The good prospects are based on the all-embracing ... - ALNO AG

2011 annual report

comPAny Profile
<strong>The</strong> ALNO Group is the second largest manufacturer of fitted kitchens in Germany and the fifth
largest in Europe. In addition to its headquarters in Pfullendorf (Baden-Württemberg), the company
operates production facilities at its locations in Brilon (North Rhine-Westphalia), Coswig (Sachsen-
Anhalt) and Enger (North Rhine-Westphalia), as well as in Dubai in the United Arab Emirates. <strong>The</strong>
ALNO Group has two subsidiaries in the United Kingdom and Switzerland and set up a third subsidiary
in the United States in early 2012. <strong>The</strong> company employs 1,845 men and women worldwide.
<strong>The</strong> traditional ALNO company developed from a carpentry shop named "Selbständige Schreinerei
Albert Nothdurf" and celebrates its 85th anniversary in 2012. From its small beginnings in Wangen
in 1927, the company grew to become an international kitchen furniture corporation with global
activities. Since 1960, the company has concentrated on the development, production and sale
of kitchen furniture, as well as on the sale of electrical appliances and accessories. ALNO began
its European and later worldwide expansion in 1969. Today, the company has around 6,000 trade
partners in 64 countries. Foreign sales currently account for around 26% of total sales.
ALNO sells kitchens in all price ranges <strong>based</strong> on its internationally recognized and diversified brand
structure. Quality, design and innovation <strong>are</strong> just as important as excellent value for money and high
customer benefit. <strong>The</strong> kitchens <strong>are</strong> marketed through trade partners representing RTA and self-service
markets, furniture stores, kitchen specialists and property development companies. ALNO enjoys a
very high level of brand recognition and sympathy due to its long tradition.

<strong>The</strong> Alno brAnds
<strong>The</strong> ALNO Group unites four distinctive individual brands under a common umbrella. Each brand successfully addresses
very different customer groups. Our brand portfolio has been revised in order to assure the Group's future success. We
consider it important to offer our customers and consumers innovative products through different sales channels and in
different price segments. <strong>The</strong> distinctions which we have won <strong>are</strong> an incentive spurring constant further improvement.
simultaneously stands for 85 years of tradition and innovation.
ALNO is also the Group's premium brand. It combines top quality with awardwinning
design. Being made-to-measure, ALNO kitchens offer the customer
an immense variety of design options, including kitchens without handles and
kitchens which appear to float, as well as perfect service.
communication
design
award
is characterized by variety, modern design and flexibility when
planning the kitchen. Simplicity, classic modernity and individual elegance <strong>are</strong>
the focal features. <strong>The</strong> new generation of kitchens from WELLmANN covers the
trendy consumer sector in the middle to upper price ranges and is characterized
by excellent value for money.
is the brand for quick kitchens which <strong>are</strong> completely ready for use,
anywhere in the country, within only a few working days. <strong>The</strong> brand offers a
fresh, attractively priced, minimalist design with a clear focus on logistics,
distribution and punctuality. ImPULS covers the lower to middle price ranges.
is the entry-level brand with compact, all-inclusive kitchens. <strong>The</strong> brand
is characterized by a fresh, modern and uncluttered design with strong, striking
colours. Pino kitchens concentrate on the RTA and self-service markets and
cover the lower price ranges.
product
design
award

Key figures
group financial figures year-on-year
Group financial figures (IFRS) 6.1.2012 1 2011 2010 2009 2008
Consolidated income statement
Sales revenue '000 EUR 452,810 467,297 493,373 511,204
Total operating revenues '000 EUR 459,962 472,366 496,109 525,443
EBITDA '000 EUR 5,204 986 17,272 19,266
EBIT '000 EUR –10,698 –11,118 –22,914 – 921
EBT '000 EUR – 25,216 – 12,178 – 39,201 – 14,964
Consolidated net profit/loss '000 EUR – 25,561 – 13,084 – 38,964 – 22,638
Earnings per sh<strong>are</strong> (diluted and undiluted) EUR – 1.04 – 0.78 – 2.46 – 1.44
Consolidated balance sheet
Non-current assets '000 EUR 86,455 86,598 85,295 109,921
Investments in property, plant and equipment '000 EUR 16,660 15,220 15,117 10,585
Liquid assets '000 EUR 2,243 3,041 2,857 3,174
Sh<strong>are</strong>holders' equity '000 EUR – 48,344 – 73,344 – 69,722 – 71,132 – 36,964
Subscribed capital '000 EUR 67,847 45,231 41,124 41,124
Total assets '000 EUR 159,670 157,698 165,026 198,243
Consolidated cash flow statement
Cash flow from operating activities '000 EUR – 3,261 11,540 21,210 – 17,108
Cash flow from investment activities '000 EUR – 17,138 – 14,300 – 15,967 – 10,581
Cash flow from financing activities '000 EUR 20,051 2,488 – 5,303 27,003
Change in cash and cash equival. due to business activities '000 EUR – 348 – 272 – 60 – 686
Employees
Employees as at 31 December 1,845 1,787 1,900 1,853
Year-average number of employees 1,806 1,840 1,885 2,010
Personnel expenses '000 EUR 98,529 97,900 98,539 102,871
Personnel expenses per employee on average for the year '000 EUR 55 53 52 51
Sales per employee on average for the year '000 EUR 251 254 262 254
1 Improved equity after adjustment for the EUR 25 million waived by a sh<strong>are</strong>holder on 6 January 2012 (excluding current earnings 2012)

Enthusiasm and passion
Consolidated finanCial statements | CHaPteR 3
We <strong>are</strong> driven by enthusiasm, performance and passion. they
form the basis underlying the fascinating kitchens developed by
the aLno Group for the past 85 years.
the quality standards expected of our products and services <strong>are</strong>
unsurpassed. We create value for our customers and convince
others through our commitment and sympathetic image.
our activities <strong>are</strong> ge<strong>are</strong>d to ensuring profitable growth and assuring
the company's long-term survival – in the interests of our customers,
employees and sh<strong>are</strong>holders.
Join us on our way into the future!

ContEnts
u 2 Company profile
u 3 the aLno brands
u 4 Group financial figures year-on-year
6 history
To our sh<strong>are</strong>holders
8 Letter from the Chief Executive officer
12 Board of management
14 Report of the supervisory Board
20 the aLno sh<strong>are</strong>
sINGle-eNTITY aNd GrouP MaNaGeMeNT rePorT
24 Economic report
44 Events after the reporting period
48 Risks / opportunities and future perspectives
52 other disclosures
CoNsolIdaTed fINaNCIal sTaTeMeNTs
62 Consolidated income statement
63 Consolidated statement of comprehensive income
64 Consolidated balance sheet
65 Consolidated cash flow statement
66 Consolidated statement of changes in equity
67 notes to the consolidated financial statements
123 auditor's report
124 declaration by statutory representatives
u 5 publishing data
u 5 Financial calendar 2012
5

6 histoRy
histoRy
1927
1927
Albert Nothdurft founds a carpenter's
shop under the name
"Selbstständige Schreinerei
Albert Nothdurft" in Wangen near
Göppingen.
1934
<strong>The</strong>se modest beginnings flourished
into a classical family-run company.
1956
Albert Nothdurft moves to Pfullendorf
in Baden and risks the transition
from a trade and manufacturing
firm to an industrial enterprise.
1957
In spring, the newly founded
company in Pfullendorf begins to
produce small kitchen furniture
units.
1958
<strong>The</strong> former carpenter's shop
becomes ALNO Möbelwerke GmbH
& Co. KG. <strong>The</strong> company's name
ALNO is derived from the name of
its founder Albert Nothdurft.
1960
<strong>The</strong> first fitted kitchens <strong>are</strong>
produced by ALNO. <strong>The</strong> company
grows strongly in the space of ten
years. Sales rise from EUR
2.5 million to EUR 35.2 million,
the workforce grows from 95 to
677 employees.
1969
<strong>The</strong> company expands to other
European countries. Subsidiaries
<strong>are</strong> set up in: France (1969),
Belgium (1970), Italy (1972),
Switzerland (1974), United Kingdom
(1980) and the Netherlands (1984).

1990
Introduction of the multi-brand
strategy. Impuls Küchen GmbH is
founded in Brilon (North Rhine-
Westphalia).
1992
ALNO Austria is founded.
1994
<strong>The</strong> multi-brand strategy is
extended. Introduction of the
PINO brand and foundation of the
company Pino Küchen GmbH in
Coswig (Sachsen-Anhalt).
1995
ALNO goes public (general
standard): ALNO Möbelwerke
GmbH & Co. KG becomes
ALNO AG.
2003
Merger with the Casawell Service
Group (Wellmann, Geba, Wellpac).
Focus on the core business;
non-kitchen interests <strong>are</strong> sold off.
Further extension of the multi-brand
strategy with the takeover of Gustav
Wellmann GmbH & Co. KG.
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<strong>The</strong> "ALNOSTAR SATINA" kitchen
wins the coveted reddot design
award, as well as the iF product
design award together with the
innovation "Edition Fly".
2011
Strategic reorientation of the ALNO
Group.
Introduction of a new product range
for WELLMANN <strong>based</strong> on the new
13 centimetre grid size.
histoRy
New jobs <strong>are</strong> created with the
establishment of a production line
for glass and ceramic fronts in
2005
Pfullendorf.
ALNO Middle East FZCO is set up
and a production facility opened in
Dubai (UAE).
2012
ALNO AG celebrates its 85th
anniversary.
2010
<strong>The</strong> subsidiaries in Austria, Belgium,
Spain, the Netherlands and Italy <strong>are</strong>
transformed into purely marketing
organizations.
2012
7

8 to ouR shaREhoLdERs | LEttER FRom thE ChiEF ExECutivE oFFiCER
LEttER FRom thE
ChiEF ExECutivE oFFiCER
<strong>The</strong> financial year 2011 was a turbulent year. 2011 was characterized by several decisive changes
in our operational business and in the management, including major strategic changes, the appoint-
ment of a complete new Board of Management and moving our headquarters from Düsseldorf back
to Pfullendorf. In the light of these facts, the financial year just ended was a year of major challenges
for ALNO AG and indisputably the most difficult in the company's 85-year history.
All in all, business by ALNO AG declined in 2011. Despite the considerable upswing experienced by
the German kitchen market in the year just ended, our sales dropped 3.1% to EUR 452.8 million.
Domestic sales declined by 2.5% to EUR 326.4 million, while foreign sales revenue dropped 4.7%
to EUR 126.4 million. This trend has now been halted.
In order to master today's challenges, it is important that the reasons underlying past developments
be analysed correctly. Particularly in the Enger plant, production problems in conjunction with the
introduction of a completely new product range led to lower sales in Germany. <strong>The</strong> situation was
compounded by an inappropriate price policy launched in 2010 with far-reaching consequences
for the development of sales and gross profit. Winding up no fewer than five subsidiaries abroad
and transforming them into marketing units likewise had a negative impact on export business. <strong>The</strong>
lacking market presence abroad inevitably resulted in lower sales.
Lower sales also impacted our operating result (EBIT), which dropped to EUR -10.7 million in
the financial year 2011, due above all to a price structure that was not in conformity with market
demands. In addition, the company also had to absorb higher material costs for the high-quality
ranges and higher prices by its suppliers. This had a corresponding impact on the earnings of ALNO
AG. As at 31 December 2011, we reported a consolidated loss of EUR 25.6 million.

to ouR shaREhoLdERs | LEttER FRom thE ChiEF ExECutivE oFFiCER
Max Müller
Chief Executive Officer of ALNO AG
" <strong>The</strong> <strong>good</strong> <strong>prospects</strong> <strong>are</strong>
<strong>based</strong> on the all-embracing,
award-winning product portfolio
of the ALNO Group."
Today, however, ALNO AG can look to the future optimistically again. Although 2011 was a dif-
ficult financial year, we did not lose sight of major investments in the future. Despite the cutbacks,
the company continued to invest in its four production facilities. In Pfullendorf, for example, the
company has installed a production line for glass fronts, thus significantly improving ALNO AG's
manufacturing competence.
With enormous technological and organizational effort, we introduced a new product range and the
new 13 centimetre grid size at the Enger plant. New machines were also purchased for the Brilon
and Coswig plants in 2011. All these efforts form the basis underlying ALNO AG's future orientation
as a profitable, value-adding company. Successful implementation of the restructuring agreement
II as per 31 December 2011 marked a major milestone in this direction.
Our focus clearly remains on entrepreneurial stability and sustainable growth so that we can continue
to operate as a traditional company with regional roots and provide jobs for many people in
the future, too. We <strong>are</strong> therefore looking forward to the financial year 2012 with optimism. All the
conditions for a return to higher sales and earnings have been met, both economically and within the
company. Despite the continuing euro and sovereign debt crisis, economists expect most European
markets to develop positively in 2012. <strong>The</strong> United States' recovery will gain in momentum and <strong>good</strong>
growth rates <strong>are</strong> once again predicted for Asia, albeit at lower levels than in the previous year.
9

10 to ouR shaREhoLdERs | LEttER FRom thE ChiEF ExECutivE oFFiCER
" A <strong>good</strong> investor invests in and for
the people who make up the company,
not against them."
A number of challenges indisputably remain. <strong>The</strong> new financial year has started out very pleasingly.
Where the most important ratios <strong>are</strong> concerned, we were able to boost sales by 8.9% to EUR 118.5
million in the first quarter. EBITDA rose to EUR +2.1 million and the operating result (EBIT) improved
to EUR -1.9 million, which once again proves that we <strong>are</strong> on the right track to making 2012 the
year in which the trend was reversed. This growth is primarily the result of higher export activity and
further optimizing the positioning of our four Group brands ALNO, WELLMANN, IMPULS and PINO.
<strong>The</strong> greatest increase in sales within the ALNO Group has been achieved by the ALNO brand, with
a rise of 23.5% over the same period in the previous year. ALNO's pleasing operating trend has also
continued in the second quarter of 2012. With business in our core market Germany developing
very well, the situation as regards orders from abroad is also favourable.
<strong>The</strong> signs have consequently been set for ALNO's future: EBITDA is expected to be positive for
2012 as a whole. We will continue to improve our profitability in the future, too and consequently
expect a further improvement in EBITDA in 2013.
<strong>The</strong>se <strong>good</strong> <strong>prospects</strong> <strong>are</strong> <strong>based</strong> on the all-embracing, award-winning product portfolio of the ALNO
Group and our highly motivated workforce. <strong>The</strong> continual and successful development of products
meeting customers' needs will also strengthen our position as innovation leader. <strong>The</strong> quality and
innovativeness of our kitchens <strong>are</strong> famous throughout the industry worldwide. So that we can make
our company less dependent on individual regional markets in a highly volatile market environment,
we will continue to expand our export business in particular. <strong>The</strong>se efforts, too, <strong>are</strong> beginning to
bear fruit. A subsidiary was founded in the United States at the end of March 2012, followed by the
inauguration of an ALNO studio in New York in May.
However, a company's positive financial and economic development always goes hand-in-hand with
a sustainable corporate culture. For this reason, first steps were taken in 2011 to give ALNO AG a
new corporate mission statement. Fair integration of our employees in their working environment
is a fundamental element of this new mission statement. Work and performance <strong>are</strong> interpreted as
comprehensively human as well as intelligent terms. I am firmly convinced that, in a free and humane

to ouR shaREhoLdERs | LEttER FRom thE ChiEF ExECutivE oFFiCER
economic system, companies <strong>are</strong> not only responsible for producing <strong>good</strong>s, but also for organizing
the work. What's more, it must be organized, firstly, so that as many people as possible can sh<strong>are</strong>
in the work process and, secondly, so that the values and standards determining everyday working
life also correspond with those on which society is <strong>based</strong>.
<strong>The</strong> entrepreneurial and economic success sought by ALNO means more than simply making invest-
ment worthwhile: it also means preserving and strengthening this company as a working "home" for
our employees. ALNO AG's success in the long term depends entirely on its motivated and highly
qualified employees. A <strong>good</strong> investor invests in and for the people who make up the company, not
against them. For us, it is therefore important to intensify the dialogue between the management
and our staff and to re-establish a close bond which, unfortunately, was sorely neglected in the past
years. Our aims for the future <strong>are</strong> twofold: on the one hand, economic profitability and on the other,
to be an employer for whom the social community is important so that every single employee can
play their part in contributing to the success of our economic undertaking.
Our thanks <strong>are</strong> therefore due, above all, to our employees who have not only contributed, with their
commitment and perseverance, to the successful implementation of our Group's reorganization
efforts, but without whom that reorganization would never have been possible. <strong>The</strong>y have ensured
that our partners in the retail trade and our end-customers continue to place their confidence in
the ALNO Group's products and continue to appreciate our quality, our reliability and our closeness
to the customer.
May we also express a warm thank you to the members of the works council, our sh<strong>are</strong>holders and
customers for their confidence in 2011.
We look forward to making 2012 a successful financial year in which we will make every possible
effort to restore ALNO to its former strength, together with you.
Best regards,
Max Müller
Chief Executive Officer of ALNO AG
11

12 to ouR shaREhoLdERs | BoaRd oF manaGEmEnt
BoaRd oF manaGEmEnt
ALNO AG has a new Board of Management since 1 November 2011.
Max Müller
Chief Executive Officer
since 6 April 2011
Max Müller was formerly sales and marketing manager of a company in the clockmaking industry, as well as managing
director of a medium-sized company group specializing in business with Eastern Europe and the USSR. As founder of
various enterprises and member of several corporations in a whole variety of sectors, Max Müller can draw on considerable
business experience. In addition to his position as Chief Executive Officer of ALNO AG, he has been chairman of
the supervisory board of two Swiss investment companies, Comco Holding AG and Starlet Investment AG, since 1993.
Before then, Max Müller was CEO of the Comco Group and Chairman of the Board of Adler Bekleidungswerke AG
& Co. KG. Both companies belonged to ASKO/Metro AG. Within the space of two years, he restored the ailing Adler
Bekleidungswerke AG & Co. KG and made it one of the most profitable mainstays of the ASKO Group.
IPeK deMIrTas
Chief Financial Officer
since 13 July 2011
After graduating in business administration, Ipek Demirtas first worked for the STINNES Group, then spent over ten years
at PricewaterhouseCoopers and seven years as managing director of Petroplus Mineralölprodukte Deutschland GmbH
and Marimpex Mineralöl-Handelsgesellschaft mbH. She subsequently became Chief Financial Officer of Environmental
Solutions Europe Holding B.V. (OTTO Group), Maastricht, and managing director of several subsidiaries of the OTTO
Group, where she was able to restructure strategic fields of business with great success. Ipek Demirtas joined ALNO
AG in January 2010 as manager of Group finance. Since July 2011, Ipek Demirtas has been Chief Financial Officer
responsible for finance/accounting, controlling, human resources/organization, IT and capital markets/special projects.
elMar duffNer
Chief Operations Officer
since 1 November 2011
Elmar Duffner joined ALNO AG on 1 November 2011 as Chief Operations Officer responsible for worldwide sales,
production, product development, marketing and corporate communication. A graduate in engineering science and
economic engineering, Elmar Duffner successfully served various companies as managing director, including the kitchen
manufacturer Optifit and Poggenpohl Möbelwerke GmbH, of which he became managing director in 2002. During his
period with Poggenpohl, he successfully continued the premium kitchen manufacturer's international expansion. Under
his leadership, the company grew at above-average rates with a consistently upward performance. Elmar Duffner has
been president of the German Furniture Industry Association since 2008 and is a member of the board of several other
industry associations.

To our sh<strong>are</strong>holders | Board of ManageMenT
max müllEr
Chief Executive Officer of ALNO AG
IPEK DEmIrTaS
Chief Financial Officer
Elmar DuffnEr
Chief Operations Officer
13

14 to ouR shaREhoLdERs | REpoRt oF thE supERvisoRy BoaRd
REpoRt oF thE supERvisoRy BoaRd
In the year under review, the Supervisory Board of ALNO
Aktiengesellschaft (ALNO AG) duly exercised the duties
and responsibilities incumbent upon it in accordance with
statutory regulations, the Articles of Incorporation and the
rules of procedure. It devoted its attention to the company's
position, continuously monitoring and advising the
Board of Management in the process.
<strong>The</strong> Board of Management provided the Supervisory Board
with regular, timely and comprehensive written and oral
reports on all aspects of fundamental significance for the
Group. Above all, the Supervisory Board discussed the
Board of Management's reorganization plans, the corporate
planning, ongoing development of business, the company's
strategic further development, its risk position and its risk
management. We were kept abreast of individual developments
diverging from the planning by the Board of Manage-
heNNING GIeseCKe
Chairman of the Supervisory Board
ment. <strong>The</strong> company's strategic orientation was coordinated
with the Supervisory Board and the Board of Management
reported regularly on the progress made in implementing
the strategy. <strong>The</strong> Supervisory Board was involved in all
decisions from an early stage onwards.
Outside of these meetings, the Chief Executive Officer
also regularly informed the Chairman of the Supervisory
Board with regard to the company's current position and
development, its risk position and other significant developments.
All developments requiring the consent of the Supervisory
Board in accordance with statutory regulations, the
Articles of Incorporation and the rules of procedure were
also considered and decided by the Supervisory Board.
It also considered individual transactions of importance.

In response to enquiries by the Supervisory Board or by
the Chairman of the Supervisory Board, and at various
meetings, the Board of Management and the auditor also
reported on any risks affecting the net assets, financial
position and results of operations of the individual ALNO
Group companies, as well as on the action taken to coun-
ter these in 2011. Second-tier management executives
were also consulted on specific topics.
<strong>The</strong> collaboration between Supervisory Board and Board
of Management was characterized by intensive and open
communication.
MeeTINGs of <strong>The</strong> suPervIsorY Board
<strong>The</strong> Supervisory Board met on five occasions in the financial
year 2011. Eleven telephone conferences were held
additionally. <strong>The</strong> Supervisory Board was also convened to
two extraordinary meetings held in the form of a telephone
conference. All members of the Supervisory Board were
able to attend more than half the meetings.
<strong>The</strong>re were no conflicts of interest to be disclosed to the
Supervisory Board and with regard to which the sh<strong>are</strong>holders'
meeting must be informed.
MaIN asPeCTs CoNsIdered BY <strong>The</strong> suPervIsorY
Board aT ITs MeeTINGs
<strong>The</strong> Supervisory Board regularly met to discuss the company's
current market situation and development, as
well as to consistently check and monitor the company's
net assets, financial position and liquidity, as well as the
Group's strategic orientation.
<strong>The</strong> Board of Management presented its corporate planning
for the financial year 2011 at the Supervisory Board
meeting on 11 January 2011. After intensive debate and
checking, the Supervisory Board approved the corporate
planning presented for the financial year 2011. In addition,
the Supervisory Board was also informed of the progress
made with regard to the financial activities. <strong>The</strong> Board of
Management also gave a detailed presentation of the sales
division.
to ouR shaREhoLdERs | REpoRt oF thE supERvisoRy BoaRd
<strong>The</strong> purpose of the telephone conference on 3 March 2011
was to approve the Board of Management's resolution
of the same date defining the total volume of the capital
increase resumed by the Board of Management on 10
February 2011 with the approval of the Supervisory Board
and the resultant amendment required in the Articles of
Association. <strong>The</strong> Supervisory Board approved the resolution
after considering it in detail.
At an extraordinary telephone conference on 6 April 2011,
the Supervisory Board cancelled Mr. Jörg Deisel's appointment
as CEO and decided to terminate his service contract
with immediate effect for <strong>good</strong> cause. It was also
decided to cancel the appointment of Mr. Michael Paterka
as member of the Board of Management, not to renew his
service contract and to relieve Mr. Michael Paterka of his
duties. <strong>The</strong> Supervisory Board also considered the new
appointment to the Board of Management proposed by
the Presidial Committee. <strong>The</strong> Supervisory Board appointed
Mr. Max Müller as Chief Executive Officer of ALNO AG with
immediate effect. Mr. Christoph Fughe was also appointed
member of the Board of Management with immediate
effect.
At the meeting on 14 April 2011, the Supervisory Board
was informed of the provisional financial statements of
ALNO AG as at 31 December 2010, as well as with regard
to the provisional consolidated financial statements of the
ALNO Group as at 31 December 2010. <strong>The</strong> Board of
Management reported on the development of business
up to March 2011, as well as on other developments of
importance. <strong>The</strong> Board of Management also presented a
plan of action to improve performance in the financial year
2011. Finally, the statement by PricewaterhouseCoopers
concerning the company's reorganization was also presented
and discussed.
<strong>The</strong> agreement with Mr. Michael Paterka concerning an
employee termination payment was considered at length
at the Supervisory Board meeting held on 9 May 2011 in
the form of a telephone conference. <strong>The</strong> resolution proposed
by the Presidial Committee was adopted by the
Supervisory Board.
On 30 May 2011, the Supervisory Board consulted by
telephone to adopt a resolution. <strong>The</strong> annual financial statements
of ALNO AG as at 31 December 2010 and the
15

16 to ouR shaREhoLdERs | REpoRt oF thE supERvisoRy BoaRd
consolidated financial statements of the ALNO Group as at
31 December 2010 were discussed and individual balance
sheet items considered in detail by the Supervisory Board
together with the auditors from Ernst & Young GmbH
of Ravensburg. All the annual financial statements were
scrutinized to ensure their expediency and conformity with
statutory requirements. All questions were answered satisfactorily
and in detail by the Board of Management and
auditors. In addition, the Audit Committee reported on the
results of its audit and proposed that the financial statements
prep<strong>are</strong>d and presented for ALNO AG be approved,
together with the consolidated financial statements of the
ALNO Group. Both the financial statements of ALNO AG
and the consolidated financial statements were subsequently
approved by the Supervisory Board. <strong>The</strong> annual
financial statements were thus adopted. At the recommendation
of the Audit Committee, the Supervisory Board
decided to propose to the Annual General Meeting that
Ernst & Young GmbH, Wirtschaftsprüfungsgesellschaft,
Ravensburg, be re-elected as auditor for the financial year
2011, too. <strong>The</strong> report of the Supervisory Board and the
joint Corporate Governance report were then discussed
and approved. <strong>The</strong> meeting also considered the agenda
of the Annual General Meeting, including the proposed
resolutions to be adopted. In addition, it considered the
possibility of transferring the company's headquarters to
Pfullendorf. It was decided to include the move to new
headquarters in the agenda of the Annual General Meeting.
<strong>The</strong> agenda for the Annual General Meeting 2011 was then
adopted. <strong>The</strong> Board of Management additionally informed
the Supervisory Board of the executive board comprising
the Board of Management and the managing directors of
the German subsidiaries for which rules of procedure were
proposed to the Supervisory Board. At the same time, the
Supervisory Board also discussed a proposal to amend
the rules of procedure for the Board of Management. <strong>The</strong>
amended rules of procedure for the executive management
and for the Board of Management were adopted.
On 13 July 2011, the Supervisory Board met again for
an extraordinary meeting by telephone. <strong>The</strong> agenda concerned
a further change in the Board of Management of
ALNO AG. <strong>The</strong> Supervisory Board decided to dismiss Mr.
Jörg Artmann as CEO of ALNO AG. It also decided not
to renew the service agreement concluded with Mr. Jörg
Artmann, to terminate it as a precautionary measure and
to relieve Mr. Jörg Artmann of his duties. Ms. Ipek Demirtas
was appointed as a new member of the Board of Management
effective 14 July 2011.
<strong>The</strong> new members of the Supervisory Board were introduced
at the meeting immediately following the Annual
General Meeting on 14 July 2011. <strong>The</strong> Annual General
Meeting elected Ms. Ruth Falise-Grauer and Mr. Norbert
Orth to the Supervisory Board as sh<strong>are</strong>holder representatives.
<strong>The</strong> Supervisory Board's committees were also
discussed. <strong>The</strong> Supervisory Board decided to rename the
Presidial Committee "Strategy and Presidial Committee".
This committee will continue to exercise the responsibilities
of the Presidial Committee in future. <strong>The</strong> Strategy and
Presidial Committee's other responsibilities were also considered.
In conjunction with renaming and extending the
responsibilities of the Strategy and Presidial Committee,
the Supervisory Board's rules of procedure as regards the
responsibilities of the Strategy and Presidial Committee
were amended and adopted by the Supervisory Board.
<strong>The</strong> Supervisory Board also decided to appoint Mr. Elmar
Duffner as a member of the company's Board of Management
effective as from commencement of his service
for the company. In addition, the Board of Management
reported on the development of business by ALNO AG
and the ALNO Group as per June 2011. <strong>The</strong> current progress
made in the financing process and the restructuring
agreement II were also considered. During the meeting,
the Supervisory Board also discussed the implications of
retaining management consultants associated with Mr.
Max Müller. Related persons and companies <strong>are</strong> disclosed
in Section I.
During a telephone conference on 16 August 2011 the
Supervisory Board approved the conclusion of a loan
agreement between ALNO AG as borrower and Comco
Holding AG of Nidau, Switzerland, as lender.
At a Supervisory Board meeting held by telephone on 31
August 2011, the Board of Management discussed the
mid-year financial statements 2011 with the Supervisory
Board and reported on current business developments.

