Quarterly Financial Report 2009 - Logwin Logistics · 2009. 5. 6. · Closing price (Xetra) in...

Quarterly Financial Report 2009Logwin AG

Key Figures January 1 – March 31, 2009

in thousand € 3 Months

Group 2009 2008 ∆ in %

Sales 405,267 523,180 –22.5

Gross Profit 29,568 40,909 –27.7

Margin 7.3 % 7.8 %

Earnings before Interest and Taxes (EBIT) 76 10,824 –99.3

Margin 0.0 % 2.1 %

Net Result –6,277 3,745 –

Attributable to Shareholders of Logwin AG –6,246 3,437

Earnings per Share (in 1) –0.06 0.03

Operating Cash Flow 1,141 -11,354

Net Cash Flow –1,197 –13,821

in thousand € 3 Months

Business Segments 2009 2008 ∆ in %

SolutionsSales 148,109 188,114 –21.3

EBIT 3,199 7,357 –56.5

Margin 2.2 % 3.5 %

Air + OceanSales 105,498 136,801 –22.9

EBIT 4,010 5,081 –21.1

Margin 3.8 % 3.7 %

Road + RailSales 163,857 211,304 –22.5

EBIT –5,876 –475 –

Margin –3.6 % –0.2 %

in thousand € Mar. 31, 2009 Dec. 31, 2008 ∆ in %

Equity Ratio 28.4 % 28.4 %

Net Financial Debt 136,677 134,691 1.5

Number of Employees 8,149 8,630 –5.6

1

Quarterly Financial Report 2009

Logwin AG

SalesLogwin AG generated sales in the first three months 2009 of 405.3 million euros. Thisrepresents a decline due to market developments of 22.5 %.

EarningsEarnings before interest and taxes (EBIT) in the first quarter amounted to 0.1 million euros.The significantly weaker economic situation and declining gross margin are having an effecton earnings. The net result is -6.3 million euros compared to 3.7 million euros in the previous year.

Business SegmentsThe negative development in the overall economy and the falling demand for transport andlogistics services had a significant influence on all three business segments. However,while sales decreased by almost the same amount in all three business segments, theyexperienced different developments in earnings:

Even in difficult conditions, Air + Ocean exceeds last year's operating margin and underlinesits very pleasing success in the market. Solutions was only able to partly compensate forthe sometimes drastic falls in volumes and missing profit contributions from customer business by reducing costs and acquiring business from new customers. Lower transportvolumes, price reductions and a dramatic decline in freight rates placed a burden on thebusiness segment Road + Rail. Cost-cutting measures are being eclipsed by insufficientcapacity utilization and a fall-off in demand.

OutlookIn the face of developments in the overall economy and increased difficulties in makingforecasts, the focus of the Logwin Group for the current business year continues to be on taking steps aimed at ensuring stability in order to safeguard earnings and liquidity. Comprehensive measures aimed at reducing costs and adjusting capacities to matchdemand are being taken in all business segments. Through close contact to individual customers, the Logwin Group is ensuring that these measures will also establish the basisfor further positive development.

Overview

€in million

200

160

120

80

40

0

Sales by business segments

in million

4

2

0

–2

–4

–8

EBIT by business segments

€

148.1

Solutions

105.5

Air + Ocean

163.9

Road + Rail

3.2

Solutions

4.0

Air + Ocean

–5.9

Road + Rail

2

The group's current image campaign is entitled "Just ask Logwin". Logwin is always keen to prove that thismessage is all about the promise to listen, to provide an answer and to find a solution: in fact-to-face talkswith customers, at congresses such as the BVL Logistics Dialog or in discussions with journalists.

In Dialog - Fairs, Congresses and Press Conferences inthe 1st Quarter

Personal, direct and eye-to-eye dialog is the basis for any good partnership. As a logisticspartner and transparent company, Logwin sought to engage in dialog at the following eventsduring the first three months of the year:

Logistics Dialog In March, Logwin was present at the 25th Logistics Dialog of the FederalLogistics Association (BVL) of Austria in Vienna. Under the motto "Courage in Logistics", theevent offered presentations and expert discussions and was the ideal platform to talk withcustomers and to exchange ideas with logistics experts.

AUTOINVEST in Russia Logwin has been participating in the international conference oninvestment attraction to the automotive component industry since 2007. At the forum, held in St. Petersburg in February, Logwin was able to speak to a large number of industrial companies about possibilities for cooperation.

Press conferences Logwin published its Annual Report 2008 on March 11. At the pressconference in Frankfurt (Germany), the Executive Committee explained the developments of the business year and answered journalists' and analysts' questions. Three weeks laterLogwin talked to Austrian journalists about its first year under the Logwin brand, businessdevelopments in Austria and Eastern Europe, the unsettling overall economic situation andthe company's response to it.

