Inaddition,theManagementBoardreportedonbusinessperformanceinthefirsthalfof2014aswellasthesituationatMTAerospaceAG(MT),Augsburg,withparticularattentionpaidtotheopportunitiesandrisksofapossibleinvestmentinAriane5ME/Ariane6.

*seeGlossary

OHB AG | 2014

08

ThemainbusinessconductedattheSupervisoryBoard’smeetingofSeptember22,2014entailedbriefreportsontheindividualmajorprojectsaswellasstatusreportsonconditionsatthesub-sidiaries.TheManagementBoardofOHBAGalsoreportedonthecurrentstatusofthemergerbetweenOHBSystemAGandErwinKayser-ThredeGmbH,whichwasscheduledforSeptember1,2014butfinanciallyalreadyeffectivewithretrospectiveeffectasfromJanuary1,2014on.

HeldshortlybeforetheendoftheyearonDecember17,2014,theSupervisoryBoard’ssixthmeetingdealtwiththeGroup’sbusinessperformanceinthethirdquarterof2014andthefirstninemonthsof2014,thecurrentstateofbusinessandexpectedearningsfor2014.Inaddition,theprovisionalbudgetfor2015waspresented.Areportwasalsosubmittedconcerningtheplannedestablishmentofinternalauditingstructuresandtheproceduralrulestobeadoptedforinternalauditing.Inthisconnection,theSupervisoryBoarddiscussedtherelationshipbetweentheMan-agementBoardandinternalauditingandtheeffectsonfutureresponsibility.

TheManagementBoardandtheLegaldepartmenttabledthecompliancereportfor2014andbriefedtheManagementBoardonmaterialevents.TheManagementBoardandtheSupervisoryBoardalsojointlyissuedthedeclarationofconformitytotheGermanCorporateGovernanceCodestipulatedbySection161oftheStockCorporationAct.

CorporategovernanceTheManagementBoardalsosubmittedacorporategovernancereporttotheSupervisoryBoardinaccordancewithSection3.10oftheGermanCorporateGovernanceCodeinconnectionwiththecorporategovernancedeclarationstipulatedbySection289aoftheGermanCommercialCode.ThecorporategovernancedeclarationcanbeexaminedatOHBAG’swebsite.TheSupervisoryBoardregularlydiscussedtheapplicationandfurtherdevelopmentoftheprinciplesofcorporategovernancewithintheCompany.OnDecember17,2014,theManagementBoardandtheSuper-visoryBoardissuedanupdateddeclarationofconformanceinaccordancewithSection161oftheGermanStockCorporationActandmadethisavailablepermanentlytoshareholdersattheCom-pany’swebsite.

Approvaloftheannualfinancialstatementsfor2014Theannualfinancialstatements,theconsolidatedfinancialstatementsandtherelatedmanage-mentreportsofOHBAGfor2014wereauditedbyBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,andissuedwithanunqualifiedauditor’sreport.

ThesedocumentsweremadeavailabletoallmembersoftheSupervisoryBoardinsufficienttime.AttheSupervisoryBoard’sbalancesheetmeetingheldonMarch18,2015,thesedocumentswerediscussedinthepresenceandwiththeinvolvementofthestatutoryauditor.

TheSupervisoryBoarddidnotraiseanyobjectionsandacceptedtheresultsoftheaudit.Itapprovedtheconsolidatedfinancialstatements,asaresultofwhichtheyarenowdeemedtohavebeendulyadopted.TheSupervisoryBoardconcurredwiththeManagementBoard’sproposalfor

ReportoftheSupervisoryBoard

OHB AG | 2014


theallocationoftheCompany’sunappropriatedsurplus.TherelatedpartiesreportpreparedbytheManagementBoardwasauditedbyBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,andgiventhefollowingunqualifiedauditcertificate:

“Havingexaminedandassessedtherelatedpartiesreportinaccordancewithourduties,weherebyconfirmthat1.thefactsstatedinthereportarecorrect,2.theCompany’stransactionsasdetailedintheReportwerenotunreasonablyhigh.”

TheSupervisoryBoardraisesnoobjectionsfollowingitsownexaminationandthereforeapprovestheManagementBoard’srelatedpartiesreport.

TheSupervisoryBoardwishestothanktheManagementBoard,allemployeesandtheemployeerepresentativesfortheworkperformed.TheyhaveoncemoremadeacontributiontoaverysuccessfulyearforOHBAG.

Bremen,March18,2015

ChristaFuchsChairwomanoftheSupervisoryBoard

10

OHB AG | 2014

Highlights 2014

11

OHB AG | 2014

ObituaryManfredFuchs

OBiTuaryPrOf. DOTT. iNg. h.C. MaNfrED fuChS *25.7.1938 † 26.4.2014

OHBfounderandvisionaryProf.Dott.Ing.h.c.ManfredFuchspassedawayattheageof75yearsonApril26,2014.

ManfredFuchswasborninLatsch,Italy,in1938.Attheageof17,hebecametheyoungestpilotinItaly.HecametoGermanyattheageof18.AfterstudyingaviationengineeringinMunichandHamburg,heembarkedonhiscareerwithspacetechnologycompanyERNOin1961,playingakeyroleinprojectssuchasARIANE-1,SPACELABandCOLUMBUS.

In1981hiswifeChristatookoverasmallcompanyknownasOHB(orOttoHydraulikBremenasitwascalledatthetime).In1985,ManfredFuchsjoinedthiscompany,thusfulfillinghisdreamofbeingself-employed.Togetherwithhiswife,helaidthefounda-tionsforoneoftheleadingEuropeanspacecompanies,OHBAG.

DrivenbyhisGermanengineeringskillscombinedwithakeensenseofpolitics,OHBistodayoneofthreelargestsysteminte-

gratorsinEurope.ChristaandManfredFuchsweretheperfectmatch.Shewasresponsibleforfinancialplanning,whilehewasthevisionarystrategistwhomadehisdreamscometrue.TheirinspiringfamilyspiritbecameanintrinsicvalueofOHB’scorpo-rateculture.

Inthelastfewyearsofhislife,ManfredFuchswasamemberoftheManagementBoardatOHBAGandChairmanoftheSupervisoryBoardofOHBSystemAG.Hewasnamedhonor-aryprofessorbytheUniversityofBremenin1995andreceivedanhonorarydoctoratefromtheTechnicalUniversityofMilanin2005.Heheldnumeroushonorarypositionsandreceivedseveralawardsinrecognitionofhisservices,includingthehighestGermandistinctionintechnicalsciences,the“Werner-von-SiemensRing”.Despitetheseaccolades,ManfredFuchsremainedmodest,down-to-earthandunassuming.

Fromleft:ManfredFuchswithAntonioTajani/ChristaandManfredFuchsattheRussianlaunchpad/PhilippRöslerwelcomedbyManfredFuchsinBremen/ChristaandManfredFuchswithGerhardSchröder/MichailGorbachevandManfredFuchs/ManfredFuchswithJean-JacquesDordain

12 SmallGEO

13

OHBhasdevelopeda“small”geostationaryplatform(SmallGEO)forcommunicationssatellites.Theparticularstrengthoftheproductliesinitsmodularstructure.WithSmallGEO,satellitescanbefittedwiththenecessarycapabilitiesindividuallyandefficiently.Thisresultsinshortintegrationtimesandhighreliability.

SMallgEO – a SMall yET fiNE DESigN

SmallGEO

OHBAG|2013

14 SmallGEO

heinrich hertzTheHeinrichHertzmission

aimsatexploringandtestingnewcommunicationstechnologiesinspace.Thegoalistoofferbroad-bandcommunicationswithevengreaterdataratesformobileusersinthefuture.WiththisthirdSmall-GEOmission,OHBwillbeabletoadditionallyextenditssystemskillsincommunicationssatellitesandtelecommunicationspayloads.

hispasat advanced generation 1

ThefirstSmallGEOmissionbasedonthenewsatelliteplatformwillbelaunchedwithapayloadfortheSpanishsatelliteoperatorHispasatas“HispasatAdvancedGeneration1”.HispasatAG1willbeplacedinageostationaryorbitatanaltitudeof36,000kilometers,whereitwillsupplySpain,Portugal,theCanaryIslandsandSouthAmericawithmultimediaservices.

OHBAG|2013

15SmallGEO

EDrS-CEDRC-SisanOHB-developed

and-builtsatellitefortheEuropeanDataRelaySatelliteSystem(EDRS).EDRSwillachieveanewstandardinspace-basedcommunicationsandwillbeofparticularbenefitforearthobservationapplications.EDRS-Cwillcapturedatafromlow-flyingsatellitesandrelayittotheearth.

ElectraOHBisdevelopingatelecom-

municationssatellitewithasolelyelectricpropulsionsysteminapublic-privatepartnershipwithESAandSES.Electricpropulsionunitsreducepropellantmassrequire-mentsbyupto90percentcomparedwithchemicalpropulsionunits.Theprojectinitiallyentailsplatformdevelopment,whichinafurtherstepistoleadtoajointmissionwithindustrialprojectpartnerSES.

16

OHBAG|2012OHBAG|2014

ExoMars

“at the beginning is an idea”interview with frank Negretti, a member of the Management Board of OhB System ag, on the past, present and future of telecommunications satellites at OhB

ThehistoryoftelecommunicationsmissionsatOHBleadsdirectlytotheSmallGEOrange,theOHB-developedmodularandcompactplatformforgeostationarycommunicationssatel-lites.AmemberoftheManagementBoardofOHBSystemAGsince2009,FrankNegrettiisresponsiblefortelecommunica-tionssatellitesandterrestrialapplicationsamongotherthings.

Mr.Negretti,whataretheoriginsoftheideaforSmallGEO?SmallGEOaroseinthegoodoldOHBway.ProfessorManfredFuchshadanunusuallykeenintuitionwhenitcametonewdevelopmentsandrealizedatanearlystagethatelectronicswouldincreasinglyshrinkinsizeandbecomemoreandmorecompact.Hethereforeaskedwhyinspiteofthissatelliteswereconstantlygrowinginsize.ManfredFuchstookasystematicapproachtothisquestionandtheresultsoftheseconsidera-

tionsyieldedtheideaforSmallGEO.Initially,therewasnotmuchsupportinfavorofthisinnovativeideaofarelativelysmallplatformforgeostationarysatellites.Undeterredbythis,however,ManfredFuchsinitiallycontinuedtopursuehisideainasmallself-financedOHBproject.Afterabriefperiodoftime,acoreteamwasestablishedwithpartnercompaniestodeveloptheSmallGEOsatelliteplatform.Atfirst,allwehadwasthefirmbeliefinaninnovativeidea–interestonthepartofcom-mercialcustomersdidnotcomeuntilfarfurtherdowntheroad.

So,itwasinitiallyonlyaboutdevelopinganewsatelliteplatform?Obviously,youalwaysaskiftherereallyisamarketforanewproduct.CommunicationssatelliteswerealreadybeingbuiltinEuropeatthetime.However,therewasnoplatformfromGer-many.Thismeantthatitwasclearfromanearlystatethat

17

OHB AG | 2014

Interview

SmallGEO’scommercialsuccesswouldhingeonwhetheritwaspossiblefortheplatformtobeclearlypositionedinthemarketasauniqueproposition.Marketpositioningisprimarilydefinedonthebasisofsizeandmass–inSmallGEO’scase,wehaveatotalmassofthreetons.ThislimitwasnecessarytosetitapartfromotherEuropeantelecommunicationssatellites.Byassign-ingSmallGEOtothissizeclass,wewereabletoensurethatitwasrelativelysmallcomparedtoothergeostationarysatellites.Thisexplainsthename“SmallGEO”,whichwasultimatelycoinedfortherange.

AndhowdidSmallGEObecomeanESAproject?Afterprovidingtheinitialinternalfunding,OHBwasabletocon-vinceESAofthemeritsoftheidea.Obviously,thismeantthatwehadtoenlisttheassistanceofotherESAcountries.WewereluckyenoughtobeabletogainSweden,LuxembourgandtheSwitzerlandaspartnersforthisideaandtoaddcompaniesfromthesecountriestotheSmallGEOcoreteam.WithESAasaninstitutionalpartner,theprojectevolvedintoapublic-privatepartnershipwithSpanishcompanyHispasat.Asasatelliteoperator,Hispasathasaninherentinterestinbeingabletoaccommodateasmanyuplinkanddownlinkchannelsonasin-glesatelliteaspossible.Accordingly,thepayloadwasadjustedtomeetitscommercialneeds,asaresultofwhichthethree-tonmarkwasexceeded.ThisiswhyourfirstHispasatAdvancedGeneration1SmallGEOsatellitehasamassof3.5tons.

TalkingofHispasatAdvancedGeneration1,whatisthecurrentstatusofthisfirstgeostationarytelecommunicationsmission?WehavesuccessfullycompletedintegrationinBremenandshippedthesatellitetotheIABGtestingcenterinOttobrunnfortheensuingenvironmentaltestingcampaign.ThenextmajorgoalistodemonstratethequalityofHispasatAG1inallaspectsofthecampaign.

SmallGEOisalreadybeingusedinfourtelcomissionsandisbeingplannedformanyothers.Doesthismeanthatdevelop-mentofthesatelliteplatformhasnowbeencompleted?

OurbasicapproachtoSmallGEOistobuildthesatellitearoundacentralpipe.Inconceptionalterms,wedividethesatelliteintothepayloadandtheplatform;obviously,thespecificcustomerpayloadisdifferentforeverymission.Ourgoalistokeeptheplatformasconsistentaspossibletoreducethelearningcurvewithacorrespondingeffectontheprice.WiththefirstSmall-GEOmission,the“HispasatAdvancedGeneration1”,wehavecreatedastandardparticularlyforthenecessaryqualificationofprocesses.However,thatdoesnotmeanthatwewillbeusingacompletelyunchangedplatformforfuturemissions.Thisiswhywehaveadoptedanevolutionaryapproach,whichisstand-ingusingoodsteadwiththeEDRS-Csatelliteforexample.WehavesubstantiallysimplifiedthepropulsionsystemforthissecondSmallGEOmissionbuthaveretainedourcentralpipedesignwithoutanychanges.

SowhatapproachdoyoutakewithSmallGEO?“Onesizefitsall”or“tryingtogeteverythingtofit”?Neither.WhiletheSmallGEOwasbeingdeveloped,thelaunchermarketunderwentchange.WiththeSpaceXFalcon9andcur-rentpricestructures,itisverylucrativeforsatelliteownerstohaveaweightclassoptimizedforthelauncher.Andthisisnolongeralwaysa3.5tonsatellite.ThissatellitewasplannedfortheEuropeanmarketasa“secondpassenger”onboardtheARIANE5andisregularlyawaitedbyArianeSpacewithgreatanticipation.Thedifficultyistomakesurethatthesecondpas-sengerisreadyforlaunchingatthesametime.Assatelliteprogramsaremostlyorganizedindependentlyofeachother,thiscansometimesbedifficulttoachieve.Wheneverthefocusisonminimizingcosts,theFalcon9isused,inwhichcasethesatellitemusthaveamassofunderthreetonstoensureopti-mumutilizationofthelauncher’scapabilities.ThisiswhyasubstantialdesignchangewasnecessaryinthedevelopmentofELECTRA,ourplatformwithasolelyelectricpropulsionsys-tem.WhereasSmallGEOrequires1.6toffuel,ELECTRAneedsonly160kgtoreachitsgeostationaryorbit.

“We have created a standard with the SmallgEO

hispasat advanced generation 1.”

OHB AG | 2014

18 Interview

“assuming that the launcher market

stabilizes in the way that is currently being indicated, ElECTra is

an ideal solution.”

WouldOHBalsobeasecondpassengeronboardtheFalcon9?Therearetwoapproacheshere.OnepossibilityisfortheFalcon9tobelaunchedwithonlyasinglesatellite,whichisthenreleasedattheoptimumaltitudesothatthesatellitecangointoopera-tioninitsfinalpositionasquicklyaspossible.Theotheralter-nativeisfortwosatellitestobelaunchedonboardaFalcon9to“share”thelaunchcosts.

Itisnotonlythelaunchermarketwhichishotlycontestedbutalsothecommercialsatellitemarket.IsSmallGEOcompetitive?ThefirstSmallGEOsatellitecurrentlybeingassembledintheclean-roomfacilitiesisthefirstofitskind.Asithasitsoriginsinadevelopmentprogram,itisfittedwithanumberofnewtechnologieswhicharestillawaitingqualificationorin-orbitverification.Althoughitissmall,thesatelliteishighlycomplexandnotyetcost-optimized.Thechallengesposedbythisfirstgeostationarytelecommunicationsmissionareanythingbutsmalland,withtheassistanceofESAandHispasat,weareonasteeplearningcurve.Thenextmissionswilldoubtlessbelesscomplexaswewillhavelearnedalotfromthefirstmissionandtheprocessesarenowinplace.Unlikeresearchmissions,whicharealwaysunique,reproducibilityisimportantwithtelcosatellites.Forusitisclearthatoncewehavecompletedthislearningcurvewewillenjoyacompetitiveedgethankstooursizeandcoststructures.Whatismore,wehaveaperfectanswerforthemarketnichewhichhasarisenasaresultofnewlaunchersforwhichanoptimumplatformisnotyetavailable.

WhatimportancedoesSmallGEOhaveforOHBasawhole?OHB’sforaysintotelecommunicationsprovideitwithafurthermainstayforitsfuturebusiness.Inmyview,thenextobviousstep,namelytoexpandintothecommercialsatellitemarket,willmateriallysupplementOHB’sinstitutionalspacebusiness.Thisisbecause,ontheonehand,wedonotyethaveanypres-enceinthecommercialmarketand,ontheother,thecommer-

cialapproachwillforceustoworkevenmoreefficiently.Obvi-ously,wefaceharshcompetitionbutthemethodsandpro-cesseswhichwewilldevelopasaresultarevaluableandwillboosttheentirecompany’sefficiency.ThereisacommonthreadrunningthroughallofOHB’shistory:Fromtheoutset,wehaveowedoursuccesstoourabilitytofaceuptocompeti-tion.

Letusventureaglanceintothefuture.WhatcanweexpectafterSmallGEO?(Laughs).Beforewestartthinkingaboutthat,wemustfirstsigntheC/Dcontractsforthetwo“HeinrichHertz”and“ELECTRA”missions.InthecaseofHeinrichHertz,amissioninitiatedbytheGermanAerospaceCenter(DLR),weexpecttobeabletosealthecontractthisyear.WithrespecttoELECTRA,wearestillwaitingforthenecessaryEuropeanbudgettobedrawndowninfull.Despitethis,Iassumethatournextsatellitemis-sionwithaSmallGEOplatformwillbeatleastpartiallycom-mercial.

IsitpossiblethatELECTRAwillbethemissionthatcanbereadilyreproduced?Assumingthatthelaunchermarketstabilizesinthewaythatiscurrentlybeingindicated,ELECTRAisanidealsolution.Wearetheworld’sfirstproducertohavelaunchedanoptimizedplat-form.Withthisclearpriceadvantageatthemissionlevel,thereisastrongprobabilitythatsatelliteswithanelectricpropulsionsysteminourweightclasswillquicklytakeasubstantialleadoverchemicalsystems.

OHB AG | 2014

19Interview

HispasatAG1attheendoftheintegrationphaseatOHBSystemAG‘scleanroominBremen(top)andatthebeginningofenvironmentalimpacttestingattheIABGspacecenterinOttobrunn(bottompictures).

20

2014wasayearoffurthergrowthforOHBAG.Hereinbriefarethemaineventsoftheyearinchronologicalorder.

highlighTS 2014

Highlights2014

21

OHB AG | 2014

Highlights 2014

February2014

ElectraIndustryDayatOHBinBremen

OnFebruary4,OHBSystemheldElectraIndustryDayinBrementofindthebestpossiblepartnersfortheconstructionoftheElectrasatellite.Speakingtonumerousrepresentativesfromspacecomponentssuppliersfromallaroundtheworld,projectmanagerDr.AlexanderSchneideroutlinedtheplansforthefirstcommercialsatellitewithafullyelectricalpropulsionsystem,describingthehighstandardswhichitwasnecessarytoobserveinworkingwithOHBandexplainingthebiddingprocess.

OHBisplanningtobuildarangeofproductsinaclasscoveringaroundhalfofthecommercialmarketofaround20telecommu-nicationssatellitesayear:SmallGEOFASTandSmallGEOFLEXforpayloadswithanoutputof2–8kWandamassof200–700kg.

Followingthepresentationsgivenbyhigh-rankingrepresenta-tivesofESA,DLRandsatelliteoperatorSES,OHBinvitedcom-ponentssupplierstosubmitattractivebidsasabasisforgain-ingashareofupto20percentoftheglobalmarket.Toachievethis,itisnecessaryforthesatelliteoperatorstoharnesssav-ingsduringthelaunchprocedurethankstothesubstantiallylighterpropulsionsystembutalsoviaacompetitivepurchaseprice.Thecomponentssupplierswerethereforeaskedtodefinecorrespondingreductiontargetsandtoshowhowtheycouldcontributetomakingtheproductsasuccess.SEShadini-tiallyawardedOHBSystemacontractforthedevelopmentofaplatformforElectra(developmentphaseB1)inOctoberofthepreviousyear.Withthisyear’srequestforproposals,thepro-jectisnowtoenterthenextphaseofrealizationsothatthefirstfullyelectricEuropeansatellitecanbelaunchedin2018.

January2014

CGSawardedcontractforOPSAT3000mission

ItalianspacecompanyS.p.AisparticipatingintheItaliandefenseministry’s“OPSAT(OPticalSATellite)3000”programafterreceivingasub-contractwortharoundEUR44millionfromprincipalcontractorTelespazioS.p.A.providingforthedevelopment,designandassemblyofthesatellite-to-launcherinterfaceadapteraswellaslaunchservices.Thesatelliteistobeplacedinasun-synchronousorbitbyanArianespaceVegalauncher.Scheduledfor2016,themissionwillsupplyveryhigh-resolutionpanchromaticimagesoftheearth,permittingnewgenerationsofdigitalmapstobecreated,detectionmapstobeupdatedanddigitalsurfacemodelstobeproduced.

2014 at a glance

22

OHB AG | 2014

Highlights 2014

Fromlefttoright:BrigitteZypries,ParliamentaryStateSecretary,GermanFederalGovernment’sAviationandSpaceCoordinator,Prof.Dr.-Ing.Johann-DietrichWörner,ChairmanoftheManagementBoardoftheGermanAerospaceCenterDLR,JensBöhrnsen,MayoroftheFreeHanseaticCityofBremen,PresidentoftheSenate,andMarcoR.Fuchs,CEOofOHBAG

February2014

Hand-overofthecoremoduleoftheTraceGasOrbiterforExoMars2016

InaceremonyheldonMonday,February3,2014inthepresenceoftheGermanfederalgovernment’snewaviationandspacecoordinator,BrigitteZypries,OHBSystemAGhandedoverthecoremoduleoftheExoMarsTraceGasOrbiter,comprisingthestructure,thethermalsystemandthedrivesystem,toThalesAleniaSpace.

MarcoFuchs,CEOofOHBSystemAGsaid:“ThetimelytransfermarksakeystepinthedevelopmentoftheExoMarsprogram.Weareproudtobepartofthisambitiousinternationalscienceandresearchprogram.”

TheparliamentarystatesecretaryBrigitteZypriesmadeapointofexperiencinglivethecompletionofthismilestoneintheExoMarsprogram.“Thiswasaverypleasantstarttomynewpositionascoordinatoroftheaviationandspaceindustry.WiththeExoMarsprogram,theGermanspaceindustryisdemon-stratingitsoutstandingskills,”BrigitteZypriessaidaftertheceremony.

ExoMarsisajointprojectofESAandtheRussianspaceorgani-zationROSCOSMOS,comprisingtwomissionsthatwillbehead-ingforMarsin2016and2018tofindanswerstothequestionastowhetherlifeeverexistedonthatplanet.Tothisend,itwillbetakingsoilsamplesfromtheplanet’ssurfaceandanalyzingthem.TheExoMarsprogramcoversthekeyentry,descent,landing,drillingandexplorationtechnologies.

TheTraceGasOrbiterandthe“Schiaparelli”landingmodulewillbelaunchedinJanuary2016andshouldreachMarsninemonthslater.ThesecondmissionwiththeESARoverandtheRussiangroundstationisscheduledforMay2018andwillreachtheplanetatthebeginningof2019.ROSCOSMOSisESA’smostimportantpartnerontheExoMarsmission.

23

OHB AG | 2014

Highlights 2014

March2014

AndreasLindenthalappointedtotheManagementBoardofOHBSystemAG

TheSupervisoryBoardofOHBSystemAGappointedMr.AndreasLindenthaltotheManagementBoardeffectiveMarch1,2014.Thisadditionalappoint-mentwasinresponsetotheCompany’sstronggrowthoverthepastfewyearswiththeaimofdistributingthebroaderrangeofdutiesacrossalargernumberofManage-mentBoardmembers.

CEOMarcoR.Fuchs,whoislookingforwardtoworkingwiththenewManagementBoardmember,says:“Withhisoutstandingknowledgeoftheindustryandmanyyearsofmanagementexperience,AndreasLindenthalistheidealadditiontothemanagementteamatOHBSystem.”

AndreasLindenthalhasbeenworkingverysuccessfullyintheaviationandspaceindustryformorethan25years.PriortojoiningOHB,heheldnumerousmanagementpositionsatcom-paniessuchasDornier,Jena-Optronik,AstriumandAirbus.“Anextremelyexcitingandbusiness-orientedenvironmentawaitsmeatOHB.IamlookingforwardtothisnewchallengeandhopethatIwillbeabletomakeapositivecontributiontoOHBSystem’ssuccess,”hesaid.

May2014

OHBatILABerlinAirShow2014

Inkeepingwithtradition,theOHBGrouphadajointstandattheILABerlinAirShow,whichwasheldonMay20–25.AlltheOHBcompaniespresentedtheirproductsandtechnologiestotradeaudiencesand,duringthepublicdays,tothegeneralpublic.

TheOHBstandformedpartof“SpaceWorld”,aninternationallyuniquepoolingofspacecompaniesandinstitutionsatanaviationandspaceshow.Accompaniedbythe“SpacePavilion”,anexhibi-tionjointlyorganizedbyESA,DLRandtheGermanAerospaceIndustriesAssociation(BundesverbandderDeutschenLuft-undRaumfahrtindustriee.V.–BDLI),thisyear’sILAagainofferedanidealforumforconferencesandtalksconcerningthecurrentmainissuesinthespaceindustry.AheadoftheESAMinisterialCouncil,whichtookplaceinDecemberinLuxembourg,theILAservedasapodiumfordiscussiononfuturespaceprojectswiththeparticipationofhigh-rankingrepresentativesfrompolitics,researchandindustry.

OHB AG | 2014

May2014

OHBsubsidiaryLuxSpaceawardednewESAcontract

LuxSpacereceivedanESAdevelopmentcontractforthedesignofaninnovativecontainertrackingdevice.TheprojecthasavolumeofEUR2.5million,ofwhichESAisfunding50percent.DevelopedinconjunctionwithitstwoaffiliatesOHBTeledata(Germany)andmegatel(Germany)andprojectpartnerarviem(Switzerland),thefreight-trackingsystemusesawirelessnet-workofsensorstodeterminethepositionandconditionoffreight,transmittingthedataviasatelliteandgroundstations.Inadditiontothetechnicaldesignofthesystem,theprojectpartnersofferacomprehensivereal-timetrackingserviceincludinganalysisandoperatingsupport.

“Thisserviceprovidesaleveloftransparencytrackingtheentirefreightprocesswhichhaspreviouslybeenalmostimpossibletoachievewithconventionalmethods,”saidJochenHarms,man-agingdirectorofLuxSpace.

KnownasRTICM(RealTimeIntelligentCargoMonitoring),theprojectformspartofESA’sARTES20IntegratedApplicationProgram.Thisinnovativefreight-trackingsystemisprimarilytargetedatthemarketsforthetransportationofcontainersandhigh-qualityfreight.

OHBisdevelopingasystemforlocatingthepositionofacontaineranywhereintheworldandatanytime.

25

OHB AG | 2014

Highlights 2014

June2014

NewappointmenttoOHBAG‘sManagementBoard

Dr.FritzMerklewasappointedtotheManagementBoardofOHBAG.Consequently,thisbody,whichcomprisedMarcoFuchsandUlrichSchulzfollowingthedeathofProf.Manfred,hasthreemembersagain.

Dr.MerklehadbeenDeputyCEOofsubsidiaryOHBSystemAGfor14years.Withhisdecadesofexperienceintheaviationandspaceindustry,heboastsextensiveknowledgeoftheCompanyandthesectorasawholetogetherwiththenecessaryfarsight-ednesstoimplementtheGroupstrategy.

AphysicistwithadoctoratefromtheUniversityofHeidelberg,Dr.MerklewasguestresearcherattheIBMAlmadenresearchlaboratoryinSanJose,California,fortwoyearsaftercomplet-inghisstudies.Aswellasthis,hespentmanyyearsattheEuropeanSouthernObservatoryworkingontheverylargetele-scope.AftereightyearsasheadofspacetechnologybusinessatCarlZeissinOberkochenandJenaforeightyears,hejoinedOHBinBremen.

June2014

NewproductionhallinSwedenopened

OnJune18,OHBSwedenorganizedaceremonytomarktheopeningofitsproductionfacilitywithfloorspaceof705squaremeters.Morethan120guests,includingSwedishastronautChristerFuglesang,attendedtheceremonyattheCompany’ssiteinKistaScienceCity.OHBSwedennowhastwomissioncon-trolcentersforthePRISMAandOdinsatellitesanda450-squaremeterClass8cleanroomforitsprojects.

June2014

AntwerpSpaceshippingtwoOmnisatsystemstoChina

InJune,AntwerpSpaceN.V.deliveredtwoOmnisatsystemstoinstitutionalcustomersinChina.Theequipmentwillbeusedforcheckinghigh-speedsatellitetransmittersandforreceivingearthobservationdataatgroundstations.AntwerpSpacestaffspenttwoweeksinChina,togetherwithitspartnerAASYSTELtoconductextensivetraining.Followingthis,theOmnisatequipmentwasintegratedinthecustomer’ssystem,afterwhichacceptancetestingwassuccessfullycompleted.

SaysAntwerpSpacemanagingdirectorGuyVanDijck:“Ant-werpSpacehasachievedamajorstepforwardwiththere-introductionofitsOmnisatdataacquisitionsystem.Wearegladtobeabletodemonstrateourcapabilitiesinthismarket.”ThissuccessfuldeliveryofthenewOmnisatsystemwillallowAntwerpSpacetoofferauniquemultichannelsolutiontoitscustomersatanattractiveprice.

26 Highlights 2014

OHBAG|2014

July2014

OHBAGtobeconvertedintoaSocietasEuropae

Attheannualgeneralmeeting,theshareholderspassedaresolutionapprovingtheproposaloftheManagementBoardandtheSupervisoryBoardtoconvertOHBAGintoaSocietasEuropaea(SE).TheCompany’sregisteredofficesandhead-quarterswillremaininBremen.UpontheconversionintoanSE,thepreviousshareholdersofOHBAGwillautomaticallybecomeshareholdersinOHBSE;accordingly,therewillbenochangeintheirshareholderstatus.

ByadoptingSEstatus,OHBisrespondingtothegrowingEuro-peanizationofspacetechnologyandtheGroup’sincreasinginterculturalstructures.ThechangeofcorporatestatuswillpermitmoreuniformandclearergovernanceandpromoteanopenandEuropeancorporateculture.Atthesametime,itwillbeeasierforthefutureOHBSEtoestablishnewbrancheswithintheEuropeanUnion.

July2014

OCAMfilmingATV-5andtrackingtheArianetrajectory

OnJuly30,2014,ESA’sfifthandfinalautomatedtransfervehicle(ATV)“GeorgesLemaître”liftedofffromthespacecenterinFrench-GuayanaonboardanAriane-5ESonamissionheadedfortheISS.OnboardthelauncherwasamodifiedOCAM-2onboardcamerasystemdevelopedbyOHBSystem.Itsuppliedimagesofthelaunch,recordingthereleaseoftheATVfromthelauncherforthethirdtime.ThankstotheintegratedGNSSreceiver,itwaspossibletorecordthelauncher’spositionduringitstrajectory.

Onthismission,OHBSystemwasresponsibleforthehardwareandsoftwareoftheon-boardsystemandforthevideo-process-ingpartofthegroundsegment,supportingthemissiononsiteandevaluatingthedata.

