ANNUAL REPORT -...

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ANNUAL REPORT 2014

The Oetker Group

The Oetker GroupIn Profile

With around 28,400 employees and sales of just under EUR 11 billion, the Oetker Group is one of the major European family businesses. Broad diversifi cation in six business divisions characterizes the internationally active company, which can now look back on a history of more than 120 years.

consolidated companies398

years of corporate history

124

28,354employees

The

Num

bers

Sales of more than EUR

10.9 billion

The Oetker Group

The Oetker GroupIn Profile

With around 28,400 employees and sales of just under EUR 11 billion, the Oetker Group is one of the major European family businesses. Broad diversifi cation in six business divisions characterizes the internationally active company, which can now look back on a history of more than 120 years.

The Oetker GroupKey Indicators

2012 2013 2014 %*

NET SALES (IN EUR MILLION) 10,942 10,844 10,934 0.8

Food 2,501 2,577 2,622 1.7

Beer and Nonalcoholic Beverages 1,844 1,843 1,929 4.7

Sparkling Wine, Wine and Spirits 675 687 697 1.5

Shipping 5,468 5,254 5,186 –1.3

Other Interests 454 483 500 3.7

INVESTMENTS (IN EUR MILLION)

(excluding companies consolidated

for the fi rst time) 531 777 667 –14.2

Food 119 158 132 –16.6

Beer and Nonalcoholic Beverages 97 105 121 15.1


Shipping 247 450 348 –22.7

Other Interests 50 52 50 –2.3

EQUITY (IN EUR MILLION) 2,847 3,105 3,484 12.2

As a percentage of the balance sheet total 37 40 41

BALANCE SHEET TOTAL

(IN EUR MILLION) 7,695 7,770 8,499 9.4

EMPLOYEES 26,406 26,907 28,354 5.4

Food 11,752 12,272 12,790 4.2


Sparkling Wine, Wine and Spirits 2,040 2,028 2,007 –1.0

Shipping 4,512 4,491 5,360 19.3

Other Interests 2,377 2,427 2,440 0.5

* Percentage change 2013/2014. The percentages relate to the exact amounts rather than the rounded totals.

Key Indicators / Divisions

The Oetker Group

The Oetker GroupDivisions

Shipping

The Hamburg Süd Group connects all five continents with its logistics network. It operates container ships, bulk carriers and product tankers. It recently acquired the container line business of CCNI.

Sparkling Wine, Wine and Spirits

Henkell & Co. is not only Germany’s most exported sparkling wine brand, but is a leading provider of sparkling wine, wine and spirits in Europe. The Group is represented in 20 na-tions and exports to more than 100 countries.

Other Interests

Budenheim, the Oetker Collection, Dr. Oetker Verlag, Oetker Daten- und Informationsver-arbeitung, Handelsgesellschaft Sparrenberg and Roland Transport are bundled in the Other Interests division.

Banking

Bankhaus Lampe is one of the leading private banks in Germany with its 12 German branches, further locations in Vienna and London and a cooperation in New York.

Food

Dr. Oetker is the umbrella for brand product com-panies in the areas of ambient food, frozen food, chilled products and bulk consumer business. The Martin Braun Group and Frische Paradies Group complete the range.

Beer and Nonalcoholic Beverages

With 14 brewing locations, the Radeberger Group is Germany’s largest private brewing group. It includes the premium mineral water Original Selters, the alcohol-free thirst quencher Bionade and the refreshing tea Ti.

Key Indicators / Divisions

The Oetker Group

The Oetker GroupDivisions

Shipping

The Hamburg Süd Group connects all five continents with its logistics network. It operates container ships, bulk carriers and product tankers. It recently acquired the container line business of CCNI.


Henkell & Co. is not only Germany’s most exported sparkling wine brand, but is a leading provider of sparkling wine, wine and spirits in Europe. The Group is represented in 20 na-tions and exports to more than 100 countries.

Other Interests

Budenheim, the Oetker Collection, Dr. Oetker Verlag, Oetker Daten- und Informationsver-arbeitung, Handelsgesellschaft Sparrenberg and Roland Transport are bundled in the Other Interests division.

Banking

Bankhaus Lampe is one of the leading private banks in Germany with its 12 German branches, further locations in Vienna and London and a cooperation in New York.

Food

Dr. Oetker is the umbrella for brand product com-panies in the areas of ambient food, frozen food, chilled products and bulk consumer business. The Martin Braun Group and Frische Paradies Group complete the range.


With 14 brewing locations, the Radeberger Group is Germany’s largest private brewing group. It includes the premium mineral water Original Selters, the alcohol-free thirst quencher Bionade and the refreshing tea Ti.

In round 40 countries around the world, people rely on delicious food from Dr. Oetker. The Food Division bundles its brand product companies under this umbrella. It is completed by the Martin Braun Group and the FrischeParadies Group. 12,790 staff work in these division’s companies and realized sales revenue of EUR 2,622 million in the 2014 financial year.

Food

oetker.comoetker.deoetker-professional.de frischeparadies.demartinbraungruppe.de

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

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

http://www.oetker-professional.de/start.html

http://www.frischeparadies.eu

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

Food

The Oetker Group

Dr. OetkerDr. August Oetker founded a small company in Bielefeld more than 120 years ago. He sold health cocoa, tinctures and baking powder. Today, 10,820 employees worldwide in the Dr. Oetker family business produce more than 3,500 products – still including baking pow-der and many other baking products, but also baking mixes, decorations, desserts and sweet meals, chilled desserts, preserving prod-ucts, ready cakes, Vitalis Müsli, frozen pizzas and snacks, refining products, a broad range for bulk consumers and lots more.

FrischeParadies GroupThe FrischeParadies Group knows its business when it comes to the finest food. 560 employ-ees work at Germany’s biggest deli catessen, which offers more than 12,000 delicacies from around 70 countries. Apart from the full

range offered in the eight German and two Austrian markets, these delicacies are also delivered to Denmark, Poland, the Czech Republic, the Baltic States and Majorca. These delicious products are also available to pri-vate customers via the online shop.

Martin Braun GroupThe Martin Braun Group markets a full range of convenience products such as sweet and savory bakery products, breads and rolls, des-serts and ice cream for bulk consumers. With Agrano, C. Siebrecht Söhne, Cresco, Capfruit, Delite, Martin Braun and Wolf ButterBack, it comprises all companies in the sector of bulk consumer baking and em-ploys more than 1,400 staff at 13 locations. With their products, the Group is repre-sented in around 70 countries worldwide.

Beer and NonalcoholicBeverages

Whether traditional or innovative, the Radeberger Group offers beers and nonalcoholic beverages of all kinds. 14 brewing locations, a mineral spring in Selters an der Lahn, the Bionade brand from Ostheim vor der Rhön and Ti, the alternative refreshing tea, represent the great diversity of the beverages offered by Ger many’s largest privately run brewing group. This Group forms the Beer and Non-alcoholic Beverages Division, where 5,757 employees generated EUR 1,929 million in sales revenue in 2014.

radeberger-gruppe.de

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


The Oetker Group

BeersWith its extensive product portfolio, the Radeberger Group reflects the diversity of the German beer market: with the national premium brands of Radeberger Pilsner, Jever Pilsner and Schöfferhofer Weizen, the Group offers top-class, strong-selling beers. National specialties such as the Clausthaler brand, the nonalcoholic among the beers, round off this segment.

True to the old brewers’ motto, “beer needs a home,” regional beers are enjoying grow-ing popularity in the German beer market. As leading German brewing group, the Radeberger Group can demonstrate its multi-faceted skills especially in this area with a large number of long-established beer brands. Allgäuer Büble Bier, Berliner Kindl and Berliner Pilsner, Brinkhoff’s No. 1, Dort-munder Kronen, Sion Kölsch, Ur-Krostitzer, Freiberger, Stuttgarter Hofbräu and Tucher, to name just a few of the brands, offer a major range of regional premium brands for beer aficionados and connoisseurs.

In addition, the brands of the Radeberger Group are also represented by different varie-ties in the market for nonalcoholic beers.

International import brands like Guinness, Kilkenny and Estrella Damm round off the portfolio. At the same time, the growing ex-port business proves that the brands of the Radeberger Group find great respect inter-nationally as ambassadors of the German brewing art.

Nonalcoholic BeveragesWith mineral water of the Original Selters brand, organic drinks of the Bionade brand and the refreshing tea Ti, which is made of tea of outstanding organic quality, the diversity of the Radeberger Group is just as broad in the area of nonalcoholic beverages. In addi-tion, the Radeberger Group has been co-operating with PepsiCo Deutschland since the beginning of 2015 and is producing and marketing the Pepsi, Mirinda, 7Up and Schwip Schwap brands in selected regions.

Sparkling Wine, Wineand Spirits

Henkell – this name stands for Germany’s most exported sparkling wine brand. And it stands for the Henkell & Co. Group, whose companies rich in tradition with 2,007 employees form the Sparkling Wine, Wine and Spirits Division. In the 2014 financial year they generated sales revenue of EUR 697 million. The Group, which is based in the historic headquarters building in Wiesbaden, is re-presented with its own companies in 20 countries and exports to more than 100 nations worldwide.

henkell-sektkellerei.de

http://www.henkell-sektkellerei.de/en


The Oetker Group

Sparkling WineThe Henkell & Co. Group offers all relevant varieties of sparkling wine from its own pro-duction. Besides well-known German sparkling wine brands such as Henkell, Fürst von Metternich, Deinhard, Kupferberg Gold and Söhnlein Brilliant, the portfolio comprises its own Champagnes and Crémants from France, Prosecco from Italy, Cava from Spain and Krimsekt from the Ukraine. In addition there are the sparkling wine brands from Hungary, the Czech Republic, Poland, Romania and Slovakia which have been established for de-cades. Henkell & Co. is the number one for sparkling wine in Austria, Sweden, Hungary, Estonia, the Czech Republic, Slovakia and Canada and for alcohol-free sparkling wine in France and for Prosecco in the United States.

WineBesides numerous sparkling wines, a collec-tion of well-known German and international

wines completes the Group’s range: The two German vineyards Fürst von Metternich- Winneburg’sche Domäne Schloss Johannis-berg and G.H. von Mumm’sches Weingut can look back on several centuries of experi-ence in making exquisite wines and pro-ducing world-famous Riesling wines. Interna-tionally, the BB, Víno Mikulov, Habánské Sklepy and I heart wines set important accents for the Group.

SpiritsHenkell & Co. is also a market leader in the spirits segment – for vodka in Germany, for gin in Poland and for brandy in Slovakia. The portfolio includes Wodka Gorbatschow, Kuemmerling, Fürst Bismarck, Jacobi 1880, Scharlachberg, Pott Rum, Batida de Côco, Mangaroca Cachaça and Cardenal Mendoza brands.

Shipping

With more than 250 offices, the Hamburg Süd Group is represented at key locations on all continents. With more than 160 ships, of which 46 are owned by the Group, it counts among the world’s twelve biggest container lines and is a leading provider in north–south traffic. In 2014 it realized sales of EUR 5,186 million with 5,360 em-ployees. Its core business is container line shipping, including all upstream and downstream logistics services with Hamburg Süd as German carrier and Aliança as a Brazilian shipping line.

hamburgsud.com

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

Shipping

The Oetker Group

Line shippingHamburg Süd has a network of approxi-mately 45 line services at its disposal, in which a good 110 container ships and a pool of more than 450,000 containers are deployed. To guarantee high logistics quality and optimum transport conditions, most of the container ships are designed to suit the particular needs of the regions they operate in. Besides standard 20- and 40-foot boxes, special containers are used that take into ac-count the different requirements of certain raw materials, semifinished and finished prod-ucts, industrial goods, but also natural prod-ucts. This applies in particular to the reefer segment, where refrigerated container tech-nologies preserve and even improve the qual-ity and shelf-life of fruit, vegetables, meat, poultry or fish.

Tramp shippingUnlike in line shipping, there are no fixed schedules and routes in tramp operations. Here the Group is present on the seven seas in bulk and product tanker shipping with more than 50 ships under the names of Rudolf

A. Oetker (RAO), Furness Withy Chartering and Aliança Bulk (Aliabulk). When and where which ship will be loaded and where it will sail to, depends on the customer and their load. Bulk ships carry bulk goods such as fertil izers, wheat or coal. Apart from that, the Group’s service port folio includes product tankers, which transport bulk liquids such as diesel oil and aviation fuel, but also mo-lasses, vegetable oils and light chemicals.

Other servicesColumbus Shipmanagement GmbH (CSG) handles the technical management of the Group’s own line ships and support for their crews. It also supports new shipbuilding, which takes place above all in Asia. The ship-ping Group holds interests in a terminal in Brazil and operates its own container depots and transport companies primarily in South America. Hamburg Süd Reiseagentur, a spe-cial service provider for business travel, cruises and other tourism products, rounds off the service spectrum in the Shipping Division.

Other Interests

The Other Interests Division comprises with its companies the chemical industry, publishing, luxury hotels, information technology and logistics and thus has a very diverse product and service port-folio. The 2,440 em ployees of this division generated sales revenue of EUR 500 million in the 2014 financial year.

budenheim.comoetker-verlag.deoetkercollection.comoediv.deroland-transport.de

http://www.budenheim.com/en/

http://www.oetker-verlag.de

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

http://oediv.de/?language=en

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

Other Interests

The Oetker Group

BudenheimThe traditional company Budenheim has its origins in the town of the same name in Rhine-Hessen. On the world markets, it has developed into an international and leading manufacturer of premium phosphates and special chemicals. 940 employees here pro-duce more than 1,000 products for around 6,000 customers in over 100 countries – for special technical applications, food and phar-maceutical products.

Dr. Oetker VerlagFounder Dr. August Oetker showed the way. He printed recipes on the back of his products. The first collection of recipes appeared in book form in 1911 – the legendary “Dr. Oetker Schulkochbuch.” The Dr. Oetker Verlag pub-lishing house was then founded for these pop-ular books in 1950. With its diverse printed and digital range, it is today Germany’s best-known cookery book publisher.

Handelsgesellschaft SparrenbergMarket competence, services, tools: Handels-gesellschaft Sparrenberg supports the Oetker Group and selected external companies in strategic purchasing with information and consulting services in the area of procure-ment market research, product group ana-lysis, tender management and coordination/pooling.

OEDIV Oetker Daten- und InformationsverarbeitungOEDIV Oetker Daten- und Informations-verarbeitung operates not only the Group’s own data centers, but also IT systems for external companies. Focal points are the ap-plications from SAP and Microsoft and associated solutions for mapping integral process chains.

Oetker CollectionUnique elegance and distinct hospitality – they symbolize the “Masterpiece Hotels” of the Oetker Collection. Four of these master-pieces – the Brenners Park-Hotel & Spa, the Hôtel Le Bristol, the Château Saint-Martin & Spa and the Hôtel du Cap-Eden-Roc – belong to the Group. Five further Grand Hotels complete the Collection. Their management is entrusted with the Oetker Hotel Manage-ment Company (OHMC).

Roland TransportRoland Transport is a service-oriented partner for logistics services. With audits and pro-cess optimization, the company provides for efficiently designed services in an overall package.

Banking

Bankhaus Lampe is one of Germany’s leading private banks and stands for quality. The select customer base includes wealthy private customers, companies and institutional clients. With 654 em-ployees, the Group of the same name forms the Banking Division. Besides Bankhaus Lampe with twelve branches and other locations in London, New York and Vienna, it comprises several subsidiaries and equity participations.

bankhaus-lampe.de

https://www.bankhaus-lampe.de/en

Banking

The Oetker Group

Bankhaus LampeHermann Lampe founded the bank in Minden in Eastern Westphalia in 1852. Today it is headquartered in Bielefeld. There are other branches in Berlin, Bonn, Bremen, Dresden, Düsseldorf, Frankfurt am Main, Hamburg, Munich, Münster, Osnabrück and Stuttgart.

Like in its early years, Bankhaus Lampe today still finances entrepreneurs and companies and advises them on issues surrounding equi-ty and external capital. In addition, it is spe-cialized in financial consulting and manage-ment for wealthy private customers, as well as the investment business and asset manage-ment for institutional clients.

As a bank of entrepreneurs for entrepreneurs, this traditional company operates in the market with total independence and conti-nuity and thus offers ideal conditions for long-term and trustful business relationships.

“Going the extra mile” is the aspiration to which the bank and its staff always feel com-mitted. Bankhaus Lampe faces the competi-tion from the major banks with a balance of exclusivity, personal advice and state-of-the-art processes and offers a trendsetting model in the area of private banks.

The Oetker GroupHistory

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

1923Budenheim acquired. 1941

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

1944The founder’s grand-son, Rudolf-August Oetker (1916–2007) takes over the manage-ment of the family business and continu-ously opens new divi-sions.

1950Dr. Oetker Verlag founded.

1891The pharmacist, Dr. August Oetker, lays the foundation for the company Dr. Oetker with the development of the baking powder Backin.

1936Participation in the shipping company Hamburg Süd.

