ANNUAL REPORT - ZEPPELIN GmbH

2008 

ANNUAL REPORT 

ZEPPELIN GROUP FACTSHEET 

Sales 

2008 2007 2006 

Trade EUR m 2.208 2.080 1.735 

Industry EUR m 239 176 125 

Group 1 EUR m 2.447 2.257 1.860 

Employees (year average) 

Trade 1 5.304 4.518 3.973 

Industry 669 603 561 

Group 5.973 5.121 4.534 

of which trainees 311 247 221 

Fixed assets 

Additions EUR m 149,7 130,6 124,2 

Changes in consolidation group EUR m 0,6 – - 0,3 

Depreciation EUR m 54,3 48,6 47,4 

of which rental assets 

% of additions 36 37 38 

Additions EUR m 88,9 72,3 85,9 

Changes in consolidation group EUR m 0,0 – – 

Depreciation EUR m 31,0 26,8 28,3 

Results from ordinary activities EUR m 101,2 119,1 77,0 

Group net income EUR m 65,4 71,4 41,7 

Net cash flow EUR m 170,0 148,0 126,4 

Group equity EUR m 394,4 341,1 273,6 

of which 

Subscribed capital EUR m 100,0 50,0 50,0 

Capital reserves EUR m 60,0 60,0 60,0 

Revenue reserves EUR m 140,6 131,6 106,4 

Retained earnings of the Group EUR m 83,0 89,9 50,2 

Minority interests EUR m 10,8 9,7 7,0 

1) incl. ZEPPELIN GmbH

ZEPPELIN GROUP CONTACTS 

ZEPPELIN GMBH 

Registered Office: 

Leutholdstraße 30 

88045 Friedrichshafen 

Germany 

Phone +49 7541 202-201 

Fax +49 7541 202-210 

Headquarters: 

Graf-Zeppelin-Platz 1 

85748 Garching bei München 

Germany 

Phone +49 89 320 00-0 

Fax +49 89 320 00-482 

E-Mail: zeppelin@zeppelin.com 

TRADING 

Zeppelin Baumaschinen GmbH 



Germany 

Phone +49 89 320 00-0 

Fax +49 89 320 00-482 

E-Mail: zeppelin@zeppelin.com 

MVS Zeppelin GmbH & Co. KG 



Germany 

Phone +49 89 320 00-220 

Fax +49 89 320 00-222 

E-Mail: info@mvs-zeppelin.de 

Zeppelin Power Systems 

GmbH & Co. KG 

Ruhrstraße 158 

22761 Hamburg 

Germany 

Phone +49 40 853 151-0 

Fax +49 40 853 151-39 

E-Mail: powersystems@zeppelin.com 

This company is also your 

contact for: 

Zeppelin SkySails Sales & Service 

GmbH & Co. KG 

Hamburg, Germany 

Zeppelin Österreich GmbH 

Zeppelinstraße 2 

2401 Fischamend, Austria 

Phone +43 2232 790-0 

Fax +43 2232 790-262 

E-Mail: marketing@zeppelin-cat.at 

Phoenix-Zeppelin, spol. s r.o. 

Lipova 72, 25170 Modletice 

Czech Republic 

Phone +420 26 6015-200 

Fax +420 26 6015-361 

E-Mail: info@p-z.cz 

This intermediate holding 

is also your contact for 

the following companies: 

Phoenix Zeppelin, spol. s r.o. 

Banskà Bystrica, 

Republic of Slovakia 

ČZ LOKO, a.s. 

eska T ebová, Czech Republic 

Zeppelin-Körös-Spedit Kft. 

Budapest, Hungary 

Zeppelin Polska Sp. z o.o. 

Warsaw, Poland 

Zeppelin International AG 

Chamerstraße 85, 

6300 Zug, Switzerland 

Phone +41 41 747 00 30 

Fax +41 41 747 00 31 

E-Mail: zeppelin@zeppelin-int.ch 




Zeppelin Armenia LLC 

Yerevan, Armenia 

Zeppelin Belarus OOO 

Minsk, Belarus 

Zeppelin Russland OOO 

Moscow, Russia 

Zeppelin Ukraine TOW 

Kiev, Ukraine 

Zeppelin Turkmenistan JV 

Ashgabat, Turkmenistan 

Repräsentanz Tadschikistan 

Dushanbe, Tajikistan 

Repräsentanz Usbekistan 

Tashkent, Uzbekistan 

INDUSTRY 

Zeppelin Silos & Systems GmbH 


88045 Friedrichshafen, 

Germany 

Phone +49 7541 202-02 

Fax +49 7541 202-491 

E-Mail: zentral.fn@zeppelin.com 




Zeppelin Belgium N. V. 

Genk, Belgium 

Zeppelin Plast Tech S.r.l. 

Milan, Italy 

Zeppelin Systems Limited 

Nottingham, UK 

JMB Zeppelin Equipamentos 

Industriais Ltda. 

São Paulo, Brazil 

Zeppelin Systems USA Inc. 

Houston, U.S.A. 

Zeppelin Solid Technology 

(Beijing) Co. Ltd. 

Beijing, China 

Zeppelin Systems India Pvt. Ltd. 

Mumbai, India 

Zeppelin Gulf Co. Ltd. 

Juaymah, Saudi Arabia 

Zeppelin Technology 

Far East Pte. Ltd. 

Singapore 

Zeppelin Plastech Asia Pte. Ltd. 

Singapore 

Registered Office: 


88045 Friedrichshafen 

Germany 

Phone +49 7541 202-201 

Fax +49 7541 202-210 


zeppelin@zeppelin.com 

www.zeppelin.de 

Headquarters: 



Germany 

Phone +49 89 320 00-0 

Fax +49 89 320 00-482

1 With Zeppelin SkySails 

Sales & Service GmbH & Co. KG 

2 With MVS Zeppelin Österreich GmbH 

3 With ČZ LOKO, a. s., Tschechien 

4 Representation 

5 Representation in Moscow, 

Subsidiary in Turkey in foundation 


Garching bei München, 

Germany 

MVS Zeppelin GmbH & Co. KG 

Garching bei München, 

Germany 

Zeppelin Power Systems 1 

GmbH & Co. KG, 

Hamburg, Germany 

Zeppelin Österreich GmbH 2 

Fischamend (Vienna), 

Austria 

Phoenix-Zeppelin, spol. s r.o. 3 

Modletice (Prague), 

Czech Republic 

Phoenix Zeppelin, spol. s r.o. 

Banskà Bystrica, 

Republic of Slovakia 

Zeppelin Polska Sp. z o.o. 

Warsaw, 

Poland 

Zeppelin-Körös-Spedit Kft., 

Budapest, 

Hungary 


Friedrichshafen, Germany 

TRADE DIVISION INDUSTRY DIVISION 

Zeppelin International AG 

Zug, 

Switzerland 

Zeppelin Russland OOO 

Moscow, 

Russia 

Zeppelin Ukraine TOW 

Kiev, 

Ukraine 

Zeppelin Armenia LLC 

Yerevan, 

Armenia 

Zeppelin Belarus OOO 

Minsk, 

Belarus 

Zeppelin Turkmenistan JV 

Ashgabat, 

Turkmenistan 

Zeppelin Tadschikistan 4 

Dushanbe, 

Tajikistan 

Zeppelin Usbekistan 4 

Taschkent, 

Uzbekistan 

Zeppelin Silos & Systems GmbH 5 

Friedrichshafen, 

Germany 

Zeppelin Belgium N. V. 

Genk, 

Belgium 

Zeppelin Plast Tech S.r.l. 

Milano, 

Italy 

Zeppelin Systems Limited 

Nottingham, 

UK 

JMB Zeppelin Equipamentos 

Industriais Ltda. 

São Paulo, Brazil 

Zeppelin Systems USA Inc. 

Houston, 

U.S.A. 

Zeppelin Solid Technology 

Co. Ltd. 

Beijing, China 

Zeppelin Systems India Pvt. Ltd. 

Mumbai, 

India 

Dated: April 2009 

Zeppelin Gulf Co. Ltd. 

Juaymah, 

Saudi Arabia 

Zeppelin Technology 

Far East Pte. Ltd. 

Singapore 

Zeppelin Plastech 

Asia Pte. Ltd. 

Singapore

ZEPPELIN GROUP: 190 LOCATIONS 

USA 

Houston 

GREAT BRITAIN 

Nottingham 

GERMANY 

Friedrichshafen | 3 

SWITZERLAND 

Zug 

GERMANY 

Munich | 119 

BELGIUM 

Genk 

BRAZIL 

São Paulo 

ITALY 

Milan 

POLAND 

Warsaw |2 

AUSTRIA 

Vienna | 5 

HUNGARY 

Budapest 

BELARUS 

Minsk 

CZECH REPUBLIC 

Prague | 12 

UKRAINE 

Kiev | 7 

SLOVAKIA 

Banskà Bystrica |5 

RUSSIA 

Moscow | 14 

SAUDI ARABIA 

Jubaii 

COUNTRY 

Location 

INDIA 

Mumbai 

RUSSIA 

Moscow 

SINGAPORE 

Singapore 

TURKEY 

Istanbul 

INDUSTRY DIVISION TRADE DIVISION 

TURKMENISTAN 

Ashgabat | 3 

ARMENIA 

Yerevan 

COUNTRY 

Main location | No. of locations 

CHINA 

Beijing 

UZBEKISTAN 

Tashkent | 4 

TAJIKISTAN 

Dushanbe

Contents 

Management Board 2 

Directors’ Report 3 

Supervisory Board Report 6 

Corporate Boards 8 

A Vision Creates Values 

A Century of Tradition, Change and Growth 10 

The Zeppelin Airship Era 12 

Overcoming Boundaries 14 

Phoenix from the Ashes 16 

Zeppelin Today 18 

Zeppelin Worldwide 20 

Creating Value for our Customers 22 

People Create Values 24 

Sustainability is our Legacy 26 

Innovating into the Future 28 

Innovations 2008 

First Diesel-Electric Powered Dozer 30 

Turn Wind into Profit 32 

Innovative Rentals 34 

Energy Efficiency in Logistics 36 

Groundbreaking Filter Technology 38 

Group Management Report 

1. Business and Economic Environment 42 

2. Business Development of the Company 45 

3. Results of Operations, Financial Position and Net Assets 53 

4. Subsequent Events 57 

5. Risk Report 57 

6. Outlook 62 

Group Financial Statement 67 

ZEPPELIN GROUP FACTSHEET (front cover) 

190 LOCATIONS (front cover, double page) 

ZEPPELIN GROUP CONTACTS (back cover) 

STRUCTURE (back cover, double page)

Ernst 

Susanek 

President and CEO 

Central Functions, 

Power Systems and 

Trading Companies 

ex Germany 

Management Board 

Alexander 

Bautzmann 

Finance 

and Property 

Management 

Directors’ Report 

The Zeppelin Group can look back on a strong 2008, even if worldwide economic turbulence in 

the wake of the US financial and real estate crisis also impacted on our business, notably in the 

last quarter of the fiscal year. Successfully flouting the trend, we still achieved the highest sales 

revenues and highest cash flow in the history of our company in 2008: the year in which the 

Zeppelin Foundation and Zeppelin Group celebrated their centenary. The huge effort of recent 

years in our drive for renewal and greater efficiency have paid off, enabling us to push our Return 

on Sales well above past averages. In total, the Zeppelin Group achieved a net cash flow of 

approximately €170 million in fiscal 2008 (2007: €148 million). At 4 percent (2007: 5.2 percent) 

our ROS is at an acceptable level. And, with Zeppelin being awarded an A+ rating by Creditreform 

2 2008 zeppelin annual report 3 

Michael 

Heidemann 

Sales, Service 

and Rentals 

Germany 

Peter 

Gerstmann 

Controlling and 

Industry Division 

Rating AG for the fourth year running, this confirms the effectiveness of our ongoing commitment 

to capitalize on market opportunities and apply strict cost discipline throughout our business. 

Group revenues rose by 8.4 percent to € 2.447 billion (2007: € 2.257 billion). We generated this 

growth under our own power, without significant acquisitions. Non-domestic revenues continued 

their steady growth as a percentage of overall earnings, rising from 45 to almost 50 percent in 

2008. Internationalization and diversification – a strong commitment at Zeppelin since the early 

1990s – enable us to spread risk better across a number of countries and markets. Through 

strength in innovation and proximity to the markets we serve, every company in the Zeppelin 

Group has managed to sustain or expand its competitive position. 

Despite the weakening of markets during the last quarter of 2008, our trading companies still 

succeeded in raising sales revenues for the entire year, up 6.1 percent over 2007. In total, we sold 

19,054 construction machines, engines and lift trucks (2007: 19,487), achieving retail revenues of 

€ 2.208 billion (2007: €2.080 billion). Activities outside Germany were particularly dynamic. 

At Zeppelin International AG, the intermediate holding which has overall stewardship of our 

non-EU trading activities, sales revenues soared by 47 percent compared to 2007. However, 

significant currency devaluation in Russia and Ukraine in recent months has impacted severely on. 

Jürgen-Philipp 

Knepper 

HR (Labor Director), 

Legal and Compliance

Directors’ Report 

the Group's operating results for the year. The German rentals company and Zeppelin Power Systems 

both displayed strong positive trends. With each area posting revenue growth of 8 percent 

in 2008, our expansion strategy for these two business sectors is showing through in results. 

We also took key strategic steps in 2008 for future expansion: we founded Zeppelin Rental GmbH, 

which will in future steer the entire rental activities of the Zeppelin Group, and acquired a shareholding 

in the Hamburg-based company SkySails GmbH & Co KG, which complements the Power 

Systems portfolio with wind propulsion for ships. 

The Zeppelin Industry business also had a very strong 2008, continuing its uninterrupted growth 

of preceding years. Sales revenues rose by 36 percent to € 239 million (2007: € 176 million), 

with international business accounting for 66 percent of this total (2007: 83 percent). A healthy volume 

of orders kept engineering and production working to capacity over the entire year, despite 

a distinct slowdown on the relevant markets towards the end of 2008 which is expected to continue 

through 2009. Our growth strategy in 2008 also included activities to expand our value chain 

and open up new markets: for example, we acquired an engineering company in India and founded 

a subsidiary in Turkey. In addition, the joint venture we founded in 2007 with a partner in 

Saudi Arabia (Zeppelin Gulf Co. Ltd.) took up operations successfully. 

Delivering business excellence for the benefit of our customers is our credo – the benchmark we 

set ourselves every single day. This is about constantly being ready for change both in products 

and processes, and placing a premium on innovation. In 2008 the Zeppelin Group companies have 

channeled major effort and commitment into living up to this credo. The new product generations 

of our Trading division, which we rolled out with our manufacturer partners, push innovation 

boundaries above all in terms of greater operational efficiency and reduced carbon emissions. 

With new advanced filter technologies, the Industry division likewise introduced innovation to 

the benefit of customers. On the process side we have continued to drive through improvements 

in all our companies, for example introducing a new IT system in the largest Zeppelin Group company, 

Zeppelin Baumaschinen GmbH. Already in productive operation, the new solution is firmly 

on track to raise our productivity and make communication at customer interfaces swifter and 

more efficient. 

Looking into the future, the development of the Zeppelin Group and its companies is subject to 

considerable risk in 2009. Our company has not escaped the fallout from the global economic 

crisis. With market volumes tumbling (in some cases the shrinkage is enormous) compared to the 

first months of fiscal 2008, and in the light of continuing currency risks in the countries of eastern 

Europe, our sales revenue and profits have been under strain in the first quarter of 2009. Accordingly, 

taking a critical view of projected market volumes, we predict that sales revenues could 

decline by as much as 20 percent, with a Return on Sales between 2 and 3 percent. 

Given the uncertainty in our external environment, we are focusing all the more on our own 

strengths, from which we can derive the power to sustain our position on highly competitive markets. 

These strengths are many and varied. Our ownership structure is a case in point: being 

a Foundation company, we have strong financial security. Our profits remain largely in the company 

even at such difficult times as this, and are reinvested to the benefit of our customers. 

In addition, having boosted our ROS in recent years, we are now cushioned financially. Another 

strength is the strategic success which the Zeppelin Group has enjoyed in recent years. We have 

invested in diversifying and internationalizing our business, significantly easing our long-standing 

dependence on the German construction industry. We are now market leaders in many of the 

countries and core businesses in which we operate, making us a powerful and reliable partner for 

our customers. A key advantage for the Zeppelin Trading division is that we have strong, 

innovative manufacturer partners on our side. 

We are particularly well positioned in terms of our employees, whose commitment and identification 

with the company and its goals are key to our success. This is the mainstay for the future 

also. To secure this vital potential, we will continue to promote a spirit of enterprise among our 

employees in every Group company – through cooperative management styles with decentralized, 

clearly defined responsibilities, continuous professional development, and fair appraisal and 

remuneration. 

On behalf of the management board, I would like to express a special thank-you to the employees 

of the Zeppelin Group for their all-out commitment and superlative achievement. Our thanks of 

course also go to our customers and business partners, also to the Supervisory Board and General 

Works’ Council for the constructive and positive working relationship. 

In 2009 the Zeppelin Group embarks on a new century of its history. The risks and challenges 

engendered by the current global crisis are of colossal proportions. Yet our confidence remains 

unbroken. Over the first hundred years of its history, Zeppelin’s totally customer-centric approach, 

resolve and vision, innovation and will to change have time and again given the company the 

ability to move ahead and forge new paths into the future. 

Ernst Susanek 


ZEPPELIN GmbH 

4 2008 zeppelin annual report 5

The supervisory board was given regular status and progress reports about the organization 

and financial situation of ZEPPELIN GmbH Group verbally and in writing by the management board 

throughout 2008. Three board meetings were convened, at which the supervisory board – with 

input from various decision papers, reports and presentations – consulted with the management 

board on the planning, profit, asset position, operating finances and risk exposure of the company 

and its affiliated enterprises, and exercised supervisory control over the management board 

on this basis. At a board summit at the end of November, some of supervisory board members 

received a detailed presentation and appraisal from an external economics expert about 

economic development in eastern Europe, and discussed with management of the major Group 

companies about developments and future perspectives of the Zeppelin Group against the backdrop 

of the financial and economic crisis. The long-term financing and bank policy of the Group 

were key issues in these discussions. 

The supervisory board consulted intensively on strategic and investment planning. Following 

discussion with the management board, the supervisory board took decisions on a range of 

initiatives which – by law, statute or the Rules of Procedure for the Supervisory Board – require 

supervisory board approval. These included decisions on increasing equity capital, appointments 

of managing directors in affiliated companies, and acquisition of shareholdings to round out the 

Group’s portfolio and geographical spread in both Trading and Industry divisions. The board also 

agreed to the acquisition of a shareholding in the venture company SkySails, which has developed 

a sail propulsion system for use in the marine sector to complement traditional power 

systems. By founding a joint venture with SkySails, Zeppelin secures excellent business opportunities 

particularly in the long term for global sales and service of this innovative, environmentfriendly 

system. 

The supervisory board also addressed issues pertaining to corporate risk management and the 

selection of auditors. 