MTAerospacesuppliedtheboostercasingandthelargetankdomesforthecentralandupperstagesoftheAriane-5ESlauncher.OHBSystemwasadditionallyresponsiblefortheentirecablingandtheprotectivemeteoriteprotectionshieldfittedtotheATV.

July2014

LuxSpaceawardedESAcontractfortwomicrosatellites

LuxSpacesignedacontractwithESAattheFarnboroughAirShowintheUnitedKingdomfortheproductionoftwomicro-satellites.Thecontractisestablishingaprivatepublicpartner-ship,inwhichthefinalcustomer–exactEarthofCanada–willmakesignificantinvestmentsalongsideESAandtheparticipat-ingEuropeancompanies.ThetotalcontractvolumeforthetwosatellitesstandsatEUR30million.

“ThisisthelargestcontractLuxSpacehaseverreceivedasaprimecontractorandconstitutesthenextstepinitsdevelop-mentasasystemsintegrator,”saidJochenHarms,managingdirectorofLuxSpace.Thetwosatellitesaretobelaunchedin2018and2019respectively.Theywillhaveaweightofapproxi-mately100kgandprovideveryhighqualityAISdataforvesseldetection.

27Highlights 2014

OHBAG|2014

July2014

OHBholding“topping-outcelebration”foritsnewbuildinginOberpfaffen-hofen

OnJuly23,2014,OHBhelda“toppingoutcelebration”foritsnewbuildinginOberpfaffenhofennearMunichinthepresenceof150honoraryguests.ThenewbuildingwillprovidehighlymodernofficefacilitiesforallOHBemployees.

MarcoFuchs,ChiefExecutiveOfficerofOHBAG,isconvincedthattheinvestmentwillpayoff:“WithournewfacilityinOberp-faffenhofen,wewillbeabletoachieveseveralgoalsatthesametime:wewillbeexpandingoursatelliteintegrationandtestingcapabilitiesandprovidingourstaffwithasinglejointbuilding.Atthesametime,weareinthedirectvicinityoftheGermanSpaceAgencyDLR.”

Fromlefttoright:Prof.Dr.VolkerLiebig,ChristineHaderthauer,Dr.GerdGruppe,MarcoR.FuchsandDr.FritzMerkleatthe“topping-outcelebration”

Thetotalfloorareaexceeds14,000squaremeters.Withanareaofjustunder6,000squaremeters,aspaciousclean-roomcomplex(ClassISO8downtoISO5)isbeingassembledcom-pletewiththenecessaryextensivetechnology.Afurther1,000squaremetersareavailableforlaboratories.

OHB AG | 2014

28 Highlights2013

July2014

CGSawardedESAContractforNEOSTEL

TheNEOSTELProjectisdevelopedintheframeworkofanESAProgramnamedSpaceSituationalAwarenessNearEarthObjectsSystem(SSANEO),whichtargetistoimplementaNet-workofOpticalGroundSensorsthatwillcontributetotheSur-veyandTrackingofnaturalSpaceObjects,suchasAsteroids,Comets,etc.,thatcouldcomecloseandpotentiallyimpactwiththeEarth.

ThisnetworkwillbebasedonGroundOpticalTelescopesthatshallallowtocompletelyscanthefullvisibleskyeverynight.Thisobservationstrategy,whichiscalled‘WideSurvey’andiscomplementarytothetraditional„Deepsurvey“approach,willallowthediscoveryoftheNearEarthObjects(NEO)threatswithatimeadvantagesufficienttoadoptbothpreventionandmitigationactions,thusallowingtoeitheravoidorreducecata-strophicevents.

Theapplicationofthenew„WideSurvey“NEOObservationStrategywillbepossibleonlybyexploitingOpticalInstrumentscharacterizedbyanextremelylargeFieldofViewbutstillensuringthenecessaryaccuracy,inordertoreducethenum-berofrequiredtelescopesdowntoaneconomicallyaffordablefigure.

TheoutcomesoftheNEOSTELProgramwillputthebasisfortheimplementationanddeploymentofthefirst„NEOFly-EyeTelescopePrototype“andofallthesuccessiveInstruments,whichwillbeusedtobuilduptheentireNEOWideSurveyOpti-calObservationNetwork.

OHB AG | 2014

Highlights2013 29

OHB AG | 2014

August2014

FirsttwoGalileo*FOCsatelliteslaunched

ThetwoGalileoFOC*satellitesdevelopedandbuiltbyOHBSystemAGwerelaunchedonboardaSoyuzrocket,whichliftedofffromtheKourouspacecenterinFrench-GuayanaonAugust22,2014.Shortlyafterthis,theysenttheirfirst“signoflife”totheEuropeanSpaceAgency’smissioncontrolcenter(ESOC)inDarmstadt.However,afterthesatelliteswerereleasedfromtheupperstageofthelauncher,itbecameapparentthattheyhadnotbeenplacedintheplannedorbit.

AttheendofAugust,theteamatthecontrolcenteroper-atedbytheEuropeanSpaceAgencyESAinDarmstadtcon-firmedthatthetwosatelliteswereingoodhealthandwererespondingonanominalandstablebasisinorbit.Theywerethermallystable,hadasteadyalignmenttothesunandwereproducingsufficientpower.Alltheplatformsubsystemshadbeentestedandfoundtobeworkingproperly.

OHBsupportedtheinvestigationstoanalyzepossiblesce-nariosforsalvagingthesatellites.

*seeGlossary

31

OHB AG | 2014

Highlights 2014

August2014

ConstructionofanewproductionfacilityforMTAerospace

OnAugust25,2014,MTAerospaceAGsymbolicallyopenedthegatestoitsnewproductionfacilityinBremenfortheupperstagetankfortheArianeprogram.“TheideaofmovingindirectlynextdoortoourpartnerAirbusDefence&Spacewasthelogicalandrightthingtodo,”stressestheCEOofMTAero-space,HansJ.Steininger.“Inadditiontotheimprovedlogisticsfortheproductionoftheupper-stagetank,itdemonstratesthatGermanindustryispullingonthesameendoftheropewhenitcomestopreservingindependentEuropeanaccesstospace.”

MTAerospacereceivedcontractsforthedevelopmentandqua-lificationofthemetallicpropellanttankforthenewAriane-5MEupperstagefromAirbusDefenceandSpace,theprincipalcon-tractorfortheAriane-5MEprogram,andtheEuropeanSpaceAgencyESA.ThedesignoftheproductionfacilityalreadytakesaccountoftherequirementsofthefutureAriane-6upperstage.

BrigitteZypriesandJensBöhrnsen(middle)attendedthesymbolicopeningofthenewproductionfacility.

*seeGlossary

32 Highlights2014

OHBAG|2014

We.Create.Space.

WE. CREATE. SPACE.

September2014

MergerofOHBSystemandKayser-Threde

OnSeptember1,2014,OHBSystemAG,Bremen,andErwinKayser-ThredeGmbH,Munich,mergedtoformasinglecompanyunderthenameofOHBSystemAG.Bytakingthisstep,OHBAGispoolingitstwosubsidiaries’capabilitiesandcapacities.

“TwooutstandingcompaniesinthespaceindustryaretodayjoiningforcestobecomeasinglesatelliteandpayloadsystemsspecialistwhichwillbeassuminganewroleintheEuropeanmarketonaccountofitsscaleandorganizationalstructure,”saidCEOMarcoFuchs.“Inthisway,wewillbeabletoleverageourowninternalskillsmoreeffectivelyandthusoperatewithheightenedefficiencyandcompetitiveness.Wewillbebenefit-

ingfromtheresultantadvantagesasmuchasourcustomerswillbe,”Fuchsadds.

Withtheirdifferentskills,thetwoformeraffiliateshadprevi-ouslyalreadybeenworkingjointlyonmajorprojectssuchastheMTGweathersatellitesandtheEnMAPenvironmentalsat-ellite.Accordingly,themergerisalogicalsteptoreinforceandoptimizethejointactivitiesonasustainedbasisandtopositionthetwolocationsforthechallengeswhichtheyfaceintheiroperations.

TheoriginofOHBSystemAG’snewlogoandmotto

33Highlights 2014

OHBAG|2014

September2014

LuxSpaceawardedESAdevelopmentcontract

LuxSpace,navama–technologyfornatureandWWF,theglobalconservationorganizationwereawardedanESAdevelopmentcontractforthedesignofaninnovativefisherymonitoringsystem.

Thesystemwillexploitsatellitetechnologyinthesurveillanceoffishingactivitiestopromotelegalandtransparentfishingoperations.Targetedatcertifiedsustainablefisheries,thenewsystemretracestheroutesandactivitiesoffishingvesselsandassessestheconformityoffishingoperationswithsustainabil-itystandardsandrules.Moreover,thisinformationwillbemadeavailabletoseafoodcustomersviaasmartphoneapp.“Thispromisingapplicationshowshowsatellitetechnologycansupportfisherieswhicharecommittedtosustainablefishingpracticesandcansignificantlyenhancethecredibilityofeco-labeledseafoodproductsamongconsumers”,saidJochenHarms,ManagingDirectorofLuxSpace.

Thetechnologycanvisualizeroutesoffishingvesselsandrec-ognizecertainfishingactivities.Userscannoticeifboundariesofmarineprotectedareasorfishnurseryareasarebeingrespected.

October2014

CRONUSpassingfirsthurdle

MTisconductingtheCRONUSproject(CRyogenicOptimizedNewUpperStageDemonstrator)undertheESAFLPPprogram,whichisperformingpreparatorydevelopmentworkonfuturelaunchvehicles.Theprojecthasnowtakenadecisivestepforward.

CRONUSisatankdemonstratorwithasandwichcommonbulk-headrequiredtocheckandverifythetechnologiestobeutilizedinafutureAriane-6upperstage.Proofoftherequisitetechno-logicalmaturity(TRL6inthiscase)wasadecisiveconditionforparticipationinthenewAriane-6upperstage.

Forthisreason,itwascrucialfortheESAmanufacturingreadi-nessreviewconductedatMTAerospaceonSeptember9,2014tobecompletedwithahighscorefreeofanynegativeorcriticalfindings.Alloftheprojectschedule,particularlythecompletionofthenecessaryhardwarecomponent,wasobserved.Thankstothethoroughpreparations,itwaspossiblefortheESAreviewboardtoconcentrateonthemaintechnicalaspectsoftheMTdesign.ESAwasimpressedbythequalityofthedevelopmentworkwhichMTAerospacehadcompletedonatighttimeschedule.

CRONUS:DemonstratorforAriane-6upper-stagetank

34

OHB AG | 2014

Highlights 2014

October2014

OHBSwedenbuildingfirstInnoSat

TheSwedishspaceagencySNSBawardedOHBSwedenacon-tractfortheconstructionofthefirstInnoSatsatellite.TheawardhadbeenprecededbyastudyinwhichtheteaminSwedenhaddevelopedaninexpensiveandflexiblesatellitesystemwhichcanbeadjustedtomeettheneedsofdifferentkindsofresearchmis-sions.WithavalueofaroundEUR13million,thefirstmissionisknownasMATS(MesosphericAirglow/AerosolTomographyandSpectroscopy).Opticalinstrumentsfittedtothe50-kgsatellitewillmeasuremesosphericgasesandluminescenceataltitudesof80–100kilometers.MATSistotracktwofullsummersinthenorthernandsouthernhemispheresfromanorbitaround600kilometersabovethesurfaceoftheearth.

OHBSwedenwillbebuildingthesatelliteastheprincipalcontractorincollaborationwithAACMicrotech,OmnisysandSwedishresearchinstitutions.MATSistogointooperationin2017.SNSBplanstolaunchafurtherresearchsatelliteeverythreeyears.ThecontractalsoprovidesfortheinexpensivesatellitedesigntobemarketedoutsideSweden.

October2014

LunarmissionmemoryofProf.ManfredFuchs

OHBconductedalunarmissioninmemoryofProf.Dott.Ing.h.c.ManfredFuchs.The4M(ManfredMemorialMoonMission)wassuccessfullylaunchedonboardaLongMarch3fromtheXichangSatelliteLaunchCenter,China,onOctober23,2014.At21:31hoursCEST,LuxSpaceannouncedthatthefirst4MsignalshadbeenpickedupinBrazil.

4MwasasmallspacecraftwhichtransmittedmessagesinmemoryofProf.ManfredFuchsandgreetingsfromallaroundtheworld.Inaddition,itcarriedaradiationexperimentonboardtomeasurethesizeofanappropriateradiationshieldingandamultilaterationtrialforspacecraftnavigationforthenextMoonmission.LuxSpacewasresponsibleforthetechnicalmanage-mentofthemissionandtheassemblyoftheprobe.“Thisisthefirst-everprivatelyfinancedlunarmission,”saidJochenHarms,managingdirectorofLuxSpace.

ThemissionwassuccessfullycompletedinearlyNovemberaftermorethan250operatinghours.Duringitspatharoundthemoon,allmessagesweretransmittedseveraltimesandpickedupbydozensofradioamateurstationsaroundtheglobe.

Illustrationofthe4MsatellitebuiltbyLuxSpace

35

OHB AG | 2014

Highlights 2014

November2014

CGSS.p.A.awardedcontractformicrowaveimager

OnNovember10,2014,CGSS.p.A.(CompagniaGeneraleperloSpazio)signedacontractwithAirbusDefence&Spacefortheassemblyofthesecond-generationmicrowaveimager(MWI)fortheMetOpsatellites.Themicrowaveimagerisanadvancedinstrument,whichwillbefittedtotheSeriesBsatellites.TheMicroWaveImagerinstrumentwillprovideEurope’snationalmeteorologicalservicesand,byextension,theinternationalusersandsciencecommunitywithunprecedentedandhigh-valuedataformeteorologicalandclimatemonitoring.

BysigningthiscontractEUR134million,CGSisassumingresponsibilityfordesigninganddevelopingtheMWIfromPhaseB2throughtofinalin-orbitverificationofthreeflightmodelsfordeliverytoprincipalcontractorAirbusDefence&Space.

TheMetOp-SGsatellitesconstitutethespacesegmentoftheEUMETSATPolarSystemSecondGeneration(EPS-SG)programandcomprisetwoseriesofsatellites,“SatelliteA”and“Satel-liteB”.Eachseriesisnominallymadeupofthreeunits.TheMetOp-SGsatellitesarebeingjointlydevelopedbytheEuro-peanSpaceAgencyESAandEUMETSAT.

October2014

ISS“PK-4”researchlaboratorysuccessfullylaunched

At08:09hoursCETonOctober29,2014,theEuropean-Russianplasmacrystallaboratory“PK-4”liftedofffromtheBaikonurCosmodromeonboardaSoyuzlauncherheadedfortheInter-nationalSpaceStationISS.ItdockedwiththeISSintheearlyafternoonasplanned.Aswiththeprevioustwolaboratories,OHBSystemAG(previouslyKayser-ThredeGmbH)wastheprimecontractorandresponsibleinthiscapacityforallsystemtasks.“PK-4”isapermanentinstallationwithintheEuropeanColumbusresearchmoduledesignedtoconductexperimentsoncomplexplasmas.

OHBSystemhasdevelopedandassembledtworacksforelectricitysupplies,communicationsanddatacollection.Inaddition,OHBSystemfabricatedandintegratedalargepartofthemechanicalstructureaswellasthecontrolandoperatingsoftwarefortheexperiment.The“PK-4”isbeinginstalledintheEuropeanPhysiologyModule(EPM),whichwasalsodevelopedbyOHBSystemAGandisafixedfacilityforstandardpayloadsintegratedintheEuropeanspacelaboratory.

36

OHB AG | 2014

Highlights 2014

November2014

OHBawardcontractsfortwostudiesonthePLATOcomethunter

ThePLATO(PLAnetaryTransitsandOscillationsofStars)mis-sionunderESA’sCosmicVisionprogramisexploringexoplan-ets.OHBSystemAGhasbeenawardedtwoB1studies:UnderESA’sscientificprogram,itwillbelookingintothemissionandsatellitedesign.OnbehalfofDLR,itisexploringthescopeforintegratingthePLATOinstrumentcomprising34individualtel-escopesplusthenecessaryelectronics.

Thespacesegmentismadeupofaservicemodule(SVM)andapayloadmodule(PLM).TheSVMwillbedevelopedinBremenleveragingthesatellitemissionexperienceavailablethere,whiletheMunichlocationwillhandlethePLMincludingthe

payload.TheESAstudyhasacontractvalueofEUR2.5millionandatermof18months.

TheDLRstudyonthescopeforintegratingthePLATOinstru-mentisworthEUR1.8millionandhasatermofagood18months.Inthisway,OHBwillhaveanopportunityofusingthestudiesintherealizationphase(B2/C/D)asasystemleadman-agerforthesatellitesandthepayloadforESAandDLR.

PLATOistosearchforplanetsoutsideourgalaxy

37

OHB AG | 2014

Highlights 2014

December 2014

ARIANE 6 approved at the ESA Ministerial Council

The responsible ministers of the 20 members states of the Euro-pean Space Agency ESA as well as Canada met in Luxembourg on December 2, 2014. They passed resolutions approving total funding of almost EUR 6 billion. The German federal government will be contributing a total of some EUR 1.4 billion over the next few years. Thus, Germany alongside France will be the largest contributor to ESA.

Explained State Secretary Brigitte Zypries, the German federal government’s coordinator of aerospace/aeronautics: “The 20 members states of the European Space Agency ESA agree that looking forward European space flight is to continue playing a key role in the world. This is underscored by the decision to go ahead with the future European launch vehicle Ariane-6. This not only secures European access to space. Moreover, the develop-ment and production of the launcher will ensure that technologi-cal skills are preserved and developed in Germany.”

Germany will be funding an average of EUR 180 million per year and, thus, assuming around 22 percent of the new Ariane-6 program.

In addition, it will be contributing an additional EUR 310 million to the operation of the ISS through 2017 and stepping up its share in the ESA ExoMars program by EUR 15 million.

38

OHB AG | 2014

Highlights 2014

39

OHB AG | 2014

Highlights 2014

December2014

FirstGalileo*-FOCsatellitesuccess-fullytestedafterorbitmaneuver

ThefirstGalileoFOCsatellitedisplayedexcellentpayloadcapa-bilitiesinDecember,competingthepayloadtestingcampaignsuccessfullyonDecember18,2014.After“Doresa”–asthesatelliteiscalled–reacheditsnewtargetorbit,itwaspossibletoactivatethenavigationpayload.ItstartedsendingitsfirstnavigationsignalssuccessfullyonNovember29,2014.

Theextensivetestingcampaignwascommencedafterthesatellitewasmovedtoaorbitmoresuitablefornavigationpurposes.

Atotalofelevenorbitmanoeuverswereperformedtobudgethesatellitestepbystepupwardsfromthelowestpointofitsorbit.Atthesametime,itwaspossibletosubstantiallyreducethesatellite’sexposuretothesuninitsneworbit,thusensu-ringreliablelong-termoperations.Nowthattheorbitismorecircular,theearthsensorcanbeusedcontinuously,meaningthatthemainantennaisalignedtotheearthandallowingthenavigationpayloadtobeactivated.

Itisimportantforthesatellitetocrossthesamepositiononthesurfaceoftheearthonceevery20daysinitsneworbitsothatthegroundtrackcanbesynchronizedwiththeentireGalileoconstellation.

“Milena”,thesecondGalileoFOCsatellitehasnowalsobeensuccessfullymovedintoamoresuitableorbit.

*seeGlossary

40 OHBstock

150

140

130

120

110

100

90

Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb.

TecDAX

DAX

OHB AG

OHB stOck12% gains in OHB stock in the course of the year

40 OHB stock

OHB stock

DAX over 10,000 points for the first timeThe2014stockmarketyearbrokeanumberofverydifferentrecords.Thus,forexample,theGermanbenchmarkDAXindexpassedthepsychologicallyimportant10,000markforthefirsttimeonJune5,2014,whileroughlyonemonthlatertheUSDowJonesIndexexceeded17,000pointsforthefirsttimeever,goingontoreachafurtherall-timehighofmorethan18,000pointsinDecember.RecordswerealsobrokenbyIPOs,withtheflotationoftheChinesecompanyAlibabageneratingproceedsofUSD25billion.Inthefinalquarteroftheyear,theEuropeanCentralBank(ECB)lowereditsratestoahistoricallylow0.05%.TheaccommodativemonetarypolicypursuedbyMarioDraghitoaddressEurope’seconomicweaknessalsocausedtheeurotodeclineanddepreciateagainsttheUSdollarby15%inthesec-ondhalfoftheyear.Inanefforttoencouragelending,anega-tiveinterestrateof0.2%wasimposedinthesecondhalfoftheyearonbalancesheldbycommercialbankswiththeECB.Stockmarketsalsotooktheircuesfromgeopoliticalevents,particu-larlytheCrimeanconflict,whichwasstillongoingasofthedateonwhichthisreportwenttopressandresultedineconomicsanctionsbeingimposedonRussia.ThistriggeredaslideinpricesontheMoscowstockexchangeandexertedpressureontheruble.

12% advance in OHB stock in the course of the yearTheGermanbluechipDAXindex,themidcapMDAXindexandthesmallcapSDAXindexclosedtheyearwithgainsof3%,2%and6%,respectively,whiletheTecDAXroseby18%inanenvi-ronmentfavoringtechstocks.OHBstocklargelytrackedthemarketasawholeandwithgainsof12%wasbeatenonlybytheTecDAX.Averagedailytradingvolumesroseslightlyoverthepreviousyearto13,771shares(previousyear:13,322).

Stock buyback programInaccordancewiththeauthorizationgrantedattheannualgen-eralmeetingonMay19,2010,theManagementBoarddecidedonSeptember13,2011toexecuteastockbuybackprogram.Forthispurpose,upto250,000sharesaretobepurchasedviathestockmarketviaanindependentbank,whichhasbeenretainedtocompletetheprogram.Inaccordancewiththeauthorizationgrantedattheannualgeneralmeeting,thestockboughtbackmaybeusedforseveraldifferentpurposes,e.g.toplacetheCompany’ssharesinforeignstockmarkets,topayfortheacquisitionofothercompanies,partsofcompaniesorsharesinsuchcompaniesandtoissuesharestotheCompany’semployees.

Treasury stockAsofDecember31,2014,OHBAG’streasurystockcomprisedatotalof80,496shares,equivalentto0.46%ofitsissuedcapital,i.e.unchangedinnumbersinceDecember31,2013.

Investor relations activitiesTraditionallyheldinFebruary,thecapitalmarketdaymarkedthebeginningoftheinvestorrelationsyearagain.OnFebruary25,theManagementBoardreleasedanoverviewofOHBAG’scurrentprojectsandguidanceforthemainfinancialsforthecurrentyear.Thefinalresultsforthepreviousyearwerean-nouncedonthemorningofMarch20attheannualpresscon-ferenceheldinBremenandduringtheanalystconferenceheldonthefollowingafternooninFrankfurt.Afterpublication,thefiguresforthequarterwerediscussedwithanalystsintele-phoneconferencesonthesameday.Inthecourseoftheyear,theManagementBoardandIRofficersattendedcapitalmarketconferencesandroadshowsinParis,Munich,AugsburgaswellasDeutschesEigenkapitalforuminFrankfurt/Main.

OHB stock data

ISIN DE0005936124

Ticker OHB

Tradingsegment PrimeStandard

Sector Technology

Subsector CommunicationsTechnology

Indices PrimeAllShare,TecAllShare,CDAX

DesignatedSponsor DZBANKAG,HSBCTrinkaus&BurkhardtKGaA

Issuedcapital EUR17,468,096

Sharetype No-par-valueordinarybearershares

41

OHB AG | 2014

OHB stock

OHB stock parameters in EUR (Xetra)

2011

End-of-yearprice 11.40

Highfortheyear 17.45

Lowfortheyear 8.25

Marketcapitalization(endofyear) 199millions

Averagedailytradingvolumes(Xetra+floor) 20,346shares

Price/earningsratio(P/E)(finaltradingdayoftheyear) 14.62

Earningspershare(EPS) 0.78

Dividendpershare 0.35

Dividendyield(endofyear) 3.07%

* Subject to approval by the shareholders

2014

19.70

25.06

17.45

344millions

13,771shares

13.31

1.48

0.37*

1.88%

Adoption of SE status approved at the annual general meetingTheCompany’sannualgeneralmeetingwasheldatitsheadofficeinBremenonJuly2,2014,approvingadividendfor2013ofEUR0.37pershare(unchangedoverthepreviousyear).Accordingly,thetotaldistributionamountforthe17,387,600dividend-entitledsharescametoEUR6.4millionagain.TheremainingunappropriatedsurplusofEUR16.0millionasshowninthefinancialaccountspreparedinaccordancewithGermanGAAP(HGB)wascarriedforward.AfurtheritemontheagendaconcernedtheCompany’sconversionintoaSocietasEuropaea(SE).Accordingly,theshareholderspassedaresolutionapprov-ingtheplanofMay20,2014,underwhichOHBAGwastobeconvertedintoaSocietasEuropaeaandapprovingthearticlesofincorporationofOHBSEattachedtothisplan.Theotheritemsoftheagenda,specificallytheratificationoftheactions

Analyst ratings

Target price Date Bank in EUR Rating

March2015 WGZBank 25.00 Buy

February2015 DZBANK 24.00 Buy

February2015 HSBCTrinkaus& Burkhardt 24.00 Overweight

November2014 Commerzbank 22.00 Hold

2013

17.55

18.63

14.76

307millions

13,322shares

15.67

1.12

0.37

2.11%

2012

15.15

16.50

11.16

265millions

11,580shares

17.82

0.85

0.37

2.44%

Freefloat (5,208,880shares)

Treasury stock(80,496shares)

Issued capital:17,468,096 shares

Fuchs pool (12,178,720shares)

OHB AG shareholder structure on December 31, 2014

29.82%

0.46%

69.72%

oftheManagementBoardandSupervisoryBoardandtheap-pointmentofanauditorfortheannualandconsolidatedfinan-cialstatements,werealsopassedwithlargemajorities.

42

OHB AG | 2014

OHB stock

Impressions of the 11th Capital Market Day on February 12, 2015 in Bremen.

43

OHB AG | 2014

Group management report

GrOup manaGement repOrtManagement report for the year fromJanuary 1, 2014 until December 31, 2014

Consolidated total revenues over four years in EUR millions

632.7

700.1

555.3

773.0

45 Businessperformanceandunderlyingconditions47 BusinessPerformance52 Salesandorders52 Resultsofoperations53 Assetsandfinancialcondition54 Employees54 Researchanddevelopment56 Qualityandenvironmentalmanagement,

dataprotectionandprocesses

57 Significanteventsoccurringaftertheendoftheperiodunderreview

58 Outlook59 Internalcontrolandriskmanagement59 Opportunityandriskreport62 Compensationreport62 DisclosuresinaccordancewithSection315(4)

oftheGermanCommercialCode63 Corporategovernancedeclaration

2011 2012 2013 2014

44


I. BUSINESS PERFORMANCE AND UNDERLYING CONDITIONS

1. OHB AG’s business performance in 2014TheCompany’sbusinessperformanceintheyearunderreviewandtheresultantfavorableperformanceindicatorslargelyliveduptotheManagementBoard’spositiveexpectations.InFebruary2014,theCompanypublishedfull-yearguidancefortotalrevenues,EBITDAandEBIT.Inthecourseoftheyear,theguidancefortotalrevenueswasadjustedduetothedeconsoli-dationofAerotechPeissenberg,whichhadpreviouslybeenconsolidated.Thefull-yearforecastfortotalrevenuesandEBITwasexceeded,whileEBITDAfellslightlyshortoftheforecast.TotalrevenuesrosefromEUR700millionin2013toEUR773million,whileEBITclimbedfromEUR36.4milliontoEUR40.4millionandEBITDAfromEUR52.8milliontoEUR53.4million.Inaddition,consolidatednetincomeafterminorityinterestsrosefromEUR19.4milliontoEUR25.7millionandearningspersharefromEUR1.12toEUR1.48.ThehighvolumeofordersonhanddroppedslightlyfromEUR2,340millioninthepreviousyeartoEUR2,106millionintheyearunderreviewduetothebalanceoforderintakeandthepercentageofprojectcomple-tion.

2. Underlying economic conditionsLastyear,Germangrossdomesticproduct(GDP)expandedby1.6%and,hence,agooddealmorequicklythaninearlieryears

(0.4%in2013,0.7%in2012).NearlyallsectorscontributedtoGDPgrowth,withthegreatestgainsrecordedinconstruction,manufacturingandservices.Ontheutilizationside,consump-tionprovedtobethemaindriver:Thenumberofdomesticem-ployeesroseagainoverthepreviousyear,reachinganewhighfortheeighthconsecutiveyear.Lastyear,42millionpeopleoutoftotalpopulationof82millionweregainfullyemployedinGer-many.Thispositivetrendinthelabormarketwasaccompaniedbyadeclininginflationrate,whichrecededfrom1.5%inthepreviousyearto0.9%in2014inGermany.

3. Underlying conditions in the sectorAlthoughspaceisonlyanicheindustry,itmakesacrucialcon-tributiontotheeconomyasawhole.Navigationsatellites,forexample,allowITsystemstobesynchronizedglobally,provid-ingthebasisforglobalfinancialtransactionstobeexecutedanddocumentedreliably.Thedatacollectedbyweathersatel-litesensuressafeflyingconditionsandmorefrequentflights,improvedefficiencyinagriculture,theavoidanceofpoorhar-vestsandplannableleisuretravel.Spacetravelmakesanim-portantcontributiontoimprovingenvironmentalprotectionandplaysadecisiveroleincivilandmilitarysecurity.Inotherwords,spacemaybeasmallindustrybutitisofcrucialimpor-tanceforamodernandefficienteconomicsystem.Theroleplayedbyspaceactivitiesvariesfromregiontoregion.Howev-er,theyarerecognizedasbeingakeyindustrybothpolitically

2012

0.85

2008

0.61

2009

0.96

2011

0.78

2010

0.55

2007

0.84

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0

2013

1.12

2014

1.48

Earnings per share

Over eight years in EUR

45

OHB AG | 2014


andbysocietyatlargeinEuropeandNorthAmericainparticu-lar.Giventhelong-termnatureoftheprogramsandprojects,macroeconomicconditionsinindividualcountrieshaveonlyalimiteddirectimpactoncurrentprogramsandprojects.Moreo-ver,dependingontheregioninquestion,commercial,civilandmilitaryspaceprogramsareoftenlinkedwitheachothertoverydifferingextentsorarecompletelyindependentofeachother.WhereasinEuropetheprogramsinitiatedbytheEurope-anSpaceAgency(ESA)andtheEuropeanUnion(EU)ensurestableperformancethankstotheirlong-termplanninghori-zons,theUSgovernmenthasmadewhatinsomecasesaredrasticcutstothebudgetsofNASAandotheragencieswhicharepotentialcustomersforspaceprojectsoverthelastfewyears.However,signsofasubstantialimprovementemergedin2014.Thus,NASAwillhaveabudgetofoverUSD18billionagainin2015,risingbyaroundUSD0.6billionin2016.Aftertwodecadesofuncertaintyastotheirfuturedirection,spaceactivi-tiesintheRussianFederationhavereceivedanewperspectiveagain.Thatsaid,itisnotpossibletoassesstheramificationsforspaceprogramsofthecurrentsituationintheRussianeconomyfollowingthemeasurestakenbytheWestinresponsetotheUkraineconflictandthedeclineinoilprices.Inparticu-lar,theUnitedStateshassubstantiallyscaledbackjointactivi-tieswiththeRussianFederationbutstillremainsdependentonRussiaforthetransportationofsuppliesandastronautstotheInternationalSpaceStationISS.Itexpectstoregaintheinde-pendencewhichithadpriortotheterminationoftheShuttleprogramfrom2017,whennationalcommercialoperatorsbe-comeavailable.China,India,SouthKorea,TurkeyandBrazilarestillpursuingtheirambitionsofestablishingtheirownna-tionalspaceflightprogramsandinfrastructures.Theestab-lishmentofanationalspacestationandalong-termsuccessfullunarlandinginitiallywitharoverandlaterwithastronautsformkeyelementsoftheChinesespaceprogram.

SpacetravelattractedagreatdealofmediaattentioninEuropeinparticularin2014.Foronething,the“BlueDot”missionwithGermanESAastronautAlexanderGerstleftastrongim-pressiononyoungpeople.HecaptivatedhundredsofthousandsofFacebookandTwitterfollowerswithhisreportsfromspace.

