Annual Report 2007 - Muehlhan AG

Annual Report 2007

The Muehlhan Group is an international specialist in marine surface protection –
and especially in the protection of ships’ steel surfaces from corrosion.
With 2,396 employees at 36 locations our 2007 sales totaled about EUR 196 million.
Our four divisions Ship Newbuilding, Ship Repair, Oil & Gas Offshore and Industry
Services enable us to serve the market successfully on a broad basis. A high quality
of service, more than 125 years of experience and an exacting standard of technical
know-how are our distinguishing features.
Key Figures
in kEUR 2007 2006 Change in %
Results
Sales 196,092 184,389 6.3
EBITDA 1 9,362 13,878 -32.5
EBIT 2 2,861 8,104 -64.7
EBT 3 1,101 6,333 -82.6
Net earnings per share in EUR 0.00 0.23 -100.0
Consolidated earnings after minority interests -73 3,646 -102.0
Cash flow 9,365 13,930 -32.8
Investments for fixed assets 12,531 7,795 60.8
Depreciation 6,501 5,774 12.6
Balance sheet
Balance sheet total 128,319 122,767 4.5
Current assets 58,695 73,555 -20.2
Fixed assets 4 65,392 46,745 39.9
Equity 59,714 59,287 0.7
Employees
Annual average headcount people 2,396 2,318 3.4
1 EBITDA: Profit from operations and depreciation
2 EBIT: Profit from operations
3 EBT: Earnings before taxes
4 Fixed assets: Total of non-current assets less deferred tax assets

The Group is represented locally
in all relevant regions.
That enables us to develop our growth
out of the markets.
Our Four Divisions
ship NewbuildiNg
At newbuilding we apply a high-quality coating
system to maximize a vessel’s life span.
Newbuilding has been our core business
for many years traditionally.
2007 2006
+ / -
in %
External revenue in kEUR 65,710 71,564 -8.2
Share of
external revenue in % 34 39 -5
EBIT in kEUR 2,561 3,247 -21.1
ship repair
While ships are in service we renew their
surface protection every three to ten years,
In maintenance and repair we keep project durations
to a minimum, thereby ensuring that ships
are back in service as soon as possible.
2007 2006
+ / -
in %
External revenue in kEUR 45,086 37,334 20.8
Share of
external revenue in % 23 20 3
EBIT in kEUR 6,695 4,250 57.5

Muehlhan AG Muehlhan Hauptstandorte Öl- und Gasfelder Schifffahrtsrouten Zukünftige Wachstumsregionen
Muehlhan AG Principal Muehlhan locations Oil and gas fields Shipping nodes
Future growth regions
Oil & gas OFFshOre
The Oil & Gas Offshore division provides surface
protection, in both newbuilding and repair work,
for offshore drilling rigs and production platforms.
2007 2006
+ / -
in %
External revenue in kEUR 13,647 17,616 -22.5
Share of
external revenue in % 7 10 -3
EBIT in kEUR -2,605 1,868 -239.5
iNdustry services
For our industry customers the focus is on
customized surface protection solutions.
Scaffolding, access technology and steel works
complement our other business segments as well.
2007 2006
+ / -
in %
External revenue in kEUR 71,529 57,522 24.4
Share of
external revenue in % 36 31 5
EBIT in kEUR 2,025 3,156 -35.8

Content
2 ManageMent
2 Foreword
5 Executive Bodies
7 Report of the Supervisory Board
9 Corporate Governance
12 Strategy
16 FroM the business divisions
22 our share
26 group ManageMent report
39 group consolidated Financial stateMents
75 stateMent oF the auditors´ report
Addresses Worldwide
Contacts and Financial Calendar
concentrate strengths,
build profitability
1

2
Foreword
In recent years, we were under way at high speed
in our markets. At the same time, we carefully
reviewed our options for how to take advantage
of the market. This required a lot of flexibility and
adaptability. This was particularly true for the past
year: In addition to good results and improvements,
we also had to overcome a series of challenges.
However, experiences – especially those that are
less than good – are important capital for the future.
And the markets are still waiting for us.
With our strengths, we have the substance to
achieve our goal: To become the market leader
in marine surface protection. As such, the next
step is to concentrate strengths and
build profitability.

ManageMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
about one year ago, Muehlhan aG published its first annual report after the
initial public offering. Several events that shaped our activities, and above
all our profits for the 2007 fiscal year, were already casting their shadows at
that time. over the course of the past twelve months, many of those circumstances
have developed into tangible operational challenges for our Group,
and therefore had to be addressed.
Considerable organizational cuts were required in the uSa. by the middle
of the year, we initiated measures with which we reduced costs and reset
our course back to productivity and profitability. as a result of the experience,
we have also introduced improved management and control mechanisms
throughout the Group. in the future, they will contribute to increased
efficiency for operational processes, and in principle will also make strategic
adjustments easier. initial positive effects were already measurable in 2007:
after months of losses, we were able to post balanced operational results
for the uSa again in the second half of the year for the first time.
using new internal financing structures, starting in 2008 we will be able
to significantly reduce the extent of currency effects, which significantly
reduced profit in 2007 as a result of the weak uS dollar in particular.
We already see that the measures are working in the trend of our numbers.
Muehlhan was able to stop the negative income trend by the middle of
the year, and the company had pre-tax profit of Eur 0.4 million as of the
3rd quarter. in the last quarter of 2007, income considered separately
was again more than Eur 1 million after taxes.
C. Ennemann, dr a. C. Krüger, b. Janssen (f. l. t. r.)
3

4
overall, the Muehlhan Group emerged invigorated from the events of the 2007 fiscal year. our aim, therefore,
is to earn a reasonable profit again from the market conditions in marine surface protection, which are
still excellent. in the short term and intermediate term, the marine business segments in Europe promise
great potential for our similar business segment services in the area of scaffolding / access technology.
as a result, the newbuilding boom in the coming years will lead to a strongly increasing demand for repair
work in the future as well, and will affect this submarket for the next few decades. With lucrative contracts
in bridge renovation and in the wind energy segment, Muehlhan has its opportunity to win new customers
and develop new submarkets step by step through diversified services, independent of individual business
segments and their fluctuations.
as such, the course for 2008 is clearly dictated: after the operational and organizational adaptations in the
year 2007, we will press forward, focused on our core business in all four business segments. the adaptations
initiated will cause Muehlhan to be able to redevelop its power in the market and restore profitability
and earnings ability!
We thank all our company’s employees for their high commitment. and finally, our special thanks go to our
shareholders, investors, business partners and friends who accompanied us during the past fiscal year.
Sincerely yours
dr andreas C. Krüger bernd Janssen Carsten Ennemann
Hamburg in March 2008

Executive Bodies
executive board
Dr Andreas C. Krüger
Hamburg
ManageMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
dr andreas C. Krüger Carsten Ennemann bernd Janssen
Chairman of the Executive board,
CEo
in charge of:
Strategy, Marketing, business
development and Sales
dr andreas C. Krüger is an engineering
graduate with a dipl.-ing. degree.
He has worked as a manager and
a board member of German and
foreign industrial companies. after
serving on the board of friactec aG
in Mannheim he worked as an interim
manager in 2002. He took over as
CEo of the Muehlhan Group in 2005.
Carsten Ennemann
Hamburg
Member of the Executive board,
Cfo
in charge of:
finance, Controlling, investor relations,
legal, Human resources and
financial audit
Carsten Ennemann is a graduate in
business administration. following
positions as a balance sheet
auditor with an auditing firm based
in Hamburg and as Cfo for the
German branch of Suez S.a.,
the Sita deutschland GmbH, in
2005 he moved to the management
of pVG projektierung und Verwaltungsgesellschaft
mbH. in 2006
he assumed the position of Cfo
of the Muehlhan Group.
Bernd Janssen
buchholz
Member of the Executive board,
Coo
in charge of:
operations, Materials Management,
it and technical audit
bernd Janssen is a business
economics graduate. after various
management posts in accounts and
controlling at shipyards and
aviation companies he joined a
North German publishing firm in 1992
as its commercial manager, moving
in 1996 as Cfo to the Muehlhan
Group’s top management.
5

6
supervisory board
dr Wulf-dieter H. Greverath philip percival dr Gottfried Neuhaus
Dr Wulf-Dieter H. Greverath
Hamburg
Chairman of the
Supervisory board
from 1981 to 2005
Managing partner and
chairman of the Muehlhan
Group holding company’s
management board.
Philip Percival
richmond, Great britain
deputy Chairman of the
Supervisory board
Managing director of the
SG Capital Europe ltd,
london
Dr Gottfried Neuhaus
Hamburg
Member of the
Supervisory board
Managing partner of
Neuhaus partners GmbH,
Hamburg

ManageMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
Report of the
Supervisory Board
Muehlhan AG looks back on an eventful 2007 fiscal year.
After the successful initial public offering during the 2006 fiscal year,
the company had to rise to new challenges and make trend-setting
strategic decisions during the past year. In doing so, the primary
objective was to permanently overcome potential hurdles and
shape the orientation of the company for the future. As the
Supervisory Board, we accompanied the work of the company’s
management during the reporting year to the extent specified by
law and by the Articles of Incorporation.
Review of management of the company
and supporting advice for the Executive Board
by the Supervisory Board
during the 2007 fiscal year, the Executive board provided
regular reports to the Supervisory board in writing and verbally
regarding the commercial development of Muehlhan
aG and of the Muehlhan Group. in doing so, special attention
was given to the company’s complex market situation
in light of general economic development. the Executive
board also provided comprehensive reports regarding the
financial position of the corporation and of the subsidiary
companies, their earnings performance, and corporate
planning. in a total of five joint meetings, the Supervisory
board and the Executive board discussed personnel and
business policy processes and a collective course. additionally,
the Supervisory board attended to the situation of
the Group in several internal telephone conferences.
Key topics at all the meetings were the strategic orientation
of the Muehlhan Group and the resulting operational
implementation. at the same time, the development of the
company’s four main areas of business in the international
markets was discussed. other key topics were the current
state of business performance and finances.
the Executive board provided required additional information
to the Supervisory board without delay verbally and
in writing. Even between meetings, the Supervisory board
was in direct contact with the Executive board, so that individual
questions about important developments and business
transactions at Muehlhan could be discussed and
decided without time delays.
Focal points during the 2007 deliberations
the following topics were discussed as focal points during
the meetings of the Supervisory board during the 2007
fiscal year:
the successful ipo in the year 2006, and thus the acceptance
of the business model by the capital market,
aroused expectations for the year 2007, which Muehlhan
was unable to fulfill to the extent in the short-term. in addition,
Muehlhan came under pressure at an early stage as
a result of individual factors like the challenging business
development for the uS subsidiary companies.
from the beginning, the project difficulties at the California
Golden Gate bridge were a subject of the deliberations
between the Supervisory board and the Executive board
such that the subsidiary company Certified Coatings
Company was able to assert the legal claims in a timely
manner and in close coordination. during the course of the
fiscal year, the Supervisory board regularly informed itself
about the current developments for the project. there was
a similar regular exchange regarding other elements of uS
activities, including the situation for the offshore service
provider Meaux and the continued weakness in the marine
sub-markets in the uSa. the Supervisory board included
the various individual factors in its considerations when
it engaged in the evaluation of the recommendations of
the Executive board for a restructuring of the american
subsidiary companies. in the deliberations with management
of the Muehlhan Group, the Supervisory board
was able to procure comprehensive insight into the extent
and effectiveness of the measures, and to support them.
7

8
the Supervisory board also deliberated regularly and comprehensively
on key topics in other regions and business
segments: these include the start of business in and the
prospects for the oil & Gas offshore business in the North
Sea and the expansion of activities in the Middle East and
asia. finally, the executive body also fulfilled its control
function by evaluating possible corporate acquisitions to
continue on the path of growth.
as a result of the developments in the uS market, the
Supervisory board together with the Executive board
advocated a significant acceleration of the presently-
ongoing installation of the control instruments and
processes. in the future, Muehlhan aG will use its integrated
management system, the compliance guidelines
and project controlling with additional increased intensity,
and will do so in all business divisions and regions.
Annual financial statements and
consolidated financial statements
the Supervisory board commissioned bdo deutsche
Warentreuhand aktiengesellschaft Wirtschaftsprüfungsgesellschaft,
Hamburg, to audit the financial statements
of Muehlhan aG and of the Group pursuant to the reso lution
of the Muehlhan General Meeting of 15 May 2007. bdo
audited the annual financial statements and the Group
consolidated financial statements of Muehlhan aG as
compiled by the Executive board according to the rules
of the international accounting standards ifrS as of
31 december 2007, as well as the management report
and the Group management report for the past fiscal
year, and provided them with an unqualified audit opinion.
the annual financial statements of the corporation and
the consolidated financial statements, the management
reports for the annual financial statements of the corporation
and for the Group consolidated financial statements,
the proposal for the use of the net profit for the year,
and the associated audit reports for the independent
audit were sent to each member of the Supervisory
board. at the meeting on 27 March 2008, the Supervisory
board once again thoroughly discussed and reviewed all
documents in the presence of the auditors.
as a result of the audits, the Supervisory board is of the
opinion that the representations in the annual financial
statements and the management report of the corporation,
the consolidated financial statements and the consolidated
management report convey a picture of the position of the
corporation and the Group with respect to assets, finances
and income that corresponds to the actual circumstances
based on the principles of proper accounting.
after the final results of its reviews, the Supervisory board
raised no objections against the annual financial statements
of the corporation and the consolidated financial
statements as compiled by the Executive board, or to
the results of the financial statement audits, and approved
the annual financial statements of the corporation
and the Group consolidated financial statements as of
31 december 2007. the annual financial statements are
therefore adopted. the Supervisory board agrees with
the proposal by the Executive board regarding the use
of the net profit for the year.
in the 2007 fiscal year, Muehlhan aG showed that it reacts
appropriately and professionally to challenges in the
international markets, and that the company stays flexible
and powerful as a result of effective improvements to the
structure of the corporation. the Supervisory board will
also work closely with and support the Executive board in
the future so that Muehlhan aG can successfully continue
on its path towards a sustainably secured future.
We thank the Executive board and the company’s employees
for their good work and high level of commitment during
the past year.
Hamburg in March of 2008
dr Wulf-dieter H. Greverath

ManageMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
Corporate
Governance
The principles of corporate governance form a central point of
reference for the business activities of the Executive Board and
Supervisory Board of Muehlhan AG. By focusing on them, we ensure
deliberately responsible management and control for Muehlhan AG
that is targeted at increasing company value and transparency.
Even though as a corporation listed in the Entry Standard our
company is not subject to the regulatory system from § 161 of the
Corporations Act, we have decided to comply with and implement the
set of rules from the German Corporate Governance Code in the
version dated 14 June 2007 while taking into consideration Muehlhan
AG’s company size and structure.
Shareholders and the Annual General Meeting
Many of our shareholders made capital available to the
company in the context of the increase in cash at the time
of the initial public offering. other shareholders became
co-owners of the company by purchasing the shares.
in doing so, they bear a portion of Muehlhan aG’s entrepreneurial
risk. the Executive board feels particularly
obligated to the shareholders, and provides for detailed
and transparent communications, systematic risk management,
compliance with the regulations of the German
Stock Exchange (deutsche börse), and consideration of
and respect for shareholder rights.
While strictly observing the requirement of equal treatment
for all shareholders, the company forwards to the public in
the field all company information that is relevant to the capital
markets via classic publications, its internet presence,
and with the assistance of independent news services. the
information appears in the German and English languages
and includes ad hoc announcements, press releases,
quarterly reports and annual reports in particular. in addition,
Muehlhan publishes all voting rights changes and notifications
from governing bodies regarding transactions in
Muehlhan shares. in doing so, it orients the company to the
guidelines for corporations with a listing in prime Standard,
independent of the fact that there is no corresponding legal
obligation for the Entry Standard. the shareholders are
informed of all important dates by means of a finance calendar.
it is updated regularly on the website and published
in the quarterly reports and annual reports as well.
Muehlhan offers the appointment of a proxy voter and
thereby enables its external shareholders the participation
at the aGM.
Collaboration between the
Supervisory Board and Executive Board
the Supervisory board of Muehlhan aG consists of three
members, as does the Executive board of the company.
the Executive board and the Supervisory board work together
closely and trustingly. the Supervisory board will
be informed by management on a regular, timely and comprehensive
basis regarding business development in the
individual regions and business segments, the company’s
strategy and planning, and the risk situation.
the Executive board and Supervisory board together
strive for additional improvement of the control mechanisms.
they regularly work together on transactions that
are relevant to the company, and ensure adherence to risk
and compliance guidelines. the Supervisory board provides
detailed information regarding the areas of emphasis
for its activities during the 2007 fiscal year in its report on
pages 7 and 8.
the Executive board and Supervisory board have
defined their common goal clearly: in 2008, Muehlhan aG
is to emerge from the challenges of the past fiscal year
with new strength. in the short term, the company is to
concentrate its efforts and restore its link to its well-known
earning power.
9

10
Compensation structure of the
Executive Board and Supervisory Board
the Executive board can be measured with regard to
compensation as well using the shared objectives. all
three members receive fixed and annually recurrent variable
compensation components. Non-recurring variable
compensation components are not scheduled. in addition,
along with the bonus plan described, the Supervisory
board can also issue virtual stock options in the context of
a phantom share program as an additional incentive for the
Executive board. Corresponding options were allocated by
the Supervisory board both to the Executive board and to
executive management personnel for the entire Muehlhan
Group most recently in the 2006 fiscal year. in doing so,
the beneficiary is granted a claim against the company for
a cash payment, the existence of which is dependent upon
reaching particular performance targets, and which is to
place the beneficiary in a financial position as if he or she
had acquired a share of the company at the issue price
and resold the share at the market price as of the date of
exercise.
the options on these so-called phantom shares can be
exercised only if the share of the company has experienced
an increase in value of at least 10% per year from the date
of allocation. for each share tranche allotted to him or her,
the beneficiary is bound to a staggered waiting period
which is two years for a third of the allocated options, three
years for another third, and four years for the final third.
Corresponding to the usual provisions, the members of
the Supervisory board receive a combination of fixed
super visory board compensation and a variable portion.
declaration oF conForMity
our management and the Supervisory board of Muehlhan
aG deal regularly with matters of good company management.
therefore, it is only logical for the company to orient
itself to the recommendations of the “administrative
Committee for the German Corporate Governance Code”,
referred to as dCGK below, to the extent that doing so is
reasonable given the size and structure of the company.
Muehlhan has already complied with the Code and its
material recommendations in the past. the company is
also currently in compliance with the requirements of the
current version of the Code dated 14 June 2007.
to the extent that individual recommendations from the
current version of the dCGK were not followed, or were
followed only to a limited extent, or if the company deviated
from them in another manner, or will deviate from them in
the future, the Executive board and Supervisory board
provide justification as follows:
With regard to Section 2 of the Code:
Invitation to the Annual General Meeting;
transmission by electronic means
in paragraph 2.3.2, the dCGK recommends transmission
of the invitation documents for the annual General Meeting
by electronic means, provided that the consent requirement
necessary for doing so was met.
When convening the annual General Meeting, Muehlhan
limits itself to the manner prescribed by statute for economic
and organizational reasons. the reports and documents
required by law for the annual General Meeting are normally
made available for inspection by the shareholders from
the date the annual General Meeting is announced, and
sent to a shareholder upon request, but not electronically,
because the consent requirement pursuant to § 30b paragraph
3 of the Securities trading act is not met. in addition,
the documents will be published on the company’s website
together with the agenda, provided that doing so is not
contrary to legitimate interests of the company, its shareholders
or third parties. all documents can be accessed
by the shareholders there.

ManageMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
With regard to Section 3 of the Code:
Collaboration between the
Executive Board and Supervisory Board
under Section 3.8, the dCGK recommends that a reasonable
deductible be provided in liability insurance policies
that a company takes out for the members of its Executive
board and Supervisory board (so-called directors and
officers liability insurance policies – d&o).
in principle, Muehlhan aG is not of the opinion that the
motivation and responsibility with which the members of
the Executive board and Supervisory board perform their
tasks can be further improved by a deductible of this kind.
the current d&o insurance contracts currently taken out
by Muehlhan aG therefore do not provide for any deductible.
for the reasons stated, no change is planned.
With regard to Section 4 of the Code:
Executive Board
in Section 4.2.2 clause 1, the dCGK articulates the recommendation
that the Supervisory board plenum is to provide
advice with respect to the structure of the compensation
system for the Executive board and regularly review the
contracts at the recommendation of the executive committee
that deals with the Executive board contracts.
the Supervisory board of Muehlhan aG consists of three
members. the formation of executive committees is therefore
not necessary. at the company, it is the responsibility
of all board members to deal with the Executive board
contracts. all members of the Supervisory board will
provide advice regarding the compensation system for the
Executive board, and will review it regularly.
Notwithstanding Section 4.2.5 of the dCGK, Muehlhan
does not include a separate compensation report within
the Corporate Governance report. the total compensation
for the Executive board is included in the figures in
the annual financial statements. the company views
the Executive board as a management team, and an individual
disclosure of the amounts would not have any value
as additional relevant information for the reader. in the
company’s opinion, the compilation of a separate compensation
report is unnecessary.
With regard to Section 5 of the Code:
Supervisory Board and Executive Board
based on the composition of the Supervisory board already
mentioned, the formation of committees provided for
in Section 5.3.1 is deemed unnecessary. this also applies
to the formation of an audit committee as recommended
in Section 5.3.2, as well as the formation of a nomination
committee as provided for in Section 5.3.3.
all members of the Supervisory board have the necessary
knowledge and experience in the application of accounting
principles and internal audit processes, and perform the
tasks intended for the audit committee and the nomination
committee collaboratively. the chairman of the Supervisory
board issues the audit mandate pursuant to the
resolution by the Supervisory board, and sets forth the
areas of emphasis for the audit in coordination with the
other members after detailed discussion in a meeting in
advance, and finalizes the fee agreement with the auditor.
in accordance with the remarks above, Section 5.2 clause
2 also does not apply when dealing with the Executive
board contracts.
in addition, in Section 5.4.1 the dCGK recommends that
age limits be determined for members of the Supervisory
board. Muehlhan aG view such a determination as a limitation
on the right of the shareholders to select the members
of the Supervisory board in a self-determined manner and
on the basis of the knowledge, abilities and technical skills
required. Muehlhan aG’s articles of incorporation therefore
include no such age limit.
accordingly, and notwithstanding the corresponding
recommendation by the German Corporate Governance
Code in Section 5.1.2, Muehlhan sets no age limit for
members of the Executive board, because this would
place a blanket limitation on the Supervisory board
with respect to its selection of suitable members of the
Executive board.
Hamburg, 27 March 2008
for the Supervisory board
dr Wulf-dieter H. Greverath
for the Executive board
dr andreas C. Krüger
11

12
Strategy
Our goal remains: We want to be ahead of the competition.
We are aiming for the position as the world’s leading service
provider for marine surface protection. In doing so, we are
concentrating on our core strengths: The application and
restoration of corrosion-prevention coatings on steel structures.
Along the way, we have already been able to work our way into
the group of the top 5 in our market in recent years.
Whoever wants to be right at the front must be able to react
with flexibility and a clear view of the requirements of the
markets. When in doubt, processes are to be changed and
structures are to be adjusted. in 2007, Muehlhan did everything
necessary in order to keep the company on its future
course: based on the operational events, we reviewed the
organizational processes and then established new structures.
today, the Group is invigorated and can attend to
the fragmented market for surface protection even more
effectively.
Economic point of reference is
“profitable growth”
in addition to the market objectives, we orient our actions
to solid commercial key figures: We will go down the path
of growth not at any price, but with a focus on the parameters
of profitability and healthy cash flow.
our economic objective is “profitable growth”. in this manner,
we want to establish our Group as a globally present
and networked company that can support its customers
at all relevant marine locations comprehensively. in order
to achieve this objective, we make use of three strategic
levers:
1. Growth from the core business:
Development out of the core markets and regions
on the basis of our overall strategy, on the basis of
general strategic competitive advantages, and taking into
account the opportunities that the markets offer to us,
we increasingly strengthen our business from the markets,
because even though our market is global, the
laws according to which it functions are regional. our
branch offices know their customers and link us to them.
Short communications channels enable speed in the
decision-making and coordination processes. as such,
we remain close to the customer and close to the project.
our focus on the core markets ensures that we concentrate
and use our strength where the potential and development
opportunities are the greatest.
in Ship Newbuilding, we can build on long-term customer
relationships. Having been included in the production
processes as a partner over the long-term, our company
will benefit from our customers’ good backlog of orders.
their full order books through the next decade ensure a
high degree of transparency with regard to our expected
activities. We want to further increase our sales by intensifying
the existing collaborations. in addition, we will acquire
more newbuilding shipyards as customers, particularly in
the growing newbuilding market China, and thus participate
in the high sales growth rates for shipyards there.
Each ship that is currently under way as a newbuilding
on the world’s oceans represents potential business in
the field of Ship Repair after its fourth year of service.
Muehlhan’s reputation as an exacting surface protection
company is excellent, especially for the overhaul of fundamental
ship parts such as water ballast and cargo tanks.
We will use our good reputation and our excellent knowhow
in this field in order to further expand our successful
work at European repair shipyards and in the Middle

ManageMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
East. in addition, in the future we will increasingly serve the
markets in asia with our presence there, and China and
Southeast asia in particular.
the Muehlhan Group has already worked for the offshore
industry for a long time. this includes more than a
decade of work at shipyards in the far East, as well as
maintenance work on platforms on the open ocean, for
example in the Gulf of Mexico or in the North Sea. the
Oil & Gas Offshore industry benefited from rising crude
oil and energy prices, but is also under great maintenance
and repair pressure at the same time. in the past few years,
Muehlhan has built up a great deal of know-how, and also
fulfilled all customer expectations even under adverse
weather and working conditions. in the coming years, we
want to expand this business unit through targeted sales
activities for existing customers and new customers to a
size that is comparable with our other business divisions.
With its multi-faceted range of services for a number of
submarkets, the Industry Services business division offers
great opportunities with low dependency on regions
or customers. our subsidiary companies evaluate the respective
market opportunities and operate with services
that are aligned with the regional and segmental characteristics
of the different industries and countries. as such,
we are active in the petrochemical industry in the Middle
East, and in Germany our scaffolding supports more than
just the marine business divisions with access technology.
out of denmark, our company is part of the energy revolution
and coats tower segments for well-known wind turbine
manufacturers.
With the strong existing locations, we will attend to these
business divisions regionally and selectively. in doing so,
we will concentrate on large, demanding projects. With
advanced and innovative individual solutions, we will
increase customer benefits and simultaneously increase
the profitability of our activities in doing so.
2. Top operational performance: Competitive advantage
through quality and technology leadership
our customers are convinced that we have safe work
procedures, that we work economically, and that we
act to protect resources when performing contract work.
for large corporations in particular, quality and the fields
of safety, health and environment (QSHE) long ago
became key criteria for the award of contracts.
for large projects, timely delivery is a mandatory requirement
for commercial success. Muehlhan is known for its
reliability, even under the most adverse conditions. our
well-trained employees are highly motivated and proud to
perform professional work in order fulfill the greatest customer
demands. Education and training are an essential
part of business management.
the conditions for the penetration of our markets are
supported on the side of know-how through processes,
technologies and highly modern machinery. Muehlhan is
constantly on the search for better solution options that
can solve varying customer demands. patent protection
for our own developments, or barriers to entry as a result
of high levels of investment provide limited opportunities
for the build up of corresponding power in the compe titive
environment in all of the fields in which we provide
services.
3. Targeted acquisition: Only those who fit in
with us become part of the Muehlhan Group
Even in the past, the Muehlhan Group grew by strengthening
itself by taking over other market participants: in the
future as well, we want to gain strength where it is strategically
and geographically advantageous for Muehlhan,
and where an acquisition can accelerate the development
of new markets through existing customer relationships,
know-how, patents or certifications. for each acquisition,
we review the potential access companies using solid
commercial standards.
13

Build up strength
where the potential
is the greatest ...
14

One is successful not primarily as a result
of size, but as a result of profitability.
We are increasing that now by concentrating
more on the markets with the greatest
development opportunities. Regionally,
they are Europe, Southeast Asia / China and
the Middle East. We follow demand in our
business divisions as well. In doing so,
we also make sure that the prospects for
follow-up business are good. We have
reviewed the global markets for their
opportunities for our business.
Based on this experience, we enter
new markets cautiously and selectively.
We strive for market penetration where
we have already set a course.
… in our core markets
15

16
From the
business divisions
Muehlhan serves the international markets for surface protection
with the four business divisions Ship Newbuilding, Ship Repair,
Oil & Gas Offshore and Industry Services. Based on a long history,
the marine markets are the primary focus when doing so. In recent
times we have been increasingly moving our core competencies
into new fields. One is surface protection for wind turbines. Also, the
service sector is gaining increasing importance. All in all, our Group
is extremely well-positioned: We can adapt to market developments
in a very flexible manner with a well-coordinated range of services.
ship newbuilding
Initial coatings for ship surfaces
Surface coatings for ships has been Muehlhan’s core
competence for many decades. When it comes to coatings
for ship newbuilding, we take on the entire project
for our customers – from planning to management and
implementation through quality management. Muehlhan
provides everything from a single source.
We are integrated into the work processes and value
added chains of our customers at the respective shipyard
locations. during the periods of construction of from
one half year to one year, our blasters prepare the ship
segments for their coating. the protective coating
system is subsequently applied, and then we release
the ships of our customers onto the oceans. a service life
of 30 years for the ships is not a problem with high-
quality surface protection.
increasing sea transport rates and high demand for
specialty ships are the cause of the current strong
newbuilding rates. We also do not anticipate a change
in this trend in the coming years. Muehlhan will greatly
benefit from this development in the future.
With regard to the coating work, Muehlhan focuses on
the rather demanding responsibilities in this business
division: this includes surface protection for water ballast
tanks. Water ballast tanks provide the required sta bility
for a ship with different cargoes. to coat them requires
special equipment, high quality standards and special
experience.

Continued and consistently good business
performance expected
during the past year, the Ship Newbuilding business division
provided a strong contribution to sales, primarily
through our German and European subsidiary companies.
We see very good opportunities for development throughout
the Group in the coming years, both for Europe and for
asia. Since the middle of 2007, Muehlhan has been represented
by a subsidiary company in what is anticipated to
be a large market in the future: China.
in addition to the ship market controlled by cargo and
commodities, great importance will be attached to the
construction of luxury yachts: Even today, the capacities
of our shipyard customers in this specialty segment are
booked up for the next five to six years.
Muehlhan anticipates good opportunities to consolidate
and expand its share of the newbuilding market at
a high level.
ship repair
ManaGeMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
Segment benefits from the
newbuilding boom of recent years
the newbuilding activity of today is also the repair business
of the future. a ship plies the world’s oceans for nearly
three decades. after the fourth year, a regular repair
and maintenance cycle commences which represents a
demand for inspection and renovation every ten years
for water ballast tanks and every three to five years for
underwater surfaces. We evaluate this demand using
professional resources, and through our international
subsidiary companies we implement the necessary measures
in a manner such that we provide rapid, optimal
service to customers along shipping and transport routes.
through appropriate planning in advance, and speed in
the maintenance and coating work, we ensure that negative
effects on the regular use of a ship will be minimised
to the greatest possible extent. all activities are performed
in strict compliance with the internationally-binding guidelines.
for this purpose we train our employees throughout
the Group to be coating inspectors through Germanischer
lloyd, and have them certified.
Future significance of the strategically important
repair markets in the Middle East and in Asia
today, far many more ships are starting their life cycles as
newbuildings than are being broken up. the market data
have shown this relationship for years. accordingly, the
ship repair market has grown very strongly in the last few
years.
Muehlhan was also able to participate in the general increase
in demand in the ship repair market. Currently, there
are clear indications that this trend will continue the coming
years. Even if there is an intermediate-term weakness in
the capacities of our newbuilding customers, business for
surfacing services will still be tremendous for decades in
the field of maintenance and repair.
17

18
oil & gas oFFshore
New growth in the offshore field
by the 1970’s, the Muehlhan Group had already transferred
its experience from surface protection for ships to oil
drilling and production platforms for the first time. in the
meantime, we have become active in the field not only in
the Gulf of Mexico and in asia, but also in the northern
North Sea, the region with the most challenging environmental
conditions in the entire oil & Gas offshore business.
the customers for whom we work are among the
most demanding in this market. formidable safety regulations
and quality specifications allow only a few providers
of services in the field of surface protection on platforms.
Muehlhan is one of them.
We are developing the offshore business division with our
Group’s proven strengths: our know-how and the high
level of training for our employees fulfill the requirements of
our customers for productivity, safety, quality and environmental
protection to the highest degree. at the same time,
we are fitting into the smooth production operation without
problems, and are making their unimpeded progress possible.
Sales increase with the potential for the future
if the sales trend develops positively, the oil & Gas division
will also become a stable and lucrative pillar of our
business activities. the rising world demand for energy –
driven in no small part by strongly growing players like in-
dia or China – requires increased investments by the oil
companies in their production facilities. this increases the
demand for high-quality surface protection services that
will be required in the future, and in the global context:
a service provider that operates around the world in a
reliable manner, with identical services of quality that are
always consistent.
Muehlhan is currently reviewing the ways in which the
Group’s global corporate network can be expanded for
a high quality service offering in the oil & Gas offshore
field that is comparable throughout the Group. at the same
time, existing customer relationships, including those in the
North Sea, are to be continuously expanded in the next
few years. the specific target for 2008 is to double the
number of man-hours, and to lead the business division
into profitability.
industry services
Strong sales growth in industrial market segments
With its specialty solutions, our industry division meets
customer requirements that are quite varied and often very
individualised. the services are performed in association
with the marine division, but also away from the water. as
such, we have since come to be among the top providers of
coatings for wind turbine tower parts, provide for optimum
surface protection for chemical and petrochemical and
tank and production equipment, and coat steel specialty

ManaGeMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
structures such as bridges, cranes and large machinery.
our Group’s own scaffolding ensures the fastest possible
access technology both in the construction of facades and
stands, and at shipyards.
a high degree of flexibility and the ability to offer customers
tailored solutions ensures Muehlhan an excellent position
in this diversified market segment.
Increasing importance due to growing submarkets
Muehlhan also seeks to profit primarily from the developments
in the field of wind energy in the future. the
wind energy market accommodates well the climate
and energy policies of governments of leading industrial
nations, which are currently shifting seriously. accordingly,
we expect significant growth rates and increasing
market share for our danish subsidiary, which is opera
ting from Scandinavia as a partner of international
size for the wind energy industry.
the industry business is also at the threshold of profitability
at other locations as well: our subsidiary company
in Qatar reached break-even for the first time with
contracts for petrochemical facilities at the world’s largest
industrial construction site in ras laffan. likewise in the
Middle East region, our company will also have sales from
our newcomers procon Emirates llC for the first time
in 2008 in a sub-segment of surface protection, the application
of fire-protective coating systems.
finally, Muehlhan Scaffolding provided a notable contribution
to the industry division – in no small part as a result of
stronger demand from our marine customers for encasement
and access technology.
19

Develop our
business from the
local sites …
20

The marine markets are interconnected
around the world. Ostensibly. At second
glance, they are the result of a system
that is quite regionalized. The business
grows out of the local sites. Even our
existing partner companies, small and
large, make decisions and take action
purely at the local level. We adapt to this
by developing our business from stable
branch offices using local strategies.
Using short communications channels
from the local sites to Hamburg and back,
we accelerate the necessary coordination
and decision-making processes, and with
controlling throughout the Group, we
ensure profitability. In the future, we will
develop our business even more from
the markets – close to the customers
and directly at the project.
... with local strategies
21

22
Our Share
Turbulent market price trend after the turn of the year.
Corresponding to the trend for business, 2007 turned out to be quite
variable for the market price of Muehlhan shares as well. The good
market price performance for Muehlhan shares as of the end of 2006
initially continued into the 1st quarter of 2007. As early as the beginning
of January, the market price broke through the EUR 7.00 mark for the first
time: It was able to advance decidedly in the next month as well with
regard to trading volume. However, this trend was supported only in
part by the company’s fundamentals: Momentum based on rising demand
and increasing attention to Muehlhan AG, even in the print and internet
media, initially provided an extra boost the market price as well as
expectations for corporate earnings in 2006. The all-time high of EUR 9.70
at the end of February was followed by a market price correction to
below EUR 5.00 after the publication of the preliminary results for 2006.
because earnings as of the 1st quarter of 2007 and the
first six months were still unable to show any definitive
improvement in Muehlhan aG’s performance in various
regions and sub-markets, this trend continued through
market prices below the Eur 4.00 mark. a drawback for
the shares was noticeable both prior to the publication of
the Q3 report and the preliminary figures for 2007.
price development
in %
7
6
5
4
3
Muehlhan aG
March May July Sept. Nov. Jan.
the share still showed no recovery trend even at the beginning
of the year. However, we assume that these negative
expectations will reverse again with evidence of improved
earnings in 2008.
all in all, during the period from 1 January 2007 through the
end of the year, scarcely 16 million shares of the company
traded.
Muehlhan maintains regular and intensive
contact with institutional investors
Muehlhan fosters regular contact with its investors, and
with institutional investors in particular. Even in the critical
operational phases, the Executive board responded to the
questions of analysts and investors by providing reports
about the company and the prospects in roadshows and
in conference calls. in the meantime, Muehlhan has regular
investors that include investors from all over Europe,
in addition to the well known German fund companies.
the institutional investors make up the bulk of the nearly
42% of free float.

ManaGeMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
Coverage by analysts expanded
Since the ipo in october of 2006, Muehlhan shares have
been followed by West lb. an additional bank, berenberg
bank, joined in at the end of the 1st quarter of 2007. With
the analysts from both institutions, the company, business
development and prospects were discussed regularly
and in detail during the past fiscal year. in their reports,
both banks come to the conclusion that the Muehlhan
shares are undervalued, and indicate significantly higher
price targets. in addition to initial studies, both banks
create updates on a regular basis and make them
available to their own sales forces for internal use, as is
customary in this context.
in the future, Muehlhan aG will expand the information
it offers to its investors and interested parties by means
of an additional research offering: in addition to the
banks already mentioned, the renowned analyst institution
SES research GmbH will provide coverage of
Muehlhan that is generally accessible, above all.
Capital market communications further
improved qualitatively and quantitatively
for Muehlhan aG, the beginning of the 2007 fiscal year was
accompanied by the start of important changes in communications
with the capital market. Since May, the company
has met the growing demands for the type, scope and format
of information that is relevant to the market with the
introduction of international accounting in accordance with
ifrS (international financial reporting Standards). at the
time, a semi-annual report was published for the first time
in the middle of 2007. Since the 3rd quarter, Muehlhan also
exceeds the requirements of Entry Standard, and reports
on a quarterly basis regarding business development for
the Group.
at the end of the fiscal year, Muehlhan introduced a new internet
presence online at www.muehlhan.com. Since then,
investors and other users can access comprehensive and
timely information about the company at a compact and
clear site. all of the website is offered in German and English
and will be updated continuously.
shareholder structure as
of 31 december 2007
portion
in %
portion
in shares
GiVE Maritime & industrial
Services GmbH
Greverath investment
10.33 2,014,000
Verwaltungs- und Erhaltungs-Gbr 23.85 4,650,000
SGCE investments i S.a.r.l 21.19 4,133,000
Management 2.12 413,000
dr andreas C. Krüger 2.07 403,000
Carsten Ennemann 0.05 10,000
free float 42.51 8,290,000
100.00 19,500,000
free float
43%
Management
2%
Key figures for the shares:
Nominal value (arithmetic)
GiVE Maritime &
industrial Services GmbH
10%
GiVE Gbr
SGCE
investments i S.a.r.l.
21%
bearer shares with
no par value
Number of shares issued 19,500,000
initial listing 26 october 2006
issue price Eur 5.80
Highest price (Xetra) 2007 Eur 9.60
lowest price (Xetra) 2007 Eur 3.00
designated Sponsor Westlb aG, düsseldorf
Market capitalization
as of 31 december 2007 Eur 67,665,000
24%
23

Win customers
with our operational
strengths ...
24

In our industry segments, a technological
advantage over the competition is very
helpful, but not critical. Safe processes and
high-quality results are what win over our
customers. Size is also important, because
our customers associate strength and
contractual security with it. When we
provide safety and quality, we are also
efficient, and efficiency is a big step
towards profitability – provided the numbers
add up properly. In order to achieve this,
at last we carefully illuminated our
procedures and mapped out controlling
throughout the Group – technically via
corresponding quality assurance, commercially
and strategically via corresponding
risk management. Now we are moving
forward at a steadfast pace.
... of safety and quality
25

26
Group
Management Report
positioning and strategy
Services in the surface
protection field on three continents
Muehlhan aG (MyaG) is the holding company for a total
of 36 subsidiary and sub-subsidiary companies in Europe,
the uSa and asia. of those, 33 companies are currently
consolidated. the Group has a global presence as one
of the leading providers of services in the field of surface
protection for steel constructions. business activities
include work on ships as well as offshore facilities and
industrial facilities.
in the 2007 fiscal year, the Group had total revenues
of Eur 196.1 million. it was therefore just above the
level from the previous year (2006: Eur 184.4 million)
by 6.3%. our Group had Ebt of Eur 1.1 million in 2007
(previous year: Eur 6.3 million). Consolidated net profit
before minority interests was Eur 0.5 million (previous
year: Eur 3.9 million), and after minority interests
Eur -0.1 million (previous year: Eur 3.6 million). the
Muehlhan Group had an average of 2,396 employees
in 2007 compared to 2,318 employees in the 2006 fiscal
year.
Muehlhan aG itself performs strategic management tasks
for the Group (Company strategy and business development,
marketing, internal audits, financing and controlling,
investor relations, and research & development) and provides
centralized service functions for the various subsidiary
companies (accounting, it and personnel).
Four business divisions
determine the operative activities
in addition to pure surface protection work – divided primarily
into the “marine” and “industrial” segment – in the Ship
Newbuilding, Ship repair, oil & Gas offshore and industry
Services segments, the Group provides services in the
related business segments steel construction and access
technology.
the Ship Newbuilding division still occupies a significant
portion of our efforts. as an essential part of the production
process of our customers, we have been integrated
at many shipyards for years. our work includes surface
protection in the Ship Newbuilding segment, in particu-
lar for new construction of container ships, oil, gas and
product tankers, cruise ships, other merchant ships and
naval vessels.
in the Ship Repair division, the Muehlhan Group provides
services in the field of maintenance and renewal of surface
coatings for ships. the range of offerings extends from
short-term repair work on the outer hulls of the ships to
elaborate renovation of water ballast and cargo tanks.
in this business segment, our clients are ship owners and
repair shipyards that do not themselves perform maintenance
on and renewal of surface protection, or only do so
to a limited extent.
in the Oil & Gas Offshore division, the Muehlhan Group
offers its services both for new construction as well
as for the repair and maintenance of offshore facilities.
offshore installations include all stationary and floating
drilling, treatment and production facilities. our customers
are exploration and oil and gas production companies, as
well as newbuilding and repair yards.
the Industry Services division includes surface protection
for steel structures outside the marine segment, in
particular for steel hydraulic structures, refineries, chemical
and petrochemical production and tank facilities, wind
turbines, steel bridges and cranes. at the same time, this
business division deals with all related business segment
services, such as the provision of scaffolding and access
technologies in the Ship Newbuilding business and Ship
repair business, and even steel construction work for our
maritime customers. the industry Services segment provides
services to third parties, both directly and indirectly,
through the other business divisions.
Goal and strategy: Become established as a
market leader in the intermediate term with
profitable growth
our goal is profitable growth, with which we will grow to
become the market leader in our segment within the next
few years. our strengths benefit us in this manner: in a
fragmented competitive environment we are an ideal business
partner and collaboration partner for large customers
with our technical know-how, our high quality standards
and our virtually global presence.

ManaGeMent divisions share group ManageMent report Group Consolidated FinanCial stateMents
in our markets, we focus our activities on the key growth
regions for Ship Newbuilding and Ship repair. they are
the regions of Europe as well as asia in particular. We are
established in the markets there with our own locations
and can earn steady income in our core business. We also
have a presence in the united States.
Management and control performed
on the basis of proven principles
the Executive board and Supervisory board are in regular
contact regarding the operations of the Group that are
relevant strategically and economically. the two executive
bodies cooperate closely, and even engage in discussions
outside of the scheduled meetings.
the Group is managed from by the holding company in
Hamburg, and executive management is in close contact
with the subsidiaries. after the dissolution of the continental
management system during the past year (see comments
below), this contact has once again become more
immediate and direct.
The responsibilities of the
Executive Board were reassigned
during the past year, the Executive board reorganized responsibilities
within the executive body. instead of responsibility
for specific regions and business segments, purely
functional responsibility was approved. accordingly, the
chairman of the Executive board dr andreas C. Krüger is
responsible for the Strategy, Marketing and Sales divisions,
bernd Janssen for the operations, Materials administration
and technical audits divisions, and the Chief financial
officer Carsten Ennemann for the finance, Controlling,
investor relations, legal, personnel und financial audit
departments.
Research and development: Foundation for the
maintenance of our technological lead
We handle research and development for the entire Group
at the Hamburg location. the department employs one
scientist and five technicians who continue to develop the
technologies and devices used by the Group. as a result,
the Group has always been able to gain a technological
lead with respect to competitors in the past, and thus make
a significant contribution to the success of the Group.
Existing branch offices
domestically, we do not maintain any legally independent
branch offices apart from our subsidiary companies.
abroad, our Greek subsidiary company Muehlhan Hellas
Sa, athens, maintains an independent branch office in
istanbul, turkey.
general conditions and
business perForMance
DEVELOPMENTS IN THE
BUSINESS ENVIRONMENT
Global economic situation
continues to be favourable
the world economy continued to expand during the course
of the fiscal year. However, growth weakened slightly in
comparison to 2006. thus, the current estimates for real
growth in gross domestic product (Gdp) for the year 2007
for all major economic areas are slightly less than the
growth rates of the previous year. the asian countries,
in particular China and india, and the countries of
latin america are still experiencing economic growth far
greater than average, in accordance with the forecasts.
in the united States, growth of 1.9% fell well short of the
previous year’s figure (2.9%) With a growth rate of 2.6%,
Germany was at the level of the Euro area (2.6%), but
less than the previous year’s figure of 2.9%.
Market for marine surface protection continues
to be characterized by positive developments
the business of marine surface protection is currently affected
by two global trends: the first is the disproportionate
increase in global trade over the past seven years, and with
China in particular. a boom in Ship Newbuilding is associated
with it. in most cases, new construction capacities
are already fully booked through 2012. because of steel
surface maintenance work that typically occurs at intervals
(10 years for a ship’s interior, 5 years for the external areas),
the industry benefits from new each ship completed as
a result of prospective maintenance work.
27

28
the second: Energy commodity costs are also increasing
with growing world energy demand. that makes it
appealing for the operators of exploration and production
facilities to extend operational lives and to delay scheduled
maintenance work as much as possible when doing so. in
recent times, this has resulted in a significant maintenance
shortfall. the awareness of the requirement for these
maintenance measures, which was not very pronounced
in the past, has finally been aroused in the recent past as
a result of serious damage to oil pipelines, tankers and
exploration and production facilities. as a result of the
negative image in the public caused by the damage, and
as a result of increased environmental requirements, oil
companies are finding themselves disposed to perform
many billions of Euros worth of maintenance work in
the coming years.
Group of providers for marine
surface protection still heavily fragmented
around the world, a large number of small and mediumsized
providers in the field of marine surface protection are
confronted with this strongly increasing demand-driven
market. at the same time, only eight providers around the
world are of a size comparable to our Group. We assume
that, due to the worldwide reputation of our trademark “µ”
and the high level of quality, we will be the market leader
in mid- to long-term perspectives as a result of market
consolidation and the acquisition of competitors.
business developMent
Despite revenue growth, rather
moderate earnings’ development
Muehlhan Group’s development is driven primarily by the
development of our subsidiary companies. their business
is in turn strongly affected by their backlog of orders and
by the profit situation of our customers. this was an
important reason why, in the previous year, we can still
look back on a result that is nearly break-even despite a
series of economic challenges.
Sales of EUR 196.1 million
in the prior fiscal year, the Group had sales totalling
Eur 196.1 million. Compared to the previous year’s sales
of Eur 184.4, this represents an increase of 6.3%.
in the Ship Newbuilding division, we enjoyed good order
volume in Europe. our customers are working at high
capacity utilization and currently have full order books
partially through 2012. all in all, the new construction
segment was nevertheless affected by the withdrawal
from some shipyards in Norway and missing follow-up
contracts of our american customers. overall Muehlhan
achieved sales in this segment of Eur 65.7 million, falling
short by Eur 5.8 million compared to last year’s figure.
in the Ship repairs division, Muehlhan benefited from the
start of a growth trend that might last for a long time as a
result of the high level of Ship Newbuilding work in the past
years and coming years. in this field, the Group was able
to register growth of 20.8% with sales of Eur 45.1 million
(previous year: Eur 37.3 million).
in the offshore oil & Gas business division, sales fell
with Eur 13.6 million short of the previous year’s sales
(Eur 17.6 million) by 22.5%, despite the extension of the
business to the northern North Sea. We were not able
to compensate for the decline in uS business in the Gulf
of Mexico with the new business in Europe. the reason
for the significant decline was the – from our perspective –
illegal poaching of customers and employees by a former
chief executive officer.
the industry Services business segment turned out quite
well. as a result of the broad diversification of our service
offerings, we were able to expand the division into a
strong sales contributor. Sales for the reporting period
were Eur 71.5 million, and thus a good 24.3% greater
than the same period last year (2006: Eur 57.5 million).
Earnings of EUR 2.9 million EBIT
as a result of the unplanned burdens for the earnings in
the uSa and in Norway, and the partially delayed starts of
projects in the Middle East and in Great britain, earnings in
particular remained significantly below expectations: Ebit
was Eur 2.9 million and was therefore Eur 5.2 million
less than the previous year (Eur 8.1 million).

ManaGeMent divisions share group ManageMent report Group Consolidated FinanCial stateMents
our uS subsidiary company Muehlhan Marine inc. (MMi)
Houston, texas, was not able to make use of anything
even close to its production capacity, and had to reduce it
by cutting jobs to a considerable extent (contribution
margin: Eur -3.0 million). furthermore, there were
project difficulties for Certified Coatings Company (CCC)
on a bridge renovation contract in the uSa (contribution
margin: Eur -2.9 million); the success of this project was
negatively affected to a considerable extent as a result of
– in our view – deliberately false information in the context
of a corporate takeover. in addition, we experienced
significant competition for customers and employees
from a former managing director at our uS subsidiary
company Meaux, which is active in the offshore business.
the burden on Group earnings as a result of the uS
activities was a total of Eur 7.3 million in Ebit for the fiscal
year. in the previous year, the uSa was still able to make
a positive contribution of Eur 1.9 million.
in the North Sea business, a retroactive reduction in contract
volume as well as a month-long delay in the commencement
of a project for maintenance work on oil
platforms for an international oil company, led to a shortfall
in the recovery of full costs for our offshore subsidiary
Muehlhan Surface protection ltd., aberdeen, Great britain
(MGb). We had to abandon contracts involving a loss in
our Norwegian subsidiary company Muehlhan Norge aS
(MNo). Contributions from both companies added up to
Eur -1.9 million (previous year: Eur -2.5 million).
a marked currency exchange rate increase of the Euro
also put pressure on earnings (Eur -2.1 million).
the write-off with respect to our Chinese subsidiary company
MCN by the seller, a company affiliated with our chairman
of the Supervisory board dr Wulf-dieter H. Greverath,
led to an improvement in earnings of Eur 2.0 million. the
write-off became necessary due to the general regulatory
conditions in the Chinese legal environment.
results oF priMary and
secondary reporting (overview)
in kEur
External sales
revenue EBIT *
2007 2006 2007 2006
Europe 156,843 131,132 14,004 11,234
america 26,730 44,753 -7,280 2,127
asia 12,399 8,152 1,952 -840
Central division /
consolidation 120 352 -5,815 -4,417
Total 196,092 184,389 2,861 8,104
* profit from operations
rounding differences may occur.
in kEur
External sales
revenue EBIT *
2007 2006 2007 2006
Ship Newbuilding 65,710 71,564 2,561 3,247
Ship repair 45,086 37,334 6,695 4,250
oil & Gas offshore 13,647 17,616 -2,605 1,868
industry Services /
others 71,529 57,522 2,025 3,156
Central division /
consolidation 120 352 -5,815 -4,417
Total 196,092 184,389 2,861 8,104
* profit from operations
rounding differences may occur.
US activities have a significant negative
effect on 2007 business development
there is a lack of significant Ship Newbuilding contracts
at the two shipyard locations in San diego, California, and
avondale, louisiana. a series of nine large tankers was
finished in 2007 after a total construction time of three
years. New contracts for similar commercial vessels were
not available. We therefore had to reduce our staffing
level early in the year at both locations. in the industry
sector, a major maintenance contract was put out for bids
in the first half of 2007 and awarded to a competitor.
29

30
despite the rapidly initiated and implemented reorganization
program, MMi contributed a loss of Eur 3.0 million
to consolidated net profit.
during the renovation of a portion of the Golden Gate
bridge by our subsidiary company CCC, significant difficulties
arose in 2007, which – in our view – can be attributed
primarily to intentionally false contractual information:
on the one hand, the terms and conditions of the invitation
to bid were incomplete with respect to a decisive point related
to the scope of services. on the other hand, based
on today’s knowledge, we are convinced that the seller and
subsequent managing director of the company knowingly
withheld essential information from us. We are currently
engaged in a legal proceeding in the case with two opponents:
in July of 2007, we sued our direct client, a joint venture
between a large exchange-listed Japanese company
and a medium-sized american company, for compensation
for damages in the amount of uS$ 3.8 million and
accounts receivable due of uS$ 2.5 million (overall uS$ 6.3
million) due to incomplete bidding documentation. to date,
the client has acknowledged the latter only to the extent of
uS$ 1.3 million, but initially retained it while making its own
claims for compensation for damages. furthermore, he is
making a claim for an additional uS$ 2.0 million without
further explanation of the legal grounds, for which we have
created no reserves for the lack of concrete terms. to date,
we have already been successful in two proceedings with
regard to the determination of legal jurisdiction. We expect
that the proceedings will be decided in our favour in the
coming months. in addition, we are reserving the right
to sue the former shareholder and managing director for
compensation for damages as a result of false contractual
representations to the extent to which we may be unsuccessful
in the proceedings mentioned above against
the first opponent, despite positive expectations. for this
reason, we are currently retaining the second and final
purchase price instalment of uS$ 1 million still outstanding
on the purchase price resulting from the corporate
ac quisition.
Even though we assume that the legal dispute will be decided
in our favour, we have allowed for a total of Eur 2.9
million as losses for the project. together with attorneys’
fees of Eur 0.2 million incurred to date, the project therefore
reduces consolidated net profit by Eur 3.1 million.
at our uS subsidiary company Meaux, which is active in
the offshore sector, as expected there was strong competition
for customers and employees, because a managing
director who left at the end of 2006 had founded a competing
company during his employment by Meaux. a legal
proceeding is pending here due to actions in bad faith. the
reduction in price resulting from the situation has caused
Meaux to add a loss of Eur 0.7 million to consolidated
net income. in the meantime, we were partly able to win
back lost customers such that that we are confident that
our competitive situation will improve significantly in the
coming months.
Restructuring program in the USA leads
to cost savings of EUR 2.5 million in 2008
as a result of the lack of sales successes and the existing
overcapacity, a comprehensive restructuring program was
started in June. in the course of the restructuring program,
the continental management level was abolished and
administrative expenses were significantly reduced. the
program has since been completed and will result in cost
savings of more than Eur 2.5 million starting in 2008.
MMi (formerly Sipco) now has a structure whose costs
are covered by existing work. if the remaining work
decreases even more in the future, a closure of the
entire shipyard operation would be considered. the closure
costs arising as a result, however, can be estimated
as being insignificant.
Delays in Oil & Gas Offshore business inhibited
overall business development
the formation of a contract for the maintenance on three
offshore platforms by our subsidiary company MGb as
described under sales trends led to the inability to recover
full costs. in the year 2006 we were successful in winning
an international oil company as a new customer in the
northern North Sea territory, which held out the prospect
of a contract volume of Eur 13.0 million distributed over
24 months. during the course of additional negotiations,
the volume was rapidly reduced to approximately Eur 8.0
million pending further notice, such that the productivity
and profitability of the contract was significantly impaired,
in no small part due to performance rendered in advance
such as training programs, and the failure to make of use
µ-jet technologies.