Josef Büchelmeier, 

Chairman of the Supervisory Board 

Supervisory Board Review 

The future organizational development of the Zeppelin Group and its management structure, as 

well as aspects of succession planning for the ZEPPELIN GmbH management board, were discussed 

at a plenary session of the supervisory board and in several meetings of the personnel 

committee. 

We were saddened to hear of the death on April 8, 2008, of Dr. Bernd Wiedmann due to an 

accident. Dr. Wiedmann was Chairman of the supervisory board of ZEPPELIN GmbH from 1985 

until 2001, and from 1995 to 2005 Chairman of the supervisory board of Zeppelin Baumaschinen 

GmbH. His even-handed, composed stewardship of these two corporate boards earned him great 

respect and esteem. We shall honor his memory in gratitude for his achievements. 

The annual financial statement and directors’ report, and the Group consolidated statement and 

directors’ report of ZEPPELIN GmbH to December 31, 2008, were audited by Ernst & Young AG, 

Stuttgart, the auditors elected by the shareholders’ meeting and commissioned by the supervisory 

board. The auditors issued an unqualified opinion on each of the statements and reports. 

The auditors’ report was submitted to each member of the supervisory board. Prior to the 

supervisory board balance meeting, there were two additional meetings concerning the audit of 

accounts, attended by the auditors, the Chairman of the supervisory board and other members 

of the supervisory board. At the accounts review meeting of the supervisory board on April 29, 

2009, the auditors reported on key findings and results of the audit, which as agreed also 

encompassed the Group’s early-warning risk identification system. 

The supervisory board has reviewed and endorsed the 2008 annual financial statement and 

consolidated accounts submitted by the management board. The annual financial statement and 

consolidated accounts of ZEPPELIN GmbH as per December 31, 2008, have been approved; the 

annual closure is accordingly declared. The supervisory board elected to follow the proposals of 

the management board regarding the use of the retained earnings. 

The supervisory board thanks the Zeppelin staff, employee representatives and the members of 

the management board for their dedicated, conscientious work, which has yet again brought such 

success for the Group. 

Friedrichshafen, April 29, 2009 

Josef Büchelmeier 



Corporate Boards 

Supervisory Board Management Board 

In accordance with Section 7 of the German Co-determination Act (MitbestG), the supervisory 

board is composed of the following members: 


(Chairman) 

Mayor of the City 

of Friedrichshafen 

Ralph Misselwitz* 

(Deputy Chairman) 

Field Services Master Craftsman, 

Chairman of Zeppelin Group 

General Works’ Council, 

Chairman of the General Works’ Council 

of Zeppelin Baumaschinen GmbH 

Dipl.-Ing. Werner Baier 


of Webasto AG Fahrzeugtechnik 

Manfred Enger* 

Service Technician, 


Heribert Hierholzer* 

Master Craftsman in Industry, 

Chairman of the Works’ Council 

of Zeppelin Silos & Systems GmbH 

Dr. Werner Pöhlmann 

Lawyer, tax accountant, 

certified public auditor 

† died April 8, 2008 

Vincenzo Savarino* 

2nd authorized representative of IG Metall 

labor union, Friedrichshafen-Oberschwaben 

Univ.-Prof. Dr.-Ing. Dr.-Ing. e.h. Dieter Spath 

Director of Fraunhofer Institut 

für Arbeitswirtschaft und Organisation 

and of the Stuttgart University Institute 

for Work Science and Technology Management 

Sibylle Wankel* 

Lawyer at IG Metall labor union – 

Bavaria region management 

Dr. Bernd Wiedmann † 

Former Mayor of the City of Friedrichshafen 

Lawyer 

Univ.-Prof. Dr. Dr. h. c. mult. Horst Wildemann 

Chair of business administration and 

management, logistics and production 

at the Technical University of Munich 

Dipl.-Ing. Eckhard Zinke* 

Sales Director, 


* Employee representatives 

Ernst Susanek (President and CEO) 

Alexander Bautzmann 

Peter Gerstmann 

Michael Heidemann 

Jürgen-Philipp Knepper 


Ferdinand Count Zeppelin 

Airship pioneer and 

founder of our company 

“You only have to want it and 

belief it, then you will succeed.” 


A Century of Tradition, Change and Growth 

On October 11, 2008, the City of Friedrichshafen and the Foundation companies ZEPPELIN GmbH and 

ZF Friedrichshafen AG came together in the Zeppelin airship hangar to celebrate the centenary of the 

Zeppelin Foundation and Luftschiffbau Zeppelin GmbH. The pictures and quotes on the following pages 

capture a few moments from this event. 

This was a celebration of our origins, and of the values which were engendered a century ago. But it was 

also a call to every shakeholder to sustain and promote these values for the coming generations. 

Every day we at Zeppelin work with passion and commitment to create lasting value – for our customers, 

our employees and our company. 


Günther H. Oettinger 

Minister President of the State 

of Baden-Württemberg 

“The development of airships was 

preceded by a grand vision: the 

dream of flight. In tiny steps, the 

toil and resolve of these pioneers 

and entrepreneurs transformed this 

age-old dream into reality. Their 

example reminds us how important, 

indeed essential, such visionaries 

are to progress. These are the people 

through which vague imaginings, 

ideas and hopes become reality.” 


The Zeppelin Airship Era 

Ferdinand Count Zeppelin was born on July 8, 1838, in Constance. We know from his diary that as early as 

1874 he was already investigating the idea of building a “balloon vehicle for conveying mail, cargo and passengers.” 

The idea gradually came to fruition – and in 1892, he commissioned the engineer Theodor Kober 

with the task of drawing up the design for an airship. On August 31, 1895, the Count was granted the first 

patent for a dirigible airship with multiple, serially arranged gas cells. He embarked on the construction of his 

first airship in Manzell by Germany's Lake Constance on June 17, 1899, assisted by Dr. Ludwig Dürr, who 

later became chief designer and builder of all the Zeppelin airships. On July 2, 1900, the first Zeppelin airship, 

the LZ1, finally rose from its floating assembly hall into the evening sky above Lake Constance. 

On August 4, 1908, the LZ4 embarked upon its fateful 24-hour journey down the Rhine to Mainz. On the 

return flight, the LZ4 had to make a forced landing in Echterdingen due to engine damage. Shortly after 

landing, the airship was torn from its moorings by a storm. Out of control, it caught fire and burnt to nothing. 

Even though no one was seriously injured in the inferno, the accident would have meant the end of the 

airship project but for the spontaneous response from the public. Donations poured in from all over the country, 

amassing an impressive 6 million marks. It was this donation which enabled Count Zeppelin to continue his 

life's work. On September 8, 1908, he founded Luftschiffbau Zeppelin GmbH, and transferred his majority 

shareholding in this company to his newly established Zeppelin Foundation. The foundation’s declared 

purpose at the time was to assist efforts to promote airships and to deploy this technology for the purpose 

of science. 


Hans-Georg Härter 

Chief Executive Officer 

of ZF Friedrichshafen AG 

“The industrial enterprises 

founded here a century ago 

continued beyond the vision of 

their founder. They became – 

and remain – originators of a 

stream of innovations for other 

technologies and markets.” 


Overcoming Boundaries 

For decades, the success of airship technology bred a charisma that transcended the boundaries of 

Germany and Europe. 

Count Zeppelin’s original airship company was also the rootstock of other enterprises which today are 

globally active, among them Maybach-Motorenbau (now MTU or Tognum AG), Dornier, and ZF Friedrichshafen 

AG, which like the Zeppelin Group is owned by the Zeppelin Foundation. 

To round out the picture, in 2001 a Zeppelin airship again took to the skies: that year the official permit was 

granted for the Zeppelin NT (New Technology), which blends the original rigid-airship design principle with 

modern aviation technology. The Zeppelin NT makes flying an unforgettable experience, and has carried over 

90,000 passengers since its maiden flight in 2001. 

All these enterprises, and not least the present-day Zeppelin Group, combine to put Friedrichshafen and the 

Lake Constance region well and truly on the map as one of Germany’s and Europe’s leading industrial 

centers. Our company is a significant part of the heritage of Ferdinand Count Zeppelin. And it is our responsibility 

to uphold his tradition in everything we do. 



Mayor of the City of Friedrichshafen, 

Chairman of the Zeppelin Foundation, 


of ZEPPELIN GmbH 

“Vision, strength, and the resolve 

to make technical progress happen 

– all embedded in a strong 

sense of social responsibility – 

these talents and characteristics 

of Count Zeppelin are the 

groundwork he laid for future 

generations. They have become 

a measure for each of his successors 

in the stewardship of the 

Zeppelin Group.” 


Phoenix from the Ashes 

The Hindenburg accident in Lakehurst in 1937 and the outbreak of World War II brought the airship 

era to an abrupt end. Following the war, the forced liquidation on January 1, 1947, by the Allied 

military government spelt the ultimate demise of airship construction. The restriction would not be 

lifted for another nine years; meanwhile, the forced breakup of the Zeppelin Group left our company 

without production equipment or products. 

Yet the Zeppelin people remained true to their founder's legacy. The vision, courage to innovate and 

the steadfast will to succeed would once again become the driving forces to rebuild what once was. 

Two new enterprises, Metallwerk Friedrichshafen GmbH and Fahrzeug Instandsetzung GmbH, 

Friedrichshafen, embarked upon fresh ventures, including production of lightweight structures and 

large vessels for the chemicals industry, vehicle maintenance and antenna systems for Germany’s 

fledgling beam-radio network. The roots for the Trading division were put down in 1954, when 

Zeppelin secured rights in the Federal Republic of Germany for selling and servicing Caterpillar construction 

machines and engines. When the activities of Zeppelin Metallwerke GmbH merged with the 

Trading and Industry divisions in 1961, the present-day ZEPPELIN GmbH came into being. This farreaching 

decision created the structures which are still in place to this day. 


Ernst Susanek 


of Luftschiffbau Zeppelin GmbH 

and ZEPPELIN GmbH 

“We can look back with pride and 

respect at what has been achieved - 

not least because one hundred years 

is evidence of constancy. Yet it equally 

demonstrates our company’s ability 

to adapt to permanent change.” 


Zeppelin Today 

The Zeppelin Group is today organized into two business divisions: trading and industry. Both are well 

positioned strategically. Leaders in technology and top performers in the markets they serve, the divisions 

have healthy growth potential. The Zeppelin Trading division is Europe's largest sales, service and rental 

organization in the construction machine industry, and one of the largest in the world. The Friedrichshafenheadquartered 

Zeppelin Industry division is one of the world's largest providers of customized systems for 

conveying, storing, blending, dosing and weighing bulk solids, specializing in plastics and rubber and the tire 

industry. 

In 2008, the Zeppelin Group with its 6100-strong workforce (as per December 31, 2008) achieved a worldwide 

sales volume of some € 2.4 billion. In strategic terms this dynamic growth derives from total dedication 

to our customers, combined with pioneering innovation in construction machine and engine technology and 

in bulk solids handling technology – plus a systems philosophy by which we act as a one-stop source of 

business excellence for our customers. Over the last 15 years, we have also relentlessly pushed ahead in 

our drive to expand and internationalize the Zeppelin Group. We have remained so committed to this growth 

strategy not least because we have to overcome the boundaries of our markets in order to sustain our 

position in ever tougher competitive environments. 

Since 2001 Zeppelin has subjected itself to an annual external rating by Creditreform Rating AG, Neuss. 

On a scale from ‘AAA’ (the top rating) down to ‘D’, Zeppelin has never achieved worse than an ‘A’. In 2008, 

for the third year running, we were even awarded the rating ‘A+’ 


“The legacy of Count Zeppelin 

lives on - both in his foundation 

and in the enterprises which he 

founded. Ventures of all sizes, 

from medium-sized enterprises 

to global corporations, have 

flourished on the strength of 

this legacy.” 



Zeppelin Worldwide 

In the 1990s, as the partnership with Caterpillar strengthened and deepened, the Zeppelin Trading division 

began to expand internationally. We were successively awarded exclusive distribution rights for the Czech 

Republic and Slovakia (1991), Austria (1992), Ukraine (1996), Northwest Russia (1998), the states of 

Tajikistan, Turkmenistan and Uzbekistan in Central Asia (2001), Southwest Russia (2002), Belarus (2004) and 

Armenia (2005). By expanding into markets with promising opportunities we have put the Zeppelin Group 

on an excellent footing for future development. With new international outlets and branches opening 

regularly, we are continuing our drive to be as close to our customers as possible. 

Managed from the Friedrichshafen headquarters, the Zeppelin Industry division has in recent years also 

expanded its international presence and is now represented in all the world's major centers for the plastics 

processing and chemicals industry. As well as the parent plant in Friedrichshafen, the division has production 

facilities in Belgium, Brazil and since 2008 in Saudi Arabia, with another facility under development in 

Turkey. The Zeppelin Industry division also has engineering and sales companies in the UK, Italy, USA, India, 

Singapore, China and a representation in Moscow. 

Measured in terms of employee numbers, Germany is still the Zeppelin Group's major location. Our subsidiaries 

Zeppelin GmbH & Co. KG (rentals), Zeppelin Baumaschinen GmbH (sales and service), Zeppelin Power 

Systems GmbH & Co. KG (engines and power systems) and Zeppelin Silos & Systems GmbH (silos and 

conveying equipment) employ 53 percent of the group's workforce at over 120 sites throughout Germany. 

But the strongest expansion in recent years has taken place in our companies outside Germany, with the 

subsidiaries of Zeppelin International AG in eastern Europe leading the way. 


“For a century now, the Zeppelin 

Foundation and its companies 

have shown though their dedica- 

tion and creativity that the values 

which Zeppelin has engendered 

aren’t assets which can simply be 

owned. They have to be nourished 

and sustained by a steady stream of 

inventiveness.” 



Creating Value for our Customers 

Zeppelin is committed to partnering with customers, taking care to align product and service portfolios to 

what our customers want. With innovative products and services, we strive to deliver the highest added 

value in the industry, and contribute to enhancing our customers’ own competitive strength – so reads the 

Zeppelin Group’s mission statement. 

Caterpillar construction machines work in every area of the mining and construction industries. There is a 

machine for every application: for mining, for constructing buildings, roads, bridges and tunnels, and for creating 

stunning landscapes. With our Caterpillar and MaK engines, SkySails wind-propulsion system, also with 

Hyster-brand lift trucks and handlers, we in turn make sure things keep moving. And when it comes to 

manufacturing, conveying, storing, blending, dosing and weighing powders and pellets for the chemicals, 

plastics and food industries and for rubber and tire manufacturers, the Zeppelin Industry division offers 

practice-tested technology and customized system solutions. 

Yet the Zeppelin systems philosophy is about more than innovative products. It embraces our commitment 

to offering customers the complete range of support and services associated with our machines and 

equipment. Through synergy effects we can achieve decisive benefits for our customers: 

• Innovative systems which are an exact fit for the customer’s particular demand profile 

• Economic investment 

• Fast availability of machines, plant and parts 

• Excellent operational efficiency 


24 

“Even a brief review of our company 

history makes abundantly 

clear that the success is down to 

the courage, resolve and vision of 

many, many people. People who 

even when things got tough could 

not be deterred from pursuing 

their dreams.” 

Ernst Susanek 


People Create Values 

Our founder Ferdinand Count Zeppelin was a pioneer with the vision and sense of purpose to spur the people 

around him to highest achievement. Celebrated entrepreneurs at Zeppelin's side included Dr. Hugo Eckener, 

Claude Dornier, Alfred Count von Soden-Fraunhofen, Alfred Colsman, Ludwig Dürr and Karl Maybach. They 

all embodied Count Zeppelin's example but also had their own vision of purpose, and the skill, creativity and 

passion to turn their vision into reality. They all took up the challenge of enterprise and in turn motivated the 

people at their side. And highly successfully too, as evidenced not just by the Zeppelin Group today, but also 

by the numerous companies which emerged from the original airship venture. 

It is people who create values. We at Zeppelin know that our employees are the company's most important 

assets. Their ideas, their talents and the commitment they bring to their work are key to our success. To push 

the pace of innovation, increase productivity and, above all, be a totally customer-focused business, we have 

to give our employees the conditions they need to develop their strengths. Accordingly, we cultivate our 

talent, helping people stretch and fulfill their potential. Teamwork, exemplary leadership and the will to change 

are all central to our corporate culture. 

We uphold this culture in many ways: through our corporate mission statement, in which we have also 

defined a code of management practice, through regular and above all fair performance appraisals of every 

employee, and a wide range of opportunities for continuous professional development. We are assiduous in 

communicating corporate strategy and goals to our employees promptly and extensively through media such 

as our employee magazine Z intern; regular management summits, informal meetings and above all personal 

dialog are all integral to how we communicate within the company. Profit-sharing for employees, introduced 

at the largest Zeppelin Group company, Zeppelin Baumaschinen GmbH, over ten years ago now, helps 

encourage strong employee identification with the goals of our company. 

2008 zeppelin annual report 25

“Count Zeppelin’s vision of aviation 

brought progress not only in 

technology and business front. 

For Count Zeppelin, progress 

also meant social responsibility. 

His legacy lives on, both in the 

Zeppelin Foundation and in the 

ventures he founded.” 



Sustainability is our Legacy 

Count Zeppelin was a visionary in many respects – not least as someone with a strong sense of citizenship. 

In establishing the Zeppelin Foundation in 1908 and transferring his company shares to the foundation, he was 

expressing his gratitude for the funds so generously donated by the German people following the tragic end 

of the LZ 4 airship in Echterdingen. He was also realizing a vision: to secure for future generations his ideas 

and ventures, and also to uphold his conviction that free enterprise must be tied to social responsibility. In 

terms of sustainability, our founder was years ahead of his time, and his legacy remains embedded in our 

corporate culture. 

We at Zeppelin consider that success comes with obligations, and corporate social responsibility is key to our 

understanding of what we are. Each year, we make over part of our profits to the Zeppelin Foundation, whose 

funds exclusively benefit non-profit and charitable causes. We also donate funds directly and have our own 

sponsorships in education, culture, social welfare and sport. Zeppelin University is a case in point. We founded 

and are among the main sponsors of this private, state-recognized university at which 600 young people 

are now studying Bachelor’s and Master's programs. We have also for many years sponsored the Friedrichshafen 

volleyball team. We staged a major fundraising drive in aid of the flood catastrophe in eastern 

Germany and the victims of the tsunami in South East Asia, and in 2008, for the Menschen für Menschen 

Ethiopia aid program founded by Karlheinz Böhm. And because arts and culture also answer to a basic human 

need, we also sponsor the Tyrol Opera and Concert Festival. The Zeppelin foundation and the Zeppelin 

Group - to which Zeppelin Wohlfahrt GmbH also belongs - have trailblazed an example for many other companies 

in Germany and far beyond its boundaries. 

We are proud to reaffirm this commitment as we embark upon a new century in our corporate history, 

always mindful that true corporate social responsibility can only have impact and build values if it is preceded 

by entrepreneurial success in all its many facets. 


“Technological vision, a robust 

business basis and people working 

together: that's what’s drives inno- 

vation – then and now.” 