On 30 September 2011, the Supervisory Board met for
an ordinary meeting. This meeting primarily considered
planning security in conjunction with corporate planning.
<strong>The</strong> Board of Management also reported on current business
developments and major transactions. <strong>The</strong> Board
of Management also proposed an allocation of business
<strong>are</strong>as before and after the arrival of Mr. Elmar Duffner to the
Supervisory Board. <strong>The</strong> Supervisory Board approved the
planned allocation of duties. <strong>The</strong> company's organization
was also discussed in this context. In addition, the joint
declaration by the Board of Management and Supervisory
Board concerning the recommendations of the German
Corporate Governance Code within the meaning of Section
161 Stock Companies Act (AktG) was also discussed
and adopted. <strong>The</strong> current status of proceedings against
Mr. Jörg Deisel was presented and considered by the
Supervisory Board.
Among other things, the Supervisory Board meeting held
by telephone on 16 November 2011 considered a corporate
borrowing agreement between Comco Holding
AG and ALNO (Switzerland) AG. <strong>The</strong> proposed resolution
concerned Mr. Max Müller's assignment as member of the
supervisory board of ALNO (Switzerland) AG. <strong>The</strong> subject
was considered by the Supervisory Board in detail before
a resolution was adopted as regards the form of the borrowing.
<strong>The</strong> Board of Management presented its corporate planning
for the financial year 2012 at the Supervisory Board
meeting on 16 December 2011. After intensive debate and
checking, the Supervisory Board approved the corporate
planning presented for the financial year 2012. <strong>The</strong> Board
of Management also reported on the development of business
as per November 2011, as well as on the results of an
analysis of all German production facilities. A new liquidity
and financial concept was also presented by the Board of
Management.
This liquidity and financial concept was the main topic
considered in a telephone conference on 23 December
2011. <strong>The</strong> Board of Management discussed the concept
in detail with the Supervisory Board. Above all, they discussed
the loan extended to ALNO AG by Comco Holding
AG and implementation of the restructuring agreement II.
<strong>The</strong> Supervisory Board approved the liquidity and financial
concept presented, and consequently also the loan
extended to ALNO AG by Comco Holding AG.
to ouR shaREhoLdERs | REpoRt oF thE supERvisoRy BoaRd
In addition to the telephone conferences mentioned above,
the Supervisory Board also held four more telephone
meetings in the financial year 2011. <strong>The</strong>se meetings were
devoted to preparing the capital increase, the mid-year
financial report and the annual financial statements.
<strong>The</strong> efficiency of the Supervisory Board's activities was
not verified in the year under review. An efficiency review
is planned for the financial year 2012.
WorK IN <strong>The</strong> CoMMITTees
<strong>The</strong> Supervisory Board has set up various committees to
ensure that its responsibilities <strong>are</strong> discharged efficiently.
Prior to the Annual General Meeting on 14 July 2011,
these were the Audit Committee and the Presidial Committee.
After the Annual General Meeting, the Presidial
Committee was renamed Strategy and Presidial Committee.
<strong>The</strong> Audit Committee met on 30 May 2011. This meeting
considered and discussed the financial statements of the
company and the Group, including the single-entity and
group management report, as well as the auditor's retainer
(including fees). <strong>The</strong> further debate over the annual financial
statements 2010 focussed on an assessment of the
company's continuation as a going concern, including the
expert appraisal drafted by PricewaterhouseCoopers. <strong>The</strong>
Supervisory Board also considered the recommendation
presented for adoption concerning the auditor for 2011. In
addition, the members of the Audit Committee also consulted
by email and by telephone on individual aspects
of the accounting process, preparation of the separate
and consolidated financial statements, preparation of the
management report and mid-year financial report.
<strong>The</strong> Presidial Committee met three times in the financial
year 2011.
At the meeting on 6 April 2011, the Presidial Committee
considered at length the immediate termination for <strong>good</strong>
cause of the service agreement concluded with Mr. Jörg
Deisel. Non-renewal of the service agreement concluded
with Mr. Michael Paterka and his suspension from duty
were likewise considered by the Presidial Committee.
17

18 to ouR shaREhoLdERs | REpoRt oF thE supERvisoRy BoaRd
It decided to present corresponding decision papers to the
Supervisory Board for a subsequent vote.
At a telephone conference on 9 May 2011, the Presidial
Committee discussed an agreement with Mr. Michael
Paterka concerning an employee termination payment
which it then presented to the Supervisory Board for consideration
in the immediately following meeting.
During a telephone conference on 13 July 2011, the Presidial
Committee discussed Mr. Jörg Artmann's dismissal as
CEO with immediate effect. It also considered non-renewal
of the service agreement, its termination as a precautionary
measure and Mr. Jörg Artmann's suspension from duty. <strong>The</strong>
Committee also considered Ms. Ipek Demirtas' appointment
as member of the Board of Management of ALNO AG effective
14 July 2011. Corresponding proposals were presented
to the Supervisory Board at the immediately following meeting
and adopted by the Supervisory Board.
After the Annual General Meeting on 14 July 2011, the
Presidial Committee was renamed Strategy and Presidial
Committee. <strong>The</strong> Strategy and Presidial Committee met
six more times in the year under review. <strong>The</strong> Committee's
consultations focused on the development of business,
the company's liquidity and a plan of action to improve
performance in the financial year 2011.
fINaNCIal sTaTeMeNTs of <strong>The</strong> CoMPaNY aNd <strong>The</strong>
GrouP
Ernst & Young GmbH, Wirtschaftsprüfungsgesellschaft,
Ravensburg, audited the 2011 annual financial statements
of ALNO AG according to the rules of the German Commercial
Code (HGB), as well as the consolidated financial
statements of ALNO AG according to International Financial
Reporting Standards, and the single-entity and group
management report; they consequently met with the full
approval of the auditors.
<strong>The</strong> auditors confirmed that the Board of Management has
established an efficient risk management system in compliance
with the statutory requirements, as well as an internal
control system.
<strong>The</strong> statements to be audited and the auditor's report
were received by all members of the Supervisory Board
in <strong>good</strong> time. <strong>The</strong> statements to be audited and the auditor's
report were considered in detail at the meeting of the
Audit Committee on 11 June 2012. <strong>The</strong> Supervisory Board
received detailed information on the financial statements of
ALNO AG and on the consolidated financial statements of
the ALNO Group at its meeting on 12 June 2012. At both
meetings, the auditors reported on the main findings of their
audit, answered the Board's questions and provided any
additional information required. After detailed consideration
and on the basis of its own checks, the Supervisory Board
concurred with the auditors' findings on the annual and
consolidated financial statements. Following the conclusive
outcome of its own checks, the Supervisory Board has no
complaints against either the separate annual financial
statements or the consolidated financial statements. <strong>The</strong>
Supervisory Board approved the annual financial statements
prep<strong>are</strong>d by the Board of Management and the single-entity
and group management report, for the financial year 2011
at its telephone conference on 12 June 2012. <strong>The</strong> annual
financial statements <strong>are</strong> thus adopted. <strong>The</strong> Supervisory
Board also approved the consolidated financial statements
and Group management report prep<strong>are</strong>d by the Board of
Management according to International Financial Reporting
Standards for the financial year 2011.
rePorT oN CoNTrolled CoMPaNIes
<strong>The</strong> Board of Management prep<strong>are</strong>d its report on the company's
relations with affiliated companies and presented it
to the Supervisory Board together with the auditor's report
on this subject.
<strong>The</strong> auditors issued the following unqualified certificate:
"After having duly performed our audit, we confirm that
1. the actual information included in the report is correct;
2. for the legal transactions indicated in the report the company’s
consideration was not inappropriately high."
<strong>The</strong> auditors attended the Supervisory Board's deliberations
on the report concerning relations with affiliated companies
and reported on the essential findings of their audit.
<strong>The</strong> Supervisory Board's checks of both the Board of
Management's report and the auditor's report did not give
rise to any objections; the Supervisory Board concurs with
the auditor's findings. Following the definitive results of the

Supervisory Board's checks, the Supervisory Board has no
objections to the Board of Management's declaration at the
end of the report concerning relations between ALNO AG
and affiliated companies.
CorPoraTe GoverNaNCe
In the financial year just ended, the Supervisory Board also
considered the further development of corporate governance
principles in the ALNO Group, with due regard for the
German Corporate Governance Code in the version dated
26 May 2010.
<strong>The</strong> report of the Board of Management and Supervisory
Board on corporate governance by ALNO AG can be found
in conjunction with the management declaration on pages
52 onwards. On 30 September 2011, the Board of Management
and Supervisory Board published a new declaration
of compliance in respect of the recommendations of the
"Government Commission on the German Corporate Governance
Code" as required by Section 161 of the Stock
Companies Act (AktG). This declaration can be found on
pages 52 onwards in this Annual Report and is permanently
accessible to sh<strong>are</strong>holders via the website www.alno.de.
ChaNGes IN <strong>The</strong> Board of MaNaGeMeNT aNd
suPervIsorY Board
Mr. Armin Weiland gave notice in a letter dated 6 June
2011 that he would resign his mandate in the Supervisory
Board of ALNO AG effective from the end of the Annual
General Meeting on 14 July 2011. Mr. Christoph Maass
likewise gave notice in a letter dated 30 May 2011 that
he would resign his mandate in the Supervisory Board of
ALNO AG effective from the end of the Annual General
Meeting on 14 July 2011. At the Annual General Meeting on
14 July 2011, Ms. Ruth Falise-Grauer and Mr. Norbert Orth
were elected to the Supervisory Board as new members
representing the sh<strong>are</strong>holders.
<strong>The</strong> Supervisory Board thanks the retired members for their
work and their commitment.
At the extraordinary Supervisory Board meeting on 6
April 2011, Mr. Jörg Deisel and Mr. Michael Paterka were
dismissed from the Board of Management of ALNO AG.
to ouR shaREhoLdERs | REpoRt oF thE supERvisoRy BoaRd
<strong>The</strong> Supervisory Board appointed Mr. Max Müller as Chief
Executive Officer (CEO) of ALNO AG with immediate effect.
Mr. Müller has been chairman of the supervisory board of
Comco Holding AG and Starlet Investment AG since 1993.
Mr. Christoph Fughe was also appointed member of the
Board for sales and marketing with immediate effect. Before
his appointment, Mr. Christoph Fughe worked for ALNO AG
as Manager Group Sales.
At an extraordinary meeting on 13 July 2011, the Supervisory
Board cancelled the appointment of Mr. Jörg Artmann
as member of the Board of Management of ALNO AG with
immediate effect and relieved him of his contractual duties.
<strong>The</strong> Supervisory Board appointed Ms. Ipek Demirtas Chief
Financial Officer (CFO) effective 14 July 2011.
At the Supervisory Board meeting on 14 July 2011, the
Supervisory Board appointed Mr. Elmar Duffner as member
of the company's Board of Management effective as
from commencement of his service for the company. His
appointment to the Board of Management became effective
on joining ALNO AG on 1 November 2011.
<strong>The</strong> following changes to the Board of Management took
place after the end of the year under review: On 17 February
2012, the Supervisory Board revoked Mr. Christoph
Fughe's appointment to the Board of Management of ALNO
AG effective 29 February 2012. Mr. Christoph Fughe was
relieved of his duties as a Board member, but continued
to serve the company as an adviser. Mr. Christoph Fughe
retired from the company on 31 May 2012.
<strong>The</strong> Supervisory Board wishes to thank the Board of Management
and all employees of the ALNO Group companies
for their efforts and great personal commitment in the financial
year 2011.
Pfullendorf, 12 June 2012
Supervisory Board
Henning Giesecke
Chairman of the Supervisory Board
19

20 to ouR shaREhoLdERs | aLno shaREs
thE aLno shaRE
alNo (fraNKfurT) 4.1.11 – 31.12.11, in EUR
3.5
3.0
2.5
2.0
1.5
1.0
0.5
Jan. Feb. March Apr. May June July Aug. Sept. Oct. Nov. Dec.
<strong>The</strong> stock market in 2011 was unable to continue where
the previous year left off. As on the other major European
markets, German stock market prices declined considerably
from August onwards, after a prolonged sideways movement.
<strong>The</strong> German DAX index and the second-tier SDAX
index both ended the year with a drop of around 15%. <strong>The</strong>
ALNO sh<strong>are</strong> started the year on the Xetra electronic trading
platform at EUR 2.92, reaching their highest value of the
year on 3 March, with EUR 3.45. <strong>The</strong> sh<strong>are</strong>s lost value during
the rest of the year, reaching their year low of EUR 1.40
on 16 December. By year-end, our sh<strong>are</strong> price had declined
by almost 50% to EUR 1.47 on 30 December. ALNO AG's
market capitalization totalled EUR 38.4 million at year-end.
BasIC fIGures | as Per 31 deCeMBer 2011
German Securities Identification
Number (WKN) 778 840
ISIN DE 0007788408
Stock exchange code ANO
Transp<strong>are</strong>ncy level
(market segment)
Stock exchanges
General standard
(regulated market)
Regulated market: Frankfurt
(general standard), Stuttgart;
free trading: Berlin, Munich,
Düsseldorf
Type of sh<strong>are</strong>s No-par-value ordinary be<strong>are</strong>r
sh<strong>are</strong>s
Initial listing 27 July 1995
Sh<strong>are</strong> capital at 31.12.2011 67,846,945.40
Number of sh<strong>are</strong>s at 31.12.2011 26,094,979
PerforMaNCe daTa of <strong>The</strong> sh<strong>are</strong>s
Closing price on 30.12.2010* EUR 3.01
Closing price on 30.12.2011* EUR 1.47
Percentage change –51.2%
Year high* EUR 3.45
Year low* EUR 1.40
* Basis: Xetra electronic trading platform

CaPITalIZaTIoN aNd sh<strong>are</strong>holder sTruCTure
<strong>The</strong> sh<strong>are</strong>holder structure of ALNO AG changed significantly,
most recently in conjunction with the capitalization measures
in March 2011. As a result of the capital increase with subscription
right which was completed on 3 March, 8,698,326
new sh<strong>are</strong>s were issued in return for cash contributions, yielding
gross proceeds in the amount of EUR 26.1 million for the
company. <strong>The</strong> sh<strong>are</strong> capital rose by EUR 22,615,647.60 to
EUR 67,846,945.40. Sh<strong>are</strong>holders exercising their subscription
right took up around 700,000 sh<strong>are</strong>s; of the remaining
roughly eight million new sh<strong>are</strong>s, 99.6% were issued to institutional
investors and 0.4% to private investors.
Free-floated stock increased from 8.8% to over 40% in
conjunction with the capital increase. <strong>The</strong> sh<strong>are</strong>s' liquidity
increased strongly as a result.
In conjunction with a Standstill and Sh<strong>are</strong>holder Agreement
in the financial year 2006, IRE Beteiligungs GmbH granted
Küchen Holding GmbH power of attorney to exercise the voting
rights belonging to the sh<strong>are</strong>s held by IRE Beteiligungs
GmbH at the discretion of Küchen Holding GmbH. Pursuant
to Section 22 (1), first sentence, No. 1 of the German Securities
Trading Act (WpHG), the voting rights of IRE Beteiligungs
GmbH must be ascribed to Bauknecht Hausgeräte GmbH.
Pursuant to Section 22 (1), first sentence, No. 1 of the German
Securities Trading Act (WpHG), the voting rights of Bauknecht
Hausgeräte GmbH must be ascribed to Whirlpool Greater
China Inc., Benton Harbor, Michigan / USA.
<strong>The</strong> voting agreement between IRE Beteiligungs GmbH and
Küchen Holding GmbH was terminated on 30 January 2012.
This was reported by Küchen Holding GmbH on 2 February
2012.
sh<strong>are</strong>holder sTruCTure of alNo aG |
as Per 11 JuNe 2012
41.96% Free float
3.90% Erster Privater Investmentclub Börsebius
Zentral (GbR)
18.81% IRE Beteiligungs GmbH
35.33% Küchen Holding GmbH
100 %
100 %
dIreCTor’s dealINGs
to ouR shaREhoLdERs | aLno shaREs
<strong>The</strong> following notifiable sh<strong>are</strong> dealings by executives were
reported in the financial year 2011, as required by Section
15a of the German Securities Trading Act (WpHG):
daTe
NoTIfYING
PersoN
NuMBer
of
sh<strong>are</strong>s
TYPe of
TraNsaCTIoN
voluMe
IN eur
3.3.2011 Armin Weiland 40,000 Purchase 120,000
3.3.2011
2.3.2011
Dr. Jürgen
Diegruber 40,000 Purchase 120,000
Henning
Giesecke/
HB conbet
GmbH 50,000
2.3.2011 Jörg Deisel 100,000
2.3.2011 Jörg Artmann 66,666
2.3.2011
Michael
Paterka 33,335
Purchase/
allotment
from capital
increase 150,000
Purchase/
allotment
from capital
increase 300,000
Purchase/
allotment
from capital
increase 199,998
Purchase/
allotment
from capital
increase 100,002
<strong>The</strong>re were no transactions after the end of the reporting
period.
INvesTor relaTIoNs
In addition to the ad-hoc reports required by law, supplementary
corporate news bulletins were also published in
order to provide all capital market participants with timely
and detailed information on current events and developments
wherever possible. <strong>The</strong> company also published
regular reports on the development of business, as well
as detailed financial and interim reports on the individual
quarters in both German and English.
21

22
Consolidated finanCial statements | CHaPteR

Consolidated finanCial statements | CHaPteR 23
sinGLE-Entity and
GRoup manaGEmEnt REpoRt
24 Economic report
44 Events after the reporting period
48 Risks / opportunities and future perspectives
52 other disclosures

24 sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
sinGLE-Entity and
GRoup manaGEmEnt REpoRt
of alNo aKTIeNGesellsChafT, PfulleNdorf,
for <strong>The</strong> fINaNCIal Year 2011
Economic report
I. GrouP sTruCTure aNd BusINess
<strong>The</strong> ALNO Group develops, builds and sells kitchen furni-
ture and accessories for the German market and for export
worldwide. <strong>The</strong> p<strong>are</strong>nt company ALNO AG, Pfullendorf,
acts as holding company with central administration func-
tions and operates the production facility in Pfullendorf, as
well as the sales division. <strong>The</strong> ALNO Group comprises 16
active individual companies altogether. In July 2011, the
company's headquarters moved from Düsseldorf to the
former location in Pfullendorf (Baden-Württemberg).
Since the ALNO Group unites four different brands under
a single umbrella, the Group can cover all price segments
from the entry level to the premium level. With its brands
ALNO, WELLMANN, IMPULS and PINO, the Group is one
of the biggest manufacturers of kitchen furniture worldwide.
<strong>The</strong> ALNO Group is currently the second largest manufacturer
in Germany and ranks fifth in Europe.
Each of the four German production facilities has its own
product portfolio. Kitchens for the ALNO brand <strong>are</strong> developed
and built in Pfullendorf, while the plant in Enger,
North Rhine-Westphalia, produces the WELLMANN range.
<strong>The</strong> IMPULS and PINO brands <strong>are</strong> produced in Brilon
(North Rhine-Westphalia) and Coswig (Sachsen-Anhalt),
respectively.
Germany and Western Europe <strong>are</strong> the most important
sales markets for the ALNO Group. However, the company
also has more than 6,000 trade partners in 64 countries
who <strong>are</strong> served through a centrally managed export sales
department. In the United Kingdom and Switzerland,
the ALNO Group has own marketing companies which
<strong>are</strong> combined under the subsidiary ALNO International
GmbH with head office in Pfullendorf. <strong>The</strong> ALNO Group is
becoming more important in Asia, the United States and
the United Arab Emirates. After the end of the period under
review, ALNO AG founded its own US marketing company
<strong>based</strong> in New York.
In spring 2011, it was decided to close the foreign subsidiary
ALNO France S.A.R.L. in Cagnes-sur-Mer, France. In
November 2011, EuroSet Küchentechnik GmbH with its
base in Enger was renamed ALNO Trading GmbH, also
<strong>based</strong> in Enger. <strong>The</strong> company trades in and sells household
appliances, fitted appliances, accessories and merchandise,
but no kitchen furniture.
<strong>The</strong> Dubai location specializes on project business in the
Gulf region, for which it builds and sells kitchen furniture to
regional specifications. 50% of the sh<strong>are</strong>s in the regional
company ALNO Middle East FZCO, Dubai, United Arab
Emirates, <strong>are</strong> held by ALNO AG, and the other 50% by Al
Khayyat Investments LLC, Dubai, United Arab emirates.
II. GrouP MaNaGeMeNT
<strong>The</strong> Group's business activities <strong>are</strong> measured on the basis
of sales and value metrics. Within the year, the individual
Group entities <strong>are</strong> managed on a monthly basis, but also
on a weekly and daily basis, through continual variance
analyses to determine any divergence from budgeted figures
and previous year's values in all key operational <strong>are</strong>as.
In addition to ratios measuring the efficiency of sales, production,
quality and specific functions, the most important
individual indicators used at the segment level include
contribution accounting, unit performance accounting and
sales figures expressed in numbers of cabinet units. Cost
centres and cost categories <strong>are</strong> monitored and analysed
separately at a higher level of aggregation. <strong>The</strong> quality of
the product range and business processes is monitored
and assured by quality management <strong>based</strong> on DIN EN ISO
9001. All production companies in the ALNO Group <strong>are</strong>
certified companies subject to continuous external auditing
by various institutes.

structure of the aLno Group
as aT 31 deCeMBer 2011
94 %
94 %
0.07 %
94.74 %
100 %
100 %
Zweitmarkenholding
Impuls Pino GmbH Pfullendorf
Impuls Küchen GmbH
Brilon
Pino Küchen GmbH
Coswig (Anhalt)
Casawell Service GmbH
Enger
Gustav Wellmann GmbH & Co. KG
Enger
GVG tielsa Küchen GmbH & Co. KG
Enger
ALNO Trading GmbH
Enger
Wellmann Bauteile GmbH
Enger
TIGNARIS Bet.gesellschaft mbH
& Co. Objekt Pfullendorf KG
Grünwald
MINERVA Grundstücks-Vermietungsgesellschaft
mbH & Co.
Objekt Pfullendorf OHG Grünwald
sinGLE-Entity and GRoup manaGEmEnt REpoRt | stRuCtuRE oF thE aLno GRoup
100 %
6 %
6 %
100 %
99.93 %
5.26 %
100 %
100 %
aLno aG
50 %
100 %
100 %
ALNO Middle East FZCO
Dubai (UAE)
ALNO USA Kitchen Cabinets Inc.
New Castle/Delaw<strong>are</strong> (USA) (inactive)
ALNO International GmbH
Pfullendorf
ALNO France S.A.R.L.
Cagnes-sur-Mer (F) (in liquidation)
ALNO (Schweiz) AG
Embrach (CH)
ALNO UK Ltd.
Dewsbury (GB)
Wellmann-Polska sp.z.o.o. (PL)
(in liquidation)
100 %
100 %
100 %
100 %
25

26
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
III. huMaN resourCes
Qualified and highly motivated employees (m/f) <strong>are</strong> the
key to successful implementation of the ALNO Group's
strategy and growth targets. <strong>The</strong> organization of work is
<strong>based</strong> on a spirit of openness and mutual respect and
fairness. Performance is rewarded through profit-oriented
remuneration systems and opportunities for personal
development.
Based on the tradition of the company, the ALNO Group
focuses on new aspects as regards values and particularly
corporate culture. Respect, confidence and openness <strong>are</strong>
essential to a successful and thriving corporate culture.
Our employees (m/f) therefore play a decisive part in the
company's development. Moreover, the ALNO Group sees
its employees (m/f) as sources of know-how requiring
encouragement, but also challenges. Confidence in our
employees (m/f) is a matter of fundamental importance,
as is open communication and the willingness to assign
responsibility to the employees (m/f).
In the financial year 2011, the ALNO Group set out to
develop a new mission statement actively incorporating
our employees (m/f). <strong>The</strong> new vision clearly demonstrates
the importance of our employees (m/f), for it is the third
pillar on which the success of the ALNO Group is <strong>based</strong>,
along with the company's tradition and experience.
<strong>The</strong> new mission statement therefore addresses our
employees (m/f) in particular. <strong>The</strong> following aspects were
developed in the course of four workshops attended by
more than 50 people altogether:
• Our employees (m/f) contribute to our success. Every
single person is important.
• <strong>The</strong>y <strong>are</strong> highly qualified, motivated and characterized by
a high level of personal initiative.
• Specifically targeted further development prep<strong>are</strong>s our
employees (m/f) for the future.
• <strong>The</strong> skills and performance of our employees (m/f) <strong>are</strong>
promoted and challenged by providing an attractive environment.
• We give them a perspective and opportunities for development.
On the closing date 31 December 2011, the ALNO Group
employed 1,845 men and women, as comp<strong>are</strong>d to 1,787
(m/f) in the previous year. Of these, 1,238 (m/f) worked
in production (previous year: 1,176 (m/f)), while 116 (m/f)
(previous year: 136 (m/f)) were employed in administration.
Marketing and sales employed 391 (previous year: 354)
men and women and 100 (previous year: 121) worked in
the other <strong>are</strong>as.
At the end of the financial year, the respective production
facilities employed 675 (previous year: 698) in Pfullendorf,
670 (previous year: 583) in Enger, 253 (previous year: 248)
in Brilon, 210 (previous year: 206) in Coswig and 37 (previous
year: 52) in the foreign subsidiaries.
Training
Training is a matter of great importance in the company.
<strong>The</strong> ALNO Group relies strongly on in-house training in
order to build up its own pool of young job starters. In
the financial year 2011, the ALNO Group employed 98
trainees (m/f) (previous year: 96). In addition to such classic
training vocations in administration and the trades as
industrial clerks (m/f) and woodworking mechanics (m/f),
the ALNO Group also offers jobs to business administration
students at the University of Cooperative Education
within the framework of the dual system of vocational training.
<strong>The</strong> range of vocational training offered also includes
the opportunity to earn a degree in business administration
at Academies of Business Administration and Public
Management (VWA). <strong>The</strong> practical training includes project
work, subjects common to all vocations, guided tours of
various factories and team-oriented activities.
Iv. MarKeT aNd CoMPeTITIoN
economic environment
After getting off to a <strong>good</strong> start, economic activity in the
rest of 2011 slowed appreciably in all markets of relevance
to the ALNO Group. In Germany, gross domestic
product (GDP) grew by 3.0% in 2011 (2010: 3.6%),
but the rate of growth declined as the year progressed.
By the 4th quarter, GDP had even decreased by 0.2%.
According to experts, the economy suffered from the
European debt crisis. 1
_
1 Federal Statistical Office, Press Release No. 063 dated 24 February 2012