Outlook: transport logistic Between May 12-15, 2009, Logwin will be welcoming visitors to stand no. 121/122 in hall 5 at the transport logistic fair in Munich (Germany).

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Content

1 Overview

4 Group Interim Management Report

4 Stock

5 Corporate Bond and Rating

6 Sales and Earnings Development

10 Financial Position

13 Other Reporting

13 Outlook

14 Consolidated Interim Financial Statements

14 Consolidated Statement of Income

15 Consolidated Statement of Cash Flows

16 Consolidated Balance Sheet

17 Consolidated Statement of Changes in Shareholders’ Equity

18 Notes to Consolidated Interim Financial Statements

18 Basis of Accounting

18 Consolidation Scope

18 Segment Reporting

20 Other Income and Expenses

20 Contingent Liabilities

20 External Review

20 Subsequent Events

Financial Calendar (Cover)

Imprint (Cover)

Quarterly Financial Report 2009

Logwin AG

4

Stock

Developments in the stock markets There was a weak start to the year on the internationalstock markets in 2009 after they had stabilized for a short time at a significantly lower level follo-wing the heavy losses in 2008. In Germany, the DAX and SDAX have lost approximately 15 % oftheir value in the course of the year compared to the end of the previous year. The DAX closed at4,085 points on March 31, 2009, while the SDAX closed at 2,374 points.

Logwin share The Logwin AG share followed the negative trend of the stock markets. Besides thegeneral development of the relevant indices, shares in logistics companies are considered to becyclical stocks and are therefore currently rated conservatively. The Logwin AG share closed onMarch 31, 2009 at a final price on the Xetra index of 1.26 euros. It thus lost 18.7 % of its value inthe course of the year as against the previous year's closing price of 1.55 euros. In the first threemonths of 2009, a total of 515,156 shares in Logwin AG were traded on all German stock exchanges.This represented a turnover of 638,258 euros.

in December 31, 2008 March 31, 2009

Logwin share vs. benchmark indices (rebased)

Logwin AG SDAX Prime Transport

120

100

80

60

40

20

in %

A H R E N S B U R G A L Z E N A U - H Ö R S T E I N A M B E R G A N T W E R P A R A D A S C H A F F E N B U R G A T E S S A A U

Wherever our customers want to do business: either we are already there or we will go there for them.Logwin. Your logistics.

Logwin is globally present.

March 31, 2009 March 31, 2008

Closing price (Xetra) in euros 1.26 1.75

High / Low 52 weeks in euros 1.86 / 0.59 3.04 / 1.66

Total number of shares in units 111,474,987 111,474,987

Market capitalization in million euros 140.5 195.1

Earnings per share in euros –0.06 0.03

Operating cash flow per share in euros 0.01 –0.10

Key figures for the Logwin share

Frankfurt (Prime Standard), ISIN LU0106198319, WKN 931705

Group Interim Management Report

Stock | Corporate Bond and Rating

5

As of December 31, 2008, DELTON Vermögensverwaltung AG announced that it held 80.6 % of theshares in Logwin AG. Since that date Logwin AG has received no further notification of a change inthis shareholding.

The members of the Board of Directors and the Executive Committee of Logwin AG do not hold anyshares or options to purchase shares in Logwin AG.

Corporate Bond and Rating

Development of the corporate bond The price of the subordinated corporate bond of LogwinAG has declined over the year so far, and in the course of the first three months of 2009 was unable to maintain the price of 87.44 noted at the end of the previous year. Following some in partsignificant price declines and its lowest price so far of 60.10, the bond recovered and finished onMarch 31, 2009 at a closing price of 67.00. In line with the market, the credit spread of the sub-ordinated bond was 1,817 base points at the end of the reporting period, following a closing valueof 1,182 base points at the end of the previous year.

Corporate rating As a capital market oriented company, Logwin has been externally rated by therating agencies "Moody's" and "Standard and Poor's" since it issued its subordinated corporatebond in December 2004. At the end of March 2009, the corporate rating by Moody's was "B2".Standard & Poor’s placed the Logwin Group in the "B" rating category. In spite of the general eco-nomic and market situation, the external ratings remained unchanged throughout the previous yearand for the first three months of 2009. Both Moody’s and Standard & Poor’s recognize the stablefinancial situation that has been achieved as a result of strict working capital management, restrai-ned investment activity and the systematic management of receivables. The ratings reflect not justthe satisfactory liquidity situation but also the market position of the business segments and thegroup's excellent diversification.

However, Moody’s and Standard & Poor’s adjusted the outlook from "stable" to "negative", particu-larly in light of a negative assessment for the transport and logistics industry as a result of the anti-cipated consequences of the economic downturn in the markets.