ManaGeMent divisions share group ManageMent report Group Consolidated FinanCial stateMents
Consequently, agreements were made for 2008 and the
subsequent years, which provide for the fair acceptance of
additional costs, and which includes an expansion of the
business activity at the same time. as such, the conditions
for favourable business performance in 2008 exist.
Unprofitable business rejected in Norway
the Ship Newbuilding contracts at a Norwegian shipyard,
which have been the source of losses since the
end of 2006, were terminated by the shipyard during the
first quarter of 2007 such that our subsidiary company
Muehlhan Norge aS (MNo) lost about half of its sales in
comparison to 2006. in this context, legal claims were
made by the shipyard within the framework of warranty
claims. on the other hand, our subsidiary company has
claims of nearly the same amount for services provided
in the year 2006, as well as for demobilization costs
to which it is contrac tually entitled.
Middle East subsidiary company MDQ
breaks even in the fourth quarter
in the past year, our subsidiary company Muehlhan
dehan Qatar W.l.l. (MdQ) was able to establish itself
successfully at the world’s largest industrial construction
site ras laffan, where currently several gas liquefaction
facilities are being built. MdQ performs surface
protection work there on tanks, pipelines and on production
facilities. project delays on behalf of our customers
led to idle periods, which the new founded
subsidiary was not able to fill up with additional contracts.
Since the commencement of other projects in
November 2007, we have been able to avoid downtimes
through appropriate production control.
despite the initial losses, we consider our entry into the
market in Qatar successful. MdQ was able to establish itself
in the market successfully, now has a solid customer
base, and in doing so offers considerable growth potential
within the approximately 80-square-kilometre industrial
region being developed. in the last quarter, MdQ provided
a positive contribution to the Group’s earnings for the first
time. all in all, there was a loss of Eur 0.3 million during
the first year of operations.
Currency exchange rate fluctuations
foreign currency exchange losses due to the strong
Euro reduced the Group’s earnings by a total of Eur 2.1
million. the major currencies in which the losses occurred
at the Group level are uS$ (Eur 1.0 million), united arab
Emirates dirham and Qatari rial (Eur 0.4 million), and
british pounds (Eur 0.3 million). With a revised financing
structure in the Group, we will be able to significantly
reduce the effects of future currency exchange rate fluctuations
on the income statement starting in 2008.
Sustainable positive development
outside of the USA
the decreasing effects on sales are offset by a series
of positive effects, which caused revenues of Eur 196.1
million to move slightly above last year’s range, without
taking into consideration the effects of consolidation
(initial consolidation effect for CCC of nine months and
for MCN of six months). the main effects were
• continued strong growth in the
European Ship Newbuilding business
• increasing Ship Repair business at nearly all of
our subsidiary companies in Europe
• robustly growing wind turbine business,
which continues to add earnings potential
through the expansion of production capacity
European newbuilding
shipyards with strong order backlog
backlogs for the European newbuilding shipyards are at
their historic highs. Some capacities are booked partially
through 2012. New capacities are developing, especially
in southeast Europe. However, shipyard capacities are
being expanded even in northern Europe, particularly in
specialty shipbuilding.
as a result of the many years of positive collaboration
and close integration into the production processes of
the shipyards, we assume that we will continue to profit
from this development in the coming years.
31

32
Ship Repair business growing robustly,
great potential for the coming years
the Ship repair business is already growing better than
ever expected. this appears to be the harbinger of growth
that will most likely continue to last for decades. as a result
of the heavy increase in Ship Newbuilding activity, the
demand for repairs will increase by a multiple in the next
few years. With an average useful life of about thirty years,
only a fraction of the transport volume added as a result
of the new construction will be deducted as a result of the
withdrawal from service of old ships from the repair market.
the total volume of steel to be processed, which is in the
so-called repair window (ships starting from the fifth year
through withdrawal from service), will therefore continue to
increase exponentially over the coming years.
Muehlhan expands presence at
manufacturers of wind energy turbines
Muehlhan was able to further strengthen its position
as the market leader in the rapidly growing field of initial
coatings for steel towers for wind turbines. by the end
of the fiscal year, we were also able to finalize a multi-
year production contract for an american wind turbine
manu facturer working in denmark for a total volume of
Eur 36.7 million. because of it, we expect additional
business, even outside of Europe.
position with respect to
net assets and
Financial positions
Investments in fixed assets
in the amount of EUR 12.5 million
as a result of the capital increase of Eur 22.3 million
which occurred at the time of the initial public offering,
it was possible for us to make various expansion investments,
and to acquire three other companies.
due to the excellent order volume of our sub sidiary
company Gerüstbau Muehlhan GmbH, Hamburg, we
invested more than Eur 2.0 million in additional scaffolding
material. at our subsidiary company Haraco,
Singapore, we invested approximately Eur 2.1 million in a
new location. the previous location had to be abandoned
due to the expansion of the shipyard operations of our
client and our own need for space associated with it.
likewise, we made an investment at a new location for our
company Meaux inc., lafayette, uSa, which is active in the
offshore sector. the old location had been destroyed by
hurricane Katrina in 2005. all in all, Eur 1.0 million was
invested in tangible assets here during the fiscal year.
for the first time as of 1 July 2007, we consolidated
Muehlhan Corrosion protection Service Co. ltd. (MCN),
with headquarters in Shanghai, China, which was acquired
on 15 September 2006 from our chairman of the Supervisory
board and shareholder dr Wulf-dieter H. Greverath.
the purchase price was Eur 0.8 million. by taking over
the company, we have secured a presence in what
will be the world’s largest Ship Newbuilding and Ship
repair market, and which is important to us.
Within the fourth quarter of 2007, we acquired two
companies in the united arab Emirates. both companies
carry the name procon and have their headquarters in
dubai and abu dhabi. the companies are active in the field
of passive fire proofing, which means the application of
fire-protective coatings. by taking over these companies,
we assume that growth in the region will accelerate considerably
and that synergies with the corrosion protection
business will be realised both on the client side as well
as with the provision of labour.
New arrangements of corporate bond terms
the weak earnings situation caused us to be unable
to fulfil two of a total of three major terms of our bond
issue of Eur 35.0 million floated in 2006. the ratio of
earnings before interest and taxes to financing costs,
as well as earnings before depreciation, interest and
taxes to gross debt were not fulfilled.
in the middle of March 2008, an addendum agreement
(“amendment”) was approved by the bond creditor, a
uS american insurance company, according to which
it waives the termination right to which it is entitled
as a result of the violation of the bond terms. in return,
in december 2007 we pledged half of the Eur 10.0 million
amount for an expected term of 14 or 26 months.
We were able to avoid an interest rate adjustment in
this manner. the liquidity position of the Group is not
en dangered as a result.

We issued a letter of credit for uS$ 5.0 million for
our subsidiary company Certified Coatings Company,
Concord, California (CCC). it serves to secure contractual
performance for the uS$ 19.5 million-contract for the
new construction of the New oakland bay bridge in
San francisco. it is expected to run until 2013.
position of the group
Assets
2007 2006
total assets in kEur 128,319 122,767
debt-to-equity ratio in % 53.5 51.7
Equity in kEur 59,714 59,287
Equity ratio in % 46.5 48.3
Financial position
Cash flow in kEur 9,365 13,930
investments in fixed assets in kEur 12,531 7,795
Earnings position
Sales in kEur 196,092 184,389
other operating income in kEur 6,535 4,498
Ebit * in kEur 2,861 8,104
Ebitda ** in kEur 9,362 13,878
* profit from operations
** profit from operations and depreciation
rounding differences may occur.
personnel
ManaGeMent divisions share group ManageMent report Group Consolidated FinanCial stateMents
Number of employees increases slightly
in principle, the Muehlhan Group bases its staffing needs
on the volume of business for the projects to be worked
on. Especially in the case of short-term or temporary contracts,
a portion of the personnel requirement is covered
by external workers. in the case of long-term projects with
a sustainable volume of business, we have established
our own staff during the course of the fiscal year.
With an average number of employees for the year of
2,318 for the 2006 fiscal year, the staffing level for the
Muehlhan Group increased up to 2,396 during the
previous year.
2007 2006
Europe (incl. Central divisions) 1,568 1,514
america 430 556
asia 398 248
Total 2,396 2,318
the regional distribution and the increase in the labour
force is based primarily on the sales growth in the Group:
finally, in the uSa, where sales were weak, high-cost jobs
were phased out, while new employees were hired in the
booming markets in the Middle East and southeast asia,
and there mostly at relatively favourable contract terms.
environMental protection and
health and saFety Measures
Environment-friendly processes with efficiency
in the context of our QHSE (quality, health, safety, and environmental
protection program), we pursue environmental
protection actively. as one of the first providers in our industry,
our subsidiary companies have converted surface
blasting procedures from the use of copper slag for cleaning
steel surfaces to the steel grit recycling process (µ-arc),
which is markedly more environmentally friendly. by doing
so, each year the Group avoids the creation of considerable
amounts of hazardous waste.
33

34
the dust-free µ-jet process that we developed is a process
which combines the dryblasting process with the environmentally-friendly
water-jet process, and in doing so actually
surpasses the productivity of the dryblasting process.
this process has proven to be particularly suitable for work
on offshore facilities, because surface protection work
can be carried out even during the operation of the facility
because dust is prevented. the µ-jet process is based on
a jet technology for which we have finalized an exclusive
global licensing agreement with the patent holder. We
have developed this process further for the purposes
of marine surface protection and consider it a clear
technological advantage over our competitors.
risK and opportunity
ManageMent
GENERAL ASSESSMENT
Risks jeopardizing the existence
of the Group are not apparent
from today’s perspective, there are no risks jeopardizing
the existence of the Group worthy to mention that could
have a material influence on the company’s position with
respect to net assets, financial position and results of
operations. the significant decrease in liquidity in the
fiscal year is attributed to a combination of one-time effects
(investment in separate assets of securities; financing of
losses of subsidiaries, especially in the uSa). both our
organisation and our control systems are suitable for
managing exis ting risks in the best possible manner, and
noting newly emerging risks as quickly as possible. the
organisational changes in the fiscal year 2007, in particular
the structural adjustments of our uS operations, the
implementation of a technical audit, and the consistent
use throughout the Group of the Nod operational data
acquisition system have made significant contributions
for this purpose.
With ongoing market observations and a regular exchange
within and outside of the Group, we ensure that we detect
opportunities that our submarkets offer to us in a timely
manner.
in principle, the risk policy of the Muehlhan Group is based
on increasing the value of the company through profitable
growth. Mandatory internal company rules of conduct are
reviewed and supported by means of control measures.
RISK MANAGEMENT SYSTEM
Introduction of a risk management system
pursuant to § 91 paragraph 2 of the German Stock
Corporations act (aktiengesetz / aktG), the Executive
board must take appropriate steps, and set up a monitoring
system in particular, so that risks that threaten the
company as a going concern are identified in a timely
manner. for this purpose the company makes use of an
adequate reporting system, which organisationally is the
responsibility of the Executive board. in addition to quantitative
reporting in the form of controlling reports, the
Executive board receives qualitative reports from the
specialized departments of the holding company. in this
manner, we ensure throughout the Group that all
managing directors at the subsidiary companies and
all departments are regularly obligated to engage in an
independent review of their work and responsibilities
for possible liability risks, financial risks, and risks with
regard to customer relationships. the Executive board of
the Group will receive reports with respect to important
issues from the departments at different intervals, but at
least once each month. in order to identify trouble at the
subsidiary companies’ operational construction sites, and
to take care of it as quickly as possible, the progress of
the work and the hours worked on the individual contracts
is recorded and compared to the budgeted data.
We began the systematical introduction of a risk management
information system during the past fiscal year, with
which all risks can be documented, and with which measures
for the minimisation of these risks are updated on
a regular basis throughout the Group.

ManaGeMent divisions share group ManageMent report Group Consolidated FinanCial stateMents
DISCUSSION OF THE INDIVIDUAL RISKS
Risks from the market environment
and competitors
our markets are subject to potential risks from the introduction
of new technologies, changing customer requirements,
increasing competition from market participants
from related industries or services, and entry into new
market cycles. the Executive board monitors the relevant
markets throughout the world systematically with regard to
these risks, and is in constant contact with the managing
directors and regional managers who work on-site in order
to assess the developments.
in the case of transportation of liquid bulk goods, especially
oil and gas, there is the basic substitution risk that current
maritime traffic will be replaced by pipelines. against
the background of recent geopolitical developments and
the increasingly important security issues in the producing
countries, the great flexibility of ships compared to pipelines
is of growing importance. as such, ships may continue
to be the number 1 means of transportation in this
product segment. for all other goods, maritime traffic will
also remain the dominant means of transportation for the
next few decades from today’s perspective, because of all
the means of transport, ships are and will remain by far
the most energy-saving, inexpensive and environmentallyfriendly
way to move goods and humans.
Company strategic risks
Muehlhan is pursuing a growth strategy, the implementation
of which is based on the availability of various resources.
in addition to capital, above all this includes
skilled employees who can arrange for and transact additional
business at existing and new locations. both in
the oil & Gas offshore sector as well as in Ship repair,
this resource can limit growth. therefore, by means of
its polish company in Gdansk, at the end of 2006 the
Muehlhan Group began to provide to polish employees
technical and linguistic training for deployment with
oil & Gas offshore so as not to be dependent only
on existing resources in this market. a corresponding
approach is analogously planned for the Ship repair
market. through the issuance of the bonds and the initial
public offering of Muehlhan aG, the amount of capital will
not be a resource that puts the growth strategy at risk.
Ship Newbuilding and Ship repair are industries that are
often used by up-and-coming national economies with
low labour costs to increase their gross domestic product.
therefore, in principle it is conceivable that the business
in which Muehlhan is developing will be imitated by other
national economies. Experts presume this will occur first in
the countries Vietnam, brazil and india. these are countries
in which Muehlhan is not yet represented by subsidiaries at
the present time. the risk that such a market development
with the dislocation of new construction and repair activities
will come to pass is minimised by Muehlhan by tracking
developments in these countries very closely, and by
starting business operations there itself when there is the
possibility of a long-lasting profitable entry into the market.
to the extent possible, in doing so several fields of business
are developed at the same time in order to spread the
overhead costs over the broadest contract base possible.
for example, in the countries mentioned, a simultaneous
entry into the business fields Ship repair and oil & Gas
offshore is conceivable.
Economic performance risks
in the last few years, prices of copper and other raw
materials that are used in the coating substances have
markedly increased. this led to an increase in the price
of these substances. Muehlhan is not affected directly,
because in most cases the coating substances are purchased
by the customers, or the costs are passed on
directly with a handling fee. there is also no risk that
a further increase in prices of raw materials used will
lead to a substitution of the coating substances and
application technology that are used, because there are
no technolo gical alternatives.
Where technically possible, Muehlhan uses steel grit for
surface preparation blasting. Muehlhan would have to deal
with a price increase for the materials used for operations
directly – but only to a very limited extent due to the ability
to recycle the material. there would continue to be a
price advantage over a non-reusable material such as
copper slag.
35

36
Muehlhan has an highly advanced inventory of equipment,
which was developed with few manufacturers in the past.
in principle, there is the risk that one of these manufacturers
will cease production. in this case, we can find solutions
at short notice. because we engaged in the development
of the equipment in the past in close collaboration
with our suppliers and performed a significant share of our
own development work, we also have a high degree of
expertise in-house. this makes it possible for us to
produce equipment that is compatible with our existing
inventory of equipment within a short period of time,
even with new suppliers.
Surface protection is quite labour intensive. However,
energy is also required for climate control in large steel
structures while work is performed, for the transportation
of abrasives by compressed air, or for the production of
high pressure water using pumps. Muehlhan is therefore
directly affected by price increases of energy. We can
counter such developments only with a price increase
for our own services. However, Muehlhan uses environmentally-friendly
and energy-saving technologies, so that
an increase of prices of energy tends to improve our
competitiveness.
in general, for companies that use patented or licensed
processes, there exists the risk of terminable patent or
license terms. for the µ-jet process that we use, and for
the other services in the µ-series, we currently have patent
agreements beyond the year 2020. in addition, our licenses
guarantee the exclusive right of use within a 1-mile zone of
coastal locations, rivers and large bodies of water.
Personnel risks
the competition for highly qualified executives and qualityconscious
technical personnel is still high in the industries
in which Muehlhan is active. Examples from the past fiscal
years have shown that Muehlhan works in a “people
business” in its sub-markets, in which individual positions
can affect the success of the Group. our future success
therefore depends in part on the extent to which we are
successful over the long-term in externally recruiting the
required professional personnel, integrating them into the
existing work processes, and linking them to the company
for the long-term.
at the same time, the company wants to make use of its
employees’ extraordinarily high level of identification with
our company and its services in the past, and consistently
prepare appropriate employees from its own ranks for
strategically important tasks within the company.
Information technology risks
Muehlhan protects the entire Group from the risk of data
loss at the level of the individual companies by making daily
data backups. by storing the backups offsite, we ensure
the prompt restoration of all the necessary operational
and corporate data.
Financial risks
the companies of the Muehlhan Group work primarily at
fixed prices and regularly begin providing their services
in advance of payment. as such, there is the risk of customer
bankruptcy, and a credit risk, particularly in the case
of large contracts. for existing customer business relationships,
most of which have been in place for years,
Muehlhan considers these risks to be extremely low. in
order to limit the likelihood of default for important new
customer contracts as well, all companies of the Muehlhan
Group are instructed to evaluate the economic status of
its business partners before finalizing the contracts.
in addition, all companies have accounts receivable
management that functions well.
from the company’s perspective, there are no significant
tax risks. Nevertheless, tax claims could emerge if the
tax authorities’ opinion of the law differs from that of the
taxed company in particular cases.
as already reported in the previous year, a legal dispute
is pending in this regard with the Greek tax authorities.
because a decision has already been issued in favour
of Muehlhan in the initial court proceedings a positive
decision for the entire proceedings can also be expected.
all accounts with credit balances invested in the money
market are subject to the normal risk of interest rate fluctuations.
in addition, for contracts outside of the Euro zone,
in principle there is a currency exchange rate risk, in particular
for the uS dollar, which is currently very weak. in order

ManaGeMent divisions share group ManageMent report Group Consolidated FinanCial stateMents
to reduce the earnings impact on the income statement
at the least, the financing structure for the subsidiary
companies was changed from external financing to equity
financing so that the vast majority of future currency
exchange fluctuations will affect only equity and not the
income statement any more. in 2007, the Muehlhan Group
generated 50.6% (2006: 43.7%) of its sales in the Euro
zone. a currency exchange rate risk for these transactions
is precluded, but with increasing internationalization the
percentage of contracts from the Euro zone will decrease
over the long term.
Company-specific risks
the application of surface protection by the companies
of the Muehlhan Group is a service provided on a project
basis. it is often provided in conjunction with other trades,
and commonly under considerable time pressure. in individual
cases, the full scope of the services to be provided
only emerges during the work. Muehlhan prepares for
these conditions by assessing the likelihood of additional
costs, such as those resulting from a change in performance
or change in scope, even in the early stages of the
contract negotiations. it is subsequently taken into consideration
in the offer calculation and then for preparing the
final contract documents.
at the same time, the persons responsible for the project
at the site receive capable support from the Group’s holding
company: Specialists in technical, commercial or legal
issues have proven to be of great benefit during the past
fiscal year for a number of projects. they were all able to
respond much more quickly and in an individually tailored
manner to the respective requirements than would have
been the case with external support.
Major legal risks
at present, Muehlhan is engaged in a legal dispute with
respect to the Golden Gate bridge project. our claims
based on extra work performed were asserted against the
general contractor in an american court. Even though we
are confident and expect a positive judgment in favour of
Muehlhan, a success in a legal proceeding can never be
predicted with 100-percent certainty. for this reason, none
of the accounts receivable currently in dispute have been
shown in the balance sheet.
furthermore, in the international project business or for
an internationally established group of companies, it can
be expected that claims by or even against Muehlhan
may require judicial clarification. However, at present the
company has no knowledge of any legal risks that could
threaten the net assets of the Muehlhan Group.
start and prospects oF 2008
Significant events after the balance sheet date
our subsidiary company Geuer Korrosionsschutz GmbH &
Co. KG, Kiel, was merged with Muehlhan bremen GmbH
(MHb) effective as of 2 January 2008. We assume that,
by doing so, both the earnings power and the growth
prospects of MHb will continue to be strengthened
significantly.
in addition, no events occurred after the end of the
fiscal year 2007 that are of particular importance to our
company.
The Group will focus on
increasing profitability in 2008
Having overcome challenges, we are full of confidence for
the year 2008. We have used the experience in order align
our company even better to the markets strategically and
operationally. in the future, we will grow our business even
more intensively from our locations.
Very good growth expected for shipping
and industrial segments
as a result of the rapidly increasing international merchant
fleet, we still anticipate very good growth opportunities
for our Group both in the Ship Newbuilding and in the
Ship repair division. this is true both for Europe as well as
for asia. in addition to commercial shipping, we also see
great potential in the field of luxury yacht construction,
which offers very good prospects especially in Germany.
Shipyards in this field are currently booked at full capacity
through the year 2014, and sometimes beyond that.
37