<strong>The</strong> German economy was supported by rising foreign
demand: exports increased by 11.4% over the previous
year, with <strong>good</strong>s exceeding EUR 1 trillion in value for the
first time ever. 2 At the same time, domestic consumption
increased more strongly than at any time in the last five
years. 3
In the eurozone (the 27 Member States of the European
Union), GDP was 1.6% up on the previous year. 4 Austria
and the United Kingdom, two important markets for
ALNO, reported growth of 2.9% and 0.7%, respectively;
Switzerland grew by 1.7%. <strong>The</strong> Deutsche Institut für
Wirtschaftsforschung Berlin (DIW) expects the German
economy to grow by 0.6% in 2012. <strong>The</strong> DIW Berlin expects
real gross domestic product in the eurozone (EU 27) to
decline slightly, while global GDP is expected to increase
by almost 4%. 5
In the kitchen industry, job market developments and
investment activity in housing construction <strong>are</strong> important
indicators of consumption and investment by consumers.
Unemployment continued to fall in 2011, averaging 7.1%
for the year (2010: 7.7%) 6 This is also one of the main reasons
underlying the 1.5% rise in private consumption after
adjustment for prices. 7 Because the furniture market is a
so-called "postponable" market, it is particularly affected
by private consumer spending. Depending on their personal
financial situation, consumers will either go ahead
with or put off the acquisition of such consumer <strong>good</strong>s.
Key interest rates remained at a historically low level in
2011. In response to the euro crisis, the ECB lowered
its key lending rate to the former value of 1.0% in spring
2011 after previously raising the rate on two occasions.
According to the German Council of Economic Experts, low
interest rates were one of the main reasons underlying the
6.5% rise in investments on housing construction in 2011.
_
2 Federal Statistical Office, Press Release No. 044 dated
8 February 2012
3 Federal Statistical Office, Press Release No. 010 dated
11 January 2012
4 Eurostat, Press Release dated 15 February 2012
5 Deutsches Institut für Wirtschaftsforschung (DIW), Berlin,
Press Release dated 4 January 2012
6 Federal Employment Agency, labour market statistics for
2011 and 2010
7 Federal Statistical Office, Press Release No. 010 dated
11 January 2012
8 German Council of Economic Experts, Annual Economic Report
2011/12
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
<strong>The</strong> Council expects growth of 2.9% in 2012. 8 Munich's
Ifo-Institut expects the number of housing units completed
to rise in the next few years, due above all to the need for
replacements in several parts of Germany. <strong>The</strong> institute
has <strong>based</strong> its construction forecast on an average rise of
almost 1% p.a. in the period up to 2020. 9
Despite an inflation rate of 2.3% (2010: 1.1%) 10 overall
purchasing power also increased in Germany in 2011.
Real income rose by 1.1% over the year (2010: 1.5%) 11
With basic conditions developing favourably, furniture
production in Germany grew by 6.3% in 2011; in terms
of value, 4.5% more kitchen furniture was produced than
in 2010. 12
According to a study on purchasing power by "GfK Geo-
Marketing", purchasing power in Germany is expected
to increase only slightly in 2012. <strong>The</strong> average German
consumer will be nominally able to spend EUR 413 more
than in 2011, according to the study; that is equivalent
to a nominal rise of 2%. At the same time, however, the
GfK also points out that the German Bundesbank expects
inflation to average 1.8% in 2012. Real purchasing power
will consequently increase by only 0.2%. Total purchasing
power in Germany is estimated by the GfK to be in the
order of EUR 1,636.2 billion in 2012. 13
furniture trade
In 2011, the furniture trade was able to continue the
previous year's positive trend, with growth averaging
between 2.5% and 3% so that sales once again topped
the 30-billion-euro mark for the first time in several years.
<strong>The</strong> Federal Association of the German Furniture, Kitchen
and Furnishing Trade (BVDM) has estimated that German
consumers spent EUR 30.4 billion (including VAT) on
furniture, kitchens and furnishings in the year just ended.
_
9 Ifo Institut, Construction forecast until 2020
10 Federal Statistical Office, Press Release No. 011 dated
12 January 2012
11 Federal Statistical Office, Press Release No. 107 dated
26 March 2012
12 Federal Statistical Office, Press Release No. 019 dated
16 January 2012
13 GfK GeoMarketing, Press Release dated 13 December 2011
27

28 sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
As part of the Home and Office retail association, the
BVDM represents the interests of retailers specializing in
all aspects of home living.
As in the previous years, kitchen furniture makes up the
largest segment in the furniture trade, with 28%, followed
by upholstered furniture with 18% of total sales, and bedroom
and living room furniture with 12% each. According
to the German Furniture Industry Association (VDM), German
consumers spent EUR 373 on average per person
altogether for furniture – once again, more than at any other
time in the past ten years.
<strong>The</strong> BVDM expects growth to continue in 2012, albeit at a
lower rate. According to the BVDM, the German furniture
industry was in a better position at the beginning of 2012
than it had been for a long time. 14
German furniture industry sales
Industry sales in 2011 <strong>are</strong> put at EUR 16.7 billion (+6.4%)
by the German Furniture Industry Association (VDM). With
a rise of 11.1% to EUR 4.7 billion, exports rose considerably
faster than domestic sales, which rose 5.7% to EUR
12.1 billion. At the beginning of 2012, the furniture industry
employed a total workforce of around 90,000 men and
women in 524 firms with more than 50 employees. This
consequently meant a 1% increase in the number of jobs
in the industry.
<strong>The</strong> VDM is the largest professional association under
the umbrella of the HDH (Hauptverband der Deutschen
Holzindustrie und Kunststoffe verarbeitenden Industrie -
the central association of the German woodworking and
plastics processing industries) which also includes other
sectors, from manufacturers of prefabricated houses to
parquetry manufacturers.
According to the VDM, companies' earnings have come
under considerable pressure from drastically rising wood
prices and higher costs for other materials, as well as
higher payroll costs, despite the generally pleasing situation
of the furniture industry.
<strong>The</strong> association expects demand to develop less dynamically
in 2012. Nevertheless, the volume of sales is expected
to increase by over 2% nominally, due to robust domes-
_
14 BVDM Press Release dated 11.1.2012, HDM/VDM Press Release
"Furniture trends 2012: Round forms instead of sharp edges and
corners" dated 11.1.2012
tic sales and a slight upturn in foreign sales. This would
mean that the German furniture industry's sales would
have returned to the level of 2008, the last year before
the crisis began, when it generated sales in the amount
of EUR 17.2 billion.
Driven by a robust investment climate among firms, the
office furniture sector is the most dynamic single branch of
the furniture industry. Living room furniture and kitchen furniture
follow almost neck-to-neck, with a distinct increase
of 6.2% and 6.0%, respectively.
France, Switzerland and Austria were the German furniture
industry's biggest export markets in 2011. <strong>The</strong> value of
<strong>good</strong>s exported to France rose 14.2% to EUR 1.4 billion
for the year as a whole, while furniture worth EUR 1 billion
(+16.4%) was exported to Switzerland and furniture worth
EUR 941 million (+6.7%) went to Austria. 15
Kitchen furniture
In the year under review, German kitchen furniture manufacturers
generated sales in the amount of EUR 4.0 billion
– 5.9% more than in 2010. With a rise of 6.7 % to almost
EUR 2.6 billion, domestic sales rose even faster than
export sales, which rose 4.5 % to almost EUR 1.5 billion.
According to the German Kitchen Furniture Industry
Association (VdDK), whose members comprise roughly
56 kitchen furniture manufacturers nationwide, the German
manufacturers were able to win a larger sh<strong>are</strong> of the foreign
markets in particular. Of these, China boomed particularly.
With sales totalling EUR 63 million and a rise of 68.7%, the
People's Republic of China now ranks seventh among the
most important markets for Germany. France continues to
lead the field with a total sales volume of around EUR 326
million. Sales in the Netherlands declined to 4.6% in 2011.
With a total volume of around EUR 232 million, however,
the Netherlands <strong>are</strong> still <strong>are</strong> second largest export market.
Kitchen exports to Switzerland (EUR 160 million) were
roughly 13.5% higher in 2011 and the country now ranks
third, together with Belgium (also EUR 160 million). Exports
to Austria were 7% higher (ranks fifth / EUR 137 million).
<strong>The</strong>y <strong>are</strong> followed by the United Kingdom, China, Spain,
Luxemburg and Italy. <strong>The</strong> volume of exports to the United
Kingdom (EUR 88 million) and Spain (EUR 36 million) fell
slightly in 2011.
_
15 HDH/VDM Press Release dated 11.1.2012, HDH/VDM information
chart dated 19.1.2012

Imports totalled EUR 101.3 million, the main foreign pro-
ducers being Italy, France and Slovakia. At 36.6%, the
export quota fell by 0.4 percentage points in the financial
year 2011.
According to the VdDK, the German kitchen furniture
industry is the most efficient and most productive in the
world. Altogether, the industry's 56 firms with a workforce
of more than 50 employees provided jobs for 14,693 men
and women, a rise of 2% over the previous year. Growth
triggers from Eastern Europe and Asia also let the VdDK
view the current year 2012 with optimism.
At EUR 299.1 million, sales by the German kitchen furniture
industry were 9.5% higher in January of the present financial
year than in the same month last year. In Germany, sales
rose 10.7% to EUR 195.1 million in January 2012. Export
sales likewise rose 7.4% to EUR 104 million. Although
several markets <strong>are</strong> weaker, particularly in Europe but also
overseas, the Association nevertheless expects growth to
continue at an only marginally lower rate in 2012. 16
Market position
In the financial year 2011, the ALNO Group's market sh<strong>are</strong>
in Germany equalled roughly 14.5% in terms of value and
20.9% in terms of the number of kitchens sold. 17 Its sh<strong>are</strong>
of the European market equalled 3.7% in the financial year
2011. This makes the ALNO Group the second largest
manufacturer of kitchen furniture in Germany and one of
the top five in Europe. 18
_
16 HDH Monthly report according to sectors 2011 January - December,
VdDK Press Release of March 2012
17 Gesellschaft für Konsumforschung (GfK), Presentation of kitchens,
trade panel, for the ALNO Group, 2010, pp. 47/48
18 CSIL, Centre for Industrial Studies, <strong>The</strong> European Market for
Kitchen Furniture, May 2010 – R2601, p. 5
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
v. MarKeTING aNd ProduCT develoPMeNT
Products
Several new products and cooperation projects were once
again presented to the general public and the trade in the
financial year under review. At the start of the year, the new
Esprit home kitchens, a cooperation with the lifestyle brand
ESPRIT, were presented for the first time at the successful
LivingKitchen 2011 exhibition.
ALNO MARECUCINA, the "flagship" among ALNO kitchens
which is now being produced in series, continues to
attract considerable attention with its maritime design
concept. This kitchen incorporating various nautical elements
has won several awards and comes in two versions:
a freestanding model resembling a yacht in shape and a
classic single-row version.
<strong>The</strong> ALNO brand has also proved its innovative nature
in the field of glass kitchens. Since autumn 2011, the
ALNOSTAR VETRINA and ALNOVETRINA ranges have
been available in the modern high-gloss colour versions
"cashmere" and "purple", while the multifunctional models
ALNOSTAR SATINA and ALNOSATINA <strong>are</strong> now available in
matt "cashmere". <strong>The</strong> innovative design of ALNO's glass
kitchens is confirmed by the numerous awards won by
the models ALNOSTAR SATINA, ALNOART woodglas
and ALNOART pro in recent years. What's more, the topmounted
strip handles and segmented glass doors have
added two new design elements to the ALNOSATINA and
ALNOVETRINA glass kitchen segment.
At the company exhibition DESIGN-TOUR 2011 in Enger/
North Rhine-Westphalia, a new product generation
under the ALNO brand was presented in the form of the
ALNOSTAR CERA and ALNOCERA lines. <strong>The</strong>se kitchens
with fronts and side panels of ceramic material exemplify
the current trend towards individual, ecologically designed,
high-quality products with a robust surface that is not only
easy to c<strong>are</strong> for, but also exceedingly resistant to scratching
and abrasion. Absolute food safety, high recyclability
and UV resistance of the ceramic materials was assured
when developing these products.
29

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A traditional product with a modern interpretation, ALNO-
CLASSIC links tradition and modernity. Presented at the
company exhibition in autumn 2011, the kitchen in countryhouse
style is designed to please all generations and
combines state-of-the-art technology with solid oak and
timeless glass surfaces.
<strong>The</strong> Group's entry-level price segment, the PINO kitchen,
was also developed further in the period under review.
Since 2011 PINO offers low-cost knock-down kitchens
in additional modern colours especially for young people
who <strong>are</strong> increasingly following this trend towards more
daring and fresher colours when furnishing their homes.
Together with the trend colours cashmere, pink, red and
blue, the high-gloss foil-wrapped design in particular creates
fashionable highlights.
<strong>The</strong> IMPULS brand has also enlarged its range of colours.
Despite this, however, speed remains the focus of attention
for IMPULS. Germany's fastest kitchen is ready for use
within a few days. This kitchen consequently reflects the
increasing mobility and short-lived character of our society.
Since no more than ten working days lie between receiving
the customer's order and installation of the kitchen, there
is no longer any reason for not moving to a new address
at short notice.
<strong>The</strong> new Wellmann range was also launched in the financial
year 2011 and enlarged to include 25 new front colours.
In this way, the Wellmann kitchens make for even greater
flexibility when planning a kitchen. As before, WELLMANN
focuses on simple, classical modern, individual elegance.
Production
PfulleNdorf
During the financial year 2011, the management began
to establish new structures to optimize competences and
costs at the four production facilities in Germany, with the
aim of further increasing the real net output ratio and quality.
A clear commitment to the Pfullendorf location was a first
step in this direction. By establishing a production line for
glass fronts here, the ALNO Group has decisively improved
its manufacturing competence in this sector.
Fronts finished with a glass or ceramic surface <strong>are</strong> produced
on this new line. <strong>The</strong> glass or ceramic panels <strong>are</strong>
cut to size from larger panels on a CNC cutting table,
either individually or in series, and subsequently ground
and polished together with the substrate. This knowhow
and flexibility in producing standard carcase parts
(special surface, cutting to size, flexible manufacture of
parts) allows ALNO to meet individual customers' wishes
more effectively; they <strong>are</strong> also essential for the competent
manufacture of brand-related products.
In addition to glass production, the company also invested
in a new packaging machine for small items and a new
worktop saw for the Pfullendorf plant in 2011. <strong>The</strong> internal
value-adding processes for such components as glass,
lacquer or ceramic fronts meeting the ALNO brand's
claim <strong>are</strong> also to be developed further and expanded at
the Pfullendorf location. A "centre of lacquer competence"
for the ALNO Group is to be established at the Pfullendorf
location.
eNGer
A new WELLMANN product range <strong>based</strong> on the new 13
centimetre grid size was introduced at the Enger location
at the start of 2011. <strong>The</strong> ALNO and WELLMANN ranges
consequently use the same grid size. For production and
logistics, this changeover posed a considerable challenge,
as two product ranges had to be manufactured in parallel.
<strong>The</strong> materials for the old product range were completely
removed from the production process at the end of 2011/
start of 2012. This means that the "old" WELLMANN is
now only available for handling complaints. From 2012
onwards, production in Enger will concentrate exclusively
on the new product range. <strong>The</strong> new grid and gap size used
by WELLMANN allows modern kitchens to be planned
functionally and ergonomically in future.
In the financial year 2011, the company invested in a new
CNC drilling and assembly line for order-<strong>based</strong> production
of kitchen furniture fronts in order to meet with ever higher
individual requirements for the new Wellmann range. A
new automatic drilling and dowelling machine for carcase
elements was also commissioned in summer 2011.
Further investments were also made in the final assembly
<strong>are</strong>a, in the form of a new assembly line for wall units.
With all-automatic press-bonding of the carcase parts
and robots to fit the wall unit fixtures, this line represents
the latest state-of-the-art and will ensure high-quality
manufacture. Plinths and wall units have additionally been
packed in high-quality cartons since the end of 2011/start
of 2012.

BrIloN
<strong>The</strong> IMPULS brand is produced in Brilon, where production
is characterized by very short turnaround times. A new
panel-cutting saw was purchased for worktop production
here in order to be able to meet future demands. With this
saw, end and depth cuts can be produced on a single
machine, thus further reducing the time required for cutting
panels to size. A new drilling machine started operation
in the drawer and pull-out assembly line. Innovative lin-
ear motion drives have resulted in considerably shorter
machining times.
Further optimization measures were successfully brought
to a conclusion in 2011, not only in production and particularly
in picking the fronts, but also in the worktop
w<strong>are</strong>house and cabinet assembly. <strong>The</strong> time-<strong>based</strong> management
associated with these measures was brought into
line with the new conditions.
<strong>The</strong> introduction of segmented glass doors was one of
the highlights of product development. Due to the high
level of demand, a special press for fronts was designed
and commissioned at short notice in order to safeguard
production.
CosWIG
<strong>The</strong> Coswig plant primarily builds the PINO brand of kitchens
for the entry-price level. In 2011 too, this lean assembly
plant with low vertical range of manufacture focused
on stabilizing its manufacturing processes and improving
performance with our trading partners. By streamlining the
supply chain to nationwide service with just a few days
between receiving and delivering orders, the plant was
able to meet the demand for exceedingly short delivery
periods when necessary. <strong>The</strong> resources required for this
purpose were made available through flexible working time
models and by enlarging capacity in the manufacturing
sector. Productivity was improved with the aid of specifically
targeted optimization measures.
<strong>The</strong> electronic exchange of data (EDI) with both customers
and suppliers was further expanded in order to meet the
high quality standards expected by our partners in the
supply chain.
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
In conjunction with the plant's further modernization, the
management also invested in a new saw for cutting worktops.
This new machine will be commissioned in 2012.
A <strong>good</strong> infrastructure with sufficient opportunities for physical
expansion and a flexible workforce with many years of
experience ensure <strong>good</strong> <strong>prospects</strong> for further growth by
Pino Küchen GmbH.
<strong>The</strong> ALNO Group's future plans for the individual production
locations include further investments in additional machines
to improve performance and quality in worktop and wall unit
production, as well as in-house logistics.
Marketing
In the financial year just ended, the ALNO Group's marketing
activities primarily concentrated on kitchen presentations
at trade fairs and exhibitions. On the one hand, this
satisfied the curiosity of both trade visitors and consumers;
at the same time, it also highlighted the feel of the products,
for the ALNO design must be touched in order to be
fully appreciated.
Trade fairs and exhibitions
"Design on Stage" was the motto of the ALNO Group's
trade fair and exhibition presences in January 2011. <strong>The</strong>
Esprit home kitchen was presented for the first time at the
"LivingKitchen" exhibition in Cologne which is part of the
yearly international furniture trade fair "imm cologne". It was
a successful start, with the Esprit kitchen attracting great
interest among the trade visitors. Our flagship, the ALNO
MARECUCINA, also proved highly popular again. Other
product highlights included the new ALNOSTAR SATINA
on the one hand and the "quick kitchen" from IMPULS on
the other.
<strong>The</strong> boating exhibition "boot" opened in Düsseldorf at
the same time. Due to its maritime design, the ALNO
MARECUCINA design study was also presented for the
first time at an unrelated exhibition. <strong>The</strong> kitchen was well
received, as it not only links material aspects – MARE-
CUCINA is after all <strong>based</strong> on the same materials that <strong>are</strong>
also used in boat building – but also the maritime lifestyle
of the "boot" exhibition.
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<strong>The</strong> ALNO Group's company exhibition entitled "Design-
Tour" was held in September 2011. Many new innovations
were presented here. Colour diversity was the distinguish-
ing characteristic of this company exhibition, together with
our flagship, the MARECUCINA. Both Wellmann kitchens
and the kitchens from Impuls and Pino presented a considerably
enlarged range of colours. Attention once again
focused on the "quick kitchen" produced by Impuls which
is delivered to the customer within the space of a few
working days. <strong>The</strong> extravagant ALNOCERA was introduced
as a new highlight during the Design-Tour.
Another highlight of the company exhibition was the Corso
Internationale 2011 which was continued from 2010. <strong>The</strong>
Corso Internationale presents special features from different
countries; in this case, kitchen highlights from six
countries. In addition to products from Switzerland, the
Netherlands, France and Spain, it also presented non-
European product specialities from Russia and India. Different
specifically national colours and materials played a
major part in the various kitchens' design.
sales
doMesTIC sales
In Germany, the kitchens produced by the ALNO Group
<strong>are</strong> marketed through kitchen and furniture studios, self-
service and RTA stores, furniture stores, as well as through
architects and building companies especially in the case of
real estate projects. Most of the German trading partners
<strong>are</strong> members of purchasing associations.
Kitchen and furniture stores <strong>are</strong> served by a trained team
of field service staff in Germany, while merchandisers specializing
in this field of business look after the self-service
and RTA stores; the associations <strong>are</strong> specifically handled
by our key account managers.
foreIGN sales
<strong>The</strong> ALNO Group has trading partners in 64 countries. <strong>The</strong>
reorganization measures launched abroad were essentially
brought to a conclusion in 2011. In Switzerland and the
United Kingdom, ALNO kitchens <strong>are</strong> sold through our own
marketing companies. In addition, the ALNO Group also
operates abroad through competent local field staff managed
by the export department at Group headquarters.
Our foreign sales activities last year focused above all
on acquiring new partners in other countries. First steps
were taken to reorganize the ALNO Group in the United
States and Arab countries, for example. <strong>The</strong> collabora-
tion launched with strong new partners in Russia, Ukraine,
Turkey and other countries is beginning to bear fruit.
Particularly the booming Asian markets <strong>are</strong> a focus of
attention for the ALNO Group's activities abroad. In China
and Hong Kong, the ALNO Group is currently developing
an efficient sales network together with a financially
sound partner who is already operating successfully in the
kitchen market there. New partners <strong>are</strong> also being sought
in Singapore, Indonesia, Thailand and India. In Russia and
Ukraine, the company has begun to position the ALNO
brand in exclusive ALNO stores.
focus of sales activities in 2011
In the financial year 2011, sales activities focused on
implementation of the new terms and conditions for our
trading partners, specifically positioning the Group brands
ALNO, WELLMANN, IMPULS and PINO in the individual
sales channels, and launching the new Wellmann range
presented during the "Design Tour 2010". As a result of
comprehensive campaigns, the new Wellmann product
range with its new grid system has become established
in the marketplace within a very short space of time. Con-
trary to the original planning, production was changed over
completely to the new Wellmann range by mid-2011 and
production of the former products reduced to a minimum
as a result of the high level of acceptance in the trade.
awards and distinctions
Innovative ALNO products once again won numerous
awards and distinctions in 2011. <strong>The</strong> maritime design
study ALNO MARECUCINA, for instance, won the award
"Kitchen Innovation of the Year 2011" conferred by the initiative
"LifeC<strong>are</strong> - Better Living". With regard to functionality,
innovation and design, it has now been selected "Product
of the Year 2011" by consumers. <strong>The</strong> ALNO MARECUCINA
also won the Interior Innovation Award 2011. Initiated and
conferred by imm cologne, the Interior Innovation Award
is one of the most highly respected design awards for the
furniture industry worldwide.
ALNOSTAR SATINA also won the distinction "Kitchen
Innovation of the Year 2011". With fronts made entirely
of glass, the kitchen presents an innovative way of using
this material and draws attention to completely new design
possibilities. With regard to functionality, innovation and
design, it was selected "Product of the Year 2011" by
consumers.

ALNO also won another very special distinction in the form
of the special platinum award "Favourite brand - selected
by consumers". This mark of quality from the initiative
"LifeC<strong>are</strong> – Better Living" highlights ALNO's consistent
product performance meeting the consumer's needs.
<strong>The</strong> award is conferred to companies which have won
the award "Kitchen Innovation of the Year" for at least
six products.
And the ALNO Group also achieved yet another milestone:
for the first time, the company landed among the Top 10 in
the competition for the "Best Marketing Company Award
2011", with an outstanding 8th place in the category
"Large companies over 250 employees". Unlike almost
all other marketing awards, the "Best Marketing Company
Award" – conferred by the management consultants Batten
+ Company – is <strong>based</strong> on the scientific principles of
the chair for innovative marketing management of Bremen
University, and not on a jury decision.
<strong>The</strong> ALNO Group won a further distinction in 2012 and
hence after the period under review: ALNOSTAR CERA
won the award "Kitchen Innovation of the Year 2012" from
the initiative "LifeC<strong>are</strong> – Better Living" during the exhibition
"Ambiente 2012" in Frankfurt. ALNOSTAR CERA convinced
the jury with its three millimetre thick ceramic lining
creating outstanding effects on the fronts, worktops and
side panels. <strong>The</strong> kitchen also received the distinction of an
"Excellent product". <strong>The</strong> company also won another award
for ALNOSTAR CERA in the category "Kitchen furniture
and equipment": the "Golden Award – Best of the Best".
<strong>The</strong> jury was impressed by the functionality, innovation,
product benefits, design and sustainability of ALNO's new
high-end product range.
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
vI. researCh aNd develoPMeNT
Product development by the ALNO Group is centrally
located in Pfullendorf. Development focuses on product
innovations and new applications which <strong>are</strong> systematically
developed across all product lines for specific target
groups. In addition, the efficiency of all value-adding processes
is continuously optimized. <strong>The</strong> range of products
and services is continuously revised, leading to regular new
features which also enjoy a special market position in some
sectors.
Since the ALNO brand is to be positioned more clearly in
the upper brand segment in future, the company intends to
systematically develop corresponding product innovations
and new applications <strong>based</strong> on market requirements and
the consumers' needs. <strong>The</strong> aim of product development is
to develop ALNO as the company's core brand with regular
product and design innovations and thus demonstrate
its superior market position. To this end, the company
will further develop its competence in glass and ceramic
materials with new fronts, handle options and functional
elements. <strong>The</strong> ALNO brand is also characterized in particular
by lacquer competence. Other projects include
the introduction of handleless kitchens in other ranges,
updating the ranges of basic fronts, developing new glass
units and integrating new opening systems and functional
systems into the standard ranges of the PINO, IMPULS
and WELLMANN brands.
vII. oBJeCTIves aNd sTraTeGY
Sustainable competitiveness, future-oriented processes,
financial stability and profitable growth – these <strong>are</strong> the
objectives and central tenets of the Group's strategic
reorientation.
Along with these economic parameters, the ALNO Group's
future place in the international kitchen market is another
aspect of this strategic reorientation. A work process
incorporating employees from different hierarchy levels and
with different <strong>are</strong>as of responsibility was launched internally
within the Group in 2011 to formulate this qualitative
strategy objective. <strong>The</strong> team is also tasked with reconciling
the following sector-related central issues in a single overall
concept.
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sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
<strong>The</strong> corporate concept of "ALNO – One Company" is more
than just an organizational idea: it also requires content
and a goal. A number of the strategic measures already
launched were successfully continued in the year under
review.
<strong>The</strong> basic parameters remain unchanged:
• Adding value – as expressed through profitability, cash
flow and return on capital
and
• Optimum adaptation of decentralized structures to
Group concepts
<strong>The</strong> motto underlying all the ALNO Group's activities is to
offer the best possible quality and the best possible service
for the customer over the full bandwidth of our product
and brand portfolio.
Market objectives
Our efforts to reorganize sales <strong>are</strong> consistently being pursued.
<strong>The</strong> aim is to ensure sales' conformity with the trading
structures of the kitchen furniture industry. <strong>The</strong> Group
supplies retailers of every kind, from kitchen specialists
through furniture mass merchandisers to RTA and selfservice
furniture markets. Attention will concentrate more
strongly on the sound value of sales and a clear focus in
brand positioning.
<strong>The</strong>se efforts <strong>are</strong> beginning to bear fruit, especially for
the ALNO brand, as ALNO's sh<strong>are</strong> of sales is increasing
among kitchen specialists. This increases the value of the
products sold and hence the quality of earnings. Other
steps <strong>are</strong> also being taken to heighten the ALNO brand's
positioning. Among other things, this includes the idea
of defining certain marketing rules for the ALNO brand
in future so that it is easier for our customers to give the
ALNO brand product a clear, uniform profile unrelated to
the marketing partner. Following on from the ALNO brand
name, we also intend to become more active in consumer
marketing. This will give rise to a new "win-win" situation
for the Group and our customers. ALNO will benefit from
uniform positioning of the product in the market, our customers
will benefit from the brand's recognition which, in
turn, will lead to greater interest among consumers.
<strong>The</strong> market positioning of Wellmann, Impuls and Pino
products is to be improved in the same way, in accordance
with the respective customer and sales segments.
<strong>The</strong> basic strategic positioning will not be changed. <strong>The</strong>
remaining overlaps between product families will continue
to be reduced further in future.
Another objective is to make sales more profitable as a
whole. This also includes a more differentiated price structure
for individual product groups. <strong>The</strong> same also applies
with regard to pricing in so-called "block kitchen business".
<strong>The</strong> quality of earnings in this sector is in some cases inadequate
and must be improved accordingly.
Clear growth targets also apply for our export markets. <strong>The</strong>
efforts to restructure our export organization <strong>are</strong> essentially
complete and the first positive effects of these efforts <strong>are</strong>
already becoming app<strong>are</strong>nt. ALNO consolidated revenues
in the French market, for instance, have risen by more than
13%. Particularly in France, a significant further increase
in sales and income is expected for 2012 due to our strategic
partnership with sound retail chains and chain store
operators.
Concepts giving the ALNO Group a sustainable sh<strong>are</strong> of
growth and price levels in the respective markets <strong>are</strong> currently
being developed for the central growth markets, as
already defined in Asia, especially China, but also in North
America where distribution of the ALNO Group's products
is still inadequate. After the end of the period under review,
a subsidiary was set up in the United States in early 2012
and negotiations started in China to set up a joint venture
with a local partner.
We also intend to step up our presence in the Russian market.
Above all, the ALNO brand is to be marketed through
exclusive ALNO stores and a dealer network will be set up
for IMPULS to meet the furnishing needs of the Russian
middle class.
<strong>The</strong> existing subsidiaries will continue to operate in Switzerland
and the United Kingdom. So that they can respond
more effectively to market requirements, however, the subsidiaries
will be given greater organizational independence
with regard to sales activities in their respective markets.
<strong>The</strong> main objective in other countries, especially other
European countries, is to improve customer service and
hence permit further growth. It will be developed in accordance
with the growth rates of the respective brands. <strong>The</strong>
idea is to lay a sound basis for winning further customers.