Hans-Georg Härter 


Innovating into the Future 

No other manufacturer of construction equipment and diesel engines comes anywhere near matching our 

partner Caterpillar’s investment in research and development of new products: close on US$ 5 million per 

day. Every year, a stream of new products reaffirms Caterpillar’s position as a world-beating innovator and 

market leader. Fuel efficiency, low emissions, driver comfort, ease of use, versatility of operation – all combine 

to guarantee excellent productivity and economy. As one of the largest Caterpillar dealers worldwide, 

Zeppelin plays a key role in the development of new machine and engine generations. Through ongoing 

contact with customers, our sales and service teams learn what customers are looking for, what solutions 

they need to drive their business. Accordingly, our organization partners actively with Caterpillar on numerous 

projects for developing new product generations. 

Development of innovative technology also enjoys top priority in the Zeppelin Industry division, enabling us 

to match and exceed the growing requirements of our customers for performance, innovation and quality. 

Our Technology Center works to enhance procedures for handling bulk solids, analyzing product features and 

testing alternative ways of processing to harvest data which can be channeled into new process technology. 

Our Friedrichshafen center plays an integral role in these efforts, and has been expanded several times in 

recent years. This testing plant, the largest of its kind in the world, tests handling procedures for bulk solids 

in powder and pellet form. This enables us to test and optimize plant configurations for plastics such as 

polyethylene or polypropylene as well as bulk solids for the rubber and tire industry such as carbon black and 

products for profile extrusion (PVC). So before making an investment decision, customers can witness the 

power and capability of the plants which we plan and manufacture. 


INNOVATIONS 

2008 

CAT TRACK-TYPE 

TRACTOR D7E 

With the world's first dieselelectric 

driven construction 

machine in the mid-range 

segment, Caterpillar offers 

unrivalled efficiency and environment-friendly 

operation. 


First Diesel-Electric Powered Dozer 

In 2008, Caterpillar launched the first dozer with hybrid 

diesel-electric drive, the CAT D7E, once again writing history 

in engine and construction machine technology. The twin goals 

of this development were to drive down diesel consumption 

and reduce carbon emissions without compromising on performance. 

The outcome is a staggering 25 percent better 

fuel efficiency compared to predecessor models. Delivering 

compelling economy and environmental efficiency, the 

machine also requires fewer replaceable parts – 60 percent 

fewer on the D7E 60, for example. 

The decades of experience of our manufacturer partner 

Caterpillar in electric power systems and generators were all 

distilled into the development of this new drive technology. 

The 27-tonne class D7E is powered by a 175 kW Caterpillar 

engine. The track-type tractor is neither reliant on traditional 

mechanical power transmission with gear system and clutch, 

nor does it need a drive belt, because an electric engine can 

also drive components such as air conditioning and water 

pumps via a separate system. So there is no need even for 

a conventional dynamo. Even the differential-steering components 

are driven directly by the electric engine, ensuring 

excellent high-precision steering. 

This groundbreaking innovation is emblematic of Caterpillar’s 

commitment to sustainable development, helping customers 

cut costs and reduce emissions. Our manufacturer partner 

has embedded this goal in its Vision 2020: to lead the world 

on energy and environmental design, and on the criteria for 

“green building”. 


INNOVATIONS 

2008 

SKYSAILS 

Combining advanced diesel 

engine technology from MaK 

and Caterpillar with SkySails 

wind propulsion system, 

we are charting a fresh and 

promising course which is 

unprecedented in our industry. 


Turn Wind into Profit 

Fuel efficiency and lower carbon emissions are key to raising 

competitive strength – also for the customers of Zeppelin 

Power Systems GmbH & Co KG. In the 15 kW to 16 MW 

range, Caterpillar and MaK engines (also part of the portfolio 

of our manufacturer partner) serve as main and auxiliary 

power systems in container ships, freighters, ferries, fishing 

vessels and cruise ships, as well as locomotives, construction 

machines, utility vehicles and other industrial machines. 

The CAT-driven power generators and the combined heat and 

power plants developed by Zeppelin Power Systems ensure 

reliable, efficient power delivery. 

Last year Zeppelin Power Systems acquired a shareholding 

in the Hamburg-based company SkySails GmbH & Co. KG, 

again enacting our commitment to offering customers – 

in this case marine customers – innovative solutions to help 

them raise productivity and do business more efficiently. 

The unique SkySails system is a wind-based propulsion 

system for ships. Depending on prevailing wind conditions, 

the huge sail can reduce annual fuel costs by between 

10 and 35 percent. As soon as the sail is up, the captain can 

throttle back on diesel engine power. Virtually any vessel can 

be retro-fitted or outfitted ex-works with SkySails as an 

auxiliary power system. If this technology were to be used 

consistently worldwide, we would be able to cut carbon 

emissions by over 150 million metric tons every year. In combining 

advanced MaK and Caterpillar diesel engine technology 

with SkySails propulsion, we are charting an unprecedented 

– and highly promising – course in our industry. Fully aligned 

with our strategy to pursue new market opportunities in the 

marine sector, this partnership also proudly upholds the tradition 

of innovation of our founder Ferdinand Count Zeppelin: 

dare to innovate, and believe in success. 

Another groundbreaking innovation from Caterpillar in recent 

years was ACERT – Advanced Combustion Emissions 

Reduction Technology – for engines. Comparable with earlier 

development milestones such as the turbo loader or chargeair 

cooling, ACERT has helped reduce emissions by up to 

50 percent over preceding engine generations with conventional 

technology. ACERT features multiple injection, optimized 

air management and advanced control electronics 

enabling interactive communication between the engine and 

other elements of the power system. 


INNOVATIONS 

2008 

CONSTRUCTION 

SITE TOUR 

This marketing tool earned 

MVS Zeppelin first prize in the 

European Rental Awards, beating 

competitors from all over Europe. 


Innovative Rentals 

With the market in Europe worth € 32 billion in 2008 alone, 

European construction machine and equipment rentals offer 

excellent growth opportunities. An early mover into this segment, 

Zeppelin is now one of the largest rental companies in 

the industry. We opened our first rental outlets back in the 

early 1990s, and have been expanding coverage ever since. 

Our rental activities in Germany, where we are market leader, 

are managed by our subsidiary MVS Zeppelin GmbH & Co. 

KG. MVS Zeppelin operates over 110 rental outlets and offers 

customers a fleet of over 42,000 items of equipment: 

construction equipment and machines, work platforms, 

traffic and construction site security systems, room and 

sanitary cell systems and vehicles. The Zeppelin Group has 

also been assiduous in developing this business outside 

Germany, and continues to open new outlets in Austria, the 

Czech Republic, Slovakia and Russia. Every rental station has 

a clear visual identity because all bear the standardized brand 

identity The CAT Rental Store. Our rental activities will soon 

all be together under the stewardship of Zeppelin Rental 

GmbH, which we founded in 2008. 

MVS Zeppelin was proud to receive a very special accolade 

in 2008 from the European Rental Association. The “Site 

Tour 2007” campaign earned MVS Zeppelin first prize in the 

Best Rental Promotional Campaign at the European Rental 

Awards (the first to be held), beating competitors from all 

over Europe. The idea, which increased sales and created 

closer ties with customers, was targeted directly at the point 

of interest. Over 600 construction sites were visited by our 

special tour bus, styled in the Zeppelin corporate design. Also 

on board was the local station manager – to discuss ongoing 

and planned projects with customers directly on site and 

speak about the rental equipment they were likely to require. 

This innovative marketing instrument was a huge success, 

and the tour was repeated in 2008. 

Innovative ideas and flexibility, combined with state-of-theart, 

robust technology are part and parcel of the Zeppelin 

experience at all the group's rental companies. Every year, 

we invest large sums into fleet renewal. We also offer our 

customers a range of services such as special construction 

shops for professionals (Profi-Baushop), rentals complete 

with operators for large and special machines, delivery and 

pickup services, one-way rentals and all-in service and support. 

This is exactly what customers are entitled to expect 

from the number one in the rentals business. 


INNOVATIONS 

2008 

HYSTER JXN ELECTRIC 

FORKLIFT TRUCK 

The new four-wheel electric 

truck outperforms any other 

vehicle in its class on energy 

efficiency; thanks to its zeroturn 

radius it offers excellent 

maneuverability and stability. 


Energy Efficiency in Logistics 

The need for energy efficiency is growing in importance 

everywhere – also in internal logistics. In 2008, a groundbreaking 

innovation was brought to market by our 

manufacturer partner the US-American NACCO Materials 

Handling Group: the new generation of Hyster electricpowered 

lift trucks boasts the industry’s lowest energy 

consumption and offers compelling productivity. The trucks 

are proof that carbon emissions can be reduced in logistics 

without necessarily compromising on cost efficiency. 

Two performance settings ensure the best balance between 

energy consumption and productivity. At the eLo setting 

(extra low energy consumption), the Hyster lift truck consumes 

on average 16 percent less energy than comparable 

equipment of other makes, without any loss of performance. 

At the HiP setting (high productivity), performance is 

substantially higher than competing equipment in the same 

class – but without a disproportionate increase in energy 

consumption. Fleet managers can also fine-tune the balance 

between performance and energy efficiency in operation by 

adjusting the consumption settings of the lift truck precisely 

to the conditions in which the machine will be operating, 

or to the capabilities of drivers – enabling drivers to focus 

exclusively on the task in hand. Another added-value feature 

is the zero-turn radius. This expanded turning functionality of 

Hyster four-wheel JXN forklift trucks provides virtually the 

same maneuverability as a three-wheel truck. Yet with four 

wheels, the vehicle is more flexible and precise in tight corners 

and offers greater stability, also on uneven surfaces. 

And, to raise productivity yet another notch, the new Hyster 

electric-powered trucks feature extra-large battery capacity 

and the fastest lifting speeds in their class. 

With 80 years of experience in design and production of 

warehouse vehicles, NACCO is the world's oldest manufacturer 

of lift trucks and a strong manufacturer partner of 

Zeppelin. Complementing the new electric-powered trucks, 

the most recent instance of NACCO’s strength as an innovator 

is the warehouse simulator. This software enables enterprises 

to run true-to-life simulations of all the processes in 

their warehouse and calculate how best to configure storage, 

deploy personnel and machines. 


INNOVATIONS 

2008 

HEPA FILTER 

Co-developed with the Karlsruhe 

Research Center, the HEPA filter 

(high performance particle filtration) 

offers one hundred times 

the performance of conventional 

filters. 


Groundbreaking Filter Technology 

Every year, the Zeppelin Industry division invests in new, 

enhanced technology to expand its product portfolio and, in 

turn, its value chain of core competences: storing, conveying, 

blending and dosing bulk solids in powder and pellet form. In 

2008 the division again rolled out groundbreaking innovations. 

Last year we successfully launched our new filter technology 

product business. Having accumulated so much expertise in 

plant construction and experience along the plastics processing 

and production workflows, we were ideally positioned to 

optimize filter designs. We soon gained substantial market 

share with the new business. The Zeppelin Industry division’s 

filter portfolio, built for the full range of requirements on 

pneumatic conveying systems, now includes quite a variety 

(silo binvent filters, aspiration filters, safety and inline filters). 

The Zeppelin filter technology is also a groundbreaking 

innovation in other sectors: A HEPA filter (high performance 

particle filtration) co-developed with the Karlsruhe Research 

Center is now being prototyped in a biomass power plant. 

Offering one hundred times the performance of conventional 

filters, the new filter system could become the new standard 

for small-scale power stations and incinerator systems, opening 

up totally new markets for Zeppelin. 

In addition, a new pneumatic conveying system with a 

special bypass technique has been installed in the Zeppelin 

Technology Center to conduct trials. This expands our services 

to include other product groups. A specially developed 

process lock-gate has made its debut in productive operation 

in a customer plant, and our production achieved major 

progress in the development of a new welding technique for 

silos, which helps accelerate production times. 



40 2008 ZEPPELIN ANNUAL REPORT 41


1. BUSINESS AND GENERAL CONDITIONS 

Economic background 

The Zeppelin Group has two divisions: Trade and 

Industry. The business activities in the Trade 

division consist of sales, services and rental of 

Caterpillar construction machines, Caterpillar 

construction machinery and diesel engines, 

MaK ship engines, Terex mining equipment and 

Hyster industrial trucks. Zeppelin is the exclusive 

sales partner of Caterpillar Inc., Peoria (IL/USA), 

in Germany and Austria, numerous countries in 

central and eastern Europe and central Asia. 

There is some overlap of the sales territory for 

industrial trucks. In this sector, Zeppelin has the 

exclusive sales rights for the brand Hyster of 

the US manufacturer NACCO Materials Handling, 

Mayfield Heights (OH/USA). All the companies 

in the Trade division are market leaders in 

their particular areas of the construction machinery 

business. The Company also sells a large 

number of add-on units as well as Claas and 

AGCO agricultural machinery and Ponsse 

forestry machines in some territories. Under 

the management of Zeppelin Power Systems 

GmbH & Co. KG, the sales and service of 

auxiliary wind propulsion systems for the manufacturer 

SkySails is currently being expanded. 

The business activity of the Industry division 

comprises the development and manufacture 

of silos and materials handling for the production 

and processing of high-quality bulk goods in 

the worldwide market for plastics, rubber and 

tires. In this area, Zeppelin is one of the leading 

suppliers. This field of business is managed by 

the interim holding Zeppelin Silos & Systems 

GmbH with registered offices in Friedrichshafen. 

The company is divided into the product 

areas manufacturing plants, processing plants, 

standard products and components and services. 

Overall economic development 

According to the International Monetary Fund, 

global GDP saw growth in real terms of 3.1% 

(prior year: 5.0%), a clear downturn in the global 

economy in 2008. The global economic slump 

was dominated by developments in the industrialized 

nations, which increasingly saw the 

effects of the financial and sub-prime crisis 

reflected in the real economy. The consequent 

property price deflation and general uncertainty 

unfolded in an economic environment which 

was set to enter a cool-down phase anyway 

after the boom of recent years. 

In the USA, the 1.1% increase in GDP achieved 

in 2008 (prior year: 2.0%) only partially reflects 

the collapse in growth of the final quarter. The 

strength of export trade coupled with a decrease 

in imports played a major role in softening the 

effects and improving the trade deficit overall. 

Monetary and in particular fiscal policies introduced 

quickly produced powerful results which 

helped contain the clear downturn. The Japanese 

economy has been heavily dependent on 

export trade in recent years and was particularly 

hard hit by the global economic slump, recording 

a decrease in GDP of 0.7% in 2008 compared 

to growth of 2.0% in the prior year. 

The economic development in the emerging 

countries of Asia, Latin America and central and 

eastern Europe initially seemed astonishingly 

stable and robust in the first year after the outbreak 

of the financial crisis. Most managed to 

escape the feared collapse in export trade at 

the beginning of 2008. In 2008 the Chinese 

economy showed the first signs of economic 

slowdown, however, instead of overheating as 

had been forecast. GDP growth of 9.0% was 

down on the prior year (13.0%) and failed to 

reach double digits for the first time in five 

years. The sharp increase in commodity prices 

buoyed the development in Brazil and Russia in 

the first half of the year. By late summer 2008 

there had been a complete turnaround in this 

situation, as these emerging economies also 

saw a slow-down in the wake of the global economic 

downturn. 

In the euro zone, the economic impetus also 

slowed in the course of 2008. Despite strong 

economic links between EU countries, the 

effects of the global economic slump were felt 

here nonetheless. At just 0.8%, the growth rate 

of GDP was well below the prior year figure of 

2.7%. 

Germany recorded GDP growth of 1.3% compared 

to 2.6% in 2007. An unexpectedly strong 

first quarter was followed by a delayed but all 

the more abrupt phase of weakness. The 

shockwaves from other countries reached the 

German economy, itself anyway entering a 

downturn. Knock-on effects from the sub-prime 

and financial crisis burdened the economy in 

the course of the year. Inflation increased 

considerably until the middle of the year as a 

result of huge price hikes for foodstuffs, raw 

materials and energy. Until recently, the 

German economy suffered a lack of internal 

impulses, such as from private consumption. 

This was not helped by the appreciation of the 

euro, which burdened export trade and indirectly 

investment by German companies. 

In the other countries in which Zeppelin’s Trade 

division has subsidiaries, business activity also 

developed negatively in 2008. Austria saw a 

drop in GDP growth from 3.1% to 1.7%. In the 

EU countries of central and eastern Europe, the 

slowdown in economic impetus which had 

already started in 2007 continued. The GDP 

growth of the Czech Republic fell for a second 

time in a row, from 6.5% in 2007 to 4.3%. 

Following rapid growth in recent years, the economic 

output of Slovakia slid from 10.4% to 

7.1%. The lively economy of the prior year was 

not repeated in Poland either, with growth of 

5.0% down from 6.7% in the prior year. The 

economic downturn was already palpable in 

Hungary in 2007 and continued, with GDP up 

just 0.9% on the prior year (1.3%). 

In Russia and Ukraine, economic growth tailed 

off considerably at 6.0% and 3.6% respectively 

(prior year: 8.1% and 6.9%). In the other CIS 

countries, Belarus and Armenia as well as the 

central Asian states Tajikistan, Turkmenistan 

and Uzbekistan, in which the Zeppelin Group 

also has subsidiaries and representative offices, 

the global economic turbulence did not weigh 

as heavily. 



Market development - Trade 

Economic conditions put something of a damper 

on the sales markets of significance for the 

Zeppelin Group in 2008. While several submarkets 

developed positively in the first half of the 

year, a deterioration in the situation was seen in 

the third and – above all – fourth quarter across 

all industries. 

The construction industry in Germany, a key market 

for Zeppelin, emerged from a weak phase 

lasting several years, with moderate growth in 

the prior two years. 

This trend continued in the first quarter of 2008 

thanks to a good increase in investment in construction. 

As the year progressed, the industry 

developed negatively in the light of price hikes 

for construction materials and energy. Development 

was quite varied for the individual sectors, 

however. Residential housing was already showing 

weak development in 2007 and this continued 

(+ 2.1%). In contrast, commercial construction 

developed very strongly, acting as a 

crutch for the rest of the construction industry 

(+ 10.7%). Public spending on construction also 

boosted the positive development of the construction 

industry thanks to higher tax revenues 

(+ 4.6%). Incoming orders and order backlog fell 

considerably from 2008 onwards, reflecting the 

economy as a whole, albeit with something of a 

time delay. Nevertheless, investment in construction 

increased 3.0% (prior year: 1.8%) in 

real terms in 2008. In spite of the positive trend, 

demand for construction machinery fell to 

27,101 units (prior year: 32,763 units), a drop in 

growth from 19% in the 2007 to 17.3%. The 

downturn was especially felt in the rental sector, 

which had been buoyed by high levels of investment 

in rental assets but was affected across 

the board by a reluctance to invest in 2008. 

The Austrian construction industry also saw economic 

development slow down in the course of 

2008. In total, construction investment fell by 

2.8%. This development played a considerable 

role in the 9% decrease in demand for construction 

machinery compared to the prior year. The 

situation of the construction industry also deteriorated 

considerably in the Czech Republic and 

Slovakia in the second half of 2008. Gross investment 

in construction fell 5.6% (prior year: grew 

7.0%) in the Czech Republic, with Slovakia faring 

even worse with a 7% drop compared to 2007. 