The Oetker Group

History

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

1969Hôtel du

Cap-Eden-Roc (France)

acquired.

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

1981August Oetker becomes general partner of Dr. August Oetker KG.

1958Acquisition of Söhnlein

Rheingold Sektkellerei. Today’s international

Henkell & Co. Group was formed through

the later merger with Henkell & Co.

1978Le Bristol Paris acquired.

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

2010Richard Oetker

becomes general part-ner of Dr. August

Oetker KG and takes over as Chairman of the Management Board of

Dr. Oetker GmbH.

The Oetker GroupIn Brief

Germany

Other EU

Other European

Rest of the world

Distribution of sales revenue by region

34.2 %

23.6 %

5.1 %

37.1 %

EUR 5,186 million(EUR 5,254 million)



EUR 697 million(EUR 687 million)


Sales revenue(previous year)

Shipping

Food



Other Interests

47.4 %24.0 %17.6 %6.4 %4.6 %

Shares in total sales revenue

02 Consolidated Financial Statements

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Environmental Protection

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Consolidated Balance Sheet 80 – 81

Consolidated Statement of Changes

in Fixed Assets 82 – 83

Group Notes 84 – 91

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“We think long-term. We think in generations, not in quarters. We don’t intend to be the fastest, but always to be counted among the best. Our corporate values are elementary components of a strategy aimed at the long-term. We are creative yet com-posed in response to challenges, so we face the future with courage, too.”

Richard Oetker

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“There is nothing permanent except change,” said the Greek phil-osopher Heraclitus 2,500 years ago. There is indeed a lot of truth in this apparent paradox between action and inaction and the sen-tence cited above naturally also applies to our company, which has operated successfully for over 120 years. Because we, too, are surrounded by global megatrends that affect us directly regard-less of the business sector or country involved.

Technological developments like increasing digitization promote further individualization. Social trends like the demographic developments are changing the focal points of world affairs for the long term; the tendency towards further urbanization allows existing metropolises to continue growing or forms completely new centers of social and economic power. And ultimately globaliza-tion will continue increasing, meaning other nations than today’s will occupy a leading role in the global economy of the future. So the Oetker Group does not regard itself as a static company in-capable of change, but will face the challenges of the future both pragmatically and dynamically, whereby the old principle applies that everything we do is based on the notion of sustainable busi-ness development.

I thank all the customers and business partners of our Group com-panies for their good cooperation in the reporting year. But above all, I thank all our employees who have contrib uted to the growth of our company with their commitment at their workplace and on our boards. Against the background of our philosophy of social values and standards practiced for decades now, we have proven

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“There is nothing permanent except change,” said the Greek phil-osopher Heraclitus 2,500 years ago. There is indeed a lot of truth in this apparent paradox between action and inaction and the sen-tence cited above naturally also applies to our company, which has operated successfully for over 120 years. Because we, too, are surrounded by global megatrends that affect us directly regard-less of the business sector or country involved.

Technological developments like increasing digitization promote further individualization. Social trends like the demographic developments are changing the focal points of world affairs for the long term; the tendency towards further urbanization allows existing metropolises to continue growing or forms completely new centers of social and economic power. And ultimately globaliza-tion will continue increasing, meaning other nations than today’s will occupy a leading role in the global economy of the future. So the Oetker Group does not regard itself as a static company in-capable of change, but will face the challenges of the future both pragmatically and dynamically, whereby the old principle applies that everything we do is based on the notion of sustainable busi-ness development.

I thank all the customers and business partners of our Group com-panies for their good cooperation in the reporting year. But above all, I thank all our employees who have contrib uted to the growth of our company with their commitment at their workplace and on our boards. Against the background of our philosophy of social values and standards practiced for decades now, we have proven

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that our corporate culture marked by robustness, experience and innovative power is the guarantee for sustainable success even in economically difficult and rapidly changing global conditions. Maintaining that stance amidst permanent change will be our priority in the future, too.

With best wishes,

Richard Oetker

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We live values and create trust – with tradition


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and experience. We demonstrate innovative power and set


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new trends. We always work with complete commitment, whereby


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our international presence is our strength because it secures our market proximity worldwide.


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The diversity of our products and services defines us as much as


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their quality. For more than 120 years – and in the future, too.


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Contents


The Oetker Group Management Structure 18 – 19

Group Management 20 – 21

Overview 22

Economic Framework 23 – 25

Business Development and Situation 26 – 27

Locations 28 – 29

Business Divisions Food 30 – 37

Beer and Nonalcoholic Beverages 38 – 42

Sparkling Wine, Wine and Spirits 43 – 47

Shipping 48 – 52

Other Interests 53 – 59

Banking 60 – 61

Assets and Financial Position 62 – 64

Performance Indicators Financial and Nonfinancial

Performance Indicators 65

Personnel 66 – 70

Environmental Protection 71 – 73

Forecast 74

Risks and Opportunities Report 75 – 77



Consolidated Statement

of Changes in Fixed Assets 82 – 83


Publishing Information 92


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The Oetker Group Management Structure 18 – 19

Group Management 20 – 21

Overview 22

Economic Framework 23 – 25

Business Development and Situation 26 – 27

Locations 28 – 29

Business Divisions Food 30 – 37

Beer and Nonalcoholic Beverages 38 – 42

Sparkling Wine, Wine and Spirits 43 – 47

Shipping 48 – 52

Other Interests 53 – 59

Banking 60 – 61

Assets and Financial Position 62 – 64

Performance Indicators Financial and Nonfinancial

Performance Indicators 65

Personnel 66 – 70

Environmental Protection 71 – 73

Forecast 74

Risks and Opportunities Report 75 – 77



Consolidated Statement

of Changes in Fixed Assets 82 – 83


Publishing Information 92

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The Oetker GroupManagement Structure

The Oetker Group is one of Germany’s major family businesses. The owner family exerts considerable influence on the Group’s strategy and business policy. It has estab-lished the principle of its entrepreneurial engagement in the following words: “The interests of the company have priority over those of the owner family.”

That principle forms the basis for continuous development of the business, as it puts the Oetker Group in a position to combine sustainable and healthy profitability with a high earnings retention rate.

The management structure ensures that decisions are made locally, close to the market and based on the needs of the line of business concerned, while resources are pooled centrally at the same time. The management level consists of the stockholders’ meet-ing, the advisory board, Group management and the executive boards of the individual companies.

The advisory board of Dr. August Oetker KG, which, based on the articles of incorpo-ration, is made up of stockholders and a majority of persons from outside the stock-holder fam ilies, changed in one position during the 2014 financial year: Professor Ulrich Lehner, member of the stockholders’ committee of Henkel AG & Co. KGaA, has stepped down from the advisory board. To replace him, Mr. Hans-Otto Schrader, chairman of the executive board of the Otto Group, was elected onto the advisory board.

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

A further change took place at the beginning of the new financial year: on Janu-ary 28, 2015, Dr. Alfred Oetker was elected as deputy to the chairman of the advisory board, Dr. h. c. August Oetker.


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The Oetker Group


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Stockholders

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

Professor Ulrich LehnerDeputy Chairman of the Advisory Board of Dr. August Oetker KG, member of the stockholders’

committee of Henkel AG & Co. KGaA (member of the Advisory Board until May 15, 2014).

Dr. Christoph v. GrolmanManaging Director of TBG Ltd (Chief Executive Officer of TBG AG since January 1, 2015).

Dr. Andreas JacobsPresident of the Administrative Board of Jacobs Holding AG and Barry Callebaut AG.

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

Dr. h. c. August Oetker, since January 28, 2015).

Hans-Otto SchraderChairman of the Executive Board of the Otto Group (member of the Advisory Board since May 16, 2014).

Rudolf Louis SchweizerStockholder of Dr. August Oetker KG.

Carsten SpohrChairman of the Executive Board of Deutsche Lufthansa AG.

Group Management Richard OetkerGeneral Partner of Dr. August Oetker KG and Chairman of the Executive Board of Dr. Oetker GmbH.

Dr. Albert ChristmannGeneral partner of Dr. August Oetker KG, Head of Other Interests, Banking, Finance, Controlling,

Legal and Taxes.

Dr. Ottmar GastGeneral Partner of Dr. August Oetker KG and Chairman of the Executive Board of Hamburg

Südamerikanische Dampfschifffahrts-Gesellschaft KG (Hamburg Süd).

Dr. Niels LorenzChairman of the Executive Board of Radeberger Gruppe KG.

Executive Boards of the Group Companies

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

Group Management


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The companies of the Oetker Group operate in various business divisions worldwide. Under the Group umbrella and building on the strategic potential and core com-petencies of the Oetker Group, the divisions are developed and expanded autonomously. As the Group holding company, Dr. August Oetker KG steers this process centrally through mature structures, the leadership framework with clear responsibilities, co-ordination of finance and personnel and via central service departments. Standards and values across the Group form the cultural framework for effective cooperation build-ing on high business continuity.

The Oetker Group is a corporation committed to the mainstays of diversification and risk balancing and within the individual divisions forces a focus on core competen-cies. It consists of five consolidated divisions: Food; Beer and Nonalcoholic Beverages; Sparkling Wine, Wine and Spirits; Shipping and Other Interests.

The consolidated financial statements for 2014 cover a total of 398 companies (previous year: 392 companies) under the rules of full consolidation, of which 234 are based in Germany (previous year: 232) and 164 (previous year: 160) abroad. The Banking Division is included in the consolidated financial statements at equity.

The Oetker Group is represented with companies in more than 50 countries and maintains an extensive network of production, sales and service units on all continents. There are more than 250 locations worldwide.

Overview


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Economic Framework

Macroeconomic Framework The world economy grew in total by 3.6% in 2014. Having grown moderately in the first half of the year, global industrial production increased strongly in the second half, even if the dynamic slowed down in the fourth quarter. Global trading also displayed similar trends.

While the economic development in the European Union grew moderately during the reporting year despite the negative impact of the crisis in Ukraine, the picture was a heterogeneous one. While the United Kingdom posted robust growth rates, only Spain besides Germany developed positively among the major countries of the eurozone. France’s eco nomy stagnated and Italy remained in recession. The EU states in Eastern Europe, in contrast, displayed solid growth. Germany’s gross domestic product grew on average for the year by 1.5% and with it has proven stable. It was thus above the average of the last ten years of 1.2%. According to the Federal Statistical Office, the German economy benefited from strong domestic demand.

The economic recovery continued in North America, while growth in South America fell clearly below that of the previous year. Especially in Brazil, the economic situation deteriorated dramatically when compared to the previous year. Driven by China, Asia (excluding Japan) recorded robust economic growth. Africa and Middle East also ex-ceeded the previous year’s level while Japan stagnated.

The massive fall in oil prices, which almost halved by the end of 2014 from a level of approximately USD 100 per barrel of the Brent grade starting in mid 2014, contrib-uted to the economic stimulus in the oil-importing nations and provided for a positive boost for the global economy.

Global monetary policy remained highly expansive in the advanced economies, but began to vary in 2014 depending on the economic situation. While the United States ended its program to buy up additional bonds in the fall of 2014 and prepared the market for possibly rising interest rates starting in mid 2015, the European Central Bank (ECB) decided to lower the already extremely low base interest level again and, in add-ition, to buy up securities on a grand scale from 2015 onward.

The inflation rate and dynamic in private demand in the eurozone remained restrained, while they rose slightly in North America and more strongly in the growth markets.

24

The Oetker Group’s international business is affected by the exchange rate of the euro versus many other currencies. The US dollar is of particular significance and its development was unclear over the course of the year: at the beginning of the year, the euro remained continuously high and at times was quoted at USD 1.39, while in the second half of the year it weakened steadily before closing at just over USD 1.21 and thus recorded a devaluation of 12.0% when compared to the closing price at the end of the previous year.

The table below shows the development in the currencies important to the Oetker Group versus the euro:

CLOSING AND AVERAGE RATES VERSUS THE EURO

As of December 31, 2013

As of December 31, 2014

Average2013

Average 2014

Australian dollar 1.5423 1.4829 1.3936 1.4723

Brazilian real 3.2576 3.2207 2.8937 3.1093

British pound 0.8337 0.7789 0.8501 0.8031

Canadian dollar 1.4671 1.4063 1.3771 1.4636

Turkish lira 2.9605 2.8320 2.5675 2.8942

US dollar 1.3791 1.2141 1.3308 1.3211

Division-Specific Framework Conditions

Food; Beer and Nonalcoholic Beverages; Sparkling Wine, Wine and Spirits The markets for fast-moving consumer goods (FMCG) and in particular the food markets, in Europe displayed merely low growth dynamic in 2014. The global economy is still marked by general uncertainty and consumer restraint, political risks in Eastern Europe and the Middle East and the consequences of the economic sanctions against Russia resulted, among other things, in fluctuations on the currency mar-kets, falling oil prices and a more relaxed situation on the commodity markets. The Ger-man beverage and beer market grew – for the first time in years – for the full year (+ 1% versus the previous year).

Shipping Deliveries of new container ships last year reached an all-time high. Global slot capacity now stands at 18.4 million TEU (1 TEU = 20 foot standard container). As the capacity growth (around 6%) again outstripped the global cargo growth (around 5%), the over-capacity rose further. The South American shipping traffic was especially strongly hit. Medium-sized container ships with a capacity of up to 10,000 TEU in the major east–west trades are being increasingly displaced by large ships with a capacity of up to 20,000 TEU. These are now being deployed in the South American routes, which, in ad-dition, has displayed particularly weak cargo growth on account of the poor economic


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trends in Brazil, Argentina and Venezuela. The pressure on revenue persisted and was – following the general conditions – much higher in north–south trade lanes than in east–west services.

A high bunker price and a relatively weak US dollar versus the euro impacted the results in the first half of the year. Both trends reversed over the course of the second half of the year.

Bulk-goods shipping likewise suffered under substantial overcapacity. Charter rates and time charter equivalents and freight rates reached all-time lows in a number of ship classes.

ChemistryThe chemical industry in Germany suffered under the global environment, which worsened over the course of the year. The relief in raw-material costs had merely weak-ened effects due to the rise in value of key currencies versus the euro.

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Business Development and Situation

2012 2013 2014 %*

NET SALES (IN EUR MILLION) 10,942 10,844 10,934 0.8

Food 2,501 2,577 2,622 1.7



Shipping 5,468 5,254 5,186 –1.3

Other Interests 454 483 500 3.7

INVESTMENTS (IN EUR MILLION)

(excluding companies consolidated

for the fi rst time) 531 777 667 –14.2

Food 119 158 132 –16.6

Beer and Nonalcoholic Beverages 97 105 121 15.1


Shipping 247 450 348 –22.7

Other Interests 50 52 50 –2.3

EQUITY (IN EUR MILLION) 2,847 3,105 3,484 12.2

As a percentage of the balance sheet total 37 40 41

BALANCE SHEET TOTAL (IN EUR MILLION) 7,695 7,770 8,499 9.4

EMPLOYEES 26,406 26,907 28,354 5.4

Food 11,752 12,272 12,790 4.2


Sparkling Wine, Wine and Spirits 2,040 2,028 2,007 –1.0

Shipping 4,512 4,491 5,360 19.3

Other Interests 2,377 2,427 2,440 0.5

* Percentage change 2013/2014. The percentages relate to the exact amounts rather than the rounded totals.

Given the general conditions, the Oetker Group developed in an acceptably decent way on the bottom line in 2014 – and, as a rule, better in each division than the sectors con-cerned. Sales in the consolidated Group rose by 0.8% to EUR 10,934 million (previous year: EUR 10,844 million). Without accounting for the first-time consolidations and de-consolidations, the growth adjusted for exchange rate effects was also 0.8% and thus below planned figures. The sales revenue development of the Oetker Group was im-pacted less strongly through the change of the various currencies versus the euro by EUR 32 million and thus less than in the previous year (EUR 217 million). The effects for the sales revenue of the foreign currency most important to the Group, the US dollar, were – unlike in the previous year – almost balanced out. Consolidated Group effects caused sales to rise by EUR 39 million.

The distribution of sales over the business divisions of the Oetker Group and the regions can be found in the tables that follow.