objectives for production
<strong>The</strong> introduction of a new Wellmann range in Enger was
one of the main factors influencing the ALNO Group's
performance in 2011. <strong>The</strong> enormous technological and
organizational challenge of manufacturing very different
product groups in a single plant has been mastered suc-
cessfully, albeit with more effort than originally planned.
At first, it proved difficult to meet the market's high level
of demand, for the new Wellmann product was received
more favourably than expected and replaced the former
product more quickly than planned.
<strong>The</strong> changeover in production is now complete. As in the
other plants, attention in Enger now focuses on continuous
optimization of the production processes. In view of
the complexities associated with introduction of the new
product in Enger, there has been no further transfer of
production from Pfullendorf to Enger, nor is this planned for
the time being. Optimum utilization of the available production
capacities will be clarified systematically.
A team of plant managers is therefore developing a basic
strategy for the Group as regards the future structure of its
plants. Core issues include the following:
• Optimizing Group production capacity in the light of
increasing fluctuations in the production quantities
required per week and per day.
• Defining core production competences for individual
locations, such as component production, also for the
ALNO Group.
• Establishing the vertical range of manufacture for the
individual plants; in Pfullendorf, for example, the vertical
range of manufacture has been increased through the
in-house production of glass and ceramic fronts, thus
making production more flexible and more cost-efficient,
as well as improving quality management.
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
objectives for distribution
<strong>The</strong> level of all-round service offered by a manufacturer for
the kitchen as a product is becoming increasingly impor-
tant. This concerns all <strong>are</strong>as, from order acquisition to
logistics and delivery of the manufactured kitchens. Logis-
tics in particular is a major cost factor. Both the quality of
the logistics process and the issue of further cost optimiza-
tion <strong>are</strong> major objectives for the future strategic orientation.
A team involving relevant partners has already been set up
to improve the ALNO Group's distribution services and to
identify options for an even more sustainable structure.
objectives for the administrative sector
Ongoing efforts to standardize processes will be contin-
ued in all administrative <strong>are</strong>as of the ALNO Group, such as
accounting / controlling, IT and Human Resources, as well
as in the holding company's central functions. During the
period under review, SAP/HCM were introduced through-
out the Group to standardize payroll accounting and time
management at all German locations; these efforts were
brought to a successful conclusion when the system went
online on 1 January 2012.
A major IT project was launched in Pfullendorf in 2011
with the aim of introducing SAP to completely replace all
modules in the process chain, from order handling through
sales to process data management, finance and controlling,
production, materials management and quality, by
2014.
Individual locations <strong>are</strong> increasingly taking over tasks for
other locations, too, in order to achieve corresponding
optimizations. Relocating the ALNO holding company from
Düsseldorf and closing down this location completely has
also helped to reduce administrative expenses and at
the same time led to a sustainable reduction in the cost
burden.
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vIII. resulTs of oPeraTIoNs, NeT asseTs aNd
lIquIdITY
General development of business
<strong>The</strong> income statement for the ALNO Group (according to
International Financial Reporting Standards) is <strong>based</strong> on
the nature of expense method.
<strong>The</strong> ALNO Group's negative result in the period under
review was attributable to several factors. In addition to
feeble export business, the introduction of a new Wellmann
range in the Enger plant, an inappropriate price
policy launched in 2010 and higher prices for production
material, as well as higher transport costs all contributed
to the negative result in the financial year 2011. While sales
declined in relation to the previous year, PINO was the only
one of the four Group brands to generate higher sales.
sales and earnings
<strong>The</strong> following table sets out the key figures for the years
2009 to 2011 in relation to the fields of business to be
continued.
Consolidated revenues totalled EUR 452.8 million in the
financial year 2011, a drop of 3.1% over the previous
year's total of EUR 467.3 million.
Domestic revenue fell 2.5% to EUR 326.4 million. This
decline in sales was due, on the one hand, to initial prob-
lems associated with parallel production of the old and
new Wellmann ranges which, however, have now been
solved. At the same time, an inappropriate price policy
launched in 2010 likewise resulted in lower sales and
consequently to a decline in gross profit.
As in the previous year, the development of sales was
also burdened by export business in 2011. This effect
was intensified by the scheduled liquidation of five foreign
subsidiaries in the previous year and their conversion to
marketing entities. As a result of their temporarily reduced
marketing activity, sales generated outside Germany fell
by 4.7% to EUR 126.4 million. <strong>The</strong> export quota as a
whole consequently declined from 28.4% to 27.9%.
in '000 EUR 2011 2010 2009
Sales revenue 452,810 467,297 493,373
Changes in inventories and capitalized <strong>good</strong>s and services for own account 882 –1,993 –3,724
Cost of materials 286,398 271,907 278,654
Gross profit 167,294 193,397 210,995
Gross profit margin (in % of sales revenue) 36.9 % 41.4 % 42.8 %
Other operating income 6,270 7,062 6,460
Personnel expenses 98,529 97,900 98,539
Other operating expenses 94,169 92,611 102,950
Income from reorganization (previous year's expense) –24,338 8,962 –1,306
EBITDA 5,204 986 17,272
Write-downs 15,902 12,104 40,186
Operating result (EBIT) –10,698 –11,118 –22,914
Financial result –14,518 –1,060 –16,287
Profit/loss before income taxes (EBT) –25,216 –12,178 –39,201

Sales revenue in Germany and abroad developed as
follows:
Year
Germany Change Abroad Change Export ratio Total
'000 EUR in '000 EUR in % '000 EUR in '000 EUR in % in % '000 EUR
2009 346,103 147,270 29.8 493,373
2010 334,620 –11,483 –3.3 132,677 –14,593 –9.9 28.4 467,297
2011 326,397 –8,223 –2.5 126,413 –6,264 –4.7 27.9 452,810
Foreign sales as a whole developed as follows:
Year
Change thereof Change Other foreign Change
Total exports Total Europe
ATG
countries
'000 EUR '000 EUR in '000 EUR in % '000 EUR in '000 EUR in % '000 EUR in '000 EUR in %
2009 147,270 133,512 81,448 13,758
2010 132,677 108,089 –25,423 –19.0 27,681 –53,767 –66.0 24,588 10,830 78.7
2011 126,413 105,456 –2,633 –2.4 25,098 –2,583 –9.3 20,957 –3,631 –14.8
Changes in inventories and capitalized <strong>good</strong>s and services
for own account totalled EUR 0.9 million as comp<strong>are</strong>d to
EUR -2.0 million in the same period in the previous year.
Despite the lower sales revenue, the cost of materials
rose from EUR 271.9 million to EUR 286.4 million due to
the higher volume of high-quality ranges sold (especially
glass), as well as on account of higher prices by suppliers.
At 63.1%, the cost of materials in relation to total sales
was consequently well above the previous year's level of
58.4%. On a Group basis, gross profit declined from EUR
193.4 million to EUR 167.3 million, causing the gross profit
margin to fall from 41.4% to 36.9%. This development was
a combined effect due to different developments in the
subsidiaries. <strong>The</strong> considerably larger sh<strong>are</strong> of the cost of
materials for the ALNO brand in relation to total sales had
a particularly depressing effect here.
Other operating income decreased from EUR 7.1 million
to EUR 6.3 million due, above all, to lower proceeds from
the reversal of specific valuation allowances, as well as to
lower income earned in other periods. Personnel expenses
rose from EUR 97.9 million in the previous year to EUR 98.5
million in 2011 due mainly to the increase in employees
at the Enger plant. <strong>The</strong> sh<strong>are</strong> of personnel expenses in
relation to total sales consequently rose from 21.1% in the
previous year to 21.7%.
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
Other operating expenses increased from EUR 92.6 million
to EUR 94.2 million due to higher transport costs despite
the decline in sales revenue and above all higher sales
commissions resulting from the higher volume of contract
business by ALNO UK.
<strong>The</strong> reorganization profit of EUR 24.3 million was essentially
attributable to the fact that Comco Holding AG, Nidau,
Switzerland, took over trade accounts payable by the ALNO
Group in the amount of EUR 25.0 million, for which repayment
was subsequently waived. <strong>The</strong> reversal of reorganization
provisions generated further income in the amount of
EUR 2.1 million. This was offset by consulting expenses
associated with the reorganization in the amount of EUR
2.7 million. In the previous year, most of the expenses associated
with reorganization efforts were attributable to the
reduction in jobs at the Pfullendorf plant. <strong>The</strong> remaining EUR
1.5 million were accounted for by the elimination of jobs
abroad when winding up five of the eight subsidiaries, as
well as by fees for preparing a reorganization assessment.
EBITDA rose from EUR 1.0 million in the previous year to
EUR 5.2 million due mainly to the profit from reorganization.
This made it possible to realize the forecast made in
conjunction with the annual financial statements 2010 that
Group EBITDA in 2011 would improve over the previous
year.
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Write-downs on intangible assets, property, plant and
equipment rose from EUR 12.1 million to EUR 15.9 mil-
lion. <strong>The</strong>se were attributable on the one hand to the rise of
EUR 1.4 million in amortization and depreciation on booth
design and installation of display kitchens, as well as to a
rise of EUR 2.0 million in impairment losses resulting from
the impairment test pursuant to IAS 36. <strong>The</strong>se will reduce
amortization and depreciation in the coming years.
In this way, EBIT improved slightly from EUR -11.1 million
in the previous year to EUR -10.7 million now.
Financial performance declined considerably, from
EUR -1.1 million in the previous year to EUR -14.5
million. Financial income fell significantly from EUR
10.4 million to EUR 0.1 million, due to the "Loan waiver,
banks (Part 1)" in the amount of EUR 10.0 million in
accordance with the restructuring agreement I of 23 April
in '000 EUR Total year 2011
2010, which had been recognized as income in the previous
year. Financial expenses fell slightly from EUR 11.5
million to EUR 11.2 million. <strong>The</strong> drop of EUR 3.4 million
in investments measured at equity was also due to the
unsatisfactory performance of ALNO Middle East FZCO
in Dubai, as well as to a waiver in the amount of EUR 1.0
million by ALNO AG.
EBT consequently fell sharply from EUR -12.2 million in the
previous year to EUR -25.2 million now.
Group income consequently declined from EUR -13.1 million
in the previous year to EUR -25.6 million. Earnings per
sh<strong>are</strong> fell to EUR -1.04 after EUR -0.78 in the previous year.
<strong>The</strong> following comparison of the first and second sixmonth
periods also provides an insight into the earnings
situation in 2011:
1.7.2011
to 31.12.2011
1.1.2011
to 30.6.2011 Difference
Sales revenue 452,810 230,157 222,653 7,504
Changes in inventories and capitalised <strong>good</strong>s and services for own account 882 –979 1,861 –2,840
Cost of materials 286,398 145,724 140,674 5,050
Gross profit 167,294 83,454 83,840 – 386
Gross profit margin 36.9 % 36.3% 37.7%
Other operating income 6,270 3,316 2,954 362
Personnel expenses 98,529 48,514 50,015 – 1,501
Other operating expenses 94,169 49,406 44,763 4,643
Result from reorganization – 24,338 – 24,848 510 – 25,358
EBITDA 5,204 13,698 – 8,494 22,192
Write-downs 15,902 9,010 6,892 2,118
Operating result (EBIT) – 10,698 4,688 – 15,386 20,074
Financial result – 14,518 – 8,021 – 6,497 – 1,524
Profit/loss before income taxes (EBT) – 25,216 – 3,333 – 21,883 18,550
This comparison of the two halves of 2011 shows that
sales revenue developed more favourably in the second
half of the year. Despite this, however, gross profit
remained slightly lower than in the first half of the year.
<strong>The</strong> waiver by Comco Holding AG for repayment of EUR
25 million, which is reflected in the result from reorganization,
was effected in the second half of the year.

segment performance
<strong>The</strong> earnings situation of the ALNO Group's individual
segments (before consolidation) is outlined below.
alNo seGMeNT
2011
million
EUR
2010
million EUR
Change over
prev. year,
million EUR
Change over
prev. year
in %
Net revenue 98.4 103.8 – 5.4 – 5.2
Gross profit 40.4 53.8 – 13.4 – 24.9
Gr. profit in % 41.1 51.8
EBITDA – 21.7 – 17.3 – 4.4 – 25.4
EBIT – 26.8 – 20.2 – 6.6 – 32.7
<strong>The</strong> ALNO segment comprises ALNO AG in Pfullendorf
which produces brand name kitchens for the upper and
middle price range at the Pfullendorf location.
<strong>The</strong> volume of sales by ALNO AG was EUR 5.4 million
lower (-5.2%) than in the previous year. This drop in sales
was attributable to an inappropriate price policy launched
in 2010, as well as to streamlining and repositioning the
ranges within the Group, a process which affected ALNO
in particular. Gross profit suffered under the decline in foreign
business with its high margins, as well as under the
increase in low-margin intra-Group component business.
This effect was further intensified by the higher volume of
sales of higher-quality ranges (especially glass), as it was
not yet possible to adjust selling prices in line with the
significantly higher prices demanded by suppliers.
<strong>The</strong> decline in EBITDA from EUR -17.3 million to EUR
-21.7 million is essentially due to valuation allowances
for accounts receivable from affiliated companies in the
amount of EUR 27.9 million, which were offset by the waiver
by Comco Holding AG for repayment of EUR 25.0 million.
Other operating income was EUR 12.6 million or 62.6%
higher than in the previous year, due mainly to changes in
the structure of intra-Group set-offs. Personnel expenses
remained almost unchanged at the previous year's level.
At EUR 77.6 million, other operating expenses were EUR
36.2 million or 87.5% higher than in the previous year,
due firstly to the aforementioned valuation allowances for
affiliated companies and secondly, to a large extent to
changes in the structure of intra-Group set-offs.
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
IMPuls seGMeNT
2011
million
EUR
2010
million EUR
Change over
prev. year,
million EUR
Change over
prev. year
in %
Net revenue 116.1 121.3 – 5.2 – 4.3
Gross profit 40.6 43.6 – 3.0 – 6.9
Gr. profit in % 35.0 35.9
EBITDA 7.5 10.9 – 3.4 – 31.2
EBIT 4.7 8.1 – 3.4 – 42.0
<strong>The</strong> subsidiary Impuls Küchen GmbH in Brilon is positioned
in the lower middle price segment and reported lower
sales in the amount of EUR 116.1 million, a drop of EUR
5.2 million or 4.3%. At the same time, gross profit was
EUR 3.0 million or 6.9% lower, thus reducing the gross
profit margin to 35.0% or 0.9 percentage points below
the previous year's level. Due to the lower gross profit,
EBITDA was down EUR 3.4 million or 31.2% to EUR
7.5 million. Personnel expenses remained almost
unchanged at the previous year's level. Other operating
expenses, on the other hand, were 5.2% up at EUR
23.4 million as a result of higher sales expenses.
PINo seGMeNT
2011
million
EUR
2010
million EUR
Change over
previous year,
million EUR
Change over
previous year
in %
Net revenue 95.2 93.6 1.6 1.7
Gross profit 27.4 29.9 – 2.5 – 8.4
Gr. profit in % 28.8 31.9
EBITDA 2.9 6.8 – 3.9 – 57.4
EBIT 0.7 5.0 – 4.3 – 86.0
<strong>The</strong> PINO segment encompasses Pino Küchen GmbH
in Coswig (Anhalt) which produces kitchens in the lower
price range. In the financial year 2011 PINO posted higher
sales of EUR 95.2 million, a rise of EUR 1.6 million or
1.7%. Gross profit simultaneously dropped 8.4% to EUR
27.4 million, due essentially to an increase in appliance
blocks by discount furniture stores, which <strong>are</strong> less profitable.
EBITDA on the other hand was EUR 3.9 million lower,
dropping from EUR 6.8 million to EUR 2.9 million. This is
due above all to higher sales expenses.
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40 sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
WellMaNN seGMeNT
2011
million
EUR
2010
million EUR
Change over
prev. year,
million EUR
Change over
prev. year
in %
Net revenue 135.7 137.6 – 1.9 – 1.4
Gross profit 51.7 57.7 – 6.0 – 10.4
Gr. profit in % 38.1 42.0
EBITDA – 12.6 – 1.6 – 11.0

Current liabilities rose from EUR 192.5 million to EUR 200.2
million, as the takeover of trade accounts payable and the
subsequent waiver by Comco Holding AG for repayment
of EUR 25.0 million was offset by the increase in trade
accounts payable. After adjustment for the takeover of
accounts payable to banks already mentioned above and
after adjustment for the waiver of repayment effected in
early 2012, current liabilities were EUR 17.3 million lower,
at EUR 175.2 million.
liquidity and financial position
<strong>The</strong> net cash flow for operating activities shows a cash
outflow of EUR -3.3 million in the year under review (previ-
ous year: cash inflow of EUR 11.5 million). This consid-
erable decrease was primarily attributable to the higher
consolidated loss which includes income without impact
on the cash flow resulting from the waiver by Comco Hold-
ing AG for repayment of EUR 25.0 million, as well as to
lower utilization of the factoring volume, which <strong>are</strong> both
offset by higher liabilities. Investment activities resulted in a
cash outflow of EUR 17.1 million in the year under review,
as comp<strong>are</strong>d to EUR 14.3 million in the previous year. This
Sh<strong>are</strong>holder loans and other financial liabilities
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
increase is essentially attributable to higher investments in
booth design and installation of display kitchens. <strong>The</strong> EUR
17.6 million increase in cash flow for financing activities is
primarily attributable to the capital increase of EUR 26.1
million undertaken in 2011. With regard to the measures
taken to assure the company's continuing operation as a
going concern and its liquidity, we refer to the report on
events after the reporting period, as well as to the going
concern information in section B.1. of the Notes "Basis for
preparation of the financial statements".
develoPMeNT of NeT deBT
<strong>The</strong> net amount of debt owed by the ALNO Group (other
financial liabilities and sh<strong>are</strong>holder loans minus liquid
assets) was EUR 24.2 million higher as per 31 December
2011 than on the previous year's closing date. It totalled
EUR 107.7 million as comp<strong>are</strong>d to EUR 83.5 as per 31
December 2010. This is due firstly to the waiver by a
sh<strong>are</strong>holder for repayment of EUR 25 million in January
2012, i.e. after the closing date, and secondly to converting
trade accounts payable into financial liabilities in the
amount of EUR 28.9 million.
31.12.2011
in '000 EUR
31.12.2010
in '000 EUR
Change
in '000 EUR
Change
in %
Non-current 10,482 13,057 – 2,575 – 19.7
Current 99,447 73,495 25,952 35.3
109,929 86,552 23,377 27.0
Minus liquid assets – 2,243 – 3,041 798 26.2
Sh<strong>are</strong>holder loans and
other financial liabilities
31.12.2011
in '000 EUR
Waiver of
repayment
in '000 EUR
6.1.2012
in '000 EUR
Non-current 10,482 10,482
Current 99,447 – 25,000 74,447
109,929 – 25,000 84,929
Minus liquid assets – 2,243 – 2,243
107,686 – 25,000 82,686
107,686 83,511 24,175 28.9
After adjustment for the waiver of repayment made
in early 2012, the net amount of debt owed equals
EUR 82.7 million or EUR 0.8 million less than in the previous
year.
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sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
Ix. sINGle-eNTITY fINaNCIal sTaTeMeNT for
alNo aG IN aCCordaNCe WITh <strong>The</strong> GerMaN
CoMMerCIal Code (hGB)
Income statement for alNo aG in accordance with
the single-entity financial statement pursuant to the
German Commercial Code (hGB) for 2011
in '000 EUR 2011 2010
Sales revenue 98,373 103,833
Changes in inventories and capitalized <strong>good</strong>s and services for own account 370 – 2,193
Other operating income 32,781 20,507
Total operating revenues 131,524 122,147
Cost of materials 58,276 48,073
Personnel expenses 41,379 41,443
Other operating expenses and other taxes 79,689 41,684
EBITDA – 47,820 – 9,053
Write-downs 5,711 7,310
EBIT – 53,531 – 16,363
Financial result – 1,776 13,359
EBT – 55,307 – 3,004
Extraordinary result 24,142 – 11,630
Taxes on income 0 11
Net loss for the year – 31,165 – 14,623
ALNO AG once again had to absorb lower sales in the financial
year 2011. Sales revenue in Germany fell by 3.6%, with
a sharper drop of 8.2% in foreign sales. Net proceeds per
unit improved slightly, from roughly EUR 208 to EUR 209.
<strong>The</strong> gross profit quota in the single-entity financial statements
of ALNO AG in accordance with the German Commercial
Code (HGB) declined significantly in the financial year 2011,
dropping 10.5 percentage points to 41.1% (previous year:
51.6%). This is due on the one hand to the inappropriate
price policy launched in 2010 and to a disproportionate rise
in the cost of materials in relation to sales revenue on the
other. Gross profit suffered under the decline in foreign business
with its high margins, as well as under the increase in
low-margin intra-Group component business. This effect was
further intensified by the higher volume of sales of higherquality
ranges (especially glass), as it was not yet possible to
adjust selling prices in line with the significantly higher prices
demanded by suppliers.
Other operating income rose 59.9% to EUR 32.8 million, due
mainly to changes in the structure of netting sales expenses
within the Group. Personnel expenses remained almost
unchanged at the previous year's level.
Other operating expenses and other taxes increased by EUR
38.0 million or 91.2% to EUR 79.7 million, due mainly to
valuation allowances for accounts receivable from affiliated
companies in the amount of EUR 27.9 million on the one
hand and to changes in the structure of intra-Group set-offs,
which in turn <strong>are</strong> offset by higher other operating income.
Financial performance was significantly lower than in the previous
year, with a drop of EUR 15.1 million. In the previous
year, this item included financial income from the waiver by
banks for repayment of a loan in the amount of EUR 10.0
million in accordance with the restructuring agreement I of 23
April 2010. In addition, write-downs in the amount of EUR 2.8
million on the holdings in affiliated companies were required
in the previous year. Income under profit transfer agreements
decreased by EUR 7.8 million.

<strong>The</strong> extraordinary result improved by EUR 35.7 million, from
EUR -11.6 million in the previous year to EUR 24.1 million.
In the financial year 2011, ALNO AG also received
extraordinary income in the amount of EUR 25 million from
derecognizing liabilities following a waiver of repayment by
Comco Holding AG. Consulting expenses in the amount of
EUR 2.7 million were offset by income from the reversal of
reorganization provisions in the amount of EUR 1.9 million
which were no longer needed. In the previous year, extraordinary
expenses resulted in the amount of EUR 7.5 million
due to cutting back on personnel at the Pfullendorf plant, in
the amount of EUR 0.7 million for consulting in conjunction
with the company's reorganization, and in the amount of
EUR 0.2 million in conjunction with winding up subsidiaries.
Balance sheet of alNo aG in accordance with
the single-entity financial statements pursuant
to the German Commercial Code (hGB) as at
31 december 2011
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
in '000 EUR 31.12.2011 31.12.2010
ASSETS
Fixed assets
Intangible assets 6,384 5,638
Property, plant and equipment 15,237 15,373
Financial assets 106,482 105,482
Current assets
128,103 126,493
Inventories 9,282 9,104
Receivables and other assets 31,126 22,547
Cash in hand, bank balances 83 116
40,491 31,767
Deferred items 416 498
Excess of plan assets over pension liabilities 217 154
LIABILITIES
Sh<strong>are</strong>holders' equity
<strong>The</strong> previous year’s transition to accounting in line with the
German Act to Modernise Accounting Law (BilMoG) additionally
resulted in extraordinary expenses of EUR 3.2 million.
<strong>The</strong> waiver by a sh<strong>are</strong>holder for repayment of EUR 25 million
which was agreed for 2011 but only effected in 2012
will significantly improve the result reported for 2012 in the
single-entity financial statements for ALNO AG according
to the German Commercial Code (HGB).
169,227 158,912
Subscribed capital 67,847 45,231
Capital reserve 45,916 42,437
Net loss for the year – 87,554 – 56,389
26,209 31,279
Provisions 29,093 30,118
Other liabilities 113,925 97,515
169,227 158,912
43

44 sinGLE-Entity and GRoup manaGEmEnt REpoRt | EvEnts aFtER thE REpoRtinG pERiod
<strong>The</strong> increase in intangible assets is essentially due to
down-payments associated with a project for introducing
an integrated merchandise information system. Property,
plant and equipment remained almost unchanged at the
previous year's level.
<strong>The</strong> rise in financial assets is attributable to an increase of
EUR 1.0 million in the capital held in an associated company.
Inventories <strong>are</strong> slightly higher on account of the higherquality
ranges. Accounts receivable and other assets have
essentially increased as a result of extending further loans
to the company Gustav Wellmann GmbH & Co. KG.
<strong>The</strong> equity ratio has decreased from 19.7% in the previous
year to 15.5%. Sh<strong>are</strong>holders' equity was EUR 5.1 million
lower at EUR 26.2 million. Despite the capital increase of
EUR 26.1 million, this decrease was due to the net loss for
the year in the amount of EUR 31.2 million. <strong>The</strong> waiver of
repayment effected by a sh<strong>are</strong>holder on 6 January 2012
will lead to an increase of EUR 25.0 million in equity. When
adjusted accordingly, the sh<strong>are</strong>holders' equity reported in
the single-entity financial statements for ALNO AG within
the meaning of the German Commercial Code (HGB)
amounts to EUR 51.2 million.
Total provisions were slightly lower at EUR 29.1 million,
a drop of EUR 1.0 million. <strong>The</strong> increase in liabilities is
essentially attributable to higher other financial liabilities
and higher sums payable to affiliated companies.
Events after the reporting period
Waiver of repayment
In early January 2012, Küchen Holding GmbH, Munich,
took over the syndicate banks' loans receivable from the
ALNO Group (change of creditor from the vantage of ALNO
AG) in the amount of EUR 25 million. Küchen Holding
GmbH subsequently waived repayment of the assumed
receivables effective 6 January 2012. This relieves short-
term financial liabilities in the amount of EUR 25 million
without effect on net income, as Küchen Holding GmbH
has acted in its capacity as sh<strong>are</strong>holder.
Termination of the voting agreement
<strong>The</strong> voting agreement between IRE Beteiligungs GmbH,
Stuttgart, and Küchen Holding GmbH, Munich, both of
which <strong>are</strong> major sh<strong>are</strong>holders in ALNO AG, was terminated
on 30 January 2012. Küchen Holding GmbH is therefore
formally no longer majority sh<strong>are</strong>holder of ALNO AG. IRE
Beteiligungs GmbH, Stuttgart, belongs to the Whirlpool
Group <strong>based</strong> in Michigan, USA, through Bauknecht
Hausgeräte GmbH, Stuttgart. In recent years, Küchen
Holding GmbH and Bauknecht/Whirlpool have formed a
community of investors within the sh<strong>are</strong>holder structure
of ALNO AG. Through the voting agreement, the voting
rights of Bauknecht/Whirlpool in ALNO AG were assigned
to Küchen Holding. This made Küchen Holding GmbH
the majority sh<strong>are</strong>holder in ALNO AG. Now, following the
reallocation of voting rights, there is no longer a majority
sh<strong>are</strong>holder in ALNO AG. Bauknecht/Whirlpool intend to
exercise their voting rights directly in future. Both Bauknecht/Whirlpool
and Küchen Holding GmbH continue to see
their involvement in ALNO AG as a long-term investment.
audience award for the ceramic kitchen
alNosTar Cera
ALNO's new ceramic product line won the distinction
"Excellent Product" in the consumer competition "Kitchen
Innovation of the Year 2012" by the LifeC<strong>are</strong> initiative, as
well as the "Golden Award – Best of the Best" in the category
"Kitchen furniture and equipment". <strong>The</strong> award conferred
by the independent LifeC<strong>are</strong> initiative is a mark of
quality for products meeting consumer needs to a particularly
high degree and was given to the ALNOSTAR CERA

kitchen for its functionality, product benefits, innovation,
design and sustainability. <strong>The</strong> award is internationally recognized
and appreciated as a mark of quality on account
of its consumer orientation.
Changes in the Board of Management
Sales Director Christoph Fughe retired from the Board of
Management of ALNO AG by mutual consent on 29 February
2012; this was decided by the Supervisory Board at its
meeting on 17 February 2012. Christoph Fughe became
a member of the Board of Management in April 2011 and
was finally responsible for "Sales Germany" and "Sales
Austria". After retiring from the Board of Management,
Christoph Fughe continued to serve the company in an
advisory capacity and for special tasks until 31 May 2012.
<strong>The</strong> Board of Management of ALNO AG now once again
comprises three members. <strong>The</strong> duties have also been
reallocated. In addition to his previous tasks (including
corporate development, auditing, law and quality management),
Max Müller is now also tasked with "purchasing"
and "logistics" which formerly belonged to the <strong>are</strong>a for
which Elmar Duffner is responsible. <strong>The</strong> <strong>are</strong>as formerly
tasked to Christoph Fughe, namely "Sales Germany" and
"Sales Austria", have been assigned to Elmar Duffner,
whose responsibilities include production, exports, product
development and marketing / PR).
foundation of a new subsidiary in the usa
A new subsidiary was set up in 2012 with the name ALNO
USA Corporation <strong>based</strong> in New York. Lothar Birkenfeld, a
kitchen manager with considerable experience of the US
market, was appointed managing director.
acquisition of an alNo premium dealer in the united
Kingdom
ALNO UK Ltd., Dewsbury, United Kingdom, acquired the
ALNO premium dealer Built-In Kitchens Ltd., Sevenoaks,
United Kingdom, in April 2012 in conjunction with the
expansion of its export business.
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EvEnts aFtER thE REpoRtinG pERiod
ruling in the lawsuit against Jörg deisel
<strong>The</strong> 2nd court division handling commercial matters at
Düsseldorf Regional Court issued a judgement in the
lawsuit between ALNO AG and its former Chief Executive
Officer Jörg Deisel on 10 May 2012. This judgement
confirms the legal opinion upheld by ALNO AG, according
to which the premature renewal of his management
contract until 2015 is invalid. In a provisional judgement in
summary procedure, Düsseldorf Regional Court therefore
merely awarded the plaintiff payment of outstanding salaries
and bonuses in the amount of around EUR 400,000
for the period between his dismissal without notice in April
2011 and expiry of the contract in force at that time (i.e. 30
September 2011). However, this judgement is still subject
to appeal.
Implementation of a long-term capitalization and
financial concept
Since late 2011, the Board of Management has been
working on the implementation of a long-term capitalization
and financial concept. <strong>The</strong> main pillars of this concept
<strong>are</strong> the conclusion of a further restructuring agreement
by mid-July 2012 at the latest and a capital increase in
autumn 2012.
This restructuring agreement III will provide for further
contributions by the main sh<strong>are</strong>holders Küchen Holding
GmbH, Munich, and IRE Beteiligungs GmbH, Stuttgart,
as well as by the main banks financing the ALNO Group
and the supplier Bauknecht Hausgeräte GmbH, Stuttgart.
Among other things, the contributions by Bauknecht
Hausgeräte GmbH, Stuttgart, also include an extension of
payment deadlines to ensure that the liquidity of the ALNO
Group remains assured until the restructuring agreement
III and capital increase have been implemented in autumn
2012.
Conclusion of the restructuring agreement III will significantly
improve Group equity and permit full repayment of
the main banks. Repayment of the banks' financing with
the aid of old and new investors is an essential prerequisite
for the scheduled capital increase, which will be part of the
restructuring agreement III.
Existing bank loans payable by the ALNO Group will be
taken over and repaid by old and new investors in the first
45