In Poland, where Zeppelin sells industrial trucks 

only, the market for forklift tricks once again exhibited 

growth compared to 2007, albeit at a much 

lower rate of an estimated 10% to 15% in 2008 

compared to 50% in the prior year. 

In the sales territory of Zeppelin International AG, 

the Russian, Ukrainian, Belarusian and Armenian 

markets which are relevant for us have to be 

broken down for examination.The markets for 

trenching and agricultural machinery developed 

exceptionally positively in the first eight months 

of 2008. The increasing global repercussions of 

the financial and economic crisis led to a dramatic 

deterioration of the situation, however, especially 

in Russia and Ukraine. Major factors in 

2008 included the sharp decrease in prices for 

raw materials as well as agricultural products, as 

well as severe financing bottlenecks. 

Demand for diesel engines und units for marine, 

locomotive, petroleum and industry applications, 

which is relevant for Zeppelin Power Systems 

GmbH & Co. KG, continued to develop at a high 

level in the first three quarters of 2008, though 

this seem to be gradually leveling out. The 

revision of the KWKG [“Kraft-Wärme-Kopplungsgesetz”: 

German Combined Heating and Power 

Act] in the course of 2008 led to a good recovery 

of the power plant sector using natural gas 

engines. Project work in the petroleum and locomotive 

sectors developed well even in the fourth 

quarter of 2008, contrasting with the abrupt and 

drastic deterioration in situation the marine/ 

shipping and industrial sectors. These sectors 

were shaped by existing overcapacity in global 

shipping traffic, the decommissioning of ships 

and cancellation of new shipbuilding projects as 

well as a collapse in export trade. The effects of 

the global economic crisis and the sharp fall in 

export trade were already noticeable in the 

second half of the year in the OEM and used 

engine project business sectors. 

Market development - Industry 

The global chemicals industry, of key importance 

for Zeppelin’s Industry division, exhibited a 

3% increase in total revenue in 2008, although 

this was attributable solely to price increases. 

A decline in chemical production was to be 

seen as early as the second quarter. This is 

primarily due to the global cuts in production in 

the automotive industry and at manufacturers 

of consumer goods in Asia as well as the ailing 

global construction industry. These factors 

combined to reduce demand for plastics on a 

global scale. In addition, the increase in facilities 

for the production and processing of plastics in 

the Middle East and overcapacity associated 

with this led to a sharp drop in prices, with 

plants shut down and a lower level of investment. 

This development will continue in 2009. 

In November 2008, the VDMA [“Verband 

Deutscher Maschinen- und Anlagenbau e.V.“: 

German Engineering Federation] recorded 30% 

fewer orders than in the prior-year period. 

2. BUSINESS DEVELOPMENT OF THE COMPANY 

Development of revenue 

In fiscal 2008, the companies of the Zeppelin 

Group were able to profit from the favorable 

economic development in the first half of the 

year in particular. The Group generated revenue 

of EUR 2.447 billion, up 8.4% on the prior-year 

figure of EUR 2.257 billion. The influence of the 

global economic collapse midway through the 

year is particularly relevant in an examination of 

the individual quarters. With the exception of 

the final quarter which saw revenue drop 4% 

below the prior-year level, the Zeppelin Group 

managed to achieve steady growth until September 

2008. The Group’s international revenue 

increased once again, accounting for a share of 

almost 50% compared to 45% in fiscal 2007. 

The increase in revenue was generated almost 

exclusively through internal growth, not significantly 

through acquisitions. 

The increase in Group revenue compared to the 

past fiscal year was mainly due to the very lively 

development in the first half of the year of 

Zeppelin International AG, in which all the 

Group’s trade activities outside of the EU are 

bundled. This interim holding generated revenue 

of EUR 587 million (prior year: EUR 398 million), 

up 47% on the prior-year figure. The German 

trading companies failed to meet their annual 

targets, however, reporting a decrease in revenue 

of almost 6% to EUR 1.3 billion (prior year: 

EUR 1.4 billion) on account of the major 

downturn of the economy in the final quarter of 

2008. Overall, the trading companies managed 

to report a slight increase in revenue compared 

to the prior year, thanks to the development of 

the companies outside of Germany. With consolidated 

revenue of EUR 2.208 billion, the 

prior-year figure (EUR 2.080 billion) was exceeded 

by 6.1%. They thus accounted for 90% of 



1 incl. affiliated companies 

2 incl. ZEPPELIN GmbH 

SALES BY COMPANY 

group revenue. A total of 19,054 (prior year: 

19,487) new and used construction machines, 

engines, fork-lift trucks and other machines and 

equipment were sold or rented out for the first 

time - that is 2% less than in 2007. With a 6% 

increase in revenue overall, the foreign share 

was up 29%, of which 90% is attributable to 

Zeppelin International AG and its subsidiaries. 

The Zeppelin Industry division continued along 

its trajectory of growth started in prior years in 

fiscal 2008 supported by its good order backlog 

and incoming orders at a level above the longterm 

average. In spite of the dramatic downturn 

Share of 

group sales 

EUR m 

2008 2007 

Variance 

Zeppelin Baumaschinen GmbH 902 1.006 -10 

MVS Zeppelin GmbH & Co. KG 165 153 8 

Zeppelin Power Systems GmbH & Co. KG 228 212 8 

Zeppelin Österreich GmbH 1 103 98 5 

Phoenix-Zeppelin, spol. s r.o. 1 223 213 5 

Zeppelin International AG 1 587 398 47 

Trade division (total) 2.208 2.080 6 

Industry division (total) 239 176 36 

ZEPPELIN GmbH Group 2 (total) 2.447 2.257 8 

in the fourth quarter of 2008 and the tendency 

of manufacturers of plastics to delay taking 

delivery of and commissioning facilities until 

after 2009, Zeppelin’s Industry division managed 

to generate revenue of EUR 238.7 million 

(prior year: EUR 176.1 million), an increase of 

36%, contributing to the Group’s total operating 

performance at a higher than average rate. The 

foreign share in revenue of the Zeppelin 

Industry division fell to 66%, down from 83% 

achieved in fiscal 2007. 

% 

EMPLOYEES BY COMPANY 

at year-end 2008 2007 Variance 

% 

ZEPPELIN GmbH (Holding) 36 22 64 

Zeppelin Baumaschinen GmbH 1.580 1.550 2 

MVS Zeppelin GmbH & Co. KG 687 609 13 

Zeppelin Power Systems 

GmbH & Co. KG 377 337 12 

Zeppelin Österreich GmbH 1 238 216 10 

Phoenix-Zeppelin, spol. s r.o. 1 811 688 18 

Zeppelin International AG 1 1.458 1.081 35 

Trade division (total) 5.151 4.481 15 

Industry division (total) 629 581 8 

Trainees and apprentices (Group) 361 275 31 

ZEPPELIN GmbH Group (total) 6.177 5.359 15 


Human resources 

The development of the headcount reflects the 

further growth of the Zeppelin Group and above 

all of the trading companies outside Germany as 

well as of the Industry division. The number of 

employees at the Group increased by 15% compared 

to fiscal 2007 to a total of 6,177 as of yearend 

2008 (prior year: 5,359). Of this rise, 46% 

related to Zeppelin International AG and its subsidiaries. 

The reason so many new employees 

were taken on was the rapid expansion of business 

until fall 2008, especially in Russia and 

Ukraine. The dramatic collapse of the market at 

the end of 2008 as well as expectations for 2009 

EMPLOYEES 

Annual average 2008 2007 

Group (total) 1 5.973 5.121 

1 incl. ZEPPELIN GmbH 33 21 

already indicate that it will not be possible to 

maintain the current headcount at these companies. 

The share of employees at the Group’s 

international subsidiaries increased once again, 

bringing the total to around 47% (prior year: 

42%) or 2,875 employees (prior year: 2,243). 

In all companies, management and staff made 

every effort to further increase efficiency and 

productivity. As in the prior year, basic and 

advance training was one focus of the Group’s 

human resources policy. The number of 

trainees at the Group rose by 31% to 361 

46 2008 ZEPPELIN ANNUAL REPORT 47 

of which: 

Trade division 

Industry division 

5.271 

669 

4.497 

603


(prior year: 275), meaning that trainees account 

for 5.8% of the headcount. The focus of the 

further training program was on technical training, 

training for the sales organization, advance 

training for future management and on providing 

employees in management positions with 

deeper management knowledge. Under the 

management of the chief personnel officer, 

a cross-company HR network was put in place. 

This is intended as a platform to enable the 

respective heads of personnel to exchange 

experiences and will contribute to the implementation 

of the Group’s personnel strategy. 

Another important advantage will be the identification 

of high potentials, who can be supported 

with targeted training measures. 

Significant events in the fiscal year 

In 2008, the Zeppelin Group companies 

managed to maintain their respective market 

positions or even expand on them, despite the 

steady decline in the economic environment 

over the course of the year. Our strategic and 

operating efforts focused on further renewal of 

our organization and processes, cost-cutting 

measures and risk minimization, and last but 

not least, greater penetration of international 

markets. 

In 2008, the Zeppelin Group underwent an 

external rating by Creditreform Rating AG once 

again and was awarded an A+ rating for the 

fourth time in a row. This result confirms the 

good credit standing of the Group and the 

above-average rating of key financial and qualitative 

factors compared to the economy as a 

whole and within our industries. 

To use synergies and with the aim of ensuring a 

high degree of professionalism and thus the 

sustained success of the Zeppelin Group, the 

responsibilities and guideline competencies of 

the corporate centers (CC) at the Group holding 

were defined for the first time in fiscal 2008. 

This concerned the corporate centers compliance, 

controlling, finance, real estate, IT, 

Group development, HR, internal audit, legal 

matters and corporate communication. As well 

as being responsible for the strategic alignment 

of the Group as a whole and for the strategic 

targets laid down by the corporate centers, they 

are available to provide services for all operational 

business units of the Group. The corporate 

centers are set up based on the concept of 

bundling know-how within the Group to centralize 

certain specialist resources. 

Zeppelin Baumaschinen GmbH launched a 

PINS recovery program in August 2008. The 

aim of this wide-spectrum package which incorporates 

additional sales support from Caterpillar 

was to regain market shares, especially in the 

standard equipment segment. In the major market 

segments, we managed to regain market 

shares by the end of 2008; these had been lost 

in the past on account of the negative market 

development in particular, but also due to 

Caterpillar’s price increases at the beginning of 

the year. The program will continue in 2009. 

The modernization of the IT system for process 

optimization is the largest project in the history 

of Zeppelin Baumaschinen GmbH in terms of 

scope and expense. The introduction of the 

new ERP standard software M3 from the 

US company Lawson had originally been planned 

for July 2008 but was postponed until 

6 April 2009. The adjustments to the system 

required in the light of comprehensive testing 

of prototypes were incorporated into the software 

in the course of 2008 and subsequently 

thoroughly tested. In preparation for the new 

IT system, all employees affected received 

training well ahead of its launch. 

The program for modernization and expansion 

of our network of branches in Germany that has 

been running for a number of years was continued 

at our branches in Achim near Bremen, 

Alsfeld, Hanau and Cologne in 2008, alongside 

numerous individual measures including those 

for the improvement of industrial safety and 

environmental and fire protection. We also 

expanded individual locations outside of 

Germany and set up new sales, service and rental 

branches, including in Austria, the Slovak 

Republic, Poland, Russia and Ukraine. In the 

Trade division, branches are set up and modernized 

on the basis of the construction manual 

developed by the corporate center for real 

estate in the course of a project. This construction 

manual sets out the standards for branches 

of various sizes, making use of the most up-todate 

findings in the fields of technology, productivity, 

energy efficiency and similar aspects. 

In terms of rental business, the Zeppelin Group, 

in close cooperation with our manufacturing 

partner Caterpillar, has set itself the target of 

becoming market leader for construction machinery, 

or extending our market leadership, by the 

end of 2015 in every country in which we are 

developing rental activities. The overall strategy 

to achieve this was developed in fiscal 2008 

and approved by the Group management board. 

Zeppelin Rental GmbH with registered offices 

in Garching near Munich was founded at the 

start of 2009 to improve the implementation of 

the strategy and capitalize on synergy effects 

between the individual companies. This company 

will manage and coordinate all rental activities 

of our trading companies both in Germany 

and internationally. 

MVS Zeppelin GmbH & Co. KG once again 

modernized its rental assets in fiscal 2008 

through acquisition of new Caterpillar construc- 

tion machines as well as new machines and 

equipment from other product areas (materials, 

modular space systems, construction equipment) 

with a value of around EUR 80 million. In 

contrast to planning assumptions for 2008, the 

capacity utilization of the rental assets fell by 

3.0% compared to the prior year on account of 

stagnating demand in the second half of the 

year in the major segments construction machines 

and vehicles. Measures have been introduced 

with the aim of improving device management 

and capacity utilization in order to counter 

increasing pressure on prices and the effects of 

the global economic collapse. In addition, MVS 

Zeppelin took on new sales staff and provided 

the sales organization with optimized software 

for recording and measuring sales activities in 

2008. These initiatives are aimed at further 

expanding on the leading market position in 

Germany. The “Profi-Baushop” concept first 

launched in fiscal 2007 has now been rolled out 

at 13 of the 110 rental branches of MVS Zeppelin 

with plans for further expansion. In addition to 

the rental machines and equipment, these branches 

offer equipment, consumables and singleuse 

items to meet customers’ various construction 

site needs. The concept is intended help 

retain customers. 

Despite the significant slowdown over the course 

of 2008, our Austrian rental company MVS 

Zeppelin Österreich GmbH adhered strictly to 

its expansion policy, opening two new rental 

centers (in Linz and Zwettl) and adding to its 

rental fleet. Further expansion of know-how, 

additional rental branches and enhancement of 

the product portfolio make up the strategy planned 

for implementation in 2009. 

With the aim of expanding the business field 

and tapping into market potential in the long 

term, Zeppelin Power Systems GmbH & Co. KG 



acquired a 4% shareholding in the Hamburg- 

based company Firma SkySails GmbH & Co. 

KG. Founded in 2001, SkySails has developed a 

wind propulsion system for cargo vessels using 

a large towing kite which can reduce annual fuel 

costs by between 10% and 35% depending on 

the prevailing wind conditions. Customer 

potential is currently estimated at 10,000 of 

some 100,000 vessels in existence globally, 

with new constructions adding to that figure. 

The technology is expected to be ready for preproduction 

in 2009. We set up our own company, 

Zeppelin SkySails Sales & Services GmbH & 

Co. KG with registered offices in Hamburg, in 

which Zeppelin Power Systems holds a 67% 

shareholding, for sales and maintenance of 

SkySails systems. Our close contact with the 

shipping industry will release synergies in sales 

and services of diesel-wind hybrid propulsion 

systems, which can be utilized over the coming 

years as we penetrate this field of business. 

Furthermore, we pressed ahead with and refined 

the restructuring measures implemented in 

the fourth quarter of 2007 at Zeppelin Power 

Systems in the three operating sectors marine, 

locomotive/industry/petroleum and EPG/gas as 

well as the associated integration of service 

responsibility in each sector in the course of 

2008. The prerequisites for optimal business 

processes, from sales to project management 

and product/application support to engine servicing 

are now in place. This structure is better 

aligned to our customers’ demand for holistic 

solutions. Further personnel and structural optimization 

measures were realized in the course 

of 2008, including the successful implementation 

of the 6 Sigma method for continual process 

improvement as well as the integration of new 

employees in the area of parts sales & services 

aimed at optimizing relations with numerous 

customers. 

Zeppelin Österreich GmbH also implemented 

various measures to expand business in sales 

and services in the engine segment. The sale of 

services for construction machines also developed 

especially well, with 63% new machines 

sold including a maintenance agreement. 

Despite reduced capacity utilization for services 

owing to the unfavorable development of the 

market, we still managed to improve margins. 

Since the beginning of 2006 our interim holding 

Phoenix-Zeppelin, spol. s r.o., with registered 

offices in Modletice near Prague, has also been 

responsible for the sales and service activities 

for Caterpillar construction machines and 

engines and Hyster industrial trucks in the 

Czech Republic and the Slovak Republic as well 

as the sales and service of Hyster equipment in 

Poland (Zeppelin Polska Sp. z. o.o.), Hungary 

(Zeppelin-Körös-Spedit Kft.) and Ukraine 

(Phoenix-Zeppelin Ukraine Ltd.). The interim 

holding also holds a 49% shareholding in the 

Czech company CZ LOKO a.s., which operates 

in the field of motorization and repair of diesel 

locomotive engines. Furthermore, Phoenix- 

Zeppelin is responsible for agricultural machinery 

sales in the Czech Republic and Slovak Republic. 

This is an area which is currently being built 

up and may be expanded on a wider scale 

through acquisitions. All subsidiaries of this 

interim holding pushed ahead with efforts to 

expand business activities in 2008, though the 

economic slowdown on the relevant markets 

made it difficult to capture market shares. 

Nevertheless, the sale of Hyster industrial 

trucks was particularly successful, with fleet 

sales to Coca Cola in the Czech Republic and 

Poland and Pilsner Brewery, also in the Czech 

Republic, as well as DHL in Hungary. The 

construction machinery business of Phoenix- 

Zeppelin suffered from the unfavorable conditions 

and sharply inflated prices for Caterpillar 

machines. Compact wheel loaders were an 

exception to the rule, and were very well received 

by Czech and Slovak customers, not least 

thanks to their high performance coupled with 

attractive financing packages in cooperation 

with Caterpillar Financial Services. 

In its capacity as interim holding, Zeppelin International 

AG with registered offices in Zug, 

Switzerland, manages the sales and service business 

of the Zeppelin Group in Russia, Ukraine, 

Belarus, Armenia, Tajikistan, Turkmenistan and 

Uzbekistan. In addition to sales and service for 

Caterpillar construction machines and engines, 

the company also generates a significant portion 

of revenue from agricultural and forestry 

machines. The first eight months of 2008 in 

particular were once again characterized by a 

significant rise in revenue, especially in Russia 

and Ukraine. As the repercussions of the global 

economic crisis were felt in the final quarter, 

the market situation took a dramatic turn for the 

worse, however. As the crisis persisted, it became 

apparent that these countries’ economies 

were harder hit than any other region in the 

world, not less badly affected as had originally 

been assumed. Nevertheless, the Zeppelin subsidiaries 

were able to increase revenue once 

again compared to fiscal 2007. The dramatic 

depreciation of the rubel and hryvnia against the 

US dollar saw them fall by 27% and 60% in 

value respectively between July and December 

2008, with exchange losses burdening the earnings 

of Zeppelin International at a higher than 

average rate. The losses stem from liabilities 

denominated in US dollars due to Caterpillar for 

the purchase of construction machines and 

spare parts valued in local currency at the 

exchange rate on the procurement date. 

Zeppelin Russland OOO was also successful in 

the agriculture and forestry sectors, boosting 

revenue considerably with sales of machines in 

this area. Furthermore, several large-scale pro- 

jects for optimizing and streamlining internal processes 

were carried out. The projects focused 

on spare parts and machine logistics, sales and 

services as well as qualitative and structural 

adjustments to management at primary and 

secondary level. Zeppelin Ukraine TOW doubled 

its revenue compared to the prior year. Several 

large orders in mining and agriculture as well as 

a targeted focus on customers in road construction 

and the extraction industry were the main 

drivers of the increase in revenue. Business also 

developed at a very satisfying level in Belarus. 