Aswellasthis,theEuropeanRosettamissioncausedanin-ternationalsensationwhenthePhilaeprobelandedonthesur-faceofcomet67PChuryumov--Gerasimenko.Aftertravelingmorethantenyearsthroughspaceandhibernatingforthreeyears,Rosettafinallyreachedthecomet,successfullyreleasingthePhilaeprobe.Despitetheratheruncontrolledlanding,itwaspossibleforalargepartoftheplannedmeasurementsandrecordingstobecompleted.Thedatacollectedisstillbeingevaluatedandisexpectedtoprovideimportantinformationontheoriginsofoursolarsystemandtheearthaswellaslifeonourplanet.OHBSystemalsomadeasmallcontributiontoRo-settaintheformofanelectronicunitsuppliedbyOHBSystem

Munich.ThelaunchofthefirsttwoGalileo*satellitesalsomarkedakeymilestoneforOHBin2014,albeitonewhichwasovershadowedbythemishapoccurringonboardtheSoyuzlauncherafteritliftedofffromtheKourouspacecenter.Fol-lowinganadjustmenttotheirorbit,thetwosatelliteswentintooperationandarefunctioningsuperbly.Consequently,theensuinglauncheswillberesumedwithoutanymajormodifica-tionstothesatellitesinthefirstquarterof2015.HeldonDe-cember2and3,2014,theESAMinisterialCouncilwasofcrucialimportanceforEuropeanspacetechnologybotheconomicallyandintermsofprograms.Inadditiontoimportantbudgetdeci-sionsforthenexttwoyears,adecisionwasparticularlymadetogoaheadwiththenewAriane6Europeanlauncher.TheincreasedGermancontributionisanessentialsteptowardsachievingabalanceddistributionoftasksinthejointEuropeanAriane6project.Aswellasthis,theEuropeaninvolvementinISSuntil2017aswellasfurtherfundingfortheEuropeanEx-oMarsmissiontoMarswereapproved.LastyearalsosawthelaunchonJuly30,2014ofthefifthandfinalAutomatedTransferVehicle(ATV)“GeorgesLemaître”onboardanAriane-5.WithitspurposeoftransportingsuppliestotheISSandcorrectingitsorbit,thismissionwasofparticularsignificanceforEurope.ATV5wasincineratedintheatmosphereonFebruary15,2015.InGermany,thenationalspacetechnologybudgetandthecountry’scontributionstotheESAprogramsofaroundEUR770millionp.a.wereincreasedslightlyin2014asplanned.TheGermanfederalgovernment’songoingcommitmenttospacetechnologywasdemonstratedattheESAMinisterialCouncil.DemandforAriane5launchservicesremainssteady.Theen-duringtechnicalsuccessoftheAriane-5programwithatotalof63consecutivesuccessfullaunchesasoftheendof2014shouldensureareliablelaunchcadenceatArianespaceagainin2015.

4. Organizational and legal structure of the GroupAsanaerospaceandspacegroup,OHBAGcombinesactivitiesfromdifferentareasofhightechnology.Inadditiontospaceflightactivities,aircraftcomponentsbusinessformsakeyele-mentofitsactivities.Theindividualcompaniesareabletore-taintheirindividualityandcorporateculturewithintheGroup,whilestillbeingboundbythedecisionsmadebytheGroupholdingcompany.OHBSystemAG,Bremen,andErwinKayser-ThredeGmbH,Munich,whicharebothassignedtotheSpaceSystemsbusinessunit,mergedunderthenameofOHBSystemAGonSeptember1withretroactiveeffectfromJanuary1,2014.TheGroupmanagesitsfinancialconditiononthebasisoftotalrevenues,EBITandEBITDA.Theseparametersaredefinedinanannualbudgetandtrackedduringtheyearbymeansoffore-castsandreportsonactualfigurestogetherwithdeviationanalyses.OHBAGitselfdoesnotengageinanyoperatingbusi-nessbutsupportsthesubsidiariesintheirsalesandmarketingactivitiesandthusassumestheroleofanactiveholdingcom-

*seeGlossary

46

OHB AG | 2014


pany.InMayandJuly2014,theSupervisoryBoardandtheshareholdersofOHBAGapprovedtheManagementBoard’sdecisiontoconverttheCompanyintoaSocietasEuropaea(SE).ByadoptingSEstatus,OHBisrespondingtothegrowingEuro-peanizationofspacetechnologyandtheGroup’sincreasinginterculturalstructures.ThechangeofcorporatestatuswillpermitmoreuniformandclearergovernanceandpromoteanopenandEuropeancorporateculture.TheCompanyestab-lishedanExecutiveCommitteeinthesecondhalfof2014comprisingmembersoftheManagementBoard,otherkeymanagersatOHBAGandthemanagingdirectorsofindividualsubsidiaries.ThepurposeofthisExecutiveCommitteeistoachieveswiftercommunicationsbetweenthestrategyandoperatinglevelsandtoimplementefficientdecision-makingprocessesbyleveragingtheknowledgeandexperienceheldbytheexecutivesoftheoperatingcompanies.OHBAGcomprisestwobusinessunits:

“Space Systems”Thisbusinessunitfocusesondevelopingandexecutingspaceprojects.Inparticular,itisresponsiblefordevelopingandfab-ricatinglow-orbitingandgeostationarysmallsatellitesfornavigation,research,communications,earthandweatherobservationandreconnaissanceincludingscientificpayloads.ItsmannedspaceflightactivitieschieflyentailprojectsfortheassemblyandfittingoftheInternationalSpaceStationISS.Theexplorationsegmentworksonstudiesandmodelsforexploringoursolarsystem,primarilythemoon,asteroidsandMars.Reconnaissancesatellitesandbroadbandwirelesstransmis-sionofimagedataformcoretechnologiesforsecurityandreconnaissance.

“Aerospace + Industrial Products”Thissegmentisprimarilyresponsibleforfabricatingaviationandspaceproductsaswellasperformingotherindustrialac-tivities.Inthisarea,OHBhasestablisheditselfasasignificantsupplierofaerospacestructuresfortheaviationandspacein-dustry;amongotherthings,itisthelargestGermansupplierofcomponentsfortheAriane-5programandanestablishedpro-ducerofstructuralelementsforsatellites.Inaddition,OHBisanexperiencedvendorofmechatronicsystemsforantennasandtelescopesandisinvolvedinmajorradiotelescopepro-jects.OHBtelematicssystemsservethelogisticsindustryaroundtheworldbyofferingefficienttransportmanagementandconsignmenttrackingfacilities.

II. BUSINESS PERFORMANCE

TheOHBGroup’sfavorablebusinessperformancecontinuedagainin2014.Thus,totalrevenuesroseby10%overtheprevi-ousyearfromaroundEUR700milliontoaroundEUR773mil-lionintheyearunderreview.Thiswasaccompaniedbya7%increaseinsalestoaroundEUR728million,upfromEUR680millionthepreviousyear.Thetransformationofthespaceindustryfromwhatwasonceasolelyresearchorpolitically/ideologicallydrivensegmenttoauser-orientedandeconomi-callysignificantmarkethasformedthebasisforOHBAG’scontinuousandsustainedgrowthoverthelastone-and-a-halfdecades.Theareasinwhichitengagesviaitssubsidiariesplaceitinanexcellentposition:Spaceflightisagrowthmarketinwhichnewpossibilitiesforusingexistingornewtechnologiesareunleashingnewdemand.Theexistingapplicationsarebasedonsatellitesystemsalreadyinoperationwhichhavealimitedlifeexpectancyandmustthereforebereplacedwithnewsystemswithpotentiallyimprovedtechnologyorefficiency.

1. “Space Systems” business unitBusinessinthe“SpaceSystems”businessunitischieflychar-acterizedbylong-termprojectswhicharegenerallyawardedbypublic-sectorcustomers.TheveryhighorderbacklogofEUR1,798million(December31,2014)andthebroadpotentialforgeneratingnewprojectbusinessprovidethebasisforhighfor-wardplanningvisibility.

a) Earth observation and reconnaissanceDevelopedandbuiltbyOHBSystemandputintooperationbe-tween2006and2008,theSAR-Lupesystemwithitsfiveradarsatellites,groundsegmentsandthecombinedGerman-FrenchreconnaissancesatellitesystemmadeupofSAR-Lupe(radarimages)andHelios2(opticalimages)hassofarshownnosignsofanydegradationandisstilloperatingverystablyandtothefullsatisfactionofthecustomer(FederalOfficeofBundeswehrEquipment,InformationTechnologyandIn-ServiceSupport(BAAINBw–formerlyBWB))andtheGermanarmedforces.Inthisway,theGermanarmedforceswillcontinuetohaveahigh-lymodern,reliableandcapableradarsatellitereconnaissancesystemevenafteralmostsevenyearspendingtheimplementa-tionofthefollow-upsystemSARah,whichisscheduledfor2018/2019.ThefiveSAR-LupesatellitesaretobeoperatedbytheSARahgroundsegmentfrom2016on.WorkontheSAR-LupesuccessorSARahwithsubstantiallyimprovedperfor-manceisproceedingaccordingtoplan.Thedesigncomprisesthreesatellites,twosatellitesbasedonOHBSystem’sreflectorantennatechnologyandonesatelliteusingtheAirbusphased-arraytechnology.AllthenecessarygroundequipmentwillbesuppliedbyOHBSystemandwillalsobeusedforcontrollingtheSAR-Lupesatellitesfrom2016.TheGermanfederalarmed

47

OHB AG | 2014


forcesareconsideringthepossibilityofsupplementingthethreeradarsatelliteswithanopticalobservationsatellite.Atthisstage,nodecisionhasbeenmadeonwhethertheGermanfederalgovernmentwillprocuresuchasatelliteonanationallevelormakeasolelyfinancialcontributiontotheFrenchCSO(ComposanteSpatialeOptique/OpticalSpaceComponent)pro-gram.InJanuary2014,CGSinMilanwasawardedacontractforparticipationintheOPSAT3000mission,whichwillbeopen-inguppossibilitiesforopticalreconnaissanceforItaly.Sub-stantialprogresswasalsomadebyCGStowardscompletingthestudyontherealizationoftheOPSIS(OPticalSystemforImagingandSurveillance)earthobservationsatellitefortheItalianspaceagencyASI.OPSISisprimarilydesignedtoprovideanoperationalsystemforhigh-resolutionopticalearthobser-vation.However,theprogramiscurrentlynotbeingpursuedonaccountofthepresenteconomicconditionsinItaly.Thenation-alopticalearthobservationprogramEnMAP(EnvironmentalMappingandAnalysisProgram)forDLRhasnowovercomethedifficultiesofthepastandisscheduledtogointooperationattheendof2017/beginningof2018.Withitsnewtypeofhyper-spectralsensors,theEnMAPenvironmentalsatelliteisprimar-ilydesignedtocharacterizeandmonitortheconditionoftheearth.Itisaninnovativesystemwhichcanbeusedformanynewareasofapplication,e.g.security.Currently,theextenttowhichthissystemcanbeusedasabasisforaEuropeanearthobservationsatelliteundertheCopernicusprogramisbeingconsidered.ThecontractsignedbyOHBSystemandThalesAleniaSpacein2012forthedevelopmentandconstructionofthethird-generationEuropeanweathersatelliteMTG(MeteosatThirdGeneration)isbeingimplemented.Aconversioncontract

wassignedin2014fortheresultantnecessaryadjustmentstothecontractforthefinalconstructionofthesatellites.Conse-quently,realizationoftheMTGsatellitesisenteringthefinalphase.Inthisway,OHBisactiveinallareasofearthandweath-erobservationandreconnaissancewithproductsrangingfromradarsatellitestoopticalobservationsystems.

b) CommunicationsAtOHBSystem,thefinalphaseoftheassemblyoftheHispasatAG1satelliteforthecommercialSpanishsatelliteservicepro-viderHispasatwasembarkedupon.Followingthecompletionofintegrationwork,thesatellitehasbeenwithIABGinOttob-runnsinceFebruary22,2015whereitisundergoingextensiveenvironmentalimpacttesting.Underthepresentschedule,itistobeshippedtotheKourouspacecenterattheendoftheyear.ThismarksthefirsttimethattheOHB-developedSmallGEOplatformisbeingdeployeddirectlyinasatelliteoperator’scommercialsystem.ESAhasalsoselectedtheSmallGEOplat-formasabasisfortheEuropeanDataRelaySatellite(EDRS-C)withintheARTES-7program.Accordingly,OHBSystemisthecontractorforthesatelliteoperatorAirbusServices,whichwillbeoperatingitforESA.Developmentworkiscontinuingatfullspeed.Atthesametime,workonassemblingthesatellitehascommenced.TheenhancementstotheSmallGEOmodelforuseasaspecializeddatarelaysatelliteinultra-high-speedsatel-lite-to-satellitecommunicationsarecreatinganimportantnewstrategicsegmentforOHBSysteminboththecivilianandmili-tarymarket.SmallGEOwasalsodefinedbyDLRasthebasisforanationaltelecommunicationsmission(“HeinrichHertz”).ThecontractawardedbytheGermanAerospaceCenter(DLR)for

Total revenues by business unit before consolidation and holding

2014 in EUR millions

Space Systems

Aerospace +Industrial Products

564.0

213.5

48

OHB AG | 2014


thedefinitionofthismissioninconjunctionwiththeGermanFederalMinistryofDefensewascompletedin2013.“HeinrichHertz”willbeusedtotestnewtypesofsatellitecommunica-tionstechnologyunderrealconditionstosafeguardnationalsystemcompetenceingeostationarycommunicationssatel-lites.Amongotherthings,itisalsotosupportthemilitarycom-municationsoftheGermanfederalarmedforces.In2014,theGermanFederalMinistriesofDefenseandEconomicsfinallyagreedonthetermsofthejointprocurementofthesatelliteplannedformid2015.Commencedin2012,thepreliminarystudieson“Electra”,the“AllElectricSpacecraft”ledtotheawardinOctober2013ofacontractforthedefinitionphasebySES-AstrafromLuxembourg.Asthesesatellitesdonotrequireanychemicalpropellant,theywillbesubstantiallylighter.Thiswilllowerthelaunchcostsontheonehandandpermitsub-stantiallylargerpayloadsontheother.ThefinaldecisionbyESAonwhethertogoaheadwiththejointactivitieswithSESandOHBSystemascontractorsisexpectedfor2015.

c) NavigationIn2013,thefirsttwoofthe22satellitesfortheGalileo*-FOC(fulloperationalcapability)spacesegmentwereshippedtotheESAsatellitetestingfacilityinNoordwijk.ThesetwosatelliteswerelaunchedintospaceforESAonAugust28,2014onboardaSoyuz,whichliftedofffromtheKourouspacecenter.However,amalfunctionintheupperstagepreventedthemfromreachingtheirtargetcircularorbit.Instead,theyareinanellipticalorbitaroundtheearth.Usingpartofthepropellanttheywerecarry-ingonboard,itwaspossibletocorrecttheorbitsufficientlytocommencecomprehensivetestingofthesatelliteplatformsand

payloads.ThetwocontrolcentersinOberpfaffenhofenandFucinoweresatisfiedthatthetwosatelliteswereinperfecttechnicalcondition.Atthisstage,nodecisionhasbeenmadeonwhetheritwillbepossibleforthesetwosatellitestobeusedaspartoftheGalileo*systeminthelongtermorwhethertheymustbereplacedbytwonewones.ThenexttwosatelliteshavebeentestedandshippedtoKourou,wheretheyareexpectedtobelaunchedonboardaSoyuzonMarch27,2015.AfurthertwosatellitesarecurrentlyundergoingtestingatESTEC,whilean-otherelevenarecurrentlyinproductionatdifferingstagesofcompletion.Inthethirdquarterof2013,OHBSystemsubmittedaproposaltoESAforastudyonthenext-generationGalileosatellites.Thecontractwasdulyawardedandworkonthestudyhassincecommenced.Thisstudywillensurethataftertheexpiryofitsplanned12-yearservicelifethesystemwillbeequippedwithnewGalileo*satellitesonthebasisofanasyetundevelopedtechnologyaimedatpreservingitsleadingposi-tioninefficiency.

Order backlog by business unit

Total order backlog 2,106.412/31/2014 in EUR millions

Space Systems


1,797.7

308.7

*seeGlossary

49

OHB AG | 2014

50

40

30

20

10

0

20112007 2009 20102008 2012


d) Space explorationIn2013,thecentralunitfortheTraceGasOrbiterdevelopedandbuiltundertheESAExoMars2016programwascompletedandshippedtotheprimecontractorThalesAleniaSpaceinCannes,France,inFebruary2014.WorkhasnowalsocommencedonthecarrierfortheExoMars2018mission.WiththeadditionalfundingapprovedbytheESAMinisterialCouncil,OHBSystemwasauthorizedtostartworkingonthesecondelementoftheExoMarsmission.

e) Space research and roboticsOHBwasagaininvolvedinseveralstudiesinconnectionwithESA’snextEuropeanscientificresearchmissionsin2014.Inthisway,itisalsobuildingupapositionforitselfinthisclassicsegmentofspacetechnology.ItisparticularlyfocusingonthemajorJUICEmission(toJupiteranditsmoons)andthetwomid-sizedEUKLIDandPLATOmissions.In2014,twostudiesonPLATOwerecommenced;onestudyontheoverallmissionwasawardedbyESAtoOHBSystemBremenandanotheronebyDLRonthepayloadinstrumentpackage.ThepurposeofthePLATOmissionistosearchforexoplanets,i.e.planetsthatorbitaroundotherstars,andtodeterminetheextenttowhichtheyarecomparabletotheearth.

f) Manned spaceflightOHBSystemcontinuedtosupportworkonboardtheISSInter-nationalSpaceStationin2014.Thisincludedoverseeingexperi-mentsaswellasperformingmaintenanceandrepairworkontheequipmentdevelopedandsuppliedbyOHBSystem.OHBSystemhasperformedseveralinternalstudiesanalyzingpos-

siblescenariosfortransportingsuppliestotheISSaftertheexpiryoftheATVprogramandexploringpotentialalternativesinmicrogravitationresearchfollowingthedecommissioningoftheISSin2024orlater.ThisyieldedaveryattractiveconceptinvolvingtheuseoftheDreamChaser®currentlybeingdevel-opedbySierraNevadaCorporation(SNC)intheUnitedStates.SNCandOHBhavesignedacorrespondingpartnershipagree-ment.DLRhasprovidedfundingfortheseactivitiesin2014.

g) Ground stationsAttheendof2014,thefiveSAR-Luperadarsatellitesachieved36ofthe50contractualcumulativeyearsofoperationinspace.Allfivesatellitesremaininexcellentconditionandshownosignsofanyage-relateddegradationoftheirperformance.OHBSystem’sSAR-Lupeoperationsarescheduledtoexpirein2017butwillbeintegratedin2016intheSARahgroundstations,wheretheywillcontinuetooperatesimultaneouslyforSARahandSAR-Lupe.

2. “Aerospace + Industrial Products” business unitSixAriane5launchvehiclesliftedoffsuccessfullyfromtheKourouspacecenterin2014.Asaresult,Arianespace,whichisresponsibleforoperatingandmarketingAriane5,wasagainthemarketleaderforcommercialsatellitelaunches.Duringthesameperiod,MTAerospacedeliveredsixflightsetsfortheAriane5(inthepreviousyear,sixflightsetshadbeendeliveredbutfourAriane5launcheswereexecuted).InresponsetoArianespace’songoingeffortstoimprovethecompetitivenessofAriane5,MTAerospaceestablishedamulti-yearcost-opti-mizationprogram,whichalreadyhelpedtoimproveearningsin

*seeGlossary

25.9

31.7

43.146.1

33.7

28.7

52.8

2013

Over eight years in EUR millions

EBITDA

53.4

2014

50

OHB AG | 2014

20112007 2009 20102008 2012 2013 2014

40

30

20

10

0


2014.InaEurope-widecompetitionannouncedbyESAfortheAriane6developmentprogram,MTAerospacewasabletoqualifyforkeystructuresandtanks.InNovember2014,MTAerospacesignedaletterofintentwithAirbusDefence&SpacegoverningitscontributiontotheAriane6developmentandpro-ductionplan.Underthisplan,AirbusandMTAerospacewilleachworkonhalfoftheGermandevelopmentandproductioncontracts.ThedecisionmadebytheESAMinisterialCouncilinDecember2014onthedevelopmentoftheAriane6launchvehi-clewasmateriallysupportedbyGermanyasthesecondlargestpartner.Givenanationalshareof23%inthetotalbudgetofEUR3.75billion,GermanycanexpecttoreceivecontractsworthoverEUR600millionfrom2015through2021.ThemainpurposeofthelargeGermanshareintheAriane6programistosecuresophisticatedtechnologicaldevelopmentandpro-ductionworkforGermany.ThisalsoincludesthedevelopmentofanewproductionlineatMTAerospaceforboostercasingsmadefromcompositematerialsfortheAriane6.AtthenewsatellitetankcenterinAugust,productionofthetwomainproductsandtheIridiumprojectwassuccessfullyrampedupin2014.Moreover,testingofanew-generationpressurizedtank,whichistobeusedintheMeteosatThirdGenerationforthefirsttime,wascompleted.

Intheaviationsegment,productionofthefreshandwastewatertanksfortheAirbusA320/330continuedaccordingtoschedule.Substantialimprovementstoearningswereachievedinsomeareasthankstocostoptimization.ProductionofthesampleA350andA400Mtankswasalsorampedupaccordingtoschedule.AcontractwassignedwithAirbusHelicoptersGermanytoextendtheproductionofcomponentsfortheTiger

samplebyafurthertwoyears.Intheyearunderreview,acom-prehensiveprogramwasimplementedtosecurethefuturevia-bilityandstrengthenthecompetitivenessofaviationactivitieswiththegoalofreinforcingcoreskillswithinthecompanyandoptimizingcostsalongtheentirevaluechain.Keyelementsofthisprogramaretoberolledoutthisyear.

Intheantennaandmechatronicssegment,theALMA(Chile)andSRT(Italy)projectswerecompletedandtheensuingopera-tionandmaintenancecontractscommencedwithstableresultsin2014.ThegroundequipmentsegmentpassedallmilestonesintheconstructionofanewfuelingbuildingfortheSoyuzlaunchvehicleattheEuropeanspacecenterinKourou.

Orderintakefor2015/16wasgood.Awholeseriesofnewcontractsforantennasandtelescopesweregainedin2014.Theseincludecontractsfortheturnkeydeliveryof13mVLBItelescopestoNorwegianandSwedishresearchestablishmentsaswellasthereplacementofthetelemetricstationsoperatedbyFrenchspaceagencyCNES.WorkinginconjunctionwithChi-nesepartnerCETC54,MTMechatronicsreceivedacontractforKabandantennasforsatellitecommunications,thusprevailingovertheinternationalcompetition.Inthetelematicssegment,businessinnavigationequipmentforcommercialvehiclesperformedwell,with14,000unitsdeliveredtoVolvoTrucks,thusexceedingtheforecastfor2014byaround20%.Afurtherincreaseindeliveriesisexpectedfor2015.Specialnavigationsoftwaredevelopedbyoursubsidiarymegatelspecificallyforcommercialvehicleswillalsobedeployedforthefirsttime.Afteragood14years,wedeliveredthelastseriesofon-boardtelematicscomputerstoourlong-standingcorecustomerMANlastyear.Atotalofsome50,000unitsweredeliveredtoMAN

Over eight years in EUR millions

EBIT

31.0

36.4

17.520.8

22.7

18.7

27.3

40.4

51

OHB AG | 2014

20 4 86 1210 14 201816


alone.Thefirstphaseofthedevelopmentactivitiescommencedin2013oncontainertrackingunitsforDeutscheTelekomwascompletedandverifiedincomprehensivetestinginOctober2014.VolumeproductioncommencedinNovember2014.AdditionalfunctionsrequiredforspecialtypesofcontainertransportarebeingdevelopedunderanESAIAPprogram.

III. SALES AND ORDERS

In2014,theOHBGroup’stotalrevenuesrosebyEUR72.9mil-lionor10%overthepreviousyeartoEUR773.0million.Consol-idatedsalescametoEUR728.1million(previousyear:EUR680.1million).Non-consolidatedtotalrevenuesinthe“SpaceSystems”businessunitreachedEUR564.0millionin2014(pre-viousyear:EUR484.5million).Non-consolidatedsalescametoEUR545.3million(previousyear:EUR466.9million).Thisen-couragingperformanceisparticularlyduetoprogressmadeinthesatelliteprograms.AtEUR213.5millionin2014,non-con-solidatedtotalrevenuesinthe“Aerospace+IndustrialProd-ucts”businessunitweredownEUR9.5milliononthepreviousyear.ThelowertotalrevenuesinthisbusinessunitareduetothedeconsolidationofAerotechPeissenberginMay2014.WithavalueofEUR2,106millionasofthereportingdate(previousyear:EUR2,340million),theOHBGroup’sorderbacklogwasslightlydownonthepreviousyear.Ofthisthe“SpaceSystems”businessunitaccountedforEUR1,797.7million(previousyear:EUR2,005.4million)andthe“Aerospace+IndustrialProducts”businessunitforEUR308.7millionasofthereportingdate(previousyear:EUR335.0million).

IV. RESULTS OF OPERATIONS

Intheperiodunderreview,theOHBGroupgeneratedEBITDAofEUR53.4million(previousyear:EUR52.8million)andEBITofEUR40.4million(previousyear:EUR36.4million).Inthiscon-nection,itshouldbenotedthatthenon-recurringeffectsonearningsarisingfromthesaleofthe34%interestinELTAS.AandthedeconsolidationofAerotechPeissenbergwereoffsetbytheupdatedprojectevaluations.Netprofitaftertaxandnon-controllinginterestsstoodataroundEUR25.7millionintheyearunderreview(previousyear:EUR19.4million),whileearn-ingspershareequaledEUR1.48in2014,upfromEUR1.12in2013.EBITbeforeconsolidationinthe“SpaceSystems”busi-nessunitfellfromEUR29.0millioninthepreviousyeardowntoEUR14.1million.Theincreaseinthecostofmaterialsandser-vicespurchasedinthisbusinessunitfromEUR322.4millioninthepreviousyeartoEUR402.3millionasofthereportingdatewasduetoagreatervolumeofsubcontractorservices,reflect-ingtheprogressmadeinthesatelliteprograms.EBITinthe“Aerospace+IndustrialProducts”businessunitrosefromEUR7.3milliontoEUR19.4million.TheOHBGrouprecordednetfi-nanceexpenseofEUR6.5millionin2014(previousyear:EUR6.6million).ThisincludesotherfinanceexpenseofEUR7.824million(previousyear:EUR7.209million)chieflycomprisingin-terestexpenseonretirementbenefitprovisionsofEUR3.323million(previousyear:EUR3.565million).Theparent-companyfinancialstatementspreparedaccordingtoGermanGAAP(HGB)forOHBAGcarryanunappropriatedsurplusofaroundEUR29.4millionfor2014.TheManagementBoardandSuper-visoryBoardwillbeaskingtheshareholderstoapproveadivi-

EBIT by business unit before consolidation and holding

2014 in EUR millions

Space Systems

Aerospace + Industrial Products 19.4

14.1

52

OHB AG | 2014


dendofEUR0.37persharefor2014atthisyear’sannualgener-almeeting.

V. ASSETS AND FINANCIAL CONDITION

Intheyearunderreview,theOHBGroup’stotalassetsrosefromEUR585.4milliontoEUR640.6million.ThechangesarisingfromthedeconsolidationofAerotechPeissenbergaredescribedonpage71ofthenotestotheconsolidatedfinancialstatements.GroupcapitalspendingtotaledEUR25.0millionin2014(previousyear:EUR23.6million).InventoriesdroppedinvaluefromEUR83.0milliontoEUR76.4million;ontheotherhand,prepaymentsreceivedfromcustomerscametoEUR131.5million(previousyear:EUR122.2million).CashandcashequivalentsincludingsecuritieswerevaluedatEUR53.3mil-lionasofDecember31,2014,downfromEUR57.3millioninthepreviousyear.Adetailedanalysisofthecashflowcanbefoundinthecashflowstatementintheconsolidatedfinancialstate-ments.EquityrosebyEUR14.5millionoverthepreviousyear,comingtoEUR147.2millionasofDecember31,2014(previousyear:EUR132.7million).Asaresult,theequityratiowidenedto22.98%asofthereportingdate,upfrom22.67%inthepreviousyear.TheretirementbenefitprovisionsofEUR97.0millionattheendof2014continuetoconstituteamaterialitemontheright-handsideofthebalancesheet.Theincreaseincurrentfi-nancialliabilitiesfromEUR68.0milliontoEUR113.8millionisduetotheutilizationofacreditfacilityestablishedinDecember2013.Thisisrelatedtothetimingdifferencesbetweentheservicescompletedunderprojectsmeasuredusingtheper-centage-of-completionmethodandthecorrespondingpayment

schedulesfortheseprojects,resultinginanincreaseofEUR62.5millionintradereceivablesoverthepreviousyear.TradereceivablesofEUR331.8million(previousyear:EUR269.4mil-lion)wereaccompaniedbytradepayablesofEUR84.0million(previousyear:EUR81.0million).TheManagementBoardgen-erallyconsidersOHBAG’snetassetsandfinancialconditiontobesolid.

Asset structure | Total assets 12/31/2014: EUR 641 millions

In a percentage of total assets

Property, plant and equipment 8% 23% Shareholders‘ equity

Other assets 13% 15% Pension provisions

Other non-current assets 3%

Liquidity 8%

Other non-current liabilitiesand provisions4%

Other currentassets

68% Current liabilities58%

Assets Shareholders‘ equity and liabilities

53

OHB AG | 2014


VI. EMPLOYEES

Thetotalnumberofemployeesdroppedfrom2,412onDecem-ber31,2013to2,086onDecember31,2014verylargelyasare-sultofthedeconsolidationofAerotechPeissenbergGmbH&Co.KG.Alltold,1,646employeeswerebasedatcompaniesinGer-many,332inotherEuropeancountries(Italy,Sweden,Belgium,Luxembourg,France)and108inChileandFrench-Guayanaasofthereportingdate.Forsome1,000employees,2014wasdominatedbythemergerofKayser-ThredeGmbHwithSystemAG.Themergerofthetwocompanieswasadditionallyusedtoimplementnewstructuresforbothsites.Thisprojectwassuc-cessfullycompletedonDecember31,2014withoutanylayoffs–onthecontrary,additionalpersonnelwasrecruitedatbothlocationstoaccommodatethehighorderintake.The“TopEm-ployerforEngineersin2014”certificatecontinuedtoapplyafterthemergerandisproofofOHBSystemAG’sappealasanemployer.

TheplannedconversionofOHBAGintoaSocietasEuropaea(SE)willresultinchangesandadditionstoEuropeanco-deter-minationattheGrouplevelinresponsetoitsincreasinglyinter-nationalstructures.Negotiationsonacorrespondingco-deter-minationagreementbetweentheemployeerepresentativesoftheEuropeancompaniesandGroupmanagementcommencedinNovember2014andaretobecompletedinspring2015inlinewiththeapplicablestatutoryrequirements.