The subordinated corporate bond is rated by Standard & Poor’s at "B-", which means that it is ratedone category lower than for the group. Moody's rating for the corporate bond is still two categorieslower than for the group as a whole.

B A D R E I C H E N H A L L B A N G K O K B A N G K O K / S A M U T P R A K A R N B A R A K A L D O B A R C E L O N A B A S L E B A S S E H A M B E I J I N G

6

EBIT

10.8

0.1

08 09

in million €

12

9

6

3

0

Sales and Earnings Development

Overall economic development The global economic and financial crisis seriously affected theoverall economic development of the Logwin Group in the first quarter of 2009. The dramatic fallsin production and in global import and export activities recorded in the fourth quarter of 2008 continued into 2009 and led to an unprecedented decline in transport volumes and in demand forlogistics services.

The Logwin Group's markets were characterized by considerable uncertainty about how to assessthe current overall situation in the face of the dynamic negative developments. This also resulted inconsiderable and widespread restraint in production and trade as well as involved goods movement.

The main markets of Germany and Switzerland were severely affected in the first quarter of 2009due to their high levels of exports. Economic development in Austria was put under additional strain owing to the uncertainty about the short-term financial stability of some Central and EasternEuropean countries. Growth markets such as China experienced a considerable slowdown in growthand were partly also in recession, such as Russia and Brazil.

Mar. 31, 2009 Dec. 31, 2008

Germany 3,444 3,690

Austria 1,300 1,353

Eastern Europe 1,191 1,296

Asia, Pacific region, Africa 1,020 1,030

Switzerland 377 378

Other 817 883

Total 8,149 8,630

Employees in the Logwin Group As of March 31, 2009 the Logwin Group employed 8,149 people.This represents a decrease in the number of staff of 481 compared with December 31, 2008.

B E L G R A D E B E R G H E I M B E R I N G E B E R L I N B E R N D O R F B I E L S K O - B I A L A B O C H U M - W A T T E N S C H E I D B R E M E N

Air + Ocean1,957

Road + Rail3,064

Holdings/SharedServiceCenter

347

Solutions2,781



Logwin Group In the first three months of 2009 the Logwin Group realized sales of 405.3 millioneuros as against the previous year’s value of 523.2 million euros. This corresponds to a drastic market-related downturn of 22.5 %. Due to negative overall economic developments, all businesssegments of the group registered considerable declines in volumes in the business with existing customer. The decreasing freight volumes led to substantial declines in freight rates and additionallyburdened sales volumes.

Gross profit, at 29.6 million euros, was below the previous year’s value (2008: 40.9 million euros)due to sales. The drop in the gross margin from 7.8 % to 7.3 % is related to the reduction in busi-ness volumes. These could not be completely compensated in the first quarter of 2009, especiallydue to long-term obligations and depreciations, as well as the area of personnel.

7

Sales

523.2

405.3

08 09

in million €

600

450

300

150

0

January 1 - March 31, in thousand 2 2009 2008 Change

Net sales 405,267 523,180 –22.5 %

Gross profit 29,568 40,909 –27.7 %

Margin 1 7.3 % 7.8 % –0.5 %

Earnings before interest and taxes (EBIT) 76 10,824 –99.3 %

Margin 1 0.0 % 2.1 % –2.1 %

Net result –6,277 3,745 –

Attributable to shareholders of Logwin AG –6,246 3,437 –

EBITDA 6,041 17,193 –64.9 %

EBITDA-Margin 1 1.5 % 3.3 % –1.8 %

1 Change in percentage points

The global crisis seriously affected both global and regional streams of goods flows in the LogwinGroup's markets. It was assumed that all carriers suffered double-digit declines in freight volumesthroughout the industry. In the first two months of 2009 global air freight tonnage fell by more than20 % compared with the same period of the previous year. Ocean freight experienced considerablecapacity surpluses despite efforts on the part of ship owners to make adjustments. This led tofreight rates remaining at an extremely low level. Prices in land transportation remained largely atthe historical all-time low levels seen in the fourth quarter of the previous year.

185.1 Germany

100.1 AustriaEastern Europe 36.9

Other 38.6

Sales by Regions

Switzerland 21.2

Asia, Pacific region,Africa 23.4

B R E M E R H A V E N B R E S T ( B E L A R U S ) B R I S B A N E B R N O B R N O - M O D R I C E B U C H A R E S T B U D A P E S T B U R G B E R G

in million €

8

Efforts during the reporting period focused on safeguarding gross profit as a response to the dra-matic fall-off in sales. This meant having to respond to the changes in the number of shipments andin volumes that occurred often at short notice by engaging in a close dialog with customers.Besides cutting capacity, bundling or relocating the reduced goods flows became an importantcomponent in reducing the negative impact of economic developments. In many cases appropriatesolutions could be developed and implemented together with the customers, which thus served tostrengthen existing customer relationships.