38
in the field of coatings for industrial facilities, we likewise
see a very large potential for growth. in particular, the entry
into the market in Qatar as well as the wind turbine business
allow us to look to the future with great optimism. the
same is true for the scaffolding business, which is constantly
growing, and which we see as part of the industrial
segment despite a strong focus on the maritime business,
because it is not directly attributable to surface protection.
Offshore Oil & Gas will rebound
Surface protection for offshore steel structures in the
oil and gas production industry was not capable of fulfilling
our high expectations in the past fiscal year. However,
we assume that we will be able to strengthen sales and
earnings in the field again in 2008. the reasons for our
confidence are the unchanged high level of oil prices and
the associated demand for our services so that existing
production facilities can be operated beyond their original
service life.
for the oil platform maintenance contract in the northern
North Sea that was signed last year, and which has not yet
been profitable, we were able to achieve changes to the
terms and conditions in the context of subsequent negotiations,
as a result of which we once again will be profitable
in this field in 2008. in addition to the high level of quality
of our work, the particular basis for the subsequent
negotiations was our exemplarily low accident rate which
is significantly lower than our competitors’ in this field.
Expansion efforts initially focused on core markets
during the past fiscal year, we completed comprehensive
market analyses in various geographic regions. the conclusion
from the analyses was that there are in fact sufficient
market prospects in africa in particular, but that at the
present time they were not justified by the risks associated
with development of the market. this is especially true for
the general political conditions in Nigeria and South africa.
for this reason, we will continue to concentrate the geographic
focus of our corporate Group on the markets in
Europe, the Middle East, the far East and North america.
Continued advancement of
project and risk management
Given the operational experiences of 2006 and 2007, we
will continue to expand the project management and the
risk management in 2008. through the introduction of the
technical review as well as important management tools
(such as the Nod system, a system for recording concurrent
contract costing), we already markedly advanced the
Group’s risk control instruments during the past fiscal year.
during the course of this year we will have integrated the
instruments closely into the processes. together with the
strategic adjustments, we will continue to advance our
Group’s successes.
Positive outlook 2008
the Executive board assumes that the steps taken, along
with the unchanged positive market environment in 2008,
will lead to a noticeable increase in earnings potential in
2008. the Executive board therefore assumes that sales
2008 will be in a range of between Eur 200 and 215 million.
We expect Ebitda in a range of Eur 16 to 19 million,
and Ebit between Eur 9 and 12 million. the Executive
board expects after-tax profits to fall in a range between
Eur 4 and 6 million. as a result of seasonal growth, significant
portions of earnings will be generated in the second
and third quarters.
Hamburg, 26 March 2008
the Executive board
dr andreas C. Krüger bernd Janssen
Carsten Ennemann

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Group Consolidated
Financial Statements
consolidated balance sheet
consolidated incoMe stateMent
stateMent oF changes in group equity
consolidated cash Flow stateMent
Fixed assets MoveMents schedule
notes to the group
consolidated Financial stateMents
I. General comments
II. Significant consolidation,
accounting and valuation principles
III. Notes to the balance sheet
IV. Segment reporting
V. Notes to the income statement
VI. Other disclosures
39

40
consolidated balance sheet
Assets in kEur Notes 31.12.2007 31.12.2006
NON-CURRENT ASSETS
intangible assets 1 25,529 23,036
property, plant and equipment 2 29,781 23,556
financial assets 3 10,083 154
deferred tax assets 4 4,231 2,467
Total non-current assets 69,623 49,212
CURRENT ASSETS
inventories 5 3,237 3,026
trade receivables 6 37,773 34,367
Cash and cash equivalents 7 7,599 28,980
other current assets 8 10,086 7,182
Total current assets 58,695 73,555
Balance sheet total 128,319 122,767
rounding differences may occur.

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Equity and liabilities in kEur Notes 31.12.2007 31.12.2006
EQUITY 9
Subscribed capital 19,500 19,500
Capital reserves 28,060 28,060
other reserves 4,283 3,180
retained earnings 5,762 6,877
Minority interest 2,109 1,670
Total Equity 59,714 59,287
NON-CURRENT LIABILITIES
pension accruals 10 645 519
Non-current financial liabilities 11 34,527 34,401
deferred government grants 12 276 305
other non-current liabilities 13 61 131
deferred tax liabilities 14 1,093 1,033
Total non-current liabilities 36,601 36,390
CURRENT LIABILITIES
provisions 15 1,932 3,550
Current financial liabilities 11 1,984 233
trade payables 16 17,033 11,280
other current liabilities 13 11,054 12,027
Total current liabilities 32,003 27,090
Balance sheet total 128,319 122,767
rounding differences may occur.
41

42
consolidated incoMe stateMent
in kEur Notes 2007 2006
Sales 196,092 184,389
other operating income 21 6,535 4,498
Cost of materials and purchased services 18 -89,940 -75,915
personnel expenses 19 -72,680 -74,029
depreciation -6,501 -5,774
other operating expenses 21 -30,645 -25,065
Profit from operations 2,861 8,104
income from investments 7 2
interest income 767 460
interest expenses -2,533 -2,233
Financial result 20 -1,759 -1,771
Earnings before taxes 1,101 6,333
taxes on income 22 -649 -2,411
Net earnings before minority 452 3,923
Minority interest -525 -277
Net result -73 3,646
NET EARNINGS PER SHARE 23
Shares shares 19,500,000 16,166,667
basic in Eur 0.00 0.23
diluted in Eur 0.00 0.23
rounding differences may occur.

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
consolidated cash Flow stateMent
in kEur 2007 2006
profit from operations 2,861 8,104
depreciation 6,501 5,774
deferred government grants -29 -29
profit (-), loss (+) on disposal of fixed assets -150 65
unrealised currency gains / losses 1,143 214
decrease (-), increase (+) in provisions -961 -198
Cash flow 9,364 13,930
increase (-), decrease (+) in inventories,
trade receivables and other assets (excluding payments received on account) -11,001 -8,893
increase (+), decrease (-) in trade payables and other liabilities -24 4,859
Cash flow from ordinary activities -1,662 9,895
payments of income taxes -3,875 -4,695
payments of interest -2,407 -1,638
Net Outflow / Inflow from funds on operating activities -7,944 3,562
receipts of interest 774 460
receipts from the disposals of
non-current assets (+) in respect of
intangible assets
tangible assets
financial assets
Capital expenditures (-) in respect of
intangible assets
tangible assets
financial assets
115
900
0
-268
-12,531
-10,028
payments for purchase of consolidated entities (-) -323 0
payments for purchase of minority interests (-) -243 0
Net Outflow of funds from investing activities -21,604 -6,466
receipts from capital increases (+) 0 4,000
receipts from the issue of loans (+) 0 33,806
increase (+), decrease (-) in capital reserves 0 17,135
dividend payments -142 -7,026
increase (+), decrease (-) in payments received on account 7,673 -1,285
receipts (+), repayments (-) on current bank liabilities 636 -20,553
payments (-) on non-current bank liabilities 0 -1,069
Net Inflow of funds from financing activities 8,167 25,009
Effect of exchange rate related fluctuations of cash and cash equivalents* -166 -1
Effect of changes in the scope of consolidated financial statements on cash and cash equivalents* 164 0
total changes in cash and cash equivalents* -21,382 22,104
Cash and cash equivalents* at the beginning of the period 28,980 6,876
Cash and cash equivalents* at the end of the period 7,599 28,980
* Cash and cash equivalents correspond to the balance sheet item “Cash and cash equivalents”.
rounding differences may occur.
206
899
68
-274
-7,795
-30
43

44
Fixed assets MoveMents schedule 2007
in kEur
I. Intangible assets
Balance
1 January
2007 additions
Purchase and production costs
additions
through initial
consolidation
translation
differences disposals
reclassifications
Balance
31 December
2007
1. Concessions, industrial and
similar rights and assets 1,508 268 31 13 15 0 1,805
2. Goodwill 31,997 2,524 0 0 0 0 34,521
3. prepayments 114 0 0 -12 102 0 0
II. Property, plant and equipment
33,620 2,791 31 1 118 0 36,326
1. land, land rights and buildings
including buildings on third-party land 9,333 587 0 96 87 856 10,786
2. technical equipment and machinery 46,138 9,057 2,375 -1,280 3,321 136 53,106
3. other equipment,
operating and office equipment 7,699 1,867 185 -88 1,078 -24 8,560
4. prepayments and assets under construction 63 1,019 57 -8 49 -968 115
III. Financial assets
63,233 12,531 2,617 -1,279 4,534 0 72,567
1. Shares in affiliated companies 135 0 0 0 80 0 54
2. investments 29 0 0 0 18 0 11
3. Securities 0 10,028 0 0 0 0 10,028
rounding differences may occur.
164 10,028 0 0 99 0 10,093
97,016 25,350 2,648 -1,279 4,751 0 118,985

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Balance
1 January
2007 additions
Accumulated depreciation / amortisation Net book values
additions
through initial
consolidation
translation
differences disposals
Balance
31 December
2007
Balance
31 December
2007
Balance
Previos year
788 201 5 -9 3 1,001 804 720
9,796 0 0 0 0 9,796 24,725 22,201
0 0 0 0 0 0 0 114
10,584 201 5 -9 3 10,797 25,529 23,036
3,378 470 0 -67 86 3,829 6,957 5,955
31,185 4,737 1,167 665 2,751 33,673 19,433 14,953
5,115 1,092 107 64 965 5,285 3,276 2,584
0 0 0 0 0 0 115 63
39,677 6,299 1,274 662 3,802 42,786 29,781 23,556
0 0 0 0 0 0 54 135
10 0 0 0 0 10 1 19
0 0 0 0 0 0 10,028 0
10 0 0 0 0 10 10,083 154
50,271 6,501 1,279 653 3,805 53,593 65,393 46,745
45

46
Fixed assets MoveMents schedule 2006
in kEur
I. Intangible assets
Balance
1 January
2006 additions
Purchase and production costs
additions
through initial
consolidation
translation
differences disposals
reclassifications
Balance
31 December
2006
1. Concessions, industrial and
similar rights and assets 1,467 158 0 3 158 38 1,508
2. Goodwill 31,997 0 0 0 0 0 31,997
3. prepayments 37 115 0 0 0 -38 114
II. Property, plant and equipment
33,502 274 0 3 158 0 33,620
1. land, land rights and buildings
including buildings on third-party land 9,417 268 0 -45 373 66 9,333
2. technical equipment and machinery 42,658 6,112 0 -1,009 1,574 -49 46,138
3. other equipment,
operating and office equipment 7,337 1,311 0 -95 923 69 7,699
4. prepayments and assets under construction 48 104 0 -3 0 -86 63
III. Financial assets
59,459 7,795 0 -1,152 2,870 0 63,233
1. Shares in affiliated companies 104 30 0 0 0 0 135
2. investments 29 0 0 0 0 0 29
3. other loans 34 0 0 0 34 0 0
rounding differences may occur.
167 30 0 0 34 0 164
93,128 8,099 0 -1,149 3,062 0 97,016

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Balance
1 January
2006 additions
Accumulated depreciation / amortisation Net book values
additions
through initial
consolidation
translation
differences disposals
Balance
31 December
2006
Balance
31 December
2006
Balance
Previous year
648 193 0 -2 55 788 720 820
9,796 0 0 0 0 9,796 22,201 22,201
0 0 0 0 0 0 114 37
10,444 193 0 -2 55 10,584 23,036 23,058
3,206 513 0 -3 345 3,378 5,955 6,210
28,252 4,054 0 496 625 31,185 14,953 14,406
4,982 1,013 0 82 799 5,115 2,584 2,355
0 0 0 0 0 0 63 48
36,440 5,580 0 575 1,768 39,677 23,556 23,019
0 0 0 0 0 0 135 104
10 0 0 0 0 10 19 19
0 0 0 0 0 0 0 34
10 0 0 0 0 10 154 157
46,894 5,774 0 573 1,824 50,271 46,745 46,234
47

48
stateMent oF changes in group equity
in kEur
Subscribed capital Capital
reserves
Revenue
reserves
Transition
adjustments
Other reserves
Parent company
Revaluation
reserve
Adjustment resulting
from currency
translation
At 1 January 2006 15,500 10,065 2,199 589 -1,157
issue of shares 4,000 19,200
Costs of ipo -1,205
transfer to revenue reserves 1,912
dividends paid
Currency changes -363
other changes
Net result
At 31 December 2006 19,500 28,060 4,111 589 -1,520
purchase minority interest -243
transfer to revaluation reserve 16
transfer to revenue reserves 1,035
dividends paid
Currency changes 296
other changes
Net result
At 31 December 2007 19,500 28,060 4,903 589 16 -1,224
at 31 december 2007 an amount of kEur 3,958 (previous year: kEur 13,386) was available for distribution to shareholders of the parent company.
there are restrictions on dividend distributions to the law and / or pursuant articles of incorporation are applicable.
rounding differences may occur.

Retained
earnings
Equity Minority interest
in equity
Minority interest Group equity
Adjustment resulting
from currency
translation
12,012 39,207 1,578 -24 1,554 40,762
-1,912
Equity
23,200 23,200
-1,205 -1,205
-6,865 -6,865 -161 -161 -7,026
-363 -363
-3 -3 -4
3,646 3,646 277 277 3,923
6,877 57,617 1,694 -24 1,670 59,287
-1,035
ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
-243 -243
16 16
-142 -142 -142
296 9 46 55 351
-8 -8 -7
-73 -73 525 525 452
5,762 57,605 2,086 23 2,109 59,714
49

50
Notes to the Group
Consolidated financial Statements
i. general coMMents
the core business of Muehlhan aG (hereinafter “MyaG” or “company”) and its subsidiaries is surface protection for
industrial plants, Ship Newbuilding, Ship repair and offshore facilities. the core business is complemented by access
technologies, steel construction and welding services. the company is headquartered at Schlinckstrasse 3, Hamburg,
Germany. the competent registration court is in Hamburg.
the Group consolidated financial statements of MyaG and its subsidiaries at 31 december 2006 were prepared
for the first time in accordance with the international financial reporting Standards (ifrS) promulgated by the
inter national accounting Standards board (iaSb) including the interpretations of the international financial reporting
interpretations Committee (ifriC) and the complementary provisions of German commercial law applicable under
Section 315a para. 1 of the Commercial Code (HGb). ifrS 1, the authoritative standard for first-time applications,
was observed. for the Group Consolidated financial Statement as of 31 december 2007, all ifrS and interpretations
of the ifriC adopted by the Eu commission as of the balance sheet date whose application is mandatory have
been complied with.
the consolidated financial statements were prepared in Euro. rounding differences may occur if amounts are shown
in millions or thousands of Euros since the individual items included in the calculations are stated in full figures.
ii. signiFicant consolidation, accounting and
valuation principles
the Group consolidated income statement was prepared under the total cost method.
Capital consolidation is based on the purchase method. the assets and liabilities of the subsidiaries included in the
consolidated financial statements are recognized at their fair values at the transaction date including expenses directly
attributable to the acquisition. in the initial consolidation, assets, liabilities and contingent liabilities identifiable within the
scope of a merger are recognized at the fair value attributable at the time of acquisition, irrespective of the size of minority
interests. the surplus of the cost of acquisition over the Group’s share in the attributable fair value of net assets is
recognized as goodwill. if the costs of acquisition are lower than the fair value of net assets attributable to the acquired
subsidiary, the balance is taken direct to the income statement.
Minority interests are stated at the attributable fair value of assets and liabilities corresponding to their share. losses
attributable to minority interests in excess of their share were allocated to the parent company.
intercompany receivables and payables are eliminated. differences arising on currency exchanges compared to those in
the prior year are accounted for affecting current period results, if originating from the reporting period.
in the course of income, proceeds from intercompany sales as well as group internal income and the attributable
expenses are set off. Non realized intergroup profits are eliminated.

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Consolidation entity and associates
the consolidated financial statements include in addition to MyaG 33 fully consolidated subsidiaries in which MyaG
directly or indirectly holds a majority of voting rights or is exercising control over financial and business policies. there
are no significant associates within the meaning of iaS.
Since 31 december 2006, the consolidation entity changed as follows:
in January 2007, our subsidiary Muehlhan a / S, Vissenbjerg, denmark (MdK), acquired a 28% interest in Muehlhan
Norge aS, Stavanger, Norway (MNo), from the previous minority shareholder. MdK now owns 100% of the shares of
MNo. the purchase price for the shares was NoK 2,000 thousand (Norwegian krone). the premium for the purchase
of the minority interest in the amount of Eur 243 thousand was offset against revenue reserves.
on 29 March 2007, Gerüstbau Muehlhan Verwaltungs GmbH (GMV) and Muehlhan Verwaltungs GmbH (MVr), each
headquartered in Hamburg (the general partners of the fully consolidated Gerüstbau Muehlhan GmbH & Co. KG (GMH)
and Muehlhan GmbH & Co. KG (MrW)), and Muehlhan bremen GmbH (MHb) each entered into a profit and loss transfer
agreement with Muehlhan aG, effective 1 January 2007. at Muehlhan aG’s General Meeting on 15 May 2007, the shareholders
approved these agreements. on 5 april 2007, the respective shareholder meetings of GMV and MVr resolved to
increase capital. MyaG used the limited partner shares of GMH and MrW as a non-cash contribution for this purpose.
in each case, the transfer took contractual effect as of 1 January 2007. it was also resolved that MVr would change its
name to Muehlhan rostock GmbH, and that GMV would change its name to Gerüstbau Muehlhan GmbH. the entries
were made in the Commercial register on 14 June 2007 and on 5 July 2007, respectively.
in 2007 the following companies were newly founded and included in the consolidation entity: in Singapore,
Muehlhan Surface protection Singapore pte. ltd. the sole shareholder is Haraco Service pte. ltd., Singapore, a
100% subsidiary of MyaG. in the uSa, the companies Muehlhan united inc. with headquarter in Houston, Muehlhan
offshore inc. with headquarter in lafayette and Muehlhan Certified Coatings inc. with headquarters in Concord. the
shares of these companies are owned by Muehlhan Surface protection inc., Houston, likewise a 100% subsidiary of
MyaG. in the united arab Emirates, Muehlhan Middle East Holding limited, with headquarters in dubai, was founded.
Here the sole shareholder is MyaG. the effects of the initial consolidations of these companies are immaterial to
the assets and earnings position of the Group.
Muehlhan Corrosion protection Service (Shanghai) Co., ltd., Shanghai, people’s republic of China (MCN), has been
fully consolidated since 1 July 2007. the shareholders of MCN and Muehlhan aG have agreed contractually that the
shareholder position will be granted to Muehlhan aG as of 1 July 2007 under the code of obligations. the purchase
contract for the shares in MCN negotiated back in 2006 was consummated in the meantime. the agreed upon purchase
price for the shares totals Eur 0.8 million and was not yet paid as of the balance sheet date. the initial consolidation
generated goodwill of Eur 1.9 million. in the second half of 2007, MCN contributed Eur 1.8 million to consolidated
revenues and Eur 1.9 million to consolidated earnings after taxes. this almost completely resulted from the seller’s waiver
of receivables from MCN. the effects of the consolidation of MCN on the consolidated balance sheet entail not only
an increase in goodwill but also increases in tangible assets of Eur 1.2 million and financial liabilities of Eur 0.6 million.
51