46
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EvEnts aFtER thE REpoRtinG pERiod
stage of the restructuring agreement III. This stage will in
part be financed through a bond issue by ALNO AG. In
this way, the existing accounts payable to banks will be
reduced to less than 10%.
<strong>The</strong> second stage involves increasing the sh<strong>are</strong> capital of
ALNO AG and must be decided by the Annual General
Meeting in August 2012. This capital increase is to be
effected through both cash and non-cash contributions.
<strong>The</strong> non-cash contribution will take the form of a "debt-toequity
swap" in which the loan receivables taken over by
old and new investors <strong>are</strong> paid in, insofar as they <strong>are</strong> not
financed through the aforementioned bond. Since the collateral
provided to date will be released through repayment
of the existing sums payable to banks, it can be used to
take out new loans in the future, insofar as it is not needed
for issuing the bond.
<strong>The</strong> Board of Management is already conducting specific
financial talks with banks which have not provided funding
to date. <strong>The</strong> liquidity provided by these new bank loans
will be used to finance the ALNO Group's planned growth,
especially in other countries. A funding commitment by
these new banks is scheduled to coincide with the conclusion
of restructuring agreement III.
<strong>The</strong> Group's factoring volume is to be further increased
by another EUR 15 million through the sale of accounts
receivable by ALNO AG.
In addition, the Board of Management is holding out the
option of applying for a guarantee furnished by the Land
government of Baden-Württemberg following the conclusion
of restructuring agreement III which would open up
further potential for financing.
In mid-May 2012, ALNO AG's Board of Management
obtained written, non-binding declarations of intent from
the main sh<strong>are</strong>holders, the main supplier Bauknecht Hausgeräte
GmbH and both old and new investors confirming
their support for the long-term capitalization and financing
concept outlined above. <strong>The</strong>se declarations of intent <strong>are</strong> to
be transformed into a binding restructuring agreement III
by mid-July 2012, together with the planned restructuring
contributions of the main syndicate banks.
update of the original reorganization assessment of
24 June 2010 by PricewaterhouseCoopers
PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft
("PwC") was retained in early 2010 to prep<strong>are</strong> a reorganization
assessment for the ALNO Group in accordance
with statement IDW S6 of the German Institute of Auditors.
In their assessment of 24 June 2010, PwC confirmed the
ALNO Group's prognosis as a going concern as long as
financing is assured in accordance with the restructuring
agreement I of 23 April 2010 and as long as the required
measures <strong>are</strong> implemented within the framework of the
corporate planning.
In spring 2011, PwC was requested to undertake an update
of their reorganization assessment for the ALNO Group. In
the updated reorganization assessment of 13 May 2011,
PwC found that the ALNO Group is fully financed so far as
could be established at that time and subject to certain
conditions, and that there were no changes as regards
the statements made in the reorganization assessment of
24 June 2010. However, PwC did point out that the ALNO
Group's restructuring would take longer than had been
planned in the previous year.
In November 2011, PwC was mandated to update their
reorganization assessment for the ALNO Group. Since
the operational and financial reorganization concept was
still in the planning stage, PwC was unable to make any
statement in their draft of 9 March 2012 as to the ALNO
Group's ability to be restructured and continued as a going
concern.
On the basis of this mandate, PwC was therefore requested
in late April 2012 to follow up on an existing analysis of
the short-term liquidity planning until mid-July 2012 and
verify the plausibility of the Group's liquidity planning up
to mid-2013.
In their "Plausibility verification of liquidity planning up to
mid-2013" dated 29 May 2012, PwC has taken account
of the risks identified when verifying the plausibility of
corporate planning in their conservative "Adjustment
Case" which also includes measures from the planned
capitalization and financial concept (refer to the section on
implementation of the long-term capitalization and financial
concept).

In their statement on liquidity planning up to mid-2013,
PwC drew attention to the following points:
• <strong>The</strong> management's short-term liquidity planning shows
that the current agreements reached with suppliers on
deferral of payments and the stand-still agreement con-
cluded with the banks and another financial partner have
assured the ALNO Group's liquidity until 20 July 2012.
• Very different stages have been reached as regards
implementation and negotiation of the various measures
contained in the capitalization and financial concept. This
consequently makes it impossible to assess the feasibility
of all the measures in the concept. However, PwC does
not consider the measures to be obviously infeasible.
• On the basis of the so-called "Adjustment Case", clos-
ing all plants for the summer break between mid-July
and mid-August 2012 indicates that the Group's liquidity
is not assured and payments may be halted during this
period unless other internal and/or external measures <strong>are</strong>
taken. <strong>The</strong> management of ALNO AG is therefore already
conducting initial negotiations with a major supplier in
order to improve the company's liquidity.
• Subject to the assumptions made and provided that a
liquidity buffer of at least EUR 5.0 million is permanently
maintained, the company's liquidity is assured for the
period thereafter, i.e. from September 2012 to the end
of June 2013.
In addition, PwC also drew attention to the following essen-
tial assumptions and risks in the liquidity planning up to
June 2013:
• <strong>The</strong> financial concept must be implemented without fail
despite the risks associated with the feasibility of indi-
vidual measures. At the time of making the statement,
investors have only issued declarations of intent which
have still to be checked in legal and financial terms. All
other measures <strong>are</strong> under negotiation or in planning.
• <strong>The</strong> possibility that the measures will not be implemented
in <strong>good</strong> time to assure the ALNO Group's further liquid-
ity constitutes a risk. <strong>The</strong> most important and majority
of measures must therefore be implemented without fail
before the agreements on deferral of payments and the
stand-still agreement expire on 20 July 2012, as considerably
higher liquidity will be required as from the end
of July 2012 due to the plants' summer break and this
higher liquidity cannot be covered without the planned
inflows from the financial concept.
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EvEnts aFtER thE REpoRtinG pERiod
• Some of the planned but hitherto postponed investments
will have to be made in the second half of 2012.
• <strong>The</strong> relationship or situation prevailing with domestic
credit insurers and suppliers is strained. <strong>The</strong> liquidity
planning is <strong>based</strong> on the assumption that both will not
introduce terms of payment which <strong>are</strong> less advantageous
for the company than those at present or planned.
<strong>The</strong> Board of Management of ALNO AG has in the meantime
taken further steps to specify and implement the
capitalization and financial concept in more detail. Among
other things, these include negotiations with the financing
banks over repayment of the existing loans and credit lines,
as well as negotiations with new financial partners to obtain
fresh funds. <strong>The</strong> negotiations with sh<strong>are</strong>holders from whom
major restructuring contributions <strong>are</strong> expected under the
capitalization and financial concept have for the most part
been concluded.
<strong>The</strong> continuation of business activities by ALNO AG and
the ALNO Group depends on timely implementation of the
aforementioned measures in the capitalization and financial
concept as planned, and on whether or not the conditions
and assumptions made in the corporate planning <strong>are</strong> met
or apply as planned. <strong>The</strong> Board of Management of ALNO
AG presumes that the aforementioned measures in the
capitalization and financial concept will be implemented on
schedule as planned, and that the conditions and assumptions
made in the corporate planning will be met or apply
as planned.
47

48 sinGLE-Entity and GRoup manaGEmEnt REpoRt | Risks / oppoRtunitiEs and FutuRE pERspECtivEs
Risks / opportunities and future
perspectives
I. oPPorTuNITY aNd rIsK rePorT
risk report
rIsK MaNaGeMeNT sYsTeM
To undertake and safeguard its business operations, the
ALNO Group has set up systems and procedures, as well
as committees allowing the Board of Management to recognize
risks jeopardizing the company's existence at an
early stage. Risks <strong>are</strong> identified, evaluated, managed and
monitored in the ALNO Group on the basis of a Group-wide
system ensuring timely detection and monitoring of risks.
Dealing with risks successfully is <strong>based</strong> on the objective of
achieving a fair balance between opportunities and risks.
<strong>The</strong> ALNO Group's risk management is <strong>based</strong> on controlling
risks on an operational level, an internal monitoring
system for timely detection of risks jeopardizing its survival,
strategic controlling of the participating interests and controlling
of all reorganization measures.
All risks <strong>are</strong> described in a well structured manner within the
framework of the ALNO Group's risk controlling, and <strong>are</strong>
evaluated according to their economic impact and probability
of occurrence. For management of the risks, plans of
action <strong>are</strong> defined for all risks. <strong>The</strong> implementation of these
measures is monitored by an ongoing operational controlling
process. Risks and measures <strong>are</strong> updated permanently.
This places all risk data throughout the Group on the same
quality level, making them transp<strong>are</strong>nt and reproducible for
the management and for the employees affected.
Operational risk controlling is accompanied by a comprehensive
reporting system ensuring a continuous supply
of information for the Board of Management. If required
for timely detection of risks, the Board of Management
receives corresponding ad-hoc information through this
reporting system.
Strategic controlling of participating interests takes account
of risks and opportunities on the basis of the market analyses
and benchmarking against competitors as the basis
for decisions by the management. In addition, controlling
of participating interests also monitors the achievement of
business targets and manages the Group companies on
the basis of standard indicators. In this way, this system
establishes a basis permitting the timely detection and initiation
of measures to minimize risks.
All reorganization measures <strong>are</strong> planned with regard to the
activities for implementation, deadlines, effort and benefits,
and monitored by an ongoing controlling process.
Risks due to redundancies, inefficiencies or bottlenecks in
the flow of operations must be identifiable within the ALNO
Group. Measures must then be initiated with due regard for
their effect on our most important partner, i.e. the customer.
Particularly ALNO AG's trade receivables <strong>are</strong> protected
through domestic credit insurance; adequate liquidity management
is assured within the framework of an integrated
Group receivables management system taking into account
customers' needs and security considerations. Development
of the cash flow is monitored by a Group-<strong>based</strong>
liquidity controlling process which simultaneously provides
relevant parameters for timely decisions by the management.
To protect commitments associated with employees'
pre-retirement part-time working against insolvency, ALNO
AG has invested in securities of corresponding value which
<strong>are</strong> recognized in the consolidated financial statements at
their market value on the closing date.
fINaNCIal rIsKs
In the ALNO Group, financial risks <strong>are</strong> hedged with the
aid of planning and management instruments permitting
timely detection of liquidity risks. ALNO AG essentially acts
as financial coordinator for all Group companies in order
to ensure that the financing required for the operational
business is always adequate and as cost-efficient as possible.
<strong>The</strong> information potential required for this purpose
is updated on a monthly basis through roll-over financial
planning and subjected to variance analyses. This financial
planning with a horizon of one year is supplemented by
daily cash flow development planning which is constantly
comp<strong>are</strong>d to the actual payment flows. Available liquidity
reserves <strong>are</strong> monitored constantly by the ALNO Group.
A considerable portion of the credit lines extended to the
ALNO Group had been granted up to the closing date 31
December 2011 and can therefore be called in at any time.
Through the stand-still agreement of 18 May 2012, the
credit lines were extended until 20 July 2012. By far the
majority of the ALNO Group's master loan agreements can
also be terminated with immediate effect if the financial
situation of the ALNO Group deteriorates significantly or
threatens to do so, or if the value of collateral is impaired
or at risk, thus jeopardizing repayment of the loans. Should

sinGLE-Entity and GRoup manaGEmEnt REpoRt | Risks / oppoRtunitiEs and FutuRE pERspECtivEs
major credit lines be called in for repayment or major master
loan agreements be terminated for cause and become due
for repayment, the ALNO Group would require additional
capital in the form of third-party capital or sh<strong>are</strong>holders'
equity. Moreover, a considerable part of the bank loans
drawn by the ALNO Group <strong>are</strong> subject to variable interest.
Higher interest rates or other disadvantageous changes in
the terms underlying the loans can lead to higher costs for
the ALNO Group's external funding and impair its financial
performance.
<strong>The</strong> intra-Group financial adjustment undertaken in Germany
within the framework of the cash pooling process
reduces the volume of external financing required, thus
improving the financial performance. Through this internal
financial adjustment, the surplus liquidity of individual
Group companies can be used to internally finance other
Group companies. Intra-Group cash pooling has been
restricted since November 2009.
Safeguarding the Group's short-term and long-term liquidity
situation is a focal issue for the Board of Management
of ALNO AG. Short-term liquidity is assured until 20 July
2012 through a stand-still agreement with the banks,
corresponding agreements on payment deadlines with
Bauknecht Hausgeräte GmbH, Stuttgart, and an agreement
on deferral of payments with Comco Holding AG,
Nidau, Switzerland. A binding, long-term refinancing
concept must be concluded with all the main stakeholders
before then so that the liquidity shortages otherwise
existing in the current corporate and liquidity planning can
be covered after 21 July 2012. <strong>The</strong> equity elements of this
refinancing concept must be decided by the Annual General
Meeting in August 2012. With regard to the concept's
essential content and the risks relating to the company's
survival, we refer to our statements on events after the
reporting period (section "Implementation of the long-term
capitalization and financial concept").
<strong>The</strong> ALNO Group also makes extensive use of factoring
as a source of financing. <strong>The</strong> provision of finance by the
factoring company presupposes the existence of corresponding
accounts receivable. If the ALNO Group has
to satisfy accounts receivable sooner than expected on
account of changes in the factoring agreements utilized
by the Group, this would put a considerable strain on the
ALNO Group's liquidity.
defaulT / CredIT rIsKs
In conjunction with Group receivables management,
minimum requirements as regards creditworthiness and
maximum exposure limits have been defined for all business
partners of the ALNO Group. <strong>The</strong>se <strong>are</strong> <strong>based</strong> on
a system of specified limits for which compliance is constantly
monitored.
In addition, the ALNO Group safeguards its trade receivables
through domestic credit insurance which, if an account
receivable is not paid, will indemnify the loss incurred in
the contractually agreed, prorated amount less a retention.
CurreNCY rIsKs
All deliveries to countries outside the eurozone, especially
Switzerland and the United Kingdom, <strong>are</strong> associated with
currency risks. <strong>The</strong> development of exchange rates is
monitored constantly. <strong>The</strong>re were no forward exchange
deals effective on the closing date. Should new currency
risks arise in conjunction with ALNO's further international
expansion, corresponding hedging options will be exercised
as and when required. Currency risks also exist on
the purchasing side, particularly for metal <strong>good</strong>s, as these
raw materials <strong>are</strong> primarily traded in US dollars.
PrICe rIsKs
Wood, plastics, metal, glass and ceramics <strong>are</strong> the most
important raw materials for ALNO. Changes in the market
price of these materials can have a corresponding impact
on development of the Group's margins.
MaTerIal PrICes
In the first months of 2012, slight and in some cases considerable
rises have once again been noted on the London
Metal Exchange for the metal <strong>good</strong>s used by ALNO. <strong>The</strong>
price of plastics has in some cases risen strongly over
the same period. <strong>The</strong> price of these materials is expected
to stabilize at a high level, depending on how the global
economy develops.
Due to the considerably higher price of purchased glass
and in order to permit more effective management of the
production process, it was decided to start an in-sourcing
project for in-house production of glass and ceramic
fronts at the Pfullendorf location. Production started in
the fourth quarter 2011.
49

50 sinGLE-Entity and GRoup manaGEmEnt REpoRt | Risks / oppoRtunitiEs and FutuRE pERspECtivEs
servICes
Risks exist in particular with regard to the development
of transport costs due to the sharp rise in fuel prices and
the foreseeable shortage of carriers' capacity. ALNO is
planning to reorganize its logistics sector in 2012 so that
it can once again operate cost-efficiently and counter the
risks arising in conjunction with market developments.
MarKeT rIsKs
In the kitchen furniture sector, the ALNO Group operates
in a market characterized by fierce competition. <strong>The</strong> pressure
on margins is increasing constantly due to fiercely
competitive prices, especially in the lower price segments,
and simultaneously squeezing less competitive manufacturers
out of the market. <strong>The</strong> activities of competitors and
the trade could lead to distinctly lower sales revenue and
earnings for the ALNO Group.
<strong>The</strong> ALNO Group's customers <strong>are</strong> primarily retailers, the
vast majority of whom belong to purchasing associations.
If major purchasing associations were to reduce their order
volumes, terminate blanket agreements or be compelled
to file for insolvency, and if the ALNO Group were unable
to win new customers of comparable magnitude or were
unable to obtain a commensurate increase in the volumes
ordered by existing customers, this would lead to a tangible
reduction in capacity utilization and sales revenue,
as well as to the loss of receivables for the ALNO Group.
<strong>The</strong> process of repositioning the ALNO Group brands
must also be continued and the new sales structure must
become more firmly established. <strong>The</strong>se processes also
entail risks.
Germany is the ALNO Group's main market, accounting
for more than 70% of the total sales revenue. Other major
markets include the United Kingdom, France, Austria,
Switzerland, Spain, Italy and the Benelux countries. <strong>The</strong>se
markets have developed differently in the past. ALNO
AG presumes that the individual markets will continue to
develop differently in the future too, depending on the influence
of economic factors. For this reason, the ALNO Group
will step up its sales activities in selected foreign markets
in order to minimize the risks.
IT rIsKs
A large part of the ALNO Group's production, w<strong>are</strong>house
management and accounting is essentially <strong>based</strong> on computers.
Failure of the computer or production systems could
bring production to a halt and thus lead to a considerable
financial loss for the company. What's more, ALNO AG has
outsourced its IT systems almost entirely. Any disruptions in
the contractual relationship governing services throughout
the IT sector at ALNO AG would impair all work processes
in the company's data processing.
sTraTeGIC rIsKs
To stabilize the net assets, financial position and results of
operations of the ALNO Group, the company considers it
necessary to take steps to boost efficiency in administration
and sales, to cut costs and ensure profitable growth,
in particular by repositioning the brands. <strong>The</strong>se measures
require investments and corresponding funds. In the year
under review, the reorganization concepts were adjusted in
the light of changed market conditions and new priorities
within the Group. Instead of standardizing administration
processes almost simultaneously throughout the Group,
it is now planned to harmonize processes in stages. This
gradual implementation at different times gives rise to the
risk of delays in reducing administration costs.
opportunities
voluMe aNd value of sales
Series production of the product "WELLMANN new" presented
at the company exhibition in 2010 started in 2011.
This product was more favourably received by the market
than originally planned and series production of the product
"WELLMANN old" was discontinued in summer 2011
instead of at year-end as originally planned. Particularly
the new lacquer fronts have been very well received by
the market. For a large number of customers, the logistics
service was improved together with the change of product,
in that the accuracy of delivery schedules was improved
when confirming orders. In other words: the so-called
"two-week logic" was eliminated in Germany.
For the ALNO brand, the upward trend in volume of sales of
the "glass kitchens", i.e. high-price ranges with glass fronts,
has continued. On the basis of this success, a new front
made from ceramic material was presented at the company
exhibition. This front is resistant to scratching and was very
well received by both trade visitors and customers. Since
then, the new kitchen has already won several innovation
awards. This product will help considerably in strengthening
the position of the ALNO brand.

sinGLE-Entity and GRoup manaGEmEnt REpoRt | Risks / oppoRtunitiEs and FutuRE pERspECtivEs
In the case of IMPULS, the market's acceptance of prod-
uct variance combined with delivery performance has been
confirmed. New service packages <strong>are</strong> being developed
which will make use of the Brilon plant's delivery perfor-
mance in particular.
<strong>The</strong> ALNO Group's potential for boosting sales in the for-
eign markets is generally high. On the one hand, reorienta-
tion of the export sector will lead to an extension of sales
partnerships in the European markets, such as France.
At the same time, separate sales concepts <strong>are</strong> also being
planned for the large existing markets, as well as for such
growth markets as China, Russia and the United States so
that ALNO can participate more strongly in these markets'
potential in future.
MarKeTING
First steps have been taken to standardize the sampling
process, i.e. the dispatch of samples to our customers,
throughout the Group. <strong>The</strong> aim is to enhance our cost
management and present a more uniform image to the
customer. Comp<strong>are</strong>d with its direct competitors, ALNO
enjoys outstanding brand recognition and sympathy among
consumers. This unique differentiator must be utilized more
strongly in future and the existing potential realized. <strong>The</strong>
first projects have already been started in this context with
the aim of communicating more directly with the consumer.
Among other things, these include the development of
consumer-oriented advertising, more specific management
of all points of contact with the brand and point-of-sale
presences. Together with the planned revision of ALNO's
marketing terms, this opens up new market opportunities
overall.
PurChasING
Regular "make or buy" analyses <strong>are</strong> undertaken systematically.
In addition to minimizing risks in conjunction with
suppliers' price increases, this also yields an opportunity
to cut costs. <strong>The</strong> first glass fronts for the ALNO brand
were also produced in-house in the year under review,
as the figures <strong>are</strong> economically more favourable than for
external purchasing.
loGIsTICs
Logistics competence is to be developed more strongly
as an in-house competence in the future. This applies in
respect of both scheduling and organizational know-how.
From today's vantage, it may be assumed that this will lead
to a reduction in fixed costs. In addition, transport costs
may also be reduced for structural reasons as planning
between the locations is optimized.
ProduCTIoN
<strong>The</strong> in-sourcing aspects already mentioned in conjunction
with purchasing also apply here. Reactivating component
production in Pfullendorf opens up further potential for
additionally in-sourcing carcase components. At the same
time, it allows the Group to "shift" production volumes
between the individual plants. Using the available production
capacities to produce furniture or vendor parts for
other companies is a further aspect. This is already successfully
being done in the case of components.
qualITY
Nonconformance costs <strong>are</strong> to reduced further, above and
beyond the volume planned. Through quality improvement
projects with the trade and further training courses for the
field staff, this will give ALNO an opportunity to reduce not
only the number of complaints, but also the corresponding
costs. <strong>The</strong> same also applies with regard to consistent
quality audits among suppliers permitting more specific
recourse action.
II. fuTure PersPeCTIves
Both the volume and the value of sales developed favourably
for the kitchen furniture industry in the financial year
2011. In the Group, sales were impaired among other
things by the fact that production in Enger had to be
changed over to the new Wellmann product sooner than
planned. Changes in the Board of Management made it
necessary to review and reassess individual activities. <strong>The</strong>
Board of Management essentially viewed the financial year
2011 as a year of consolidation for the Group's reorganization
and reorientation.
For 2012, it has been possible to raise prices for all brands
so that the erosion of margins due above all to higher
material prices can be compensated. A project group has
been set up to develop a new Group strategy. A second
team is working on an optimized production logic for the
respective locations. Reviewing and developing potential
cost savings is a third major <strong>are</strong>a of work. Following the
reorganization of our foreign business, the new objectives
can be implemented without delay in exports.
Making use of Group synergies in the production sector
and logistics will also help to improve our performance.
<strong>The</strong> brand positioning that is currently being implemented
will be consistently accompanied by corresponding priorities
in product development.
51

52 sinGLE-Entity and GRoup manaGEmEnt REpoRt | othER disCLosuREs
<strong>The</strong> Board of Management expects a significant improve-
ment in the development of sales and earnings in the new
financial year 2012. <strong>The</strong> ALNO Group's sales <strong>are</strong> expected
to increase in relation to 2011. Business is expected to
improve, particularly in other countries. <strong>The</strong> management also
expects a distinct improvement in EBITDA over the value of
EUR -19.8 million reported for 2011 after adjustment for the
extraordinary income from the waiver of repayment of EUR
25 million. This appraisal is so far confirmed by the quarterly
figures published for Q1/2012. From the point of view of the
Board of Management, 2012 will presumably be dominated
by the following issues: <strong>The</strong> brands' clear positioning is to be
continued consistently. This applies particularly for the brands
ALNO and WELLMANN. At the same time, production is to
become more flexible by creating a common technical platform
for the brands PINO and IMPULS; this has already been
done for ALNO and WELLMANN. Higher sales, especially
abroad, and further improvements in EBITDA <strong>are</strong> expected
for 2013.
For the segments ALNO, IMPULS and PINO, distinctly higher
sales and improved EBITDA <strong>are</strong> expected for 2012 in relation
to the value reported for 2011. Sales by the WELLMANN
segment <strong>are</strong> expected to be slightly lower than in 2011, but
EBITDA is nevertheless expected to improve strongly in 2012.
For 2013, the Board of Management expects higher sales
revenue and a further improvement in EBITDA for each of the
segments ALNO, IMPULS, PINO and WELLMANN.
other disclosures
I. deClaraTIoN oN CorPoraTe GoverNaNCe / rePorT
oN CorPoraTe GoverNaNCe
declaration on Corporate Governance (section 289a of
the German Commercial Code (hGB)) and report on
Corporate Governance
deClaraTIoN PursuaNT To seCTIoN 161 of <strong>The</strong> sToCK
CoMPaNIes aCT (aKTG)
Corporate governance stands for responsible, transp<strong>are</strong>nt
and orderly management and control of companies. <strong>The</strong>
purpose of the German Corporate Governance Code (hereinafter
referred to as "the Code") is to ensure that the rules
accepted in Germany for managing and controlling companies
<strong>are</strong> standardized for national and international investors
and systematically implemented to strengthen confidence
in the management of German companies. Section 161 of
the Stock Companies Act (AktG) obliges listed companies
to decl<strong>are</strong> every year that the company has been, and is,
in compliance with the recommendations or to advise of
any recommendations that have not been, or <strong>are</strong> not being,
applied and the reasons for this.
<strong>The</strong> Code was last reviewed and amended by the
"Government Commission on the German Corporate
Governance Code" in May 2010. This primarily led to
changes concerning membership of the Board of Management
and Supervisory Board. <strong>The</strong> Government Commission
on the German Corporate Governance Code reinforces the
intention to diversify these bodies and to ensure that women
receive due consideration.
<strong>The</strong> Board of Management and Supervisory Board of ALNO
AG explicitly welcome the Code's recommendations and their
objectives. Both Boards have once again devoted their attention
to the Code's recommendations and their objectives
and complied with these recommendations with only a few
exceptions. <strong>The</strong> joint declaration of compliance by the Board
of Management and Supervisory Board is set out below and
is also publicly accessible on the Internet at www.alno.de.

