100 % FUTURE - ALNO

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by EUR 7,320 thousand year-on-year, or 4.4 %. The decline in total assets was mainly due to lower
trade receivables in a year-on-year comparison. This also reflects the factoring that was introduced at
two subsidiaries. In overall terms, net financial debt relative to total assets fell from 63.3 % to 53.0 %.
ALNO AG’s equity in its single-entity (German Commercial Code/HGB) financial statements as of
December 31, 2010 amounted to EUR 31,279 thousand (previous year: EUR 30,993 thousand). The
increase in equity of EUR 286 thousand is due to the shareholders’ receivables waivers in an amount of
EUR 4,909 thousand, and the total of EUR 10,000 thousand of capital increases implemented in 2010,
which is offset by the net loss for the year. ALNO AG monitors changes in its equity on a monthly basis.
11. PENSION PROVISIONS
The ALNO Group’s employee pension scheme essentially rests on defined benefit pension commitments.
As a rule, period of service and pensionable compensation are the determinants of the
calculation of pensions. The commitments mentioned are measured on the basis of expert actuarial
opinions. The legal, economic and fiscal circumstances in the country concerned form the basis for
the opinions. The measurement parameters are consequently country-specific.
The provisions are valued according to the projected unit credit method pursuant to IAS 19, taking
future developments into account. In Germany, which, at over 99.9 % (previous year: 99.2 %),
constitutes the major part of the provision, a discounting rate of 5.4 % (previous year: 6.0 %) is used
as a base. Abroad, the discounting rate is 5.4 % (previous year: 5.8 %).
Existing commitments are measured in Germany with an increase in wages and salaries of 1.0 %
(previous year: 1.0 %), and an average increase in pensions of 1.0 % and 1.5 % respectively (previous
year: 1.0 % and 1.5 % respectively). No increase in wages and salaries is assumed abroad. The
average pension increase abroad is assumed to be 5,0 % (previous year: 5,0 %). Staff turnover is
ascertained on a company-by-company basis, and is calculated in Germany at 0.0 % and 1.0 %
respectively (previous year: 0.0 % and 1.0 % respectively). A staff turnover rate of 3.6 % is assumed
abroad (previous year: 3.6 %).
The expected return on plan assets is calculated with an interest rate of 4.2 % in Germany and 3.4 %
abroad (previous year: 4.5 % and 3.4 % respectively). The expected return on plan assets corresponds
to the average yield on the long-term investments on which the plan assets are based. There was
actual income on plan assets of EUR 140 thousand (previous year: expense of EUR 18 thousand).
Plan assets abroad are invested in the form of long-term life insurance; investment in plan assets in
Germany is handled centrally by Allianz Global Investors. The plan assets reported in the balance
sheet are not used by the company itself.
The following amounts were recognized in the consolidated income statement:
In EUR thousand 2010 2009
Current service costs 31 22
Interest expense 1,003 961
Expected return on plan assets – 43 – 41
991 942