52
as of 31 december 2007, the newly acquired companies procon Emirates l.l.C. abu dhabi and procon Emirates l.l.C.
dubai were included in the consolidation entity. the converted purchase price of the companies was Eur 1.2 million,
which led to goodwill of Eur 0.6 million. the effects of the initial consolidation on the consolidated balance sheet entail
not just goodwill but also increases in trade receivables of Eur 1.0 million and financial liabilities of Eur 0.4 million.
in august 2007, the previously fully consolidated Muehlhan polska Holding Sp. z o.o., with headquarters in Szczecin,
poland, was deconsolidated. the company was liquidated. the proceeds from the liquidation accrued to Muehlhan aG.
Effective 2 January 2008, Geuer Korrosionsschutz GmbH & Co. KG, Kiel, was merged with Muehlhan bremen GmbH
(MHb).
Geuer Korrosionsschutz Verwaltungs GmbH, Hamburg, Muehlhan Grand bahama ltd. and aiS-allround-industrie-
Service GmbH, Haan-Gruiten, are not included in the consolidation entity because they are of minor importance in relation
to the requirement to present a true and fair view of the net assets, financial position and operations of the Group.
the following companies are included in the consolidated financial statements:
Symbol Company
Shareholding
in % held by
MyaG Muehlhan aG, Hamburg parent company
GKS Geuer Korrosionsschutz GmbH & Co. KG, Kiel 100 MyaG
GMH Gerüstbau Muehlhan GmbH, Hamburg 100 MyaG
MrW Muehlhan rostock GmbH, rostock 100 MyaG
MES Muehlhan Equipment Services GmbH, Hamburg 100 MyaG
ME Muehlhan GmbH, Emden 100 MyaG
MHb Muehlhan bremen GmbH, bremen 100 MyaG
MdK Muehlhan a / S, Vissenbjerg – denmark 100 MyaG
MNo Muehlhan Norge aS, Stavanger – Norway 100 MdK
MG Muehlhan Sp. z o.o., Gdansk – poland 100 MyaG
MSpp Maritime Surface protection poland Sp. z o.o., Szczecin – poland 100 MyaG
Mpl Muehlhan Steel Services Sp. z o.o., Szczecin – poland 100 MyaG
Mf Muehlhan S.a.r.l., St. Nazaire – france 100 MyaG
MMf Muehlhan Morflot ooo, St. petersburg – russia 70 MyaG
MNl Muehlhan b.V., Vlaardingen – Netherlands 100 MyaG
MGb Muehlhan Surface protection ltd., aberdeen – Great britain 100 MyaG

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Symbol Company
Shareholding
in % held by
MGr Muehlhan Hellas S.a., athens – Greece 51 MyaG
MSpu Muehlhan Surface protection inc., Houston – uSa 100 MyaG
MMi Muehlhan Marine inc., Houston - uSa (formerly: Sipco Surface protection inc.) 100 MSpu
MSp Meaux Surface protection inc., lafayette – uSa 100 MSpu
CCC Certified Coatings Company, Concord – uSa 100 MSpu
MCC Muehlhan Certified Coatings inc., Concord – uSa 100 MSpu
Moi Muehlhan offshore inc., lafayette – uSa 100 MSpu
Mui Muehlhan united inc., Houston – uSa 100 MSpu
HSG Haraco Services pte. ltd. – Singapore 100 MyaG
MSG Muehlhan pte. ltd. – Singapore 100 HSG
MSpS Muehlhan Surface protection Singapore pte. ltd. – Singapore 100 HSG
MME Muehlhan Surface protection Middle East l.l.C., dubai – uaE 100 MyaG
Mda Muehlhan dehan l.l.C., abu dhabi – uaE 100 MME
MdQ Muehlhan dehan Qatar W.l.l., doha – Qatar 100 MME
MMEH Muehlhan Middle East Holding limited, dubai – uaE 100 MyaG
pra procon Emirates l.l.C. abu dhabi – uaE 100 MMEH
prd procon Emirates l.l.C. dubai – uaE 100 MMEH
MCN Muehlhan Surface protection Service (Shanghai) Co. ltd., Shanghai – China 100 MyaG
the following companies are not included in the consolidated financial statements:
Symbol Company
Share-
holding
in %
Equity at
31 Dec. 2007
in kEur
Profit / loss for
the year 2007
in kEur
GKV Geuer Korrosionsschutz Verwaltungs GmbH, Hamburg 100 23.2 0.4
Mfp Muehlhan Grand bahama ltd, Nassau, bahamas 100 0.1 -0.1
aiS aiS-allround-industrie-Service GmbH, Haan-Gruiten 51 72.9 31.6
the share in aiS is indirectly held via MGr.
Foreign currency translation
Monetary items denominated in foreign currencies shown in the single entity financial statements of Group companies
included in the consolidation are, in principle, translated at the rate of exchange at the balance sheet date. the resulting
exchange gains and losses are directly taken to income or expense.
53

54
the assets and liabilities of foreign subsidiaries with a functional currency other than Euro are translated into Euro at
mid-rates at the balance sheet date. income and expenses are translated at average annual rates. differences arising on
the translation of assets and liabilities compared to translation in the prior year at other exchange rates are accounted
for without an income effect and shown separately under equity. Goodwill with respect to the acquisition of foreign
subsidiaries arising in connection with the initial consolidation is translated into Euro and carried forward accordingly.
the important exchange rates per Euro are shown below as follows:
Exchange rate at the
balance sheet date Average rate of exchange
aEd 5.46 5.06
CNy 10.75 10.45
dKK 7.46 7.45
Gbp 0.74 0.69
NoK 7.97 8.00
plN 3.59 3.78
Qar 5.36 5.02
rub 35.99 35.07
SGd 2.12 2.07
trl 1.71 1.78
uSd 1.47 1.38
Liquid assets
Cash and cash equivalents comprise cash-in-hand and bank balances. bank balances not directly required to finance
current assets are invested for a term of up to three months. Cash and cash equivalents shown on the balance sheet
are identical with cash and cash equivalents shown in the cash flow statement.
Inventories
inventories are stated at purchase or production costs or net realizable value at the balance sheet date, if lower. production
costs include direct costs and a reasonable proportion of production, material and production-related administration
overheads.
Construction contracts
if the result of a construction contract can be reliably estimated, revenue and costs are recognized in accordance with
the percentage of completion at the balance sheet date. the percentage of completion is calculated on the basis of the
contract costs incurred up to the balance sheet date compared with estimated total contract costs unless this procedure
does not result in a proper estimate of the percentage of completion.
unless the result of a construction contract can be reliably estimated, contract revenue can only be recorded in the
amount of the contract costs incurred which are likely to be realized. Contract costs include direct costs and a reasonable

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
proportion of production, material and production-related administrative overheads. Contract costs are taken to expense
in the period in which they are incurred. if it is likely that total contract costs will exceed the total contract revenues attributable
to the respective contract, the anticipated losses are taken to expense immediately.
Receivables and other assets
pursuant to iaS 39.45, receivables and other assets are classified as loans and receivables.
receivables and other assets are initially stated at their attributable values and subsequently carried forward at their
amortized costs less write-downs. Write-downs adequately take into account all discernible risks estimated on the basis
of empirical values.
Profit realization
income is realized in the amount of the fair value attributable to the consideration received or receivable and constitutes
amounts for services rendered within the scope of normal operations less rebates, value-added tax and other taxes
incurred in connection with sales.
income from long-term make-to-order production is recognized in accordance with Group-internal accounting and
valuation procedures to be applied with respect to long-term construction contracts (see above).
Property, plant and equipment
property, plant and equipment are stated at purchase cost less accumulated depreciation. depreciation is accounted
for over the expected useful lives. in general, depreciation is calculated on a straight-line basis. the useful lives are related
to the types of assets:
buildings 5–50 years
technical equipment, operating and office equipment 2–15 years
repair and maintenance costs are expensed when incurred. Material renewals and improvements are capitalized if the
criteria for the recognition of an asset are applicable. in principle, leased assets classified as finance leases on the basis
of the respective lease agreements are accounted for as tangible fixed assets at the attributable fair value or the lower
present value of minimum lease payments and reduced by accumulated depreciation subsequently.
if there is an indication of an impairment of tangible fixed assets, the required write-downs are estimated. in this
connection, the realizable amount (defined as the higher of net realizable value and the service value) is compared with the
carrying amount of the asset. if the realizable amount is lower than the carrying amount, the balance is taken to expense.
if the reason for the write-down has ceased to exist in the meantime, a write-up is recorded up to amortized costs.
Goodwill and intangible fixed assets with an indeterminate useful life
Goodwill is accounted for at cost of acquisition. pursuant to ifrS 3, no scheduled amortization has been recorded since
1 January 2005. an impairment test is made at least once in the financial year and may result in a write-down. there are
no other intangible fixed assets with an indeterminate useful life.
Other intangible assets
purchased intangible assets include mainly concessions, industrial and similar rights. they are stated at purchase
costs less accumulated amortization. the useful lives are estimated at three to 17 years, amortization is calculated on a
straight-line basis.
55

56
Financial assets held for sale
at the time of acquisition, financial assets are recorded at their acquisition costs (market value) plus related
transaction costs. Subsequent valuation is at fair value (market value). Subsequent changes in value are recorded
in equity (revaluation reserve) in a net effecting operating results manner after taking deferred taxes into account until
the asset is sold or an impairment is recorded with an effect on net income. financial assets held for sale are
shown as financial investments.
Impairment of assets
assets with an indeterminate useful life are not regularly depreciated or amortized. they are subject to an annual impairment
test. tangible fixed assets and intangible assets with a defined useful life are also subject to an impairment test if
there is an indication that the value of the respective asset is reduced. in this connection, the realizable amount (the higher
of net realizable value and service value) is determined and compared with the asset’s carrying amount. if the realizable
value is lower than the carrying amount, the balance is taken to expense. if the reason for the write-down has ceased to
exist in the meantime, a write-up is recorded up to the amortized costs. No such write-up is made with respect to goodwill.
the impairment test is made on the basis of the discounted cash flow method. the expected cash flow is based on
business planning data. its present value is calculated by reference to an interest rate brought about by market forces.
Pension accruals and similar obligations
there are contributory pension plans which do not entail any additional pension obligation except for the current payment
of contributions. there are also defined benefit pension plans at two companies which relate almost entirely to pension
obligations to a retired former managing director of a subsidiary. the pension accruals with respect to the defined
benefit pension plans are calculated in accordance with the projected unit credit method. this actuarial determination of
the present value of accumulated plan benefits does not only take into account the current pension payments and
vested rights of future pension payments at the balance sheet date but also the expected future increase in salaries
and pensions. the 10% corridor method pursuant to iaS 19.92 is applied with respect to actuarial gains or losses. the
accrual is reduced by the amount of potential plan assets. Service and interest costs are shown under personnel
expenses. the actuarial present value of the defined benefit obligation is calculated by discounting the expected
future payments at an interest rate attributable to top-rated corporate bonds denominated in the currency in which
payments have to be made and at maturities matching the pension obligations. in respect of contributory pension plans,
the payments of contributions are shown under personnel expenses. Contributions outstanding at the balance sheet
date are recorded under pension accruals.
Other provisions
in accordance with iaS 37, other provisions are accounted for all risks discernible at the balance sheet date and third-party
liabilities resulting from past transactions or events if the amounts and maturities involved are uncertain. provisions are
based on the best estimate of the amount of the settlement. positive performance contributions are not netted. provisions
are also set up with respect to onerous contracts. a contract is deemed to be onerous if the unavoidable costs exceed
the economic benefit expected from the contract.
Financial liabilities
in principle, financial liabilities are stated at their attributable present value less transaction expenses and carried forward
at amortized cost. Non-interest-bearing or low-interest liabilities with a term of at least one year are accounted for at their
present value taking into account a market-oriented interest rate. liabilities originating from finance leases are accounted
for at the present value of the minimum lease payments at the beginning of the lease transaction or the fair value, if lower,
and reduced by the redemption payments included in the lease rentals.
in principle, short-term financial liabilities include the portion of long-term loans with a term up to one year.

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Research and development expenses
research and development costs are taken to expense in the period incurred. the conditions necessary in accordance
with iaS 38 for a capitalization of development expenses are not met.
Trade payables
trade payables are non-interest bearing and are stated at their repayment value.
Deferred taxes
deferred taxes resulting from temporary differences of valuations entered in the statutory and tax balance sheets of the
individual companies as well as from consolidation entries are calculated separately for each fiscal jurisdiction and shown
as deferred tax assets or liabilities. Moreover, deferred tax assets may include claims for tax reductions as a consequence
of the expected utilization of existing loss carryforwards in the following years if their realization is ensured with enough
certainty. deferred taxes are calculated on the basis of tax rates applicable to the reversal in the respective fiscal jurisdictions
which are valid or resolved at the balance sheet date. in addition, deferred taxes can be calculated on the basis of
accounting transactions without any effect on income. deferred tax assets are only accounted for to the extent in which
the realization of the associated benefit appears to be likely. if this criterion is not met, provisions are set up taking into
account earnings in the past and expected business development in the foreseeable future.
Assumptions and estimates
in connection with the preparation of the consolidated financial statements it is partly necessary to make assumptions and
estimates which affect the amounts and classification of assets and liabilities, income and expenses as well as contingent
liabilities. actual values may differ from the assumptions and estimates in particular instances. adjustments will affect
results at the time when better knowledge is available.
Government grants
Government grants in respect of tangible fixed assets are deferred and released over the expected useful life of the
related asset.
iii. notes to the balance sheet
1. INTANGIBLE FIxED ASSETS
intangible fixed assets are analyzed as follows:
in kEur 31 December 2007 31 December 2006
Concessions, industrial and similar rights and assets 804 720
Goodwill 24,725 22,201
prepayments 0 114
Total 25,529 23,036
57

58
pursuant to ifrS 3, goodwill has not been regularly amortized since 1 January 2005. an impairment test was made in
accordance with iaS 36 in the past financial year by applying the discounted cash flow method based on the respective
business planning data. No write-down was necessary in the financial year 2007.
the impairment test was based on the following assumptions:
an interest rate of 7% was used as a basic discount factor. it corresponds to the interest rate payable with respect to the
loan issued by us plus a markup of some 1% to cover the general risk. the discount factor is increased by 2% to reflect
the risk of changing cash flows resulting from fluctuating exchange rates. the discount factor is also increased by 2% to
take into consideration the low level of planning certainty at newly established or acquired companies and companies in
the process of restructuring.
the development of intangible fixed assets for the financial years 2007 and 2006 is shown in the fixed assets movements
schedule included in the Group consolidated financial statements.
2. PROPERTY, PLANT AND EQUIPMENT
property, plant and equipment is analyzed as:
in kEur 31 December 2007 31 December 2006
land, land rights and buildings including buildings on third-party land 6,957 5,955
technical equipment and machinery 19,433 14,953
other equipment, operating and office equipment 3,276 2,584
prepayments and assets under construction 115 63
Total 29,781 23,555
Net book values of tangible fixed assets are deduced from their purchase costs. accumulated depreciation on tangible
fixed assets amounted to Eur 42.8 million (previous year: Eur 39.7 million).
tangible fixed assets include leased assets in the amount of Eur 0.1 million (previous year: Eur 0.2 million). they pertain
to operating and office equipment at a subsidiary.
Capital expenditures amounted to Eur 12.5 million in 2007. they mainly refer to capital spending on replacements. the
acquisition of tangible assets through the initial consolidation of newly acquired companies entailed Eur 2.6 million of
purchase and production costs and Eur 1.3 million of residual book values.
the development of property, plant and equipment for the financial years 2007 and 2006 is shown in the fixed assets
movements schedule included in the Group consolidated financial statements.

3. FINANCIAL ASSETS
ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
financial assets are analyzed as follows:
in kEur 31 December 2007 31 December 2006
Shares in affiliated companies 54 135
investments 1 19
Securities 10,028 0
Total 10,083 154
Shares in affiliated companies pertain to companies that are immaterial with respect to the evaluation of the Group’s net
assets, financial and earnings position and have, therefore, not been included in the consolidation.
Securities involve investments in money market funds and are categorized as financial assets available for sale in
accordance with iaS 39; they are stated at the fair value (market value). the account in which the money market funds
are held was pledged to the lender (see note 11).
the development of financial assets for the financial years 2007 and 2006 is shown in the fixed assets movements
schedule included in the Group consolidated financial statements.
4. DEFERRED TAx ASSETS
deferred tax assets pertain to the following items:
in kEur 31 December 2007 31 December 2006
accumulated tax loss carryforwards 3,681 2,172
Non-current assets 145 116
Current assets 83 145
provisions and other liabilities 323 33
Total 4,231 2,467
in Germany, there are trade tax loss carryforwards of Eur 14.5 million and corporate income tax loss carryforwards
of Eur 8.9 million as of the balance sheet date. there are tax loss carryforwards of Eur 7.4 million abroad.
on the basis of the medium-term planning of the companies involved, a tax benefit in the amount of Eur 3,681 thousand
will accrue over the next five years. We already have capitalized this amount now since the probability is almost certain
that the results will be realized by the companies in question.
59

60
the development of deferred tax assets is analyzed as follows:
in kEur 2007 2006
at 1 January 2,467 709
allocation affecting net income in the Group consolidated income statement 1,764 1,757
at 31 december 4,231 2,467
5. INVENTORIES
inventories are analyzed as follows:
in kEur 31 December 2007 31 December 2006
raw materials, consumables and supplies 3,128 2,973
prepayments 109 54
Total 3,237 3,026
6. TRADE RECEIVABLES
trade receivables are analyzed as follows:
in kEur 31 December 2007 31 December 2006
accounts receivable from finished goods 28,007 27,064
accounts receivable from work in progress 24,819 14,308
prepayments received on account of work in progress -15,060 -7,005
Total 37,766 34,367
accounts receivable from sales and services have a term of up to one year. in general, accounts receivable from work
in progress have also a term of up to one year. as agreed with customers, we have already received or will receive
prepayments on account of construction contracts to be invoiced only in 2009. Hence a maturity of up to one year can
be assumed in such instances as well.
Sales amounting to Eur 196,092 thousand (previous year: Eur 184,389 thousand) include contract revenues from
long-term make-to-order production (additions to work in progress during fiscal year) amounting to Eur 23,494 thou-

sand (previous year: Eur 13,053 thousand). the accumulated costs pertaining to construction contracts in progress at
the balance sheet date amount to Eur 23,415 thousand (previous year: Eur 13,247 thousand) and the accumulated
profits / losses amount to Eur 1,404 thousand (previous year: Eur 1,061 thousand).
in the Management report (Heading: uS activities have a significant negative effect on 2007 business development)
it has been stated that we are currently prosecuting an action against a client for a total amount of Eur 4.3 million
(uS$ 6.3 million). Since the realization of this income is not regarded as probable, i. e. more likely than not to occur,
and the negotiations for supplementary claims have been broken off. and therefore it is not foresee able whether
the client is likely to accept these supplementary claims, we have not capitalized our claims except for the recognized
portion in the amount of Eur 0.9 million (uS$ 1.3 million).
7. LIQUID ASSETS
ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Cash and cash equivalents amounted to Eur 7.6 million at 31 december 2007 (previous year: Eur 29.0 million). they
comprise available cash and mainly call money. on average, liquid assets carried interest at 2.0% at the balance sheet
date. there were no drawing restrictions.
8. OTHER CURRENT ASSETS
other current assets are analyzed as follows:
in kEur 31 December 2007 31 December 2006
Current tax receivables 4,936 2,235
prepaid expenses 1,277 891
receivables from related parties 0 818
Sundry 3,873 3,238
Total 10,086 7,182
a substantial portion of the increase in current tax receivables involves the value-added tax receivables of MGr.
in addition, MSpu has significant income tax receivables in 2007 as a result of tax loss carrybacks.
in the previous year, receivables from related parties existed with respect to GMiS, which is associated with the property
of the Chairman of the Supervisory board dr Wulf-dieter H. Greverath. the loan was paid off as agreed in 2007.
the other short-term assets have a term of up to one year. the fair value corresponds to the carrying amount.
61