Of particular note is the fact that an unexpectedly 

high number of medium-sized businesses were 

gained as potential customers for imported construction 

machines in this country. Furthermore, 

business with engines and components developed 

much better than expected. The sharp 

increase in demand for local energy supplies as 

well as the needs of Belarusian plant construction 

companies and manufacturers of capital 

goods explain this development. 

Business also developed very well in Tajikistan; 

previously, our subsidiary in Uzbekistan had pro- 

cessed the business. Therefore, a local managing 

director was appointed in September and 

the company will operate independently of the 

Uzbekistani company. Zeppelin Turkmenistan 

won a further large-scale order worth over USD 

64.0 million in 2008. In conjunction with another 

follow-up order of USD 15.0 million, this is the 

largest transaction ever in the history of Zeppelin 

International. The structural and personnel 

changes introduced at the Turkmenistani company 

show very positive results, improving and 

stepping up customer relationships at all levels 

and resulting in a positive contribution of the 

service business to earnings for the first time 

since the company was founded. 



The Zeppelin Industry division was operating at 

full capacity throughout 2008 thanks to a continuing 

high level of engineering and production 

orders. This must not be allowed to veil the 

fact, however, that the markets relevant for 

these areas were already cooling noticeably as 

of year-end 2008, and are expected to exhibit 

even more of a downturn over the course of 

2009. The strategic acquisition of an engineering 

company in India and the foundation of a 

subsidiary in Turkey will strengthen Zeppelin's 

presence in the Industry division on these key 

markets. The joint venture set up with a partner 

in Saudi Arabia in 2007 (Zeppelin Gulf Co. Ltd.) 

went into operation in 2008 and operated at full 

capacity for the production of silos and rendering 

of services for pipeline construction. 

R&D activities focused on developing products 

for innovative technical solutions. Filter technology 

was included in the product range for the 

first time in the Industry division. In addition, a 

new production line was constructed at the 

Friedrichshafen branch. As well as standard 

modules, process filters for the demanding task 

of gas cleaning are designed and produced. 

Furthermore, the prototype of a HEPA filter 

(high performance particle filtration) for particle 

separation was built, based on a development 

of the Karlsruhe Institut of Technology. This prototype 

is currently undergoing trials at a biomass 

power plant. A new pneumatic conveyor unit 

was installed at the technical department in 

Friedrichshafen for carrying our conveyor experiments 

using a special bypass procedure. The 

product range of the Zeppelin Industry division 

can thus now be expanded to include further 

product groups. A process lock which was custom 

developed for a customer last year for use 

in a procedure was successfully implemented 

for the first time. In the course of ongoing 

process optimization based on the 6 Sigma 

method and knowledge management, numerous 

projects and measures to improve construction 

processes were also implemented. 

Cost-cutting concepts for the production of 

silos were refined and successfully tested with 

prototypes. Considerable progress was made in 

the development of a new welding procedure 

which significantly reduces the production time 

for silos. 

RESULTS FROM 

ORDINARY ACTIVITIES 

BY COMPANY 

3. RESULTS OF OPERATIONS, FINANCIAL 

POSITION AND NET ASSETS 

The development of the results of operations, 

financial position and net assets of the Zeppelin 

Group in 2008 reflects the effects of the global 

economic downturn on our markets and especially 

the currency crisis in the non-EU eastern 

European countries. The development of our 

business environment in the second half of the 

year in particular affected our performance figures. 

The net income for the year of the Group 

nevertheless remained at a high level and we 

achieved the second best return in the history of 

the Company. As planned, equity also increased 

compared to the prior year. As a result of 

growth in revenue and improved operating performance, 

the Zeppelin Group saw an increase 

in total assets. This increase was driven not 

least by the modified procurement conditions 

of our main supplier Caterpillar, which, coupled 

with the decline in sales figures in the final 

months of 2008, led to higher inventories. 

Results of operations 

The 9% rise in total operating performance of 

the Zeppelin Group to EUR 2.545 billion (prior 


Share of 

group sales 

EUR k 

2008 2007 

Variance 

Zeppelin Baumaschinen GmbH 39.445 54.851 -28 

MVS Zeppelin GmbH & Co. KG 11.690 15.287 -24 

Zeppelin Power Systems GmbH & Co. KG 21.337 18.982 12 

Zeppelin Österreich GmbH 1 2.769 4.712 -41 

Phoenix-Zeppelin, spol. s r.o. 1 13.909 15.374 -10 

Zeppelin International AG 1 4.041 28.229 -86 

Trade division (total) 93.191 137.435 -32 

Industry division (total) 12.798 3.918 227 

ZEPPELIN GmbH (Group) 2 (total) 101.176 119.121 -15 

of which foreign companies 26.359 52.426 -50 


2 incl. ZEPPELIN GmbH 

%


DEVELOPMENT OF CAPITAL EXPENDITURES IN THE GROUP 

EUR k 2008 2007 2006 2005 2004 

I. Intangible assets 10.358 8.174 3.733 1.208 1.943 

II. Property, plant and equipment 127.340 117.292 118.389 96.205 94.138 - 

- Land and buildings 

- Technical equipment, machines 

11.494 20.820 6.918 4.279 6.800 

and fixtures and furniture 19.397 18.705 11.326 11.943 9.989 

1 

- Rental assets 88.916 72.250 85.915 72.657 71.519 

- Other items of property, plant and equipment 7.533 5.517 14.230 7.326 5.830 

III. Financial assets 12.625 5.110 2.065 4.632 627 

Total capital expenditures 2 150.323 130.576 124.187 102.045 96.708 

1 

of which reclassifications from inventories – 27.736 

2 

changes in consolidated group 572 – - 305 – 2.885 

year: EUR 2.338 billion) was driven by the 8% 

rise in revenue to EUR 2.447 billion (prior year: 

EUR 2.257 billion). Completion and delivery of 

large-scale projects in the Industry division in 

particular meant that there was a smaller 

increase in inventories of finished goods and 

work in process to EUR 4.4 million (prior year: 

EUR 20.8 million). Other operating income 

increased markedly to EUR 92.2 million (prior 

year: EUR 59.0 million), primarily as a consequence 

of higher exchange gains (+ EUR 17.3 

million) as well as increased reimbursements 

from suppliers and insurers (+ EUR 10.8 million). 

Cost of materials rose to EUR 1.821 billion 

(prior year: EUR 1.696 billion) which at 7% 

represents a lower rate of growth than total 

operating performance, meaning that the ratio 

of cost of materials to total operating performance 

fell slightly to 71.6% (prior year: 

72.6%). 

The slower rate of growth, 7%, of personnel 

expenses (EUR 296.1 million; prior year: EUR 

277.8 million) compared to total operating per- 

formance made a positive contribution to the 

increase in earnings in fiscal 2008. The increase 

is attributable to the 17% rise in the average 

headcount, due primarily to new hires at the 

subsidiaries outside Germany. Another contributory 

factor to the increase in the Group’s personnel 

expenses was the collectively bargained 

wage increases of 2% in Germany and just 

short of 10% in the Czech Republic and the 

Slovak Republic, for example. The ratio of personnel 

expenses to revenue remained virtually 

stable at 12.1% (prior year: 12.3%). 

Amortization of intangible assets and depreciation 

of property, plant and equipment was 

up EUR 1.4 million on the prior year to EUR 

22.9 million. This increase is essentially due to 

high capital expenditures in fiscal years 2007 

and 2008. Depreciation of assets for rental 

increased to EUR 31.0 million (prior year: 

EUR 26.8 million) on account of intensified 

capital expenditure, up 13% to EUR 218.5 million 

(acquisition cost). It was included under 

cost of materials. 

Balances sheet total in EUR k 

Intangible assets, property 

plant and equipment, 

equity investments 

Other operating expenses increased at a higher 

rate than total operating performance, rising to 

EUR 283.7 million which corresponds to 37% 

(prior year: EUR 206.7 million). Reasons for this 

included the increase in selling costs owing to 

higher revenue (+EUR 3.2 million), higher 

expenses for the larger number of locations 

(+EUR 6.9 million), as well the primary cause, 

exchange rate losses, which were up EUR 54.1 

million on the prior year. Of this increase, EUR 

35.5 million is attributable to the Russian and 

EUR 11.2 million to the Ukrainian company on 

account of considerable depreciation of the 

respective local currencies in the final quarter of 

2008 as well as at the start of 2009 (adjustment 

of the balance sheet to reflect events). 

The financial result of EUR - 20.2 million (prior 

year: EUR - 16.4 million), 0.8% as a percentage 

of revenue (prior year: 0.7%), was affected by 

the financing of numerous investments, the 

increase in stocks and a higher proportion of 

long-term financing. 

COMPOSITIONS OF NET ASSETS, EQUITY AND LIABILITIES 

The Group’s earnings before income taxes fell to 

EUR 98.7 million (prior year: EUR 117.6 million. 

The return on sales before taxes therefore came 

to 4.0% (prior year: 5.2%). Before taxes, the 

return on equity improved to 26.8% (prior year: 

38.2%), while the return on capital employed 

rose to 10.0% (prior year: 13.0%). 

In 2008, the Zeppelin Group generated net income 

for the year of EUR 65.4 million (prior year: 

EUR 71.4 million) after deducting income taxes 

of EUR 33.3 million (EUR 46.2 million). Following 

the German Business Tax Reform, the tax rate 

was reduced to 34% in Germany (2007: 39%; 

2006: 45%). 

Financial position 

The financial demands on the Zeppelin Group are 

characterized by fixed assets (including its extensive 

rental fleet) accounting for around a third of total 

assets on the one hand, and the inventories and 

receivables required for trading of construction 

machinery and other high quality capital goods on 

the other, which exhibit a relatively rapid turnover. 


Inventories 

Receivables, other assets, 

cash and cash equivalents 

Assets 

Liabilities 

1.355 1.177 1.355 1.177 

29,6 % 

44,2 % 

26,2 % 

30,1 % 

40,2 % 

29,7 % 

29,1 % 

7,7 % 

16,9 % 

46,3 % 

29,0 % 

8,9 % 

9,6 % 

52,5 % 

2008 2007 2008 2007 

Equity 

Pension accruals 

Other long-term accruals, 

long-term liabilities 

Short-term accruals 

and liabilities


Group equity rose by EUR 53.3 million in fiscal 

2008 to EUR 394.4 million (prior year: EUR 

341.1 million). The equity ratio remained stable 

at 29.1% compared to 29.0% in the prior year, 

with total assets up 15% to EUR 1.355 billion 

(prior year: EUR 1.177 billion). Long-term funds 

classified as liabilities totaling EUR 727.9 million 

(prior year: EUR 559.6 million) exceeded fixed 

assets and the non-current portion of current 

assets totaling EUR 413.6 million (prior year: 

EUR 364.4 million) by EUR 314.3 million (prior 

year: EUR 195.2 million) as of the balance sheet 

date and comprise equity, pension provisions 

(EUR 499.0 million), long-term other provisions 

(EUR 35.6 million) and liabilities to banks and 

others (EUR 193.3 million). Long-term funds 

thus covered 53% (prior year: 41%) of the 

Group’s inventories. 

As of the end of the fiscal year, short-term provisions 

and liabilities amounted to EUR 627.2 

million (prior year: EUR 617.3 million). They 

mainly related to trade payables of EUR 288.2 

million, liabilities to banks of EUR 126.4 million, 

tax and other provisions of EUR 119.1 million as 

well as payments received and other liabilities 

of EUR 81.0 million. The liability to Caterpillar 

Financial Services of EUR 100.0 million disclosed 

in the prior year under other liabilities 

relates to a previous five-year financing package 

for the purchase of MVS AG, Berlin (2003), and 

was repaid on schedule in 2008. 

At the end of 2008, the Group had lines of credit 

comprising bank loans and guarantees of 

EUR 575 million at 18 German and foreign 

banks, of which 43% or EUR 250 million (of 

which EUR 95 million for guarantees) had been 

used at year-end 2008. The companies in the 

Trade division once again had extensive lines of 

credit at their disposal in 2008 at Caterpillar 

Financial Services and other specialist instituti- 

ons for financing sales in Germany and abroad. 

Since 2004, the Group in Germany has been 

using publicly traded financing instruments 

such as debenture bonds with a current volume 

of EUR 150.5 million and an asset backed securities 

program for EUR 25 million. In addition, 

leasing is not only used as an instrument for 

extensive investments in the rental assets but 

also to finance vehicles and IT hardware. The 

conditions for the drawing of credits benefited 

in 2008 from the A+ rating from Creditreform 

Rating AG, which was recently confirmed for 

the fourth time in a row. The internal bank 

ratings of the Zeppelin Group were also confirmed. 

The additions to fixed assets of EUR 149.8 million 

(incl. rental assets of EUR 88.9 million) in 

the fiscal year were counterbalanced by depreciation 

of EUR 54.3 million (of which EUR 31.0 

million from rental assets offset against cost of 

materials). Depreciation thus covered 36.2% 

(prior year: 37.2%) of capital spending. 

The net cash flow of the Group increased on 

the prior year by EUR 22.0 million or 14.8% to 

EUR 170.0 million in 2008 (prior year: EUR 

148.0 million). The net cash flow to revenue 

ratio is thus 6.9% (prior year: 6.6%). 

Net assets 

Net assets of the Zeppelin Group developed at 

a higher rate than total operating performance 

(+9%), increasing 15% to EUR 1.355 billion in 

2008 (prior year: EUR 1.177 billion). Of the EUR 

178 million increase in assets, EUR 125 million 

or 70% was attributable to the increase in 

inventories, of which EUR 113 million pertained 

to merchandise in the Trade division in relation 

to high order backlogs, long delivery times and 

new order terms. A significant increase also 

arose on account of the high level of invest- 

ments in land, buildings and other assets as 

well as furniture and fixtures and rental assets. 

Due to the increase in inventories, the composition 

of assets in the consolidated balance 

sheet as of 31 December 2008 changed once 

again compared to the prior year. The share of 

fixed assets (EUR 402 million) dropped to 

29.6% (prior year: 30.1%), while the share of 

inventories (EUR 599 million) dropped to 44.2% 

(prior year: 40.2%). 

Trade receivables fell to 20.3% (prior year: 

23.3%) in proportion to net assets, rising by just 

1% to EUR 276 million (prior year: EUR 274 million) 

while revenue was up 8%. Cash and cash 

equivalents fell 27% to EUR 24 million. The 

above average rate of development of net 

assets meant that capital turnover fell slightly to 

a level 1.9 p.a. (prior year: 2.1 p.a.). The theoretical 

range of trade receivables decreased 

further to 41 days (prior year: 44 days). Outside 

the consolidated balance sheet, the companies 

in the Zeppelin Group had leased assets and 

machines for the rental fleet as well as assets 

(vehicle fleet, IT equipment) totaling EUR 232.0 

million (prior year: EUR 230 million). The rental 

assets accounted for EUR 220.3 million (prior 

year: EUR 216 million) thereof. 

4. SUBSEQUENT EVENTS 

There were no events of significant importance 

for the results of operations, financial position 

and net assets of the Group after the balance 

sheet date or they have already been accounted 

for in the 2008 financial statements. 

5. RISK REPORT 

Risk management 

Risk management is an important component 

of the business and decision-making processes 

in the Zeppelin Group. The early identification, 

quantification and reporting of risks allows 

them to be evaluated and controlled. 

The core of risk management is therefore a 

detailed planning and reporting function encompassing 

all the companies in the Group. The 

monthly controlling of the key performance indicators 

is at the heart of the system. Special 

attention is paid to risks in the inventories and 

receivables dominating the business of the 

Trade division and the risks inherent in the 

long-term construction contracts in the Industry 

division. 

The controlling-based reporting system is supplemented 

by a designated risk reporting 

system. Twice a year, the risk reporting system 

of the Group companies describes and evaluates 

the risks inherent in the critical success factors. 

In 2008, the corporate center for internal audit 

focused on the Trade division, taking the size 

and significance of the companies concerned 

into account. It concentrated efforts on supporting 

the introduction of the ERP software M3 at 

Zeppelin Baumaschinen GmbH, cooperating 



with the Group’s compliance team, including 

the audit of compliance-related processes at 

foreign subsidiaries as well as the development 

and refinement of our risk management tools. 

Compliance 

Compliance at Zeppelin is based on the conviction 

that social responsibility, legal integrity and 

ethical action are the key to sustainable 

success. Compliance with legal provisions, 

government requirements and internal corporate 

guidelines is an important aspect of the 

management and corporate culture at Zeppelin. 

The Zeppelin Group’s code of conduct was issued 

in March 2008 and has been signed by the 

general managers of all our subsidiaries and 

second-tier subsidiaries. Employees and business 

partners can access the code, which 

forms the basis of our compliance program, on 

our homepage (www.zeppelin.de). 

Compliance was set up as an independent 

department in September 2008 and allocated to 

the director of the HR and legal department of 

ZEPPELIN GmbH. At the end of 2008, a compliance 

officer was appointed from the compliance 

team at ZEPPELIN GmbH. A compliance 

officer is to be appointed at all large business 

units, subsidiaries and subgroup holdings. 

Employees and external parties can contact the 

compliance officer via the homepage and a 

dedicated email address (compliance@zeppelin.com). 

A. Individual risks 

General economic and industry risks 

Due to the wide range of countries, industries 

and activities in which ZEPPELIN GmbH and its 

subsidiaries are involved, the general economic 

and also industry risks are diffused. This holds 

true both for the cyclical developments and for 

the varying rates of growth in the key purchasing 

industries in the various regions served. 

This diversification of business activities was 

not sufficient to fully protect Zeppelin’s business 

activities from the global economic decline 

seen in every industry in 2008 and the huge 

upheaval on the financial and foreign exchange 

markets, even in the major global economies. 

Our traditional focus on customers in the construction 

industry gave way to growth in the 

engine business for ship construction, industrial 

companies and power generation, as well as 

the increasingly diversified rental business and 

successful growth in the plant construction 

business of the Industry division. 

With revenue from customers in Germany 

accounting for 50% of group revenue, Germany 

remains the most important market of the 

Group companies, although decreasingly so. 

The risk inherent in the already volatile German 

construction industry has been encountered by 

continuously improving the service offering, 

reducing fixed costs, flexible use of capacities 

and ongoing portfolio grooming. As a result, 

high-risk peripheral activities that burden the 

result were deliberately discontinued in the 

last few years. The product program and 

the sales activities have been expanded to 

include industries and customers not dependent 

on the construction industry, such as 

quarrying and extraction, environmental and 

timber industry, mining, horticulture and landscape 

gardening. 

The fact that the foreign share of group revenue 

has increased substantially in recent years also 

reflects the geographical diversification. 