declaration pursuant to section 161 of the stock
Companies act (aktG) by the Board of Management
and supervisory Board of alNo aG concerning
the recommendations of the German Corporate
Governance Code:
Board of Management and Supervisory Board of ALNO AG
decl<strong>are</strong> that since the last declaration of compliance on 7
October 2010, the company has been, and is, in compliance
with the recommendations of the German Corporate
Governance Code (DCGK) in the version dated 26 May 2010
(published on 2 July 2010) with the following exceptions:
• <strong>The</strong> German Corporate Governance Code recommends
D&O insurance with deductible for members of the Supervi-
sory Board. ALNO AG continues to believe that a deductible
is not required in view of the Supervisory Board members'
responsibility and motivation in discharging their duties.
Contrary to the requirements in Section 3.8 of the Code,
the D&O insurance in force for members of the Supervisory
Board of ALNO AG therefore does not include a deductible.
• Section 4.2.5 of the Code recommends disclosure of
the total remuneration received by every member of the
Board of Management in a remuneration report explaining
the system of remuneration within the framework of the
report on Corporate Governance. ALNO AG has prep<strong>are</strong>d
a remuneration report. This report is published in the Notes
to the Annual Report, as these details constitute mandatory
information which must be disclosed in the Notes in accordance
with Section 314 (1) No. 6 of the German Commercial
Code (HGB). <strong>The</strong> remuneration report therefore does not
form part of the report on corporate governance. However,
the report on corporate governance contains a reference to
the remuneration report in the Notes to the annual financial
statements.
• Section 5.3.3 of the Code requires the establishment of a
nomination committee by the Supervisory Board to propose
suitable candidates whom the Supervisory Board can then
recommend for election by the Annual General Meeting. <strong>The</strong>
company's Supervisory Board has not set up such a committee,
as experience to date has not made it appear necessary
for the purpose of nominating suitable candidates.
• In the version dated 26 May 2010, Section 5.4.1 (2) and
(3) of the Code introduces recommendations according to
which the Supervisory Board is required to define specific
objectives with regard to its membership which, with due
regard for the company's specific situation, take account of
its international activities, potential conflicts of interest, an
age limit to be defined for the members of the Supervisory
Board and diversity. In particular, these specific objectives
should provide for a reasonable number of women. <strong>The</strong>se
sinGLE-Entity and GRoup manaGEmEnt REpoRt | othER disCLosuREs
objectives should be taken into account in the Supervisory
Board's nominations to the relevant election committees.
Establishment of the objectives and their implementation <strong>are</strong>
to be published in the report on corporate governance. <strong>The</strong>
Supervisory Board of ALNO AG has already issued a specific
target in the past as regards the maximum age of its members.
At the time of issuing this declaration of compliance,
the Supervisory Board is still internally considering which of
the other specific objectives mentioned in Section 5.4.1 (2)
of the Code might, with due regard for the specific situation
of ALNO AG, be of relevance for the Supervisory Board's
membership. When this internal analysis is complete, the
Supervisory Board will, if necessary, draw up further specific
objectives as regards its membership, in particular with
regard to a suitable number of women members. This constitutes
a temporary deviation from the recommendation in
Section 5.4.1 (2) of the Code. In view of the ongoing internal
discussion over whether and which specific objectives <strong>are</strong> to
be defined in addition to the age limit which is still continuing
at the time of issuing this declaration of compliance, further
objectives cannot be taken into account at present in nominations
for election. Corresponding notification in the report
on corporate governance is likewise not possible at present.
This consequently also constitutes a temporary deviation
from the recommendation in Section 5.4.1 (3) of the Code.
• <strong>The</strong> members of the Supervisory Board do not receive any
profit-oriented remuneration (Section 5.4.6 (2) of the Code,
first sentence). ALNO AG does not see any need to change
this at present in view of the Supervisory Board's controlling
and monitoring function. <strong>The</strong> remuneration paid by ALNO
AG to the members of the Supervisory Board for their personal
services is published in the Notes to the Annual Report
and is therefore not included in the report on corporate governance
(Section 5.4.6 (3) of the Code, second sentence).
• <strong>The</strong> consolidated financial statements <strong>are</strong> not yet published
within 90 days of the end of the financial year and the interim
report is not yet published within 45 days of the end of the
reporting period (Section 7.1.2 of the Code, third sentence).
It is planned to bring both the consolidated financial state-
ments and the interim report more into line with the required
deadlines.
Pfullendorf, 30 September 2011
Max Müller Henning Giesecke
For the
Board of Management
For the
Supervisory Board
53

54 sinGLE-Entity and GRoup manaGEmEnt REpoRt | othER disCLosuREs
relevant disclosures concerning management
duties and activities which go beyond the statutory
requirements
MIssIoN sTaTeMeNT of alNo aG
It is the decl<strong>are</strong>d aim of ALNO AG to undertake all business
dealings in an ethically and legally irreproachable manner.
On the basis of its "one company" concept, ALNO AG has
developed a mission statement which sets out the basis of its
corporate culture for employees and partners, represents the
company's corporate identity and describes the principles for
sustainable and socially responsible action.
GrouP GuIdelINes oN CoNduCT IN BusINess lIfe
ALNO AG has adopted internal Group guidelines defining its
conduct in business life. For all employees of the ALNO Group
(including the executive management level and Board of Management),
these guidelines not only specify basic behavioural
requirements, but also define relations with business partners
and third parties, the use of company facilities and the use
of data. In addition, the Group guidelines also address such
issues as the environment, occupational safety and health,
and the right to make complaints and receive information.
Compliance with the Group guidelines on conduct in business
life is regularly checked in all the Group's companies.
This is undertaken in compliance with the respective national
procedures and statutory requirements.
TraNsP<strong>are</strong>NCY aNd aCCouNTING
ALNO AG prep<strong>are</strong>s regular annual and interim reports, adhoc
bulletins and press releases for its sh<strong>are</strong>holders and the
interested public, informing them of the company's position
and essential changes in its business operations. <strong>The</strong> corporate
information published by the company is also posted on
the company's website and is publicly accessible on www.
alno.de.
Accounting in accordance with the International Financial
Reporting Standards (IFRS) was introduced for the financial
year 2005.
duties and activities of the Board of Management and
supervisory Board; membership, duties and activities
of their committees
Board of MaNaGeMeNT
On 31 December 2011, the Board of Management of ALNO
AG was made up of four members. <strong>The</strong> Board of Management
runs the company on its own responsibility. It is bound
by the company's interests and committed to sustainably
increasing the company's enterprise value. <strong>The</strong> members
of the Board of Management <strong>are</strong> appointed by the Supervisory
Board. <strong>The</strong> precise number of members making up the
Board of Management and, if necessary, its chairman and
his deputy <strong>are</strong> likewise designated by the Supervisory Board.
According to the Articles of Incorporation of ALNO AG, the
Board of Management must draw up rules of procedure
in consultation with the Supervisory Board. <strong>The</strong>se rules of
procedure define management of the business as a whole
and of individual business <strong>are</strong>as, the allocation of duties,
the duties of the Chief Executive Officer, the Board's duties
as regards informing the Supervisory Board and the manner
in which it deals with conflicts of interest. <strong>The</strong> Board of
Management meets regularly at short intervals to discuss
the development of business and adopt its resolutions. In
addition, the Board of Management regularly reports to the
Supervisory Board, with timely and comprehensive information
on all aspects of relevance to the company and its
planning, business development, ongoing projects, risk position
and risk management, and coordinates the company's
strategic orientation with the Supervisory Board.
suPervIsorY Board
<strong>The</strong> Supervisory Board of ALNO AG monitors and advises
the Board of Management in its running of the company and
participates in decisions of fundamental importance for the
company. As required by the German One-third Employee
Representation Act (DrittelbG), the Supervisory Board of
ALNO AG comprises six sh<strong>are</strong>holder representatives and
three employee representatives.
<strong>The</strong> Supervisory Board is also required by the Articles of
Incorporation to draw up its own rules of procedure. <strong>The</strong>se
govern, in particular, the convocation of meetings, the formation
and duties of the committees and the requirements to be
met by the members of the Supervisory Board. <strong>The</strong> Supervisory
Board meets at least twice per half-year. <strong>The</strong> chairman
of the Supervisory Board decides whether the members of
the Board of Management <strong>are</strong> to attend its meetings. Meetings
<strong>are</strong> convened with at least 14 days' notice. <strong>The</strong> agenda
topics and proposed resolutions <strong>are</strong> communicated together
with the invitation. In individual cases, the Supervisory Board
also adopts resolutions in a written circulating procedure or

through telephone conferences. <strong>The</strong> Supervisory Board does
not include any former members of the company's Board of
Management.
Each member of the Supervisory Board is obliged to disclose
any conflicts of interest immediately. Member of the Supervisory
Board <strong>are</strong> required to resign their position in the event
of significant and not merely temporary personal conflicting
interests.
<strong>The</strong> chairman of the Supervisory Board remains in regular
contact with the Board of Management and particularly with
the Chief Executive Officer, with whom he consults on the
company's strategy, business development and risk management.
In the report of the Supervisory Board and at the Annual General
Meeting, the chairman of the Supervisory Board gives
a detailed annual report on the activities of the Supervisory
Board and its committees.
<strong>The</strong> Supervisory Board has set up the following committees:
Presidial Committee and Audit Committee
Until 14 July 2011, the Presidial Committee prep<strong>are</strong>d the
meetings of the Supervisory Board, monitored the resolutions
adopted, was responsible for the employment contracts
signed with members of the Board of Management and their
remuneration, and represented the company in dealings with
former members of the Board of Management, insofar as
this was not the responsibility of the Board of Management
itself. Since 14 July 2011, the Presidial Committee has also
acquired and discharged further duties in addition to those
mentioned above. <strong>The</strong> Presidial Committee has consequently
analysed the company's ongoing business, advised the
Board of Management with regard to the strategic orientation
of the ALNO Group and Group companies, verified its implementation
and prep<strong>are</strong>d papers on the strategic orientation to
be adopted by the Supervisory Board, insofar as the activity
concerned required the consent of the Supervisory Board.
<strong>The</strong> Presidial Committee has three members:
• Mr. Henning Giesecke (chairman)
• Mr. Werner Devinck
• Dr. Jürgen Diegruber
<strong>The</strong> Audit Committee is mainly concerned with the preparation
of negotiations and resolutions by the Supervisory Board
on matters relating to the company's accounting, risk management
and compliance, the necessary independence of
the auditors, retaining the auditors, defining the focal points
sinGLE-Entity and GRoup manaGEmEnt REpoRt | othER disCLosuREs
of the audit and reaching agreement with the auditors on their
fee for the audit.
<strong>The</strong> Audit Committee has three members:
• Mr. Anton Walther (chariman)
• Dr. Jürgen Diegruber
• Mr. Jörg Kespohl
Further information on the members of the Board of Management
and Supervisory Board and on the remuneration paid
to the Board of Management can be found in Section J.
"Supervisory Board and Board of Management" of the Notes
to the annual financial statements in this Annual Report.
For their activities for the Supervisory Board, the members
of the Supervisory Board received total remuneration in the
amount of EUR 230,000 in the financial year 2011. This is
made up as follows:
2011 in '000 EUR
Henning Giesecke
(chairman) 45,000
Rudolf Wisser
(vice-chairman) 30,000
Werner Devinck 22,500
Dr. Jürgen Diegruber 25,000
Anton Walther 25,000
Jörg Kespohl 22,500
Gerhard Meyer 20,000
Ruth Falise-Grauer from 14 July 2011 10,000
Nobert Orth from 14 July 2011 10,000
Christoph Maass until 14 July 2011 10,000
Armin Weiland until 14 July 2011 10,000
230,000
<strong>The</strong> fees paid to members of the Supervisory Board for
their advisory activities <strong>are</strong> set out in Section J. "Supervisory
Board and Board of Management" of the Notes to the annual
financial statements in this Annual Report.
As at 31 December 2011 the members of the Supervisory Board
held a total of 106,666 sh<strong>are</strong>s. <strong>The</strong> members of the Board of
Management held 545,507 sh<strong>are</strong>s on 31 December 2011.
Further information on the company's management can
be found in the Articles of Incorporation of ALNO AG, which
<strong>are</strong> also publicly accessible on the company's website at
www.alno.de.
55

56 sinGLE-Entity and GRoup manaGEmEnt REpoRt | othER disCLosuREs
II. rePorT PursuaNT To seCTIoNs 289 (4) aNd 315
(4) of <strong>The</strong> GerMaN CoMMerCIal Code (hGB)
As the ALNO Group's p<strong>are</strong>nt, ALNO AG uses an organized
market within the meaning of Section 2 (7) of the German
Securities Acquisition and Takeover Act (WpÜG) for its
issued voting sh<strong>are</strong>s and therefore reports in accordance
with Sections 289 (4) and 315 (4) of the German Com-
mercial Code (HGB).
Composition of the subscribed capital
<strong>The</strong> subscribed capital totals EUR 67,846,945.40 as at
31 December 2011 and is divided into 26,094,979
no-par-value sh<strong>are</strong>s. <strong>The</strong> sh<strong>are</strong>s <strong>are</strong> issued as be<strong>are</strong>r
sh<strong>are</strong>s and fully paid up.
restrictions on voting rights or the transfer of
sh<strong>are</strong>s
Restrictions on voting rights or the transfer of sh<strong>are</strong>s exclu-
sively concern a voting commitment, even when associated
with agreements between sh<strong>are</strong>holders. In conjunction with
a Standstill and Sh<strong>are</strong>holder Agreement, IRE Beteiligungs
GmbH granted Küchen Holding GmbH an irrevocable
power of attorney to exercise the voting rights associated
with the sh<strong>are</strong>s held by IRE Beteiligungs GmbH at the discretion
of Küchen Holding GmbH. This voting agreement
was terminated on 30 January 2012. Further restrictions
<strong>are</strong> not known to the Board of Management. Each sh<strong>are</strong>
grants one vote in accordance with Article 22 of the Articles
of Incorporation.
direct or indirect equity interests
<strong>The</strong> equity interests applicable as at 31 December 2011
<strong>are</strong> summarized below on the basis of the last figures
reported to ALNO AG in accordance with the German
Securities Trading Act (WpHG):
Affiliated company
IRE Beteiligungs GmbH,
Schorndorf 1)
Bauknecht Hausgeräte
1), 2)
GmbH, Schorndorf
Whirlpool Greater China Inc.,
1), 3)
Benton Harbor, MI/USA
Küchen Holding GmbH,
Munich 4)
Milano Investments S.à r.l.,
Luxemburg, Luxemburg 5)
Sh<strong>are</strong> of voting
rights
holders of sh<strong>are</strong>s with special rights
Notification/
publication date
18.64 % 22.7.2010
18.64 % 22.7.2010
18.64 % 22.7.2010
54.14 % 23.3.2011
54.14 % 29.6.2011
<strong>The</strong>re <strong>are</strong> no sh<strong>are</strong>s with special rights authorizing control.
Type of voting control in the case of employee
holdings
<strong>The</strong> Board of Management does not know of any voting
control in the event that employees hold a sh<strong>are</strong> of the
capital and do not exercise their right of control directly.
_
1 In conjunction with a Standstill and Sh<strong>are</strong>holder Agreement, IRE
Beteiligungs GmbH granted Küchen Holding GmbH an irrevocable
power of attorney to exercise the voting rights associated with the
sh<strong>are</strong>s held by IRE Beteiligungs GmbH at the discretion of Küchen
Holding GmbH.
2 Pursuant to Section 22 (1), first sentence, No. 1 of the German Securities
Trading Act (WpHG), the voting rights of IRE Beteiligungs GmbH
<strong>are</strong> ascribed to Bauknecht GmbH.
3 Pursuant to Section 22 (1), first sentence, No. 1 of the German Securities
Trading Act (WpHG), the voting rights of Bauknecht GmbH <strong>are</strong>
ascribed to Whirlpool Greater China Inc.
4 Pursuant to Section 22 (1), first sentence, No. 6, of the German
Securities Trading Act (WpHG), 18.81% of the voting rights <strong>are</strong>
ascribed to Küchen Holding GmbH.
5 Of these voting rights, 35.33% <strong>are</strong> ascribed to Milano Investments
S.à.r.l. in accordance with Section 22 (1), first sentence, No.1 of the
German Securities Trading Act (WpHG) and 18.81% in accordance
with Section 22 (1), first sentence, No. 6, second and third sentences,
of the German Securities Trading Act (WpHG).

statutory regulations and provisions in the articles of
Incorporation concerning the appointment and dis-
missal of members of the Board of Management and
amendments to the articles of Incorporation
Members of the Board of Management <strong>are</strong> appointed and
dismissed in accordance with Section 84 of the Stock
Companies Act (AktG). Amendments to the Articles of
Incorporation <strong>are</strong> decided by the Annual General Meeting
in accordance with Sections 133 and 179 of the Stock
Companies Act (AktG). In Section 12 (2) in combination with
Section 12 (1) of the Articles of Incorporation, the Annual
General Meeting has exercised the option pursuant to Section
179 (1), second sentence, of the Stock Companies Act
(AktG) and authorized the Supervisory Board to undertake
changes which merely concern the version of the Articles of
Incorporation.
Power of the Board of Management to issue and buy
back sh<strong>are</strong>s
By resolution of the Ordinary General Meeting of ALNO AG
on 14 July 2011, the Board of Management was authorized
to increase the company's sh<strong>are</strong> capital with the consent of
the Supervisory Board on one or more occasions by up to
EUR 33,923,471.40 by issuing up to 13,047,489 no-par-value
ordinary sh<strong>are</strong>s in return for cash and/or non-cash contributions
until 13 July 2016 (authorized capital 2011). <strong>The</strong> authorized
capital was entered in the Register of Companies on
17 August 2011.
<strong>The</strong> Board of Management is authorized to undertake the
following actions with the consent of the Supervisory Board:
• to exclude sh<strong>are</strong>holders' subscription rights for fractional
amounts.
• to exclude the sh<strong>are</strong>holders' subscription rights as a whole
in order to offer the company's new sh<strong>are</strong>s to third par-
ties in return for non-cash contributions in conjunction with
business combinations or the acquisition of companies or
parts thereof, as well as with the acquisition of other assets,
including loans and other liabilities.
• to exclude the sh<strong>are</strong>holders' subscription rights if the cash
capital increase does not exceed 10% of the sh<strong>are</strong> capi-
tal and the issuing price is not significantly lower than the
market price of correspondingly endowed sh<strong>are</strong>s which <strong>are</strong>
already listed on the stock market.
• to exclude the sh<strong>are</strong>holders' subscription rights if necessary
in order to grant the holders of warrants or the creditors of
convertible bonds issued by the company or its subordinate
sinGLE-Entity and GRoup manaGEmEnt REpoRt | othER disCLosuREs
Group companies a subscription right to the new sh<strong>are</strong>s
commensurate with that accruing after exercising their
option or conversion rights or following the discharge of
conversion obligations.
As at 31 December 2011, the authorized capital had not
been drawn on and consequently still amounted to EUR
33,923,471.40.
<strong>The</strong> Annual General Meeting on 14 July 2011 decided on
a contingent capital increase. <strong>The</strong> Board of Management
was authorized to issue, on one or more occasions until 13
July 2016, cum-warrant and/or convertible bonds in a total
nominal amount of up to EUR 100,000,000.00 with a term of
up to 20 years either through the company or through companies
in which the company has a direct or indirect majority
holding ("subordinate Group companies") and to guarantee
such cum-warrant and/or convertible bonds issued by the
company's subordinate Group companies. <strong>The</strong> holders of
cum-warrant and/or convertible bonds must be granted
option and/or conversion rights for up to 13,047,489 no-parvalue
ordinary sh<strong>are</strong>s in the company with a prorated sh<strong>are</strong>
of up to EUR 33,923,471.40 in the company's sh<strong>are</strong> capital
in accordance with the respective terms and conditions of
the cum-warrant and/or convertible bonds ("conditions"). This
contingent capital increase may only be realized if option and/
or conversion rights <strong>are</strong> issued and only insofar as the holders
of the warrants or convertible bonds exercise their option
or conversion rights, or insofar as the bond holders with
conversion or option obligation also discharge their conversion
/ option obligation, and the contingent capital is needed
in accordance with the terms and conditions of the cumwarrant
or convertible bond. <strong>The</strong> new sh<strong>are</strong>s issued on the
basis of the option or conversion right exercised or through
discharge of the conversion or option obligation sh<strong>are</strong> in
profits as from the beginning of the financial year in which
they <strong>are</strong> created. <strong>The</strong> Board of Management was authorized
to specify further details, with the consent of the Supervisory
Board, concerning the realization of this contingent capital
increase (contingent capital 2011). As at 31 December 2011
the contingent capital had not been drawn on.
By resolution of the Annual General Meeting on 23 June 2010
and effective 24 June 2010, the Board of Management was
authorized to acquire own sh<strong>are</strong>s in accordance with Section
71 (1), No. 8, of the Stock Companies Act (AktG). <strong>The</strong>
authority to acquire sh<strong>are</strong>s up to 10% of the sh<strong>are</strong> capital on
the balance sheet at the time of the Annual General Meeting
remains valid until 22 June 2015.
57

58 sinGLE-Entity and GRoup manaGEmEnt REpoRt | othER disCLosuREs
Major changes subject to a change of control
following a takeover bid
<strong>The</strong>re were no such agreements as at the closing date.
Compensation agreements
Compensation agreements which would apply in the
event of a takeover agreement have not been concluded
between the company and members of the Board of Man-
agement or employees.
III. esseNTIal feaTures of <strong>The</strong> aCCouNTING-
relaTed INTerNal CoNTrol aNd rIsK
MaNaGeMeNT sYsTeM PursuaNT To seCTIoNs
289 (5) aNd 315 (2), No. 5, of <strong>The</strong> GerMaN
CoMMerCIal Code (hGB)
According to the reasoning of the German Act to Modern-
ise Accounting Law (BilMoG) which came into force on 29
May 2009, the internal system of controls encompasses
principles, methods and measures to assure the effective-
ness and cost-efficiency of accounting, to assure the due
and proper nature of the accounting and to ensure compli-
ance with the relevant legal regulations. This also includes
Group controlling insofar as it relates to the accounting.
As part of the internal system of controls and like the lat-
ter, the risk management system in conjunction with the
accounting process refers to processes controlling and
monitoring the accounting, especially in the case of items
in the commercial account which serve to hedge the com-
pany's risks.
Presentation and explanation of the main features
of the internal system of controls and of the risk
management system in conjunction with the
accounting process
<strong>The</strong> main features of the internal system of controls and
risk management system used by ALNO AG can be described
as follows in conjunction with the (Group) accounting
process:
• <strong>The</strong> ALNO Group is characterized by a clear organizational,
corporate, controlling and monitoring structure;
• Coordinated planning, reporting, controlling and early
warning systems and processes <strong>are</strong> in place throughout
the Group to ensure all-embracing analysis and management
of risk factors affecting earnings, as well as of risks
jeopardizing the company's survival;
• Functions <strong>are</strong> clearly assigned in all <strong>are</strong>as of the account-
ing process (e.g. financial accounting and controlling);
• <strong>The</strong> computer systems used in accounting <strong>are</strong> protected
against unauthorized access;
• Standard softw<strong>are</strong> is predominantly used in conjunction
with the financial systems used;
• An adequate internal system of guidelines (including
Group-wide risk management guidelines) is in place and
is adjusted when necessary;
• <strong>The</strong> departments involved in the accounting process
meet with the quantitative and qualitative requirements;
• <strong>The</strong> complete and correct nature of data in the account-
ing system is regularly verified with the aid of spot checks
and plausibility checks, using both manual controls and
the installed softw<strong>are</strong>. On the segment level, a risk controller
is established to accompany the risk management
process on the segment level and to verify the plausibility
of the data;
• For the consolidation, ALNO AG has set up processes to
reconcile intra-Group receivables and liabilities, as well
as income and expenses;
• External services (e.g. actuaries, experts, etc.) <strong>are</strong> con-
sulted in the case of essential, complex and discretionary
accounting issues;
• Essential processes relating to the accounting <strong>are</strong> subjected
to regular analytical checks;
• <strong>The</strong> double-checking principle is consistently applied in
all accounting-related processes;
• Accounting-related processes <strong>are</strong> checked by Group
controlling;
• Among other things, the Supervisory Board also
addresses essential issues concerning the accounting,
risk management, the audit mandate and its main
aspects.
In conjunction with the accounting process, the internal
system of controls and risk management assists the Board
of Management and Supervisory Board in ensuring compliance
with the statutory regulations.