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Sales revenue(previous year)

Shipping

Food



Other Interests

47.4 %24.0 %17.6 %6.4 %4.6 %

Shares in Total Sales Revenue

Rest of the world

Distribution of Sales Revenue by Region

Other European5.1 %

Other EU23.6 %

Germany34.2 %

37.1 %






Distribution of Investments by Division

Shipping

Food


Other Interests


52.2 %

19.7 %

18.2 %

7.5 %

2.4 %

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Locations

H Hotel owned by the GroupPL Production locationPSL Production and sales locationSAL Sales locationSASU Sales support SEL Services locationSHL Shipping line SLL Sales and logistics location

24North America

Food

75Locationsworldwide

18Germany

22Western Europe

21Eastern Europe

1Latin America

5North America

6Asia and Australia

2Africa



16Germany

1Western Europe

1North America



10Eastern Europe

11Western Europe

1North America

3Germany

Food: 3 PL, 1 SAL, 1 PSL (Dr. Oetker)Beer and Nonalcoholic Beverages: 1 SALSparkling Wine, Wine and Spirits: 1 SALShipping: 15 SLLOther Interests: Chemistry: 1 PSL / Others: 1

42Latin America

Food: 1 PSL (Dr. Oetker)Shipping: 1 SHL, 36 SLL, 3 SEL Other Interests: Chemistry: 1 PSL


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Other Interests

8Western Europe

11Germany

1Latin America

2North America

6Asia and Australia

Shipping

Locationsworldwide

40Latin America

7Germany

14Western Europe

15North America

28Asia and Australia

6Africa

55Germany

Food: 3 PL, 8 SAL, 7 PSL (Dr. Oetker: 3 PL, 4 PSL / Martin Braun: 3 PSL / FrischeParadies: 8 SAL)Beer and Nonalcoholic Beverages: 1 SAL, 15 PSLSparkling Wine, Wine and Spirits: 1 PL, 2 PSLShipping: 2 SHL, 3 SLL, 2 SELOther Interests: Chemistry: 1 PSL / Hotels: 1 H, 1 SASU / Others: 8

31Eastern Europe

Food: 3 PL, 10 SAL, 8 PSL (Dr. Oetker: 3 PL, 7 SAL, 7 PSL / Martin Braun: 3 SAL, 1 PSL)Sparkling Wine, Wine and Spirits: 3 SAL, 7 PSL

40Asia and Australia

Food: 1 PL, 1 SAL, 4 PSL(Dr. Oetker: 1 PL, 4 PSL / Martin Braun: 1 SAL)Shipping: 1 SHL, 27 SLLOther Interests: Chemistry: 3 SAL, 1 PSL / Others: 2

Locationsworldwide

28 110

8Africa

Food: 2 PSL (Dr. Oetker)Shipping: 6 SLL

56Western Europe

Food: 1 PL, 13 SAL, 8 PSL(Dr. Oetker: 1 PL, 11 SAL, 3 PSL / Martin Braun: 5 PSL / FrischeParadies: 2 SAL)Beer and Nonalcoholic Beverages: 1 SALSparkling Wine, Wine and Spirits: 7 SAL, 4 PSLShipping: 1 SHL, 13 SLLOther Interests: Chemistry: 1 SAL, 2 PSL / Hotels: 3 H / Others: 2

30

Food Division

2013

2014

2,622 euros in sales

million


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Business Divisions

oetker.comoetker.deoetker-professional.commartinbraungruppe.defrischeparadies.de

The Food Division is made up of the branded food companies managed under the umbrella of Dr. Oetker GmbH and whose products are sold world-wide in all significant distribution channels. The German core company is Dr. August Oetker Nahrungsmittel KG based in Bielefeld. There are sales and production sites in around 40 countries.

The Food Division is complemented by the Martin Braun Group and the FrischeParadies Group, which operate in the end-consumer and bulk-con-sumer segments.

In the end-consumer segment, the companies managed under Dr. Oetker GmbH con-centrate on three strategic product ranges: ambient food, frozen pizza and chilled prod-ucts. In these product ranges, which include, among others, baking and decoration products, baking mixes, powdered desserts, preserves, muesli, fresh ready desserts, as well as frozen pizzas and snacks. Dr. Oetker in Germany is represented with around 400 different products and is market-leader there in almost all of its product ranges.

In Europe, the company is market-leader in the areas of baking products, powdered desserts and frozen pizza. The international ranges in Europe and the other coun-tries comprise more than 3,500 different products, which in some cases are sold inter-nationally and in other cases are adapted to the local taste typical to the country. In India, Dr. Oetker is also present with various dressings, sauces and dips and in France with sticks and pretzels.

The end-consumer business is supplemented by specific ranges aimed at bulk consum-ers. For that purpose, Dr. Oetker Professional offers products in appropriate package sizes for kitchens and canteens in the catering segment, hospitals and other institutions.

The Martin Braun Group produces and sells a full range of convenience products with the emphasis being on sweet and savory baked products, bread and rolls, desserts and ice cream for bulk consumers in all relevant sales channels in more than 70 countries. This also includes preliminary products for commercial processing, including organic yeast as well as sweet and savory frozen products.

The FrischeParadies Group offers its high-quality ranges to private customers, hotels and the gastronomy industry, whereby fish and meat are the key product groups. The attractive cash-and-carry markets offer discerning customers a unique variety of high- quality foods. A clearly profiled competence in the area of fresh produce, the high

More than

3,500different products worldwide.

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

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

http://www.oetker-professional.de/start.html

http://www.frischeparadies.eu

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

32

innovative power in the range and a strategy focusing on private and exclusive labels provide for clear differentiation versus the competition. At the same time, the sales ac-tivities are promoted on the Internet.

Procurement To guarantee the high quality demanded of its products, Dr. Oetker GmbH procures the raw materials only from carefully selected suppliers who are monitored in a regular quality assurance process. The compliance with the strict quality standards has top pri-ority. The Dr. Oetker Food Standard defines the requirements for the raw materials. All suppliers and contract partners are measured against those requirements. Dr. Oetker expects of the suppliers and contractors that their behavior is in line with the Group’s business ethics values. The ethical and moral values are established in the Dr. Oetker Supplier Code of Conduct, to which all suppliers are committed.

Ensuring the quality of the raw materials requires very specific know-how of the em-ployees depending on the materials group concerned. The internationality of the business operations enables and requires global know-how and observation of the pro-curement markets important for Dr. Oetker. In close coordination with the suppliers, the company attaches great importance to value chain optimization and the security of supply. Against the background of increasing uncertainties with regard to raw-material price trends and security of supply on the on the raw-material markets, risk management is a key aspect of the purchasing strategy. For this purpose, Dr. Oetker has established modern methods to identify and manage the price, quality and supply risks specific to the material groups, which support the employees in complying with the high de-mands on the procurement process.

Specific purchasing guidelines of the Martin Braun Group ensure transparency in pur-chasing. These guidelines have been adapted to the standards of the Oetker Group. Supplier performance, for example, is reviewed and documented as part of an actual- plan analysis.

In the FrischeParadies Group, more than 40 trained purchasers work on finding pre-mium products across the world. During the reporting year, the procurement markets for imports of frozen seafood were extended to further countries in Southeast Asia.

Production and Logistics Within Dr. Oetker GmbH, the newly built pizza plant in London (Canada) with a planned production volume of 27 million pizzas per year, was completed and put into operation in May 2014. As a result, hardly any frozen pizzas need now be shipped from Germany to Canada. This lowers logistics expenses and also benefits the environment.

27 millionpizzas per year in Canada.


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Business Divisions

The acquisition of production plants and trademarks from McCain in Canada and the United States (see page 36) will also affect the logistics processes in the medium term in those countries.

In India, the work on a new, bigger food plant was continued at the Kaharani location.

In Germany, the production capacities for the Pizzaburger, above all, were expanded at the pizza production site in Wittlich. The pizza production in Wittenburg benefited from capital expenditures above all in the Pizza Technology Center. The expansion of the warehouse capacities at both locations means that the number of warehouses rented externally could be reduced and thus also the transport between the German ware-houses. At the same time, Dr. Oetker can also better exploit the potential for direct deliv-ery to European customers. Through investments in new warehouse technology, the company was also able to better adapt the height of the pallets to the load area available, which in turn saves on transport.

At Martin Braun KG in Hanover, a new floor was added to the production building in 2014 in order to modernize the powder production for the future. A driverless transport system to handle regularly repeated transport jobs was integrated in the existing infrastructure in order to optimize routing.

At Wolf ButterBack KG in Fürth, which belongs to the Martin Braun Group, capital expenditures were focused on the further conceptual and capacity development of the company.

Marketing and Sales In the food range of Dr. Oetker GmbH, numerous products adapted to suit the typical national taste take account of customer needs. In the case of pizza, the global manage-ment of its international brands plays a significant role. As a result, the decision- making processes are structured efficiently and the launch and marketing of innovations are accelerated. In the chilled product segment, Dr. Oetker has both global products and concepts as well as ranges adapted to local taste.

Innovation processes and knowledge transfer are secured by marketing teams in all segments and are a key element of the entire marketing organization.

The sales activities of Dr. Oetker GmbH are positioned decentrally. Sales are organized on a country-specific basis and thus meet the local needs of our customers. They are separated into the overarching trade target groups of retail and professional customers. Professional Category Management and Shopper Marketing exploit the potential of the categories worked on by Dr. Oetker in cooperation with the customers. Customer satisfaction studies and the long-term partnership with all leading retailers document our leading role in the markets served.

34

The Martin Braun Group sells its products worldwide via wholesale and retail channels, bakeries, confectioners and industrial operations. The sales teams of Martin Braun Poland and Grados were merged during the reporting year.

The FrischeParadies Group sells its products both in direct sales and in its cash-and-carry markets to customers in the catering trade and hotels, as well as to private custom-ers. The online shop was put into operation in November 2014.

Research and Development, New Products Innovations are of essential significance to the growth of the Oetker Group. The goal is to develop products that, both from a financial and from an ecological perspective, play on the customers’ needs and offer real added value. Besides our own research and development departments, we work together with external partners in science and industry to generate ideas and realize innovations.

Quality assurance has top priority at Dr. Oetker GmbH and takes place at all steps of the product life cycle. Products, including their manufacturing processes, are developed in close cooperation with many specialists from different areas of the company. The re-quirements in terms of recipe and base materials are established with the consumer’s needs in mind. The development and testing of the production technology are planned in order to also reduce the impact on the environment and climate.

The Food Information Regulation (EU Regulation 1169 / 2011) has raised the demands for food manufacturers on the information that must be provided on the products (on the packaging and above all electronically for databases and the Internet). To meet the new requirements, Dr. Oetker has optimized the processes for changing the recipes of existing products.

A large number of new products were launched in all three product ranges during the reporting year. These include, among others, the Pizzaburger, mug cakes for the micro-wave, small ready-to-eat cakes in box form, new variants of the chilled puddings Paula and Marmorette as well as Vitalis Roasted Muesli. Various innovation projects were con-ducted with the involvement of external partners, for example to adjust the properties and effects of powdered products, to develop a chocolate split-cutting technology and to reduce levels of salt. Technical enhancements, such as the programming and imple-mentation of a new ideas platform and the use of newly developed technologies, resulted in higher productivity and improved quality.


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Business Divisions

The Martin Braun Group structures its product development process in various phases, from the idea finding and the product briefing up to market introduction. In extensive baking trials, the right raw materials are combined with the ideas previously developed in order to ultimately achieve customer satisfaction and ensure success. Alternative raw materials were increasingly sought and built up in 2014 in order to secure the avail-ability of Braun products at all times.

The focal point of development in 2014 was mainly on the development and further development of customer-specific products. A total of 268 products were produced for the first time in Hanover. The harmonized QM system based on ISO 9001:2008 was expanded last year and extended to more locations.

At Martin Braun, 2014 was all about the introduction of the new Food Information Regulation with appropriate training for the entire sales organization and revision of all product specifications and labels. An online portal with an updating service was set up for customers on the homepage.

Business Development

KEY DATA 2013 2014

Sales revenue (in EUR million) 2,577 2,622

Adjusted sales revenue (in EUR million) 2,567 2,618

Investments (in EUR million) 158 132

Employees 12,272 12,790

The companies operated under the umbrella of Dr. Oetker GmbH increased their sales revenue by 0.9% when compared to the previous year. Adjusted for negative exchange rate effects, the growth amounted to 2.0%. Especially pleasing is the fact that Dr. Oetker was able to add sales especially in Eastern Europe and the Americas region. At EUR 114 million, investments were at the same high level as the previous year. The focus thereby was on expansion of the pizza production capacities in Eu-rope and North America. As part of a focusing strategy, the production of ready-to-eat desserts in Poland was sold and pizza activities in the highly competitive Brazilian market were discontinued.

Overall, the strategic product ranges in the areas of ambient food, frozen pizza and chilled products have developed well. In the intensely competitive pizza market, Dr. Oetker was able to build on its market shares. Among others, the innovative Pizza-burger product range contributed to that. Pizza Ristorante has continued its interna-tional success story and remains one of the most successful pizza concepts. Dr. Oetker was also able to strengthen its international presence in ambient food. Baking and decorating products enjoyed particular popularity among consumers. Across Europe, these segments met the trends towards home baking and decorating and contributed

EUR 114 million in investments.

36

to the positive performance in this area. In addition, the mug cakes were able to com-plement the product range in “snack baking mixes.” The product range in ready-to-eat desserts also developed positively. The Paula and Marmorette brands were supplemented by further innovative variants. Marmorette Splits with chocolate chunks in the cream and Paula Stracciatella are specialties in terms of both technology and flavor, which con-tributed to the growth of the Dr. Oetker brand in the area of ready-to-eat desserts. The Dr. Oetker Food Service unit changed its corporate identity. With the new brand concept of Dr. Oetker Professional, the needs and wishes of professional users of out-of-home suppliers were addressed still more strongly.

Especially pleasing was the acquisition of the North American pizza business from McCain in November 2014. With this step, Dr. Oetker achieved market leadership in the Canadian frozen-pizza market and can significantly strengthen its market presence in the core region on the east coast of the United States.

The Martin Braun Group was able to realize a revenue increase of 7.2% in 2014 com-pared to the previous year and thus achieve record sales revenue. The positive variance versus the previous year was strongly influenced by the integration of Delite B.V. in the Netherlands, which was acquired on January 1, 2014, as well as organic growth. That is especially pleasing as the European markets are stagnating and the number of craft bakeries in the German market is decreasing. In addition, the crisis in Ukraine resulted in a decrease in sales revenue decline in Ukraine and in Russia.

Product innovations like the MySweeties concept (cakes in a cup) and the Laugenecke from Wolf ButterBack contributed to the positive boosts. The German business bucked the market trend through the successful frozen bakery product ranges and bread and rolls and organic-yeast ranges. Agrano AG remains market leader in Switzerland. Capfruit in France, which was acquired in 2012 and the business build-up in Turkey and Singapore contributed to the positive development, as did the pleasing growth of the market in Hungary.

The FrischeParadies Group continued the positive trends of previous years in the elapsed 2014 financial year and was able to increase its sales revenue by 3.3%. Besides the acquisition of Fruchthof, that fact is attributable to the positive development in the export business. The Baltic states in particular developed above average. Furthermore, the expansion of the branch in Majorca contributed to the Group’s growth. The sub-sidiary Hamburger Feinfrost GmbH also put in very satisfactory performance in 2014 as a leading provider in the frozen-seafood segment. As a specialist and importer of wine, champagne and spirits, Weinwerk Frankfurt Handelsgesellschaft mbH was like-wise able to build on its activities in 2014.

7.2%revenue increase.


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Supplementary Report In the first quarter of 2015, the cartel office gave its approval for the acquisition of D’Gari in Mexico. With this step, Dr. Oetker is acquiring the Mexican market leader for jelly desserts and is entering the Mexican market for powdered desserts for the first time.

The purchase of the family business Coppenrath & Wiese by Dr. Oetker was set in motion at the beginning of March 2015 and is still subject to approval by the cartel office.

ForecastDr. Oetker will continue its internationalization in 2015, too. Through international product concepts, innovations and entry into markets so far not served, new eating opportunities will be offered and further target groups penetrated, whereby the acqui-sitions in Canada, the United States (McCain pizza business) and Mexico (D’Gari) are of particular significance. Operationally, we expect a moderate rise in sales, which will be further built on by these acquisitions.

Given its strong performance in recent years, the Martin Braun Group will abide by its strategy thus far and will both focus on the core market in Germany and continue development in the international growth markets. The Group expects merely a slight increase in sales for 2015, as the crisis in Russia will continue impacting the business and capacities in the growth areas of frozen food and organic yeasts are in many cases exhausted. Stronger growth is expected again in subsequent years.

The FrischeParadies Group is expecting further strengthening of its market position in the hospitality industry and trading in 2015. The cash-and-carry segment will also continue its positive development. The persisting trend towards high-quality foods and modernization of the site in Frankfurt am Main will set new courses and lift sales slightly over those of 2014. The multichannel strategy will be accorded extra signifi-cance with the expansion of the German online product.

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2013

2014

Beer and Nonalcoholic Beverages Division

121euros in investments

million


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Business Divisions

radeberger-gruppe.de The Beer and Nonalcoholic Beverages Division comprises the Radeberger Group with 14 brewing locations and two sites for production of nonalcoholic beverages in Germany. It is Germany’s biggest private brewery group and, besides the Radeberger Pilsner from which it takes its name, includes numer-ous beer brands like Jever, Clausthaler, Schöfferhofer Weizen, Allgäuer Büble Bier, Ur-Krostitzer, Stuttgarter Hofbräu, Berliner Pilsner and Freiberger. In add-ition come the mineral water brand Original Selters and the nonalcoholic refreshing drink Bionade and refreshing tea Ti. Apart from Germany, the Rade-berger Group’s products are marketed in more than 70 countries in all import-ant distribution channels. International beers such as Guinness, for example, are marketed in Germany exclusively by the Radeberger Group.