With the extensive Caterpillar engine program, 

Zeppelin is meanwhile also the most important 

Caterpillar dealer for built-in motors in ships and 

locomotives on the international stage and is 

currently expanding in the areas energy generation, 

mobile radio and oil extraction. Sales and 

services relating to Hyster industrial trucks 

open up opportunities in logistics, a long-term 

and stable growth market. The Group sees 

additional opportunities for its agricultural and 

forestry machines in the rapidly growing agriculture 

and forestry sectors in eastern Europe. 

The Zeppelin Industry division with a high proportion 

of foreign business benefited from the 

substantial long-term increase in global demand 

for plastics and the investment by the chemicals 

and plastics industry this sparked. Engineering 

capacities and expertise were expanded by 

means of targeted acquisitions of smaller businesses 

in recent years in interesting industries 

such as rubber and tire manufacturing, minerals 

and foodstuffs. The successful realization of 

large-scale turnkey plants in recent years, 

Zeppelin proved itself a competent partner, 

even for global leaders of large-scale plants. 

One consequence of the economic and political 

uncertainty in the countries of eastern Europe 

and Central Asia is the relatively low level of 

investment in these countries. 

Performance-related risks 

The punctual supply of construction machines 

and engines to customers of the companies in 

the Trade division is essentially secured by rolling 

demand management with a lead time of up to 

twelve months. Since 2004, the worldwide 

demand for construction machinery has, however, 

been growing at such a rate that the delivery 

times at Caterpillar for standard and large-scale 

machines as well as engines are long and often 

uncertain. This situation is being dealt with by 

stockpiling and the use of machines from the 

used machines and engines park to bridge 

the time until the delivery can be made. The 

situation regarding Caterpillar’s delivery times 

improved considerably at the end of 2008 on 

account of the global fall in demand. The ability 

of Zeppelin’s manufacturing partners to deliver 

has been suffering increasingly recently, however, 

on account of the effects of production cuts 

owing to shorter working hours and supplier 

default due to insolvency. 

We responded to growing demand from plant 

construction in Zeppelin's industry division in 

recent years with a corresponding organizational 

and capacity structure at the central plant in 

Friedrichshafen, as well as the decentralized 

expansion of local engineering firms in major 

target markets. Zeppelin also cooperates with 

experienced local partners, for instance to build 

and erect silos, especially for large-scale 

projects. In individual cases, joint ventures are 

also set up, e.g., Zeppelin Gulf, Saudi Arabia, for 

projects in the Middle East. 

Personnel risks 

Zeppelin views the recruitment, integration and 

long-term retention of qualified specialists and 

executives as fundamental for the success of 

the Company. Our corporate mission not only 

sets out the goals and strategy of the Company 

to our employees, but also expresses our 

determination to be an attractive employer. To 

avoid personnel-related risks, applicants are 

selected carefully and employees receive 

extensive basic and advanced training, including 

at the Zeppelin Academy. High-potential 

programs for employees and an assessment 

center for the selection of future specialists 

and executives aim to ensure that potential is 

tapped into at an early stage. Cross-company 



development of executives is also supported at 

group level. The standard of the training of our 

apprentices is exemplary in our business and 

ensures that our growing need for well-qualified 

young people is always covered. The 

operation of our own training centers is a decisive 

prerequisite for growth in eastern European 

countries owing to a lack of qualified candidates. 

Investment in modern work stations at 

workshops and in offices, as well as in customer 

service vehicles not only represents a 

further way of improving employee efficiency, 

but is also an important factor in retaining 

employees and attracting applications on the 

employment market. 

Thanks to the target and performance-related 

salary components, the remuneration level of 

employees is higher than the industry average. 

Regular employee surveys and annual employee 

feedback meetings allow any unfavorable developments 

as well as employee and HR needs 

requiring further attention to be noted and measures 

for improvement introduced. 

The effects of the current economic downturn 

can largely be contained through adjustments 

in 2009 by using variable employee capacities 

(flexitime accounts and similar), terminating 

temporary employment and ceasing to outsource 

service processes. Following a period 

of rapid growth in 2007 and 2008, the reduction 

of capacity in eastern Europe will be based 

on careful review using qualitative selection 

criteria. 

No specific risks relating to key employees 

have been identified, thanks in part to the 

improvement on the employment market due 

to the economic situation even in those European 

countries which had previously enjoyed a 

boom period. 

Financial risks 

Generally speaking, financial risks are limited by 

the equity ratio which we aim to keep at 30% 

or above. In addition, long-term pension provisions 

of EUR 105 million are available. The economic 

appropriateness of these is ensured using a 

discount factor of 4.5% and a rate of 1.0% for 

future pension increases. 

To diversify the external sources of financing, 

supplier financing linked to sales and comprehensive 

lines of credit of German and, to a 

growing extent, also foreign banks are being 

supplemented by the possibility of sales financing 

from various special institutions such as 

Caterpillar Financial Services and GEFA as well 

as an ABS program. The volume of mediumterm 

and long-term financing was increased 

again in 2008 by taking out new five-year and 

seven-year bonded loans (EUR 80.5 million) as 

well as a three-year bank loan (EUR 60.0 million); 

we will press ahead with this in 2009. 

Currency risks from individual transactions or 

projects are hedged where this is economically 

justified. Losses from unexpected and large 

depreciation of currencies in Russia and 

Ukraine stem from liabilities denominated in 

US dollars due to Caterpillar for the purchase of 

construction machines and spare parts valued 

in local currency at the exchange rate on the 

procurement date. The balance sheet considers 

exchange rate losses recognized and not yet 

recognized in the 2008 financial statements, 

including the exchange rate losses until 

February 2009. In some cases, the sale of these 

items has a compensatory effect in 2009. In 

future, the risk for these countries and the customer’s 

country will be limited to the immediate 

date of sale thanks to a machines logistics 

center at Zeppelin International AG in Switzerland. 

Credit standing checks of customers are to a 

large extent updated online in cooperation with 

credit agencies on an ongoing basis, the receivables 

collection is handled with an efficient 

dunning system, involving debt collecting agencies. 

For the most part, sales financing for sales 

of machines is carried out via special institutions 

which thus also bear a large part of the 

potential default risks. In 2008, other institutions 

were included in the sales process for 

Caterpillar Financial Services, our strongest 

partner to date, because it significantly reduced 

its offering on account of the modified financing 

priorities of the Caterpillar Group. This measure 

will be stepped up in the future. Customers are 

required to make payments on account for plant 

construction products and large ship engines as 

well as on international markets, and credit 

insurance is taken out in some cases. 

One of the compensation-related criteria for 

management in the Group, besides earnings 

targets, is a system of receivables and inventory 

management geared consistently to certain 

targets in terms of amount and risks. 

External specialist and legal counsel is regularly 

sought to reduce the risks that could arise from 

fiscal, competition, patent, antitrust and environmental 

rulings and laws. This is especially 

true of acquisitions projects. 

While limited risks are borne by the Company, 

insurance policies are taken out to secure 

against the financial consequences of large 

liability risks and high damages; the cover is 

checked regularly. Special attention is paid to 

claims management and preventative measures. 

The concept of hedging risks has been key 

for the German trading companies for many 

years and the appropriateness was confirmed 

by public tender in 2008. In addition to local 

insurance policies in the respective countries, 

potentially uninsurable serious losses are covered 

by a multi-line policy in Germany. 

Larger investment projects are decided on the 

basis of planning and economic viability calculations 

in accordance with the Group’s investment 

authorization guideline which was 

updated in 2008. 

B. Opportunities 

Actively seeking and using opportunities while 

at the same time weighing up the associated 

risks, is a core component of entrepreneurial 

activity and thus of the management approach 

of the Zeppelin Group and all its subsidiaries. 

As the exclusive sales and service representative 

for capital goods of major, and usually leading, 

suppliers such as Caterpillar, NACCO, 

AGCO, Claas, Terex and Ponsse, we are able to 

exploit potential in our markets to a very high 

level. This applies especially to those countries 

of eastern Europe benefiting from rapidly rising 

demand for raw materials, power and agricultural 

products, but also for the significant markets 

in the transportation sector (shipping, locomotives) 

and power generation. 

The closely-knit network of sales and service 

organizations in most countries, the leading 

position earned in recent years in virtually all 

model classes of the local construction machinery 

markets, motivated and loyal managers 

and employees as well as a sound financial 

base allow us to continue successfully using 

the opportunities in future. Many of these factors 

played a role in the A+ rating awarded for 

the fourth time in a row by Creditreform Rating 

AG in 2008. 



The strong market position achieved by 

Zeppelin with products made by prominent 

manufacturers is secured by a comprehensive 

aftersales service for products sold which, as 

past experience has shown, often forms the 

basis for expanding a company’s own market 

share in times of economic downturn. The sale 

of spare parts and customer service is a stabilizing 

factor for employment, revenue and cash 

flows, even if sales of machines and engines 

develop negatively. 

The financial strength and financing power of 

the Zeppelin Group enables it to win projects 

and business and make use of targeted opportunities 

to acquire interesting companies to 

enhance and expand its range, especially in 

times of economic difficulty. 

C. Overall assessment of the risk situation 

Risk management as a management tool and 

recognizing and influencing individual risks as 

well as using opportunities are of great significance 

within the Company. Over the years, risk 

management has been continuously improved, 

adjusted to meet growing demands and expanded 

to include new areas such as compliance 

organization. This is verified by the appraisal 

carried out Creditreform Rating AG, who awarded 

us a positive rating for risk management 

in 2008. The Group internal audit department 

and Group controlling monitor risk reporting on 

an ongoing basis. The risk management system 

is also reviewed and assessed annually by the 

Company’s auditors for compliance and efficiency. 

There were no risks which could jeopardize the 

continuing existence of the Zeppelin Group or 

its subsidiaries in the reporting period, nor are 

there any discernable risks for the foreseeable 

future. 

6. FORECAST 

In light of the expected decline of the global 

financial and economic crisis, we expect economic 

growth to be subdued for the foreseeable 

future. Many forecasts for 2009 now predict a 

drop in global trade of around 9.0% and in 

global GDP of between 0.5% and 2.5%. The 

major industrialized nations are expected to see 

a fall in GDP of between 2.0% and 3.1%. The 

negative effects are expected to last until the 

fourth quarter of the year, though a slight improvement 

might be seen at the end of 2009 or 

start of 2010. Individual economies will struggle 

to achieve sustained recovery. It should be 

noted here that important macroeconomic factors 

such as exchange rates, commodity prices, 

share prices and other asset prices have been 

characterized by unusually high volatility and, at 

times, erratic development. The interplay and 

overlap of significant macroeconomic disturbance 

lend a high degree of uncertainty to forecasts 

for 2009. 

In the USA, the development of the financial 

and sub-prime crisis will impact heavily on the 

further development of the general economy. 

There will be no stabilizing effect from private 

households on account of the fact that they are 

already highly indebted. At the same time, the 

US economy will be burdened further by the 

global downturn in export demand. Based on 

these factors, the GDP in the USA is set to 

shrink by 2.1% in 2009. The Japanese economy 

with its heavy dependence on export will suffer 

further blows in the first half of 2009, meaning 

that a further decrease in GDP of at least 4% is 

expected for the year as a whole. 

High risks are also attached to the development 

of the emerging economies in 2009. On 

the one hand, falling demand from the USA 

and Europe will put a damper on export trade. 

On the other, the capital necessary for further 

growth will be less freely available on account 

of increased caution on the part of investors 

and a general rising fear of recession; this will 

have a knock-on effect on investing activities. 

Positive developments in China (2009 forecast: 

+ 5.5%), Brazil (2009 forecast: + 1.8%) 

and India (2009 forecast: + 5.1%) could have a 

stabilizing influence on the global economy, 

however. 

The global economic crisis will also cast its 

shadow over economic development in the 

euro zone in 2009. The economy is expected to 

develop negatively, with GDP shrinking by 

3.5% to well below the prior-year level. The rescue 

packages introduced in individual economies 

as well as the fall in commodity prices and 

interest rates towards the end of 2008 will in all 

probability be insufficient to revive the very 

weak economy and poor investment demand in 

the euro zone. It is also unlikely that private consumption 

will develop positively, meaning that 

there will be no domestic impetus to compensate 

for the plummeting export trade that is 

expected. 

The economies of central and eastern Europe 

will see a noticeable slow-down in economic 

activity over the coming year (2009 forecast: - 

0.8%). Weaker international demand, especially 

from the western EU countries, coupled with 

less favorable lending conditions will put a 

brake on the exports and investment of these 

countries. 

Germany’s GDP will develop negatively in 2009 

according to most recent estimates and could 

fall as low as 7.0% below the prior-year level, 

mainly due to the fact that the German economy 

is export-oriented and will sorely miss the 

impetus of export trade. Private consumption is 

likely to increase thanks to collectively bargained 

agreements which will bring about a 

modest increase in disposable income, though 

the stabilizing effect of the labor market will 

cease to apply in the course of 2009 as unemployment 

levels rise. The cycle of capital expenditure 

in Germany already collapsed at the start 

of 2009 and a drop of over 10% is forecast for 

the year as a whole. This fall will further burden 

the overall economic development of 2009 over 

several quarters. 

The global construction industry is expected to 

generate growth in revenue of 2% in real terms 

in 2009. The heterogeneous development of 

the German construction industry in 2008 looks 

set to continue. While public investment in construction 

will expand further (+ 6.9%) mainly as 

a result of the German government’s economic 

stimulus packages, investment in residential 

and commercial construction is likely to shrink 

once again, falling by 1.6% and 5.6% respectively. 

An overall drop of 1.7% compared to 2008 

is therefore forecast. Following negative development 

already in 2008 of the German construction 

machines market, a collapse of around 

18% is expected once again for 2009, with unit 

sales falling to 22,000. 

Estimates for the construction industry of central 

and eastern Europe assume a fall of around 

7.9% in the rate of growth. Accordingly, 

demand for construction machines will also 

decline compared to 2008, not least on account 

of financing bottlenecks as well as falling 

demand from customers in the extraction industry, 

especially in eastern Europe. 



The engines markets relevant for Zeppelin will 

see a deterioration in sales in every segment in 

2009 with the exception of the gas engine 

segment which is buoyed by the effects of the 

KWKG. Project business will also develop negatively, 

with the exception of the OEM business. 

Customers of industrial engines feel compelled 

to develop prototype and pilot projects in 

response to EU emissions standards which will 

be tightened from 2011 onwards. 

The customer industries of Zeppelin’s Industry 

division (global chemicals and plastics industry, 

tire industry) have been burdened by large-scale 

overcapacity since fall 2008 as a consequence 

of the collapse in demand from the automotive, 

construction and consumer goods industries. 

Zeppelin’s most important project for extraction 

equipment had a volume of less than EUR 200 

million as of year-end 2008 and has thus fallen 

below the average prior-year level. Zeppelin will 

feel this in its lower production and revenue 

figures in 2009 and even more so in 2010 once 

the order backlog – still good as of year-end 

2008 – has been cleared. 

There is currently some variation in financial 

experts’ opinions of how the exchange rates 

important for Zeppelin will develop. Forecasts 

for the US dollar/euro exchange rate vary from 

1.37 to 1.07 as of year-end 2009, for example. 

As such, we cannot definitively estimate the 

impact of exchange rate developments in 2009. 

Bank forecasts for eastern European currencies 

predict a trend towards stabilization following 

renewed depreciation at the beginning of 2009. 

Current estimates of the economic development 

of the Zeppelin Group assume a fall in 

revenue to EUR 2.0 billion at best (2008: 

EUR 2.447 billion) with a return on sales before 

taxes of between 2% and no more than 3% 

(2008: 4%). Thus, the worst-case scenario for 

2009 contained in the planning as of year-end 

2008 is now the base-case scenario. We consider 

the primary factors in this development to 

be the palpable decline in the German construction 

machines market and corresponding fall in 

revenue of around EUR 100 million. The similar 

level of decline in the volume of trade business 

in eastern Europe as well as the more settled 

level of revenue in the Zeppelin Industry division, 

following record levels in 2007 and 2008, 

will put a damper on the Group’s performance 

figures. 

The headcount of the Zeppelin Group will therefore 

fall to below 6,000 employees. Adjustments 

are planned for Russia and Ukraine 

in particular. Capital expenditures of around 

EUR 100 million originally planned for fiscal 

2009 (plus EUR 100 million (gross) in additions 

to the rental fleet) will be quickly reviewed and 

reduced in the light of this development. 

At present, economists predict slight growth in 

the global economy of 2.5% for 2010 (IMF), 

though estimates in recent weeks have been 

less positive. In the industrialized nations, 

growth in GDP is expected to reach just 0.8% 

(USA: + 1.3%; the euro zone: + 0.1%; 

Germany: 0.8%). The developing nations might 

achieve growth of 5.1%. The most significant 

investment sectors for Zeppelin in Germany are 

expected to remain at the level of 2009 which 

is already falling, at - 0.2% (capital expenditures) 

and - 0.5% (construction investments). 

The most recent prediction for the German construction 

machines market sees a drop of 10%. 

Falling demand and reduced capacity utilization 

in the chemicals industry means that the project 

and order volume for the Industry division is 

expected to develop negatively once again in 

2010. The Zeppelin Group companies do not 

therefore expect an overall improvement on the 

revenue and earnings situation compared to the 

budgeted figures for 2009. 

The business activities of the Zeppelin Group 

companies have already been affected in the 

first two months of 2009 by the negative market 

and economic developments described 

above. The long winter coupled with prolonged 

periods of rain have impacted on construction 

activities and especially the rental business for 

construction machines in Germany and 

neighboring countries. The drop in revenue 

compared to the prior-year period stands at 

25% with a corresponding negative effect on 

earnings. This development confirms the 

updated assumptions that business will develop 

negatively in 2009. 

Proposal for the appropriation of profit 

The retained earnings of ZEPPELIN GmbH totaled 

EUR 83,011,734.79. Of this, management proposes 

to distribute EUR 9,000,000.00 to shareholders, 

and carry forward EUR 74,011,734.79. 


