ANNUAL REPORT 2011 A.S. CRÉATION TAPETEN AG

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GROUP MANAGEMENT REPORT 46 Total assets and financial structure € 161.8 m 43% 52% 32% 57% 16% 60% 20% 2009 2010 Assets Non-current assets Current assets € 161.6 m 40% 55% 25% € 157.3 m 43% 57% 28% 57% 15% 2011 Equity and Liabilities Equity Non-current liabilities Current liabilities current assets. As of December 31, 2011, the respective ratio stood at 196.3% (2010: 199.3%), which means that the “golden rule of financing" was more than fulfilled. • While the debt to equity ratio (net financial liabilities divided by equity) increased because of the higher liabilities, it was still low at 32.9% on December 31, 2011 (2010: 18.3 %). • Due to the increased liabilities and the reduced cash flow, the debt repayment period (the quotient of net financial liabilities and cash flow) also deteriorated in the past fiscal year, when it reached 2.1 years (2010: 0.9 years). The Managing Board also considers the net asset position of A.S. Création to be very sound. As of December 31, 2011, the Group’s total assets amounted to € 157.3 million (2010: € 161.6 million), of which 82.4% (2010: 87.8%) related to property, plant and equipment, inventories, trade receivables as well as cash and cash equivalents. Goodwill recognised in the consolidated financial statements represented only 4.9% (2010: 4.8%) of total assets and 8.6% (2010: 8.7%) of the equity capital. The Managing Board of A.S. Création believes that the net asset and financial position of A.S. Création is robust and sound and will enable the company to continue its growth strategy, which provides, among other things, for the start-up of a wallpaper production facility in Russia. Profit appropriation The Managing Board of A.S Creation Tapeten AG has always pursued a dividend policy that provides for a high payout ratio as long as this is permitted by the company’s financial situation. In the past years, the payout ratio of A.S. Création settled at a level of 40% to 45%. In spite of the uncertain environment prevailing in 2012 and the financing requirements resulting from the start-up of a wallpaper
production facility in Russia, the Managing Board and the Supervisory Board support a continuation of the existing dividend policy. This step is to ensure the consistency and the reliability of the company’s dividend policy. As explained under “Earnings position”, the net profit for the year decreased from € 8.4 million (or € 3.05 per share) in the previous year to € 4.6 million (or € 1.69 per share) in fiscal 2011. In accordance with the traditional dividend policy, the lower profit will be reflected in a lower dividend. Accordingly, the Managing Board will propose payment of a dividend of € 0.75 (2010: € 1.35) per share to the General Meeting of Shareholders, which is scheduled for May 3, 2012. This represents a payout ratio of 44.4% (2010: 44.3%). Based on the number of 2.756 million shares outstanding as of December 31, 2011, this will result in a total dividend volume of € 2.1 million (2010: € 3.7 million). Compensation report The compensation earned by the Managing Board members comprises a performancelinked and a non-performance-linked component. The latter consists of a fixed monthly salary and the value of non-monetary compensation that needs to be stated under applicable tax legislation (mainly the use of a company car). Tax on such non-monetary compensation is to be paid by each individual Board member. While all Board members are basically entitled to the same non-monetary compensation, the corresponding amounts differ depending on the member’s personal circumstances. In the context of the renewal of the contracts of the Managing Board members, which became effective on April 1, 2011, the performancelinked component of the compensation system was fundamentally revised. At the same time, the compensation structure was geared to sustainable corporate development as provided for under the German Act on the Appropriateness of Executive Remuneration (Gesetz zur Angemessenheit der Vorstandsvergütung VorstAG). Since this date, the Group’s weighted average cash flow from three fiscal years has formed the basis of assessment for the calculation of the performance-linked component. Each member of the Managing Board will receive a fixed percentage of this basis of assessment. The adjustment of the basis of assessment has resulted in two major improvements. First, the cash flow, unlike the consolidated net profit, reflects the company’s cash situation. Purely accounting-induced non-cash changes in the earnings position, such as changed depreciation standards or the effects of changes in the tax rates on deferred taxes, no longer have an impact on the amount of the Managing Board bonus. Second, the focus is no longer placed on the (short-term) economic performance of only one year but on a longer GROUP MANAGEMENT REPORT 47
Page 1 and 2: ANNUAL REPORT 2011 A.S. CRÉATION T
Page 3 and 4: Foreword 8 Managing Board and Super
Page 5 and 6: account, however, the A.S. Créatio
Page 7 and 8: higher sales also in the Eastern Eu
Page 9 and 10: January February April May November
Page 11 and 12: Board has transferred decision-maki
Page 13 and 14: • discussion about the recommenda
Page 15 and 16: CORPORATE GOVERNANCE STATEMENT AND
Page 17 and 18: Declaration of conformity pursuant
Page 19 and 20: to the Supervisory Board in writing
Page 21 and 22: Accounting and audit The consolidat
Page 23 and 24: Introduction The A.S. Création Gro
Page 25 and 26: possible. On the other hand, there
Page 27 and 28: homing or cocooning, which they see
Page 29 and 30: evenues generated by A.S. Création
Page 31 and 32: the fiscal year is due to the revis
Page 33 and 34: dards by an independent auditor on
Page 35 and 36: with effect from March 1, 2011. In
Page 37: Cash-flow in € m 17.6 19.0 2009 2
Page 41 and 42: from the performance-oriented syste
Page 43 and 44: up to € 4,500,000 through the iss
Page 45 and 46: or its Audit Committee for the audi
Page 47 and 48: product for PVC, which would result
Page 49 and 50: with supplies to joint customers. A
Page 51 and 52: 5% are projected for Russia’s GDP
Page 53 and 54: start-up losses incurred in Russia
Page 55 and 56: Political stock markets weigh on sh
Page 57 and 58: light of this fact, the Managing Bo
Page 59 and 60: Shareholder Structure Free float 41
Page 61 and 62: CONSOLIDATED FINANCIAL STATEMENTS A
Page 63 and 64: Equity and Liabilities Notes 31.12.
Page 65 and 66: A.S. Création Tapeten AG, Gummersb
Page 67 and 68: A.S. Création Tapeten AG, Gummersb
Page 69 and 70: of domestic and foreign companies i
Page 71 and 72: In accordance with IAS 21, foreign
Page 73 and 74: attributable cost but also the fact
Page 75 and 76: conditions, shorter useful lives re
Page 77 and 78: (2) Intangible fixed assets The tab
Page 79 and 80: (5) Other assets A breakdown of oth
Page 81 and 82: (8) Inventories Inventories compris
Page 83 and 84: As in the previous year, capital re
Page 85 and 86: (13) Other liabilities The breakdow
Page 87 and 88: The table below shows the changes i
Page 89 and 90:
administrative offence proceedings.
Page 91 and 92:
(21) Depreciation A breakdown of de
Page 93 and 94:
Complementary information (26) Cash
Page 95 and 96:
The table below shows a breakdown o
Page 97 and 98:
(31) Additional disclosures on fina
Page 99 and 100:
(34) Supervisory Board In FY 2011,
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on its website. The declaration of
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In our opinion, based on the findin
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PROFIT APPROPRIATION PROPOSAL Balan
Page 107 and 108:
Equity and Liabilities 31.12.2011 3
Page 109 and 110:
March 22, 2012 Analyst presentation
Page 111:
Cover photo: A fascinating microcos
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ANNUAL REPORT 2011 A.S. CRÉATION TAPETEN AG

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