VII. RESEARCH AND DEVELOPMENT

Intheyearunderreview,OHBspentroughlyEUR20.1million(previousyear:EUR22.1million)oninternallyfundedresearchanddevelopment(R+D).PartoftheR+Dactivities(EUR4.0mil-lion;previousyear:EUR3.9million)arebeingfundedbyvariousinstitutionssuchastheEuropeanUnion,theGermanFederalGovernmentandtheGermanstatesandItaly.DevelopmentworkofEUR13.9millionwascapitalizedin2014,upfromEUR10.8millioninthepreviousyear.InaccordancewithEuropeanUniondirectives,subsidiesaccountforbetween25%and75%ofthetotalcostsdependingonthedegreeofcompletionofthedevelopmentproject.Inthe“SpaceSystems”businessunit,oneofthemainfocuseswasonbasicspaceresearch.Inadditiontonewandenhancedtechnologies,thefocuswasonnewtypesofmissionconcepts,suchaslow-flyingsatelliteconstellationsforultra-high-resolutionearthobservation.Afurtheraspectentailedtechnologiesforenhancingandfuture-proofingtheSmallGEOplatformparticularlyinthelightofcommercialcus-tomers’requirements.The“Aerospace+IndustrialProducts”businessunitperformedthefollowingdevelopmentworkonnewproductsandpreparationsforinvolvementinnewpro-grams.Inthelaunchercomponentssegment,thelargestcus-tomer-fundeddevelopmentprojectin2014wasthequalificationofanewupperstagetankfortheA5Mid-LifeEvolution.Inthisconnection,MTAerospacesignedcontractswithAirbusDe-fence&SpaceandESAwithatotalvalueofaroundEUR63mil-lioninthefirstquarterof2014.Allthedevelopmentmilestonesplannedfor2014weresuccessfullycompletedincludingtheproductionofpreliminarycomponents.Theconstructionand

Staff

Total personnel by business units 12/31/2014 Total personnel 2,086

Holding

Space Systems


7307

1,349

54

OHB AG | 2014


start-upofanewproductionfacilityinBremenproceededac-cordingtoschedule.ThedecisionbytheESAMinisterialCounciltodeveloptheAriane6andthereforenottofullycompletede-velopmentworkontheA5MEdidnothaveanyimpactonbusi-nessin2014.However,alldevelopmenttaskswhicharealsonecessaryforthenewAriane6configurationaretobecontin-ued.Thisparticularlyappliestoproductionfacilities.AlltargetsinthedevelopmentofthetankdomesforthemainstageoftheUSSpaceLaunchSystemsforBoeingwereachievedandthecomponentsforthefirstflightsetdelivered.Productionistocommencethisyear.Thefocusofthetechnologyprojectsin2014wasonpreparationsforefficientproductionprocessesforAriane6.Thedevelopmentofafullyautomatedproductionpro-cessforcompositematerialsmadefromthermoplasticwassuccessfullycompleted.Thisprocesspermitstherobot-basedproductionofcompositestructuresforuseinlauncherenginesandsub-stages.Likewise,thedevelopmentofhighlyefficientproductionprocessesforcryo-propellanttankswascompleted.Thisentailsspin-forminglargepanelsfromhighlyrigidalu-minum-lithiumalloysaswellasfriction-stirweldingofthesecomponentstoassemblelargestagetankswithacapacityofupto150tonsofpropellantforuseintheAriane6.Thetankspro-ducedusingthistechnologyweresuccessfullytestedin2014.MTAerospacesuppliedthecontrolflapsmadefromhigh-tem-perature-resistantceramiccompositesforIXV,theESAexperi-mentalspaceglider.Thevehiclessuccessfullycompletedre-entrytestingincludingawaterlandingatthebeginningof2015.ThistechnologywillbeusediftheAriane6stagesundergofur-therdevelopmentforre-use.

Intheaviationsegment,preliminarydevelopmentofanew-generationfresh-watertankfortheAirbusA320NEOallowingareductioninproductioncostswassuccessfullycompleted.MTAerospacewillbereadyingthetankforvolumeproductionasasingle-sourcesupplier.

Intheantennaandmechatronicssegment,anew-genera-tionKabandantennawentintooperationsuccessfully.Thisan-tennasystemisnotonlysuitableforESAasthefirstcustomerbutalsoforotherlow-earthsatellites.

Staff

Total personnel by regions 12/31/2014 Total personnel 2,086

Rest of Europe

Germany Rest of the world108

332

1,646

55

OHB AG | 2014


VIII. QUALITY AND ENVIRONMENTAL MANAGEMENT, DATA PROTECTION AND PROCESSES

1. Quality and environmental managementQualityandenvironmentalmanagementismonitoredandregu-larlyupdatedonanon-centralizedbasisbytheindividualcom-panies.

WorkingonbehalfofOHBAG,OHBSystemkeepstrackofthevalidityofthenecessarycertificatesforcoordinatingselectedindividualprocessesandforharnessingsynergisticbenefitsarisingfromtheimplementationoftheseprocessesatthefol-lowingcompanies:• OHBSystemAG,SiteBremenandMunich,Germany• CGSS.p.A.,Milan,Italy• LuxSpaceSàrl,Betzdorf.Luxembourg• AntwerpSpaceN.V.,Antwerp,Belgium• OHBSwedenAB,Stockholm,Sweden• MTAerospaceAG,Augsburg,Germany• MTMechatronicsGmbH,Mainz,Germany• OHBTeledataGmbH,Bremen,Germany• megatelInformations-undKommunikationssystemeGmbH,

Bremen,Germany

Legalresponsibilityforimplementationofthecertificatere-quirementsinproduct-relatedoperationalqualityprocessesrestswiththeindividualcompanies.

Certificationoftheindividualcompanies’qualitymanage-mentencompassesthesumtotalofdistribution,systemsman-agement,development,procurement,productionandmainte-nanceofproductsforspaceandenvironmentaltechnology,in-formationandcommunicationstechnologyaswellassoftwareproductsandservices.

a) OHB System AG – Bremen siteEN 9100:2009 Quality Management System (aviation/aero-space) based on ISO 9001:2008 Quality Management SystemOHBSystem,theBremensiteiscertifiedforsystemguidance,designdevelopment,productionandoperationsforaerospaceproductsaswellasreconnaissanceandcommunicationtech-nologies.ThiscertificationinvolvesinclusionintheBDLIsupplierlistfortheaviationindustryandintheglobalOASISdatabasemanagedbyIAQG.ThecertificateQS-3674HHissuedbyGermanischerLloydisvaliduntilMay2015.

AQAP 2110/-2210 (military products)ThesiteBremenholdsavalidcertificationissuedbytheGer-manFederalOfficeofBundeswehrEquipment,InformationTechnologyandIn-ServiceSupport(BAAINBw)inaccordancewithAQAP2110(NATOqualityassurancerequirementsforde-sign,developmentandproduction)andAQAP2210(software

qualityassurance)forthedevelopment,production,sales&marketingintheareaofaerospace,reconnaissanceandsatel-liteandcommunicationtechnology.

TheBAAINBwcertificateiscontract-andproduct-relatedvaliduntilMay2015.

OHB System AG – Munich siteISO 9001:2008 Quality Management System (aviation/ aerospace)OHBSystem,theMunichsiteiscertifiedfordevelopment,manufactureandsalesofsystemsforaerospace,scientificandindustrialapplications.TheDEKRAcertificateNo.41294186/6isvaliduntilJuly2015.CertificationinaccordancewithEN9100isplannedforbothsitesin2015.

ISO 14001:2004 Environmental ManagementObservanceoftheenvironmentalmanagementrequirementsstipulatedbythisstandardisatthesiteMunichoverseenbyanenvironmentalmanagementofficer;formalcertificationisnotnecessary.

b) CGS S.p.A.EN 9100:2009 Quality Management System (aviation/aero-space) based on ISO 9001:2008 Quality Management SystemGGSiscertifiedfordesign,constructionandintegrationofsat-ellites,payloadandgroundequipment.Designanddevelop-mentofhardwareandsoftwaresolutionsforaerospaceappli-cations.Researchanddevelopmentofinnovativetechnologiesforaerospaceapplications.ThecertificateNo.AS/77/13/Sis-suedbyRINAServicescoverstheCGSsitesinMilan,TortonaandRomeandisvaliduntilDecember2016.

c) LuxSpace SàrlISO 9001:2008 Quality Management System (base certification)LuxSpaceiscertifiedforthedesignanddevelopment,procure-mentandsalesofspacesystemsandrelatedservices.Thecer-tificate158377-2014-AQ-GER-DAkkSissuedbyDNVGLisvaliduntilJune2017.

d) Antwerp Space N.V.ISO 9001:2008 Quality Management System (base certification)CertificationforaqualitymanagementsysteminaccordancewithISO9001:2008wassuccessfullycompletedatthebegin-ningof2012.ThecertificateQS-8094HHissuedbyGermanis-cherLloydisvaliduntilFebruary2015.

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e) OHB Sweden ABISO 9001:2015 Quality Management System (aviation/space and defence)TherelocationtoKistabroughtbothnewfacilitiesandnew/revisedprocesses,leadingtoarevisionofthequalitymanage-mentsystem.WiththereleaseofISO9001:2015inQ32015,re-certificationtothisnewstandardwilloccurinQ42015/Q12016.

f) MT Aerospace AGEN 9100:2009 Quality Management System (aviation/aero-space) based on ISO 9001:2008 Quality Management SystemMTAerospaceiscertifiedforthedevelopment,productionandtestsofcomponentsandsubsystemsforaerospace,aviation,defenceandindustrialapplications.ThiscertificationinvolvesinclusionintheBDLIsupplierlistfortheaviationindustryandintheglobalOASISdatabasemanagedbyIAQG.ThecertificateQS-8086HHissuedbyGermanischerLloydisvaliduntilFebru-ary2015.

ValidapprovalcertificationshavebeenissuedbytheGer-manFederalAviationOfficefortheproduction(LBAEASAPart21,SectionA,PartG,certificateDE.21G.0048)andformainte-nance(LBAEASAPart145,certificateDE.145.0253)ofairbornevehicles.

g) MT Mechatronics GmbHISO 9001:2008 Quality Management System (base certification)MTMechatronicsGmbHiscertifiedforconsultancy,conceptualanddesignstudies,detaileddesign,manufacturing,installa-tion,commissioning,systemintegrationandserviceforturn-keycommunicationantennas,radio-andopticallargetele-scopes,mechatronicaldevicesforinstitutionalandindustrialapplications,launchfacilitiesfortheEuropeanSpaceProgram.Thecertificate455233QM08issuedbyDQSisvaliduntilNo-vember2015.

h) OHB Teledata GmbHISO 9001:2008 Quality Management System (base certification) OHBTeledataiscertifiedforsales,procurement,development,productionandserviceforproductsandprojectsoftelematicsandtelecommunicationsandbatterymanagement.Theexten-sionofthecertificateQS-2276HHissuedbyGermanischerLloydvaliduntilJuly2014hasbeenassignedtoDNVGLandwillbefinalizedinQ22015.

ISO 14001:2009 Environmental ManagementOHBTeledataismaintainingacertifiedenvironmentalmanage-mentsystem.TheextensionofthecertificateEM-4595HHissuedbyGermanischerLloydvaliduntilNovember2014hasbeenassignedtoDNVGLandwillbefinalizedinQ22015.

i) megatel Informations- und Kommunikationssysteme GmbHISO 9001:2008 Quality Management System (base certification)megateliscertifiedforsales,developmentandserviceforinformationtechnologyproductsandprojects.Thecertificate163223-2014-AQ-GER-DAkkSissuedbyDNVGLisvaliduntilJuly2017.

2. Data privacyCompliance with the German Federal Data Privacy ActThedataprivacyofficersattheindividualcompaniesinGerma-nywhoareformallyregisteredwiththeresponsiblestatedataprivacyagenciessafeguardtheprivacyofpersonaldatainac-cordancewiththeGermanFederalDataPrivacyActasmostrecentlyamended.Localimplementationofthedataprivacyrequirementsissetforthinmanualsandprocessdescriptionsandmonitoredbytheresponsibledataprivacyofficers.

3. ProcessesOHBSystemandCGSaremaintainingqualifiedprocessesinaccordancewithECSS(EuropeanCooperationforSpaceStand-ardization)forweldingofsurface-mounteddevices(SMDs),includingFPGAwith352connectors.

OHBSystemactivelysupportsthefollowingstandardizationboards:• EurospaceStandardizationWorkingGroup(e.g.ECSS)• EAQGSpaceForum(EN9100)• DINNormenausschussLuft-undRaumfahrt

REACH (Registration, Evaluation, Authorization and Restriction of Chemicals)Regulation (EC) No. 1907/2006 (REACH)EUrulescameintoeffectonJune1,2007governingtheman-agementofchemicalsubstancesintheEUforallindustrialproducts.Theserulesprimarilysetoutregulationsforthereg-istrationandmonitoringofhazardoussubstancesaccountingformorethan0.1percentagebyweightintheproduct(accord-ingwithregistrationintheREACHdatabase).

AllOHBcompaniesareawareofthisregistrationdutyandimposethisrequirementontheirsubcontractors.

IX. SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE PERIOD UNDER REVIEW

Therewerenosignificantreportableeventbetweenthebalancesheetdateandthedateonwhichtheannualreportfor2014wasprepared.

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X. OUTLOOK

1. “Space Systems” business unitIn2015andbeyond,the“SpaceSystems”businessunitwillbeconcentratingoncontinuingitssuccessfulworkontheGalileo*,HispasatAG1,MeteosatThirdGeneration(MTG),EnMAPandSARahprojects.Studiesonthenewconceptforthe“Electra”geostationarysatelliteswillbecontinued.Arequestforapro-posalisexpectedtobereceivedin2015fromDLRforthena-tionaltelecommunicationssatellite“HeinrichHertz”.ESAissystematicallycontinuingtheExoMarsprogram.Followingtheshipmentofthecentralmodulefortheorbiterinthe2016mis-sion,negotiationsforthecarrierforthe2018missionarecur-rentlystillongoing.In2015,OHBSystemplanstosubmitapro-posalfortheESABIOMASSmissionasprincipalcontractorandfortheJUICEresearchmissionasapartnertoprincipalcon-tractorThalesAleniaSpace.Preliminarystudiesonthesec-ond-generationGalileo*commencedin2014toexploremoreadvanceddesignsfortheEuropeannavigationsystem.AseriesofrequestsforproposalsforelementsoftheESAearthobser-vationandsciencemissionaswellascontractsforfurtherstudiesareexpectedfor2015.Dependingontheprogram,OHBplanstosubmitproposalseitherasaprincipalorsubcontrac-tor.WithrespecttonationalItalianprograms,CGSintendstosystematicallybroadenitsroleassecondplayerinItalyforsat-ellitemissions,bothforscienceandremotesensing.BudgetarydecisionsintheEU,onthepartofESAandinthenationalspaceprogramsinGermanyandItalyaswellastheothercountriesinwhichOHBcompaniesarelocatedpointtolargelystableunder-lyingconditionsandasufficientlyfirmbasisforfutureplanning.Withitscurrentandplannedprojectsandprograms,OHBAG’s“SpaceSystems”businessunitisideallypositionedtomaintainthelevelwhichithasachievedonasustainedbasisandtocon-tinuegrowingsuccessfully.

2. “Aerospace + Industrial Products” business unitInthe“Aerospace+IndustrialProducts”businessunit,theexistingorderbacklogwillensurecontinuedproductionanddeliveryofcomponentsfortheAriane5in2015and2016.Thecost-optimizationprogramwhichhasalreadybeencommencedwillbesystematicallycontinued.Thedevelopmentoflaunchvehiclecomponentswillbedominatedbytheramp-upoftheAriane6developmentprogramontheonehandandthephasing-outoftheA5MEprogramontheother.AcceptancetestingandqualificationoftheproductionfacilitiesalreadydesignedfortheAriane6willbecompletedasplanned.Thedevelopmentpro-gramfortheUSSpaceLaunchSystemcouldbeincreasedwithadditionalinvolvementinthedevelopmentofthenewupperstage.Severaldevelopmentcontractsforthesatellitetanksareexpectedtocommenceandwillexpandthetankportfolio.

ThetechnologyprogramswillbefocusingonthedevelopmentofcompositetechnologyfortheAriane6booster.Tothisend,thefirstmodelonascaleof1:1willbeassembledandtested.

Intheaviationsegment,theprogramforachievingcosteffi-ciencyandenhancingcompetitivenesswillbeimplemented.Thisalsoinvolvesthetransferofworktomoreinexpensivesup-pliers.TheproductionratefortheA350andA400Mproductswillbeincreasedsubstantiallyin2015,accompaniedbyinten-siveoptimizationmeasures.DevelopmentworkwillprimarilyconcentrateonthesuccessfuldevelopmentoftheA320NEOtankforvolumeproduction.ThesuccessfulcompletionoftheKoLiBriprojectwillopenupopportunitiesforMTAerospacetopositionitselfasasupplierofCFRPboostercasings.

Orderbacklogissufficienttoensureutilizationoftheexist-ingcapacityintheantennaandmechatronicssegmentsin2015.Furthercontractsforlargertelescopeprojectsareexpectedfor2015,thusprovidingthebasisforsolidongoingbusiness.Businessactivitiesintheareaofsatellitecommunicationsan-tennasshouldexpandinthemediumterm.Inthegroundequip-mentsegment,acontractforthemodernizationoftheboosterintegrationhallinKourouisexpectedtobeawardedthisyear.Inthetrucknavigationsegment,deliveriesofover14,000unitsforVolvoTrucksareplannedfor2015.Inaddition,aproposalforthedevelopmentofamorepowerfulfollow-upmodelwassub-mittedtoVolvoTrucksattheendof2014.Theimprovedeffi-ciencyoftheelectronicsystemsshouldensuredeliveriestothecustomerbeyond2016.Followingthecompletionofthefirstphaseofthecontainertrackingproject,aninitialbatchof1,000–2,000unitsistobeshippedbytheendof2015.

3. OutlookTheManagementBoardexpectscontinuedgrowthinconsoli-datedtotalrevenuesintheOHBGrouptomorethanEUR800millionin2015.EBITDAshouldexceedEUR53millionandEBIT40millionin2015.Giventhehigherorderbacklogandupbeatoutlookforthecurrentyear,weassumethattheGroup’snetassetsandfinancialconditionwillalsoremainstrong.In2014,totalrevenuesandEBITexceededtheforecastfortheyear,whileEBITDAfellslightlyshortoftheforecast.Itshouldbeexpresslynotedinconnectionwithforward-lookingstatementsthatactualeventsmaydiffermateriallyfromexpectationsoffutureperformance.

*seeGlossary

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XI. INTERNAL CONTROL AND RISK MANAGEMENT

Thecontrolandriskmanagementsystemformsanintegralpartofthecorporate,planning,accountingandcontrolpro-cessesandconstitutesamaterialcomponentofthemanage-mentsystem.TheProductQualityandPurchasingdepartmentsparticularlymonitorsupplierssothatoperatingandtechnicalriskscanbeassessedmorereliablyandsuitableprecautionstaken.MonthlyandquarterlyreportingconstitutesanintegralpartofOHBAG’sriskmanagementoperationsandhasbeenwidenedtoincludealloftheGroup’scompanies.Group-widecontrollinginstrumentssupportedbybusinessintelligencesoftwareareusedforreportingpurposes.Thisprimarilyen-tailscomparisonsoftheactual/requiredfiguresanddeviationanalyses.Budgeting,regularforecastsandongoingreportingdiscussionssupplementstandardizedreportinginthetwobusi-nessunits.Appropriateprecautionsaretakenintheaccountingandconsolidationprocesstoensurefullimplementationofthedouble-sign-offprinciple.AccessrestrictionstotheITsystemensureahighdegreeofdatasecurity.Inaddition,theaccount-ingsystemcomplieswiththerequirementsofpublic-sectorcontractawardingrules.Customerpaymentpracticesaremonitoredonanongoingbasistominimizefinancialrisks.Inadditiontoamulti-levelremindersystem,controllingmethodsincluderegularreportstotheManagementBoard.TheOHBGroup’scustomerbasecomprisesalargeproportionofpublic-sectorcustomersbothdirectlyandindirectly.Forthisreason,theriskofpaymentdefaultsisverysmall.Overthepastfewyears,therehavebeenvirtuallynopaymentdefaults,meaningthatadjustmentstoortheprolongationofindividualreceivableshavenotbeennecessary.Paymentsonaccountreceivedcom-prisepartpaymentsremitteduponthecompletionofspecificprojectmilestones.Inthisway,itispossibletominimizeliquidi-tyrisksandworkingcapitalrequirements.FollowingthecreditfacilityagreementsignedinDecember2013forEUR250mil-lion,fundingrequirementscannowbecoveredinexpensively.

XII. OPPORTUNITY AND RISK REPORT

OHBAG’sManagementBoardpermanentlymonitorstheGroup’soperating,marketandfinancialrisksandisintegratedinallmainbusinessandcapexdecision-makingprocessesinordertoensuretheGroup’ssustainedbusinesssuccess.TheopportunitiesandriskmanagementsystemusedbytheOHBGroupisprimarilysupportedbytheQualityManagementandFinance/Controllingdepartments.Assistedbythecentraldepartments,theManagementBoardobservesandanalyzestrendsinthesector,marketandeconomyasawholeonanon-goingbasis.Thebasisforopportunitiesandriskmanagementisformedbyadetailedmonthlyreportforoverseeingordersandcosts.Reportingalsocoversallbusinessdevelopment,re-

searchanddevelopmentactivitiesandallowspotentialoppor-tunitiesandriskstobeidentifiedatanearlystage.Thesubsidi-ariessubmitstandardizedmonthlyorquarterlyreportstoOHBAGcoveringallprocesses,opportunitiesandrisksofrelevance.Theindividualbusinessunitsdeploydifferentsoftwaresystemsforgeneratingreports,e.g.SAPorbusinessintelligencesolu-tions.WeconsiderthefollowingtypesofrisktoberelevantforOHBAG’sbusinessactivities:

1. Sector risks, risks in underlying conditionsThe“SpaceSystems”businessunitprimarilyworksforpublic-sectorcustomers.Orderintakeisexposedtorisksarisingfromthebudgetsofpublic-sectorcustomers(chieflytheEU,theEuropeanSpaceAgencyESA,nationalministriessuchastheGermanFederalMinistriesofEconomics,DefenseandTrans-portationaswellasthenationalspaceagencies).Thismarkethasbeenconsolidatingoverthepastfewyears.However,thissituationis,ifanything,favorableforOHBAGinviewofitsspe-cialstandingasaGermansystemsproviderforspacetechnolo-gy.Consequently,furthersignificantgrowthisnotpossibleandcanonlybefoundinthecommercialandexportmarkets.Thissegmenthasbeencloselyobservedandanalyzedforanumberofyearsandpreliminaryactivitiesinthisdirectionarebeingprepared.Inthe“Aerospace+IndustrialProducts”businessunit,thegreatestmarketriskisinmechatronicsystemsforantennasandtelescopesduetotheheavydependencyontheglobalmarketforscientificradioandopticaltelescopesastheawardofsuchcontractsismateriallydeterminedbytheprovi-sionofthenecessaryfundingbythenationalgovernmentsinvolved.

2. Strategic risksThe“Aerospace+IndustrialProducts”businessunitisheavilyexposedtothefortunesoftheARIANEprogram.Afurtherchal-lengeentailssecuringmarketshareintheaviationcomponentsindustry.Inthe“SpaceSystems”businessunit,currentrisksrelatetothecompletionofongoingprojectswithintheagreedperiodandinlinewiththespecifiedlevelofquality.Afurthermainfactoristhesuccessfulcompletionofdevelopmentpro-jectswithinthestipulatedperiodsandinlinewiththecontrac-tualprices.Advanceoutlayshavebeenmadeforthedevelop-mentofstrategicallyimportantproductsegments,thecostsofwhichmustberecoupedfromthedevelopmentofbusinessinthecorrespondingapplications.Lookingahead,sufficientorderreceiptswillbenecessarytomaintainthecurrenthighorderbacklog.

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3. Sourcing risksTheOHBGroupconstantlyoptimizesitssupplychainbycontin-uallymonitoringthebuy-sidemarketandtrackinginventoriesandincreasinglytakingmeasurestosafeguardthelocalavail-abilityofsupplies.Asaresult,ithasbeenpossibletoreduceresponsetimesforproblemreports.Inaddition,itiscontinuingtotapnewsourcesaroundtheworld.Inthe“Aerospace+IndustrialProducts”businessunit,thecostofrawmaterialsremainedpredominantlysteadyinthecourseof2014.Theagreeddeliveryperiodswereverylargelyobservedbythesup-pliers.The“SpaceSystems”businessunitisexposedtoonlysporadicsupply-siderisksinthesourcingofsubsystems.Asarule,thereissufficientadvancenoticeoftheserisks,meaningthatshortfallsoccuronlyrarely.

4. Project risksTheriskmanagementsystemusedforbid-costingandongoingprojectmanagementinvolvesregularescalatedreportingtotheprojectmanagers,thedirectors,theManagementBoardofOHBAGandthemanagementoftheoperatingcompanies.AllprojectsasofaspecificsizearesubjecttoregularreviewbytheManagementBoardandformpartofacontinuousmonitoringprocesscoveringtechnicalperformance,schedulecomplianceandbudgetchecking.Giventhesystemsunderlyingourbusi-nessmodel,thereareinherentrisksintheobservanceofschedulesaswellasdevelopmentrisks.

5. IT risksTheGroup’sbusinessprocessesrelyoninformationservicesandsystemsinallareas.TheprimarypurposeistoensuresmoothoperationsofallITsystemsandnetworkstosupportdevelopmentandproductionprocessesaswellascommercialapplicationsoftware.AfurtherkeyaspectoftheITsecuritystrategyistocontrolaccesstodataandtomonitordatatrafficbothinsideandoutsidetheenterprise.OHBhasinstalledspe-cialInternetaccesssoftwareandsystemstoadditionallyenhanceitsnetworkswithincomingandoutgoingdata.Inaddition,itperformedintensiveactivitiesatitsBremensitetoprepareforbasicBSIcertification.

6. Financial risksMostgoodsandservicesprocuredareinvoicedineuro.For-eign-currencytransactionsinthedollarregionmayresultintranslationgainsorlosses.Intheaviationsegment,thedollar-denominatedordersandreceivableswerehedged.Thesecuri-tiesentaillong-terminvestmentswithacceptablerisks.Aconclusiveassessmentoftherisksituationisnotpossibleduetothecurrentsituationinthefinancialmarkets.Furtherinfor-mationisavailableintheIFRS7disclosurescontainedinthenotestotheconsolidatedfinancialstatements.Workingcapitalrequirementscanbereducedsubstantiallybymeansofpro-

gressbillings.AcreditfacilityagreementwassignedinDecem-ber2013withasyndicateofsevenbankstoavertliquidityrisks.Marketinterestrateshavedroppedsignificantlyoverthepastfewyears.Withrespecttoretirementbenefitprovisions,wedonotexpecttoseeanyfurthersignificantchangeininterestratesinthefuture.

7. Personnel risksTheOHBGroupemploysalargenumberofhighlyqualifiedpeople,onwhosemotivationanddedicationitssuccessde-pends.However,Groupexpertiseisspreadovermanypeople,meaningthatthereisonlyverylimiteddependenceonindividu-alspecialists.StafffluctuationislowattheOHBGroup.Despitetheflourishinglabormarketinthehighlyspecializedaviationandaerospaceindustry,theOHBGrouphasbeenabletofindsuitablespecialiststocoveritspersonnelrequirementsinmostareas.Temporarypeakrequirementsarecoveredbyusingtemporaryorloanstaff.Lookingahead,personnelrequire-mentswillcontinuetobeanalyzedandplannedcarefully,withcorrespondingallocationsmade.Trainingandskillsdevelop-mentremainanimportantinstrumentforminimizingpersonnelrisks.

8. SummaryThroughout2014,theOHBGroup’sexposurewasforthemostpartconfinedtotherisksdescribed.InthelightofcurrentmarkettrendsandtheoutlookfortheCompany’sbusiness,itsorderbackloganditsfinancialsituation,theManagementBoardconsidersfutureriskstotheGrouptobemanageable.NoriskstotheGroup’sgoing-concernstatusarecurrentlydis-cernible.

9. Opportunity and risk reportTheobservanceandevaluationofandbusinessresponsetoopportunitiesandthepotentialwhichtheyharboraswellastheresponsetoriskscallforprofessionalmanagement,whichiscombinedintheOHBGroup’sopportunityandriskmanagementsystem.

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10. Material opportunitiesThespacemarketoffersinterestingopportunitiesforgrowthinviewoftheconstantadditionofnewtechnicalareasofrele-vance.Systematicobservationofallrelevantrequestsforpro-posalsonaEuropeanandalsoanationallevelwithintheEUallowstheOHBGrouptotakepartinvirtuallyallmajorbiddingprocessesinEurope.WithitsEuropean-widepresenceandstrongnationalcompaniesspecializinginselectedtechnologiesandapplicationsinthespaceindustry,OHBadditionallyhastheopportunityofbiddingforspacecontractswhichareawardedtoindividualnationsinaccordancewiththegeographicreturnprinciplewithinESAalongsideEU-widebids.Intheindividualcountries,theGroup’snationalcompaniesareadditionallyabletobidforcontractsandprojectsawardedbythenationalspaceagencies.ThehighdegreeofspecializationoftheindividualcompanieswithintheOHBGroupgenerallymeansthatwhenitbidsforamajorESAprojectitreceivesthestatusoflead-man-agerorsubcontractorofthelead-manager.OHB’sspecificspaceexpertiseisbasedonthelong-standingexperienceoftheresponsiblepersonswithintheGroupaswellasbasicresearchanddevelopmentperformedinthisareaallowingpromisingfutureareasanddevelopmentsinspaceflighttobeidentifiedandresponsestothemdefined.Telecommunications,thegrow-ingexploration,mappinganddepictionoftheearthbymeansofspacetechnologyareincreasinglyevolvingintopromisingareasofapplication.Forthispurpose,theGroupusesitsownfundswhichareutilizedincloseconsultationwithitscustomers.Aswithbusinessrisks,projectmanagementmayalsogenerateopportunitiesfromsystematicclaimmanagementbasedontheprojectreviewprocess.

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XIII. COMPENSATION REPORT

ThecompensationpaidtothemembersoftheManagementBoardcomprisesfixedandvariablecomponents.TheservicecontractscurrentlyinforcewiththemembersoftheManage-mentBoard(durationofcontractsforMarcoFuchs:July1,2012untilJune30,2015;durationofcontractforUlrichSchulz:July1,2012untilJune30,2016,durationofcontractforDr.FritzMerkle:October1,2014untilAugust31,2017)provideforvaria-blecompensationtobedeterminedonthebasisofadirectshareinprofit(percentageofEBT)inthecaseofMarcoFuchsandUlrichSchulz.InDr.FritzMerkle’scase,thevariablecom-pensationisbasedonacombinationofagreedpersonaltargetsandtheCompany’sbusinessperformance.Thereiscurrentlynoprovisionforanyshare-basedcompensationcomponentsorcompensationcomponentswithalong-termincentive.IntheeventofthedeathofaManagementBoardmember,hissurviv-ingdependentsareentitledtoreceivecontinuedpaymentofthatmember’sfixedcompensationforafurtherperiodofsixmonths.ThemembersoftheManagementBoardareentitledtoacompanycar.ThecompensationpaidtothemembersoftheManagementBoardbreaksdownasfollows:Thetotalfixedcompensationpaidin2014cametoEUR0.799million(previousyearEUR0.880million),whilethevariablecomponentequaledEUR1.041million(previousyearEUR0.840million).Thebreak-downbymembersoftheManagementBoardisasfollows:MarcoR.FuchsreceivedasumofEUR0.345million(previousyear:EUR0.345million)asfixedcompensationincludingallbenefitsaswellasadvancestowardshealthandpensioninsur-anceandanon-cashbenefitintheformofcontributionsofEUR1.7k(previousyear:EUR1.7k)towardsanendowmentpolicy.VariablecompensationequaledEUR0.446million(previousyear:EUR0.360million).Prof.Dott.Ing.h.c.ManfredFuchs,whopassedawayonApril26,2014,receivedasumofEUR0.090million(previousyear:EUR0.278million)asfixedcom-pensationincludingallbenefitssuchasadvancestowardshealth.VariablecompensationequaledEUR0.446million(previousyear:EUR0.360million).Inaddition,paymentsofEUR0.012millionweremadebyOHBSystemAGpursuanttoapensioncommitmentassumedin1988underwhichhewastoreceiveasumofEUR3,000amonthuponturning65years.UlrichSchulzreceivedasumofEUR0.217million(previousyear:EUR0.217million)asfixedcompensationincludingallbenefitsaswellasadvancestowardshealthandpensioninsur-anceandanon-cashbenefitintheformofcontributionsofEUR1.2k(previousyear:EUR1.2k)towardsanendowmentpolicy.VariablecompensationequaledEUR0.149million(previousyear:EUR0.120million).

Dr.FritzMerklewasappointedtoOHBAG’sManagementBoardeffectiveJune1,2014followingProf.ManfredFuchswhodiedinApril2014.Intheperiodpriortosigningaservicecon-

tractwithOHBAGeffectiveOctober1,2014,hereceivedcom-pensationfromOHBSystemAG.HereceivedanamountofEUR0.082millionforallactivitiesfortheOHBGroupinthisperiod(June1–September30,2014).ForhisservicesfromOctober1,2014,Dr.FritzMerklereceivedasumofEUR0.065millionasfixedcompensationincludingallbenefitssuchasadvancestowardshealthandpensioninsurance.Inaddition,thecostsofanexistinglifeinsurancepolicyofEUR0.4kwereassumed.Inaddition,hereceivedcompensationunderoldcontractsfortheperiodfromJanuary1,2014throughMay31,2014duringwhichhewasnotamemberoftheManagementBoardofOHBAGbutheldmanagementpositionsatOHBSystemAGandKayser-ThredeGmbH.InhercapacityaschairwomanoftheSupervisoryBoard,Mrs.ChristaFuchsreceivedasumofEUR0.030millionfor2014(previousyear:EUR0.030million),whileMr.RobertWethmarreceivedEUR0.020million(previousyear:EUR0.020million)andProf.HeinzStoewerEUR0.020million(previousyear:EUR0.020million).VariablecompensationcomponentsweredispensedwithforthemembersoftheSupervisoryBoard.Mrs.ChristaFuchswaspaidcompensationofEUR0.064million(previousyear:EUR0.128million)forheradvisoryser-vicesformembersoftheOHBGroupintheyearunderreview.