Operating expenses in the reporting period of -29.5 million euros were slightly below the level ofthe previous year (2008: -30.3 million euros). Given the steep decline in sales, top priority is givento the ongoing identification of further optimization potential, as well as the review of currentstructures in the area of administration. The regular depreciation as included in the costs of salesand operating expenses have been noticeably reduced in the first quarter of 2009 to -6.0 millioneuros (2008: -6.4 million euros). Reasons include the business-related continued reduction of heldcapacities, as well as the matching of business models to need-based rental solutions.

EBIT amounts to 0.1 million euros. The clearly weakened economy and declining gross margin, aswell as the constant operating expenses had the effect of decreasing the results. After the firstthree months, the operating result – contingent upon the decrease in gross profit – is thus clearlybelow last year’s result (2008: 10.8 million euros).

At -4.5 million euros finance expenses are slightly above last year’s levels (2008: -4.3 million euros).Within the scope of expectations, income tax expenses were reduced to -1.9 million euros (2008: -2.8 million euros). The net result amounts to -6.3 million euros (2008: 3.7 million euros).

Solutions In the first quarter of 2009 the business segment Solutions achieved sales with its customers from industry and trade of 148.1 million euros and thus was 21.3 % below last year’ssales of 188.1 million euros. All four business units suffered from strong market-related declines indemand that could only be compensated to a limited extent. Weak total economic development wasespecially hard on the business units Industrial Goods and Consumer Goods. Their logistics servicesare utilized mainly by sectors that have been particularly hard-hit by the economic decline: the auto-motive industry, furniture industry, tires and wheel production, as well as the electronics industry.The decrease in sales could only limitedly be compensated by new customer business in the decli-ning market environment. The business unit Fashion also had declining sales due to weak develop-ment in the textile retail in Germany as well as in other important markets. Sales in the businessunit Media also dropped because of a decline in volumes.

EBIT Solutions

7.4

3.2

08 09

in million €

8

6

4

2

0

Sales Solutions

188.1

148.1

08 09

in million €

240

180

120

60

0

B U R G H A U S E N B U R G S T Ä D T B U S A N B U S S I G N Y C A D E N A Z Z O C A P E T O W N C A S O L I C A S T R O P - R A U X E L C E B U



9

In the reporting period EBIT for the business unit Solutions amounted to 3.2 million euro after lastyear’s comparison value of 7.4 million euros. The operating margin declined to 2.2 % (2008: 3.5 %).This development can for the most part be attributed to the declines in volumes due to a decliningeconomy, as well as planned reductions or lost earnings from discontinued customer projects. Dueto the extreme pressures in the market, planned business with new customers could not be realizedin full. The drop in earnings could only be partially compensated by reduction in temporary workand the introduction of short-time work.

Air + Ocean In the first three months of 2009, the business segment Air + Ocean recorded sales of105.5 million euros (2008: 136.8 million euros) in its business units Europe Middle East, South EastAsia, Far East, Americas and Africa. The unprecedented low levels of sea and air freight influencedsales in all business units. Additionally, the segment recorded declines in volumes over the course ofthe economic crisis as against last year, as well as lower achievement in new customer business.

EBIT decreased in the difficult market environment from 5.1 million euros last year to 4.0 millioneuros. This corresponds to a decline of 21.1 %. At 3.8 % the operating margin exceeded that of lastyear’s level (2008: 3.7 %) and underlines the stability of the business segment with its focus oncustom-tailored and customer-specific transport and logistics solutions. The downturn in resultswas especially due to the loss of sales in the business units Europe Middle East, Africa andAmericas. During the reporting period the business units Far East and South East Asia generatedongoing growth that was additionally supported by positive exchange-rate effects.

Road + Rail Sales in the business segment Road + Rail were 163.9 million euros (2008: 211.3 mil–lion euros). This corresponds to a decline of 22.5 % as compared to last year. The business unitsWestern Europe, Central Europe and Eastern Europe could not escape from the strong downturns indevelopment due to market conditions. Along with the macroeconomic situation and declines incustomer demand, it was also particularly due to lower transport volumes and further price reduc–tions and a general massive deterioration of cargo rates.

The business segment Road + Rail realized an EBIT of -5.9 million euro as compared to last year’svalue of -0.5 million euros. The business segment can only partially compensate for the lack ofsales-contingent income contributions through cost-reducing measures in the area of personnel andtransport fleet costs. However, these effects were strongly displaced by insufficient capacity utiliza-tion and shortfalls in demand, especially in the automotive area.