Management 

Ernst Susanek 






Group Financial Statement 




CONSOLIDATED BALANCE SHEET AS OF 31 DECEMBER 2008 

ASSETS 31.12.2007 

EUR k EUR k EUR k 

A. FIXED ASSETS 

I. Intangible assets 

1. Industrial and similar rights and assets 

and licenses in such rights and assets 8.468 5.324 

2. Goodwill 10.726 12.446 

3. Payments on account 6.459 3.221 

25.653 20.991 

II. Property, plant and equipment 

1. Land, land rights and buildings, 

including buildings on third-party land 146.388 139.055 

2. Plant and machinery 5.934 5.956 

3. Other equipment, furniture and fixtures 30.976 26.409 

4. Rental assets 149.943 129.889 

5. Payments on account and assets under construction 7.248 5.939 

340.489 307.248 

III. Financial assets 

1. Shares in affiliates 11.437 13.693 

2. Loans to affiliates 229 229 

3. Investments in associates 39 39 

4. Equity investments 20.044 8.094 

5. Securities classified as fixed assets 2.331 2.346 

6. Other loans 1.863 1.773 

35.943 26.174 

402.085 354.413 

B. CURRENT ASSETS 

I. Inventories 

1. Raw materials, consumables and supplies 35.887 26.549 

2. Work in process 83.761 79.641 

3. Finished goods and merchandise 507.612 394.908 

4. Payments on account 38.874 39.549 

5. Payments received on account of orders -67.584 -66.947 

598.550 473.700 

II. Receivables and other assets 

1. Trade receivables 275.581 273.901 

2. Receivables from affiliates 4.238 4.140 

3. Receivables from other investees and investors 4.354 2.558 

4. Other assets 39.119 30.383 

323.292 310.982 

III. Cash on hand, bank balances, checks 24.044 32.992 

945.886 817.674 

C. PREPAID EXPENSES 7.186 4.877 

1.355.157 1.176.964 

EQUITY AND LIABILITIES 31.12.2007 



A. EQUITY 

I. Subscribed capital 100.000 50.000 

II. Capital reserves 60.000 60.000 

III. Revenue reserves 

1. Reserve for shares of a controlling company 11.276 11.276 

2. Other revenue reserves 129.272 120.302 

140.548 

IV. Retained earnings of the Group 83.012 89.879 

V. Minority interests 10.843 9.665 

B. PROVISIONS 

394.403 341.122 

1. Provisions for pensions and similar obligations 104.693 105.184 

2. Tax provisions 15.450 15.577 

3. Other provisions 139.237 142.140 

C. LIABILITIES 

259.380 262.901 

1. Liabilities to banks 310.550 155.786 

2. Payments received on account of orders 46.461 65.986 

3. Trade payables 292.801 203.223 

4. Liabilities to affiliates 4.059 266 

5. Liabilities to other investees 

and investors 7.128 126 

6. Other liabilities 39.194 146.269 

thereof for taxes: EUR 16,353 k (prior year: EUR 19,413 k) 

thereof for social security: EUR 1,589 (prior year: EUR 1,333 k) 

700.193 571.656 

D. DEFERRED INCOME 1.181 1.285 

1.355.157 1.176.964



CONSOLIDATED INCOME STATEMENT FOR FISCAL YEAR 2008 

2008 2007 

EUR k EUR k 

1. Sales 2.446.513 2.256.721 

2. Increase in inventories of finished goods 

and work in process 4.425 20.847 

3. Own work capitalized 1.700 1.319 

4. Other operating income 92.232 58.963 

5. Cost of materials 

2.544.870 2.337.850 

a) Cost of raw materials, consumables and supplies and of purchased goods 1.689.380 1.594.412 

b) Cost of purchased services 131.480 101.984 

6. Personnel expenses 

1.820.860 1.696.396 

a) Wages and salaries 245.543 219.170 

b) Social security, pension and benefit costs 42.377 38.976 

c) Pension costs 8.150 19.637 

296.070 277.783 

7. Amortization of intangible fixed assets and depreciation of property, 

plant and equipment 22.861 21.460 

8. Other operating expenses 283.671 206.670 

121.408 135.541 

9. Income from equity investments 47 52 

10. Income from other investments 

and long-term loans 253 242 

11. Other interests and similar income 7.731 5.103 

12. Write-downs on financial assets 458 361 

13. Interest and similar expenses 27.805 21.456 

14. Result from ordinary operations 101.176 119.121 

15. Income taxes 33.296 46.185 

16. Other taxes 2.466 1.540 

17. Net income of the group for the year 65.414 71.396 

18. Net profit allocable to minority interests 1.728 1.313 

19. Group share in net income 63.686 70.083 

20. Retained profits of the Group 33.379 46.161 

21. Change in the consolidated revenue reserves -14.053 - 26.365 

22. Retained earnings of the Group 83.012 89.879 


GROUP CASH FLOW STATEMENT 

FOR FISCAL YEAR 2008 

2008 2007 Variance 


Earnings before incomes taxes 

Write-downs/write-ups 

98.710 117.581 -18.871 

Intangible assets 4.996 4.202 794 

Property, plant and equipment without rental assets 17.865 16.338 1.527 

Rental assets and rental assets classified as current assets 50.506 46.038 4.468 

Financial assets 458 - 1.228 1.686 

Change in pension accruals - 491 11.681 -12.172 

Change in other long-term accruals 5.359 - 177 5.536 

Unrealized exchange losses/profits 24.067 0 24.067 

Other non-cash changes 1.804 - 223 2.027 

Gross cash flow 203.274 194.212 9.062 

Income taxes - 33.296 - 46.185 -12.889 

Net cash flow 169.978 148.027 21.951 

Loss on disposals of fixed assets 33 620 

Increase in inventories without rental assets classified as current assets -143.116 - 153.946 

Increase in trade receivables -1.680 - 19.940 

Increase in other assets -12.392 - 6.687 

Increase in other liabilities 89.924 105.501 

= Cash flow from operating activities 

Investments in 

102.747 73.575 

Intangible assets - 9.911 - 6.858 

Property, plant and equipment without rental assets - 38.335 - 45.042 

Rental assets and rental assets classified as current assets - 53.647 - 39.520 

Financial assets - 12.625 - 5.110 

Additions to the consolidated group 

Revenues from disposals of 

- 549 - 62 

Intangible assets 0 

Property, plant and equipment without rental assets 4.481 2.151 

Financial assets 423 104 

= Cash flow from investing activities - 110.163 -94.337 

Dividend payments to 

shareholders of ZEPPELIN GmbH - 6.500 - 4.000 

Minority interests - 447 - 366 

Borrowing of financial liabilities 106.053 40.000 

Redemption of financial liabilities - 100.000 - 14.055 

= Cash flow from financing activities - 894 21.579 

Change in cash and cash equivalents - 8.310 817 

Cash and cash equivalents at the beginning of the fiscal year 33.992 32.980 

Exchange rate related changes in cash and cash equivalents - 638 - 805 

Cash and cash equivalents at the end of the fiscal year 24.044 32.992 




STATEMENT OF CHANGES IN FIXED ASSETS OF THE GROUP FOR FISCAL YEAR 2008 

Acquisition and Production Cost 

Net book value 

Currency Changes in basis Additions Reclassi- Disposals Write-ups 

Accumulated 

depreciation Annual 

1. Jan. 2008 differences of consolidation fications 31 Dec. 2008 31. Dec. 2008 31. Dec. 2008 31.Dec. 2007 depreciation 

EUR k EUR k EUR k EUR k EUR k EUR k EUR k EUR k EUR k EUR k EUR k EUR k 

I. Intangible assets 

1. Industrial and similar rights and 

assets and licenses in such rights and assets 16.724 -768 447 5.516 114 84 21.949 0 13.481 8.468 5.324 2.228 

2. Goodwill 24.472 -77 0 1.078 0 0 25.473 0 14.747 10.726 12.446 2.768 

3. Payments on account 3.221 6 0 3.317 -85 0 6.459 0 0 6.459 3.221 0 

44.417 -839 447 9.911 29 84 53.881 0 28.228 25.653 20.991 4.996 

II. Property, plant and equipment 

1. Land, land rights and buildings, 

including buildings on third-party land 222.346 -736 0 11.494 5.239 12.955 225.388 0 79.000 146.388 139.055 6.562 

2. Plant and machinery 35.311 -616 47 2.032 37 2.004 34.807 0 28.873 5.934 5.956 1.465 

3. Other equipment, furniture and fixtures 80.298 -2.963 42 17.276 213 5.424 89.442 0 58.466 30.976 26.409 9.838 

4. Rental assets 193.415 -1.772 36 88.880 -189 61.910 218.460 0 68.517 149.943 129.889 1 30.988 

5. Payments on account and assets under construction 5.939 -55 0 7.533 -5.329 840 7.248 0 0 7.248 5.939 0 

537.309 -6.142 125 127.215 -29 83.133 575.345 0 234.856 340.489 307.248 48.853 

581.726 -6.981 572 137.126 0 83.217 629.226 0 263.084 366.142 328.239 53.849 

III. Financial assets 

1. Shares in affiliates 14.054 0 0 131 0 2.291 11.894 0 457 11.437 13.693 457 

2. Loans to affiliates 3.568 0 0 0 0 0 3.568 0 3.339 229 229 0 

3. Investments in associates 39 0 0 0 0 0 39 0 0 39 39 0 

4. Equity investments 8.094 -46 0 11.996 0 0 20.044 0 0 20.044 8.094 0 

5. Securities classified as fixed assets 2.346 0 0 158 0 173 2.331 1 1 2.331 2.346 1 

6. Other loans 2.992 0 0 340 0 250 3.082 0 1.219 1.863 1.773 0 

31.093 -46 0 12.625 0 2.714 40.958 1 5.016 35.943 26.174 458 

612.819 -7.027 572 149.751 0 85.931 670.184 1 268.100 402.085 354.413 54.307 

1 netted in cost of materials 



1. January 2007 

Dividend payments 

Other changes 


STATEMENT OF CHANGES IN GROUP EQUITY 

Net income of the Group for the year 

Other comprehensive income 

Total recognized income/loss for the Group 

31. December 2007 

1. January 2008 

Dividend payments 

Capital contributions from 

Company funds 

Other changes 

Net income/loss of the Group for the year 

Other comprehensive income 

Total recognized income/loss for the Group 

31. December 2008 

Parent company Minority interests 

Group equity 

Subscribed Capital Earned Accumulated other comprehensive income Equity 

capital reserve Group 

equity Translation Other 

reserve non-operating 

transactions 

EUR k EUR k EUR k EUR k EUR k EUR k 

50.000 60.000 148.025 2.592 6.001 266.618 

- 4.000 - 4.000 

- 161 - 62 - 223 

50.000 60.000 143.864 2.592 5.939 262.395 

70.083 70.083 

-1.021 -1.021 

70.083 -1.021 0 69.062 

50.000 60.000 213.947 1.571 5.939 331.457 

50.000 60.000 213.947 1.571 5.939 331.457 

- 6.500 - 6.500 

50.000 -50.000 0 

- 158 - 549 - 707 

100.000 60.000 157.289 1.571 5.390 324.250 

63.686 63.686 

- 4.376 - 4.376 

63.686 - 4.376 0 59.310 

100.000 60.000 220.975 -2.805 5.390 383.560 

Minority Accumulated other Equity 

interests comprehensive income 


Translation 

Reserve 


5.957 1.036 6.993 

- 366 - 366 

1.352 1.352 

6.943 1.036 7.979 

1.313 1.313 

373 373 

1.313 373 1.686 

8.256 1.409 9.665 

8.256 1.409 9.665 

- 447 - 447 

- 41 

- 41 

7.768 1.409 9.177 

1.728 1.728 

- 62 - 62 

1.728 - 62 1.666 

9.496 1.347 10.843 

EUR k 

273.611 

- 4.366 

1.129 

270.374 

71.396 

- 648 

70.748 

341.122 

341.122 

- 6.947 

0 

- 748 

333.427 

65.414 

- 4.438 

60.976 

394.403



NOTES TO THE CONSOLIDATED 

FINANCIAL STATEMENTS FOR 

FISCAL YEAR 2008 

I. GENERAL INFORMATION 

The consolidated financial statements of 

ZEPPELIN GmbH, Friedrichshafen, for the fiscal 

year 2008 have been prepared in accordance 

with the provisions of HGB [“Handelsgesetzbuch”: 

German Commercial Code]. To improve 

the clarity of the consolidated financial statements, 

the balance sheet was prepared using 

the long-form classification format pursuant to 

Sec. 266 (2) and (3) HGB for the first time. Figures 

in the consolidated financial statements are 

stated in thousands of euros. 

In order to improve the true and fair view of 

earnings and assets, short-term receivables and 

assets from current transactions due in less 

than one year (including trade receivables and 

payables) were translated into local currency 

using the rate prevailing on the balance sheet 

date for the first time as of 31 December 2008. 

This method ensures that all exchange losses 

are appropriately recognized and takes into 

account unrealized exchange gains. Unrealized 

exchange rate gains improved earnings by EUR 

3.8 million compared to the prior accounting 

method. 

In accordance with the general valuation principles 

of Sec. 252 (1) No. 4 HGB in conjunction 

with Sec. 253 (3) HGB, foreseeable risks and 

losses from the development of the exchange 

rate in the period from 1 January to 27 February 

2009 were taken into account in the valuation 

of receivables and liabilities disclosed in the 

annual financial statements of a foreign subsidiary. 

This burdened earnings by EUR 11.0 million. 

II. ACCOUNTING AND VALUATION METHODS 

The financial statements of ZEPPELIN GmbH 

and of the other companies included in the 

consolidated financial statements are generally 

prepared in accordance with uniform accounting 

and valuation principles. 

The financial statements of a foreign company 

included using the equity method was not adjusted 

in line with Group accounting and valuation 

methods. The most current financial statements, 

dating from no more than one year ago, 

are used as a basis. 

Intangible assets and property, plant and equipment 

are capitalized at acquisition or production 

cost in line with tax provisions. Self-constructed 

assets are stated at direct costs as well as 

directly allocable materials and production overheads. 

Acquisition or production cost is reduced by 

systematic amortization and depreciation. 

Impairments are recorded as required by special 

circumstances. 

The customary useful life for intangible assets 

is generally between three and eight years. 

Amortization of the goodwill resulting from 

first-time consolidation is recorded on a 

straight-line basis over a period of five or ten 

years. 

Buildings are depreciated using the straight-line 

method or based on the depreciation rates permitted 

by tax provisions. 

Moveable assets are generally depreciated on a 

systematic basis using the straight-line method 

over their useful lives or using the highest taxallowed 

rates and the declining-balance 

method. Low-value assets with an individual 

acquisition cost of between EUR 150.00 and 

EUR 1,000.00 are capitalized and generally 

depreciated over a useful life of five years. 

Rental assets are depreciated using the 

straight-line method over the useful lives permitted 

under tax provisions. The total depreciation 

of EUR 31.0 million (prior year: EUR 26.8 

million) is included under cost of materials. 

Shares in non-consolidated affiliates are recognized 

at the lower of cost or market on the 

balance sheet date, and one subsidiary is recognized 

using the equity method. 

Loans are stated at their nominal amount or 

their lower realizable value on the balance sheet 

date. Long-term investments are capitalized at 

the lower of acquisition cost or net realizable 

value on the balance sheet date. 

Inventories are generally valued at the lower of 

acquisition or production cost in line with tax 

provisions or net realizable value on the balance 

sheet date. Adequate allowances provide for 

inventory valuation risks from slow-moving and 

obsolete goods. 

Receivables and other assets are stated at their 

nominal value, except for notes receivable, 

which are stated at their present value. Specific 

bad debt allowances provide for recognizable 

risks. The general credit risk is provided for by 

different general bad debt allowances for notes 

receivable and trade receivables. 

Provisions for pensions in Germany are determined 

on the basis of actuarial principles in 

accordance with Sec. 6a EStG [“Einkommenssteuergesetz”: 

German Income Tax Act] using 

an interest rate of 4.5% (prior year: 4.5%) and a 

pension increase rate of 1% (prior year: 1%). 

The “2005 G mortality tables” by Prof. Dr. Klaus 

Heubeck were used. For foreign companies, 

the normal interest rate for the country concerned 

was used. 

Provisions account for all identifiable risks and 

contingent liabilities at the amount of expected 

utilization. 

Liabilities are recorded at the amount repayable. 



III. BASIS OF CONSOLIDATION 

Apart from ZEPPELIN GmbH, the consolidated 

group comprises seven (prior year: eight) German 

COMPANIES INCLUDED APART FROM THE PARENT COMPANY 

and 21 (prior year: 18) foreign companies. The 

following companies are included: 

Name and location of the company Share in 

capital % 1) 

Companies included apart from the parent company 

Zeppelin Baumaschinen GmbH, Garching bei München 100 

MVS Zeppelin GmbH & Co.KG, Garching bei München 100 

MVS Zeppelin Verwaltungs GmbH, Garching bei München 100 

Zeppelin Power Systems GmbH & Co. KG, Hamburg 100 

Zeppelin Power Systems Verwaltungs GmbH, Hamburg 100 

MaK Deutschland Verwaltungs-GmbH, Hamburg 100 

Zeppelin Österreich GmbH, Fischamend, Austria 100 

MVS Zeppelin Österreich GmbH, Fischamend, Austria 100 2) 

Phoenix-Zeppelin, spol. s r.o., Modletice, Czech Republic 85 

Phoenix Zeppelin, spol. s r.o., Banska Bystrica, Slovak Republic 85 3) 

Zeppelin Polska Sp. z o.o., Warsaw, Poland 85 3) 

Zeppelin Logistics Sp. z o.o., Warsaw, Poland 85 3) 

Phoenix-Zeppelin Ukraine Ltd., Kiev, Ukraine 85 3) 

Zeppelin International AG, Zug, Switzerland 100 

Zeppelin Russland OOO, Moscow, Russia 100 4) 

Zeppelin Belarus OOO, Minsk, Belarus 100 5) 

Zeppelin Ukraine TOW, Kiev, Ukraine 100 4) 

Zeppelin Turkmenistan JV, Ashgabat, Turkmenistan 100 5) 

Zeppelin Armenien LLC, Yerewan, Armenia 100 5) 

Zeppelin Silos & Systems GmbH, Friedrichshafen 100 

Zeppelin Belgium N.V., Genk, Belgium 100 6) 

Zeppelin Plast Tech S.r.l., Milan, Italy 90 6) 

Zeppelin Systems Limited, Nottingham, UK 100 6) 

Zeppelin Systems USA Inc., Houston/Texas, USA 100 6) 

JMB Zeppelin Equipamentos Industriais Ltda., São Paulo, Brazil 100 6) 

Zeppelin Solid Technology (Beijing) Co. Ltd., Beijing, China 100 6) 

Zeppelin Technology Far East Pte. Ltd., Singapore 100 6) 

Zeppelin Plastech Asia Pte. Ltd., Singapore 100 7) 

1) Direct and indirect. 

2) Shares are held by Zeppelin Österreich GmbH, Fischamend, Austria. 

3) Shares are held by Phoenix-Zeppelin spol. s r.o., Modletice, Czech Republic. 

4) Shares are held by Zeppelin International AG, Zug, Switzerland. 

5) Shares are held by Zeppelin International AG, Zug, Switzerland und Zeppelin Russland OOO, Moscow, Russia. 

6) Shares are held by Zeppelin Silos & Systems GmbH, Friedrichshafen. 

7) Shares are held by Zeppelin Technology Far East Pte. Ltd., Singapore. 

The German consolidated company Zeppelin 

Materials Handling GmbH, Friedrichshafen, 

which is allocated to the Industry division, was 

deconsolidated. The company was merged 

into Zeppelin Silos & Systems GmbH, Friedrichshafen. 

The international consolidated group was enlarged 

to include the following companies: 

Phoenix-Zeppelin Ukraine Ltd., Kiev, Ukraine 

and Zeppelin Logistics Sp. z o.o., Warsaw, 

Poland of the Trade division, as well as Zeppelin 

Systems Limited, Nottingham, UK, of the Industry 

division. 

The changes in the consolidated group did not 

have any material effects. 

Phoenix-Zeppelin Ukraine Ltd., Kiev, Ukraine, 

was founded in 2006 and included in the consolidated 

financial statements for the first time as 

of 1 January 2008. The company specializes in 

the sale of fork-lift trucks and spare parts and 

provides services for the market for these products 

in Ukraine. Its revenue amounted to EUR 

1.7 million, with a net loss for 2008 of EUR 208 k. 