XIV. DISCLOSURES IN ACCORDANCE WITH SECTION 315 (4) OF THE GERMAN COMMERCIAL CODE

Breakdown of the subscribed capital (No. 1)IssuedcapitalstoodatEUR17,468,096.00onthebalancesheetdateandwasdividedinto17,468,096no-par-valuebearershares.

Restrictions to voting rights or the transfer of shares (No. 2)Prof.Dott.Ing.h.c.ManfredFuchs,ChristaFuchsandMarcoR.Fuchs,whoarealsoshareholdersofVOLPAIABeteiligungs-GmbH,andVOLPAIABeteiligungsgesellschaftmbHintheircapacityasshareholdersofOHBAG,enteredintoapoolingcon-tractonDecember20,2001providingforthecoordinatedexer-ciseofvotingrightswithrespecttopresentandfutureshareholdings.OnFebruary4,2009,thepartiessignedanaddendumtothispoolingcontractimposingonthemrestrictionswithrespecttothesaleofthesharesheldinthepoolingcontract.OnJuly10,2009,thepartiessignedarevisedversionofthepoolingcontract.RomanaFuchsMayrhoferjoinedthispoolinJanuary2010.Atotalof69.72%oftheCompany’sissuedcapitalisheldinthispoolingcontract.TherearenochangesinthetotalnumberofpooledvotingrightsasaresultofProf.ManfredFuchs’deathinApril2014.

Shares exceeding 10% of the voting capital (No. 3)Asofthebalancesheetdate,MarcoR.Fuchsheld18.23%ofOHBAG’ssubscribedcapital(3,184,796shares).Theshareof

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16.39%(2,863,064shares)previouslyheldbyProf.ManfredFuchsiscurrentlystillunderestateadministration.VOLPAIABeteiligungsGmbHholdsafurther21.35%oftheCompany’sshares.TogetherwiththesharesheldbyChristaFuchs(8.02%,1,400,690shares)andRomanaFuchsMayrhofer(5.72%,1,000,000shares),69.72%(12,178,720)oftheCompany’ssharesaresubjecttoapoolingcontractprovidingforthecoordinatedexerciseofvotingrightsasofthebalancesheetdate.

Statutory stipulations and provisions contained in the Company’s bylaws with respect to the appointment and dismis-sal of members of the Management Board and amendments to the bylaws (No. 6)WithrespecttotheappointmentanddismissalofmembersoftheManagementBoard,referenceismadetothestatutorypro-visionscontainedinSections84and85oftheGermanStockCorporationAct.Inaddition,Article7(1)and(2)oftheOHBAG’sbylawsintheversiondatedJune8,2012stipulatethattheSu-pervisoryBoardistoappointthemembersoftheManagementBoardanddeterminetheirnumber.AmemberoftheManage-mentBoardmaybeappointedChairman.Inaddition,theSuper-visoryBoardisempoweredtoappointmembersoftheManage-mentBoardasdeputytotheChairmanoftheManagementBoard.TheprocedureforamendingthebylawsisgovernedbySections133,179oftheGermanStockCorporationAct.Article20ofOHBAG’sbylawsalsoauthorizestheSupervisoryBoardtomakeamendmentstothebylawsaffectingonlytheirwording.

Powers of the Management Board to issue or buy back shares (No. 7)AttheannualgeneralmeetingheldonMay19,2010,theshare-holderspassedaresolutionauthorizingtheManagementBoardtobuybackupto10%oftheCompany’ssharecapitalinexist-enceasofthedateoftheresolutionuntilMay18,2015.Authori-zationwasgrantedtousetheCompany’ssharesforallpurpos-espermittedbylawincludingbutnotlimitedto:• theplacementoftheCompany’ssharesinforeignstock

exchanges,• theacquisitionofallorpartsofotherentitiesorshares

therein,• offeringandtransferringsharestotheemployeesofthe

CompanyorotherrelatedentitiesinaccordancewithSections15etseq.oftheGermanStockCorporationAct.

TheCompanyheld80,496sharesastreasurystockasofthebalancesheetdate.Thisisequivalenttoaround0.46%ofitssharecapital.AttheannualgeneralmeetingheldonMay19,2010,theshareholdersauthorizedtheManagementBoardtoincreasewiththeSupervisoryBoard’sapprovaltheCompany’ssharecapitalbyuptoEUR8,734,048.00onacashornon-cashbasisbyissuingnewsharesonceorseveraltimesonorbeforeMay18,2015.ThenewsharesmayalsobeissuedtotheCompa-

ny’semployees.Inaddition,theCompany’sManagementBoardwasauthorized–subjecttotheSupervisoryBoard’sapproval–toexcludetheshareholders’subscriptionrights• forfractionalamounts;• forpartoftheauthorizedcapitaluptoamaximumofEUR

1,746,809.00providedthatthenewsharesareissuedinre-turnforcashcapitalcontributionsatapricenotmateriallylessthanthestock-marketprice;

• forapartoftheauthorizedcapitaluptoamaximumofEUR8,734,048.00providedthenewshares– areissuedasconsiderationfortheacquisitionofallorpart

ofothercompaniesorentitiesorotherassetsandsuchacquisitionisintheinterestsoftheCompany;or

– areissuedasconsiderationforcashcapitalcontributionstohavetheCompany’sstocklistedinaforeignmarketinwhichithaspreviouslynotbeenadmittedtotrading.

TheManagementBoardisadditionallyauthorizedsubjecttotheSupervisoryBoard’sapprovaltodeterminetheextentandnatureoftheoptionrightsandtheotherconditionsofissue.Pleaserefertothecorrespondingpartsofthenotesonthecon-solidatedfinancialstatementsforfurtherinformation.

XV. CORPORATE GOVERNANCE DECLARATION

ThecorporategovernancedeclarationwasofficiallypublishedonOHBAG’swebsiteinMarch2015.TheInternetaddressis:www.ohb.de>InvestorRelations>CorporateGovernance>Corporategovernancedeclaration

63

OHB AG | 2014

InJune2002,acommissioninstalledbytheGermanFederalGovernmentpublishedrecommendationsknownjointlyasthe“GermanCorporateGovernanceCode”settingoutstandardsofconductandbehaviorforcompanies.CorporategovernanceincludestheentiremanagementandsupervisionsystemandseekstomaketherulesapplicableinGermanymoretranspar-enttonationalandinternationalinvestorsintheinterestsofstrengtheningconfidenceinthemanagementofGermancom-panies.TheSupervisoryBoardandtheManagementBoardofOHBAGarecommittedtotheprinciplesembodiedintheCodeasameansofensuringvalue-orientedcorporategovernanceandsupervisionandwelcometheadoptionoftheseprinciplesinGermany.

Management Board and Supervisory Board shareholdingsAsofthebalancesheetdate,ChristaFuchs,chairwomanoftheSupervisoryBoard,held1,400,690shares,Prof.HeinzStoewer,amemberoftheSupervisoryBoard,1,000sharesandMarcoR.Fuchs,chairmanoftheManagementBoard,3,184,796shares.The2,863,064sharespreviouslyheldbyProf.ManfredFuchswerestillunderestateadministrationasofthereportingdate.TheothermembersoftheManagementBoardDr.FritzMerkleandUlrichSchulzheld1,000and54shares,respective-ly.OnDecember31,2014,VOLPAIABeteiligungs-GmbHheld3,730,170shares.ChristaFuchsheld20%andMarcoR.Fuchs25%ofthecapitalofVOLPAIABeteiligungsgesellschaftasofthereportingdate.The35%shareinVOLPAIABeteiligungs-GmbHpreviouslyheldbyProf.ManfredFuchswasstillunderestateadministrationasofthereportingdate.

Directors’ dealingsIntheyearunderreview,membersoftheCompany’sManage-mentBoardandSupervisoryBoardaswellasrelatedlegalentitiesdidnotreportanysecuritiestransactions.

Objectives regarding the composition of the Supervisory BoardOHBAGseekstoimplementtheprincipleofdiversityinthecompositionoftheSupervisoryBoardandhasformulatedthefollowingobjectivesinthisconnection.ThemembersoftheSupervisoryBoardasawhole(i.e.initsentiretyandnotnecessarilyeachindividualmemberoftheSupervisoryBoard)shouldmeetthefollowingrequirements:• knowledgeoftheaviation/aerospaceindustry,particularly

spacetechnology

• severalyearsofpracticalexperienceinindustryandpublicorganizations/agencies

• extensiveknowledgegainedovermanyyearsinfinance,accounting,bookkeepingandadministration.

Inaddition,theprincipleofdiversityisimplementedbyensur-inganappropriatedegreeoffemalerepresentationontheSupervisoryBoard.Aswellasthis,acombinationofmembersfromtechnicalandcommercialbackgroundsissought.ThenumberofindependentmembersasdefinedinArticle5.4.2oftheCorporateGovernanceCodeistoequalatleastone.

Status of implementationAhighdegreeofdiversityintermsofgender,expertiseandin-ternationalexperiencehasbeenachievedwiththeappointmentofMrs.ChristaFuchs,thefounderofOHBSystemandcommer-cialmanagingdirectorwithmanyyearsofexperience,tothepositionofchairwomanoftheSupervisoryBoard,ProfessorHeinzStoewerasaninternationallyrenownedspacetechnologyexpertandformerleadingmanagerofESAandmanagingdirectoroftheGermanSpaceAgencyandRobertWethmarasapartnerinaninternationallyactivelawfirm.

DECLARATION OF CONFORMITY BY OHB AG PURSUANT TO SECTION 161 OF THE STOCK CORPORATION ACT CONCERNING THE GERMAN CORPORATE GOVERNANCE CODE

OHBAGwelcomestheGermanCorporateGovernanceCodeandthefactthatitisembodiedinstatutorylaw.TheManagementBoardandtheSupervisoryBoardofOHBAGdeclarethattheCompanyconformedtotherecommendationsoftheCorporateGovernanceCodeCommissionappointedbytheGermanFeder-alGovernmentandwillcontinuetodosointhefuture.ThisdeclarationofconformityisbasedontheJune24,2014versionoftheCorporateGovernanceCode.OHBAGdepartsfromtheprinciplesoftheGermanCorporateGovernanceCodeinonlyasmallnumberofpoints:

Disclosures on compensation of the Management Board (4.2.5)OHBAGdisclosesthecompensationpaidtoitsManagementBoardindetailintheannualcompensationreport,whichisincludedinthemanagementreport.Wedonotconsideranyadditionaldisclosuressuchasthoserecommendedin4.2.5tobeappropriateinthelightofreportingrelevance.

corporate Governance Bericht

Corporate Governance64

OHB AG | 2014

Age limits for the Management Board (5.1.2)OHBAGdoesnotsetamaximumageformembersoftheMan-agementBoardasthiswouldlimittheavailabilityofManage-mentBoardmembersforappointmentbytheSupervisoryBoard.

Formation of Supervisory Board committees (5.3)OHBAG’sSupervisoryBoardhasnotformedanycommitteesonaccountofthesmallnumberofmembers(three).

Age limits for the Supervisory Board (5.4.1)TheCorporateGovernanceCoderecommendsdefiningmaxi-mumagesforthemembersoftheSupervisoryBoard.TheSu-pervisoryBoardiselectedbytheshareholdersofOHB;accord-ingly,adefinedagelimitisnotadesirablefactorforselectionpurposes.

ManagementBoardandSupervisoryBoardofOHBAG

Bremen,December17,2014

Corporate Governance 65

OHB AG | 2014

Consolidated financial statements66

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Financial Statements for the Period from January 1, 2014 until December 31, 2014

67 Consolidatedincomestatement67 Consolidatedstatementofcomprehensiveincome68 Consolidatedbalancesheet69 Consolidatedcashflowstatement70 Consolidatedstatementofchangesinequity70 Notestotheconsolidatedfinancialstatements93 Auditor’scertificate

67

OHB AG | 2014

Consolidated financial statements

Note

1. Sales (1)

2. Increase/decreaseininventoriesoffinishedgoodsandworkinprogress (2)

3. Otherownworkcapitalized

4. Otheroperatingincome (3)

5. Totalrevenues

6. Costofmaterials (4)

7. Staffcosts (5)

8. Depreciationandamortization (6)

9. Otheroperatingexpenses

10. Operatingprofit(EBIT)

11. Otherinterestandsimilarincome (7)

12. Otherfinancialexpenses (7)

13. Currencytranslationgains/losses

14. Netprofit/lossfromsharescarriedatequity (7)

15. Investmentincome (7)

16. Netfinancialincome/expense

17. Earningsbeforetaxes

18. Incometaxes (8)

19. Consolidatednetincomefortheyear

20. Minorityinterests (9)

21. Consolidatednetincomefortheyearafterminorityinterests

22. Consolidatedprofitcarriedforward

24. Consolidatedprofit

25. Numberofshares

26. Earningspershare(basic,EUR)

27. Earningspershare(diluted,EUR)

Note

Consolidatednetincomefortheyear

Exchangedifferenceontranslatingforeignoperations (21)

Netgains/lossesfromthemeasurementoffinancialassetsrecordedunderequity (21)

CashflowHedges (21)

Recycling

Gains/lossesarisingduringtheyear

Actuarialgains/losses

Othercomprehensiveincomeaftertax

Comprehensiveincome

Ofwhichattributableto

equityholdersofOHBAG

otherequityholders

inEUR000s

I.CONsOlIdaTEdINCOmEsTaTEmENT

II.CONsOlIdaTEdsTaTEmENTOfCOmpREhENsIvEINCOmE

inEUR000s

2014

728,147

11,707

14,732

18,368

772,954

497,265

176,322

13,016

45,951

40,400

1,601

7,824

–210

0

–93

–6,526

33,874

4,706

29,168

–3,455

25,713

87,484

113,197

17,387,600

1.48

1.48

2014

29,168

–130

1,732

0

–45

–7,625

–6,068

23,100

21,676

1,424

2013

680,121

–4,085

12,990

11,037

700,063

422,629

182,185

16,450

42,446

36,353

1,258

7,209

32

–576

–130

–6,625

29,728

9,660

20,068

–632

19,436

75,558

94,994

17,387,600

1.12

1.12

2013

20,068

–100

3,582

0

–37

–1,526

1,919

21,987

20,633

1,354

68

OHB AG | 2014


Note

Goodwill (10)

Otherintangibleassets (10)

Property,plantandequipment (11)

Sharescarriedatequity (12)

Otherfinancialassets (13)

Non-currentassets

Othernon-currentreceivablesandassets (14)

Securities (16)

Deferredtaxes

Othernon-currentassets

property,plantandequipment/non-currentassets

Inventories (15)

Tradereceivables (14)

Othertaxreceivables (14)

Othernon-financialassets (14)

Securities (16)

Cashandcashequivalents (17)

Currentassets

Totalassets

Note

Subscribedcapital (18)

Additionalpaid-incapital (19)

Retainedearnings (20)

Othercomprehensiveincome (21)

Treasurystock (22)

Consolidatedprofit

shareholders‘equityexcludingminorityinterests

Minorityinterests (23)

shareholders‘equity

Provisionsforpensionsandsimilarobligations (24)

Othernon-currentprovisions (25)

Non-currentfinancialliabilities (26)

Non-currentadvancepaymentsreceivedonorders (27)

Deferredtaxliabilities

Non-currentliabilitiesandprovisions

Currentprovisions (25)

Currentfinancialliabilities (28)

Tradepayables (29)

Currentadvancepaymentsreceivedonorders (30)

Taxliabilities

Othercurrentliabilities (31)

Currentliabilities

Totalequityandliabilities

assets inEUR000s

shareholders‘equityandliabilities inEUR000s

december31,2014

7,687

48,278

54,270

0

23,539

133,774

1,611

1,665

14,758

18,034

151,808

76,354

331,823

1,968

25,336

2,846

50,478

488,805

640,613

december31,2014

17,468

14,923

521

–6,876

–781

113,197

138,452

8,747

147,199

96,974

2,757

5,012

395

19,410

124,548

24,627

113,784

83,967

131,128

3,909

11,451

368,866

640,613

december31,2013

7,687

42,174

70,282

683

22,591

143,417

2,277

1,631

10,398

14,306

157,723

83,048

269,355

1,201

16,800

3,021

54,259

427,684

585,407

december31,2013

17,468

14,923

521

–3,593

–781

94,994

123,532

9,173

132,705

96,290

3,269

12,898

3,038

18,114

133,609

29,764

67,965

80,950

119,123

6,797

14,494

319,093

585,407

III.CONsOlIdaTEdBalaNCEshEET

69

OHB AG | 2014


*includingreclassifications2013ofEUR3,608,000

Notesonthecashflowstatementonpage90.

OperatingEBIT

Incometaxespaid

Othernon-cashexpenses(+)/income(–)

Depreciation/amortization

Changesinpensionprovisions*

Grosscashflow

Increase(–)inownworkcapitalized

Increase(–)/decrease(+)ininventories

Increase(-)/decrease(+)inreceivablesandotherassetsincl.accrualsanddeferrals

Increase(+)/decrease(–)inliabilitiesandcurrentprovisions

Increase(+)/decrease(–)inadvancepaymentsreceived

Profit(–)/loss(+)fromthedisposalofassets

Cashflowfromoperatingactivites

Paymentsmadeforinvestmentsinnon-currentassets

Paymentsreceivedfromthedisposalofassets

Netreductionfromlossofcontroll

Paymentsreceivedfromdecreaseoffinancialassets

Interestandotherfinancialincome

Cashflowfrominvestingactivites

Dividendpayout

Paymentsmade/receivedforotherfinancialinstruments

Paymentsmadeforthesettlementoffinancialliabilities

Paymentsreceivedfromraisingborrowings

Minorityinterests

Interestandotherfinancialexpenses*

Cashflowfromfinancingactivities

Changestocashandcashequivalents

Currency-relatedchangestocashandcashequivalents

Cashandcashequivalentsatthebeginningoftheperiod

Cashandcashequivalentsattheendoftheperiod

Cashandcashequivalentsattheendoftheperiodandcurrentfinancialinstruments

January1

Changesincashandcashequivalentsincludingsecuritiesandcurrentfinancialinstruments

december31

inEUR000s

2014

40,400

–9,188

–3,804

13,016

–4,018

36,406

–13,944

–17,642

–80,968

33,467

14,466

–6,805

–35,020

–11,104

918

–4,701

7,550

1,472

–5,865

–6,433

192

–32,857

83,196

–2,173

–4,501

37,424

1,240

–320

54,259

50,478

58,911

–3,922

54,989

2013

36,353

–6,194

0

16,450

–2,848

43,761

–11,458

–641

–68,933

–3,228

11,778

–5,390

–34,111

–12,174

7,802

0

0

1,178

–3,194

–6,433

0

–45,087

60,678

–36

–3,732

5,390

–31,915

–62

86,236

54,259

95,415

–36,504

58,911

Iv.CONsOlIdaTEdCashflOwsTaTEmENT

70

OHB AG | 2014


vI.NOTEsTOThECONsOlIdaTEdfINaNCIalsTaTEmENTs

GeneralinformationTheCompanyhasitsheadofficeatKarl-Ferdinand-Braun-Str.8in28359Bremen,Germany.OHBAGexercisesthefunctionofanactiveholdingcompanywhichmanagesthesubsidiarieswithintheOHBGroup.TheGroupisprimarilyengagedintheproductionanddistributionofproductsandprojectsaswellastheprovisionofhigh-technologyservicesparticularlyintheareasofspaceandaeronautictechnology,telematicsandsatel-liteservices.

accountingprinciplesandmethodsInaccordancewithRegulation(EC)1606/2002issuedbytheEuropeanParliamentandtheCouncilonJuly19,2002,OHBAGisrequiredtoprepareconsolidatedfinancialstatementsinaccordancewithinternationalaccountingstandards(IFRS/IAS).TheconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththeInternationalFinancialReportingStand-ards(IFRS/IAS)applicableintheEUinthelightoftheinterpre-tationsoftheInternationalFinancialReportingInterpretationsCommittee(IFRIC/SIC)aswellasthesupplementaryprovisionscontainedinSection315aoftheGermanCommercialCode.Theconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththegoing-concernprinciple.TheGroupman-agesitscapitalwiththeaimofensuringthatallGroupmem-bersareabletooperateinaccordancewiththegoing-concernprincipleandwiththeaimofmaximizingincomefromitsinvestmentsbyoptimizingitsequityanddebtcapital.ManagedcapitalcomprisessolelytheequityofEUR147million(previousyear:EUR133million)shownonthefaceoftheconsolidatedfinancialstatements.TheoverallstrategypursuedbytheGroup

wasunchangedover2013.Theexternallyimposedcapitalrequirementswhicharecurrentlynotatriskareadditionallytakenintoaccount.

Inadditiontotheconsolidatedbalancesheet,consolidatedincomestatementandtheconsolidatedstatementofcompre-hensiveincome,theconsolidatedannualfinancialstatementsincludeaconsolidatedcashflowstatementandastatementofchangesinconsolidatedequity.Thenotescontainthedeclara-tionrequiredbySection285No.16oftheGermanCommercialCodeconfirmingthatthedisclosuresstipulatedbySection161oftheGermanStockCorporationActhavebeendulymade.Theincomestatementhasbeencompiledusingthetotal-costmethod.

Thereportingcurrencyistheeuro.Unlessotherwisestated,allamountsarereportedinmillionsofeuros(EURmillion).Itshouldbenotedthattheuseofroundedfiguresandpercentagesmayresultindifferencesduetocommercialrounding.

ConsolidationmethodsThepurchasemethodofaccountingisusedtoaccountfortheacquisitionofsubsidiariesbytheGroup.Allmaterialsubsidiar-iesunderthelegalorconstructivecontrolofOHBAGhavebeenconsolidated.

AnyremainingpositivedifferencebetweenthecostofacquiringtheshareholdingsandthenetassetscalculatedattheirfairvaluesisrecognizedasgoodwillunderIAS3.32.Thefullgoodwillmethodisapplied.

Sales,expenses,incomeaswellasreceivablesandliabili-tiesbetweenconsolidatedcompaniesarenettedandanyinter-Groupprofitseliminated.Thecarryingamountsofcompaniesconsolidatedusingtheequitymethodareadjustedtoallowfortheproportionateprofit/lossattributabletosuchcompanies.

inEUR000s

Note

december31,2012

Dividendpayment(EUR0.37pershare)

Comprehensiveincome

Otherchanges

January1,2013

Dividendpayment(EUR0.37pershare)

Comprehensiveincome

Otherchanges

december31,2014

Subscribedcapital

(18)

17,468

0

0

0

17,468

0

0

0

17,468

Additionalpaid-incapital

(19)

15,094

0

0

–171

14,923

0

0

0

14,923

Retainedearnings

(20)

521

0

0

0

521

0

0

0

521

Othercom-prehensive

income

(21)

–6,260

0

2,667

0

–3,593

0

–4,360

1,077

–6,876

Consolida-tedprofit

81,991

–6,433

19,436

0

94,994

–6,433

25,713

–1,077

113,197

Share-holders‘

equityexclu-dingminori-tyinterests

108,033

–6,433

22,103

–171

123,532

–6,433

21,353

0

138,452

Minorityinterests

(23)

9,299

0

–90

–36

9,173

0

1,748

–2,174

8,747

Share-holders‘equity

117,332

–6,433

22,013

–207

132,705

–6,433

23,101

–2,174

147,199

Treasurystock

(22)

–781

0

0

0

–781

0

0

0

–781

v.CONsOlIdaTEdsTaTEmENTOfChaNGEsINEqUITy

71

OHB AG | 2014


acquiredbusinessesNoacquisitionswereexecutedduringthisperiod.

ConsolidatedcompaniesOHBAG’sconsolidatedfinancialstatementsincludeOHBAG,eightdomesticandfivenon-domesticsubsidiariesandafur-thernon-domesticassociateaccountedforusingtheequitymethod.Thetableentitled“Consolidationperimeter”setsoutthesubsidiariesandassociatestogetherwiththerelativesizeoftheshareheld.Comparedwiththepreviousyear,thenumberofcompaniesconsolidatedwasreducedbytwo.Kayser-ThredeGmbH,STSSystemtechnikSchwerinGmbHandTimtecTelda-transGmbHweremergedwithOHBSystemAG.Inthisconnec-tion,KTBeteiligungsGmbH&Co.KGwasdissolvedanditsassetstransferredtoOHBAG.ThereductionintheshareinAerotechPeissenbergGmbH&Co.KGasaresultoftheissueofnewsharecapitalsubscribedtobyothershareholdersresultedinthedeconsolidationofthiscompanyinMay2014.Conse-quently,itisnowrecognizedusingtheequitymethodofaccountingwithinthe“Aerospace+IndustrialProducts”busi-nessunit.Onthedateonwhichitwasdeconsolidated,Aero-tech-PeissenbergGmbH&Co.KGhadnon-currentassetsofEUR22.596million(December31,2013:EUR23.205million),currentassetsofEUR39.750million(December31,2013:EUR41.226million),liabilitiesofEUR48.819million(December31,2013:EUR56.726million)andprovisionsofEUR15.312million(December31,2013:EUR13.416million).The34%shareinELTAS.A.,whichhadhithertobereportedusingtheequitymethodofaccounting,wassoldinDecember2014.

Inaddition,shareswereheldinothercompanies(seetableentitled“Furtherequityinterestsandfinancialassets”,page74).InaccordancewiththeprincipleofmaterialitypursuanttotheIFRS/IASframework,thecompaniesstatedinthetable,whicharefundamentallysubjecttocompulsoryconsolidation(OHBshare›20%),arenotincludedintheconsolidationperim-eter.Thesecompanies’cumulativecurrentsalesandEBITarenotconsideredtomakeanymaterialcontributionstoconsoli-datedearnings.Subsidiarieswithdiscontinuedorminimalbusi-nessactivitieswhichareofonlyminorimportanceforobtainingatrueandfairviewoftheOHBGroup’snetassets,financialconditionandresultsofoperationsaswellasitscashflowarenotconsolidated.Theshareholdingsshowninthetablesenti-tled“Consolidationperimeter”and“Furtherinvestmentsandfinancialassets”correspondtothevotingrightsheld.

OHBAG’sconsolidatedfinancialstatementsincludethefollowingcompanies:see“consolidationperimeter”table.

CurrencytranslationMostoutgoinginvoicesaredenominatedineuro.Incomingandoutgoinginvoicesdenominatedinaforeigncurrencyareconvertedandrecognizedonthebalance-sheetdate.Foreign-currencybankbalancesweretranslatedattheend-of-yearexchangerate.Theannualfinancialstatementsoftheinde-pendentnon-domesticsubsidiaryOHBSwedenABwerepreparedinitsdomesticcurrency(SEK)andtranslatedusingthefunctionalcurrencyprincipleinaccordancewithIAS21.

Consolidatedcompanies

Nameofcompany shareheld(%) Consolidation

OHBSystemAG,Bremen(Germany) 100.0 Fullyconsolidated

ORBCOMMDeutschlandSatellitenkommunikationAG,Bremen(Germany)¹ 100.0 Fullyconsolidated

CGSS.p.A.,Milan(Italy) 100.0 Fullyconsolidated

OHBSwedenAB,Stockholm(Sweden) 100.0 Fullyconsolidated

AntwerpSpaceN.V.,Antwerp(Belgium) 100.0 Fullyconsolidated

LuxSpaceSàrl,Betzdorf(Luxembourg) 100.0 Fullyconsolidated

MTAerospaceHoldingGmbH,Bremen(Germany) 70.0 Fullyconsolidated

MTAerospaceAG,Augsburg(Germany)² 100.0 Fullyconsolidated

MTAerospaceGrundstücksGmbH&Co.KG,Munich(Germany)³ 100.0 Fullyconsolidated

MTMechatronicsGmbH,Mainz(Germany)³ 100.0 Fullyconsolidated

MTAerospaceGuyaneS.A.S.,Kourou(FrenchGuiana)³ 100.0 Fullyconsolidated

AerotechPeissenbergGmbH&Co.KG,Peissenberg(Germany)² 43.3 AtEquity

OHBTeledataGmbH,Bremen(Germany) 100.0 Fullyconsolidated

megatelInformations-undKommunikationssystemeGmbH,Bremen(Germany) 74.9 Fullyconsolidated

¹heldbyOHBSystemAG²heldbyMTAerospaceHoldingGmbH³heldbyMTAerospaceAG

72

OHB AG | 2014


Theforeign-currencydifferencearisingfromtranslationoftheequitycapitalisrecordedwithinequityfromunrealizedgains/losses.

summaryofsignificantaccountingpoliciesTheInternationalAccountingStandardsBoard(IASB)andIFRIChaverevisedthefollowingstandardsandinterpretationswhicharesubjecttocompulsoryapplicationfrom2014:> IfRs10ConsolidatedFinancialStatements–IFRS10

replacestheguidanceonconsolidationcontainedinIAS27.IAS27nowprovidesguidanceonaccountingforsubsidiar-ies,associatesandjointventuresintheinvestor’sseparatefinancialstatements.IFRS10nowcontainsguidanceonconsolidationwhichhadpreviouslybeenincludedgenerallyinIAS27andspecificallyforspecial-purposeentitiesinSIC12.Itintroducesauniformcontrolconcept.Thus,aninves-torcontrolsaninvesteeifithaspowerovertheinvestee,exposuretovariablereturnsfromitsinvolvementandtheabilitytouseitspowerovertheinvesteetoaffecttheamountofthereturn.Theapplicationofthisamendedstandarddidnotgiverisetoanychangestotheconsolidatedfinancialstatements.

> IfRs11JointArrangements–IFRS11providesguidanceonsituationsinwhichacompanyhasaninterestinarrange-mentsthatarejointlycontrolled.IFRS11replacestheguid-

anceinIAS31andSIC13.Asaresultofthemodifieddefini-tions,therearenowtwo“kinds”ofjointarrangements:jointoperationsandjointventures.Theclassificationofjointlymanagedassets(IAS31)hasnowbeenincludedinjointoperations.Thepreviousoptionofproportionateconsolida-tionforjointventuresunderIAS31hasbeenabolished.Instead,jointventuresmustbeaccountedforintheconsoli-datedfinancialstatementsusingtheequitymethod.Asbefore,jointoperationsareaccountedforonaproportionatebasisintheseparateandconsolidatedfinancialstatementsofthejointoperators.TheserulesarenotrelevantfortheOHBGroup.

> IfRs12DisclosuresofInterestsinotherEntities–replacestheguidanceinIAS27,IAS28,IAS31andSIC12onthedis-closurestobeincludedinthenotes.Accordingly,itprovidesuniformguidanceonthedisclosuredutiesforallkindsofinterestsinotherentities.Underthenewstandard,compa-niesmustdiscloseinformationenablingtheusersofthefinancialstatementstoevaluatethenatureofandrisksassociatedwiththeirinterestsinsubsidiaries,associates,jointarrangementsandunconsolidatedstructuredentities.Thedisclosuresintheconsolidatedfinancialstatementshavebeendulyenhanced.