The developments of the past months clearly highlight the necessity of efforts in order to achievethe largest possible harmonization of internal processes, from freight processing to administrative

EBIT Air + Ocean

5.1

4.0

08 09

in million €

8

6

4

2

0

Sales Air + Ocean

136.8

105.5

08 09

in million €

240

180

120

60

0

C H O N B U R I / L A E M C H A B A N G C H O N G Q I N G C L U J - N A P O C A C O L O G N E C O S L A D A - M A D R I D D A L I A N D A R M S T A D T

10

functions. The ongoing review of profitability prospects for the activities of the business segmenthave been substantially intensified considering the merely gradual recovery of the market environ-ment expected.

Financial Position

Cash Flow The development of the operating cash flow of the Logwin Group was positive at theend of the first quarter 2009 at 1.1 million euros (2008: -11.4 million euros). This clear improvementwith respect to the previous period was, along with a reduction in interest and tax payments, especi-ally the result of a pleasing reduction in working capital. Considering the decline in sales and thedecreased earnings, a seasonal increase in short term assets was able to be avoided as comparedto the year’s end in 2008.

The continued restrained investing policy led to fewer payouts for investments as compared to lastyear’s period of -2.4 million euros (2008: -3.1 million euros). The inflows from divestments came inat 1.0 million euros (2008: 3.3 million euros). Investing activities inclueded further standardizationand the further development of operative IT systems, as well as the purchase of logistics equipmentwith a direct connection to customer projects.

EBIT Road + Rail Sales Road + Rail

D E B R E C E N D I E T Z E N B A C H D I N G O L F I N G D N I P R O P E T R O W S K D U B A I D U R B A N D Ü S S E L D O R F E A S T L O N D O N E C H I N G

-0.5

-5.9

08 09

in million €

0

-2

-4

-6

-8

211.3

163.9

08 09

in million €

240

180

120

60

0

January 1 - March 31, in thousand 2 2009 2008

Earnings before interest, taxes, depreciation and amortization (EBITDA) 6,041 17,193

Interest payments –784 –892

Income tax payments –3,336 –4,735

Changes in working capital, cash effective 576 –20,226

Other changes –1,356 –2,696

Operating cash flow 1,141 –11,354

Capital expenditure –2,414 –3,090

Divestments 1,022 3,337

Acquisitions of subsidiaries –887 –3,288

Cash flow from investing activities –2,338 –2,467

Net cash flow –1,197 –13,821

Cash flow from financing activities –2,491 –3,039

Net cash flow = Operating cash flow - Cash flow from investing activities

11


Financial Position

In the first quarter the acquisitions of subsidiaries concerned the payment of instalments of previo-us years amounted to -0.9 million euros (2008: -3.3 million euros). This led to an almost unchangedcash flow from investing activities of -2.3 million euros (2008: -2.5 million euros). Resulting fromthe great improvement of the operating cash flow, at -1.2 million euros the net cash flow clearlyoutperformed last year’s value of -13.8 million euros.

Cash flow from financing activities was -2.5 million euros (2008: -3.0 million euros). Along with the planned reduction of long-term financial liabilities, funds outflows were caused by the repaymentof leasing liabilities, and are only partially complemented by business-oriented capital expenditurerelated payments.

Balance Sheet Total assets declined compared to the end of last year to 727.2 million euros from746.5 million euros and thus partially reflected the reduced business volumes. On the balancesheet reference date as against to the end of 2008, cash and cash equivalents decreased slightly to 60.0 million euros (2008: 63.2 million euros). As against March 31, 2008 an increase in cash andcash equivalents of 11.9 million euros was attained.

E N N S E S C H E N F E L D K I R C H F O R C E F O R C H H E I M F R A N K F U R T F R E I L A S S I N G F Ü R N I T Z F U Z H O U G A R C H I N G G D Y N I A

in thousand 2 Mar. 31, 2009 Dec. 31, 2008 Change

Assets 727,213 746,540 –2.6 %

Thereof:

Cash and cash equivalents 59,961 63,204 –5.1 %

Trade accounts receivable 230,599 244,851 –5.8 %

Goodwill 181,054 180,844 0.1 %

Other long-term assets 208,240 214,732 –3.0 %

Liabilities and shareholders’ equity 727,213 746,540 –2.6 %

Thereof:

Short-term financial liabilities 9,550 7,769 22.9 %

Trade accounts payable 203,684 218,665 –6.9 %

Long-term financial liabilities 28,434 29,113 –2.3 %

Bonds payable 127,316 127,219 0.1 %

Shareholders’ equity (including minority interests) 206,503 212,345 –2.8 %

Key figures to the balance sheet

Equity ratio 1 28.4 % 28.4 % 0.0 %

Gross financial debt 196,638 197,895 –0.6 %

Net financial debt 136,677 134,691 1.5 %

1 Changes in percentage points

Net cash flow

-13.8

-1.2

08 09

in million €

0

-4

-8

-12

-16

Operating cash flow

-11.4

1.1

08 09

in million €

5

0

-5

-10

-15

Due to the lower level of sales, trade accounts receivable were reduced by 14.3 million euros to230.6 million euros with respect to the corresponding value (December 31, 2008: 244.9 million euros).