Procurement The final step in centralizing the procurement function in Central Purchasing in Frankfurt am Main was taken in the reporting year. This enabled the takeover of add-itional procurement activities, such as the purchasing of agency services in the area of marketing or the procurement of raw materials for the nonalcoholic beverages.

Production and Logistics The 2014 financial year was used for various optimization programs and certifications in production. Ahead of the takeover of the Pepsi concessions in January 2015, a new pro-duction line for nonalcoholic beverages was built in Löhnberg (Selters). In addition, the existing kegging line was replaced, a new bag-in-box filling line was built and the exist-ing PET returnables bottling line was overhauled. Within the context of the increasing focus on food safety, the breweries in Berlin and Frankfurt am Main successfully sub-jected themselves to first-time certification under ISO 220000 / FSSC. As of September 1, 2014, Getränke Essmann in Potsdam put a new logistics service center into operation.

Marketing and Sales The Radeberger Group markets its products worldwide via the wholesale, retail and catering trades. The sales activities with the catering trade were optimized and a new financing strategy was implemented during the reporting year. Besides the reduction in complexity in the processes, the changes focused on efficiency improvement. The quality management in the catering segment was further strengthened by expanding the training offered both for our own field sales team and for our customers. One key area of quality management is customer-visit management for our catering custom-ers. Uniform rules for the capture and processing of information were established here in 2014.

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

40

The Radeberger Group’s party and event business, which supports around 10,000 events every year, has been managed nationally since the beginning of 2014. Besides har-monizing processes and exploiting synergies across sites, these programs are associated with cost savings. In addition, the first 49 automated product advisors were installed to support sales in the branches of Getränke Hoffmann.

Research and Development, New Products The new Bionade variety of Himbeer-Pflaume was successfully launched. The Zitrone- Bergamotte variety was developed to be ready for production, whereby particular value was attached to seamless traceability of the supply chain from the producer to Bionade. The Schöfferhofer Weizen Mix portfolio was expanded by the two flavor variants of Zitrone and Granatapfel+Guarana. The product range in Rostock was expanded by the very promising unfiltered Rostocker Zwickel naturtrüb.

A state-of-the-art filling line for reusable bottles went into operation in Frankfurt am Main, which has resulted in significant progress in terms of energy and water con-sumption. The same applies to the new beer mix line. With the rebuilding of the crate transport and bottle sorting line in Leipzig, key steps were taken to further optimize the site’s performance. A new bottle cleaning machine for returnable bottles has re-duced not only the energy and water consumption in Dortmund. At the same time, it enabled the implementation of a process design, which again represents an improve-ment in cleaning performance and sets new standards for the Group. At the location in Kempten, Allgäu, a tea filtration line was implemented and the production process for the refreshing tea Ti was further optimized.

Within the context of two student diploma theses, the CO2 footprint for the location in Freiberg was calculated (TU Freiberg) and a waste-free filtration and stabilization process for beer was developed in cooperation with BASF and the Technical University Munich-Weihenstephan.


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KEY DATA 2013 2014




Employees 5,689 5,757

In a challenging year, the Radeberger Group was able to keep its beverage volume sales stable at 13 million hectoliters and increase its sales revenue significantly by 4.7% to EUR 1,929 million. Positive special factors such as the soccer World Cup and the fine weather stimulated the business. The competition remained strong, but the brewing Group was able to stand its ground solidly thanks to its proven portfolio strategy.

Because of the continued focus on national and regional premium beers and the Group’s positioning close to the market, the Group succeeded in responding flexibly to changes in trends.

The market segment of brands distributed across Germany came under particular pressure last year due to changed price signals in the market. So it is all the more impressive that all national brands of the Radeberger Group, which means Radeberger Pilsner, Jever Pilsener and Schöfferhofer Weizen, were able to increase sales. The still- rising interest among consumers in special beers helped the segment of nation-ally marketed specialties of the brewery Group post a positive development. While Clausthaler Alkoholfrei grew in sales in the single-digit range, the international im-port beers put in a convincing performance, driven above all by the Guinness and Kilkenny brands, with high double-digit growth rates.

The regional premium brands of the Radeberger Group developed overproportionally again in 2014. People’s recollection of regional identity and their stronger identification with companies and products from their own region created strong tailwind for this segment – sales rose considerably. Drivers of this above-average performance were above all the beers from Saxony, Ur-Krostitzer and Freiberger, the Berlin premium brands Berliner Kindl and Berliner Pilsner, Dortmunder Kronen and Brinkhoff’s No. 1, as well as Stuttgarter Hofbräu and the Büble Bier from the Allgäu region.

The Radeberger Group also benefited from the demand for German beers abroad: it posted high double-digit growth in sales with exports. The export business to the United States developed especially well in 2014, where the Schöfferhofer brand, driven by the top- fermented Schöfferhofer Grapefruit, found many enthusiastic fans, which helped the brand put in an above-average performance.

13 millionhectoliters of beverage sales.

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The nonalcoholic beverages of the Radeberger Group made the most of the hot weather in 2014: they increased sales substantially and thus not only defended their market position, but also built on it. In a year marked by the extensive preparations for the co-operation started in January 2015 with PepsiCo Germany, all of the nonalcoholic brands of the Radeberger Group were able to assert their position: Original Selters grew significantly in sales again. Like last year, Bionade also posted pleasing volume sales and sales revenue growth in 2014, too. The refreshing tea Ti made significant progress in the second year following its market launch and underpinned that with a clear rise in sales.

Forecast Because of the demographic changes and changing consumer habits, one can assume that the German beer market will dwindle over the next few years by approximately –1.5% per annum. Furthermore, the promotional efforts of the trade will have a major influence on future developments.

The traditional regional brands will remain under pressure, while the Group expects volume sales and sales revenue gains with the national brands and the regional pre-mium brands. Further growth is foreseeable in the area of nonalcoholic beverages, which will be driven significantly by the marketing of Pepsi from January 1, 2015, onward.

2015Start of the cooperation with PepsiCo Germany.


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Business Divisions

million250.2bottles of sparkling wine, wine and spirits

2013

2014

Sparkling Wine, Wine and Spirits Division

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henkell-sektkellerei.de The Henkell & Co. Group forms the Sparkling Wine, Wine and Spirits Division. It is represented in Germany with three production and sales locations. In addition, there are production and sales locations in 19 other countries, pri-marily in Western and Eastern Europe. The portfolio includes both well-known sparkling wine brands like Fürst von Metternich, Henkell Trocken and Söhnlein Brillant, as well as spirits such as Wodka Gorbatschow. Johannisberger Wein-vertriebsgesellschaft also belongs to this division. In the foreign markets served (more than 100 countries), sparkling wine and spirits brands produced in the country concerned are marketed and / or exported to other countries in some cases. The division occupies market-leading positions with sparkling wine in Austria, Sweden, Hungary, Estonia, the Czech Republic, Slovakia, Ukraine and Canada, with prosecco in the United States, with vodka in Germany and with selected spirits in Poland and Slovakia, while it also leads the wine market in Hungary, the Czech Republic and Slovakia.

Procurement The focus in the reporting year was on optimizing the purchasing coordination across Europe. New vineyards were planted in both Hungary and the Czech Republic in order to boost the base wine supply from an own cultivation.

Production and Logistics The spirits plant in Bodenheim was prepared in 2014 for the inclusion of the Pott and Scharlachberg brands, which had previously been produced externally. The production in Hungary was in turn expanded for additional wine and sparkling wine capacities for the British and Romanian markets, while the production in Romania was moved to Poland (spirits) and Hungary (sparkling wine). The logistics for Germany, Benelux, Switzerland and Austria were centralized in Wiesbaden.

Marketing and Sales The Henkell & Co. Group markets its products worldwide via the wholesale, retail and catering channels. International brand teams were set up during the reporting year for Henkell and Mionetto and centralization of exports was begun.

Research and Development, New Products The Henkell & Co. Group is building on the innovative power of the brands and is working on their constant further development. It applies the highest quality require-ments for the materials used in the products. The year 2014 was marked by numerous new and further developments in the brand portfolio. At the forefront were the relaunch of the Henkell brand, from which it takes its name and the overhaul of the complete

http://www.henkell-sektkellerei.de/en


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Mionetto range. In addition, the Bohemia, Angelli and Hubert brands were given a re-vamped design. The newly developed Deinhard Secco, Deinhard Semi Secco, Deinhard Dolce and Deinhard Hugo created a new category in the German product offering and have all been provided with an innovative Plopp-stopper. Fürst von Metternich pre-sented its Chardonnay in a white-lacquered bottle. Also newly developed were the ready-to-drink products Hugo, Mionetto il V!OLA and Gorbatschow & Orange.

The Group companies operate the research and development activities under their own responsibility in order to support the centers of competence at the various production locations. The production of nonalcoholic products from de-alcoholized wines, for exam-ple, is based in Wiesbaden, while the center of competence for cream liqueurs is at home in Poland and that for German spirits in Bodenheim. Theme- and project-specific projects are carried out with universities, for example in the field of product develop-ment sensor technology.


KEY DATA 2013 2014

Sales revenue (in EUR million) 687 697

Adjusted sales revenue (in EUR million) 699 710



Despite negative exchange rate effects, the Henkell & Co. Group generated sales revenue of EUR 697 million in 2014 and was thus 1.5% above the previous year.

With 250.2 million bottles of sparkling wine, wine and spirits, the Group’s volume sales were 3.1% above the previous year (previous year: 242.6 million bottles). The Group’s major sparkling wine brands and much higher wine sales contributed to this. While the sparkling wine segment came in slightly up on the previous year (+ 0.6% to 159 million bottles), wine sales grew by 17.6% to 46.4 million bottles. The spirits fell slightly in the same period by 0.8% to 44.8 million bottles (previous year: 45.1 million bottles).

While the German market for classic sparkling wine has now declined for the second year in a row, the sparkling wine market extended by Secco and wine-based cocktails is developing positively. Hugo in particular as a ready-to-drink product has established itself firmly in the wine cocktail market. Internationally, the sparkling wine market is in principle developing positively too, although the reintroduction of sparkling wine tax is having perceptible negative effects on the Austrian market, as are the political developments in Ukraine. Contrary to the forecast, this resulted in dwindling spar-kling wine sales in Austria and Ukraine and curbed the generally positive sparkling- wine balance of the Henkell & Co. Group.

EUR 697 million in sales.

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Almost all core brands developed positively during the reporting period. Mionetto, for instance, was able to build on its sales by 4.2% to 16.4 million bottles. The positive development of the main product, Mionetto Prosecco DOC Treviso, contributed here in particular. The reintroduction of the sparkling wine tax in the neighboring Austrian market, though, provided for a decline of 8% to 14.3 million bottles at Henkell.

Fürst von Metternich, the leading German premium sparkling wine by far, again developed strongly after double-digit growth in the previous year. It was able to build on its market position with a rise of 7%. Fürst von Metternich Chardonnay generated positive resonance with a new white-lacquered bottle.

Söhnlein Brillant, the strongest sales brand in the Group’s portfolio, grew overpropor-tionally. The brand was able to add 12.3% with 21.5 million bottles. Also well received were above all Söhnlein Brillant Medium Dry and Söhnlein Brillant Mild.

While Törley sparkling wine continued its positive development in Hungary with a boost of 1.9% to 9.8 million bottles, Bohemia Sekt in the Czech Republic was able to grow by as much as 7.3% to 9.8 million bottles as well and Hubert Sekt in Slovakia by 7.0% to 6.5 million bottles. With that, all three brands remain market leaders in their home countries.

The core brands in the spirits segment developed differently, but overall almost at the previous year’s level. Wodka Gorbatschow, which has been the uncontested vodka market leader in Germany since the mid 1970s, was able to increase its sales by 11.1% to now 16.3 million 1/1 bottles and thus build on its market share again. Kuemmerling herbal liqueur remained at 3.3 million one-liter bottles.

The wine business of the Henkell & Co. Group was especially pleasing in 2014. While the Group’s German vineyards, Schloss Johannisberg and the G.H. von Mumm’sche Weingut, were limited in their volume sales by the poor harvest, the vineyards and brands in Hungary and the Czech Republic all developed positively. On top of all this comes the company acquired in 2013, Copestick Murray, which markets the brands of the Henkell & Co. Group in the United Kingdom. Additionally, it was able to very success-fully build up sales of its own wine brand, I heart, to an output of over 4 million bottles.

Despite sometimes adverse conditions, the Group was able to close the financial year by all means satisfactorily.

12.3%rise in volume sales.


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Forecast The Henkell & Co. Group will continue down its path of concentrating on the core sparkling wine brands Fürst von Metternich, Henkell, Mionetto and Söhnlein Brillant, on strong national brands in the spirits business and the development of the success-ful brands from Hungary, the Czech Republic and Slovakia in the sparkling wine and wine market in 2015. Its stated goal is to continue expanding, whereby the develop-ments in Ukraine and the ramifications of the introduction of sparkling wine tax in Austria will impact its companies there. We nonetheless expect a moderate sales revenue increase against the background of the now completely revamped portfolio and the new TV communication for Henkell, Mionetto and Bohemia.

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2013

2014

Shipping Division

million348euros in investments


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hamburgsud.com The Hamburg Süd Group represents the Shipping Division. As a transport and logistics company operating internationally, it counts among the world’s twelve biggest container shipping lines measured against the capacities of the ships operated (537,000 TEU as of December 2014). With more than 160 ships – from container ships and bulk carriers up to product tankers – the Hamburg Süd Group is one of the most important providers of global shipping and individual logistics solutions. It is represented with its own offices in more than 30 countries and also works together with external agencies.

The core business of the Hamburg Süd Group is container line shipping, including all up- and downstream logistics services with Hamburg Süd as the German carrier and Aliança as the Brazilian shipping line. In addition, the Group operates under the names of Rudolf A. Oetker (RAO), Furness Withy Chartering, Furness Withy Australia and Aliança Bulk (Aliabulk) in the bulk commodity and product tanker trade and with Hamburg Süd Reiseagentur as a specialist service provider, among other things for business travel and cruises.

Starting from the classic north–south trades, Hamburg Süd Container Shipping has developed to become a provider of logistics services operating worldwide in the following trade lanes:

Europe–South America (east and west coast)Europe–Caribbean / Central America Europe–North America (east and west coast)Europa–Australia / New Zealand Brazilian cabotage / Mercosur / Conosur (east and west coast of South America)Inter-America (east and west coast of North and South America / US gulf, Mexico, Caribbean)Asia–South America (east and west coast)Asia–Europe (Northern Europe and Mediterranean)Asia–North America (east and west coast)Asia–India / PakistanAsia–Australia / New Zealand Australia / New Zealand–North America (east and west coast)Northern Europe–Mediterranean Northern Europe–India / Pakistan

More than

160 ships.

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

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Procurement New processes have been introduced in purchasing and ship operations in the Hamburg Süd Group to leverage optimization potential. Newly created organizational structures at the head office and in the regions are supporting this process.

LogisticsIn ship operations in the Hamburg Süd Group, the priority is still on reducing the fuel consumption. With the basis having been laid in recent years through an extensive renewal of its own fleet, in the coming years it will be all about optimizing schedules and ship operations so that the ships can be operated at evenly low speed. That also in-cludes optimizing all processes of cargo handling and operation of the ships in the ports.

The logistics processes are aimed at avoiding empty movements of ships and containers and using suitable management instruments to take that into account in the freight acquisition. To the extent such empty runs are unavoidable due to structurally different cargo flows, the focus is on minimizing the costs associated with them.

Marketing and SalesThe Hamburg Süd Group operates more than 100 offices of its own worldwide where it handles the business from Customer Acquisition via Customer Service and controls all logistics, operational and administrative processes. Around 90% of the business volume in the line business is handled by the Group’s own employees, while the remain-ing 10% is handled by external agents. Within the context of sales and the subsequent service delivery, electronic data interchange with the customers of the Hamburg Süd Group is gaining ever greater significance (e-commerce). That applies to the sales process (schedule data, price enquiries, quoting, booking) just as much as to the com-munication surrounding the transport (exchange of documentation data, status monitoring / track and trace, customs clearance) up to invoicing and payment.

Research and Development Progress in ship technology and in ship operations has the primary purpose of reducing fuel consumption and emissions. With the new ships of the Cap San class, the Hamburg Süd Group deploys modern environmental technology, which is reflected in optimization of engine performance and hull shape, as well as in the use of common- rail systems and modern waste disposal systems. The innovations were mainly aimed at expanding the logistics network to be able to offer customers a still more extensive and intensive coverage, while at the same time driving the optimization of full and empty container transports.

Over

100own offices worldwide.


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The GLOBE Project, which has been running for several years now and serves to replace the operational and administrative IT applications, entered a decisive phase in 2014 with the rollout of the tariff and quoting module. This has created the conditions for more intensive e-commerce activities with customers and other business partners.