> Ias27SeparateFinancialStatements–IAS27hasbeenmodifiedbythenewconsolidationpackagestandards(IFRS

IfRsadoptedinEuropeanlaw

AnnualimprovementofIFRS-period2011-2013

IfRIC21–Disposals

IfRsnotyetadoptedinEuropeanlaw

IfRs9FinancialInstruments

IfRs14RegulatoryDeferralAccounts

IfRs15RevenuefromContractswithCustomers

InvestmentEntities:ApplyingtheConsolidationException(AmendmentstoIfRs10,IfRs12andIas28)

DisclosureInitiative(AmendmentstoIas1)

SaleorContributionofAssetsbetweenanInvestoranditsAssociateorJointVenture(AmendmentstoIfRs10andIas28)

EquityMethodinSeparateFinancialStatements(AmendmentstoIas27)

BearerPlants(AmendmentstoIas16andIas41)

ClarificationofAcceptableMethodsofDepreciationandAmortisation(AmendmentstoIas16andIas38)

AccountingforAcquisitionsofInterestsinJointOperations(AmendmentstoIfRs11)

DefinedBenefitPlans:EmployeeContributions(AmendmentstoIas19)

AnnualImprovementstoIfRss2010-2012Cycle

AnnualImprovementstoIfRss2012-2014Cycle

Effectivedate(EU)

TobeappliedinaccountingperiodsbeginningonorafterJuly1,2014

TobeappliedinaccountingperiodsbeginningonorafterJune17,2014

Effectivedate

January1,2018

January1,2016

January1,2017

January1,2016

January1,2016

January1,2016

January1,2016

January1,2016

January1,2016

January1,2016

July1,2014

July1,2014

January1,2016

73

OHB AG | 2014


10,IFRS11).FollowingthepublicationofthenewIFRS10,IAS27nowonlyprovidesguidanceonaccountingforsubsid-iaries,jointventuresandassociatesandthecorrespondingdisclosuresinthenotestotheseparatefinancialstatementsunderIFRS.Theapplicationofthisamendedstandarddidnotgiverisetoanychangestotheconsolidatedfinancialstatements.

> Ias28,InvestmentsinAssociatesandJointVentures–TheamendmentsrelatetothechangestoIAS36asaresultofthepublicationofIFRS13.WiththeintroductionofIFRS13,thedisclosurerequirementsinIAS36weretoobroadinsomecases.Thus,forexample,itwouldhavebeenneces-sarytodisclosetherecoverableamountofacash-generat-ingunitwithgoodwillorintangibleassetsofanindefiniteusefulliferegardlessofwhetheranyimpairmentwasrecorded.Undertheamendedguidance,therecoverableamountmustnowonlybedisclosedifanimpairmentwasrecognizedintheperiodinquestion.TheserulesarenotrelevantfortheOHBGroup.

> Disclosuresonrecoverableamountinthecaseofnon-financialassets(amendmentstoIas36–theamendmentsrelatetothechangestoIAS36asaresultofthepublicationofIFRS13.WiththeintroductionofIFRS13,thedisclosurerequirementsinIAS36weretoobroadinsomecases.Thus,forexample,itwouldhavebeennecessarytodisclosetherecoverableamountofacash-generatingunitwithgoodwillorintangibleassetsofanindefiniteusefulliferegardlessofwhetheranyimpairmentwasrecorded.Undertheamendedguidance,therecoverableamountmustnowonlybedis-closedifanimpairmentwasrecognizedintheperiodinquestions.Inaddition,theamendmentsclarifyandextendthedisclosurerequirementswithrespecttoimpairedassetswhoserecoverableamountwasdeterminedonthebasisoftheirfairvaluelesscosttosell.Theapplicationofthisamendedstandarddidnotgiverisetoanychangestotheconsolidatedfinancialstatements.

> Novationofderivativesandcontinuationofhedgeaccounting(amendmentstoIas39)–thepurposeoftheamendmentsistopreventanyeffectsonhedgeaccountingwhenderivativesrequiredfornovationarenecessary.AsaresultoftheamendmentstoIAS39,thenovationofaderivativedoesnotleadtothedissolutionofthehedgeprovidedthatcertainconditionsarecumulativelysatisfied.Theapplicationofthisamendedstandarddidnotgiverisetoanychangestotheconsolidatedfinancialstatements.

> JointArrangementsandDisclosureofInterestsinOtherEntities–transitionguidance(amendmentstoIfRs10,IfRs11andIfRs12)–thepurposeoftheamendmentsistoclar-ifythefirst-timeapplicationofIFRS10.Additionally,furtherexceptionsaredefinedinallthestandardsoftheconsolida-

tionpackage.Inaddition,therestatementofthecomparisonfiguresarisingfromretrospectiveapplicationisrequiredonlyforthe(immediately)precedingperiodevenifreportingcoversmorethanonecomparisonperiod.TheserulesarenotrelevantfortheOHBGroup.

> Investmententities(amendmentstoIfRs10,IfRs12andIas27)–theamendmentstoIFRS10,IFRS12andIAS27definetheterm“investmententity”.Inaddition,aparentcompanywhichisaninvestmententityisrequiredtomeas-ureitssharesinindividualassociatesatfairvaluethroughprofitandlossintheconsolidatedandseparatefinancialstatements.TheserulesarenotrelevantfortheOHBGroup.

> Offsettingofafinancialassetandafinancialliability(amendmentstoIas32)–thisamendmentclarifiesanum-berofrulespertainingtotheoffsettingoffinancialassetsandfinancialliabilitiesonthebalancesheet.TheserulesarenotrelevantfortheOHBGroup.

TheIASBhasissuedthestandards,interpretationsandrevisionstoexistingstandardssetoutinthetableonpage72whicharenotyetcompulsoryanddonotbecomesountilfuturereportingperiodsandwhichOHBAGhasnotadoptedonavoluntaryearlybasis.Onthebasisofapreliminaryassessment,theapplicationoftheabove-mentionedstandardsandinterpretationswillnotexertanymaterialinfluenceonthepresentationofthefinancialstatements.TheManagementBoardofOHBAGhasdecidednottoapplytheaforementionedstandardsbeforetheaccountingperiodsinwhichapplicationbecomesmandatory.

ChangesinaccountingpolicyTherehavebeennochangesintherecognitionormeasurementprinciplescomparedwiththepreviousyear.

RecognitionofrevenuesRevenuesandotheroperatingincomefromseriesproductionarerecognizedonthedateonwhichtheservicesorgoodsareprovidedorriskpassestothecustomer.Withrespecttolong-termcontractconstruction,thepercentage-of-completionmethodprovidedforinIAS11isapplied,subjecttoreasonablediscountsonthebasisofatrueandfairviewtoallowforunex-pectedfutureriskstotheextentthatitispossibletocalculatethepartialprofitwithadequateprecisiononthebasisofthepercentageofcompletion.Forthispurpose,thepercentageofcompletionisdeterminedonthebasisofthecontractcostswhichhavearisenasofthereportingdaterelativetotheexpectedtotalcontractcosts.Revenuesfromcontractsarecal-culatedbymultiplyingthepercentageofcompletionwiththecontractuallyagreedproceedsincludinganysubsequentlyagreedadditions.Long-termprojectsinprogressonthereportingdate(remainingdurationsofbetweenoneandtenyears)arerecognizedasrevenueonthebasisofproduction

74

OHB AG | 2014


costsplusrefundableadministrativeoverheadcostsprovidedthatapartialprofitcanbeestimatedwithareasonabledegreeofreliability.Partialprofitsarerecognizedinotherprojectsusinggenerallyacceptedprinciples.

OwnworkcapitalizedDevelopmentexpenditureisrecognizedasanassetpursuanttoIAS38.57ifanewlydevelopedproductorprocesscanbeclearlydelineated,istechnicallyfeasibleandisintendedeitherfortheCompany’sownuseorforsale.Afurtherconditionisthatitmustbesufficientlylikelyforthedevelopmentexpendi-turetoberecoupedfromfuturecashflows.Suchexpenditureisrecognizedonthebasisoftheproductioncostsincurred,pri-marilydevelopmenthoursmultipliedbytheapplicablehourlyrate.Intheyearunderreview,researchanddevelopmentcostsofEUR2.168million(previousyear:EUR7.380million)wererecordedasexpenseasthecriteriaprovidedforinIAS38.57werenotsatisfied.OfthetotaldevelopmentcostsofEUR20.1million(previousyear:EUR22.1million),anamountofEUR13.9million(previousyear:EUR10.8million)wascapitalizedandEUR4.0million(previousyear:EUR3.9million)receivedintheformofgrants.Intheyearunderreview,theinternallyproducedintangibleassetsofoneGroupcompanywerere-

assessed,resultinginanincreasedusefullifewithapositiveeffectonearningsofEUR0.981million.Theincomefromdevel-opmentgrantsisrecognizedupontheoccurrenceoftherelatedcosts.Incomefromgrantsisreportedgross,i.e.itisnotnettedwithexpenses.Atthemoment,thereisnoevidenceindicatingthattheconditionsimposedbytheprovidersofgrantscannotbesatisfied.

NetfinanceexpenseNetfinanceincome/expenseincludestheshareofprofitsofassociatesaccountedforusingtheequitymethodaswellasotherinvestmentsincludingprofitfromthesaleoffinancialassets,adjustmentstothevalueoffinancialassets,otherinter-estexpenditureonliabilities,dividends,interestincomeonreceivablesandforeign-currencygainsandlosses.Interestincomeisrecordedintheincomestatementusingtheeffectiveinterestmethod.Dividendsarereportedintheincomestate-mentuponaresolutiontodistributeadividendbeingpassed.Interestexpenditureonpensionprovisionsarealsoreportedasotherinterestexpenditure.

Nameofcompany

RSTRadarSystemtechnikGmbH,Salem(Germany)*

OHBFranceS.A.,Paris(France)*

OHB-ElectroOPticsGmbH,Bremen(Germany)*

beosGmbH,Bremen(Germany)

ATBGmbH,Bremen(Germany)

OHBMarineTechnologiesGmbH,Bremen(Germany)*

COSMOSInternationalSatellitenstartGmbH,Bremen(Germany)*

CosmosSpaceSystemsAG,Bremen(Germany)*

TelemondoInternationalGmbH,Bremen(Germany)*

KTVerwaltungsgesellschaftmbH,Bremen(Germany)*

AntaresS.c.a.r.l.,SanGiorgioDelSannio(Italy)*

ArianespaceParticipation,Evry(France)

MTDezentraleEnergiesystemeGmbH,München(Germany)*

MTMecatronicaLimitada,SantiagodeChile(Chile)*

MTMecatronicas.r.l.,Cagliari(Italy)*

MTManagementServiceGmbH,Augsburg(Germany)*

ORBCOMMInc.,RochellePark,NJ(USA)

*notconsolidatedintheyearunderreviewformaterialityreasons

furtherinvestmentsandfinancialassets

share-

holders’equity000s

1,018

n/a

10

399

503

603

205

59

13

23

190

n/a

1,023

–172

8

n/a

158,904

shareincapitalEUR

000s

190

37

13

60

26

25

13

40

26

25

58

8,328

1,022

530

10

26

12,008

shareheld(%)

24.0

100.0

50.0

12.0

5.0

100.0

49.9

66.6

100.0

100.0

24.0

8.3

100.0

99.9

100.0

100.0

4.7

profit/loss000s

49

n/a

–1

14

27

–1

7,181

2

0

0

0

n/a

0

–185

–2

n/a

3,735

latestannualfinancial

statement

2013

n/a

2013

2012

2013

2013

2013

2013

2013

2013

2013

n/a

2014

2014

2014

n/a

2013

75

OHB AG | 2014


IntangibleassetsAsofeachreportingdate,OHBreviewsthecarryingamountsofitsintangibleassetstoidentifyanyevidenceofimpairment.

Inthiscase,therecoverableamountoftheassetinquestioniscalculatedtodeterminetheamountofanyimpairment.Therecoverableamountisdefinedasthefairvaluelesspossiblecoststosellorthevalueinuse,whicheveristhegreater.

Intangibleassetsacquiredfromthirdpartiesprimarilycomprisesoftwareprogramsandlicenses.Thesearewrittendownonastraight-linebasisoveraperiodofbetweenoneandfifteenyears.Internallygeneratedassetsarewrittendownonastraight-linebasisovertheirexpectedusefullifeoffourtoeightyears.Forthepurposeofidentifyinganyimpairment,goodwillmustbeallocatedtoeachcash-generatingunitwithintheGroupexpectedtoderiveanybenefitfromthesynergisticeffectsofthebusinesscombination.Cash-generatingunitstowhichpartofthegoodwillisallocatedaresubjecttoannualimpairmenttesting.Ifthereisanyevidenceofimpairmentofacash-gener-atingunit,itistestedmorefrequentlyforimpairment.Iftherecoverableamountofacash-generatingunitislessthanitscarryingamount,theimpairmentlossisinitiallyassignedtothecarryingamountofallgoodwillallocatedtotheunitandthenonaproportionatebasistotheotherassetsonthebasisofthecarryingamountofeachassetwithintheunit.Theuseofgrowthratesisofonlysubordinateimportanceasplanningisprimarilyinfluencedbyspecificprojects.

property,plantandequipmentAsofeachreportingdate,OHBreviewsthecarryingamountsofitsproperty,plantandequipmenttoidentifyanyevidenceofimpairment.Inthiscase,therecoverableamountoftheassetinquestioniscalculatedtodeterminetheamountofanyimpair-ment.Therecoverableamountisdefinedasthefairvaluelesspossiblecostsofsaleorthevalueinuse,whicheveristhegreater.Assetsclassedasproperty,plantandequipmentarecarriedathistoricalcostlessscheduledstraight-linedeprecia-tionovertheirexpectedusefullives.Subsequentexpenditureonassetswhichdoesnotincreasetheirvalueormateriallyextendtheirusefullivesisexpensed.Materialadditionsandimprove-mentsarerecognizedasassets.Disposalsarereflectedinhis-toricalacquisitioncostsaswellasaccumulativedepreciation.Profitandlossfromthedisposalofassetsarerecordedwithinoperatingincome/expenses.Thefollowingdepreciationperiodsareappliedtoproperty,plantandequipment:betweentenand33yearsforbuildings,fivetotenyearsformachineryandtech-nicalequipmentandthreetotenyearsforotherequipmentaswellasoperatingandbusinessequipment.

financialassetssharesinassociatesSharesinassociatesarereportedathistoricalcostincludingtheshareintheirprofit/lossfortheyear.

OtherfinancialassetsOtherfinancialassetsarereportedathistoricalcost(lessanyimpairments)or,ifmarketpricescanbeidentified,attheirfairvalue.Atesttoidentifyanyobjectiveevidenceofimpairmentisperformedasofeachreportingdate.ThisitemcomprisestheinvestmentsinORBCOMMInc.,detailsofwhosestockmarketpriceswereavailableasofthereportingdate.Adjustmentsresultingfromfairvalueaccountingarerecognizedunderequity.Thedeferredtaxarisingfromthisisreportedunderdeferredtaxliabilities.Otherfinancialassetsaresetoutinthetableentitled“Furtherinvestmentsandfinancialassets”.

InventoriesInventoriesarerecognizedathistoricalcostorthelowernetrecoverablevalueprevailingonthereportingdate.Productioncostscomprisetheindividualcostsofmaterialandproduction,overheadcostsofmaterialandproductionaswellasdeprecia-tionandamortizationexpenseinconnectiontheproductionequipment.Theyalsoincludeoverheadadministrationcosts.Partoftheinventoriesweremeasuredusingthemovingaver-agemethod.

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OHB AG | 2014


ReceivablesReceivablesandotherassetsarereportedattheirsettlementamount.Ifinindividualcasestherearejustifieddoubtsastowhetherreceivablescanberetrieved,theyarewrittendownorrecordedatthelowerrecoverablevalue.

InthecaseofconsolidatedcompanieswithconstructioncontractsasdefinedinIAS11ontheirbooks,thepercentage-of-completionmethodisappliedallowingforreasonabledis-countsonthebasisofatrueandfairviewtotakeaccountofunexpectedfuturerisksasfarasitispossibletocalculatethepartialprofitwithadequateprecisiononthebasisoftheper-centageofcompletion.Constructionprojectsinprogressonthereportingdate(remainingdurationsofbetweenoneandeightyears)arerecognizedasassetsonthebasisofproductioncostsplusproratedrefundableadministrativeoverheadcostspro-videdthatapartialprofitcanbeestimatedwithareasonabledegreeofreliability.ProjectsforwhichpartialprofitshavebeenrecognizedarereportedunderrevenuespursuanttoIAS11.22.Thecorrespondingcontractcostsarerecognizedascostofmaterials/servicesinthefiscalyearinquestion.

securities/financialinstrumentsThefairvaluesaredeterminedonthebasisofthestockmarketpricesasofthereportingdate.Non-currentsecuritiesaremeasuredinaccordancewithIAS39andIFRS7(Reclassifica-tionofFinancialAssets).

deferredincometaxesPursuanttoIAS12,temporarydifferencesbetweenthecarry-ingamountofassetsorliabilitiesonthebalancesheetandtheirtaxbaseinaccordancewithIFRS/IASgiverisetodeferredincometaxes.TheOHBGroupappliesauniformdomestictaxrateof32%forcalculatingdeferredincometaxes.

EquityIAS32(FinancialInstruments:DisclosureandPresentation)stipulatesthatequitymustnotincludeanycontractualobliga-tiontodelivercashoranyotherfinancialassettoanotherentity.OHBAGdefinesequityassubscribedcapital,thesharepremium,unrealizedgainsandlossesrecognizedwithinequity,retainedearningsandaccruedprofitbroughtforward.

RetirementbenefitprovisionsObligationsunderdefinedbenefitplansarecalculatedusingtheprojectedunitcreditmethodinaccordancewithIAS19(EmployeeBenefits).Theexpectedbenefitsaredeferredovertheentireperiodofserviceoftheemployees.

OtherprovisionsOtherprovisionshavebeenreliablyassessedformattersresultinginanoutflowofenterpriseresourcestosettlepresentobligationsinaccordancewithIAS37.Estimatesareprimarilybasedondetailedcalculations.

liabilitiesLiabilitiescomprisefinancialliabilities,tradepayablesandotherliabilities.Financialliabilitiesarereportedatamortizedcost.Anydifferencesbetweenhistoricalcostandthesettle-mentamountarereportedinaccordancewiththeeffectiveinterestmethod.Otherliabilitiesarerecognizedattheirnomi-nalorsettlementamount.

EstimatesProperandfullpreparationoftheconsolidatedfinancialstate-mentsrequirestosomedegreetheuseofestimatesandassumptions,whichaffecttheassetsandliabilitiesreported,thedisclosureofcontingentliabilitiesandreceivablesonthebalancesheetandtheincomeandexpensesrecognized.Theactualamountsmayvaryfromtheseestimatesandassump-tionsinindividualcases.Anyadjustmentsaretakentotheincomestatementuponfurtherknowledgebecomingavailable.Thevalueofgoodwillisdeterminedinanannualimpairmenttest.Thistestinvolvesestimatesoffuturecashinflows.FuturechangesinthegeneraleconomicenvironmentandthesituationofthesectororCompanymayresultinareductioninnetcashinflowsand,hence,impairthevalueofthegoodwill.Technicalprogress,deteriorationinthemarketsituationordamagemaynecessitatenon-scheduleddepreciationofproperty,plantandequipment.Thepercentage-of-completionmethodisappliedtolong-termconstructioncontractsprovidedthattheapplicableconditionsaresatisfied.Forthispurpose,thecostsincurredaredividedbythetotalcoststocalculatethepercentageofcompletion.Pensionprovisionsarecalculatedonthebasisofanumberofpremisesandassumedtrends,theapplicationofbiometricprobabilitiesaswellasgenerallyacceptedapproxi-mationmethodstodeterminepensionobligations.Actualpay-mentobligationsarisingovertimemayvaryfromthese.Taxprovisionsandimpairmenttestingofdeferredtaxassetsarealsobasedonestimates.Indeterminingthevalueofdeferredtaxassets,uncertaintymayarisewithrespecttotheinterpre-tationofcomplextaxlegislationaswellastheamountandtim-ingoffuturetaxableincome.Otherprovisionsarerecognizedinthelightofavailableknowledgeandusingthecustomaryscopefordiscretion.Inviewofthecurrentconditionsintheeconomyandthefinancialmarkets,itisnotpossibleatthisstagetomakeanyreliableassumptionsontherangeofpossibleadjust-mentswhichmayneedtobemadetotheestimatesin2015.

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OHB AG | 2014


vII.NOTEsONThECONsOlIdaTEdINCOmEsTaTEmENT

(1)salesRevenuesfromconstructioncontractsasdefinedinIAS11cametoEUR619.819millionin2014(previousyear:EUR506.830million).TherelatedcontractcostsstoodatEUR597.591million(previousyear:EUR476.507million).Theresult-antearningsbeforeinterestandtaxes(EBIT)for2014equaledEUR22.228million(previousyear:EUR30.324million).

Salesbreakdownbybusinessunitasfollows:

inEUR000s 2014 2013

SpaceSystems 545,286 466,927

Aerospace+IndustrialProducts 193,993 220,316

Consolidation –11,131 –7,122

Total 728,147 680,121

additionaldisclosuresonpOCmeasurement(Ias11)

inEUR000sNet

assetsNet

liabilities Total

Expenses+profit 1,585,879 376,020 1,961,899

Prepaymentsreceived 1,302,305 447,938 1,750,243

amountshownonbalancesheet

283,574

–71,918

211,656

(2)Increase/decreaseininventoriesoffinishedgoodsandworkinprogressTheincreaseininventoriesoffinishedgoodsandworkinpro-gressprimarilyrelatestotheincreaseofEUR11.0millioninthe“Aerospace+IndustrialProducts”businessunit(previousyear:decreaseofEUR3.7million).Alltold,inventoriesrosebyEUR11.7million(previousyear:declineofEUR4.1million).

(3)OtheroperatingincomeTheotheroperatingincomeofEUR18.368million(previousyear:EUR11.037million)includesincomefromthesaleofthesharesinELTAS.A.ofaroundEUR7millionandtheproceedsfromthedeconsolidationofATPofEUR3.8million.IncomefromgrantsstandsatEUR3.975million(previousyear:EUR3.892million).

(4)Costofmaterials

inEUR000s 2014 2013

Costofrawmaterialsandgoodspurchased 325,787 301,294

Costofservicesbought 171,478 121,335

Total 497,265 422,629

(5)staffcosts

inEUR000s 2014 2013

Wagesandsalaries 146,330 151,700

Socialsecurityandexpenditureonretirementbenefits 29,992 30,485

Total 176,322 182,185

RetirementbenefitsandretirementbenefitprovisionscametoEUR4.734million(previousyear:EUR4.447million).

(6)depreciationandamortizationNonon-scheduleddepreciation/amortizationwasrequiredintheyearunderreview.Furtherdetailsondepreciation/amorti-zationaresetoutintheconsolidatedstatementofchangesinassets.

Intangibleassetsandproperty,plantandequipment

Financialassets

Currentassets

Provisions

Liabilities

Taxlossesandcredits

Balance

Total

analysisofdeferredtaxesandassets

inEUR000s 2014 2014 2013

Deferredtaxassets

50

382

12

13,424

403

8,044

–7,557

14,758

2013


13,126

337

13,248

135

0

121

–7,557

19,410

Deferredtaxassets

217

393

125

11,776

177

6,546

–8,836

10,398


12,379

310

13,919

8

28

306

–8,836

18,114

Changeeffectingnetincome

–914

–8

538

–1,503

254

1,683

0

50

Changeeffectingnetincome

–1,709

–105

–2,194

2,519

–354

647

0

–1,196

78

OHB AG | 2014


(7)Netfinanceincome/expenseTheinterestincomeofEUR1.601million(previousyear:EUR1.258million)primarilycomprisesinterestearnedontheinvestmentofcashinfixed-termdeposits.

TheotherfinanceexpenseofEUR7.824million(previousyear:EUR7.209million)chieflyrelatestointerestexpenditureonretirementbenefitprovisionsofEUR3.323million(previousyear:EUR3.565million)andborrowingcostsofEUR3.013mil-lion(previousyear:EUR1.951million).

shareofprofit/lossofassociatesTheshareofprofit/lossofassociatescomprisestheshare

intheprofitofEUR0(previousyear:lossofEUR0.576million)sustainedbyELTAS.A.TheproportionateshareintheprofitorlossofAerotechPeissenbergGmbH&Co.KGstandsatEUR0millionin2014.

(8)IncometaxesActualincometaxofEUR5.078million(previousyear:EUR3.759million)arosewithrespecttotheconsolidatedGermancompanies;incometaxofEUR0.439million(previousyear:EUR1.099million)aroseoutsideGermany.Domesticincometaxesin2014werecalculatedindetailusingdifferenttaxrates.DeferredtaxassetsarerecognizedpursuanttoIAS12.Thedomesticdeferredincometaxiscalculatedonthebasisoftaxratesof32%.

Reconciliationoftaxexpense

inEUR000s 2014 2013

Taxesatataxrateof32.00% 10,840 9,513

Reductionsintaxexpensesasaresultofpartiallytax-exemptincome –3,332 –1

Taxlossesutilized –5,154 –386

Non-deductibleoperatingexpenses 1,316 335

Othertaxeffects –452 –6

Off-periodtaxexpense 1,768 197

Differencesinforeigntaxrates –280 8

Effectivetaxexpense 4,706 9,660

deferredincometaxesThedeferredincometaxassetsprimarilyarisefromthediffer-enceinprovisionsforretirementbenefitcommitmentsinaccordancewithtaxlawsontheonehandandIFRSontheother.

In2014,deferredincometaxassetsofEUR0.811million(previousyear:EUR1.196million)wererecognizedinprofitandloss.TwosubsidiariesrecognizeddeferredincometaxassetsonunusedtaxlossesofEUR1.754million(previousyear:EUR0.823million).DeferredincometaxeswererecognizedontheunusedtaxlossesofEUR5.096millionreportedbyAntwerpSpaceN.V.forthefirsttimeduetothesustainedpositivebusi-

nessperformance.Deferredincometaxeswererecognizedonthatpartoftheunusedtaxlosseswhichareexpectedtobeset-tledinthecomingeightyearsinaccordancewiththecompany’splans.

(9)Non-controllinginterestsNon-controllinginterestsarevaluedatEUR3.455million(pre-viousyear:EUR0.632million)andchieflyrelatetoMTAero-spaceHoldingGmbH.TheMTHoldingsubgroup,inwhichOHBAGholdsa70%share,generatedtotalrevenuesofEUR199.150million(previousyear:EUR211.943million),EBITofEUR19.489million(previousyear:EUR6.557million)andEBITDAofEUR24.209million(previousyear:EUR14.362million).

IfRs/IasearningspershareBasicearningspersharearecalculatedbydividingthepost-taxearningsattributabletothesharesinquestionbythetotalnumberofshareswithdividendentitlement.Thisindicatormaybedilutedbyso-calledpotentialshares–particularlyoptionsandsubscriptionrights.Therewerenocomparablerightsasofthereportingdate.Accordingly,thereisnodifferencebetweenbasicanddilutedearningspershare.TheCompany’ssharecapitalstandsatEUR17,468,096.00.Thecalculationswerebasedon17,387,600sharesastheCompanyheldanannualaverageof80,496treasuryshares.TheconsolidatednetprofitofEUR25.713million(previousyear:EUR19.436million)netofnon-controllinginterestswasusedforcalculationpurposes.Earningspersharefor2014cametoEUR1.48(previousyear:EUR1.12).

vIII.NOTEsONThECONsOlIdaTEdBalaNCEshEET

(10)GoodwillandotherintangibleassetsThebalancesheetfortheyearendingDecember31,2014includesgoodwillofEUR7.687million(previousyear:EUR7.687million).

Goodwill

inEUR000s 2014 2013

Goodwillfromconsolidationof:OHBSystemMunich 5,003 5,003

CGSS.p.A. 801 801

OHBSystemBremen 681 681

megatelGmbH 646 646

ORBCOMMDeutschlandAG 556 556

Total 7,687 7,687

Goodwillwastestedforimpairmentatthelevelofthecashgen-eratingunitsasdesignatedintheabovetable.Goodwillunder-wentimpairmenttestingasofDecember31,2014.Noimpair-mentswereidentified.Therecoverableamountwascalculatedonthebasisofthevalueinuse,whichinturnwasdetermined

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OHB AG | 2014


byusingadiscountedcashflowmethod.Thiswasbasedontheforecastscoveringaperiodoffiveyearsapprovedbymanage-mentforthecompaniesconcerned.Apre-taxweightedaveragecostofcapital(WACC)of9.10%(previousyear:10.90%)wasappliedtodomesticgoodwillandof12.80%(previousyear:14.60%)tonon-domesticgoodwill.Theotherintangibleassetschieflycompriseownworkcapitalized(seeconsolidatedstate-mentofchangesinassets).Goodwillandotherintangibleassetsareanalyzedonpages88/89.ThedefinitionsoftheCGUshavebeenmodifiedinthelightofthemergersin2014.TheformerKayser-ThredeCGUisnowreferredtoasOHBSystemMunichand,incontrasttothepreviousyear,isnolongeralegallyindependententity.ThegoodwillattributabletoSTSSystemtechnikSchwerinGmbHandTimtecTeldatransGmbHhasbeenallocatedtotheOHBSystemBremenCGU.AnincreaseintheWACCof1percentagepointwouldnotresultinanimpairment.

(11)property,plantandequipmentAdditionsintheyearunderreviewprimarilyentailedtechnical/electroniclaboratoryequipment,technicalequipmentandmachinery,hardware,operatingandbusinessequipmentandminor-valueassets.Withtheexceptionofthelandchargesreferredtoin“Otherfinancialobligations”,therearenorestric-tionsontheownershiprightstotheremainingassetsclassedasproperty,plantandequipment.Thedepreciationamountsaresetoutintheconsolidatedstatementofchangesinassets.Noimpairmentswererecognized.Property,plantandequip-mentareanalyzedonpages88/89.

(12)sharesinassociatesThisitemcomprisestheshareintheequityofATP,Peissen-berg.Themajorityshareholderexercisesacontrollinginflu-enceonthisentity’sbusinessmodel.ATPrecordedtotalreve-nuesofEUR62.855million,EBITofEUR1.378millionandEBITDAofEUR3.470millionin2014fromthedateonwhichitwasaccountedforusingtheequitymethod.Ithadnon-currentassetsofEUR28.913millionandcurrentassetsofEUR36.534millionasofDecember31,2014.Asthecompanyhadnegativeequityasofthereportingdate,thisitemstandsatEUR0(previ-ousyear:ELTAEUR0.683million).

(13)OtherfinancialassetsTheincreaseinfairvaluerecognizedwithinequityofEUR1.760million(previousyear:EUR3.625million)relatestotheremeasurementofthesharesheldinORBCOMMInc.ItwasremeasuredonthebasisofthestockmarketpriceofORB-COMMInc.asofDecember31,2014andtheUSD/EURexchangerateasofthesamedate.Thestatementofcomprehensiveincomeincludesnetgains/lossesfromthemeasurementoffinancialassetsofEUR1.732million(previousyear:EUR3.582million).

(14)Currentandnon-currentreceivablesandotherassetsReceivablesandotherassetsarerecognizedatamortizedcost.ReceivablesofEUR1.611million(previousyear:EUR2.277mil-lion)aredueforsettlementinmorethanoneyear.Thecarryingamountsofcurrentassetsandotherreceivablesprimarilymatchtheirfairvalue.ReceivablesofEUR202.988million(pre-viousyear:EUR215.174million)relatetoconstructioncontractsrecognizedusingthepercentage-of-completionmethod.Re-ceivablesandotherassetsmainlycomprisecurrentandnon-currentloans;therearenomaterialinterestordefaultrisks.Asofthereportingdate,currencyforwardsworthUSD11.2millionhadbeentransactedtohedgeunderlyingcontractsofUSD10.7milliontocovertheexportsofaconsolidatedcompany.Thedifferenceisreportedascashflowhedgesforexpectedorderreceiptsin2014.Tradereceivablesaredueforsettlementinlessthanoneyearandarereportedatamortizedcost,whichgenerallyequalstheirsettlementamountnetofanyadjust-ments.

Reasonableadjustmentsaremadetoallowfordiscerniblerisks.Asofthereportingdate,adjustmentsofatotalofEUR1.563million(previousyear:EUR3.794million)hadbeenmade.Othertaxreceivableschieflycompriseincometaxrefundclaims.

(15)InventoriesInventoriesdroppedoverthepreviousyeartoEUR76.354mil-lion(previousyear:EUR83.048million).Prepaymentsreceivedarenotnettedwithinventories.

inEUR000s 2014 2013

Rawmaterialsandsupplies 11,249 18,105

Unfinishedgoodsandservices 48,153 49,491

Finishedgoodsandmerchandise 1,828 6,178

Prepaymentsmade 15,124 9,274

Total 76,354 83,048

Prepaymentsmadewereallocatedtoinventoriesduetotheircloserelationship.Impairmentswererecognizedonworkinprogressandincludedinprofitandlossintheyearunderreview.