Iv. BasIC PrINCIPles of <strong>The</strong> reMuNeraTIoN sYsTeM
PursuaNT To seCTIoNs 289 (2) No. 5 aNd 315 (2) No. 4
of <strong>The</strong> GerMaN CoMMerCIal Code (hGB)
Total remuneration for the members of the Board of Management
is in compliance with the statutory requirements
of the Stock Companies Act (AktG). <strong>The</strong> members of the
Board of Management receive a fixed remuneration which
also includes non-cash elements, especially the provision of
a company car. <strong>The</strong> fixed elements assure a basic level of
remuneration allowing each member of the Board of Management
to perform his or her duties in accordance with the
company's well-understood interests and the obligations of
a prudent business person, without becoming dependent
on the achievement of merely short-term targets. In addition,
their service contracts also include a variable premium
element which depends on the company's economic performance.
Further details including the personal emoluments <strong>are</strong> set
out in the report on remuneration, which can be found in the
Notes to the annual financial statements prep<strong>are</strong>d according
to the German Commercial Code (HGB) and in the Notes
according to IFRS. <strong>The</strong> report on remuneration is part of the
management report.
v. rePorT oN CoNTrolled CoMPaNIes
<strong>The</strong> Board of Management has drawn up the report on relations
with companies affiliated with ALNO AG (report on controlled
companies) for the financial year 2011 and presented
it to the auditors. <strong>The</strong> Board of Management decl<strong>are</strong>s that
for all the legal transactions listed in the report on relations
with affiliated companies, the company received a reasonable
consideration for each transaction in accordance with the
circumstances known to the Board at the time of undertaking
the transaction.
Pfullendorf, 11 June 2012
ALNO Aktiengesellschaft
Board of Management
Max Müller
Chief Executive Officer of ALNO AG
sinGLE-Entity and GRoup manaGEmEnt REpoRt | othER disCLosuREs
IPeK deMIrTas
Chief Financial Officer
elMar duffNer
Chief Operations Officer
59

60
Consolidated finanCial statements | CHaPteR
aBC

Consolidated finanCial statements | CHaPteR 61
ConsoLidatEd FinanCiaL statEmEnts
62 Consolidated income statement
63 Consolidated statement of comprehensive income
64 Consolidated balance sheet
65 Consolidated cash flow statement
66 Consolidated statement of changes in equity
67 notes to the consolidated financial statements

62 ConsoLidatEd FinanCiaL statEmEnts | ConsoLidatEd inComE statEmEnt
Consolidated income statement
of alNo aKTIeNGesellsChafT, PfulleNdorf, for <strong>The</strong> PerIod froM 1 JaNuarY To 31 deCeMBer 2011
in '000 EUR Notes 2011 2010
Sales revenue C. 1 452,810 467,297
Changes in inventories and capitalized <strong>good</strong>s and services for own account C. 2 882 – 1,993
Other operating income C. 3 6,270 7,062
Total operating revenues 459,962 472,366
Cost of materials C. 4 286,398 271,907
Personnel expenses C. 5 98,529 97,900
Other operating expenses C. 6 94,169 92,611
Income (expense) due to reorganization (-/+) C. 7 – 24,338 8,962
EBITDA 5,204 986
Write-downs on intangible assets, property, plant and equipment C. 8 15,902 12,104
Operating result – 10,698 – 11,118
Result from investments measured at equity D. 4 – 3,351 93
Financial income C. 9 72 10,382
Financial expenses C. 9 11,239 11,535
Financial result – 14,518 – 1,060
Profit/loss before income taxes – 25,216 – 12,178
Taxes on income (+ = expense / - = income) C. 10 345 906
Consolidated loss – 25,561 – 13,084
Earnings in EUR per sh<strong>are</strong> (diluted and undiluted) P – 1.04 – 0.78

ConsoLidatEd FinanCiaL statEmEnts | ConsoLidatEd statEmEnt oF CompREhEnsivE inComE
Consolidated statement of comprehensive income
of alNo aKTIeNGesellsChafT, PfulleNdorf, for <strong>The</strong> PerIod froM 1 JaNuarY To 31 deCeMBer 2011
in '000 EUR Notes 2011 2010
Consolidated loss – 25,561 – 13,084
Currency differences due to currency translation – 19 289
Actuarial gains and losses from pension provisions D. 11 – 1.299 – 873
Deferred taxes on actuarial gains and losses from pension provisions C. 10 204 169
Changes in the value of securities recognized outside profit or loss – 16 0
Deferred taxes on the change in value of securities recognized outside profit or loss C. 10 0 0
Other consolidated income – 1,130 – 415
Consolidated comprehensive income – 26,691 – 13,499
63

64 ConsoLidatEd FinanCiaL statEmEnts | ConsoLidatEd statEmEnt oF FinanCiaL position
Consolidated balance sheet
of alNo aKTIeNGesellsChafT, PfulleNdorf,as aT 31 deCeMBer 2011
in '000 EUR Notes 2011 2010
ASSETS
Intangible assets D. 1 5,989 5,088
Property, plant and equipment D. 2 73,490 72,278
Financial assets D. 3 3,168 3,431
At-equity investments D. 4 871 2,181
Financial accounts receivable D. 5 1,319 2,665
Deferred tax assets C. 10 0 0
Trade accounts receivable D. 6 1,283 636
Other assets D. 8 335 319
A. Non-current assets 86,455 86,598
Inventories D. 7 25,915 28,181
Trade accounts receivable D. 6 40,056 32,360
Other assets D. 8 4,953 7,511
Claims for income tax refunds C. 10 48 7
Liquid assets D. 9 2,243 3,041
B. Current assets 73,215 71,100
Total ASSETS 159,670 157,698
LIABILITIES
Subscribed capital D. 10. a 67,847 45,231
Capital reserve D. 10. b 45,916 42,437
Accumulated net income D. 10. c – 187,107 – 157,390
A. Sh<strong>are</strong>holders' equity – 73,344 – 69,722
Provisions for pensions D. 11 17,999 16,973
Deferred tax liabilities C. 10 350 257
Other provisions D. 12 3,192 3,773
Other financial liabilities D. 14 10,482 13,057
Deferred grants and subsidies from public authorities D. 15 756 781
Trade accounts payable and other financial liabilities D. 16 60 82
B. Non-current liabilities 32,839 34,923
Other provisions D. 12 5,627 7,712
Sh<strong>are</strong>holder loans D. 13 365 365
Other financial liabilities D. 14 99,082 73,130
Trade accounts payable and other financial liabilities D. 16 86,824 101,688
Other liabilities D. 17 8,269 9,408
Income tax liabilities C. 10 8 194
C. Current liabilities 200,175 192,497
Total LIABILITIES 159,670 157,698

Consolidated cash flow statement
ConsoLidatEd FinanCiaL statEmEnts | ConsoLidatEd statEmEnt oF Cash FLoWs
of alNo aKTIeNGesellsChafT, PfulleNdorf, for <strong>The</strong> PerIod froM 1 JaNuarY To 31 deCeMBer 2011
in '000 EUR Notes 2011 2010
Cash flow from operating activities
Consolidated loss – 25,561 – 13,084
Income taxes 345 906
Financial result 14,518 1,060
Write-downs on intangible assets, property, plant and equipment 15,902 12,104
Income taxes received 7 95
Income taxes paid – 282 – 215
Loss from the disposal of tangible and intangible assets 472 163
Interest received 55 93
Interest paid
Elimination of items without impact on cash flow
Change in other provisions, provisions for pensions
– 10,403 – 10,219
and deferred grants and subsidies from public authorities 1,207 5,197
Other income / expenditure without impact on cash flow – 24,056 1,639
Change in other provisions with impact on cash flow – 5,224 – 4,493
Cash flow from operating activities
before change in working capital – 33,020 – 6,754
Change in working capital
Change in inventories
Change in trade accounts receivable
2,266 – 3,457
and other assets – 9,156 11,870
Change in other liabilities
Net cash used in (previous year: provided for)
36,649 9,881
operating activities – 3,261 11,540
Cash flow from investment activities
Cash outflows for investment in
Intangible assets – 1,937 – 575
Property, plant and equipment – 16,660 – 15,220
Financial assets
Cash inflows from the disposal of
– 66 – 152
Property, plant and equipment 1,214 1,647
Financial assets 311 0
Net cash used for investment activities – 17,138 – 14,300
Cash flow from financing activities
Issuance of financial liabilities 0 1,500
Retirement of financial liabilities – 3,508 – 2,430
Change in current accounts and other financial liabilities – 613 – 5,089
Cash inflows from capital increases 26,095 10,000
Cash outflows for financing costs – 1,923 – 1,493
Net cash provided for financing activities 20,051 2,488
Change in cash and cash equivalents due to business activities – 348 – 272
Cash fund (cash and cash equivalents) at the beginning of the financial year 981 1,258
Change in cash and cash equivalents due to exchange rate movements 1 – 5
Cash fund (cash and cash equivalents) at the end of the financial year D. 9 634 981
65

66 ConsoLidatEd FinanCiaL statEmEnts | ConsoLidatEd statEmEnts oF ChanGEs in Equity
Consolidated statement of changes in equity
of alNo aKTIeNGesellsChafT, PfulleNdorf, for <strong>The</strong> PerIod froM 1 JaNuarY To 31 deCeMBer 2011
in '000 EUR
Subscribed
capital
Capital
reserve Accumulated net income Group equity
Consolidated
retained
earnings
Currency
translation
reserve
Other transa. outs. prof. or loss
Change in
provisions for
pensions
Change in
value of securities
Notes D.10. a D.10. b D.10. c D.10. c D.10. c D.10. c
1 January 2010 41,124 36,544 – 147,979 – 904 72 11 – 71,132
Consolidated loss – 13,084 – 13,084
Other consolidated income 289 – 704 0 – 415
Consolidated compreh. income – 13,084 289 – 704 0 – 13,499
Capital increase 4,107 5,893 10,000
Sh<strong>are</strong>holders' waivers of
repayment 4,909 4,909
Withdrawal from capital reserve
to offset loss – 4,909 4,909 0
31 December 2010 45,231 42,437 – 156,154 – 615 – 632 11 – 69,722
Consolidated loss – 25,561 – 25,561
Other consolidated income – 19 – 1,095 – 16 – 1,130
Consolidated compreh. income – 25,561 – 19 – 1,095 – 16 – 26,691
Capital increase 22,616 3,479 26,095
Transaction costs – 3,026 – 3,026
31 December 2011 67,847 45,916 – 184,741 – 634 – 1,727 – 5 – 73,344

notEs to thE ConsoLidatEd
FinanCiaL statEmEnts
of alNo aKTIeNGesellsChafT, PfulleNdorf,
for <strong>The</strong> fINaNCIal Year 2011
A. object of the company
ALNO Aktiengesellschaft, Pfullendorf (hereinafter simply
referred to as: "ALNO AG"), a listed stock corporation
according to German law, and its subsidiaries (hereinafter
simply referred to as the: "ALNO Group"), produce and
market fitted kitchens for the world market, predominantly
under the brand names ALNO, IMPULS, PINO and WELL-
MANN. We refer to the information in the single-entity and
group management report with regard to the Group struc-
ture and main activities of the ALNO Group. <strong>The</strong> Group is
<strong>based</strong> at Heiligenberger Strasse 47 in 88630 Pfullendorf,
Germany. <strong>The</strong> highest p<strong>are</strong>nt of ALNO AG is Milano Investments
S.à r.l., Esch-sur-Alzette, Luxemburg.
B. accounting policies
1. BasIs for PreParaTIoN of <strong>The</strong> fINaNCIal
sTaTeMeNTs
<strong>The</strong> 2011 consolidated financial statements of ALNO AG
have been prep<strong>are</strong>d in compliance with the standards
and interpretations of the International Financial Reporting
Standards Board (IASB), London, to be applied in the EU
and in effect on the closing date. <strong>The</strong> applicable further
requirements of Section 315a of the German Commercial
Code have also been taken into account.
All figures <strong>are</strong> stated in thousands of euros ('000 EUR),
unless stated otherwise.
<strong>The</strong> consolidated financial statements and Group management
report which has been combined with the management
report of ALNO AG were approved by the Board
of Management on 6 June 2012 to be forwarded to the
Supervisory Board.
<strong>The</strong> consolidated financial statements <strong>are</strong> prep<strong>are</strong>d on the
basis of a going concern and <strong>are</strong> <strong>based</strong> on the principle
of the historical amortized cost of acquisition, construction
or production, except for financial assets which <strong>are</strong>
recognized at fair value. <strong>The</strong> balance sheet is presented
ConsoLidatEd FinanCiaL statEmEnts | oBJECt oF thE Company
using the classification according to current (short-term)
and non-current (long-term) assets and liabilities. All items
which do not mature within one year <strong>are</strong> classified as noncurrent
assets or liabilities. Deferred taxes <strong>are</strong> likewise
posted as non-current assets and liabilities.
<strong>The</strong> prime objective of the Board of Management and
all corporate entities is to restore the company's <strong>good</strong>
financial health and to ensure that it is competitive and
profitable in the long term.
PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft
("PwC") was retained in early 2010 to prep<strong>are</strong> a reorganization
assessment for the ALNO Group in accordance
with statement IDW S6 of the German Institute of Auditors.
In their assessment of 24 June 2010, PwC confirmed the
ALNO Group's prognosis as a going concern as long as
financing is assured in accordance with the restructuring
agreement I of 23 April 2010 and as long as the required
measures <strong>are</strong> implemented within the framework of the
corporate planning.
In spring 2011, PwC was requested to undertake an update
of their reorganization assessment for the ALNO Group. In
the updated reorganization assessment of 13 May 2011,
PwC found that the ALNO Group is fully financed so far as
could be established at that time and subject to certain
conditions, and that there were no changes as regards
the statements made in the reorganization assessment of
24 June 2010. However, PwC did point out that the ALNO
Group's restructuring would take longer than had been
planned in the previous year.
In November 2011, PwC was requested to update their
reorganization assessment for the ALNO Group. Since
the operational and financial reorganization concept was
still in the planning stage, PwC was unable to make any
statement in their draft of 9 March 2012 as to the ALNO
Group's ability to be restructured and continued as a going
concern.
On the basis of this mandate, PwC was therefore requested
in late April 2012 to follow up on an existing analysis of
67

68 ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
the short-term liquidity planning until mid-July 2012 and
verify the plausibility of the Group's liquidity planning up
to mid-2013.
In mid-May 2012, the Board of Management success-
fully obtained written, non-binding declarations of intent
with liquidity and financing contributions in the amount
of up to EUR 106 million on the basis of its operational
and financial capitalization and financial concept (refer to
Section "N. Events after the closing date"). <strong>The</strong>se sums
will predominantly be used to repay accounts payable to
banks in the amount of between EUR 55 million and EUR
60 million. <strong>The</strong> objective of this repayment is essentially
to release significant collateral which the company can
then use to realize other external financing opportunities.
Other financial liabilities in the amount of EUR 14 million
have additionally been deferred until September 2013. All
the aforementioned liquidity and financing contributions
<strong>are</strong> subject to various conditions precedent, including first
and foremost the conclusion of a restructuring agreement
III obligating the major sh<strong>are</strong>holders, suppliers, banks and
other investors to make corresponding financial contributions.
In addition, the capitalization and financial concept also
stipulates that domestic credit insurers and suppliers must
not change their terms of payment to the disadvantage of
the company in relation to the present or planned level.
Local financing lines must be maintained as planned. <strong>The</strong>
existing factoring framework and the other insignificant
credit lines must remain in effect.
It is planned to conclude the restructuring agreement III
in mid-July 2012. Major parts of this agreement must be
definitively discharged before the end of July 2012. Further
contributions must be decided at the Annual General Meeting
scheduled for August 2012.
Due to the legal and financial complexity of the individual
financial contributions, as well as restrictions with regard to
time-limits, implementation of the restructuring agreement
entails risks which <strong>are</strong> not inconsiderable.
In their "Plausibility verification of liquidity planning up to
mid-2013" dated 29 May 2012, PwC stated that the feasibility
of all the concept's measures cannot be assessed on
the basis of the present stage reached in the negotiations.
However, they also state that the measures do not appear
to be evidently impossible.
On the basis of their so-called "Adjustment Case", PwC
confirmed in their report of 29 May 2012 that the company
is fully financed and Group liquidity assured for the
period up to July 2013 which was to be assessed for the
purpose of determining the company's continuation as a
going concern.
<strong>The</strong> continuation of business activities by ALNO AG and
the ALNO Group depends on timely implementation of the
aforementioned measures in the capitalization and financial
concept as planned, and on whether or not the conditions
and assumptions made in the corporate planning <strong>are</strong> met
or apply as planned. <strong>The</strong> Board of Management of ALNO
AG presumes that the aforementioned measures in the
capitalization and financial concept will be implemented on
schedule as planned, and that the conditions and assumptions
made in the corporate planning will be met or apply
as planned.
<strong>The</strong> continuation of business activities by ALNO AG and
the ALNO Group depends on the conditions and assumptions
mentioned above being met or applying as planned.
<strong>The</strong> Board of Management of ALNO AG presumes that
these conditions and assumptions will be met or apply
as planned.
2. ChaNGe IN aCCouNTING PolICIes
New standards to be applied
<strong>The</strong> amended standards which became mandatory in 2011
and the new or amended interpretations of the IASB have
been taken into account by the ALNO Group, insofar as
they have been endorsed by the European Union. <strong>The</strong> following
changes have been introduced:
• Amendment to IAS 24 – Related Party Disclosures
• Improvements to IFRS 2010
• Amendment to IAS 32 – Financial Instruments: Presenta-
tion
• Amendment to IFRIC 14 – Prepayment of Minimum Fund-
ing Requirements
• IFRIC 19 – Extinguishing Financial Liabilities with Equity
Instruments

<strong>The</strong> standards of relevance to the ALNO Group and their
consequences for the consolidated financial statements
<strong>are</strong> outlined below.
• Amendment to IAS 24 – Related Party Disclosures
<strong>The</strong> revised IAS 24 clarifies the definition of related compa-
nies and persons, as well as of the notifiable transaction;
in addition, it exempts government-controlled companies
from the duty to disclose transactions with the government
and other companies controlled by the same government
in certain cases. Both changes <strong>are</strong> without effect for the
consolidated financial statements of ALNO AG.
• Improvements to IFRS 2010:
This collection of amendments introduces changes to various
standards and interpretations. It affects the standards
IFRS 1, IFRS 3, IAS 1, IAS 27, IAS 34, IAS 21 and IFRIC
13. Except for the rulings specifically mentioned below,
these changes <strong>are</strong> without effect for the consolidated
financial statements:
IFRS 3 – Business Combinations: Limits the number of
measurement options. In future, sh<strong>are</strong>s without a controlling
interest establishing a current right of ownership and, in
the case of liquidation, entitlement to a percentage sh<strong>are</strong> of
the net assets, may be measured either at fair value or on
the basis of the percentage sh<strong>are</strong> of current ownership of
the identifiable net assets of the acquired business. Other
holdings without a controlling interest must be measured
at their fair value on the acquisition date.
IFRS 7 – Financial Instruments: Disclosures: <strong>The</strong> amendment
establishes that the qualitative disclosures on risks
associated with financial instruments must support and
explain the respective quantitative disclosures. Changes
concerning quantitative disclosures relating to the credit
risk provide for changed disclosures of financial assets with
regard to the amount best reflecting the maximum credit
risk. Some of the former disclosure requirements no longer
apply in this context.
ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
IAS 1 – Presentation of Financial Statements: Analysis of
other performance can be presented either in the consolidated
statement of changes in equity or in the Notes to the
consolidated financial statements in future.
IAS 34 – Interim Financial Reporting: <strong>The</strong> standard lists
additional events to be reported, but states that the list is
not exhaustive.
• IFRIC 19 – Extinguishing Financial Liabilities with Equity
Instruments
<strong>The</strong> interpretation establishes that equity instruments
issued to a creditor to extinguish a financial liability <strong>are</strong>
deemed to be "consideration paid". <strong>The</strong> equity instruments
issued <strong>are</strong> measured at fair value. If the fair value cannot
be reliably determined, measurement must be <strong>based</strong> on
the fair value of the extinguished liability. Gains and losses
<strong>are</strong> immediately recognized as income. This interpretation
must be noted retrospectively and can apply for the ALNO
Group, depending on further restructuring agreements.
Published accounting standards that <strong>are</strong> not yet
applied
<strong>The</strong> following standard has been amended by the IASB and
endorsed by the European Union, but its application is not
yet mandatory and it has not been applied prematurely. <strong>The</strong>
amendment applies for reporting periods beginning on or
after the amendment comes into force.
• Amendment to IFRS 7 – Financial Instruments: Disclo-
sures (effective date: 1 July 2011; retrospective)
<strong>The</strong> amendment to IFRS 7 provides for additional disclo-
sures on transactions concerning the transfer of financial
assets. Attention focuses particularly on the risks remaining
with the transferring party. Further disclosure requirements
apply for reporting periods towards the end of which a dis-
proportionately large number of transfers <strong>are</strong> undertaken.
First-time application of these amendments will affect
the disclosures in the Notes to the consolidated financial
statements insofar as financial assets <strong>are</strong> transferred and
the Group retains at least some of the risks and rewards
associated with ownership of the assets.
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<strong>The</strong> following new standards and interpretations issued by
the IASB, as well as amendments to existing standards,
have not yet been endorsed by the European Union. <strong>The</strong>ir
application is not yet mandatory and they <strong>are</strong> not applied
prematurely on a voluntary basis.
• IFRS 9 – Financial Instruments: Classification and measurement
(effective date: 1 January 2015; retrospective)
• IFRS 10 – Consolidated Financial Statements (effective
date: 1 January 2013; retrospective)
• IFRS 11 – Joint Arrangements (effective date: 1 January
2013; retrospective)
• IFRS 12 – Disclosure of Interests in Other Entities (effective
date) 1 January 2013; retrospective)
• IFRS 13 – Fair Value Measurement (effective date: 1 Janu-
ary 2013; retrospective)
• Revised version of IAS 27 – Single-entity Financial
Statements (effective date: 1 January 2013;
retrospective)
• Revised version of IAS 28 – Investments in Associates
and Joint Ventures (effective date: 1 January 2013;
retrospective)
• Amendment to IAS 1 – Presentation of Financial
Statements (effective date: 1 July 2012; retrospective)
• Revised version of IAS 12 – Income Taxes (effective date:
1 January 2012; retrospective)
• Amendment to IAS 19 – Employee Benefits (effective
date: 1 January 2013; retrospective)
• Amendment to IFRS 7 and IAS 32 – Financial Instru-
ments: Offsetting Financial Assets and Financial Liabili-
ties (effective date: 1 January 2013 and 1 January 2014;
retrospective)
• IFRIC 20 – Stripping Costs in the Production Phase of
a Surface Mine (effective date: 1 January 2013; retro-
spective)
• Improvements to IFRS 2011 (effective date: 1 January
2013; retrospective)
<strong>The</strong> amendments apply for financial years beginning on or
after the amendments come into force. <strong>The</strong> standards of
relevance to the ALNO Group and their consequences for
the consolidated financial statements <strong>are</strong> outlined below.
• IFRS 9 – Financial Instruments: Classification and
Measurement:
This standard was issued by the IASB as the first part of
a project fundamentally revising the accounting treatment
of financial instruments and contains new requirements
for the classification and measurement of financial assets
and liabilities. Financial assets must now either be recognized
at the amortized cost of acquisition or reported
at fair value as income. Equity instruments must always
be recognized at fair value. In the case of new additions,
however, fluctuations in the value of equity instruments can
instead be recognized outside profit or loss if preferred. In
this case, only dividend payments would be recognized
as income. At present, changes in the value of securities
recognized at fair value (debt instruments) <strong>are</strong> recognized
in equity outside profit or loss in the consolidated financial
statements. As a result of the changes introduced by IFRS
9, these changes in value will be posted in the income
statement when IFRS 9 comes into effect. Due to the small
scope of changes in value recognized outside profit or loss
to date, application of the new standard will not have any
material effect on the consolidated financial statements
of ALNO AG.
On 28 October 2010, the IASB published the revised
standard IFRS 9 which has been extended to include
financial liabilities. Where possible, all financial liabilities
<strong>are</strong> basically to be measured at the amortized cost of
acquisition. Fair value measurement through profit or loss
is now only permitted for derivatives which represent a
liability for the accounting entity. IFRS 9 will lead to material
changes above all as regards the fair value option for
financial liabilities. Since this option is not exercised by
the ALNO Group, application of the new standard is not
expected to have any impact on the consolidated financial
statements of ALNO AG.
• IFRS 10, 11 and 12 – New rules on consolidation:
With IFRS 10, 11 and 12, the IASB has published three
new standards, as well as two revised standards – IAS 27
and 28 – for reporting business combinations.
IFRS 10 is the result of the "Consolidation" project and will
replace the consolidation guidelines in IAS 27 and SIC-12.
<strong>The</strong> standards to be applied to IFRS single-entity financial
statements remain unchanged in IAS 27. IFRS 10 focuses
on the introduction of a uniform consolidation model for all
entities, <strong>based</strong> on control of the subsidiary by the p<strong>are</strong>nt.
<strong>The</strong> concept of control must consequently be applied not

only to p<strong>are</strong>nt-subsidiary relations <strong>based</strong> on voting rights,
but also to p<strong>are</strong>nt-subsidiary relations <strong>based</strong> on other con-
tractual agreements. <strong>The</strong> concept of control must therefore
be applied in future to special purpose entities which <strong>are</strong>
currently consolidated according to the concept of risks
and rewards.
IFRS 11 was developed from the "Joint Ventures" project
and will replace IAS 31. Quota consolidation will be abolished
when IAS 31 becomes ineffective. Parallel changes in
terminology and classification must be taken into account,
with the result that not all joint ventures which <strong>are</strong> currently
included in the scope of quota consolidation need be
reported at equity in future. <strong>The</strong> equity method is applied in
accordance with the requirements of IAS 28 incorporating
subsequent amendments.
IFRS 12 combines the revised disclosure requirements of
IAS 27, IFRS 10, IAS 31, IFRS 11 and IAS 28 in a single
standard,
Whether the inclusion of special purpose entities will change
under the new requirements is currently being investigated.
<strong>The</strong> elimination of quota consolidation for joint ventures will
have no impact on the consolidated financial statements, as
the joint venture is already accounted for using the equity
method.
• IFRS 13 – Fair Value Measurement:
<strong>The</strong> new standard rounds off the project to establish a
uniform, all-embracing standard for measurement. IFRS
13 defines the procedure to be applied for measurement
at fair value insofar as fair value measurement (or fair value
disclosure) is stipulated by another IFRS. IFRS 13 does not
specify what is to be measured at fair value. According to
the new definition of fair value, fair value is characterized as
being the selling price of an actual or hypothetical transaction
between any two independent market-players under
standard market conditions. <strong>The</strong> standard is almost allembracing,
only IAS 17 and IFRS 2 <strong>are</strong> excluded. While the
scope of these requirements remains almost unchanged for
financial instruments, it is now defined more comprehensively
and more precisely for other assets (e.g. investment
property, intangible assets, property, plant and equipment).
Where financial instruments <strong>are</strong> concerned, the effect of
market and credit risks can now be included in the fair value
of a portfolio on balance, insofar as a relationship between
such effects can be proved. <strong>The</strong> familiar 3-stage fair value
hierarchy must be applied throughout. Two checks must
now be performed for "declining market activities" (previously
"inactive markets), namely (a) whether trade activities
ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
have declined and (b) whether subsequent transactions
actually undertaken were not in conformity with the market:
a price deviating from the market price is only permitted if
both <strong>are</strong> affirmed.
Due to the small scope of financial assets recognized at
fair value, we do not expect any material impact on the
consolidated financial statements.
• Amendment to IAS 1 – Presentation of Financial Statements:
This amended standard introduces new requirements as
regards the presentation and development of other operating
results. <strong>The</strong> individual elements making up the other
operating result must consequently be classified according
to whether or not they <strong>are</strong> subsequently reclassified
in the income statement (so-called recycling process).
Compliance with this requirement will result in changed
presentation of the statement of comprehensive income
in future. This will not have any impact on the financial
position and results of operations
• Amendment to IAS 19 – Employee Benefits:
<strong>The</strong> revised version of IAS 19 will completely replace the
former standard. <strong>The</strong> most important change concerns
abolition of the corridor method. In future, all changes in
defined benefit obligations and the fair value of plan assets
must be recognized in full in the period in which they arise,
with the result that pension provisions <strong>are</strong> now recognized
in the balance sheet in their full amount. Another
new requirement concerns the presentation of changes in
defined benefit obligations and plan assets in the income
statement. <strong>The</strong> change in net liability must be subdivided
into three elements in future. Current service costs and
net interest cost must in future be reported in the income
statement under personnel expenses and financial result
respectively. <strong>The</strong> third element, the so-called remeasurement
component, essentially comprises actuarial gains
and losses and must be recognized outside profit or loss
under other operating results. Recognition and measurement
of employee termination payments will be affected
by changes to the accounting of termination payments,
including a distinction between payments in return for
services rendered and payments in return for termination
of the employment relationship. Disclosure requirements
<strong>are</strong> also extended by IAS 19. Since actuarial gains and
losses <strong>are</strong> already recognized in equity, the new accounting
requirements will not have any material impact on the
net assets, financial position and results of operations of
the ALNO Group. <strong>The</strong> changed accounting requirements
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for employee termination payments will primarily affect the
recognition and measurement of additional sums to top up
pre-retirement part-time working arrangements.
• Improvements to IFRS 2011:
This collection of amendments introduces changes to vari-
ous standards and interpretations. Except for the rulings
specifically mentioned below, these changes <strong>are</strong> without
effect for the consolidated financial statements:
IAS 1 – Presentation of Financial Statements: Compara-
tive information: <strong>The</strong> proposed amendment establishes
that, above and beyond the comparative period for which
disclosure is mandatory, only individual items of comparative
information need be disclosed voluntarily without at
the same time creating an obligation to disclose a complete
comparative financial statement. In addition, it also
establishes that, when accounting policies <strong>are</strong> changed
retroactively or when balance sheet items <strong>are</strong> adjusted
or reclassified retroactively, the third balance sheet for
which disclosure is mandatory must always be prep<strong>are</strong>d
at the start of the comparative period for which disclosure
is mandatory. Notes to this balance sheet <strong>are</strong> no longer
mandatory.
IAS 32 – Financial Instruments: Presentation: <strong>The</strong> proposed
amendment eliminates the conflict between IAS 32 and IAS
12 "Income Taxes" with regard to recognition of the tax
consequences of dividend payments and transaction costs
resulting from the issue and retirement of equity instruments.
<strong>The</strong>se must be reported in compliance with IAS 12.
IAS 34 – Interim Financial Reporting: Segment assets and
segment liabilities need only be disclosed in the interim
report if the disclosure forms the subject of regular reporting
to the main decision-making body of the entity. This
proposed amendment brings the disclosure requirements
of IAS 34 into line with those of IFRS 8 "Operating Segments".
3. CoNsolIdaTIoN PrINCIPles
scope of consolidation
Group p<strong>are</strong>nt is the company ALNO AG which is entered
in the Register of Companies of Ulm Local Court (HRB
727041). As in the previous year and in accordance with
the principles of full consolidation, the consolidated financial
statements as at 31 December 2011 include not only
ALNO AG, but also nine German and three foreign companies
in which ALNO AG directly or indirectly holds up to
100% of the sh<strong>are</strong> capital.
In addition and again as in the previous year, two special
purpose entities in which ALNO AG exercises financial
control over the companies <strong>are</strong> also fully consolidated as
permitted by IAS 27 in combination with SIC 12. ALNO AG
holds 100% of the sh<strong>are</strong>s in both companies, but does not
have any voting rights under the partnership agreements.
ALNO Middle East FZCO, Dubai/UAE (ALNO Middle East),
(50% holding), is included in the consolidated financial
statements according to the equity method.
Consolidation policies
All companies included in the consolidated financial state-
ments prep<strong>are</strong> their annual financial statements as per the
closing date of the single-entity financial statements of
ALNO AG, i.e. as per the closing date of the consolidated
financial statements. <strong>The</strong> consolidated financial statements
<strong>are</strong> prep<strong>are</strong>d on the basis of uniform recognition and meas-
urement policies in compliance with the IFRS requirements
to be applied in the EU.
Capital consolidation is effected in accordance with IFRS
3 using the acquisition method. At the time of acquiring
control, the subsidiary's new measured assets and liabilities,
as well as contingent liabilities insofar as they <strong>are</strong> not
contingent on a future event, <strong>are</strong> offset at the fair value of
the consideration paid for the asset or liability. Contingent
purchase price payments <strong>are</strong> included in the fair value of
the consideration to be paid in the expected amount and
carried as liabilities. Subsequent adjustments in contingent
purchase price payments <strong>are</strong> recognized as profit or loss.
Incidental costs associated with the acquisition <strong>are</strong> carried
as expenses at the time incurred.