The application developed together with a classification society to gather and process data from the ship operations (GLEM Project) was able to be largely completed and rolled out during the reporting year. It forms the basis for extensive analyses in terms of the efficiency and costs of ship operations and cargo handling and for efficient environmental reporting (emissions), which is increasingly being asked for by customers and other stakeholders.


KEY DATA 2013 2014





Hamburg Süd stood its ground well in a difficult environment in 2014. Total revenue of the Shipping Division fell by 1.3% to EUR 5,186 million, while the transport volumes in the line business rose compared to the previous year by 2.3% to 3.375 million TEU (1 TEU = 1 standard 20-foot container).

The weak development of key economies in South America (Brazil, Argentina and Venezuela) resulted in cargo growth in the South America trades that, at approximately 1.7%, was well below most other global trades. A high bunker price and a weak US dollar impacted the developments in the first half of 2014. Both these trends reversed in the second half of the year.

A new direct service from the Caribbean to Europe (above all for chilled cargo) and from Europe back to the Caribbean via Mexico was introduced during the year. The co-operation with United Arab Shipping Company S.A.G. (UASC) on entry into the Asia–Europe and Asia–South America trades, in contrast, will have perceptible effects only in 2015.

The planned volume growth of 6% was not quite reached on account of the weakness of the South American economies (especially Brazil, Argentina and Venezuela). In addition, freight rates fell by around 6% because of serious overcapacities and the com-petitive pressure. In the line segment, the drop in revenue could only partially be

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made up for by capacity and cost adjustments. Above all due to weak raw-material imports in China, the expected recovery of the bulk commodity markets failed to materi-alize, so bulk shipping was unable to achieve the planned improvement.

Supplementary Report On March 27, 2015, Hamburg Süd took over the container liner activities and agency function of the shipping line Compañía Chilena de Navegación Interoceánica (CCNI) based in Valparaiso, Chile. With the integration of the CCNI line services, Hamburg Süd will strengthen its liner network from and to South America.

Based on a cooperation agreement between Hamburg Süd and United Arab Shipping Company S.A.G. (UASC) on exchange of slot capacities on both companies’ ship systems, Hamburg Süd began its step-by-step entry into the Asia–Europe and Asia–North America trades from December 2014 and January 2015 onward.

In February 2015, Hamburg Süd and CMA CGM announced that, in addition to the joint services already existing between Northern Europe and the west and east coasts of South America, they would work together on other routes. One example is the planned launch of a joint service from Asia through the Panama Canal to the east coast of the United States and then on to Europe and back, which should start in the second quarter of 2015.

Forecast For 2015, Hamburg Süd expects growth in the cargo volume in line shipping of more than 20%. Line sales should rise on a similar scale. In total, the shipping group ex-pects sales of over EUR 6,000 million. This rise is in part attributable to the acquisition (CCNI) and the cooperation with UASC. Given continuing overcapacity in nearly all segments, the revenue will stay under pressure throughout the industry in the middle term. The unsatisfactory earnings of most shipping companies will only improve if they can reduce their costs sustainably. This can be achieved by measures to reduce fuel consumption, exploit economies of scale, or further efficiency improvements in pro-cesses. Here, Hamburg Süd is on the right track and expects a better result for 2015 than in 2014, whereby the low bunker prices will bolster this. The persistently weak consti-tution of bulk shipping, which will almost certainly fail to post satisfactory also in the current year results, will have a negative impact here however.

20%cargo volume growth expected in line shipping for 2015.


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Business Divisions

2013

2014

Other Interests Division

500euros in sales

million

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budenheim.comoediv.deoetker-verlag.deoetkercollection.comroland-transport.de

The Other Interests Division comprises companies of the Oetker Group that operate in different industries. This includes the chemicals company Chemische Fabrik Budenheim KG, which manufactures its products at six locations. Furthermore, the Other Interests Division includes the Oetker Collection with its four owned hotels in the luxury class in Germany and France and the management of unique, externally owned hotels at various locations (France, Morocco, Seychelles, St. Barth). Dr. Oetker Verlag KG, OEDIV Oetker Daten- und Informationsverarbeitung KG, Handelsgesellschaft Sparrenberg mbH, Roland Transport KG and other companies round off this division and are based in Bielefeld.

Budenheim’s products comprise high-quality phosphates and special chemicals pro-duced individually for customers and marketed in more than 100 countries.

Hotel services of the highest quality are offered in the four owned hotels and the five externally owned hotels run by Oetker Hotel Management Company GmbH.

Dr. Oetker Verlag offers cookery and baking books in numerous variants both via book-shops and as e-books.

OEDIV operates data centers in Germany, where it offers SAP hosting and numerous other IT services. The concepts and architectures used meet the highest availability requirements of its customers and are continuously tested and kept at the latest state of technology by OEDIV.

The trading company Handelsgesellschaft Sparrenberg (HGS) bundles the conceptual procurement know-how in the Oetker Group and supports it and external customers in realizing new strategic perspectives.

Roland Transport offers its services in the three business segments of 4PL (fourth-party logistics), principal forwarder and added services.

Procurement Through standardization and harmonization of technical documentation in 2014, Budenheim was able to conduct tenders for the first time for procurement of technical services and thus generate potential savings. The rollout of a uniform enterprise resource planning (ERP) system created the basis for establishing standardized and global business processes.

9Masterpiece Hotels in the Oetker Collection.

http://www.budenheim.com/en/

http://www.oetker-verlag.de

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

http://oediv.de/?language=en

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


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As a technically and methodologically specialized information and procurement service provider, Handelsgesellschaft Sparrenberg (HGS) supports the purchasing managers of the Oetker Group companies, as well as umpteen companies outside the Group, in mostly internationally aligned activities in strategic purchasing. Based on that func-tion, it possesses many years of experience in analyzing and exploiting European pro-curement markets, in research, processing and interpretation of market and price data and in forecasting potential future developments. Through its participation in nu-merous tenders, HGS boasts strong market presence and know-how in terms of the potential that can be realized. Its market assessments and forecasts support the plan-ning and projection process. It delivers calculations for value analysis and material harmonization projects and, in doing so, delivers a contribution to cost savings, efficiency improvements and risk management in the procurement area.

Production and Logistics The initiative to optimize the transport packaging of its products was started at Budenheim during the reporting year. This initiative is aimed at sustainable prevention of damage during the transport from the production line to the customer in order to underline the premium quality of Budenheim products.

Marketing and Sales Budenheim sells its products both via direct marketing and via distributors. In line with the constant trend towards more customer proximity, the Asia sales region was re-organized during the reporting year and the responsibility for all of Asia was centralized at the sales location in Singapore. The market introduction of new products was im-proved in 2014 through the rollout of an integrated product launch process.

The hotels of the Oetker Collection, with their marketing activities and sales processes, are coordinated by the Oetker Hotel Management Company. This allows coordinated and efficient servicing of the market. As part of that, the partner network (for example with PR agencies) is being continuously expanded. In addition, the social media activ-ities were also further expanded during the reporting year.

In the fourth-party logistics area, Roland Transport KG works together with cus-tomers as a neutral consultant without a fleet to develop specific solutions in practically all logistics business processes.

Research and Development, New Products The Material and Process Technology department at Budenheim regularly researches current trends on an interdisciplinary basis with other departments. In all divisions in 2014, Budenheim was able to significantly increase the share in sales of innovative products in total revenue. The business division Performance Materials was able to success fully place a new, more environmentally friendly range of high-temperature

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lubricants on the market with a strongly reduced boron content. Its progress in product development for applications in electromobility was acclaimed with the Gold Award at the MATERIALICA Design & Technology fair.

The additive mixtures based on biological components of the ALTESA-NEO product line for the fish segment, which were offered for the first time in 2014, were well received by customers worldwide. The first sales with iron pyrophosphate with improved physical properties were achieved at the end of 2014.

The business division Material Ingredients successfully placed a new product for fire-fighting with aircraft. The innovation lies in a new, environmentally friendly and photosensitive coloring that dissolves automatically under the influence of light after spreading.

Budenheim’s Urban Mining project is about recovering phosphates from sewage sludge by environmentally friendly extraction with carbon dioxide. As a product, this creates a contaminate-free phosphate fertilizer with no health concerns for marketing. The fundamental research has now been completed and the three-year operation of a plant on a laboratory scale will be continued in 2015 with the construction and com-missioning of a pilot plant. This will be connected directly to the sewage plant in Mainz- Mombach and will treat part of the sewage sludge produced there. In this three-year project supported by the German environmental foundation, Deutsche Bundesstiftung Umwelt, the operating parameters will be adjusted in order to create the basis for con-struction of a plant on an industrial scale.

Based on the reaction mechanism of baking powder, an environmentally friendly foaming agent for silicones has been developed and is already being used in wound dressings, for seals for lamps in automotive engineering and in street lighting. The goal thereby is weight reduction and material savings with improved processing charac-teristics at the same time.


KEY DATA 2013 2014

Sales revenue (in EUR million) 483 500

Adjusted sales revenue (in EUR million) 483 500




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Given that their markets differ, the various companies of the Other Interests Divi-sion have also developed differently. Overall, the Division realized sales revenue of EUR 500 million in 2014.

Budenheim’s value orientation proved its worth in 2014. The company was unable to achieve the planned volume growth, but it did increase profits. Part of the relief in raw- material costs was passed on to customers. With prices declining slightly (–1%), sales fell by 1%.

Budenheim sold 3.1% less in its core business. With the changed product mix, the aver-age price rose on balance by 0.6%. The decline in sales in the core business amounted to 2.6%. On including the acid trading, which developed well, there was an overall rise of 1.6% in the volume. Sales reached EUR 259 million (–1%).

From a regional point of view, the expectations in North America were not realized. The business in Asia, however, developed very positively.

For the business division Food Ingredients, the year closed with lower volume sales versus the previous year and lower sales as a result. They thus remained clearly behind expectations. The reasons were different in the individual sales regions: in the United States, aggressively priced competitors led to volume losses. The economic difficulties in South America, with Brazil, Venezuela and Argentina, which are important coun-tries for Budenheim, hampered attainment of the sales targets. The crisis in Ukraine, the economic sanctions against Russia and the resulting weakness of the ruble resulted in serious declines in demand on the Russian market. Increasing global competitive activity also hampered business expansion in the main sales regions of Europe and North America. In contrast, the company was able to increase volume sales in Asia considerably.

The Performance Materials line was able to put its advantages in this application- oriented business division to the test again and win attractive new business. In the pharmaceuticals area, the focus was on improving its external image with the re-design of product information and its presence for the first time at the world’s biggest pharmaceutical trade fair, the CPhI in Paris.

The business division Material Ingredients put in a pleasing performance in 2014 with a strong increase in sales. That is attributable above all to substantial growth in volumes in the paints and coatings segments and in wildfire. Apart from that, changed focal points in the product portfolio have contributed to higher prices. As a result, the difficult market and demand situation in the plastics segment was more than com-pensated for. From a regional point of view, the newly acquired flame protection business in paints and coatings was able to be successfully consolidated in the Europe, Middle East and Africa (EMEA) region. At the same time, newly de veloped business in North America and Asia provided for perceptible growth.

EUR 500 million in sales.

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With a sales increase of 7.1% to EUR 157 million, the companies of the Oetker Collection can look back on a satisfactory year. In particular, the positive sales trends at the Hotel Le Bristol Paris and the Hotel du Cap-Eden-Roc in Antibes contributed to this.

Major capital expenditures were made at the Hotel Le Bristol and at Brenners Park- Hotel & Spa. At the Hotel Le Bristol, the focus was on extensive room renovations. At Brenners Park Hotel, the extensive rebuilding and renovation project over several years to redesign the Villa Stéphanie was completed in December 2014. As part of the ensemble of buildings at the Brenners Park Hotel, the Villa Stéphanie from now on will be home to the hotel’s new spa facility, as well as 15 new rooms and suites.

The Oetker Hotel Management Company took over the management of the Hotel Eden Rock – St Barths last year and signed a management contract for The Lanes borough Hotel in London. The latter will reopen in the summer of 2015 following extensive reno-vations. It is the ninth Masterpiece Hotel in the Oetker Collection portfolio.

Also due to expansion steps taken in the past, the number of accommodation sold rose significantly by 11.8% in year-to-year comparison.

Also last year, Dr. Oetker Verlag was unable to extricate itself from the situation in the classic German book market, which is under pressure and suffering under declining sales. Especially in the area of cookery and baking books, it is difficult to achieve acceptance among consumers for the marketing of electronic content. Despite many efforts, 2014 therefore ran below the previous year’s level for Dr. Oetker Verlag.

The sales of OEDIV saw pleasing developments in 2014. The trend towards outsourcing internal IT infrastructures continued last year and OEDIV, as a medium-sized pro-vider with data centers operated only in Germany, is enjoying high trust, especially in the area of data protection. The company was able to slightly exceed the sales planning both with the existing customers and by acquiring new customers. Besides the hosting and operation of SAP systems, the demand for operation of Microsoft-based systems and applications continued growing in 2014. OEDIV continued expanding its service portfolio in this area last year as well.


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Business Divisions

Handelsgesellschaft Sparrenberg mbH was able to convince its customers within and outside the Oetker Group and increase sales planning by 3.5% with its information and procurement services and consulting on strategic procurement management and market and price trends in international commodity and packaging markets, as well as with framework agreements, load securing and energy.

Roland Transport KG was able to increase its sales by 10.1% in 2014 compared to the previous year. Despite economic factors on the customer side, which have impli cations for the transports planned by Roland, it was able to revive the business significantly by new acquisitions in the 4PL area.

Forecast For 2015, the chemicals industry in Germany is expecting only moderate growth. Budenheim intends to buck that trend and has again planned much higher and in some cases even ambitious, growth targets for all three divisions.

After a considerable sales increase over the last five years, the Oetker Collection expects sales for 2015 at about the previous year’s level. The Brenners Park-Hotel will benefit from the opening of the Villa Stéphanie, while the increasing local com petitive pressure will make itself felt in the Paris hotels. The sales of the Oetker Hotel Management Company will grow strongly because of the management contracts recently concluded.

Because of the increasing significance of information technology in everyday business life, together with increasing complexity and a growing need for security, OEDIV looks to the future optimistically. A further slight growth in the customer base and the associated sales increases are expected for 2015.

10.1%sales increase.

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Banking Division

2013

2014

259euros in equity on the balance sheet

million


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Business Divisions

bankhaus-lampe.de With its subsidiaries, Bankhaus Lampe KG forms the Banking Division and ranks among the leading independent private banks managed by personally liable stockholders in Germany. In its business activities, the bank focuses on advising and mentoring the three target customer groups of wealthy private customers, companies and institutional investors. It is accounted for at equity in the consolidated financial statements. For more information, please refer to the Bank’s separate annual report.

https://www.bankhaus-lampe.de/en

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Assets and Financial Position

The balance sheet total has risen by EUR 729 million to EUR 8,499 million. The reasons behind this were, in particular, investments higher than the depreciations with an operationally related increase in current assets, while the first-time consolidation and deconsolidation effects amount to EUR + 135 million. In addition, there was a deliberate buildup of liquidity in order to be able to realize the strategic opportunities developed over the course of 2014.

The mainstays of the balance sheet structure are as follows:

BALANCE SHEET STRUCTUREIn EUR million 2012 2013 2014

Balance sheet total 7,695 7,770 8,499

Fixed assets 4,185 4,375 4,634

Inventories, receivables, deferred charges and prepaid expenses 2,485 2,414 2,545

Liquidity 1,025 981 1,320

Equity 2,847 3,105 3,484

Provisions 1,457 1,446 1,526

Liabilities incl. deferred income, deferred tax liabilities 3,391 3,219 3,489

In fixed assets, the acquisition and production costs were increased by EUR 13 million on January 1, 2014, due to differences from currency translation. In addition, this amount rose by EUR 7 million on account of changes in the scope of consolidation.

The intangible assets rose by EUR 32 million versus the previous year to EUR 165 million. Goodwill makes up EUR 55 million of this. The increase versus the previous year is the result above all of first-time consolidations in the Food Division (Delite B.V., McCain pizza business).

The increase in tangible fixed assets by EUR 182 million to EUR 3,904 million can be almost completely explained by the investments, which were EUR 181 million higher than the depreciations (without first-time consolidations). The additions to fixed assets and intangible assets totaled EUR 783 million. First-time consolidations accounted for EUR 116 million of this. Current investments amount to EUR 667 million; they are EUR 110 million below the comparative value of the previous year of EUR 777 million. The depreciations on intangibles and tangible fixed assets amount to EUR 530 million.

The investments in associated companies run to EUR 413 million, which represents an increase by EUR 39 million. This covers, above all, Bankhaus Lampe KG, Düsseldorf (Germany), S.A. Damm (Barcelona, Spain), Emaphos euro Maroc Phospore S.A. (Casablanca, Morocco) and Itapoá Terminais Portuários S.A. (Itapoá, Brazil).