Zeppelin Logistics Sp. z o.o., Warsaw, Poland, 

was founded in 2008 and included in the conso- 

lidated financial statements for the first time as 

of 1 July 2008. The Company provides fork-lift 

drivers for various special projects. The services 

are billed exclusively to Zeppelin Polska Sp. z o.o., 

Warsaw, Poland. The net loss for 2008 came to 

EUR 28 k. No revenue has yet been generated. 

Zeppelin Systems Limited, Nottingham, UK, 

was founded in 2007 and included in the consolidated 

financial statements for the first time as 

of 1 January 2008. The purpose of the company 

is the development and production of extraction 

equipment in the plastics production and 

processing industry as well as the related apparatus 

for storage and transport of all kinds of 

bulk goods. Its revenue amounted to EUR 8.9 

million, with a net loss for 2007 of EUR 69 k. 

Four German companies (prior year: one) and 

four (prior year: six) foreign companies with a 

small volume of business activity were not 

included in the consolidated financial statements 

in accordance with Sec. 296 (2) HGB. 

Overall, they are immaterial as regards the 

requirement to present a true and fair view of 

the net assets, financial position and results of 

operations of the Group. An overview of the 

disclosures required pursuant to Sec. 313 (2) 

No. 4 HGB is presented below. 



COMPANIES NOT INCLUDED IN THE CONSOLIDATED GROUP 

Name and location of the company Share in Equity Net income/loss 

capital % 1) Companies not included in the consolidated 

group pursuant to Sec. 296 HGB 

EUR k EUR k 

AT Baumaschinentechnik Beteiligungs GmbH, Munich 100 2) 24 -1 

Rentas GmbH Werkzeugvermietung und Service, Essen 100 3) -171 -222 

Zeppelin SkySails Sales & Service GmbH & Co. KG, Hamburg 4) 5) 67 

Zeppelin SkySails Sales & Service Verwaltungs GmbH, Hamburg 4) 5) 67 

Zeppelin-Körös-Spedit Kft., Budapest, Hungary 50 6) 109 24 

Zeppelin Central Asia Machinery LLC., Tashkent, Uzbekistan 100 7) 31 -1 

DIMA service for plant engineering s r.o., Bratislava, Slovak Republic 100 8) 50 117 

Zeppelin Silo ve Sistemleri Imalat Sanayi Ticaret Anonim Sirketi, 

8) 5) 

Istanbul, Turkey 90 

Other equity investments 

CZ LOKO a. s., Ceská Trebová, Czech Republic 49 6) 16.538 1.898 

8) 5) 

Zeppelin Gulf Co. Ltd., Al Jubail, Saudi Arabia 49 

1) Direct and indirect. 

2) Shares are held by Zeppelin Baumaschinen GmbH, Garching near Munich. 

3) Shares are held by MVS Zeppelin GmbH & Co. KG, Garching near Munich. 

4) Shares are held by Zeppelin Power Systems GmbH & Co. KG, Hamburg. 

5) Financial statements were not completed on the date that the list of shareholdings was prepared. 

6) Shares are held by Phoenix-Zeppelin spol. s r.o., Modletice near Prague, Czech Republic. 

7) Shares are held by Zeppelin International AG, Zug, Switzerland and Zeppelin Russland OOO, Moscow, Russia. 

8) Shares are held by Zeppelin Silos & Systems GmbH, Friedrichshafen. 

IV. CONSOLIDATION PRINCIPLES 

Until 31 December 2000, business combinations 

were consolidated using the book value 

method (Sec. 301 (1) Sentence 2 No. 1 HGB) as 

at the date of acquisition or the date of firsttime 

consolidation of the subsidiary. A Brazilian 

subsidiary that was included in the consolidated 

financial statements for the first time in fiscal 

1998 was consolidated using the revaluation 

method (Sec. 301 (1) Sentence 2 No. 2 HGB) in 

order to use the revaluation of fixed assets performed 

in preparing the financial statements 

pursuant to local GAAP for consolidation purposes 

as well. 

For business combinations since 1 January 

2001, capital is generally consolidated using the 

revaluation method as at the date of acquisition. 

If a debit difference arises in the course of the 

initial consolidation, this is allocated to the individual 

assets of the subsidiaries to the extent 

that their value is higher than the book value in 

the separate financial statements. Any remaining 

difference or any debit difference arising 

from the application of the revaluation method 

was treated as goodwill and amortized pursuant 

to Sec. 309 (1) Sentence 1 HGB or netted 

against the revenue reserves of the Group. 

A (partial) debt difference of EUR 3,014 k arose 

in the course of the acquisition as of 1 December 

2007 of remaining shares in a foreign company. 

This (partial) debt difference is subject to scheduled 

amortization over a period of five years starting 

from 1 December 2007. The subsequent 

purchase price payment of EUR 1,078 k made in 

2008 led to a further debit difference which was 

amortized over the residual useful life of goodwill 

starting from 1 December 2008. 

The first-time consolidation of two foreign companies 

in 2008 as well as the consolidation of 

further shares in a foreign subsidiary resulted in 

a total debit difference of EUR 549 k. They 

were offset against the Group's revenue reserves. 

They were consolidated for the first time 

on 1 January 2008. No difference resulted from 

the first-time consolidation of one other foreign 

company as of the date of foundation. 

Minority interests in equity and net income are 

accounted for in the balance sheet under “minority 

interests” and in the income statement 

under “net income for the year attributable to 

minority interests”. The amount disclosed in 

the income statement under “net income for 

the year attributable to minority interests” 

results from offsetting income (EUR 1,783 k; 

prior year: EUR 1,869 k) against losses (EUR 55 

k; prior year: EUR 556 k). 

The retained earnings of ZEPPELIN GmbH, 

Friedrichshafen, are disclosed at the same 

amount both in the separate financial statements 

and the consolidated financial statements. 

Consolidation entries which have an 

effect on income are offset against the net income 

of the consolidated subsidiaries in other 

revenue reserves. 

Shares in one company are valued using the 

equity method in the consolidated financial 

statements. The book value method pursuant 

to Sec. 312 (1) No. 1 HGB is applied as at the 

date of first-time consolidation. The value was 

not rolled forward in the fiscal year since the 

book value approximates the pro rata equity of 

the associate. 

Intercompany receivables and liabilities were 

eliminated in the course of consolidation of 

intercompany balances. Differences were 

recognized directly in the income statement. 

Income and expenses between consolidated 

companies were offset against each other. 

Intercompany profits from property, plant and 

equipment and inventories were eliminated. 

Deferred tax assets were recorded on prepaid 

expenses due to consolidation entries with 

effect on income. The option of recognizing 

deferred tax assets pursuant to Sec. 274 (2) 

HGB was not exercised. 



V. CURRENCY TRANSLATION 

The financial statements of foreign companies 

of the Group are translated to euro (reporting 

currency of the consolidated financial statements) 

based on the functional currency concept. 

The functional currency of the companies 

included in the consolidated financial statements 

is generally the respective local currency 

as the foreign companies carry out their business 

activities independently from a financial, 

economic and organizational perspective. Two 

of the companies have the US dollar as their 

functional currency. Assets and liabilities are 

translated at the mean rate of exchange prevailing 

on the balance sheet date; while equity 

(subscribed capital, reserves and profit carryforward) 

is translated at historical rates. Any 

translation difference resulting from changes in 

exchange rates is accounted for in the revenue 

reserves until the subsidiary concerned is 

deconsolidated. Income and expenses are 

translated at the average annual rate. The net 

result in the consolidated income statement is 

carried over to the balance sheet and the difference 

posted to the translation reserve directly 

under equity. 

Transactions in foreign currency reported in the 

separate financial statements of the companies 

are valued at historical rates. Exchange rate 

gains or losses occurring until the balance sheet 

date from the valuation of monetary items as 

well as short-term receivables and liabilities 

denominated in foreign currency are accounted 

for with effect on income or loss. The imparity 

principle is observed for long-term receivables 

and liabilities. 

VI. NOTES TO THE CONSOLIDATED 

BALANCE SHEET 

The development of the individual fixed asset 

items is presented separately in the “Statement 

of changes in fixed assets of the Group”. 

Intangible assets mainly comprise software, 

licenses and similar rights as well as goodwill 

and similar assets. 

Impairment losses (EUR 0.1 million) were 

recognized inventories of rental assets to 

account for reduced usability or salability. 

The reversal – due to Sec. 308 (3) HGB old version 

being repealed – of the transfers of special 

items with an equity portion carried out in prior 

years and special tax-allowed depreciation recorded 

in prior years led to additional depreciation 

of EUR 407 k in 2008. The aforementioned 

adjustments to the book value of property, plant 

and equipment result in an additional writedown 

of EUR 4,999 k in subsequent years. 

MATURITY OF RECEIVABLES AND OTHER ASSETS 

Shares in affiliates include in particular shares in 

a controlling company of Luftschiffbau Zeppelin 

GmbH, Friedrichshafen (EUR 11,276 k). The 

shares correspond to 10% of subscribed 

capital, which amounts to EUR 35.0 million. In 

addition to a capital increase, additions include 

three newly founded companies in Germany 

and one in Turkey. Write-downs of a German 

affiliate amounted to EUR 0.5 million in the fiscal 

year. 

Equity investments include shares in two German 

companies and two foreign companies. 

Due in more Total 

than one year 

EUR k EUR k 

1. Trade receivables 2.816 275.581 

(prior year) (2.647) (273.901) 

2. Receivables from affiliates 3.500 4.238 

(prior year) (3.000) (4.140) 

3. Receivables from other investees and investors 0 4.354 

(prior year) (0) (2.558) 

4. Other assets 3.920 39.119 

(prior year) (3.549) (30.383) 



Receivables from affiliates include receivables 

due from shareholders totaling EUR 3,500 k 

(prior year: EUR 3,013 k). 

Cash and cash equivalents comprise cash on 

hand, bank balances and checks. 

Prepaid expenses include deferred tax assets 

of EUR 1.3 million (prior year: EUR 0.8 million) 

from consolidation procedures as well as a debt 

discount of EUR 0.2 million (prior year: EUR 0.2 

million). 

The reserve for shares of a controlling company 

concerns the equity investment in Luftschiffbau 

Zeppelin GmbH, Friedrichshafen held by 

ZEPPELIN GmbH. 

The development of the individual group equity 

items is presented separately in the “Statement 

of changes in group equity” (exhibit 4). 

Other provisions mainly concern personnel, 

warranty obligations, outstanding invoices, 

obligations from full-service agreements, a bill 

of exchange and potential losses from pending 

transactions. 

Of the tax provisions, EUR 4,708 k relates to 

deferred tax liabilities (prior year: EUR 3,966 k). 

Of this, an amount of EUR 3,078 k (prior year: 

EUR 1,484 k) relates to deferred taxes pursuant 

to Sec. 274 (1) HGB (deferred tax liabilities from 

separate financial statements). 

Liabilities are broken down in the following 

schedule of liabilities: 

SCHEDULE OF LIABILITIES 

Liabilities to affiliates include liabilities to the 

shareholder of EUR 4,013 k (prior year: EUR 1 k). 

Deferred income mainly concerns the rental 

business. 

Due in Total 

less than one to more than 

one year five years five years 

EUR k EUR k EUR k EUR k 

1. Liabilities to banks 126.441 153.180 30.929 310.550 

(prior year) (77.730) (77.979) (77) (155.786) 

2. Payments received on account of orders 46.461 0 0 46.461 

(prior year) (65.986) (0) (0) (65.986) 

3. Trade payables 288.245 4.556 0 292.801 

(prior year) (202.109) (1.114) (0) (203.223) 

4. Liabilities to affiliates 4.059 0 0 4.059 

(prior year) (266) (0) (0) (266) 

5. Liabilities to other investees 

and investors 7.128 0 0 7.128 

(prior year) (126) (0) (0) (126) 

6. Other liabilities 34.585 4.415 194 39.194 

(prior year) (142.336) (3.666) (267) (146.269) 

506.919 162.151 31.123 700.193 



DERIVATIVE FINANCIAL INSTRUMENTS 

Derivative financial instruments are used to 

hedge interest rate and currency risks relating to 

operating activities or to reduce the financing 

requirements resulting from operating activities. 

Mostly forward exchange contracts are entered 

into to hedge against the risks resulting from 

the fluctuation of receivables, liabilities and anti- 

cipated transactions denominated in foreign 

currency. 

With a view to balancing the interest risk, any 

future interest and currency risks arising in the 

course of financing the Company are hedged by 

entering into appropriate interest rate swaps. 

Interest derivatives effectively convert liabilities 

subject to variable interest into fixed-interest 

liabilities and can thus reduce the agreed interest 

obligation tied to the hedged item. 

NOMINAL VOLUMES AND FAIR VALUES 

Financial instruments are recognized and valued 

based on the imparity principle. The market value 

of financial instruments is determined using 

generally accepted methods based on the market 

data available as of the balance sheet date. If 

the criteria for the creation of valuation units are 

not satisfied, negative market values are recognized 

under other provisions. A provision for potential 

losses of EUR 1.4 million was recognized for 

interest rate swaps. 

The nominal volumes and fair values (mark to 

market) as of the balance sheet date were as 

follows: 

Nominal volume Fair value 

EUR million EUR million 

Interest rate swaps 

Positive fair values 105,0 2,9 

Negative fair values 195,5 - 7,0 

Forward exchange contracts 12,9 0,4 

Forward exchange options 0,8 0,1 

314,2 - 3,6 

Notes to the income statement 

Revenue breaks down into the following activities: 

50.4% relates to German revenue and 49.6% 

to international revenue. 


REVENUE 

Trade division 

EUR k 

Earth movers (new) 880.736 

Earth movers (used) 250.505 

Rental business 113.386 

Fork-lift truck including rental 82.052 

Power systems incl. rental 218.299 

Agricultural machinery including rental 99.652 

Components 78.213 

Spare parts 321.113 

After-sales service 141.159 

Other 22.767 

2.207.882 

Industry division 

Silos 38.105 

Plant construction companies 93.078 

Plant construction processors 45.626 

Plant construction minerals 6.635 

Equipment engineering 22.258 

Components 13.517 

Services, other 19.412 

238.631 

2.446.513


Other operating income includes the following 

significant items: 

Income from the reversal of provisions, income 

from return deliveries, book gains from the 

disposal of fixed assets, gains from sale and 

leaseback transactions, reversal of valuation 

allowances, cost refunds, exchange rate gains, 

rent and other services. 

Other operating income includes income 

relating to other periods of EUR 16.5 million, 

mainly from the reversal of provisions. 

Other operating expenses primarily contains 

significant administration expenses, operating 

and selling costs, maintenance expenses, 

additions to bad debt allowances, bad debts, 

exchange rate losses and additions to provisions. 

EUR 309 k (prior year: EUR 275 k) of interest 

income is attributable to affiliates. EUR 51 k 

(prior year: EUR 0 k) of interest expenses con- 

cerns affiliates. 

Income taxes include deferred taxes of EUR 

1,399 k (prior year: EUR 1,316 k). The corporate 

income tax rate of 15% applicable as of 

1 January 2008 has been taken as a basis for 

the valuation of the deferred taxes attributable 

to the German companies. The average income 

tax rate comes to 29.0% including the solidarity 

surcharge (5.5%) and trade tax (average multiplier 

366.0%). 

Notes to the consolidated cash flow statement 

The consolidated cash flow statement presents 

changes in cash and cash equivalents of the 

Zeppelin Group over the course of the fiscal 

year. In accordance with GAS 2, cash flows are 

classified into cash from operating activities, 

from investing activities and from financing activities. 

The cash and cash equivalents disclosed in the 

cash flow statement comprise all of the liquid 

assets disclosed in the balance sheet, i.e., cash 

on hand, checks and bank balances. 

Cash flow from investing and financing activities 

are recorded on a payment basis; investments 

in rental assets are disclosed net of 

payments received for disposals. By contrast, 

cash flow from operating activities is derived 

indirectly from the net income of the group for 

the year. In the course of the indirect calculation, 

changes in balance sheet items relating to 

operating activities are adjusted for currency 

translation effects and effects of first-time 

consolidation or deconsolidation. 

In fiscal 2008, interest received amounted to 

EUR 7,946 k and interest paid totaled EUR 

26,451 k. 

Current income taxes amount to EUR 35,555 k. 

Disclosures and other notes 

CONTINGENT LIABILITIES AND OTHER 

FINANCIAL OBLIGATIONS 

1. Contingent liabilities 

The purchase commitment is at the customary 

level. 

Other notes 

Disclosure of the remuneration of the company 

boards was suppressed in accordance with 

Sec. 286 (4) HGB. 

Four companies – namely Zeppelin Baumaschinen 

GmbH, Garching near Munich, Zeppelin 

Silos & Systems GmbH, Friedrichshafen, 

Zeppelin Power Systems GmbH & Co. KG, 

Hamburg, and MVS Zeppelin GmbH & Co. KG, 

Garching near Munich – do not publish their 

financial statements pursuant to Sec. 264 (3) 

HGB and Sec. 264b HGB. 


Management of 

ZEPPELIN GmbH 

PERSONNEL 

Ernst Susanek 





The average number of employees 

for the year was: 


EUR million 

Obligations in respect 

of bills of exchange 15,9 

Guarantees 16,8 

Guarantee contract 3,0 

Warranties 0,2 

2. Financial obligations 

Rent and lease obligations 

35,9 

due 2009 61,1 

due 2010 through 2013 76,0 

due after 2013 0,9 

Repurchase agreements 149,3 

287,3 

Personnel 

Wage earners 2.322 

Salaried employees 3.340 

Trainees 311 

5.973

Audit opinon 

We have audited the consolidated financial 

statements prepared by ZEPPELIN GmbH, 

Friedrichshafen, comprising the balance sheet, 

the income statement, the cash flow statement, 

the statement of changes in equity and 

the notes to the consolidated financial statements, 

together with the group management 

report for the fiscal year from 1 January 2008 to 

31 December 2008. The preparation of the consolidated 

financial statements and the group 

management report in accordance with German 

commercial law is the responsibility of the 

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. 

We conducted our audit of the consolidated 

financial statements in accordance with Sec. 

317 HGB [“Handelsgesetzbuch”: German Com- 

mercial Code] 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 the 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 [German] principles of proper 

accounting 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 the legal requirements and give a 

true and fair view of the net assets, financial 

position and results of operations of the Group 

in accordance with [German] principles of proper 

accounting. 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 relating to future 

development. 

Stuttgart, April 3, 902009 

Ernst & Young AG 

Wirtschaftsprüfungsgesellschaft 

Steuerberatungsgesellschaft 

Prof. Dr. Müller Pentz 

Wirtschaftsprüfer Wirtschaftsprüfer 

[German Public [German Public 

iAuditor] Auditor] 


92 

ZEPPELIN GROUP FACTSHEET (front cover) 

190 LOCATIONS (front cover, double page) 

ZEPPELIN GROUP CONTACTS (back cover) 

STRUCTURE (back cover, double page)

ANNUAL REPORT - ZEPPELIN GmbH

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