(16)securitiesAsofthereportingdate,thesecuritiesportfoliowasvaluedatEUR4.512million(previousyear:EUR4.652million).Thisbreaksdownasfollows:financialassetsatfairvaluethroughprofitorlossEUR2.846million(previousyear:EUR2.830mil-lion)andloansandreceivablesEUR1.666million(previousyear:EUR1.822million).Financialrisksprimarilycompriseliquidity,marketpriceandcounterpartydefaultrisks.Therearenomaterialshort-termliquidityorcounterpartydefaultrisksaslow-riskinvestmentfundsareselectedforthemostpart.Intheinterestsforavertingmarketpricerisks,virtuallyallcashisinvestedinfundswhichcanberedeemedatshortnoticeinordertoachievebroadriskdiversification.

80

OHB AG | 2014


(17)CashandcashequivalentsCashandcashequivalentswerevaluedatEUR50.478milliononthereportingdate(previousyear:EUR54.259million)andcomprisedcashinhandandcashatbanks.Thecashatbanksisduewithinthreemonthsandisexposedtoonlyaminimalriskofanychangeinvalue.

(18)subscribedcapitalSinceSeptember30,2009,theCompany’sissuedcapitalhasequaledEUR17,468,096.00andisdividedinto17,468,096no-par-valueordinarybearersharesequivalenttoanotionalshareofEUR1.00eachintheCompany’sissuedcapital.Oftheseshares,anunchangednumberof5,208,880comparedwiththepreviousyearisfreefloat.Thereisonevoteforeachshareheld.

(a)ContingentcapitalAttheirannualgeneralmeetingheldonJanuary23,2001,theCompany’sshareholderspassedaresolutiontoincreasetheCompany’ssharecapitalbyapprovingtheissueofatotalofEUR516,404.00intheformofupto516,404bearersharesonacontingentbasis.Thecontingentcapitalincreaseistobeusedforgrantingoptionstoentitledpersonsunderastaffcompen-sationsystem.Nosuchstaffcompensationsystemsarecur-rentlyinoperation.Thecontingentcapitalincreasemayonlybeimplementediftheholdersofsuchoptionsexercisethese.Thenewsharesaredividend-entitledforthefirsttimeintheyearinthecourseofwhichtheyareissued.TheManagementBoardisauthorizedsubjecttotheSupervisoryBoard’sapprovaltodeterminethespecificconditionsforsuchcontingentcapitalincrease.IntheeventthatoptionsaregrantedtomembersoftheCompany’sManagementBoard,theSupervisoryBoardisauthorizedtodeterminethespecificconditionsforsuchcontin-gentcapitalincrease.

(b)authorizedcapitalAttheirannualgeneralmeetingheldonMay19,2010,theshareholderspassedaresolutionauthorizingtheCompany’sManagementBoard–withtheSupervisoryBoard’sapproval–toraisethesharecapitalonceorrepeatedlybyatotalofuptoEUR8,734,048.00onacashornon-cashbasis(authorizedcapi-tal)onorbeforeMay18,2015.ThenewsharesmayalsobeissuedtotheCompany’semployees.TheCompany’sManage-mentBoardwasauthorized–subjecttotheSupervisoryBoard’sapproval–toexcludetheshareholders’subscriptionrightsinthefollowingcases:(1)forfractionalamounts;(2)forpartoftheauthorizedcapital2010uptoamaximumofEUR1,746,809.00providedthatthenewsharesareissuedinreturnforcashcapitalcontributionsatapricenotmaterially

lessthanthestock-marketprice(Section186(3)Sentence4oftheGermanStockCorporationAct);(3)forapartofthe2010authorizedcapitaluptoamaximumofEUR8,734,048.00providedthenewshares– areissuedasconsiderationfortheacquisitionofallorpartof

othercompaniesorentitiesorotherassetsandsuchacquisi-tionisintheinterestsoftheCompanyprovidedthatsuchacquisitionisintheinterestsoftheCompany;or

– areissuedasconsiderationforcashcapitalcontributionstohavetheCompany’sstocklistedinaforeignmarketinwhichithaspreviouslynotbeenadmittedtotrading.

TheManagementBoardisadditionallyauthorizedsubjecttotheSupervisoryBoard’sapprovaltodeterminetheextentandnatureoftheoptionrightsandtheotherconditionsofissue.

(c)authorizationtoacquireandselltreasurystockAttheannualgeneralmeetingheldonMay19,2010,theshare-holdersauthorizedtheCompanytobuybacktreasurystockofuptoatotalof10%oftheCompany’ssharecapitalonorbeforeMay18,2015.Uponthisauthorizationtakingeffect,theauthori-zationgrantedonMay13,2009fortheacquisitionandutiliza-tionoftreasurystockwasrevoked.

a)TheCompanyisauthorizedtobuybackatotalofupto10%ofitsownsharecapitalintheamountexistingasofthedateonwhichtheresolutionwaspassed.AtnotimemaythesharesacquiredbytheCompanytogetherwithothertreasurystockalreadyacquiredorstillheldbyitorattributabletoitinaccord-ancewithSections71d,71eoftheGermanStockCorporationActexceedmorethantenpercent(10%)ofitssharecapital.

TheauthorizationmaybeexercisedbytheCompanyinfullorinpart,onceorrepeatedlyorfordifferentpurposesandmayalsobeexercisedbydependentcompaniesorcompaniesinwhichOHBAGholdsamajoritystakefortheiraccountorforthird-partyaccount.

TheauthorizationexpiresonMay18,2015.Theauthoriza-tiongrantedbytheshareholdersintheirresolutionpassedonMay13,2009wascanceleduponthisnewauthorizationtakingeffect.

b)Theacquisitionofsharesmustcomplywiththeequaltreat-mentprinciple(Section53aoftheStockCorporationAct)andisexecutedattheManagementBoard’sdiscretioneitherviathestockmarket(1)orinapublicofferingaddressedtoallshare-holders(2).Inthesecondcase,theprovisionsoftheSecuritiesAcquisitionandTransferActmustbeobservedwhereapplicable.

81

OHB AG | 2014


(1)IftheCompanybuysbackitsownsharesviathestockmarket,thepurchasepricepaidpershare(netoftransactioncosts)maynotbeanymorethan10%aboveorbelowtheaver-ageclosingpriceofthestockinXETRAtrading(oranequivalentreplacementsystem)ontheFrankfurtstockexchangeonthelastthreetradingdayspriortoacquisitionoftheshares.

(2)IftheCompanybuysbackitsownsharesinapublicofferingaddressedtoallshareholders,thepurchasepricepaidpershare(netoftransactioncosts)maynotbeanymorethan10%aboveorbelowtheaverageclosingpriceofthestockinXETRAtrading(oranequivalentreplacementsystem)ontheFrankfurtstockexchangeonthefifth,fourthandthirdtradingdayspriortothepublicationoftheoffer.Ifsuchapublicofferingisoversubscribed,thesharesmustbeboughtbackonaquotasystem.Provisionmaybemadeforthepreferredacceptanceofalowervolumeofupto100sharesofferedpershareholderandroundinginaccordancewithcommercialprovisions.

c)TheManagementBoardisauthorizedtoutilizethetreasurystockacquiredthroughtheexerciseoftheauthorizationmen-tionedaboveforallpurposespermittedbylaw,includingbutnotlimitedtothefollowing:

(1)ActingwiththeapprovaloftheSupervisoryBoarditmayusethetreasurystocktohavetheCompany’sstocktradedonforeignstockexchangestowhichithashithertonotbeenadmitted.

(2)SubjecttotheapprovaloftheSupervisoryBoard,itmayofferortransferthetreasurystocktothirdpartiesforthepur-poseofacquiringcompanies,partsofcompaniesorequityinterestsincludingbutnotlimitedtoadditionstoexistingequityinterests.

(3)ItmayofferthetreasurystocktotheemployeesoftheCompanyorotherentitiesrelatedtoitinaccordancewiththedefinitioninSections15etseq.oftheGermanStockCorpora-tionActasemployeeshares.

(4)ActingwiththeapprovaloftheSupervisoryBoard,itmayredeemthetreasurystockwithoutanyneedforaresolutionoftheshareholdersapprovingsuchredemptionorrelatedactivi-ties.

d)TheManagementBoardisauthorized–subjecttotheapprovaloftheSupervisoryBoardandwithoutanyobligationforafurtherresolutiontobepassedbytheshareholders–tosellthetreasurystockacquiredinaccordancewiththeaboveauthorizationorinanyothermannereitherpubliclyorintheformofanoffertotheshareholdersprovidedthatthesaleisforcashandthepriceofferedisnotmateriallylessthanthepriceatwhichequivalentstockissuedbytheCompanyistradingonthestockmarketonthedateofthesale.Forthepurposesoftheaboverule,thestockmarketpriceisdefinedasthearithmeticmeanofthepricefixedfortheCompany’sstockintheclosingauctionsinXETRAtrading(oranequivalentreplacementsys-tem)ontheFrankfurt/Mainstockexchangeonthelastfivetradingdaysbeforethedateofthesale.Thisauthorizationislimitedtoatotalof10%oftheCompany’ssharecapital.Themaximumof10%isreducedbytheproratedshareinthesharecapitalaccountedforbyshareswhichareissuedduringthetermofthisauthorizationaspartofanequityissueinwhichpre-emptiveshareholderrightsareexcludedinaccordancewithSection186(3)Sentence4oftheGermanStockCorpora-tionAct.Thevolumecoveredbytheauthorizationisalsoreducedbyanamountequalingtheproratedshareinthesharecapitalaccountedforbyconversionand/oroptionrightsunderbondsissuedsincethedateonwhichthisauthorizationtakeseffectinconnectionwithwhichpre-emptiveshareholderrightsareexcludedinaccordancewithSection186(3)Sentence4oftheGermanStockCorporationAct.

e)Theaforementionedauthorizationsmaybeutilizedonceorrepeatedly,inpartorinfull,individuallyorjointly.

Changesinequitynotrecognisedthroughtheincomestatement

inEUR000s

Exchangedifferenceontranslatingforeignoperations

Netgains/lossesfromthemeasuremenmtoffinancialassetsrecordedunderequity

CashflowHedges

Actuarialgains/losses

Total

beforetax

–130

1,760

–65

–10,648

–9,083

beforetax

–86

3,625

–37

–1,501

2,001

taxeffects

0

–28

20

3,024

3,016

taxeffects

0

–43

11

698

666

net

–130

1,732

–45

–7,625

–6,068

net

–86

3,582

–26

–803

2,667

2014 2013

82

OHB AG | 2014


f)Theshareholders’pre-emptivesubscriptionrightswithrespecttotheCompany’streasurystockareexcludedincasesinwhichitisusedinaccordancewiththeauthorizationsdescribedinc)(1)–(3)andd)above.

(19)sharepremiumThesharepremiumprimarilycomprisesthecashproceedsfromthestock-marketflotation.

(20)RetainedearningsRetainedearningsincludesthenegativegoodwillarisingfromtheconsolidationofnewlyacquiredcompaniesupuntil2002.

(21)UnrealizedgainsandlossesrecognizedunderequityThisequityitemrelatestothefair-valuemeasurementofthesharesheldinORBCOMMInc.onthebasisofthestockpriceonthereportingdatenetofthecarryingvalues.Thisadjustmentwasrecognizedwithinequity.

Intheyearunderreview,noprovisionswhichhadbeensetasideinearlieryearswerereleasedtoprofitandlossornettedagainstacquisitioncosts.Italsoincludestheforeigncurrencytranslationdifferencesarisinginconnectionwithindependentsubsidiaries.

(22)TreasurystockOnSeptember13,2011,theManagementBoardofOHBAGdecidedtoimplementastockbuybackprogramandtoacquireupto250,000oftheCompany’ssharesinaccordancewitharesolutionpassedbytheshareholdersattheannualgeneralmeetingonMay19,2010.Uponthisauthorizationtakingeffect,theauthorizationgrantedonMay13,2009fortheacquisitionandutilizationoftreasurystockwasrevoked.ThepurposeofthetreasurystockistoplacetheCompany’ssharesinforeignstockmarkets,topayfortheacquisitionofothercompanies,partsofcompaniesorsharesinsuchcompaniesandtoissuesharestotheCompany’semployees.TheCompanyhasbeenbuyingbacksharesonthestockmarketfloorsinceSeptember14,2011.Sincethebeginningofthebuybackprogram,atotalof13,542shareshavebeenacquiredatanaveragepriceofEUR11.0145.Noshareswereboughtbackintheyearunderreview.

statementofchangesinprovisions

inEUR000s

Pension provisions

–ofwhichnon-current

Other provisions

–ofwhichnon-current

Total

BalanceonDecember31,

2013

96,290

96,290

33,033

3,269

129,323

Added

15,189

15,189

27,630

2,432

42,819

Utilized

4,159

4,159

25,796

765

29,955

Released

1,076

1,076

1,441

467

2,517

Balance

0

0

0

0

0

Changestoconsolidatedcompanies

–9,270

–9,270

–6,042

–1,712

–15,312


2014

96,974

96,974

27,384

2,757

124,358

AsofDecember31,2014,OHBAG’streasurystockcomprisedatotalof80,496shares,equivalentto0.46%ofitsissuedcapital.

(23)Non-controllinginterestsThenon-controllinginterestsarevaluedatEUR8.747million(previousyear:EUR9.173million)andprimarilyrelatetotheco-shareholdersintheMTAerospacesubgroup.Thenon-con-trollinginterestsreceiveddividendsofEUR2.173millionintheyearunderreview(previousyear:EUR0.036million).Asofthereportingdate,MTHolding,inwhichOHBAGholdsa70%inter-est,hadnon-currentassetsofEUR54.642million(previousyear:EUR78.779million),currentassetsofEUR166.403mil-lion(previousyear:EUR173.470million),equityofEUR14.107million(previousyear:EUR16.512million),non-currentdebtcapitalofEUR104.914(previousyear:EUR119.374million)andcurrentdebtcapitalofEUR102.023million(previousyearEUR116.362million).

(24)RetirementbenefitprovisionsRetirementbenefitobligationsbreakdownasfollows:

inEUR000s 2014 2013

Retirementbenefits 93,994 94,340

Similarobligations 2,979 1,950

Retirementbenefitobligations 96,674 96,290

OHBGrouphasmadearrangementsforretirementbenefitsforentitledemployeesinbothbusinessunits.Theamountofthefuturebenefitsisgenerallybasedonthelengthofservice,amountofremunerationandpositionheldwithintheCompany.Thedirectandindirectobligationsencompassthoseunderexistingpensionsandentitlementtofuturepensionsandretire-mentbenefits.Reinsurancehasbeentakenouttocoverretire-mentbenefitobligations.Notallofthesereinsurancepoliciessatisfytheconditionsforclassificationasplanassets.Thelat-terarereportedwithinothernon-currentassets.Thereinsur-ancepolicieswhichsatisfytheconditionsforclassificationasplanassetsarenettedwiththeretirementbenefitobligations.Therewerenoextraordinaryexpensesorincomeasaresultoftheterminationofanyplansoronaccountofthecurtailmentor

83

OHB AG | 2014


transferofbenefitsintheyearunderreview.Anetcashoutflowcomparabletothepreviousyearisexpectedfor2015(Note4).Thecalculationofpost-retirementbenefitobligationstakesaccountofmarketinterestratesaswellastrendsinwagesandsalaries,pensionsandfluctuationsonthebasisofthefollowingactuarialassumptions:• Discountrate:2.15%(previousyear:3.60%)• Wage/salarytrend:2.75%(previousyear2.75%)• Wagedrift:0.00%(previousyear0.00%)• Pensiondrift:1.25%(previousyear1.75%)

ThefollowingalternativeactuarialassumptionsapplytothesubsidiaryCGSS.P.A.:• Wage/salarytrend:0.00%(previousyear0.00%)• Pensiondrift:3.00%(previousyear3.00%)

ThefollowingalternativeactuarialassumptionsapplytothesubsidiaryAntwerpSpaceN.V.:• Discountrate:1.75%(previousyear:3.15%)• Wage/salarytrend:1.00%(previousyear1.00%)• Pensiondrift:2.00%(previousyear2.00%)• Expectedreturnonplanassets:1.75%(previousyear:3.15%)

Theseparametersarealsoappliedinthefollowingyeartothecalculationofthecostoftheentitlementacquired.Thetotalcostofdefinedbenefitpensioncommitmentsbreaksdownasfollows:

inEUR000s 2014 2013

Currentservicecost 874 927

Interestexpense 3,323 3,608

Expectincome–fromplanassets –203 –227

Total 3,994 4,308

Thepresentvaluesofthedefinedbenefitobligationschangedasfollows:

inEUR000s 2014 2013

PresentvalueofthedefinedbenefitobligationsonJanuary1

100,282

97,488

Changesinthecompaniesconsolidated –10,120 0

Presentvalueoftheentitlementacquiredintheyear

874

928

Interestexpenditureonentitlementalreadyacquired

3,323

3,607

Paymentsfromprovisions –4,734 –4,631

Actuarialgains(–)/losses(+) 10,410 2,890

presentvalueofthedefinedbenefitobligationsondecember31 100,035 100,282

Theplanassetsbreakdownasfollows:

inEUR000s 2014 2013

ValueofplanassetsonJanuary1 6,497 6,729

Paymentsmade –680 –517

Expectedincome 203 227

Actuarialgains(+)/losses(–) 21 58

Retirementbenefitobligations 6,041 6,497

ActualincomefromplanassetscametoEUR0.224million(previousyear:EUR0.286million).

Thepresentvalueisreconciledwiththedefinedbenefit(definedbenefitliability(+)/definedbenefitasset(–))asfollows:

inEUR000s 2014 2013

ActualpresentvalueofthedefinedbenefitobligationonDecember31

100,035

100,282

Fairvalueofplanassets –6,041 –6,497

Retirementbenefitobligationsrecordedonthebalancesheet 93,994 93,785

Theretirementbenefitobligationbreaksdownintoadefinedbenefitliabilityanddefinedbenefitassetasfollows:

inEUR000s 2014 2013

Definedbenefitasset 0 –555

Definedbenefitliability 93,994 94,340

Thechangeinthepresentvalueofthedefinedbenefitobliga-tionsasaresultofconsolidationchangesrelatestothedecon-solidationofAerotechPeissenbergGmbH&Co.KGeffectiveMay31andthetransferofeligibleemployeesandrecipientsofbenefitsfromMTAerospaceAGtothenewlyestablishedentityMTManagementServiceGmbH.Inaddition,thepresentvalueofthedefinedbenefitobligationsasofDecember31includesactuariallossesofEUR9.363millionforMTAerospaceAGandEUR0.766millionforAntwerpSpaceN.V.particularlyasaresultofdeclininginterestrates.

Asaresultofthelowerinterestrate,anetretirementbene-fitliability(definedbenefitasset<-definedbenefitliability)ofEUR0.414million(previousyear:EUR–0.555million)aroseatthesubsidiaryAntwerpSpaceN.V.

ThepresentvalueofthedefinedbenefitobligationsofEUR0.407million(previousyear:EUR0.691million)wascalculatedinaccordancewiththeentryagenormalmethod.Thefractionalvaluesarecomputedusingactuarialprinciplesonthebasisofthe2005GbiometrictablescompiledbyProf.Dr.KlausHeu-beckandaninterestrateof4.58%.Withrespecttotheseprovi-sions,itisassumedthattheapplicationoftheprojectedunitcreditmethodprovidedforinIAS19doesnotresultinanymajordifferencesinthisitem.Ifthediscountratewere0.25%lower,thepresentvalueoftheretirementbenefitobligationswouldincreasebyEUR3.361million.Ifthediscountratewere0.25%higher,thepresentvalueoftheretirementbenefitobli-

84

OHB AG | 2014


gations would decrease by EUR 3.258 million. If the rate by which pensions rise were 0.25% higher, the present value of the retirement benefit obligations would increase by EUR 2.648 million. If the rate by which pensions rise were 0.25% lower, the present value of the retirement benefit obligations would decrease by EUR 2.594 million.

(25) Other provisions (current and non-current)Non-current provisions primarily comprise provisions for phased retirement scheme obligations in the “Aerospace + Industrial Products” business unit. Current provisions of EUR 4.597 million (previous year: EUR 13.182 million) were set aside for the cost of purchased materials and services for which deliveries had already been received but for which the corre-sponding invoices were still outstanding. Other provisions pri-marily relate to obligations towards employees of EUR 13.395 million (previous year: EUR 12.604 million).

(26) Non-current financial liabilitiesThis mostly entails non-current liabilities towards banks owed by the Italian subsidiary CGS S.p.A. in an amount of EUR 4.855 million (previous year: EUR 2.342 million). The reduction in the overall item compared with the previous year is largely due to the deconsolidation of Aerotech Peissenberg GmbH & Co. KG. These liabilities are due for settlement in more than twelve months after the reporting date. The average interest rate on these liabilities stands at 1.2%.

(27) Non-current prepayments receivedThis entails prepayments made by customers for contracts under construction which are due for completion in more than twelve months. They are measured at their nominal amounts.

(28) Current financial liabilitiesThis entails current liabilities towards banks held by OHB AG (EUR 33.000 million), OHB System AG (EUR 77.181 million), MT

Carrying amounts of financial instruments by type in 2014

Financial assets

0

0

23,539

0

Trade

receivables

0

330,328

0

0

Other receivables and assets

0

29,372

0

0

Securities and cash and cash

equivalents

0

50,478

0

2,846

Total

0

410,178

23,539

2,846

in EUR 000s

Held-to-maturity assets (HtM)

Loans and receivables (LaR)

Available-for-sale assets (AfS)

Trading assets (FAHfT)

in EUR 000s

Financial liabilities measured at amortised cost (FLAC)

Trading liabilities (FLHfT)

Financial liabilities

118,796

0

Trade

payables

83,967

0

Advance pay-ments received

on orders

130,027

0

Other

liabilities

16,613

0

Total

349,403

0

Carrying amounts of financial instruments by type in 2013

Financial assets

0

0

22,591

0

Trade

receivables

0

269,355

0

0

Other receivables and assets

0

20,279

0

0

Securities and cash and cash

equivalents

0

56,081

0

2,830

Total

0

345,715

22,591

2,830

in EUR 000s

Held-to-maturity assets (HtM)

Loans and receivables (LaR)

Available-for-sale assets (AfS)

Trading assets (FAHfT)

in EUR 000s

Financial liabilities measured at amortised cost (FLAC)

Trading liabilities (FLHfT)

Financial liabilities

80,863

0

Trade

payables

80,950

0

Advance pay-ments received

on orders

122,161

0

Other

liabilities

21,291

0

Total

305,265

0

85

OHB AG | 2014


loansettlementperiods

inEUR000s

Non-currentfinancialobligations

Non-currentprepaymentsreceived

Currentfinancialliabilities

Tradepayables

Currentprepaymentsreceivedonorders

Taxliabilities

Othercurrentliabilities

Total

Lessthanoneyear

157

0

113,784

75,432

127,272

3,909

11,451

332,005

Onetotwoyears

3,975

394

0

0

3,856

0

0

8,225

Threetofiveyears

880

0

0

0

0

0

0

880

Morethanfiveyears

0

0

0

0

0

0

0

0

Total

5,012

394

113,784

75,432

131,128

3,909

11,451

341,110

liquidityrisks

Netgains/lossesbycategoryin2014

inEUR000s

Financialassetsatfairvaluethroughprofitandloss FAFVPL

ofwhichfinancialinstrumentsdesignatedusingthefairvalueoption

ofwhichheldfortrading

Held-to-maturityfinancialassets HtM

Loansandreceivables LaR

Available-for-salefinancialassets AfS

Financialliabilitiesatfairvaluethroughprofitandloss FLFVPL



Financialliabilitiesatamortizedcost FLAC

Historicalcost

2,920

0

2,920

0

410,178

18,813

0

0

0

349,403

Fairvalue

2,846

0

2,846

0

410,178

23,539

0

0

0

349,403

Netfair-valuegains/lossesrecognizedin

equity

0

0

0

0

0

1,760

0

0

0

0

Netprofit/lossfortheperiod

28

0

28

0

35

0

0

0

0

0

Netgains/lossesbycategoryin2013

inEUR000s

Financialassetsatfairvaluethroughprofitandloss FAFVPL



Held-to-maturityfinancialassets HtM

Loansandreceivables LaR

Available-for-salefinancialassets AfS

Financialliabilitiesatfairvaluethroughprofitandloss FLFVPL



Financialliabilitiesatamortizedcost FLAC

Historicalcost

2,920

0

2,920

0

345,715

18,813

0

0

0

305,265

Fairvalue

2,818

0

2,830

0

345,715

22,591

0

0

0

305,265

Netfair-valuegains/lossesrecognizedin

equity

0

0

0

0

0

3,625

0

0

0

0

Netprofit/lossfortheperiod

123

0

123

0

80

0

0

0

0

0

86

OHB AG | 2014


prisessolelysuchassets.Currentfinancialliabilitieschieflycompriseamountsdrawnonacreditfacility,utilizationofwhichissubjecttocompliancewithtwofinancialcovenantsattheleveloftheOHBGroup.Thehistoricalcostofloansandreceiva-blesmostlyequalstheirfairvalue(nominalamountlessanyimpairment).Thefairvalueoffinancialliabilitiesatamortizedcostisderivedfromtheirdiscountedsettlementamounts.Oth-erwise,fairvaluesaredeterminedbyreferencetolistedprices.

measurementhierarchyforfinancialassetsatfairvaluethroughprofitandlosslevel1:Financialinstrumentstradedinactivemarkets,thelistedpricesofwhichareappliedformeasurementpurposes.level2:Financialinstrumentsaremeasuredusingmethodswithparameterswhicharederiveddirectlyorindirectlyfromobservablemarketdata.level3:Financialinstrumentsaremeasuredusingmethodswithparameterswhicharenotbasedsolelyonobservablemarketdata.

Ofthefinancialassetsatfairvaluethroughprofitandloss,anamountofEUR2.846million(previousyear:EUR2.818mil-lion)referstocurrentsecuritiesthefairvaluesofwhicharecalculatedinaccordancewithLevel1.Thefairvaluesoftheavailable-for-salefinancialassetsofEUR12.008million(previ-ousyear:EUR10.248million)arecalculatedinaccordancewithLevel1.TheotherfairvaluesofEUR11.531million(previousyear:EUR12.343million)werecalculatedusingLevel3.

AerospaceAG(EUR9.968million)andtheItaliansubsidiaryCGSS.p.A.(EUR2.588million).Therewerenoliabilitiesunderoper-atingleasesasofthereportingdate.

(29)TradepayablesLiabilitiesarereportedattheirsettlementamount.Allliabili-tiesaredueforsettlementwithinoneyear.

(30)CurrentprepaymentsreceivedThisitemcomprisesprepaymentsmadebycustomersforcon-tractsunderconstructiondueforcompletioninlessthantwelvemonths.

(31)OthercurrentliabilitiesTheseprimarilyentailpersonnel-relatedobligations.

additionaldisclosuresonfinancialinstrumentsOriginatedfinancialassetsprimarilycompriseotherfinancialassets,receivables,securitiesavailableforsaleandheldtomaturityandcashandcashequivalents.Theavailable-for-saleandheld-for-tradingfinancialassetsarereportedattheirfairvalueandtheotherfinancialassetsatamortizedcost.Origi-natedfinancialliabilitiesprimarilycompriseliabilitiesmeas-uredatamortizedcost.Holdingsoforiginatedfinancialinstru-mentsarereportedonthefaceofthebalancesheetandmeas-uredattheirmaximumdefaultrisk.Adjustmentsaremadeforalldiscerniblerisksofdefaultinfinancialassets.Financialinstrumentsforwhichmarketpricesareavailableareclassi-fiedasavailable-for-salefinancialassets;thiscategorycom-

segmentreporting

inEUR000s

Sales

ofwhichinternalsales

Totalrevenues

Costofmaterialsandservicespurchased

EBITda

Depreciationandamortization

EBIT

Non-currentassets

Currentassets

Totalassets

Equity

Liabilities

Totalequityandliabilities

Investmentsnetoffinancialassets

2014

545,286

2,744

563,972

402,296

21,030

6,985

14,046

68,755

350,346

419,101

82,400

336,701

419,101

20,728

2014

193,993

8,387

213,537

102,578

25,493

6,052

19,441

48,345

186,700

235,045

22,999

212,046

235,045

4,271

spacesystems aerospace+Industrialproducts

2013

466,927

338

484,465

322,385

36,396

7,398

28,998

55,326

285,198

340,524

68,871

271,653

340,524

12,978

2013

220,316

6,697

223,079

106,214

16,322

9,069

7,253

71,643

195,236

266,879

25,211

241,668

266,879

9,602

87

OHB AG | 2014


CreditrisksCreditrisksaregenerallylow,theportfolioofreceivablesisbroadlydiversified(noriskclustering)andbusinessistrans-actedonlywithinvestment-gradecounterparties.Inaddition,however,generalcreditrisksmayalwaysoccurasaresultofspecificeconomicconditions.TheGroupasawholedoesnottakeoutanycreditinsuranceforreceivablesasalargepartofitscustomerbaseismadeupofpublic-sectoragencies.

CurrencyriskTheUSD/EURexchangerateinfluencesincomeinaviationbusi-ness.Morethan80%ofordersandreceivablesdenominatedinUSdollarswerehedgedbymeansofcurrencyforwardsfor2014.

InterestrisksGenerallyspeaking,investmentswithlowinterestratesarepreferredsoastoavertinterestrisksandaresubjecttonormalmarketfluctuation.Short-termloansareraisedtocoverre-quirementsofcurrentassetsarisingfromprojectpaymentcycles.Forthispurpose,fundsunderaloanfacilityagreementwithamarket-basedfloatinginterestratecomponentareused.

A1%changeintheinterestrateonsuchdrawingswouldresultinadditionalexpenseofaroundEUR1.300million.

IX.OThERINfORmaTION

segmentreportingIFRS8stipulatesthatoperatingsegmentsaretobedefinedonthebasisofinternalsegmentreportingwhichisregularlyreviewedbytheCompany’schiefoperatingdecisionmakerwithrespecttotheallocationofresourcestothesesegmentsandtheassessmentoftheirprofitability.ThemainmanagementindicatorsusedwithintheOHBGrouparetotalrevenues,EBITandEBITDA.InformationreportedtotheManagementBoardasthechiefoperatingdecisionmakerforthepurposesofallo-catingresourcestotheCompany’ssegmentsaswellastheassessmentoftheirprofitabilitymostlycoversthetypesofgoodsandserviceswhichareproducedorprovided.

TheGroupcomprisesthefollowingreportablesegmentsasdefinedinIFRS8:•SpaceSystems•Aerospace+IndustrialProducts

The“SpaceSystems”segmentchieflydevelopsandexe-cutesspaceprojects.The“Aerospace+IndustrialProducts”segmentisprimarilyresponsibleforfabricatingaviationandspaceproductsaswellasotherindustrialactivities.