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Assets and Financial Position


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Inventories have fallen versus last year by EUR 23 million to EUR 775 million. Accounts receivable (trade) have risen by EUR 70 million to EUR 1,215 million, mainly in the Food and Shipping Divisions. An amount of EUR 3 million of this has a re sidual term to maturity of more than one year.

The accounts receivable from subsidiaries and affiliated companies, in total EUR 3 mil-lion (as last year), can be set against liabilities of EUR 80 million (previous year: EUR 69 million). These items relate to German and foreign com panies not included in the scope of consolidation.

The other current assets of EUR 495 million (previous year: EUR 424 million) include short-term lending and claims not set off against liability items from the reinsurance of pension obligations with Condor Versicherungsgruppe, tax refund entitlements, receivables relating to empty packaging and the like. They also include the assets of Atlantic Forfaitierungs AG, which essentially relate to short-term financial investments. An amount of EUR 105 million has a residual term to maturity of more than one year.

The cash and cash equivalents of EUR 1,320 million are made up of amounts due from Bankhaus Lampe KG and the item “Cash in hand, deposits with nonaffiliated banks and checks.”

The fixed capital of Dr. August Oetker KG remained unchanged at EUR 450 million. The Group’s reserves rose by EUR 372 million. The change in the difference in equity from currency translation of EUR 8 million is essentially the result of the shift in the euro against the national currencies in the United States, Brazil, Hungary, the United Kingdom, Canada, Poland, India, Russia, Venezuela, Ukraine and Turkey. The provi-sions for pensions amount to EUR 602 million after EUR 599 million last year. While portfolio changes had a negative effect of EUR – 47 million, interest and exchange rate effects had a positive effect of EUR 51 million. As in the past, a part of the staff pension arrangements is covered by direct insurance policies above all with Condor Lebens versicherungs-AG. The insurance premiums needed for that are largely paid in the form of a lump sum. Policy loans are not used.

The provisions for taxes of EUR 22 million include only effective taxes. The other pro-visions include amounts for outstanding invoices, deposit credit balances from the Beer Division, sales reductions especially in the Food Division and in the personnel area; all apparent risks are covered.

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Total liabilities amount to EUR 3,477 million structured by residual terms, which can be found in the Notes.

The miscellaneous other liabilities (included in the total amount) of EUR 1,561 million include, among other things, the payments received for pending voyages in the Shipping Division and the stockholders’ accounts within Dr. August Oetker KG.

The deferred tax liabilities of EUR 3 million result only from consolidation measures, as an asset surplus exists at the level of the individual financial statements essentially as the result of different valuation approaches in the provisions for pensions. To that extent, the company avails itself of the option under Section 274, Para. 1, Sent. 2, of the German Commercial Code (HGB).

The Oetker Group’s financial position is marked by internal financing, largely retained earnings and long-term bank loans. Net financial assets fell from EUR 214 million in the previous year to EUR 147 million at the end of 2014, partly because of investments again exceeding the depreciations and spending for acquisitions.

Equity grew when compared to the previous year by EUR 379 million to EUR 3,484 mil-lion. The equity ratio rose to 41.0% (previous year: 40.0%) of the balance sheet total. The bank liabilities are mainly based on loans with terms of ten years, which are serviced according to plan. Long-term loans of EUR 221 million were repaid during the report-ing year and new loans of EUR 585 million were taken out.

Leasing liabilities exist (on a manageable scale) only in the area of financing containers for Hamburg Süd. Other leasing agreements and other off-balance-sheet financial instru-ments are of only secondary significance for us.

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


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Performance Indicators


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Performance IndicatorsFinancial and Nonfinancial Performance Indicators

Financial Performance Indicators Pursuant to Section 13, Para. 3, Sent. 2, of the Disclosure Act, no information is given on financial performance indicators.

Nonfinancial Performance Indicators This section includes further information on the Oetker Group’s nonfinancial perform-ance indicators. The performance and thus also the future capability of the individual divisions is mapped thereby not only in the form of economic indicators, but is also re-flected in the Group’s nonfinancial performance indicators, which play a key role in the further successful development of the companies.

As one of the major German family businesses, the Oetker Group is conscious of its responsibility vis-à-vis its stakeholder groups. The family exerts considerable influence on the Group’s strategy and business policy and has established this with the words “The interests of the company have priority over those of the family” as the principle of its entrepreneurial commitment. This statement forms the basis for responsible management of the company across generations. It puts the Oetker Group into a posi-tion to grow sustainably and always place the quality and thus also the safety, of its products and services at the forefront.

Within the framework set across the Group, the individual companies of the divisions develop efficient solutions decentrally in the fields of compliance, research and develop-ment, supply chain, human resources, environmental protection and social responsi-bility. The key information on selected aspects and a number of the measures taken in this respect by the Group companies in 2014 are set out below.

Further information on the fields mentioned can be found in the publications and web-sites of the Group companies.

The issue of Compliance has gained in significance on account of the strong inter-national growth of the Oetker Group and the increasing legal requirements. For that reason, a Compliance Management System has been developed for the entire Oetker Group and a compliance organization has been set up. Its Compliance Officers are avail-able as neutral and independent contacts for all issues surrounding compliance.

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Personnel

The headcount of the companies in the consolidated group of the Oetker Group rose significantly in 2014. As of the balance sheet date, there were 28,354 people employed worldwide (previous year: 26,907). That was 5.4% more than in the previous year. The organic personnel growth amounted to 5.3%.

The Food Division increased its headcount from 12,272 to 12,790, which, besides the ac-quisitions, is also reflected in increases in the German plants. In the Beer and Non-alcoholic Beverages Division, the headcount rose from 5,689 to 5,757. The Sparkling Wine, Wine and Spirits Division recorded a slight fall in personnel from 2,028 to 2,007 employees. The headcount in the Shipping Division increased considerably from 4,491 to 5,360. This rise is largely based on the fact that people previously classified as external crew members are now counted as the division’s own personnel. The head-count in the Other Interests Division grew from 2,427 to 2,440 employees.

Personnel expenses within the Oetker Group in 2014 stood at EUR 1,322 million (previ-ous year: EUR 1,273 million).

Personnel Strategy of the Oetker Group The Oetker Group’s success is based on its qualified and committed employees world-wide. The Group’s personnel strategy is aimed at supporting the strategic develop-ment and international growth to the best possible extent and promoting the close co-operation between the Group companies. It builds on shared principles of modern, international human resources management and forms the basis for group-wide un-derstanding of values, the support for knowledge transfer across the Group and the creation of conditions to inspire its employees for flexible deployment within the Group.

To counter the challenges of demographic change and increasing international com-petition, the family business provides for attractive working conditions at all levels and creates secure jobs. In addition, it offers interesting career prospects in an interna-tionally positioned group of companies. The personnel strategy of the Oetker Group was developed further in 2013, which set the course for still closer cooperation in the human resources area and the first measures building on that were realized in the 2014 reporting year.

Promoting Young Talents In times of an increasing skills shortage, the competition on the personnel market is growing steadily, so talents such as committed career entrants need to be recruited for the companies at an early stage. Within the context of challenging work experience placements and a jointly developed “Stay in Touch” program for former interns and apprentices, the Group nurtures close contacts with potential new employees. The poten-tial future managers of the Group companies, who have previously proven themselves through above-average performance during their deployments, are given the opportunity twice a year to meet at the “Stay in Touch” events. The goal is to get to know the Group companies better, stay in contact, get information about career opportunities within


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the Oetker Group and build on their own skills with the support of a series of semi-nars. The meetings last year took place at Henkell & Co. Sektkellerei KG in Wiesbaden and at Martin Braun KG in Hanover.

In the vocational education area, the Oetker Group creates the basis for a promising career through good entry conditions, intensive orientation phases and a wide range of qualification programs. Decisive thereby is extensive and varied training for young people. A total of 861 apprentices were employed in the Oetker Group last year (previous year: 755).

To be even more attractive to potential applicants, Dr. Oetker GmbH invested in its target- group-specific international careers website in 2014 within the context of Employer Branding. The employer positioning of Dr. Oetker reads: “Shaping the future with quality.”

The Group companies, such as Martin Braun, work together with universities and tech-nical colleges to target specific talents.

The FrischeParadies Group has been continuously increasing its apprenticeship rates in recent years. In 2014, these young talents were able to take over responsibility for a day at the branch in Essen and put their commitment and team skills to the test in the store’s various sales departments.

The Radeberger Group overhauled its training concept during the reporting year and, among other things, increased the variety of the apprenticeship trades and dual courses offered. The apprentices of all sites traditionally count among the best, which was the case in 2014 as well.

With the new position “Trainer Chemical Worker”, Budenheim is in a position to signifi-cantly increase the number of apprentices in this area.

As part of the celebrations surrounding the 800th anniversary of the City of Bielefeld, a major event took place on February 22, 2014, in the Dr. Oetker Welt in Bielefeld, at which apprentices of various companies of the Oetker Group, among others, gave visitors information on the various divisions.

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Developing Employees A further focal point of the strategy is on supporting and guiding employees. The entrepreneurial actions of the Oetker Group have long been marked by a high degree of responsibility for its employees. To promote their competencies and skills, the com-panies invest continuously in the personal and technical development of their employees. The Group-wide Succession and Talent Management program is also intended to con-tribute in the future to opening up even more varied development opportunities and career prospects internationally. Through these measures, the company ensures that key positions within the Oetker Group are primarily filled internally with the most suit-able employees. That is not only motivation for the employees, but also reflects the long-term focus of the human resources work.

The further development of international personnel work projects took on particular significance in the human resources work of Dr. Oetker GmbH in 2014: recruiting and employee retention, personnel development, talent management, compensation systems and HR processes.

Special attention is also attached to international career opportunities, so the inter-nationalization of personnel activities and networking among the national companies is being driven forward.

The succession planning practiced for several years now also enables specific develop-ment of talents, especially for key positions. Besides the international Trainee Program, which has been a firm element of Dr. Oekter’s personnel strategy for over 30 years, there are offers for other programs to prepare employees for management tasks.

As part of the annual succession planning at the Martin Braun Group, a personnel development process is carried out in which all employees with potential for more senior positions are collected. A personnel manual was created and distributed to managers in the spring of 2014. It establishes and governs uniform rules on selected personnel issues in the Martin Braun Group.

The Radeberger Group intensified its training and development programs with a broadly faceted package of measures, especially in the area of sales. Against that background, a group of regional managers began their training at the beginning of 2014 as “Beer Ambassadors” at the Deutsche Wein- und Sommelierschule in Koblenz, which they successfully completed with a Chamber of Commerce certification.

At Hamburg Süd, the focus in 2014 was on the international personnel exchange programs. These extend from training programs abroad and short- and medium-term secondments up to long-term assignments of five and more years.


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Motivating and Retaining Employees The satisfaction of employees and their identification with the individual companies of the Oetker Group are major factors for their commitment in their positions, as well as their bonding with the Oetker Group. To continuously improve working conditions, many sites run employee surveys at regular intervals, as in 2014 at Martin Braun in Hanover for example and the German locations of Henkell & Co. Group. A concept was developed at Budenheim in 2014 for employees to appraise their managers and its implementation has already begun. The goal is to strengthen the notion of leadership, allow managers to continue growing and to promote open communication.

A corporate culture in which a climate of trust prevails is the key to open and respectful cooperation between employees and managers.

Work–life balance is a key issue for the Oetker Group, because the companies are of the conviction that employees can best unfurl their skills if job and family life are in harmony. The Group companies promote and form working-time models that suit both the employee and the company. These are intended to take various life phases into account and thus support the work–life balance. To that end, the various sites have im-plemented different measures such as child care programs during school holidays or alliances with family counseling organizations.

Balanced age structures and employment longevity are particular features of the Oetker Group and proof of the strong bond between the workforce and the Group companies. The diversity of the employees and their different personal traits, talents and skills boost the creativity and innovative power of the Group’s international activities.

Promoting Health The demographic trends and longer working lives will lead to substantial changes in many industrial nations. Securing the ability of the employees to perform in the long term is also a key issue for the Oetker Group, so promoting an appropriate working en-vironment and health management is self-evident.

The companies of the Group have realized numerous models ranging from preven-tion and early detection up to very diverse measures for exercise, healthy nutrition and relaxation.

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For instance, the company health management regime established a number of years ago under the name of PowerParadies in the FrischeParadies Group was also expanded in 2014 and is intensively used by employees of the various sites.

At Hamburg Süd, the annual Health Days and regular company-facilitated sports activi-ties at the headquarters in Hamburg, among others, have become firm health compo-nents. The ships’ crews in the shipping line also find optimum health conditions. The ships are equipped with, among other things, fitness rooms and thus offer a sporting balance to the everyday work on the high seas.

Occupational safety is also taking on a high priority at the Group companies. Occupation-al safety measures are constantly reviewed and developed further to offer employees safe and ergonomically optimized workplaces. Innovative employee suggestions for fur-ther improvement are promoted by the Group companies, for example at Dr. Oetker GmbH, the Henkell & Co. Group and Budenheim.


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Protecting the environment has special significance in the Oetker Group and is firmly integrated into the corporate governance. High environmental standards have already been achieved in this manner. Irrespective of that, the Group still pursues the goal of con tinuously reducing our environmental impact. Also in 2014, the companies be-longing to the Oetker Group realized extensive measures for further improvement. The commitment of the employees is to be thanked for this progress. They have regularly reviewed attainment of the ambitious targets and taken over responsibility for environ-mental protection under their own initiative.

Lowering energy consumption and the reduction in emissions as a result remains a focal point in activities on environmental and climate protection.

The companies under the overall management of Dr. Oetker GmbH and the companies of the Martin Braun Group further extended their diverse environmental protection activities in the 2014 reporting year. This continuous improvement was again confirmed by independent surveyors with the recertification of the integrated environmental management system under the internationally valid standard DIN EN ISO 14001. In addition, the German plants of Dr. Oetker GmbH were again certified under DIN EN ISO 50001 (Energy Management). The Martin Braun Group was certified for the first time. Numerous efficiency-enhancing measures and projects were implemented with the system in the plants.

Likewise, the quality assurance system and environmental protection within the FrischeParadies Group was regularly documented by appropriate certifications and enhanced by the Group’s own standards.

As the production, bottling and transport of beer are resource-intensive processes, the Radeberger Group continuously undertakes efforts aimed at minimizing the con-sumption of energy and water and the production of wastewater, waste, dust and noise emissions in the production process based on the latest state of technology.

The brewing Group meanwhile operates six combined heat and power plants with a high efficiency level of up to 90%. For many years now, the Radeberger Group has been certified within the context of matrix certification under the DIN EN ISO standards 9001 (quality) and 14001 (environment). The targets set for the environmental area focus above all on achieving energy savings in the areas of heat, electricity and water. The first-time certification of the pilot plant in Berlin under the new energy standard DIN EN ISO 50001 in 2013 was followed in 2014 at ten further locations of the Radeberger Group. The results of the first-time certification at these locations were very positive throughout and the certificate was issued to the entire Radeberger Group without a single reservation.

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The Henkell & Co. Group is certified on a site-specific basis under the standards of DIN EN ISO 9001, DIN EN ISO 14001, DIN EN ISO 50001, OHSAS 18001, IFS6, BRC and, in addition, the Wiesbaden site is certified organic. The relevant standards are combined in an integrated management system for more efficient implementation.

In the Henkell & Co. Group, environmental protection is standard practice at all sites. Alternative energy generation using geothermal, photovoltaic and combined heat and power plants, the use of low-pressure steam, energy recovery and reduction of carbon dioxide emissions have been a firm element of the environmental policy of Henkell & Co. for many years now. All consumption of energy and natural resources is subject to permanent monitoring and constant optimization under the auspices of the energy team together with the environmental and energy management officers. The goals and results of the environmental measures of Henkell & Co. are regularly published in its environmental reports. In addition, Henkell & Co. in Wiesbaden-Biebrich takes part in the Eco-Profit Program of the City of Wiesbaden and has won awards there several times.

Higher energy efficiency and new technologies are appropriate instruments for CO2 reduction at Hamburg Süd. Last year, Hamburg Süd already achieved the ambitious goal it set itself of reducing the specific CO2 emissions per unit of transport (TEU/km)by 26% by 2020 (base year 2009) through logistics, organizational and technical measures on its ships. The goal for 2020 has now been raised to 45%. One very success-ful measure in this respect was the development of the emission manager GLEM (Germanischer Lloyd EmissionManager), which was installed on the ships in order to analyze emissions and consumption uniformly and then to establish efficiency mea-sures. GLEM was developed together with the classification society Germanischer Lloyd (now DNV GL) and deployed by Hamburg Süd as the first shipping line in the tough conditions of line shipping.

On the refrigerated containers in the fleet, the energy consumption should be reduced by 15% by 2015 and in the case of new containers by 20% (base year 2010). Here, Hamburg Süd is on the right track and it is already becoming clear that the energy con-sumption of new containers, for example, will be reduced by 2015 by more than 20%. A further environmental goal is the use of more than 80% bamboo flooring or other alternative materials in new dry containers in the period from 2012 to 2015. The back-ground to this is con servation of tropical forests by promoting biodiversity and the cli-mate indirectly. Here, too, it is becoming clear that Hamburg Süd will exceed this target by 2015.