Other long-term assets were reduced to 208.2 million euros with respect to the reference date(December 31, 2008: 214.7 million euros), due to regular depreciation.

Due to decline in volumes, trade accounts payable amounted to 203.7 million euros as compared to218.7 million euros at the end of last year. The decrease was reflected by the simultaneous declinein trade accounts receivable.

Liabilities from issuing the senior subordinated bond amounted to 127.3 million euros (2008: 127.2million euros). Depreciation on the issuing costs of the bond over the eight-year term was respon–sible for this minor change.

Due to the negative net result for the quarter, shareholders’equity was reduced to 206.5 millioneuros (2008: 212.3 million euros). The equity ratio remains unchanged at 28.4 %.

The group’s gross financial debt at 196.6 million euros on March 31, 2009 is, slightly decreasing,on the level of the previous year’s value (December 31, 2008: 197.9 million euros). Due to liquidityissues the net financial debt rose slightly by 2.0 million euros to 136.7 million euros (December 31,2008: 134.7 million euros). Compared to March 31, 2008, the net financial debt decreased by 23.4 million euros.

12

G E N A S G L A T T B R U G G G L I W I C E G O C H S H E I M G O M E L G R A N S C H Ü T Z G R A Z G R E V E N M A C H E R G U A N G Z H O U

Gross financial debt

197.9 196.6

08 09

in million €250

200

150

100

50

0

Shareholders’ equity

212.3 206.5

08 09

in million €250

200

150

100

50

0

13


Other Reporting | Outlook

Other Reporting

Annual General Meeting The company's Annual General Meeting was held in Luxembourg onApril 8, 2009. 80.75 % of the equity capital was represented. All proposals of the Board ofDirectors were approved nearly unanimously.

At the Annual General Meeting, Prof. Dr. Dr. h.c. Werner Delfmann, Dr. Michael Kemmer, Dr. YvesPrussen, Dr. Antonius Wagner and Berndt-Michael Winter were re-elected to serve as members ofthe Board of Directors for a term lasting until the conclusion of the Annual General Meeting in2011.

Executive Committee Detlef Kükenshöner, member of the Logwin AG Executive Committee, leftthe company with effect from April 17, 2009.

Outlook

The continuing deterioration in the overall economic situation as well as the dramatic scaling backof forecasts for the short to medium-term make it extremely difficult to predict the Logwin Groupdevelopment in the current business year. For this reason, the focus continues to be on measuresaimed at stability in order to safeguard earnings and liquidity.

Owing to the fall-off in sales, comprehensive measures aimed at reducing costs and adjustingcapacities have been decided on in all business segments. These are being vigorously pursued andimplemented. Reducing the number of employees and cutting the costs of materials are the centralcomponents of the efforts to stabilize the earnings situation.

By intensifying the dialog with its customers, the Logwin Group is ensuring that the required adjust-ments in capacity are in line with demand. This will ensure that customers and the Logwin Groupalike will be able to benefit from an economic recovery.

G U M M E R S B A C H G Ü N E S L I - I S T A N B U L G Y Õ R H A I P H O N G H A M B U R G H A N A U H A N G Z H O U H A N N O V E R H A N O I . . .

14

The accompanying notes are an integral part of these Consolidated Financial Statements.


Net sales 405,267 523,180

Cost of sales –375,699 –482,271

Gross profit 29,568 40,909

Selling costs –8,886 –9,122

General and administrative costs –21,899 –21,646

Other income 4,865 8,429

Other expenses –3,572 –7,746

Earnings before interest and taxes (EBIT) 76 10,824

Finance expenses, net –4,482 –4,302

Income (loss) before income taxes –4,406 6,522

Income taxes –1,871 –2,777

Net result –6,277 3,745

Attributable to:

Shareholders of Logwin AG –6,246 3,437

Minority shareholders –31 308

January 1 - March 31, in 2 2009 2008

Earnings per share – basic and fully diluted:for income (loss) attributable to the shareholders of Logwin AG –0.06 0.03