ThesegmentsaredescribedindetailintheGroupmanage-mentreportSegmentincome,expensesandearningsalsoentailbusinessrelationsbetweenthebusinessunits.Thesetransferswerenettedinfull.Themeasurementprinciplesappliedinsegmentreportingareidenticaltothoseappliedinthepreparationoftheconsolidatedfinancialstatements.The

segmentreporting

Reconciliation

2014

0

0

13,847

0

6,893

30

6,862

53,513

51,997

105,510

67,925

37,585

105,510

9

holdingcompany

2013

0

0

5,185

0

85

34

51

52,505

59,385

111,890

64,215

47,674

111,890

7

2014

–11,131

–11,131

–18,403

–7,609

0

–51

51

–36,839

–82,204

–119,043

–26,125

–92,918

–119,043

0

Consolidation

2013

–7,122

–7,035

–12,666

–5,970

0

–51

51

–36,057

–97,829

–133,886

–25,593

–108,293

–133,886

0

2014

728,147

0

772,954

497,265

53,416

13,016

40,400

133,774

506,839

640,613

147,199

493,414

640,613

25,008

Total

2013

680,121

0

700,063

422,629

52,803

16,450

36,353

143,417

441,990

585,407

132,705

452,702

585,407

22,587

88

OHB AG | 2014


productionandaquisitioncosts

productionandaquisitioncosts

FortheyearfromJanuary1untilDecember31,2014

I. Goodwill

II. Intangibleassets

Concessionsandindustrialpropertyrights

Softwareacquired

Softwareproduced

III.Property,plantandequipment

Operatingandbusinessequipment

Propertyandplant

IV.Financialassets

Investmentsinaffiliatedcompanies

Investmentsinassociatedcompanies

Otherinvestments

Total

BalanceonJanuary1,

2014

EUR000s

8,957

2,055

14,259

75,854

105,382

58,557

63

683

41,087

306,897

Revaluations

EUR000s

0

0

0

0

0

0

0

0

1,760

1,760

Disposals

deconsolidation

EUR000s

0

0

–3,181

–2,931

–14,492

–12,017

0

0

–105

–32,726

Additions

EUR000s

0

2

1,212

13,944

9,782

68

26

0

14

25,048

Disposals

EUR000s

0

0

338

12

2,724

5

0

683

747

4,509

Reclassi-fications

EUR000s

0

0

15

0

–15

0

0

0

0

0


2014

EUR000s

8,957

2,057

11,967

86,855

97,933

46,603

89

0

42,009

296,470

Consolidatedstatementofchangesinassets

FortheyearfromJanuary1untilDecember31,2013

I. Goodwill

II. Intangibleassets

Concessionsandindustrialpropertyrights

Softwareacquired

Softwareproduced

III.Property,plantandequipment

Operatingandbusinessequipment

Propertyandplant

IV.Financialassets

Investmentsinaffiliatedcompanies

Investmentsinassociatedcompanies

Otherinvestments

Total

BalanceonJanuary1,

2013

EUR000s

8,957

2,044

13,133

64,396

97,457

58,478

63

1,259

36,462

282,249

Revaluations

EUR000s

0

0

0

0

0

0

0

0

3,625

3,625

Additionsfromfirst-time

consolidation

EUR000s

0

0

0

0

0

0

0

0

0

0

Disposals

EUR000s

0

5

1,242

11,458

9,798

83

0

0

1,046

23,632

Reclassi-fications

EUR000s

0

0

110

0

1,873

4

0

576

46

2,609

Umbuchungen

EUR000s

0

6

–6

0

0

0

0

0

0

0


2013

EUR000s

8,957

2,055

14,259

75,854

105,382

58,557

63

683

41,087

306,897

89

OHB AG | 2014


Bookvaluesaccumulateddepreciation

Bookvaluesaccumulateddepreciation

BalanceonJanuary1,

2014

EUR000s

1,270

1,968

10,802

37,224

70,259

23,398

0

0

18,559

163,480


2014

EUR000s

7,687

68

2,017

46,193

31,102

23,168

89

0

23,450

133,774

Disposals

deconsolidation

EUR000s

0

0

–1,494

–993

–7,180

–1,306

0

0

0

–10,973

Additions

EUR000s

0

21

980

4,443

6,225

1,348

0

0

0

13,017

Disposals

EUR000s

0

0

338

12

2,473

5

0

0

0

2,828


2014

EUR000s

1,270

1,989

9,950

40,662

66,831

23,435

0

0

18,559

162,696


2013

EUR000s

7,687

87

3,457

38,630

35,123

35,159

63

683

22,528

143,417

Consolidatedstatementofchangesinassets

BalanceonJanuary1,

2013

EUR000s

1,270

1,947

9,742

31,560

63,925

21,234

0

0

18,559

148,237


2013

EUR000s

7,687

87

3,457

38,630

35,123

35,159

63

683

22,528

143,417

Additionsfromfirst-time

consolidation

EUR000s

0

0

0

0

0

0

0

0

0

0

Additions

EUR000s

0

21

1,169

5,664

7,428

2,168

0

0

0

16,450

Disposals

EUR000s

0

0

109

0

1,094

4

0

0

0

1,207


2013

EUR000s

1,270

1,968

10,802

37,224

70,259

23,398

0

0

18,559

163,480


2012

EUR000s

7,687

97

3,391

32,836

33,532

37,244

63

1,259

17,903

134,012

90

OHB AG | 2014


holdingcompanyisshownseparatelyasmostoftheequityinterestsareheldonthislevel.OHBAGexercisesthefunctionofanactiveholdingcompany.

Sales(non-consolidated)breakdownbyproductgroupasfollows:

inEUR000s 2014 2013

Spacetechnology 732,066 619,729

Aviation 56,129 82,374

Antennas 9,329 21,467

Telematics 7,217 5,033

Processcontroltechnology 5,155 4,186

Total 809,896 732,789

OHBAG’snon-consolidatedsalesbreakdownbyregion(loca-tionofcustomer)asfollows:

inEUR000s 2014 2013

Germany 267,990 202,132

RestofEurope 510,501 520,673

Restoftheworld 31,405 9,984

Total 809,896 732,789

WithsalesofEUR109.037million,EUR143.399millionandEUR96.675million,respectively,threecustomersinthe“SpaceSys-tems”segmenteachaccountformorethan10%oftheOHBGroup’stotalsales.Non-currentassetswithacarryingamountofEUR116million(previousyear:EUR130million)arelocatedinGermanyandthosewithacarryingamountofEUR37million(previousyear:EUR28million)arelocatedinothercountries.

NotesonthecashflowstatementLiquiditycomprisescashandcashequivalents.ThenetoutflowfromthelossofcontrolreferstothedeconsolidationofthecashandcashequivalentsheldbyATPinthe“Aerospace+IndustrialProducts”businessunit.Therewerenoothereffectsoncash.Deconsolidationresultedinanon-cashinflowofEUR3.804million.

OtherfinancialobligationsFinancialobligationsunderleasesarevaluedatEUR91.856million(previousyear:EUR51.678million);ofthis,anamountofEUR12.589million(previousyear:EUR11.409million)isdueforsettlementinlessthanoneyear,anamountofEUR37.662million(previousyear:EUR27.718million)inonetofiveyearsandanamountofEUR41.605million(previousyear:EUR12.551million)inmorethanfiveyears.Operatingleasesentailfinan-cialobligationsofEUR1.471million(previousyear:EUR1.696million)dueforsettlementinonetofiveyears;anamountofEUR0.659million(previousyear:EUR0.714million)isduefor

settlementinlessthanoneyear,anamountofEUR0.801mil-lion(previousyear:EUR0.936million)isdueforsettlementinonetofiveyearsandanamountofEUR0.011million(previousyear:EUR0.046million)inmorethanfiveyears.Themainoper-atingleasesareforbuildingsandhaveatermofonetofiveyears.Therearenopurchaseoptions.FollowingthetransferofbusinessactivitiesheldbyaGroupcompanytoasubsidiary,thereareotherfinancialobligationsofEUR1.305million(previ-ousyear:EUR3.577million)dueforsettlementinlessthanoneyearintheformoflettersofcomfort.Therearenootherobliga-tionsnecessitatinganoutflowofresources.Asofthereportingdate,therewereobligationsunderguaranteesofEUR36.332million(previousyear:EUR63.301million).Theparticipatingcompanieshaveassumedjointandseveralliabilityforobliga-tionsunderthecreditfacility.OHBAGhasissuedaletterofcomfortinfavorofacustomerforthecompletionoftwopro-jects/contractsbyGroupmembersand,inonecase,aguaran-teeinfavorofthecustomer.

EmployeesTheaverageheadcountstoodat2,174intheyearunderreview(previousyear:2,437).AsofDecember31,2014,therewere1,349employeesinthe“SpaceSystems”businessunit(previ-ousyear:1,219),730employeesinthe“Aerospace+IndustrialProducts”businessunit(previousyear:1,185)and7employeesintheholdingcompany(previousyear:8).

X.maNaGEmENTBOaRdaNdsUpERvIsORyBOaRd

TheCompany’sManagementBoardcomprises:• Mr.MarcoFuchs,Lilienthal,CEO• Dr.FritzMerkle,Bremen(sinceJune1,2014)• Mr.UlrichSchulz,Bremen• Prof.ManfredFuchs,Bremen

(passedawayonApril26,2014).

TheCompany’sSupervisoryBoardcomprises:• Mrs.ChristaFuchs,Bremen,managingshareholderof

VOLPAIABeteiligungs-GmbH,Bremen,chairwoman• Prof.HeinzStoewer,St.Augustin,Professorem.SpaceSys-

temsEngineering,TechnicalUniversityofDelft,Netherlands,managingdirectorofSpaceAssociatesGmbH,St.Augustin

• Mr.RobertWethmar,Hamburg,partneratlawfirmTaylorWessing

OfficesheldbymembersoftheCompany’sManagementBoardandSupervisoryBoardinothersupervisoryboardsandman-agementbodiesin2014:• Mr.MarcoR.Fuchs,ZARMTechnikAG,Bremen,chairmanof

thesupervisoryboard;MTAerospaceAG,Augsburg,chair-manofthesupervisoryboard(Groupmandate);ORBCOMM

91

OHB AG | 2014


Inc.RochelleParl,NJ,UnitedStates,memberoftheboardofdirectors(Groupmandate);CGSS.p.A.,Milan,Italy,JacobsUniversityBremengGmbH,memberofthesupervisoryboard

• Prof.Dott.Ing.h.c.ManfredFuchs,(passedawayonApril26,2014),OHBSystemAG,Bremen,chairmanofthesupervisoryboard(Groupmandate);MTAerospaceAG,Augsburg,memberofthesupervisoryboard(Groupmandate);CGSS.p.A.,Milan,Italy,chairmanoftheboardofdirectors(Groupmandate)

• Mrs.ChristaFuchs,ORBCOMMDeutschlandAG,Bremen,chairwomanofthesupervisoryboard(Groupmandate);CosmosSpaceSystemsAG,Bremen,chairwomanofthesupervisoryboard(Groupmandate);OHBSystemAG,Bremen,chairwomanofthesupervisoryboard,fromJune17,2014.

securitiesheldbymembersoftheCompany’smanagementBoardandsupervisoryBoard

asofdecember31,2014 shares +/–2014/13

ChristaFuchs,ChairwomanoftheSupervisoryBoard 1.400.690 –

ProfessorHeinzStoewer,Memberofthesupervisoryboard 1.000 –

MarcoR.Fuchs,ChiefExecutiveOfficer 3.184.796* –

Dr.FritzMerkle,memberoftheManagementBoard 1.000 –

UlrichSchulz,memberoftheManagementBoard 54 –

*plusthe2,863,064sharespreviouslyheldbyProf.ManfredFuchs,therightsfromwhichpassedtoMarcoR.Fuchsasofthereportingdate.

ExemptionfromthedutytodisclosethefinancialstatementsoftheGroupcompaniesAttheirmeetingofMarch18,2014,theshareholdersofOHB-SystemAGpassedaresolutiontoadopttheexemptionprovi-sionsinSection264(3)oftheGermanCommercialCodewithrespecttodisclosureoftheannualfinancialstatements.

RelatedpartiesdisclosuresRelatedpartiesasdefinedinIAS24compriseChristaFuchs,RomanaFuchsMayrhofer,Prof.Dott.Ing.h.c.ManfredFuchs,MarcoR.Fuchs,UlrichSchulz,Prof.HeinzStoewerandRobertWethmar.Thefollowingcompaniesarerelatedparties:• OHBGrundstücksgesellschaftAchterstraßeGmbH&Co.KG,

Bremen• OHBGrundstücksgesellschaft,KitzbühlerStraßeGmbH&

Co.KG,Bremen• OHBGrundstücksgesellschaft,UniversitätsalleeGmbH&Co.

KG,Bremen• OHBGrundstücksgesellschaft,Karl-Ferdinand-Braun-

StraßeGmbH&Co.KG,Bremen• VOLPAIABeteiligungs-GmbH,Bremen

• ApolloCapitalPartnersGmbH,Munich• ImmobiliareGallarateS.r.l.,Milan• KTGrundstücksverwaltungsGmbH&Co.KG,Munich• SchloßAnnabergGmbH,Latsch,Italy

Businesstransactionswithrelatedpartiesareconductedonarm’slengthterms.Intheyearunderreview,salesandotherincomeofEUR0million(previousyear:EUR0.002million)arosefromtransactionswithrelatedparties,whileexpenditureongoodsandservicespurchasedandrentalscametoaroundEUR4.673million(previousyear:EUR5.151million)atGroupcompanies.OutstandingreceivablesasofthereportingdatewerevaluedatEUR0million(previousyear:EUR0.152million).AsofDecember31,2014,therewereliabilitiesofEUR1.113mil-lion(previousyear:EUR0.007million).ReferenceshouldalsobemadetotheCompany’sexplanationsontherelatedpartiesreportincludedinthemanagementreportinaccordancewithSection312oftheGermanStockCorporationAct.

declarationofconformitywiththeCorporateGovernanceCodepursuanttoarticle161oftheJointstockCompaniesactTheManagementBoardandtheSupervisoryBoardhavepub-lishedthedeclarationrequiredpursuanttoSection161oftheGermanStockCorporationActconfirmingthat,apartfromafewsmallexceptions(seeCorporateGovernanceonpage64),theGroupalreadyconformstotheGermanCorporateGovern-anceCodeandwillcontinuetodosointhefuture.Thedeclara-tionofconformanceisavailableontheInternetat:http://www.ohb.de/investor-relations/corporate-governance/entsprechenserklaerung.html

allocationofearningsTheparent-companyfinancialstatementspreparedforOHBAGpursuanttoGermanGAAP(HGB)fortheyearendingDecember31,2014carrynetprofitfortheyearofEUR29,365,915.44.OHBAGexercisesthefunctionofanactiveholdingcompany.ItsmainassetscompriseinvestmentswhichwerecarriedatavalueofEUR44.514milliononthebalance-sheetdate.OHBAG’sequitystoodatEUR68.604milliononDecember31,2014.TheCompany’ssingle-entityfinancialstatementscarrycashandcashequivalentsofEUR3.799million.IncomeofEUR4.977millionunderprofittransferagreementsandfromtheshareofprofitofassociatesofEUR5.118millionmadeaparticularcon-tributiontonetprofitfor2014.TheManagementBoardwillbeaskingtheshareholderstopassaresolutionprovidingfortheallocationoftheCompany’sunappropriatedsurplusofEUR29,366for2014(asspecifiedinthetableentitled“Allocationofunappropriatedsurplus”).Thefiguresstatedforthetotaldivi-dendandtheamounttobecarriedforwardarebasedonthenumberofdividend-entitledsharesasofthedateoftheMan-agementBoard’sallocationproposal.

Dr.FritzMerkle

92

MarcoR.Fuchs

OHB AG | 2014


UlrichSchulz

PursuanttoSection71boftheGermanStockCorporationAct,theCompany’streasurystock(80,496shares)asofthereport-ingdateisnotdividend-entitled.IfthenumberofsharesheldastreasurystockonthedateonwhichtheshareholderspassaresolutionadoptingtheproposalfortheallocationoftheCom-pany’sunappropriatedsurplusisgreaterorsmallerthanonthereportingdate,theamountpayabletotheshareholderswillbeincreasedor,asthecasemaybe,decreasedbytheamountattributabletothedifferenceinthenumberofshares.Theamounttobecarriedforwardwillbeadjustedaccordingly.However,therewillbenochangeinthedistributabledividendperdividend-entitledshare.

Ifnecessary,theshareholderswillbepresentedwithacor-respondinglymodifiedproposalfortheallocationoftheCom-pany’sunappropriatedsurplus.Thedividenddistributedfor2013cametoEUR0.37perdividend-entitledshare(17,387,600shares),resultinginatotalpayoutofEUR6,433,412.00.Inaddi-tion,anamountofEUR15,970,928.46wascarriedforward.TheunappropriatedsurpluscametoEUR22,404,340.46in2013.

allocationofearnings

inEUR000s 2014

DividendofEUR0.37proposedforeachdividendentitledshare(17,387,600shares)

6,433,412,00

Amounttobecarriedforward 22,932,503,44

Unappropriatedsurplus 29,365,915,44

CompensationAsamatterofprinciple,thecompensationpaidtothemembersoftheManagementBoardcomprisesfixedandvariablecompo-nents.Thereiscurrentlynoprovisionforanyshare-basedcom-pensationcomponentsorcompensationcomponentswithalong-termincentive.IntheeventofthedeathofaManagementBoardmember,hissurvivingdependentsareentitledtoreceivecontinuedpaymentofthatmember’sfixedcompensationforafurtherperiodofsixmonths.

TheprinciplesofthecompensationsystemaswellastheindividualizedcompensationpaidtotheManagementBoardaredescribedindetailinthecompensationreport,whichformspartofthemanagementreport(page62).Thetotalcompensa-tionpaidtothemembersoftheManagementBoardfor2014cametoEUR1.840million(previousyear:EUR1.720million).Ofthis,variablecomponentsaccountforEUR1.041million,fixedcomponentsforEUR0.799million,contributionstoendowmentpoliciesforEUR3.3kandpaymentsunderapensioncommit-mentforEUR12k.

ThetotalcompensationpaidtomembersoftheSupervisoryBoardfor2014cametoEUR70k(previousyear:EUR70k).Ofthis,thechairwomanoftheSupervisoryBoardreceivedEUR30kandtheothertwomembersoftheSupervisoryBoarda

totalofEUR40k.Variablecompensationcomponentsweredis-pensedwith.Mrs.ChristaFuchsreceivedarms-lengthcom-pensationofEUR0.064million(previousyear:EUR0.128mil-lion)foradvisoryservicesrenderedforOHBGroupcompaniesintheyearunderreview.

auditfeesIntheperiodunderreview,theOHBGrouprecordedthefollow-ingfeespaidtoBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,theauditorsofitsfinancialstatements:• Auditingofannualandconsolidatedfinancialstatements:EUR0.226million(previousyear:EUR0.235million)• Taxconsultingservices:EUR0.056million(previousyear:

EUR0.136million)• Otherservices:EUR0.019million(previousyear:EUR0.011

million)

EventsafterthereportingdateTherewerenosignificantreportableeventbetweenthereport-ingdateandthedateonwhichtheannualreportfor2014wasprepared.

TheconsolidatedfinancialstatementswereapprovedbytheManagementBoardforpublicationfollowingtheSupervisoryBoard’smeetingofMarch18,2015.

TheManagementBoardBremen,March16,2015

93

OHB AG | 2014


XI.aUdITOR’sCERTIfICaTE

Wehaveauditedtheconsolidatedfinancialstatementspre-paredbytheOHBAG,Bremen,comprisingthestatementoffinancialposition,thestatementofcomprehensiveincome,thestatementofchangesinequity,thestatementofcashflowsandthenotestotheconsolidatedfinancialstatements,togetherwiththegroupmanagementreportforthefinancialyearfromJanuary1,2014toDecember31,2014.ThepreparationoftheconsolidatedfinancialstatementsandthegroupmanagementreportinaccordancewithIFRSsasadoptedbytheEU,andtheadditionalrequirementsofGermancommerciallawpursuantto§315a(1)oftheHGBaretheresponsibilityofthelegalrepre-sentativesoftheparentcompany.Ourresponsibilityistoexpressanopinionontheconsolidatedfinancialstatementsandonthegroupmanagementreportbasedonouraudit.

Weconductedourauditoftheconsolidatedfinancialstate-mentsinaccordancewith§317oftheHGBandtheGermangenerallyacceptedstandardsfortheauditoffinancialstate-mentspromulgatedbytheInstitutderWirtschaftsprüfer[InstituteofPublicAuditorsinGermany](IDW).Thosestandardsrequirethatweplanandperformtheauditsuchthatmisstate-mentsmateriallyaffectingthepresentationofthenetassets,financialpositionandresultsofoperationsintheconsolidatedfinancialstatementsinaccordancewiththeapplicablefinancialreportingframeworkandinthegroupmanagementreportaredetectedwithreasonableassurance.Knowledgeofthebusi-nessactivitiesandtheeconomicandlegalenvironmentofthegroupandexpectationsastopossiblemisstatementsaretakenintoaccountinthedeterminationofauditprocedures.Theeffectivenessoftheaccounting-relatedinternalcontrolsystemandtheevidencesupportingthedisclosuresintheconsolidatedfinancialstatementsandthegroupmanagementreportareexaminedprimarilyonatestbasiswithintheframeworkoftheaudit.Theauditincludesassessingthefinancialinformationofthosecomponentsconsolidated,thescopeoftheconsolidation,

theaccountingandconsolidationprinciplesusedandthesignif-icantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatementsandthegroupmanagementreport.Webelievethatourauditprovidesareasonablebasisforouropinion.

Ouraudithasnotledtoanyreservations.

Inouropinion,basedonthefindingsofouraudit,theconsoli-datedfinancialstatementscomplywithIFRSsasadoptedbytheEU,theadditionalrequirementsofGermancommerciallawpursuantto§315a(1)oftheHGBandgiveatrueandfairviewofthenetassets,financialpositionandresultsofoperationsofthegroupinaccordancewiththeserequirements.Thegroupmanagementreportisconsistentwiththeconsolidatedfinan-cialstatementsandasawholeprovidesasuitableviewofthegroup’spositionandsuitablypresentstheopportunitiesandrisksoffuturedevelopment.

Hamburg,March16,2015BDOAGWirtschaftsprüfungsgesellschaft

declarationofthemanagementBoardTothebestofourknowledge,andinaccordancewiththeapplicablereportingprinciples,theconsolidatedfinancialstatementsgiveatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossofthegroup,andtheGroupmanagementreportincludesafairreviewofthedevelopmentandperformanceofthebusinessandthepositionofthegroup,

togetherwithadescriptionoftheprincipalopportunitiesandrisksassociatedwiththeexpecteddevelopmentoftheGroup.

TheManagementBoardBremen,March16,2015

94

OHB AG | 2014

Contact information

OhBaGKarl-Ferdinand-Braun-Straße828359Bremen,Germany

MarcoR.FuchsChiefExecutiveOfficer

MartinaLilienthalInvestorRelationsPhone:+49(0)4212020-720Fax:+49(0)4212020-613ir ohb.de

MartinStadeCorporateCommunicationsPhone:+49(0)4212020-620Fax:+49(0)4212020-613pr ohb.de

Imprint

Copyandcontent:OHBAG,Bremen,GermanyPvFInvestorRelations,Eschborn,GermanymoskitoKommunikationundDesign,Bremen,Germany

Conceptanddesign:moskitoKommunikationundDesign,Bremen,Germany

photos:Arianespace,Evry,FranceAstriumGmbH,Bremen,GermanyBAAINBw,Koblenz,GermanyCarl-ChristianMeyer,Bremen,GermanyCarstenHeidmannFotografie,Bremen,GermanyCGSS.p.A.,Mailand,ItalyCNES,Paris,FranceCouncilofEuropeanAerospaceSocietiesESA,CNES,ARIANESPACE,OptiqueVideoduCSG(JMGuillon)ESA,Paris,France(AOESMedialab,J.Huart,AnnekeLeFloc‘h,OptiqueVid.oduCSG)ESO,Garching/Munich(IgorChekalin,M.KornmesserundNickRisinger)IngoWagneriStockphotoLuxSpaceSarl,Betzdorf,LuxembourgMTAerospace,Augsburg,GermanyMTMechatronicGmbH,Mainz,GermanyNASA,Washington,USANASA/JPL(Caltech/Cornell/ArizonaStateUniv.),USAOHBAG,Bremen,GermanyOHBSweden,Kista,SwedenOHBSystemAG,Bremen,GermanySNC,Sparks,NV,USA

Editing:ZertaniDieDruckGmbH,Bremen,Germany

printedby:BerlinDruck,AchimbeiBremen,Germany

Further disclosures

www.ohb.de

96

OHB AG | 2014


�


Revenues

Total revenues

EBITDA

EBIT

EBT



Total assets

Equity


Equity investments



2013

680,121

700,063

52,803

36,353

29,728

19,436

1.12

585,407

132,705

–34,111

23,632

1,046

2,412

2012

615,982

632,729

46,110

30,997

23,979

14,818

0.85

538,757

117,332

17,559

21,571

760

2,493

2011

555,689

555,292

43,101

27,276

19,517

13,523

0.78

528,239

113,577

21,137

15,533

156

2,352

2010

425,448

453,323

33,688

22,730

15,384

9,642

0.55

466,396

105,170

42,123

19,126

6,543

1,677

Closing price

Year high

Year low


Number of shares

2013

17.55

18.63

14.76

307 million

17,468,096

2014

19.70

25.06

17.45

344 million

17,468,096

2012

15.15

16.50

11.16

265 million

17,468,096

2011

11.40

17.45

8.25

199 million

17,468,096

2010

16.60

18.34

11.50

290 million

17,468,096

The Stock in EUR


OHB AG in Figures

Glossary









2014

728,147

772,954

53,416

40,400

33,874

25,713

1.48

640,613

147,199

–35,020

25,048

40

2,086

OH

B A

G •

Ann

ual R

epor

t 201

4OHB AG



Phone: +49 (0)421 2020-8

Fax: +49 (0)421 2020-613

[email protected]

www.ohb.de

Annual Report 2014

The OHB Group at a glance

OHB AG is a European space flight and technology group and one of the most important independent forces in Euro-pean aviation/aerospace. With more than 30 years of experience in developing and executing innovative space technology systems and structures and its range of specific aviation/aerospace and telematics products, the OHB Group is superbly positioned to face international competition.

“Form follows function” - this is the principle under which OHB AG has been successfully positioning itself in Europe over the past few years. These strategic decisions on loca-tions and the deliberate separation of functions across Europe allow the Group to participate in numerous Euro-pean programs and missions. The two “Space Systems” and “Aerospace + Industrial Products” business units reflect the convergence of these activities and the focus on specific core skills.

The “Space Systems” business unit focuses on developing and executing space projects. In particular, it is responsible for developing and fabricating low-orbiting and geostation-ary small satellites for navigation, research, communica-

tions and earth observation including scientific payloads. Its manned space flight activities chiefly entail the assembly and fitting of the International Space Station ISS, Columbus and ATV. The exploration segment works on studies and models for exploring our solar system, primarily the moon and Mars. In addition, efficient reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance.

The “Aerospace + Industrial Products” business unit is primarily responsible for fabricating aviation and space products as well as other industrial activities. In this area, OHB has established itself as a significant supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German supplier of components for the Ariane-5 program. In addition, it is an experienced vendor of mechatronic systems for antennas and telescopes and is involved in major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities.

OHB System AG, Bremen & Munich, Germany

Space Systems Aerospace + Industrial Products

MT Aerospace AG,Augsburg, Germany

megatel GmbH, Bremen, Germany

OHB Sweden AB, Stockholm, Sweden

OHB Teledata GmbH, Bremen, Germany

Antwerp Space N.V., Antwerp, Belgium

MT Aerospace Guyane S.A.S., Kourou, French Guiana

LuxSpace Sàrl, Betzdorf, Luxembourg

MT Mechatronics GmbH, Mainz, Germany

CGS S.p.A., Milan, Italy

74.9 %

MT M

echatronics Gm

bH

OHB Group in Europe

OHB System

AG München

CGS S.p.A

.

OHB S

wed

en A

B

OH

B S

yste

m A

G B

rem

en

MT

Aero

spac

e Gu

yane

S.A.

S., K

ouro

u

MT Mecatronica Limita

da,

Santiago de Chile

LuxSpace Sàrl

Antwerp Space N.V.

MT

Aer

ospa

ce A

G

Glossary

AQAP Allied Quality Assurance Publications; series of standards developed by NATA from the military standard for quality assurance systems

ARTES-7 Long-term ESA plan for developing a European communications satellite network using the latest laser communications

ASI Agenzia Spaziale Italiana; Italian space agency

ATV Automated Transfer Vehicle; unmanned space transporter for supply flights to the ISS

BAAINBw Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (formerly BWB German Federal Office of Defense Technology and Procurement)

BDLI German Federal Aviation and Space Industry Association

BIOMASS Earth observation programme of the European Space Agency

Blue Dot Name of the 6-month mission launched in May 2014 by ESA astronaut Alexander Gerst being on board the International Space Station ISS

BMVg German Federal Ministry of Defense

BMWi German Federal Ministry of Economics and Technology

CFRP Carbon fiber-reinforced plastic

COLUMBUS Name of the European module of the International Space Station

CPS Chemical Propulsion System

DAX German bluechip share index, tracking the performance of the 30 largest shares listed on the Frankfurt stock exchange

DEKRA Testing body for determining the roadworthiness of vehicles, certification services, safety checks and examination of technical equipment

Design-to-cost Designing and Engineering in terms of costs considering the given circumstances

DLR Deutsches Zentrum für Luft- und Raumfahrt; German Space Agency

Dream Chaser® The Dream Chaser Space System mission is to provide NASA with a transportation service for crew and cargo to the International Space Station

EBIT Earnings before interest and taxes

EBITDA Earnings before interest, taxes, depreciation and amortization

EBT Earnings before taxes

EDRS-C Dedicated satellite for the European Data Relay Satellite System for implementing a data network in space using optical satellite communications

Electra Fully electrically driven satellite based on the SmallGEO platform

EnMAP Environmental Mapping and Analysis Programme; satellite for hyperspectral terrestrial observation

EOEP ESA Earth Observation Envelope Programme

EPS Earnings per share

ESA European Space Agency

EU European Union

EUMETSAT European Organisation for the Exploration of Meteorological Satellites;

European Southern Observatory Intergovernmental research organisation for astronomy that has built and operated some of the largest and most technologically-advanced telescopes in the world

ExoMars Scientific mission of the European Space Agency and ROSCOSMOS to explore the Mars

FOC Full operational capability; final satellite configuration for the operation of a system

Galileo The Full Operational Capability phase of the Galileo programme is managed and fully funded by the European Union. The Commission and ESA have signed a delegation agreement by which ESA acts as design and procurement agent on behalf of the Commission. The views expressed in this Press Release can in no way be taken to reflect the official opinion of the European Union and/or ESA.“Galileo“ is a trademark subject to OHIM application number 002742237 by EU and ESA.

Heinrich Hertz Satellite mission based on the SmallGEO platform to explore new communications technologies in space

Hispasat AG1 Hispasat Advanced Generation 1

HGB German Commercial Code

IAC International Astronautical Congress; yearly space symposium that takes place in different event locations

IAS International Accounting Standards

IFRS International Financial Reporting Standards

ISS International Space Station

MTG Meteosat Third Generation; programme to develop, build and launch third-generation weather satellites

NADCAP National Aerospace and Defense Contractors Accreditation Programme; certification of special aviation,space and defense processes

NASA National Aeronautics and Space Administration; US space agency

OPSIS OPtical System for Imaging and Surveillance, satellite mission operated by the Italian space agency ASI

Philae Lander in the Rosetta comet mission with 10 instruments on board to examine material collected from the comet 67P/Tschurjumow-Gerasimenko

R+D Research and development

REACH Registration, Evaluation, Authorization of Chemicals; EU chemicals regulation

RoHS Restriction of the use of certain hazardous sub-stances; EU directive to limit the use of certain dangerous materials in electrical and electronic devices

ROSCOSMOS Space Agency of Russia

SAR-Lupe Synthetic Aperture Radar-Lupe; system of small satellites with a process for enhancing the quality of radar images

SmallGEOs Small geostationary satellites for telecom-munications and multimedia applications

Rosetta Mission organized by the European Space Agency ESA to explore the origins of our solar system; the mission comprises an orbiter and the Philae lander.

TecDAX German stock index, that tracks the performance of the 30 largest German companies from the technology sector in terms of order book turnover and market capitalization

Telematics A system linking telecommunications and IT

TET Technology mule; core element of the national “On-Orbit Verification of New Techniques and Technologies” project

TRL Technology Readiness Level; is a measure used to assess the maturity of evolving technologies

USD US-Dollar

�


Revenues

Total revenues

EBITDA

EBIT

EBT



Total assets

Equity


Equity investments



2013

680,121

700,063

52,803

36,353

29,728

19,436

1.12

585,407

132,705

–34,111

23,632

1,046

2,412

2012

615,982

632,729

46,110

30,997

23,979

14,818

0.85

538,757

117,332

17,559

21,571

760

2,493

2011

555,689

555,292

43,101

27,276

19,517

13,523

0.78

528,239

113,577

21,137

15,533

156

2,352

2010

425,448

453,323

33,688

22,730

15,384

9,642

0.55

466,396

105,170

42,123

19,126

6,543

1,677

Closing price

Year high

Year low


Number of shares

2013

17.55

18.63

14.76

307 million

17,468,096

2014

19.70

25.06

17.45

344 million

17,468,096

2012

15.15

16.50

11.16

265 million

17,468,096

2011

11.40

17.45

8.25

199 million

17,468,096

2010

16.60

18.34

11.50

290 million

17,468,096

The Stock in EUR


OHB AG in Figures

Glossary









2014

728,147

772,954

53,416

40,400

33,874

25,713

1.48

640,613

147,199

–35,020

25,048

40

2,086

OH

B A

G •

Ann

ual R

epor

t 201

4OHB AG



Phone: +49 (0)421 2020-8

Fax: +49 (0)421 2020-613

[email protected]

www.ohb.de

Annual Report 2014

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