Besides the requirements of the DIN EN ISO 14001 and 50001 standards, Budenheim’s environmental policy also takes the Eco-Management and Audit Scheme of the Euro-pean Union (EMAS III) into account, as well as the guidelines of the “Responsible Care Program” of the German Chemical Industry Federation (VCI). For all processes and activities, the environmental aspects, such as emissions and raw-material and energy consumption, are systematically measured and their effects captured. Building on


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this, strategic and operational environmental targets have been being defined and imple-mented since 1996. One example of this is Budenheim’s extremely ambitious target to improve energy efficiency by 15% by 2020 and at the same time reduce CO2 emissions by 15% (base year 2010).

The hotels of the Oetker Collection also implemented various measures in 2014 to im-prove their environmental balance sheets. At the Hotel du Cap-Eden-Roc and Château St. Martin & Spa, these measures have already been performed since 2011 as part of the “Green-Factor-Program” and the associated targets and commitments. Other establish-ments are following the best practices implemented here. One focal point thereby is on precise capture, control and reduction of the consumption of water, energy and waste. Besides that, the hotels are working actively on increasing biodiversity, partly within the context of national initiatives. In addition, they support farmers who have dedicated themselves to organic cultivation of foodstuffs.

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Forecast

In the Group’s estimation the global economy will grow in 2015 by at least 3.0%, where-by Asia will in all probability be above average with 4.6% and Europe well below aver-age with 1.4% (in it Germany with 1.2%). Global trading is expected to grow by 4.3%.

The business development of the Oetker Group in 2015, too, will strongly depend on the developments in the economic framework, whereby raw-material prices are expected to remain largely stable for the consumer goods divisions with a bunker oil price sig-nificantly below the average for 2014. The foreign currencies important to the Oetker Group have been planned throughout at the level of the average for 2014.

Sales revenue will rise – above all due to acquisitions – and will be noticeably higher than EUR 12 billion for the first time in the company’s history.

Capital expenditures of just over EUR 800 million are expected for 2015. The focus at the production companies will be on new plants and extensions and expansion of the pro-duction capacities. Especially worthy of mention is the new research and development building at the Bielefeld location. At Hamburg Süd, which accounts for about half of the planned capital expenditures, the program to expand and renew the ship fleet and the stock of its own containers will be continued and capital expenditures will be made in the new building for the Hamburg Süd headquarters.

Because of the acquisitions, the net liquidity surplus will become (manageable) net financial debt.

The various acquisitions will also be significant for the forecast changes in headcounts. In the Food Division, the headcount will rise by more than 10%, above all because of the acquisitions in Mexico, Canada and the United States. In Shipping, there will also be a personnel buildup related to acquisitions. The Beer and Nonalcoholic Beverages Division expects a moderate increase in numbers of employees, while in the Sparkling Wine, Wine and Spirits Division the employment will remain about the same. In Chemicals, an increase is planned to strengthen the divisions and drive innovations.

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


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Forecast / Risks and Opportunities Report

Risks and Opportunities Report

The business activities of the Oetker Group are subject to permanent risks, but at the same time offer a large number of opportunities. The primary goal is to provide for a balance between opportunities and risks.

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

For the Oetker Group, exploiting market opportunities offers the possibility to realize growth with a sound earnings situation at the same time. For that reason, a firm eye is kept on all the trends in the industries relevant to the Group. Opportunities are con-sidered when formulating the plan and pursued as part of the periodic reporting. Regu-lar market and competitive analyses are carried out and the crucial success factors of the markets examined.

The Group companies are subject to different economic frameworks. In the three con-sumer goods divisions, consumption trends among consumers are particularly relevant. A diversified product portfolio and constant efforts in the development of new prod-ucts help the Group to take account of market and consumer needs, whereby the trend towards more quality awareness and increased demand for products from sustainable pro duction are included.

Expanding the Group’s market presence also offers strategic opportunities. This applies in particular to the markets in the emerging nations. With the help of strategic ac-quisitions the product portfolio can be expanded, the market position improved and growth boosted.

Operational Risks and Opportunities

Procurement Market Risks and Opportunities In the estimation of the Group’s management, the prices on the procurement markets will change only moderately in 2015. Many of the raw materials important to the consumer goods divisions have already been firmly contracted for the year in terms of their prices, so there are no risks here. Other risks in procurement are mitigated by scattering between different suppliers and other measures to secure volumes. For the fuels important to the Shipping Division, bunker oil and gas oil, the price develop-ments in recent months essentially produce opportunities to procure them cheaper than in 2014.

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Environmental and Industry Risks and Opportunities The consumption climate is of crucial significance for the consumer goods divisions. On top of that come crises like in Ukraine and Russia. In addition, state interventions also have major influence. There are risks for the divisions of the Group also from the persisting debt and financial crises in many countries. In addition, the increasingly intensive competition and continuing trade concentration and the advance of private labels also harbor risks. The Group companies counter these risks by continuously strengthening the brands and constantly developing new products. Apart from that, using different sales channels permits a balance between potentially structural migra-tion movements and in the demand patterns of the consumers.

For the Shipping Division, there are risks in particular from worsened macroeconomic trends with their consequences for developments in freight rates, especially in the line business. Given forthcoming delivery of new-build tonnage and the low scrapping rates of old ships, there is the risk that the market capacities will increase faster than the demand for transport services.

Functional Risks and Opportunities

Financial Risks and Opportunities The Oetker Group is subject to financial risks and opportunities in terms of liquidity, currencies and interest rates. Given the solid earnings structure of the Oetker Group, the long-term links to various banks and financing based on classic bank loans with largely ten-year terms, the liquidity and interest risk is regarded as extremely low. Curren-cy risks are mainly hedged with the help of forward exchange transactions, which limit potential losses. The prospect that the price of the US dollar versus the euro in 2015 will move below that of 2014 represents an opportunity given the dominance of the US dollar in shipping.

Legal and Regulatory Risks The Oetker Group has to observe a large number of legal and regulatory standards within the context of its business activities.

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


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Risks and Opportunities Report


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

Information Technology Risks Information technology risks are countered by extensive capital expenditures in the security architecture of the IT systems.

Personnel Risks and Opportunities The financial success of the Oetker Group is largely defined by the willingness to per-form and skills of its employees. Recruiting highly qualified specialists and managers and binding them to the Oetker Group in the long term, is for that reason enormously important. For that, the Group relies on targeted measures to develop employees and on incentive systems. A further focal point in the human resources work is on health management and counseling employees in different phases of their lives.

Environmental and Safety Risks The Oetker Group produces at numerous locations worldwide, which results in risks in the area of the environment, safety and health, as well as with regard to social standards. This can result in harm to people and goods. The measures described in terms of the legal and regulatory risks also counter those in the area of environmental and safety risks, as do certifications, counseling and training of employees. In addition, high technical standards in production provide effective protection.

Summary of the Risks and Opportunities Situation There are no risk concentrations worthy of mention either on the customer side or on the supplier side. Likewise, there are no apparent risks that may put the Group’s existence at risk with regard to the countries in which the Oetker Group operates.

Also from today’s perspective, there are no risks apparent that might result in any impact on the long-term existence of the Oetker Group. In addition, a higher risk cover-age volume has been created in past years via a sustainable increase of the equity ratio, improvement in strategic positioning and improved operating results, with which from today’s perspective the risk drivers in the Oetker Group’s business can be managed even better.


79


02


Con

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80

Dr. August Oetker KG

Consolidated Balance Sheet

ASSETSIn EUR ’000 2013 2014

FIXED ASSETS

Intangibles

Acquired concessions, trademarks and similar rights and assets as well as licenses to such rights and assets 110,449 108,414

Goodwill 22,352 55,426

Advance payments 632 1,310

133,433 165,150

Tangibles

Land, leasehold rights and buildings, including buildings on leasehold land 879,915 950,663

Machinery and equipment 380,337 428,322

Other equipment, fi xtures, furniture and offi ce equipment

Ships and containers 1,933,539 2,086,440

Miscellaneous other equipment, fi xtures, furniture and offi ce equipment 240,319 258,764

Advance payments and other fi xed assets under construction 287,511 179,816

3,721,621 3,904,005

Financial assets

Shares in subsidiaries 95 95

Investments in associated companies 374,105 413,438

Investments in other companies 59,259 69,684

Long-term receivables from affi liated companies 2,986 2,082

Fixed-assets securities 1,267 1,318

Other long-term receivables 80,375 77,295

Advance payments on fi nancial assets 2,053 895

520,140 564,807

4,375,194 4,633,962

CURRENT ASSETS

Inventories

Raw materials and supplies 266,408 237,424

Work in progress

Voyages in progress (shipping) 129,470 133,833

Other work in progress 100,592 92,727

Finished products and merchandise 296,913 307,055

Advance payments 4,522 4,119

797,905 775,158

Accounts receivable and other current assets

Accounts receivable (trade) 1,144,761 1,215,035

Accounts receivable from affi liated companies (apart from banks) 3,025 2,729

Other current assets 424,299 495,291

1,572,085 1,713,055

Funds

Accounts receivable from affi liated banks 165,121 174,237

Cash in hand, deposits with nonaffi liated banks and checks 815,517 1,145,690

980,638 1,319,927

3,350,628 3,808,140

DEFERRED CHARGES AND PREPAID EXPENSES 40,237 52,785

DEFERRED TAX ASSETS 47

POSITIVE DIFFERENCE FROM ASSET ALLOCATION 4,327 4,241

7,770,433 8,499,128


81

Consolidated Balance Sheet

LIABILITIESIn EUR ’000 2013 2014

EQUITY

Fixed capital 450,000 450,000

Reserves 2,790,768 3,162,309

Difference in equity due to currency conversion –141,939 –134,365

Minority interests in consolidated companies 6,125 6,327

3,104,954 3,484,271

DIFFERENCE DUE TO CAPITAL CONSOLIDATION 201 25

PROVISIONS

Provisions for pensions and similar obligations 598,830 601,881

Provisions for taxes 21,319 21,674

Other provisions 826,369 902,462

1,446,518 1,526,017

LIABILITIES

Due to banks

Due to banks outside the Oetker Group 754,802 1,162,553

Due to affi liated banks 11,968 9,975

Advance payments received 8,800 7,574

Accounts payable (trade) 510,278 527,013

Accounts payable to subsidiaries 1,065 879

Accounts payable to affi liated companies (apart from banks) 67,544 79,258

Miscellaneous liabilities

Taxes 117,468 115,490

Social security 12,749 13,539

Other 1,728,393 1,560,712

3,213,067 3,476,993

DEFERRED INCOME 5,693 9,068

DEFERRED TAX LIABILITIES 2,754

7,770,433 8,499,128

Contingent liabilities pursuant to Section 251 of the Commercial Code

Contingent liabilities in respect of guarantees 36,178 25,243

Contingent liabilities in respect of warranties 7,068 7,906

Bielefeld, April 14, 2015 Dr. August Oetker KGGeneral Partners

Dr. Ottmar GastRichard Oetker Dr. Albert Christmann

82


Consolidated Statement of Changesin Fixed Assets

CONSOLIDATED STATEMENT OF CHANGES IN FIXED ASSETSIn EUR ’000

Historical or production cost as of

January 1, 2014

Currency differences

and acquisition effects Additions Retirements Reclassifi cations Write-ups in 2014

Accumulated depreciation as of

December 31, 2014Book value as of

December 31, 2014Depreciation

in 2014Book value as of

December 31, 2013

Intangibles

Acquired concessions, trademarks and similar rights and assets as well as licenses to such rights and assets 800,467 1,913 45,349 –16,394 2,869 149 –725,939 108,414 –49,880 110,449

Goodwill 53,560 979 43,885 –4,971 –38,027 55,426 –11,679 22,352

Advance payments 632 996 –27 –291 1,310 632

854,659 2,892 90,230 –21,392 2,578 149 –763,966 165,150 –61,559 133,433

Tangibles

Land, leasehold rights and buildings, including buildings on leasehold land 1,848,318 12,029 60,055 –25,105 56,350 63 –1,001,047 950,663 –50,994 879,915

Machinery and equipment 1,835,367 2,149 114,654 –28,457 29,987 290 –1,525,668 428,322 –88,174 380,337

Ships and containers 3,621,848 –265 303,974 –216,317 139,100 –1,761,900 2,086,440 –251,774 1,933,539

Other equipment, fi xtures, furniture and offi ce equipment 802,149 3,645 91,196 –70,961 5,438 70 –572,773 258,764 –77,838 240,319

Advance payments and fi xed assets under construction 287,561 1,687 123,330 –1,099 –231,620 –43 179,816 287,511

8,395,243 19,245 693,209 –341,939 –745 423 –4,861,431 3,904,005 –468,780 3,721,621

Financial assets

Shares in subsidiaries 237 –95 –47 95 95

Investments in associated companies 382,804 180 39,631 –478 –8,699 413,438 374,105

Investments in other companies 66,523 106 10,328 –10 –7,263 69,684 59,259

Long-term receivables from affi liated companies 3,126 80 –1,054 –70 2,082 2,986

Fixed-asset securities 1,597 71 –21 –329 1,318 1,267

Other long-term receivables 108,061 –2 25,544 –33,828 167 614 –23,261 77,295 –2,931 80,375

Advance payments on fi nancial assets 2,053 895 –53 –2,000 895 2,053

564,401 284 76,549 –35,539 –1,833 614 –39,669 564,807 –2,931 520,140

TOTAL 9,814,303 22,421 859,988 –398,870 1,186 –5,665,066 4,633,962 –533,270 4,375,194


83

Consolidated Statement of Changes in Fixed Assets

CONSOLIDATED STATEMENT OF CHANGES IN FIXED ASSETSIn EUR ’000

Historical or production cost as of

January 1, 2014

Currency differences

and acquisition effects Additions Retirements Reclassifi cations Write-ups in 2014

Accumulated depreciation as of

December 31, 2014Book value as of

December 31, 2014Depreciation

in 2014Book value as of

December 31, 2013

Intangibles

Acquired concessions, trademarks and similar rights and assets as well as licenses to such rights and assets 800,467 1,913 45,349 –16,394 2,869 149 –725,939 108,414 –49,880 110,449

Goodwill 53,560 979 43,885 –4,971 –38,027 55,426 –11,679 22,352

Advance payments 632 996 –27 –291 1,310 632

854,659 2,892 90,230 –21,392 2,578 149 –763,966 165,150 –61,559 133,433

Tangibles

Land, leasehold rights and buildings, including buildings on leasehold land 1,848,318 12,029 60,055 –25,105 56,350 63 –1,001,047 950,663 –50,994 879,915

Machinery and equipment 1,835,367 2,149 114,654 –28,457 29,987 290 –1,525,668 428,322 –88,174 380,337

Ships and containers 3,621,848 –265 303,974 –216,317 139,100 –1,761,900 2,086,440 –251,774 1,933,539

Other equipment, fi xtures, furniture and offi ce equipment 802,149 3,645 91,196 –70,961 5,438 70 –572,773 258,764 –77,838 240,319

Advance payments and fi xed assets under construction 287,561 1,687 123,330 –1,099 –231,620 –43 179,816 287,511

8,395,243 19,245 693,209 –341,939 –745 423 –4,861,431 3,904,005 –468,780 3,721,621

Financial assets

Shares in subsidiaries 237 –95 –47 95 95

Investments in associated companies 382,804 180 39,631 –478 –8,699 413,438 374,105

Investments in other companies 66,523 106 10,328 –10 –7,263 69,684 59,259

Long-term receivables from affi liated companies 3,126 80 –1,054 –70 2,082 2,986

Fixed-asset securities 1,597 71 –21 –329 1,318 1,267

Other long-term receivables 108,061 –2 25,544 –33,828 167 614 –23,261 77,295 –2,931 80,375

Advance payments on fi nancial assets 2,053 895 –53 –2,000 895 2,053

564,401 284 76,549 –35,539 –1,833 614 –39,669 564,807 –2,931 520,140

TOTAL 9,814,303 22,421 859,988 –398,870 1,186 –5,665,066 4,633,962 –533,270 4,375,194

84


Group Notes

Application of the Statutory RequirementsDr. August Oetker KG in Bielefeld is required pursuant to Section 2 of the German Act on Disclosure of Company Financial Statements (below Disclosure Act) to compile and publish consolidated financial statements and a Group management report. These consolidated financial statements and Group management report, which were prepared in accordance with Section 13 of the Disclosure Act in conjunction with Sections 294 to 315 of the Ger-man Commercial Code (below Commercial Code), qualify for exemption within the meaning of Section 264, Para. 4 HGB, Section 264b HGB and Section 5, Para. 6 of the Disclosure Act for the companies identified in the list of shareholdings pursuant to Section 313 of the Commercial Code (published in the electronic Federal Gazette).