Weighted average number of shares outstanding 111,474,987 111,474,987

Consolidated Statement of Income

Consolidated Interim Financial Statements

15


Consolidated Statement of Income | Consolidated Statement of Cash Flows


Consolidated Statement of Cash Flows


Earnings before taxes –4,406 6,522

Finance expenses, net 4,482 4,302

Earnings before interest and taxes 76 10,824

Adjustments to reconcile net result to net cash provided by operating activities

Depreciation and amortization 5,965 6,369

Result from disposal of assets –579 –1,041

Other, net –777 –1,653

Income taxes paid –3,336 –4,735

Interest expenses paid –784 –892

Changes in working capital, cash effective

Change in trade accounts receivable and other assets, cash effective 11,000 –28,741

Change in trade accounts payable and other liabilities, cash effective –11,119 9,145

Change in inventory, cash effective 695 –630

Operating cash flow 1,141 –11,354

Capital expenditures –2,414 –3,090

Proceeds from disposal of non-current assets 1,022 3,337

Payments for acquisitions of subsidiaries, net of cash acquired –887 –3,288

Other changes in investing activities –59 574

Cash flow from investing activities –2,338 –2,467

Net cash flow –1,197 –13,821

Changes in short-term financial liabilities –1,044 –960

Repayment in long-term financial liabilities –419 –410

Repayment in finance lease obligations –1,019 –1,495

Distribution to minorities –9 –

Other, net – –174

Cash flow from financing activities –2,491 –3,039

Effects of exchange rate changes and changes in consolidation scope on cash 445 –674

Changes in cash and cash equivalents –3,243 –17,534

Cash and cash equivalents at beginning of year 63,204 65,626

Change –3,243 –17,534

Cash and cash equivalents at end of period 59,961 48,092

16

Assets in thousand 2 Mar. 31, 2009 Dec. 31, .2008

Cash and cash equivalents 59,961 63,204

Trade accounts receivable 230,599 244,851

Inventories 6,848 7,485

Income tax receivables 11,549 10,203

Prepaid expenses and other current assets 28,962 25,221

Current assets 337,919 350,964

Goodwill 181,054 180,844

Property, plant and equipment 174,689 181,068

thereof land and buildings 140,341 143,083

Intangible assets 14,491 14,895

thereof software 11,324 11,237

Financial assets 2,606 2,626

Deferred income taxes 15,677 15,045

Other non-current assets 777 1,098

Non-current assets 389,294 395,576

Assets 727,213 746,540

Consolidated Balance Sheet

Liabilities and Shareholders’ Equity in thousand 2 Mar. 31, 2009 Dec. 31, 2008

Short-term financial liabilities 9,550 7,769

Trade accounts payable 203,684 218,665

Lease obligations, short-term 3,438 3,947

Tax liabilities 4,576 3,815

Other short-term liabilities 63,178 58,848

Other short-term provisions 6,105 6,639

Current liabilities 290,531 299,683

Bonds payable 127,316 127,219

Long-term financial liabilities 28,434 29,113

Lease obligations, long-term 27,899 29,847

Retirement and other employee-related obligations 31,558 31,873

Deferred income taxes 11,771 11,981

Other long-term liabilities 3,174 4,451

Other long-term provisions 27 27

Non-current liabilities 230,180 234,511

Shareholders’ equity 206,503 212,346

Liabilities and shareholders’ equity 727,213 746,540


17


Consolidated Balance Sheet | Consolidated Statement of Changes in Shareholders’ Equity


in thousand 2

Ordinary shares- voting,

no-par value

Retainedearnings and

other reserves

Retained earnings and

other reserves

Result directlyrecongnized in

equity

Total groupequity

Minority interest

Total shareholders’

equity

January 1, 2008 139,344 174,002 5,072 –4,657 313,761 4,158 317,919

Net result 3,437 3,437 308 3,745

Acquisition of outstanding minority interests –

Neutral effects from minority interests –224 –224

Result directly recognized in equity, net of tax

Translation reserve -2,209 –2,209 –2,209

Fair value reserve -60 –60 –60

Revaluation reserve

Actuarial gains and losses from pensions

March 31, 2008 139,344 174,002 8,509 –6,926 314,929 4,242 319,171

January 1, 2009 139,344 174,002 –97,860 –6,173 209,313 3,032 212,345

Net result –6,246 –6,246 -31 –6,277

Acquisition of outstanding minority interests

Neutral effects from minority interests –9 –9

Result directly recognized in equity, net of tax

Translation reserve -216 524 308 308

Fair value reserve 136 136 136

Revaluation reserve

Actuarial gains and losses from pensions

March 31, 2009 139,344 174,002 –104,322 –5,513 203,511 2,992 206,503

Consolidated Statement of Changes in Shareholders’ Equity

Capital and reserves attributable to the equity holders of Logwin AG

1 Basis of Accounting

2 Consolidation Scope

3 Segment Reporting

As a listed company Logwin AG is required to prepare an interim reporting. These consoli-dated interim financial statements are prepared according to the International FinancialReporting Standards (IFRS) as adopted by the European Union and are in accordancewith these standards. In particular, the regulations of IAS 34 on interim financialreporting were applied.