62
9. EQUITY
Subscribed capital
the parent company’s issued capital amounted to Eur 19,500 thousand at the balance sheet date. this corresponds
to the subscribed capital shown in the Group balance sheet. it is split into 19,500,000 non-par-bearer shares, each with
a Eur 1 share of the issued capital. in the previous year, Eur 15.500 thousand of issued capital was first contributed
by means of conversion in accordance with Section 190 et seq. of the German Conversion act (umwG) of the previous
Mühlhan Surface protection international GmbH, Hamburg. in october 2006, issued capital was increased by a
Eur 4,000 thousand new share issue.
on 28 March 2007, SG / GS Europe l.p., Edinburgh, SGCE investment Holdings i Sarl, luxembourg, SGCE investments
i Sarl, luxembourg, SGCE Holding i Sarl, luxembourg, SG Capital Europe fund i l.p., london and SG Capital Europe
ltd., london, advised us, in accordance with Section 20 para. 5 of the German Stock Corporation act (aktG), that they
indirectly hold less than one fourth of the shares in Muehlhan aG, in accordance with Section 16 para. 2 and 4 aktG.
on 3 May 2007, GiVE Maritime and industrial Services GmbH, itzehoe, informed us, in accordance with Section 20
para. 5 aktG, that it holds less than one fourth of the shares of the company.
on 3 May 2007, dr Wulf-dieter H. Greverath and Ms. angelika Ebba Greverath advised us, in accordance with
Section 20 para. 5 aktG, that they do not hold an indirect majority stake in the company and, in accordance with
Section 16 para. 4 aktG, they indirectly hold more than one fourth of the shares, including their interests in GiVE
Maritime and industrial Services GmbH, itzehoe and Greverath investment Verwaltungs- und Erhaltungs-Gbr, Hamburg,
which they control.
on 3 May 2007, Greverath investment Verwaltungs- und Erhaltungs-Gbr advised us, in accordance with Section 20
para. 5 aktG, that it holds less than one fourth of the shares in our company directly and, in accordance
with Section 16 para. 4 aktG, it indirectly no longer holds a majority stake, including its interest in GiVE Maritime and
industrial Services GmbH, itzehoe, which it controls. indirectly, including its interest in GiVE Maritime and industrial
Services GmbH, it holds more than one fourth of our company, in accordance with Section 16 para. 4 aktG.
the parent company’s authorized capital amounts to Eur 9,250 thousand.
Capital reserves
in the previous year, the premium from the issuance of 4 million new shares totaling Eur 19,200 thousand was allocated
to capital reserves. Expenses in connection with the issuance of own stock less attributable tax charges in the net amount
of Eur 1,205 thousand were offset against capital reserves.

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
Other reserves
other reserves are analyzed as follows:
in kEur 31 December 2007 31 December 2006
revenue reserves 4,903 4,111
Currency translation reserve -1,224 -1,520
revaluation reserve 16 0
reserve in connection with the first-time application of ifrS 589 589
Total 4,283 3,180
in the financial year 2007, in accordance with the resolution on appropriation of profits, Eur 50 thousand was transferred
from retained profits brought forward to the parent company’s revenue reserves.
Retained earnings
in the financial year 2007, no dividends were distributed to shareholders (previous year: Eur 6,865 thousand).
Minority interests
due to the increase in MdK’s shares in MNo from 72% to 100% in January 2007, there are only minority interests in MGr
and MMf at the balance sheet date. MyaG holds 70% of MMf and 51% of MGr. in the reporting year 2007, results totaling
Eur 525 thousand (previous year: Eur 277 thousand) were allocated to other shareholders in these companies.
10. PENSION ACCRUALS
pension accruals amounted to Eur 645 thousand (previous year: Eur 519 thousand). there are no plan assets. of the
total amount some Eur 232 thousand (previous year: Eur 71 thousand) are attributable to companies abroad.
in addition to contributory pension plans which do not result in additional pension obligations apart from current payments
of contributions there are also defined benefit pension plans at two Group companies in Germany which relate almost
entirely (97%) to pension obligations to a retired former managing director of a subsidiary.
the valuation of these accruals was made on the basis of the life expectancy tables “2005 G” of dr Klaus Heubeck by applying
the projected unit credit method under iaS 19. for 2007 and 2006 a discount factor of 5.0% or 4.0% was assumed,
along with future pension payment increases of 1.75% or 0.8%. Since the only person covered by these pension plans
is already retired, there was no need to take future salary increases and fluctuation of personnel into account.
63

64
the development of the Group’s pension accruals is analyzed as follows:
in kEur 2007 2006
at 1 January 519 520
interest with respect to earned pension entitlements 17 18
benefits paid -36 -33
addition of defined-contribution plans through initial consolidation 93 0
increase in accruals – contributory pension plans 52 14
At 31 December 645 519
it is assumed that pension payments in 2008 will correspond to the level of the previous year. actuarial gains or losses
were not set off since they did not exceed the 10% corridor.
11. FINANCIAL LIABILITIES
financial liabilities are analyzed by maturities as follows:
in kEur 2007 Time to maturity 2006 Time to maturity
Total 0-1 year
1-5
years
> 5
years Total 0-1 year
loans 34,527 0 7,000 27,527 34,401 0 0 34,401
liabilities to banks 1,984 1,984 0 0 233 233 0 0
Total 36,511 1,984 7,000 27,527 34,634 233 0 34,401
on 28 March 2006, the parent company issued a Eur 35 million loan. the loan is not collaterized and runs until 2016.
repayment will be in five equal annual installments as from 2012. the loan carries interest at 5.77% payable every six
months in arrears. the prudential insurance Company of america subscribed the loan. the transaction expenses of the
loan amounted to nearly Eur 1.2 million. the loan is stated at amortized costs after taking into account the transaction
expenses. all bank liabilities existing at the time of the issuance of the loan were repaid as a consequence of the inflow of
funds. in the next four years, the loan will lead to annual outflows of funds of Eur 2,020 thousand, in 2012 to an outflow
of Eur 8,818 thousand, and thereafter Eur 31,231 thousand. two performance-linked requirements of the loan could
not be met due to weak profitability. an “amendment” was agreed with the lender in Mid-March 2008, according to
which he waives the termination right to which he is entitled as a result of the violation of the bond terms. in return, in
december 2007 we pledged half of the Eur 10.0 million amount for the expected term of 14 or 26 months. an interest
adjustment could be avoided through the agreement of a one-time payment of Eur 120 thousand. to our knowledge,
no active market exists for this loan, so that the fair value approximates the book value as far as we know. the liquidity
situation of the Group is hereby not endangered (see also note no. 3).
1-5
years
> 5
years

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
the MyaG Group has at its disposal credit lines totaling Eur 10.6 million (previous year: Eur 11.6 million), which can be
used at MyaG’s discretion as cash loans and guarantee credits. Moreover, primarily Euler Hermes Kreditversicherungs
aG and Zürich Versicherung aktiengesellschaft as well as other similar institutes have provided guarantee lines totaling
Eur 31.6 million (previous year: Eur 26.9 million). apart from indebtedness to banks in the amount of Eur 2.0 million
(previous year: Eur 0.2 million), guarantee credit totaled Eur 13.0 million (previous year: Eur 5.0 million) at 31 december
2007. apart from cash and cash equivalents, the company had at its disposal unused credit and guarantee lines in the
amount of Eur 27.2 million (previous year: Eur 33.3 million) at 31 december 2007. the effective interest rate attributable
to financial liabilities amounted to 6.1% on average during the financial year.
12. DEFERRED GOVERNMENT GRANTS
Government grants in connection with tangible assets are treated as deferred income and are recorded as income over
the expected useful life of the related asset.
13. OTHER LIABILITIES
other liabilities can be categorized by maturity as follows:
in kEur 2007 Time to maturity 2006 Time to maturity
Total 0-1 year
1-5
years
> 5
years Total 0-1 year
tax liabilities 2,816 2,816 0 0 3,266 3,266 0 0
liabilities relating to social security 1,489 1,489 0 0 1,903 1,903 0 0
liabilities to personnel 4,599 4,599 0 0 4,212 4,212 0 0
lease liabilities 140 79 61 0 193 62 131 0
deferred income 357 357 0 0 617 617 0 0
Sundry liabilities 1,714 1,714 0 0 1,967 1,967 0 0
Total 11,115 11,054 61 0 12,158 12,027 131 0
liabilities with respect to finance leases amount to Eur 140 thousand (previous year: Eur 193 thousand) at the balance
sheet date. the scope of the Group’s finance leases is insignificant and will further decrease since the liquidity will enable
the Group to purchase assets in the future. Existing agreements will expire over the next two years. the liabilities will not
be cleared prior to maturity from a cost point of view.
the fair value of other liabilities corresponds to the carrying amount.
1-5
years
> 5
years
65

66
14. DEFERRED TAx LIABILITIES
the company’s deferred tax liabilities relate to the items shown below as follows:
in kEur 31 December 2007 31 December 2006
Non-current assets 286 152
Current assets 458 439
provisions and other liabilities 348 442
Total 1,093 1,033
deferred tax liabilities developed as follows:
in kEur 2007 2006
at 1 January 1,033 692
allocation affecting net income in the Group consolidated income statement 60 341
At 31 December 1,093 1,033
15. PROVISIONS AND CONTINGENT LIABILITIES
the development of tax provisions is presented as follows:
in kEur At 1 January 2007
Exchange
differences Utilization Release Addition At 31 December 2007
tax provisions 2,077 -24 1,605 67 1,080 1,461
tax provisions mainly comprise taxes on income incurred in the financial year 2007 but not yet paid as well as tax
payments expected for prior years. No deferred taxes are included. reference is made to no. 8 of these notes. the
tax provisions are expected to result in an outflow of funds in the following financial year.

other provisions developed as follows:
in kEur At 1 January 2007
Exchange
differences Utilization Release Addition At 31 December 2007
Warranties 738 -40 273 96 48 376
anticipated losses 735 25 760 34 34
phantom shares 0 60 60
Total 1,473 -16 1,033 96 143 470
the accrual for anticipated losses at 31 december 2006 was fully utilized in 2007. in our opinion, other accruals will result
in an outflow of funds in the following financial year.
in the Management report (Heading: uS activities have a significant negative effect on 2007 business development)
it has been stated that a client is asserting claims totaling Eur 2.2 million (uS$ 3.3 million) for damages and additional
expenditures. a potential obligation is involved that results from past activities and whose existence is dependent on the
occurrence or non-occurrence of several uncertain future events, and therefore is not completely under our control.
Since there are more arguments in favour than opposed that a current obligation does not exist, we have not set up
any liabilities or accruals for this.
We have withheld a remaining installment from the acquisition of CCC of Eur 0.7 million (uS$ 1.0 million), which
would have been due in the third quarter of 2007. it is possible that we will assert claims for damages against the seller.
Since realization is not regarded as probable, i. e. more likely than not to occur, we have not reduced the liability.
there are no contingent liabilities which are likely to result in an outflow of funds.
16. TRADE PAYABLES
ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
the fair value of trade payables corresponds to the carrying amount. all liabilities have a residual term of up to one year.
67

68
iv. segMent reporting
17. REPORTING BY SEGMENT
primary reporting is by geographical region, distinguishing between Europe, america and asia. Secondary reporting is by
division. the Muehlhan Group does business in Ship Newbuilding, Ship repair, oil & Gas offshore and industry Services
divisions. Central functions and consolidation effects are shown in a separate entry to ensure transition to the Group.
in primary reporting, figures by region are broken down by external revenue, segment result (profit from operations (Ebit)),
gross assets, debts, investments and depreciation. inter-segment sales revenue, other items with no effect on results,
and direct investment income are not listed because they are immaterial. the Muehlhan Group does business in all
divisions in all regions, only in asia the Ship Newbuilding division was not taken into account until 2007. Within divisions,
figures are broken down by external sales revenue and Ebit. any further breakdown would not be useful since various
assets are used in different business segments.
breakdown by region:
in kEur External revenues EBIT Depreciation
2007 2006 2007 2006 2007 2006
Europe 156,843 131,132 14,004 11,234 3,416 3,266
america 26,730 44,753 -7,280 2,127 1,860 1,598
asia 12,399 8,152 1,952 -840 738 507
Central divisions / Consolidation 120 352 -5,815 -4,417 487 403
Total 196,092 184,389 2,861 8,104 6,501 5,774
in kEur
Gross assets
(balance sheet total) Debts Investments
2007 2006 2007 2006 2007 2006
Europe 67,943 55,386 35,965 29,911 6,796 2,844
america 16,415 19,389 3,862 13,684 1,294 3,872
asia 16,064 8,230 8,442 7,250 3,038 680
Central divisions / Consolidation 27,896 39,762 20,335 12,635 14,222 703
Total 128,319 122,767 68,605 63,480 25,350 8,099

eakdown by divisions:
ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
in kEur External revenues EBIT
2007 2006 2007 2006
Ship Newbuilding 65,710 71,564 2,561 3,247
Ship repair 45,086 37,334 6,695 4,250
oil & Gas offshore 13,647 17,616 -2,605 1,868
industry Services / others 71,529 57,522 2,025 3,156
Central divisions / Consolidation 120 352 -5,815 -4,417
Total 196,092 184,389 2,861 8,104
v. notes to the incoMe stateMent
18. COST OF MATERIALS AND PURCHASED SERVICES
Cost of materials is analyzed as follows:
in kEur 2007 2006
Cost of raw materials, consumables and supplies 40,369 37,026
Cost of purchased services 49,571 38,890
Total 89,940 75,915
19. PERSONNEL ExPENSES
the average number of people employed (including the Executive board) was as follows:
in kEur 2007 2006
Europe (including central divisions) 1,568 1,514
america 430 556
asia 399 248
Total 2,396 2,318
for the newly acquired MCN, 22 employees on average in asia were taken into account.
69

70
personnel expenses include:
in kEur 2007 2006
Wages and salaries 59,846 62,742
Social security costs 12,540 11,064
post-employment benefit costs 295 223
Total 72,680 74,029
Employee investment
in January 2007, Muehlhan aG introduced an investment program for executives of the Muehlhan Group in the form
of a phantom share program. in doing so, the beneficiaries are granted a claim to a cash payment from the company
that depends on reaching particular goals, and which places the beneficiaries in the same financial position as if they
had acquired a company share at the issue price and resold the share at the market price at the exercise date (so-called
virtual share option program).
the phantom shares of the Muehlhan Group may be exercised only if the company shares have experienced an increase
in value of at least 10% per year greater than the ipo price (Eur 5.80) since the allocation date as defined in greater detail
in the terms and conditions. for each tranche of phantom shares allocated to him or her, the beneficiary is bound to a
staggered waiting period that amounts to two years for a third of the allocated phantom shares, three years for another
third, and four years for the last third. the maximum term of the phantom shares is six years; after that they expire.
the issuance of up to 650,000 phantom shares had been planned to members of the Executive board, continental management,
CEos of the subsidiary companies, and other Muehlhan aG executives. as of 31 december 2007, 328,000
phantom shares had been issued. an accrual of Eur 60 thousand was formed for the liability arising from the employee
investment program. a corresponding expense for the allocation is included in personnel expenses.
20. ExPENSES IN RESPECT OF FINANCIAL INSTRUMENTS
Expenses in respect of financial instruments include in 2007 interest expenses and an amount of Eur 126 thousand
incurred in connection with the valuation of the loan at amortized cost (previous year: Eur 90 thousand).
borrowing costs were expensed pursuant to iaS 23. No borrowing costs were capitalized since these costs could not
be directly attributed to a qualifying asset.
21. OTHER OPERATING INCOME AND OTHER OPERATING ExPENSES
other operating income (2007: Eur 6,535 thousand; previous year: Eur 4,498 thousand) mainly include income
from GiVE’s waiver of receivables from MCN (Eur 2,009 thousand; previous year: Eur 0 thousand), exchange
gains (Eur 1,939 thousand; previous year: Eur 1,564 thousand), income from the release of provisions and
liabilities uncertain with regard to the amount (Eur 726 thousand; previous year: Eur 869 thousand), income
from the realization of receiv ables written off (Eur 175 thousand; previous year: Eur 632 thousand) and insurance
benefits (Eur 262 thousand; previous year: Eur 370 thousand).

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
other operating expenses (2007: Eur 30,267 thousand; previous year: Eur 25,065 thousand) mainly include
travel expenses (Eur 5,082 thousand; previous year: Eur 4,374 thousand), rentals and incidental expenses (Eur 2,795
thousand; previous year: Eur 2,577 thousand), exchange losses (Eur 4,080 thousand; previous year: Eur 2,499 thousand),
motor vehicle expenses (Eur 2,707 thousand; previous year: Eur 2,215 thousand), repairs (Eur 2,552 thousand;
previous year: Eur 2,244 thousand), write-down and losses of receivables (Eur 1,493 thousand; previous year:
Eur 542 thousand), legal and consultancy expenses (Eur 2,736 thousand; previous year: Eur 1,741 thousand),
insurance premiums (Eur 1,953 thousand; previous year: Eur 1,608 thousand) and staff training and other personnel
costs (Eur 2,151 thousand; previous year: Eur 1,492 thousand).
the aforementioned exchange gains and losses relate to translation adjustments within the meaning of iaS 21.52a.
22. TAxES ON INCOME
taxes on income are analyzed as follows:
in kEur 2007 2006
Current tax expense -2,354 -2,967
deferred taxes 1,705 556
Total -649 -2,411
in principle, MyaG and its German subsidiaries are subject to the corporate tax and solidarity levy as well as trade tax,
which in 2007 was still deductible from taxable income for corporate tax purposes. this results in a composite tax rate
of 40% in the financial year. However, for 2008 a composite tax rate of 31.5% is assumed, as a result of tax reform in
Germany.
reconciliation of theoretical and actual tax expenses:
in kEur 2007 2006
Earnings before taxes 1,101 6,333
theoretical tax expenses
at the tax rate of MyaG: 40% -440 -2,533
adjustments as a result of the utilization or
capitalization of hitherto unused tax loss carryforwards 130 377
Effects of differing tax rates -275 41
adjustments as a result of prior period
tax refunds and tax expenses -64 -296
Actual tax expenses -649 -2,411
actual tax rate 59.0% 38.1%
71

72
23. EARNINGS PER SHARE
Earnings per share were calculated on the assumption that 4,000,000 new ordinary shares issued in october 2006
are included in the annual average for two full months. as regards the period prior to the company’s conversion into
a joint stock company, it was assumed for comparative purposes that the number of shares amounted to 15,500,000
in the previous year and up to the conversion date in 2006 since the subscribed capital of the former limited liabi lity
company had been unchanged. this resulted in an average of 16,166,667 ordinary shares in 2006 and an average
of 19,500,000 ordinary shares in 2007. Since there were no potential ordinary shares at the balance sheet date, basic
and diluted earnings per share are identical.
vi. other disclosures
24. TRANSACTIONS WITH RELATED PARTIES (COMPANIES AND PERSONS)
transactions between the company and its subsidiaries deemed to be related parties have been eliminated on consolidation
and are not commented on in these notes.
related companies and persons have been mentioned under para. 9. the composition of the Executive board and the
Supervisory board is described under para. 28 and para. 29. the Chairman of the Supervisory board, dr Wulf-dieter
H. Greverath, is a related person within the meaning of iaS 24.9 since he is also a major shareholder of Muehlhan aG
through companies controlled by him. dr Wulf-dieter H. Greverath and the companies controlled by him are characterized
as “Greverath property” in the following comments. pursuant to a purchase contract of 15 September 2006, Muehlhan
aG acquired all shares in Muehlhan Corrosion protection Service (Shanghai) Co., ltd., Shanghai, China (MCN) from
Greverath property. the purchase contract was entered into at terms usual in the market. the property (including
buildings) at Schlinckstrasse 3 in Hamburg (head office of the Group) has been leased by Muehlhan aG from Greverath
property at terms customary in the market. in 2007 the Group’s expenses with respect to Greverath property totaled
Eur 491 thousand for rent, real estate taxes, Supervisory board compensation, and reimbursements of costs. these
expenses were offset by income in 2007 in the amount of Eur 2,077 thousand, of which Eur 2,009 thousand are
attributable to a waiver of receivables and otherwise from interest income and cost transfers.
at the balance sheet date, there were trade receivables from cost transfers against the Greverath property in the amount
of Eur 20 thousand and trade payables in the amount of Eur 1,027 thousand. the payables involve the purchase price
for the acquisition of MCN, Supervisory board compensation and cost reimbursements.
25. OTHER FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES
at the balance sheet date, normal contingent liabilities existed in respect of consortium memberships.
other financial commitments consisting mainly of rental and lease payments amounted to Eur 3,364 thousand of which
Eur 1,309 thousand is due in 2008, Eur 833 thousand is due in 2009 and Eur 1,222 thousand is due at a later date.

ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents
26. ExECUTIVE BOARD
Members of the parent company’s Executive board are:
dr andreas C. Krüger (Chairman), Hamburg
Mr bernd Janssen, buchholz
Mr Carsten Ennemann, Hamburg
one director represents the company jointly with another director or authorized officer. dr Krüger is exempted from the
restrictions imposed by Section 181 of the German Civil Code (bGb). the salaries of the parent company’s Executive
board amounted to Eur 895 thousand in the financial year.
27. SUPERVISORY BOARD
Members of the Supervisory board in the reporting year were:
dr Wulf-dieter H. Greverath (Chairman), Managing director, Hamburg
dipl.-ing. dr Gottfried Neuhaus, Managing director, Hamburg
Mr philip percival, Managing director, london, Great britain
on 11 february 2008, the Supervisory board was paid Eur 50 thousand in expenses for 2007.
28. FINANCIAL INSTRUMENTS
With respect to trade receivables, other receivables and other assets, loans, cash and cash equivalents, trade payables
and other liabilities, the book value approximates the market value. financial investments include interests that do not
trade on an active exchange and whose fair value cannot be determined reliably. therefore, they continue to be valued at
their acquisition cost. Similarly, the loan issued in 2006 is valued at its acquisition cost. in addition, we refer to Section ii.
of these notes, significant consolidation, accounting and valuation principles.
Capital risk management
the Muehlhan Group manages its capital with the objective of maximizing the income of stakeholders by optimizing
the relationship of external and equity capital. the equity ratio of Group companies should not be less than 25%. No target
is set for the parent company. for the Group there is a minimum consolidated equity ratio of 27.5% (from 2008: 30%)
in the reporting year, which must be maintained in accordance with bond terms. as of 31 december 2007, the Group
had a consolidated equity ratio of 46.5% (previous year: 48.3%).
Financial risk management
the parent company provides various treasury services to the Group companies. for example, it prepares a rolling
liquidity preview at regular intervals. otherwise, a cash pooling system is used whenever it is structurally possible. in
addition, the parent company regulates, manages and issues loans and makes available its own and, in cooperation
with specialized external companies, external bonding capacities. We assess specific risk exposures as follows:
73

74
Default risk
default or credit risks exist when contractual partners do not meet their obligations. Muehlhan regularly analyzes
the creditworthiness of every significant debtor and sets credit limits on this basis. due to the Muehlhan Group’s global
activities and diverse client base, there are no significant concentrations of default risks. the book value of all financial
assets plus the nominal values of contingencies without potential warranty obligation represents the maximum default
risk of the Muehlhan Group. to the extent that default risks are foreseeable for financial assets, they are reflected by value
adjustments.
Interest rate risk
Some 95% of the financial liabilities of the Group carry a long-term fixed interest rate. thus the Group does not face a
noteworthy interest rate risk.
Liquidity risk
risks from cash flow fluctuations are detected early by liquidity planning systems. the issuance of the loan and new
shares in 2006 has improved the liquidity situation of the Group on a sustained basis.
Currency risk
almost 60% of the revenues of the Group are generated in Euros or in the danish krone, which scarcely fluctuates in relation
to the Euro. the remaining revenues generated in foreign currencies are essentially matched by costs in the same
currency, so that currency risk from operations is restricted to the profit contribution of the corresponding companies.
the Group does not hedge this risk.
overall, foreign currency losses attributable to the strong Euro reduced the Group’s net income in 2007 by a total
of Eur 2.1 million. Most of this amount results from loan financing provided by the parent company for subsidiaries in
the foreign exchange zone. the primary currencies responsible for losses at Group level are the uS dollar (Eur 1.0
million), the united arab Emirates dirham, the Qatari rial (Eur 0.4 million) and the british pound (Eur 0.3 million). by
virtue of the Group’s altered financial structure, the impact of future exchange rate fluctuations on the income statement
is expected to be sharply reduced as of 2008.
Hamburg, 26 March 2008
the Executive board

Statement of the
Auditors´ Report *
„Auditors´ Report (Free translation of the original German Auditors´ Report)
We have audited the consolidated financial statements prepared by Muehlhan AG, Hamburg, comprising the
balance sheet, the income statement, statement of changes in equity, cash flow statement and the notes to the
consolidated financial statements, together with the group management report for the financial year from 1
January 2007 to 31 December 2007. The preparation of the consolidated financial statements and the group
management report in accordance with IFRSs as adopted by the EU, and the additional requirements of
German commercial law pursuant to § 315a Abs. [paragraph] 1 HGB and supplementary provisions of the
articles of incorporation are the responsibility of the parent company’s management. Our responsibility is to
express an opinion on the consolidated financial statements and on the group management report based on
our audit. In addition we have been instructed to express an opinion as to whether the consolidated financial
statements comply with full IFRS.
We conducted our audit of the consolidated financial statements in accordance with § 317 HGB and German
generally accepted standards for the audit of financial statements promulgated by the Institut der
Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and
perform our audit such that misstatements materially affecting the presentation of the net assets, financial
position and results of operations in the consolidated financial statements in accordance with the applicable
financial reporting framework and in the group management report are detected with reasonable assurance.
Knowledge of the business activities and the economic and legal environment of the Group and expectations
as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness
of the accounting-related internal control system and the evidence supporting the disclosures in the
consolidated financial statements and the group management report are examined primarily on a test basis
within the framework of the audit. The audit includes assessing the annual financial statements of those entities
included in consolidation, the determination of entities to be included in consolidation, the accounting and
consolidation principles used and significant estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements and the group management report. We believe that our
audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRSs as
adopted by the EU, the additional requirements of German commercial law pursuant to § 315a Abs. 1 HGB and
supplementary provisions of the articles of incorporation and full IFRS and give a true and fair view of the net
assets, financial position and results of operations of the Group in accordance with these requirements. The
group management report is consistent with the consolidated financial statements and as a whole provides a
suitable view of the Group’s position and suitably presents the opportunities and risks of future development.“
Hamburg, 26 March 2008
* Translation of the German Auditors´ Report
BDO Deutsche Warentreuhand
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
(Rohardt)
Wirtschaftsprüfer
(ppa. Armbrecht)
Wirtschaftsprüfer
75

76
Addresses
Worlwide
EuRoPE
Germany
Muehlhan AG
21107 Hamburg – Schlinckstraße 3
Chairman of the Executive board:
dr andreas C. Krüger
Chairman of the Supervisory board:
dr Wulf-dieter H. Greverath
phone +49 (0)40 752 71-0
fax +49 (0)40 752 71-123
www.muehlhan.com
myag@muehlhan.com
Muehlhan GmbH
26699 Emden – postfach 19 65
Managing directors:
andreas biermann, Christian petschke
phone +49 (0)4921 973 90
fax +49 (0)4921 290 33
emden@muehlhan.com
Muehlhan Bremen GmbH
28755 bremen – am Werfttor 8
Managing directors:
Siegbert Marquardt, Michael Schaak
phone +49 (0)421 693 26-9
fax +49 (0)421 693 26-88
bremen@muehlhan.com
Muehlhan Equipment Services GmbH
21107 Hamburg – Schlinckstraße 3
Managing director: dr andreas C. Krüger
phone +49 (0)40 752 71-0
fax +49 (0)40 752 71-130
mes@muehlhan.com
Muehlhan Rostock GmbH
18119 rostock – Werftallee 10
Managing director: behrend Mühlhan
phone +49 (0)381 519 20 58
fax +49 (0)381 524 00
rostock@muehlhan.com
Gerüstbau Muehlhan GmbH
21109 Hamburg – rubbertstraße 31
Managing director: Gerd Herrmann
phone +49 (0)40 75 60 95-0
fax +49 (0)40 75 60 95-60
geruestbau@muehlhan.com
Denmark
Muehlhan A / S
5492 Vissenbjerg – Hestehavevej 6
Managing director: Jens Moerk
phone +45 (0)64 47 13 13
fax +45 (0)64 47 13 33
denmark@muehlhan.com
France
Muehlhan S.A.R.L.
44612 St. Nazaire Cedex –
base-Vie Sous-traitants Cat / bp 119
rue de la forme Joubert
Managing director: Christian Guienne
phone +33 (0)240 22 65 53
fax +33 (0)240 22 65 54
france@muehlhan.com
Greece
Muehlhan Hellas S.A.
12462 Haidari athens – 12, palaska Street – Skaramanga
Managing directors: theodosius Nalbantudis, ioannis ragios
phone +30 (0)210 557 69 94
fax +30 (0)210 557 84 43
greece@muehlhan.com
Great Britain
Muehlhan Surface Protection Ltd.
ab21 0Gl aberdeen – unit 9, Greenrole trading Estate
Kirkhill industrial Estate, Howemoss drive, dyce
Managing director: robert Jack
phone +44 (0)122 477 30 17
fax +44 (0)122 477 45 22
mgb@muehlhan.com
Netherlands
Muehlhan B.V.
3133 KK Vlaardingen – James Wattweg 26
Managing director: ronald van der Giessen
phone +31 (0)10 426 49 60
fax +31 (0)10 473 58 14
netherlands@muehlhan.com
Norway
Muehlhan Norge AS
4033 Stavanger – fabrikkveien 2
Managing director: Jens Moerk
phone +47 (0)51 69 61 00
fax +47 (0)51 69 00 99
norway@muehlhan.com
Poland
Muehlhan Sp. z o.o.
80-531 Gdansk – ul. Sucha 31
Managing director: Zbigniew Skrzydlowski
phone +48 (0)58 343 22 53
fax +48 (0)58 343 02 24
gdansk@muehlhan.com
Muehlhan Steel Services Sp. z o.o.
71-012 Szczecin – ul. bronowicka 27
Contact person: Gerrit Van’t Verlaat
phone +48 (0)91 814 09 00
fax +48 (0)91 482 41 07
info.mpl@muehlhan.com

ussia
Muehlhan Morflot OOO
198035 St. Petersburg – Room 10-H
Gapsalskaya Street, 5-A
Managing Director: Sergey Morosov
Phone +7 (0)812 335 79 65
Fax +7 (0)812 335 79 67
morflot@muehlhan.com
turkey
Muehlhan Ellas S.A.
6-A Tuzla / Istanbul – Istanbul Turkiye Subesi
Icmeler Rauf Orbay Cad. Rize is Hani
Managing Directors:
Theodosius Nalbantudis, Ioannis Ragios
Phone +90 (0)216 44 60 07-161
Fax +90 (0)216 44 60 07-161
turkey@muehlhan.com
asia
United Arab Emirates
Muehlhan Dehan L.L.C.
Abu Dhabi – P.O. Box 93464
Managing Director: Günter Buhr
Phone +971 (0)2 673 44 29
Fax +971 (0)2 673 44 59
uae@muehlhan.com
Procon Emirates L.L.C.
Abu Dhabi – P.O. Box 27388
Managing Director: Günter Buhr
Phone +971 (0)2 621 86 0
Fax +971 (0)2 621 86 29
procon@muehlhan.com
Procon Emirates L.L.C.
Dubai – P.O. Box 82972
Managing Director: Günter Buhr
Phone +971 (0)2 674 09 90
Fax +971 (0)2 674 50 23
procon@muehlhan.com
Qatar
Muehlhan Dehan Qatar W.L.L.
Doha – Al Mannai Travel Building, Musherib Area
Office #12, 2nd Floor
Managing Director: Günter Buhr
Phone +974 (0)437 34 12
Fax +974 (0)437 28 93
qatar@muehlhan.com
people’s republic of China
Muehlhan Corrosion Protection Service
(Shanghai) Co., Ltd.
Shanghai 200011 – Suite 2301
1228 Zhong Shan Nan Rd
Managing Director: Hongbo Zhu
Phone +86 (0)21 63 08 18 55
Fax +86 (0)21 63 08 38 82
china@muehlhan.com
Gerüstbau Muehlhan GmbH
Hamburg – Germany
Muehlhan Rostock GmbH
Rostock – Germany
Muehlhan Equipment
Services GmbH
Hamburg – Germany
Muehlhan GmbH
Emden – Germany
Muehlhan Bremen GmbH
Bremen – Germany
singapore
Haraco Services Pte. Ltd.
Singapore 758118 – 54 Senoko Road
Managing Director: Sandra Segaran
Phone +65 (0)67 54 55 11
Fax +65 (0)67 54 43 77
singapore@muehlhan.com
Muehlhan Pte. Ltd.
Singapore 758118 – 54 Senoko Road
Managing Director: Gautam Arya
Phone +65 (0)67 54 55 11
Fax +65 (0)67 54 43 77
singapore@muehlhan.com
100% 100%
100% 100%
100% 100%
100%
100%
Muehlhan Surface Protection Singapore Pte. Ltd.
Singapore 758118 – 54 Senoko Road
Managing Director: Gautam Arya
Phone +65 (0)67 54 55 11
Fax +65 (0)67 54 43 77
singapore@muehlhan.com
Europe
Muehlhan Sp.z.o.o.
Gdansk – Poland
Muehlhan Steel Services
Sp.z.o.o.
Szczecin – Poland
Muehlhan AS
Vissenbjerg – Denmark
Muehlhan Norge AS
Stavanger – Norway
Mu
100%
North ameri
united states of amer
Muehlhan Surface Protecti
Houston, Tx 77396
5810 Wilson Road, Suite 220
Managing Director: Erich Stolz
Phone +1 (0)281 878 31 00
Fax +1 (0)281 878 31 97
sipco@muehlhan.com
Muehlhan Certified Coating
Concord, CA 94518 – 1045 De
Managing Director: John Elias
Phone +1 (0)925 686 15 50
Fax +1 (0)925 671 70 36
ccc@muehlhan.com

ehlhan AG (Hamburg, Germany)
Muehlhan S.A.R.L.
100% 100%
70%
100%
100%
51%
Ca
ica
n, Inc.
s Inc.
troit Avenue
“lucky” Vervilles
Nazaire – France
Muehlhan Morflot OOO
St. Petersburg – Russia
Muehlhan B.V.
Vlaardingen – Netherlands
Muehlhan Surface
Protection, Ltd.
Aberdeen – Great Britain
Muehlhan Hellas S.A.
Athens – Greece
Muehlhan Ellas S.A.
Istanbul – Turkey
100%
Muehlhan Offshore Inc.
lafayette, lA 70583 – West Willow St
Managing Director: Tim laborde
Phone +1 (0)337 231 00 52
Fax +1 (0)337 231 00 65
meaux@muehlhan.com
Muehlhan Marine Inc.
Houston, Tx 77396
5810 Wilson Road, Suite 220
Managing Director: Erich Stolz
Phone +1 (0)281 878 31 00
Fax +1 (0)281 878 31 97
sipco@muehlhan.com
USA Asia
Muehlhan Surface
Protection Inc.
Houston – USA
Muehlhan Marine Inc.
Houston – USA
Muehlhan Offshore Inc.
Lafayette – USA
Meaux Surface Protection
Inc.
Lafayette – USA
Muehlhan Certified Coatings
Concord – USA
Certified Coatings Company
Concord – USA
Muehlhan United Inc.
Houston – USA
100%
Muehlhan Corrosion Protection
Service (Shanghai) Co. Ltd.
Shanghai – China
Haraco Services Pte. Ltd.
Singapore
100% 100%
100%
100%
100%
100%
100%
100%
100%
100%
Muehlhan Pte. Ltd.
Singapore
Muehlhan Surface Protection
Singapore Pte. Ltd.
Singapore
Muehlhan Surface Protection
Middle East L.L.C.
Dubai – UAE
Muehlhan Dehan Qatar
W.L.L.
Doha – Qatar
Muehlhan Dehan L.L.C.
Abu Dhabi – UAE
Muehlhan Middle East
Holding Ltd.
Abu Dhabi – UAE
Procon Emirates L.L.C.
Abu Dhabi – UAE
Procon Emirates L.L.C.
Dubai – UAE
100%
100%
100%
100%
100%

Contacts and
Financial Calendar
muehlhaN ag
Schlinckstraße 3
21107 Hamburg
Phone +49 (0)40 752 71-0
Fax +49 (0)40 752 71-123
www.muehlhan.com
31 March 2008 Publication of year-end results 2007
13 May 2008 Publication of 1st quarter figures 2008
15 May 2008 General Meeting 2008 in Hamburg
15 August 2008 Publication of half-yearly report 2008
14 November 2008 Publication of nine-month figures 2008
31 March 2009 Publication of year-end results 2008
Notes
The Annual Report is published in German and English.
The German version is authoritative.
For further information about the company visit the website at
www.muehlhan.com.
Forward-lookiNg statemeNts
This report contains forward-looking statements related to the prospects and progress of Muehlhan AG.
These statements reflect the current views of the management and are based on projections, estimates and expectations.
Our assumptions are subject to risks and uncertainties, and actual results may vary materially.
Although we believe these forward-looking statements to be realistic, there can be no guarantee.
impriNt
Publisher: The Executive Board of Muehlhan AG
Editing und Coordination: Ties Kaiser
Concept and Design: Berichtsmanufaktur GmbH, Hamburg
Photography: Muehlhan AG, Corbis GmbH, Getty Images Deutschland GmbH, Fotolia,
© Uwe Bergeest / PIxElIO (Cover), © Marco Barnebeck / PIxElIO, © Kurt Michel / PIxElIO, © M. Hitzblech / PIxElIO
As of March 2008
© Muehlhan AG
iNvestor relatioNs
Ties Kaiser
Investor Relations Manager
Phone +49 (0)40 752 71-156
kaiser@muehlhan.com

www.muehlhan.com