With the exception of information pursuant to Section 313, Para. 2 of the Commercial Code, this annual report complies with the regulations of Section 13 of the Disclosure Act in conjunction with Sections 294 to 315 of the Commercial Code.

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

A total of 398 companies (previous year: 392), of which 234 are German and 164 are foreign com panies, were consolidated. Sixteen companies (previous year: eleven) were not fully consolidated as they are not of material significance. The same applies to eleven companies (previous year: nine companies), with which an affiliation exists by virtue of participating interests, with regard to consolidation at equity.

In addition, six companies (previous year: five) were valued at equity.

The following significant changes occurred within the scope of consolidation:

In the Food Division, Fruchthof Handels-GmbH in Innsbruck (Austria), which was ac-quired on March 1, 2014 and Rebecchi Valtrebbia S.p.A. in Rivergaro (Italy), which was acquired on December 9, 2014, were consolidated for the first time. That also applies to D.O. Productions LLC and 11 Gregg Corporation (both in Wilmington, United States), which were founded in the wake of the acquisition of McCain Foods’ North American pizza business in August 2014.

In addition, after mergers or liquidation, several small companies of no significance from a corporate perspective are no longer consolidated.

All annual financial statements of the main companies included in the scope of consolidation were audited by external auditors in accordance with usual professional principles.


85

Group Notes

They were all provided with an unqualified audit opinion. In the case of the other companies included, the Group’s auditors were able to assure themselves that the annual financial statements comply with generally accepted accounting principles and the provisions of the Disclosure Act and the Commercial Code.

A listing of shareholdings is published in the electronic Federal Gazette as an element of the Group Notes.

Valuation MethodsThe reporting and valuation procedures of the subsidiaries included in the Consolidated Financial Statements are in accordance with uniform Group procedures. The financial statements of the companies valued based on the equity method were adjusted in part to the uniform Group guidelines.

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

Financial assets are valued at most at acquisition costs to the extent no lower values are called for. Permanent impairments in fixed assets are accounted for by unscheduled de-preciations.

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

86

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

Pension provisions are calculated based on actuarial forecasts. The pension provisions of the German companies are formed based on Section 6a of the Income Tax Act and take into account the current mortality tables of Dr. Klaus Heubeck, whereby the simplification rule of Section 253, Para. 2, Sent. 2, of the Commercial Code is applied and calculated with the interest rate forecast on October 31, 2014, by the German Central Bank for a residual maturity of 15 years as of December 31, 2014 (4.54%, previous year 4.90%); in addition, the provisions are based on an expected increase in wages and salaries of 3.1% (previous year: 3.0%) and an expected increase in pensions of 1.7% (previous year: 1.8%). The pen-sion obligations of the foreign companies are not of material importance.

Excess coverage within the meaning of Section 67, Para. 1, Sent. 2, of the Introductory Act to German Commercial Code (EGHGB) comprises pension provisions of EUR 3,000. Assets within the meaning of Section 246, Para. 2, Sent. 2, of the Commercial Code of EUR 23 million were set off against corresponding provisions for pension obligations.

Provisions are recognized at the settlement amount necessary based on prudent commer-cial judgement. The provisions for long-service anniversaries are also calculated based on the values stated for interest rates and wage and salary increases. Expected price increases of 1.7% are taken into account in the other provisions.

Liabilities are recognized at their settlement amount.

On account of an asset surplus in deferred taxes from individual financial statements, the deferred taxes are formed only as provided for by Section 306 of the Commercial Code. Deferred tax assets and liabilities from consolidation transactions are set off against one another. Tax rates specific to the individual companies are applied.

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

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


87

Group Notes

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

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

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

Other InformationLiabilities amount to EUR 3,477 million. Based on residual times to maturity, the individual items are structured as shown in Table 1.

TABLE 1: LIABILITIESIn EUR million

Payable within one year

(previous year)

Payable within one to 5 years

(previous year)

Payable after more than 5 years

(previous year)

Liabilities due to banks outside the Oetker Group 382 (388) 472 (337) 308 (30)

Liabilities due to affi liated banks 10 (12)

Advance payments received 8 (9)

Accounts payable (trade) 527 (510)

Accounts payable to subsidiaries 1 (1)

Accounts payable to affi liated companies (apart from banks) 79 (68)

Miscellaneous liabilities 672 (854) 692 (265) 326 (739)

Total 1,679 (1,842) 1,164 (602) 634 (769)

88

No securities requiring disclosure were granted for these liabilities.

Risks arising from claims with respect to contingent liabilities pursuant to Section 251 of the Commercial Code are not anticipated given the creditworthiness of the debtor concerned.

The other financial obligations pursuant to Section 314, Para. 1, No. 2a of the Commer-cial Code total EUR 3,789 million, of which EUR 1,028 million is for next year. This in-cludes the longer- term charter contracts typical to the shipping division with obligations of EUR 2,360 million and EUR 187 million for obligations under shipbuilding contracts. Off-balance-sheet transactions pursuant to Section 314, Para. 1, No. 2 of the Commercial Code – beyond the obligations set out above in the shipping division – were negligible in view of the financial position of the Oetker Group.

As companies operating internationally, Dr. August Oetker KG and its subsidiaries are ex-posed to interest rate, price and currency risks. To mitigate these risks, Dr. August Oetker KG, above all, has concluded contracts in derivative financial instruments (futures, swaps and options). The contracts held on the balance sheet date are shown in Table 2.

TABLE 2: DERIVATIVE FINANCIAL INSTRUMENTSIn EUR million

Transaction volume Fair value

Forward purchases and sales 89 –2

Options 14 –6

Reserves of EUR 1 million were formed for the forward transactions, swaps and options not included in the valuation units.

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

The workforce of the companies consolidated in the Oetker Group rose during the year by 5.4% to 28,354 employees (previous year: 26,907). The Food Division increased its head-count from 12,272 to 12,790. In the Beer and Nonalcoholic Beverages Division, the number of employees rose from 5,689 to 5,757. The Sparkling Wine, Wine and Spirits Division recorded a slight fall in personnel from 2,028 to 2,007 employees. The headcount in the Shipping Division rose from 4,491 to 5,360. This increase is essentially on account of the fact that persons previously classified as external seamen are now counted as own personnel. The workforce in the Other Interests Division grew from 2,427 to 2,440 employees.

The differential amount between the corresponding carrying amounts and the share of equity of all associated companies included amounts to EUR 2 million.


89

Group Notes

The total fee pursuant to Section 314, Para. 1, No. 9 of the Commercial Code amounts to EUR 2,254 thousand. Of this amount, EUR 1,789 thousand is attributable to annual account auditing services, EUR 41 thousand to other assurance services, EUR 143 thousand to tax consultancy services and EUR 281 thousand to miscellaneous services.

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

Statement of IncomeIn accordance with Section 13, Para. 3, Sent. 2, of the Disclosure Act, no statement of in-come will be published. The statement of income of the Bank can be found in a separate annual report.

The Disclosure required pursuant to Section 5, Para. 5, Sent. 3, of the Disclosure Act are published in a separate appendix – see Table 3.

TABLE 3: APPENDIX TO THE BALANCE SHEETPursuant to Section 13, Para. 3, Sent. 2, of the Disclosure Act in conjunction with Section 5 (5), Sent. 3, of the Disclosure Act 2013 2014

a) External sales (in EUR ’000) 10,844,091 10,934,455

b) Income from investments (in EUR ’000) 29,577 46,925

c) Wages and salaries, social security contributions, expenditure on pensions and other benefi ts (in EUR ’000) 1,273,160 1,321,666

d) Number of employeesConverted into full-time employees, the number of employees on average for 2014 was 27,228 (previous year: 25,755)

26,907 28,354

The sales revenue reported are broken down into geographically defined markets and busi-ness segments as shown in Table 4.

TABLE 4: BREAKDOWN OF SALES REVENUE BY REGIONIn EUR million 2013 2014

Germany 3,519 3,742

Other EU member states 2,537 2,575

Rest of Europe 344 561

Rest of the world 4,444 4,056

Thereof shipping sales in international waters 3,985 3,596

Breakdown of sales by division

Food 2,577 2,622

Beer and Nonalcoholic Beverages 1,843 1,929

Sparkling Wine, Wine and Spirits 687 697

Shipping 5,254 5,186

Other Interests 483 500

90

Adjusted for changes in the scope of consolidation, total sales revenue for 2014 were EUR 10,899 million versus EUR 10,847 million for 2013.

Bielefeld, April 14, 2015Dr. August Oetker KGThe General Partners

Report of the Auditors on the Complete Consolidated Financial StatementsWe have audited the Consolidated Financial Statements of Dr. August Oetker KG, Bielefeld, for the financial year from January 1 to December 31, 2014, taking into consideration the rele-vant accounting records and the Group Management Report.

Pursuant to German commercial law and the supplementary provisions contained in the Articles of Association, the Company’s legally appointed representatives are responsible for keeping accounting records and for compiling the Consolidated Financial Statements and the Group Management Report. Our task as auditors is to arrive at an assessment of the Consolidated Financial Statements and the Group Management Report, taking the relevant accounting records into consideration.

We have conducted our audit of the Consolidated Financial Statements in accordance with Section 317 of the German Commercial Code (HGB) and the professional standards laid down by the Institute of Public Auditors in Germany. Accordingly, the audit must be planned and conducted in such a way that it is possible to detect with an adequate degree of cer-tainty any inac curacies and infringements that may have a negative impact on the true and fair picture of the net worth, financial position and earnings situation of the Company presented in the Con soli dated Financial Statements and Group Management Report, taking the principles of proper accounting into consideration.

Dr. Ottmar GastRichard Oetker Dr. Albert Christmann


91

Group Notes

The auditing procedures take account of specific knowledge of the company’s business activ ities, the general economic and legal environment, as well as possible sources of error. The effectiveness of the internal audit system as well as the accuracy of the data contained in the accounting records, the Consolidated Financial Statements and the Group Manage-ment Report are verified largely on the basis of spot checks. The audit also evaluates the annual accounts of the companies included in the Annual Financial Statements, the delinea-tion of the consolidated Group, the accounting and consolidation principles, the appraisals made by the legally appointed representatives, as well as the overall picture presented in the Consolidated Financial Statements and the Group Management Report. In our view, the audit provides an adequately sound basis for evaluation.

Our audit did not result in any objections.

In our considered opinion, the Consolidated Financial Statements accord with the legal requirements and the supplementary provisions of the Articles of Partnership and convey a true and fair view of the net worth, financial position and earnings situation of the Group in compliance with proper accounting principles.

The Group Management Report accurately describes the situation of the Group and accu-rately presents the opportunities and risks inherent in future developments.

Bielefeld, April 15, 2015

PricewaterhouseCoopersAktiengesellschaftWirtschaftsprüfungsgesellschaft

Peter Krupp Rudolf HagenCertified Public Accountant Certified Public Accountant

92

Publishing Information

Published by Dr. August Oetker KG Lutterstraße 14 33617 Bielefeld Germany

Telephone: +49 (0) 521 155 – 0 Fax: +49 (0) 521 155 – 2995

E-mail: [email protected] Internet: www.oetker-gruppe.de

Edited by Public Relations Department

Design and Production3st kommunikation, Mainz

PhotosDr. August Oetker KG

Printed byHans Gieselmann Druck und Medienhaus GmbH & Co. KG, Bielefeld

carbon neutralnatureOffice.com | DE-329-268830

print production

Given the mixed conditions worldwide, the Oetker Group developed in an acceptably decent way in the 2014 reporting year and as a rule better than the sector concerned. After adjustments for exchange rate and acquisition effects, the Oetker Group was able to increase sales by 0.8 %.

The Oetker Group2014

JuneWith the Theme World Pizza, Dr. Oetker devotes an own, exten-

sive topic area to its popular pizzas on the company’s home-

page to augment the existing theme worlds of Baking, Cooking,

Preserving, Children, Brunch and Desserts.

JulyThe Henkell & Co. Group stands out in the competition of the

Deutsche Landwirtschafts-Gesellschaft (DLG) 2014: Nine gold

and three silver medals for spirits. Gorbatschow Vodka is yet

again the big winner. Other awards go to Pott Rum, Kuemmerling

Kräuterlikör, Fürst Bismarck Kornbrand, Jacobi 1880 Alter

Weinbrand V.S.O.P. and Cardenal Mendoza.

SeptemberA milestone in the company’s history: Aficionados of special spar-

kling wine culture worldwide pick up the Henkell bottle one

billion times, thus crowning the success story that started in 1856.

Cooperation agreement signed: United Arab Shipping Company

(UASC) and Hamburg Süd will work together worldwide in

the future and first agree to cooperate in a number of their core

operating zones.

OctoberOutstanding Environmental Protection Report: Budenheim im-

presses the jury of the CEFIC Responsible Care Awards in the

category of Communication in terms of report content, structure,

clarity, authenticity and transparency.

Radiant new image for Fürst von Metternich Chardonnay: The

latest product from Fürst von Metternich now presents itself in

an unusual and striking bottle: All in white, in a charming,

non-conformist look, the brand thus appeals to consumers who

prefer an unconventional sparkling wine experience at a pre-

mium level for special occasions.

The Oetker Collection is honored by four prizes from a total of

eight nominations at the Villégiature Awards 2014. 23 well-

known international journalists award the renowned luxury hotel

group the accolades of Best Resort in Europe, Best Ambience

Hotel in Europe, Best Welcome and Service in Europe and Best

Hotel in Africa.

NovemberThe perfect premium food package now comes straight to the

home: From now on, there is a large selection of carefully selected

fine food specialities available in the FrischeParadies online shop.

Dr. Oetker successfully completes the acquisition of the North

American frozen pizza business from McCain Foods Limited.

With the takeover, Dr. Oetker expands its international presence

still further. Various brands are acquired as part of the acqui-

sition, including the US brand Ellio’s.

The luxury hotel group Oetker Collection takes its first steps in

the United Kingdom. With the legendary The Lanesborough

in London, the renowned Collection takes over the management

of its ninth Masterpiece Hotel.

Hamburg Süd has achieved its environmental target set for 2020

to reduce the CO2 emissions of its f leet of ships by 26 percent

versus 2009 ahead of time. In total, all the activities together

have had a much more positive effect on CO2 emissions than

originally forecast.

Hamburg Süd lays the foundation stone for the extension of the

shipping line’s headquarters in Hamburg. The new building

is being erected in the Willy-Brandt-Strasse on the plot adjacent

to the traditional Hamburg Süd headquarters.

DecemberHamburg Süd wins the Electrolux Supplier Award 2014 in the

category of Global Logistics. The shipping group scores top marks

for quality, punctuality, performance, costs and sustainability.

Hig

hlig

hts

2014

JanuaryAcquisition in the Netherlands: The Martin Braun Group acquires

the Dutch company, Delite, which has operated for more than

85 years with 200 products in the bakery, ice cream and chocolate

industry.

FebruaryThe two new f lavors, Schöfferhofer Weizen-Mix Zitrone and

Schöfferhofer Weizen-Mix Granatapfel + Guarana, extend the

fruity fresh range of grain blends and provide for a novel taste

experience.

Founded in 1989 under the motto “Baking is now really fun!”

the Dr. Oetker Back-Club celebrates its 25th anniversary this year

and today counts more than 100,000 members.

Different is more refreshing – and different does not always

have to be exotic. Bionade is proof of that and combines two old

friends from the native orchard to create an exciting and totally

new taste experience. The new variety Bionade Himbeer-Pflaume

presents itself as natural and dryly fruity.

MarchBesides countless innovations and attractive products in the

sparkling wine and spirits segment, the Henkell & Co. Group

presents, among other things, the eagerly awaited relaunch

of the most exported German sparkling wine brand Henkell

at the ProWein trade fair. The fresh look is defined by a leaner

bottle and enticing details. The Henkell Lily stands central in

the new design.

Underway on the seven seas: The Radeberger Group will remain

the exclusive beer partner for AIDA Cruises for a further five

years and is extending its commitment to all twelve ships of the

current AIDA f leet.

The Oetker GroupHighlights 2014

AprilThe Oetker Collection and the legendary luxury hotel, Eden

Rock – St Barths will be joining forces in the future. This is the

eighth Masterpiece Hotel in the Oetker Collection.

MaySuccessful product launch: Budenheim brings a new and even

more environmentally friendly series of products to market for

combating forest fires using photosensitive pigments extracted

from the air.

At the 26th International Corporate Films Festival in Vienna,

Bankhaus Lampe wins the Silver Victoria for its image video in

the category of Trade Fair Videos/Events.

Dr. Oetker has tracked them down: Around 360 men and women

who work voluntarily and unpaid for the common good in

Bielefeld are rewarded under the motto “Dr. Oetker celebrates

volunteering” with an eventful evening in the Rudolf-Oetker-

Halle as a thanks for their personal commitment.

Dr. Oetker invests in North America and opens a new pizza

plant near Toronto to serve the rising demand in Canada and

the United States.

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