The accounting policies as well as disclosures are based on the Consolidated FinancialStatement of Logwin AG as of December 31, 2008.

In addition to Logwin AG as the parent company, the scope of fully consolidated compa-nies includes four domestic and 104 foreign companies as of March 31, 2009 (as ofDecember 31, 2008: four domestic and 105 foreign companies).

The consolidated entities including Logwin AG have developed as follows:

Four associated companies, each held with a share of 50 %, were inclueded in the report.Not included are 27 subsidiaries (as of December 31, 2008: 27) either dormant orgenerating a negligible volume of business. Their influence on the group’s assets, liabili-ties, financial position and earnings is immaterial.

Segments are allocated according to the business segments of the Logwin Group.Business segments are prepared in line with IFRS 8 and the principle of materiality.

Transactions between the segments are measured at “arm’s length”, similar to transac–tions with third parties. The information about the business segments is reported afterconsolidation of the intersegment transactions. Transactions between the segments havebeen eliminated in the column “Consolidation”.

Notes to Consolidated Interim Financial Statements as of

March 31, 2009

Dec. 31, 2008 Additions Disposals Mar. 31, 2009

Luxembourg 5 – – 5

Abroad 105 – 1 104

Total 110 – 1 109

18

19


Notes to Consolidated Interim Financial Statements

January 1 - March 31, 2008 in thousand 2 Solutions Air + Ocean Road + Rail Holdings Consolidation Group

Net sales

External sales 185,896 132,827 203,885 572 – 523,180

Intersegment sales 2,218 3,974 7,419 – –13,611 –

Total net sales 188,114 136,801 211,304 572 –13,611 523,180

Earnings before interest and taxes (EBIT) 7,357 5,081 –475 –1,139 – 10,824

Finance expenses, net –4,302

Income before income taxes 6,522

The result of each segment is measured by management based on the earnings before other financialincome (expenses), interest expenses and income taxes. General corporate expenses of the holdingcompanies have been allocated to the business segments in line with the principle of causality.

The tables below set forth segment information of the business segments for the periods ended March31, 2009 and 2008:

January 1 - March 31, 2009 in thousand 2 Solutions Air + Ocean Road + Rail Holdings Consolidation Group

Net sales

External sales 145,072 103,144 156,880 171 405,267

Intersegment sales 3,037 2,354 6,977 – –12,368 –

Total net sales 148,109 105,498 163,857 171 –12,368 405,267

Earnings before interest and taxes (EBIT) 3,199 4,010 –5,876 –1,257 – 76

Finance expenses, net –4,482

Income before income taxes –4,406

20

4 Other Income and Expenses

5 Contingent Liabilities

6 External Review

7 Subsequent Events

In the first three months of 2009 there were no material changes in contingent liabilities inrespect of bank and other guarantees, letters of comfort, assessments and other mattersarising in the ordinary course of business.

The consolidated interim financial statements were neither audited according to articles256 and 340 of the Luxembourg law dated August 10, 1915 nor limited reviewed by anauditor.

Detlef Kükenshöner, member of the Logwin AG Executive Committee, left the company witheffect from April 17, 2009.


Foreign exchange loss –3,355 -7,631

Loss from disposal of non-current assets –7 -74

Other operating expenses –210 -41

Other expenses –3,572 –7,746


Foreign exchange gain 3,441 6,943

Gain from disposal of non-current assets 586 615

Other operating income 838 851

Other financial income – 20

Other income 4,865 8,429

Imprint

PublisherLogwin AG | 5, an de Laengten | 6776 Grevenmacher | Luxembourg

ResponsiblePublic Relations

This report is available in both German and English and can be downloaded from our website www.logwin-logistics.com.

Further copies of the report and additional information can be obtained from us free ofcharge.

Telephone: +352 719690-1112 | Fax: +352 719690-1359 | [email protected]

Dates 2009

August 5, 2009Publication of Half-Year Financial Report 2009

November 4, 2009Publication of Nine-Months Financial Report 2009

April 14, 2010Annual General Meeting

Contact

Public RelationsMara HanckerPhone: +352 719690-1353Telefax: +352 [email protected]

Investor Relations Sebastian EsserPhone: +352 719690-1112Telefax: +352 [email protected]

Logwin AG | ZIR Potaschberg | 5, an de Laengten | 6776 Grevenmacher | Luxembourg

Quarterly Financial Report 2009 - Logwin Logistics · 2009. 5. 6. · Closing price (Xetra) in...

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