A remaining asset-side balancing item is recognized as
<strong>good</strong>will. <strong>The</strong> unimpaired status of capitalized <strong>good</strong>will is
checked within the framework of an impairment test as
at the closing date. Negative differences resulting from
capital consolidation <strong>are</strong> recognized as income in the
consolidated income statement.
Income and expenses and accounts receivable and payable
between consolidated companies <strong>are</strong> eliminated,
as <strong>are</strong> provisions. Interim results in the fixed assets and
inventories from intra-Group deliveries <strong>are</strong> eliminated.
Deferred taxes <strong>are</strong> recognized on consolidation measures
with impact on profit or loss. Intra-Group guarantees <strong>are</strong>
eliminated.
Entities <strong>are</strong> no longer included in the consolidated financial
statements when the p<strong>are</strong>nt's control ends.
Currency translation
<strong>The</strong> consolidated financial statements <strong>are</strong> prep<strong>are</strong>d in
euros, the functional currency of ALNO AG.
<strong>The</strong> annual financial statements of foreign subsidiaries
<strong>are</strong> translated into euros according to the functional cur-
rency concept pursuant to IAS 21. Since all consolidated
companies pursue their business independently, the
functional currency is always the currency of the country
concerned. Assets and liabilities <strong>are</strong> therefore translated
at the exchange rate on the closing date; items in the
consolidated income statement <strong>are</strong> translated at the aver-
age exchange rate of the year; equity is recognized at
historical rates. Differences resulting from application of
the different foreign exchange rates <strong>are</strong> recognized outside
profit or loss.
Differences due to currency translation of intra-Group
accounts receivable and payable in foreign currency, which
<strong>are</strong> neither scheduled nor expected to be settled within
a foreseeable period of time, <strong>are</strong> recognized in the con-
solidated financial statements outside profit or loss under
the provision from currency translation in accordance with
IAS 21.32.
Monetary assets and liabilities in foreign currency <strong>are</strong>
posted in the single-entity financial statements at the
exchange rate on the transaction date and translated at
the closing rate on each closing date. Currency differences
<strong>are</strong> recognized as income and reported under other
operating income and expenses. Non-monetary foreign
ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
currency items <strong>are</strong> translated at the exchange rate on the
transaction date.
Exchange losses <strong>are</strong> set off against exchange gains for
presentation in the consolidated income statement.
<strong>The</strong> following exchange rates <strong>are</strong> applied for translating
foreign currencies to euros:
per
EUR 31.12.2011 31.12.2010
Average
rate 2011
Average rate
2010
GBP 0.8379 0.8567 0.8682 0.8589
CHF 1.2169 1.2466 1.2336 1.3833
4. suMMarY of MaIN aCCouNTING PolICIes
Consideration of earnings
Sales <strong>are</strong> posted at the date on which risk is transferred
following delivery on the basis of the terms of sale, minus
returns, volume and price discounts and value-added tax.
Only the product sales resulting from ordinary business
activities and the associated accessory services <strong>are</strong> recognized
as sales.
Earnings from services rendered <strong>are</strong> recognized in
accordance with the degree of completion, if the amount
of income can be reliably determined and receipt of the
economic benefit can be expected.
Other earnings <strong>are</strong> realized in accordance with the contractual
agreements and on completion of the service.
financial result
<strong>The</strong> financial result essentially comprises interest income
from cash investments and interest expenses for loans.
Interest received and paid is recognized as income at the
time of creation.
Cost of financing is capitalized as part of the cost of
acquisition or production, insofar as it can be assigned
to a qualified asset. In all other cases, it is immediately
recognized as an expense.
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Income taxes
As required by IAS 12, income tax refunds and liabilities for
the current and prior periods <strong>are</strong> measured in the expected
amount of the refund from, or payment to, the tax authorities.
Amounts <strong>are</strong> calculated on the basis of the tax rates
and tax laws in force on the balance sheet date.
In addition, the deferred income tax reliefs or burdens to
be calculated in compliance with IAS 12 from temporary
differences between the carrying values recognized in the
consolidated financial statements prep<strong>are</strong>d according to
IFRS and their local tax bases, as well as from consolidation
measures, <strong>are</strong> recognized as either deferred tax assets or
deferred tax liabilities. Deferred tax assets <strong>are</strong> additionally
recognized on tax loss carryforwards if it is sufficiently
probable that the resultant tax reliefs will actually occur
in the future. <strong>The</strong> soundness of deferred tax assets on
tax loss carryforwards is assessed on the basis of the tax
planning for the next four years. Recognition of deferred
tax assets also takes account of the existence of temporary
differences to be taxed in conjunction with the same tax
authorities and the same tax subject.
Deferred taxes <strong>are</strong> calculated on the basis of the tax rates
in force in the various countries at the time of realization
or to be expected with reasonable probability according
to the present legal situation.
<strong>The</strong> carrying amount of deferred tax assets is checked on
each closing date and reduced to the extent that adequate
taxable income which can at least partly be set off against
the deferred tax entitlement no longer appears probable.
Unrecognized deferred tax entitlements <strong>are</strong> checked on
each closing date and recognized to the extent that future
taxable income makes realization of the deferred tax entitlement
probable.
Deferred tax assets and liabilities <strong>are</strong> netted when the
conditions have been met for setting off taxes receivable
against taxes payable.
In addition, deferred tax assets and liabilities <strong>are</strong> not recognized
when they result from first-time recognition of <strong>good</strong>will
or of an asset or liability associated with a transaction
not relating to a business combination, and when such
first-time recognition impacts neither the reported Profit/
loss before income taxes nor the taxable income.
Deferred taxes relating to items which <strong>are</strong> directly recognized
in equity <strong>are</strong> reported in equity and not in the
consolidated income statement.
Turnover tax
Income, expenses, intangible assets and property, plant
and equipment <strong>are</strong> recognized after deduction of turno-
ver tax, insofar as the turnover tax can be collected or
is refunded by a tax authority. Accounts receivable and
payable <strong>are</strong> recognized inclusive of turnover tax. Provisions
<strong>are</strong> carried as liabilities without considering turnover tax.
<strong>The</strong> amount of turnover tax refunded by, or payable to,
a tax authority is reported under other assets and other
liabilities.
Intangible assets
Purchased and self-generated intangible assets <strong>are</strong> capitalized
in compliance with IAS 38 at their acquisition or
production cost if use of the asset is probably associated
with future economic benefit and the costs of the asset
can be reliably determined.
<strong>The</strong> cost of production of intangible assets exclusively
comprises directly attributable costs.
With regard to the reporting and measurement of <strong>good</strong>will,
we refer to the information provided on consolidation policies,
as well as to the information in the Section "Impairment
test for <strong>good</strong>will".
Other intangible assets – predominantly softw<strong>are</strong> and other
industrial property rights – <strong>are</strong> recognized at acquisition
cost and amortized in accordance with their useful life of
two to ten years.
Carrying amounts, useful life and amortization methods <strong>are</strong>
reviewed at the end of each financial year and adjusted
if required.
Research costs and development costs which cannot be
capitalized <strong>are</strong> recognized as expense items at the time
incurred.

An intangible asset is derecognized either on disposal or
when further use or sale of the asset is not expected to
yield any further economic benefit. Gains or losses result-
ing from the disposal of assets <strong>are</strong> calculated as the differ-
ence between net proceeds from sale and carrying amount
of the asset and recognized as income in the income state-
ment in the period in which the asset is derecognized.
Property, plant and equipment
Property, plant and equipment <strong>are</strong> measured at acquisition
or production cost in compliance with IAS 16, minus
amortization, depreciation and impairment losses.
<strong>The</strong>y <strong>are</strong> written down on a straight-line basis and pro
rata temporis in accordance with the following estimated
useful economic life:
Years
Buildings 25 – 60
Machinery, factory and office equipment 2 – 25
Computer systems 3 – 7
Property, plant or equipment is derecognized either on
disposal or when further use or sale of the asset is not
expected to yield any further economic benefit. Gains or
losses resulting from the disposal of assets <strong>are</strong> calculated
as the difference between net proceeds from sale and carrying
amount of the asset and recognized as income in the
income statement in the period in which the asset is
derecognized.
Carrying amounts, useful life and amortization methods <strong>are</strong>
reviewed at the end of each financial year and adjusted
if required.
Government grants and subsidies do not lead to a reduction
in the cost of acquisition of the relevant assets, but
<strong>are</strong> instead carried as deferred liabilities in compliance with
IAS 20.24 and reversed as income over the useful life of
the subsidized assets.
ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
finance leases
ALNO AG is lessee of factory and office equipment. In
compliance with IAS 17, economic ownership of the leased
assets must be attributed to the lessee if the latter acquires
all the main risks and rewards associated with the asset
(finance lease). All leased assets which <strong>are</strong> classified as
belonging to a finance lease <strong>are</strong> capitalized in the consolidated
financial statements at the lower of the fair value and
present value of the lease payments. Leased assets <strong>are</strong>
depreciated by the straight-line method over the shorter
of their useful life or the lease term
Impairment tests
IMPaIrMeNT TesT for GoodWIll
Goodwill from business combinations is attributed to the
cash generating units benefiting from the combinations.
<strong>The</strong> <strong>good</strong>will ascribed to ALNO AG in previous years in the
amount of EUR 2,535 thousand was fully adjusted following
the impairment test performed in the financial year 2009.
<strong>The</strong> complete remaining <strong>good</strong>will in the ALNO Group in
the amount of EUR 1,483 thousand is attributed to the
CASAWELL Group. <strong>The</strong> CASAWELL Group comprises
Gustav Wellmann GmbH & Co. KG and its subsidiaries.
<strong>The</strong> unimpaired status of <strong>good</strong>will is determined on the
basis of impairment tests at year-end and also during the
year if there <strong>are</strong> any signs of an impairment.
When performing impairments tests to IAS 36, the recoverable
amount is determined for the cash generating unit
concerned.
<strong>The</strong> recoverable amount is the higher of the fair value of
the cash generating unit minus costs to sell or value in use.
<strong>The</strong> value in use is equal to the present value of future
cash flows expected from continued use of the cash generating
unit and its disposal at the end of its useful life.
<strong>The</strong> value in use is determined in compliance with IAS 36
using the discounted cash flow method <strong>based</strong> on data
from the authorized corporate planning after correction
for investment in expansion and planned reorganization.
<strong>The</strong> planning horizon always covers four years. In the case
of the cash generating unit ALNO, the planning horizon
was extended by an additional period, as the first four
years only displayed negative targets. Cash flows <strong>are</strong> discounted
using the weighted average capital cost (WACC)
for a group of comparable entities, taking into account the
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risk-free base rate, premium for market risks (multiplied by
the beta-factor), growth discount in the perpetual annu-
ity, cost of borrowing and capital structure. Forecasting
of the cash flows is <strong>based</strong> on the results calculated for
the individual Group companies within the context of a
detailed planning process using internal empirical values
and external economic figures.
<strong>The</strong> fair values after deduction of the costs to sell <strong>are</strong> cal-
culated on the basis of expert appraisals or on the basis
of best-possible internal estimates of the selling price that
can realistically be expected.
An impairment is recognized when the recoverable amount
is lower than the carrying amount of the cash generating
unit. A reversal of <strong>good</strong>will impairment is not undertaken,
in compliance with IAS 36.
Corporate planning is essentially <strong>based</strong> on the following
assumptions:
A change in sales from 9.4% to 22.7% was assumed for
ALNO AG (including special purpose leasing companies).
This assumption is <strong>based</strong> on a change in the volume of
sales of between 3.3% and 4.7% p.a. in Germany and
between 11.8% and 13.7% p.a. abroad, as well as on
adjustments in prices between 3.9% and 7.1% p.a. in
Germany and between 1.9% and 6.6% p.a. abroad. In
the case of purchasing prices, material costs <strong>are</strong> expected
to rise by 11.3% per unit in 2012 and by between 0.1%
and 1.8% p.a. per unit from 2013 onwards. An annual
increase of between 0.4% p.a. and 8.2% p.a. with a growing
number of employees was assumed when planning
personnel costs.
A change in sales from -0.9 % to 8.8 % was assumed
for the CASAWELL Group. This assumption is <strong>based</strong> on
a change in the volume of sales of between -8.1 % and
5.3 % p.a. in Germany and between 4.2 % and 13.5 %
p.a. abroad, as well as on adjustments in prices between
3.4 % and 5.3 % p.a. in Germany and between 1.9% and
4.2 % p.a. abroad. In the case of purchasing prices, material
costs <strong>are</strong> expected to decline by 4.6 % per unit in
2012 and to increase by between 1.2 % and 1.6 % p.a.
per unit from 2013 onwards. An annual change of between
-1.9 % p.a. and 2.6 % p.a. with a slightly lower number of
employees was assumed when planning personnel costs.
Safety margins in the amount of 10% to 20% were
deducted from the free cash flows calculated during the
planning process.
On the basis of these cash flow forecasts, the value in
use was determined for the cash generating units, applying
a capital cost factor of 10.02% (previous year: 7.83%)
before income tax for ALNO AG and 10.55% (previous year:
10.66%) for the CASAWELL Group. A risk-free interest rate
of 2.75% (previous year: 3.25%), a premium of 5.5% (previous
year: 5.0%) on market risks and a beta-factor <strong>based</strong>
on the average for comparable companies equal to 1.42
(previous year: 1.10) were assumed for the financial year
2011. <strong>The</strong> cost of borrowed capital before taxes on income
equalled 4.01% (previous year: 5.67%) <strong>based</strong> on the average
for comparable companies. An effective tax rate of
28.0% (previous year: 28.0%) was assumed in the applied
consideration of input tax. At 77% to 23% (previous year:
83% to 17%), the ratio of equity to borrowed capital is in
keeping with the average capital structure of comparable
companies.
A growth rate of 1% is assumed for the following cash
flows after the end of the four or five-year planning horizon.
This growth rate matches the long-term average growth
rate in the kitchen furniture industry.
Summary of cash generating units:
in '000 EUR ALNO CASAWELL
Carrying amount 17,658 21,291
Value in use – 15,450 74,858
<strong>The</strong> recoverable amount for the CASAWELL Group was
calculated on the basis of the value in use. Due to the
negative value in use, the fair value minus costs to sell
was applied to determine the financial position of ALNO
AG. On this basis, impairment losses were recognized
on additions during the year in the amount of EUR 3,399
thousand in the financial year 2011, as the new targets for
the impairment test were not available until spring 2012
and the negative value in use as per 31 December 2010
therefore remained valid. Based on the impairment test
performed when preparing the annual financial statements
as at 31 December 2011, further impairment losses in the
total amount of EUR 896 thousand (previous year:

EUR 0 thousand) were recognized on intangible assets,
property, plant and equipment for the year 2011 (see C.8.
"Write-downs on intangible assets, property, plant and
equipment").
As outlined above, the forward-looking assumptions un-
derlying the calculations <strong>are</strong> <strong>based</strong> on various uncertain
estimates. <strong>The</strong>se uncertainties can have a significant effect
on the result of the calculations. <strong>The</strong> effect of different
planning scenarios on the value in use of the cash gener-
ating units ALNO AG and CASAWELL is outlined below
(referred only to the change in value of the perpetual annuity
as value-driving factor).
ALNO AG:
in '000 EUR WACC
Free Cash Flow – 2 % – 1 % 0 % 1 % 2 %
– 20 % – 11,332 – 16,578 – 20,203 – 22,802 – 24,713
– 10 % – 7,729 – 13,691 – 17,827 – 20,808 – 23,013
0 % – 4,126 – 10,803 – 15,450 – 18,813 – 21,314
10 % – 523 – 7,915 – 13,074 – 16,818 – 19,614
20 % 3,080 – 5,027 – 10,697 – 14,824 – 17,914
CASAWELL:
in '000 EUR WACC
Free Cash Flow – 2 % – 1 % 0 % 1 % 2 %
– 20 % 89,905 72,297 59,601 50,029 42,566
– 10 % 101,261 81,845 67,233 56,493 48,125
0 % 112,617 90,673 74,858 62,957 53,683
10 % 123,973 99,860 82,495 69,421 59,242
20 % 135,329 109,048 90,127 75,884 64,801
ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
IMPaIrMeNT TesT for o<strong>The</strong>r INTaNGIBle asseTs,
ProPerTY, PlaNT aNd equIPMeNT
Other intangible assets, property, plant and equipment
were scrutinized at the closing date to determine whether
there were any indications of a possible impairment. An
impairment test in accordance with IAS 36 is performed if
such indications <strong>are</strong> found.
Impairment testing involves determining the recoverable
amount for each individual asset or, if cash inflows cannot
be allocated to the individual asset, for a cash generating
unit. Cash generating units <strong>are</strong> defined as being the smallest
units capable of generating cash flows. In the ALNO
Group, these <strong>are</strong> the individual companies.
<strong>The</strong> recoverable amount is the higher of the fair value of
the asset or cash generating unit minus costs to sell or
value in use.
An impairment is recognized when the recoverable amount
is lower than the carrying amount of the asset or cash
generating unit. If the reasons for a previously recognized
impairment loss no longer apply, the impairment loss is
reversed provided that the reversal does not cause the
carrying amount to exceed the amortized cost of acquisition
or production.
reporting of interests in joint ventures
Interests in joint ventures <strong>are</strong> included in the consolidated
financial statements using the equity method in compliance
with IAS 31.38.
Acquisition costs <strong>are</strong> increased or decreased by the prorated
profit/loss for the year. Disbursements reduce, and
capital increases increase, the carrying amount of the interest.
Changes in equity outside profit or loss <strong>are</strong> likewise
recognized in Group equity on a prorata basis. If there
is any indication of an impairment, an impairment test is
performed in compliance with IAS 36.
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ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
Inventories
Raw materials and supplies, as well as <strong>good</strong>s purchased
for resale, <strong>are</strong> always measured at the lower of average
cost of acquisition including incidental acquisition
expenses or net proceeds from sale, as required by IAS 2.
In compliance with IAS 2, work in process and finished
<strong>good</strong>s/services <strong>are</strong> measured at the cost of production,
provided that this does not exceed the expected net proceeds
from sale. Production costs include all direct costs
attributable to the production process, as well as a reasonable
portion of production-related overheads.
<strong>The</strong> net revenue value is equal to the estimated proceeds
from sale that can be realized in the ordinary course of
business, minus the estimated costs up to completion and
the estimated costs required for distribution.
financial and other assets
Financial assets essentially comprise liquid assets, securities
and trade accounts receivable.
<strong>The</strong> option of classifying financial assets as financial assets
to be measured at fair value through profit or loss when
recognized for the first time is not exercised.
In compliance with IAS 39, trade accounts receivable <strong>are</strong>
classified as "loans and receivables issued by the company"
and recognized at the amortized cost of acquisition
using the effective interest rate method. Reasonable specific
valuation allowances equal to the difference between
the carrying amount of the asset and the present value of
expected future cash flows <strong>are</strong> made for doubtful accounts
receivable. <strong>The</strong> specific valuation allowances <strong>are</strong> recognized
in a value adjustment account. If the impairment
decreases in subsequent periods, the valuation allowance
is reversed, provided that the carrying amount does not
exceed the amortized cost of acquisition following reversal.
Impairment losses and their reversals <strong>are</strong> recognized as
income in the consolidated income statement. Accounts
receivable <strong>are</strong> derecognized when their irrecoverability is
established.
Securities and interests held in associated companies <strong>are</strong>
classified as "available-for-sale financial assets". After firsttime
recognition, they <strong>are</strong> always measured at fair value.
In the case of securities, this is equal to the current price.
Gains and losses from changes in fair value <strong>are</strong> recognized
outside profit or loss in equity until the financial asset is
disposed of or until an impairment loss is established. In
the event of an impairment loss, the accumulated net loss
is removed from equity and expensed.
Interests held in associated companies <strong>are</strong> measured at
acquisition cost, as there is no active market and the fair
values cannot be reliably determined due to the absence
of corporate planning. Indicated impairment losses <strong>are</strong>
recognized through profit or loss.
First-time recognition of financial assets is always posted
on the settlement date.
A financial asset is derecognized when the contractual
right to cash inflows from the asset is satisfied, expires
or all risks and rewards have essentially been transferred.
Derecognition is also posted on the settlement date.
Financial assets <strong>are</strong> also derecognized if the essential risks
and rewards associated with ownership <strong>are</strong> neither transferred
to the acquirer nor retained as a result of transferring
financial assets, and the power to dispose of the financial
assets passes to the acquirer. <strong>The</strong> rights and duties arising
or remaining after such transfer <strong>are</strong> recognized separately
as an asset or liability. However, if the power to dispose
of the transferred financial assets remains with the ALNO
Group, the sold assets <strong>are</strong> still recognized in the amount
of the continuing commitment. An associated liability is
simultaneously posted under other liabilities. Differences
between the assets and liabilities posted <strong>are</strong> recognized
in the financial result.
Other assets <strong>are</strong> recognized at acquisition cost, liquid
assets at their nominal value.

Provisions for pensions
<strong>The</strong> ALNO Group operates a defined benefit plan for former
members of the Board of Management and executive
employees in Germany and abroad.
ALNO's benefit plan is a defined benefit plan in compliance
with IAS 19.27 directly obligating the company to pay
agreed benefits to past and present employees; actuarial
risks and investment risks <strong>are</strong> basically borne by the company.
<strong>The</strong> provision is calculated using the method of regular
lump-sum premiums (Projected Unit Credit Method)
defined by IAS 19 insofar as it is not covered by existing
plan assets. <strong>The</strong> interest expense from adding interest is
recognized as a financial expense.
<strong>The</strong> Group has exercised the option of netting all actuarial
gains and losses accruing in the financial year with equity
outside profit or loss.
other provisions
Other provisions <strong>are</strong> set up in compliance with IAS 37 if a
current – legal and constructive – obligation towards third
parties is probable and can lead to a reliably estimated
outflow of resources. Provision for expenditure is generally
not formed.
Measurement is performed in the amount of the best estimate
of the expenditure required to settle the obligation on
the balance sheet date. Non-current provisions <strong>are</strong> recognized
at their settlement value discounted to the balance
sheet date in accordance with IAS 37, insofar as the effect
is substantial. In the event of discounting, the provision's
increase due to the passage of time is recognized as a
financial expense.
ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
financial liabilities
<strong>The</strong> option of classifying financial liabilities as financial
liabilities to be measured at fair value through profit or loss
when recognized for the first time is not exercised.
Financial liabilities essentially comprise sh<strong>are</strong>holder loans,
accounts payable to banks and other financial liabilities.
In compliance with IAS 39, all financial liabilities <strong>are</strong> basically
accounted for at their amortized cost of acquisition
(financial liabilities measured at cost), which corresponds
to the fair value of the consideration received, including
transaction costs. Current financial liabilities regularly also
include those non-current loans which have a remaining
term of not more than one year.
derivative financial instruments
In 2008, ALNO AG acquired derivative financial instruments
maturing in August 2010 as a hedge for interest rate risks.
<strong>The</strong>se financial derivatives were classified as "held for
trading", as they did not comply with the strict accounting
criteria of IAS 39 for hedging transactions. Changes in
the market value of the financial derivatives <strong>are</strong> recognized
through profit or loss in the financial result.
Trade accounts payable and other liabilities
Trade accounts payable <strong>are</strong> recognized in the amount
invoiced by the supplier.
<strong>The</strong> deferred liabilities <strong>are</strong> carried as liabilities in the amount
owed, sometimes in the amount estimated, and recognized
under other liabilities.
Liabilities under finance leases <strong>are</strong> likewise recognized
under other liabilities and carried at the present value of
the future leasing instalments. Liabilities <strong>are</strong> broken down
into current and non-current liabilities in accordance with
the term of the lease. Lease payments <strong>are</strong> divided into
interest and principal in such a way as to yield a constant
rate of interest on the remaining lease payment owed over
the period. <strong>The</strong> interest portion is expensed under nonoperating
expenses.
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Lease payments under operating leases <strong>are</strong> recognized in
the consolidated income statement as an expense by the
straight-line method over the term of the lease.
<strong>The</strong> other liabilities <strong>are</strong> shown at their repayment amounts.
A trade account payable or other liability is derecognized
when the obligation underlying the liability is discharged,
terminated or extinguished. <strong>The</strong> trade accounts payable
which were derecognized in 2011 following a waiver of
repayment <strong>are</strong> derecognized through profit or loss in the
result from reorganization.
5. MaJor dIsCreTIoNarY deCIsIoNs,
assuMPTIoNs aNd esTIMaTes
discretionary decisions
<strong>The</strong> following discretionary decisions have been made by
the company's management in conjunction with the application
of recognition and measurement policies:
Two leasing companies <strong>are</strong> consolidated as special purpose
entities, as the companies <strong>are</strong> economically controlled
by ALNO AG. <strong>The</strong> leasing companies concerned have for
many years leased buildings required for operations and
an associated property on the company site exclusively to
ALNO AG. Contracts concluded by the lessor in conjunction
with the leased asset must be approved by ALNO
AG. Any resultant payment obligations <strong>are</strong> charged out to
ALNO AG in the full amount. ALNO AG will be granted the
right to purchase the leased assets on expiry of the lease.
assumptions and estimates
When preparing the consolidated financial statements,
assumptions and estimates have been made with impact
on recognition and the amount of the assets, liabilities,
income, expenses and contingent liabilities reported.
When assuming a going concern, the assumptions and
estimates essentially concern the corporate planning,
as well as the occurrence and implementation of various
conditions (see B.1. "Basis for preparation of the financial
statements").
<strong>The</strong> assumptions and estimates made in conjunction
with impairment testing of the <strong>good</strong>will and fixed assets
essentially concern the forecast cash flows and discounting
factors (see B.4. "Impairment test for <strong>good</strong>will" and
C.8. "Write-downs on intangible assets, property, plant and
equipment").
Further uncertainties exist in conjunction with the capitalization
of future tax reliefs, due to the assumptions made
with regard to the expected date of occurrence and amount
of future taxable income in the next four years. Future tax
reliefs have also been calculated on the assumption that
there will be no harmful change of ownership in the future
eliminating the tax loss carryforwards in accordance with
Sections 8 (4) and 8c of the Corporation Tax Act (KStG)
(see C.10. "Income taxes").
Assumptions and estimates <strong>are</strong> also made when determining
the economic useful life of the fixed assets (see B.4.
"Intangible assets" and "Property, plant and equipment"),
as well as when determining the parameters for calculating
the provisions for pensions (see D.11. "Provisions for pensions")
and pre-retirement part-time working arrangements
(see D.12. "Other provisions"). <strong>The</strong> provision for warranty
claims has been calculated on the basis of assumptions
and estimates concerning the period of time between
delivery date and warranty period, as well as on the future
warranty encumbrances (see D.12. "Other provisions").
Valuation allowances on trade accounts receivable <strong>are</strong>
likewise <strong>based</strong> on estimates concerning, in particular,
the cash inflow expected in the future (see D.6. "Trade
accounts receivable").
All these assumptions and estimates <strong>are</strong> <strong>based</strong> on the
knowledge currently available at the time of preparing the
consolidated financial statements. Although these assumptions
and estimates <strong>are</strong> to the best of the management's
knowledge, the actual results may deviate from these.

C. notes to the consolidated
income statement
<strong>The</strong> consolidated income statement has been prep<strong>are</strong>d
according to the nature of expense method.
1. sales revenue
in '000 EUR
Revenue from the sale of <strong>good</strong>s
2011 2010
444,747 458,997
Other revenue 8,063 8,300
Total 452,810 467,297
Other revenue is essentially the result of product-related
incidental sales to the Group's usual customers or to
other third parties, such as the sale of materials that <strong>are</strong>
no longer required. This item additionally includes sales
revenue in the amount of EUR 0 thousand (previous year:
EUR 46 thousand) for services rendered.
2. Changes in inventories and capitalized <strong>good</strong>s
and services for own account
in '000 EUR 2011 2010
Changes in inventories 31 – 2,409
Other capital. <strong>good</strong>s and services for own acc. 851 416
Total 882 – 1,993
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd inComE statEmEnt
3. other operating income
Other operating income is made up as follows:
in '000 EUR 2011 2010
Income from the disposal of assets 31 399
Income relating to other periods 2,089 2,460
Income from the reversal of specific
valuation allowances 158 792
Insurance benefits received 112 82
Rental income 580 577
Currency gains 312 478
Other income 2,988 2,274
Total 6,270 7,062
Income relating to other periods mainly comprises income
from the reversal of provisions, as well as from derecognition
of liabilities. <strong>The</strong> other income comprises income
from social services, refunds from the Federal Employment
Agency, income from payments received on derecognized
accounts receivable and grants or subsidies on advertising
costs.
Rental income primarily comprises the income received from
letting office premises and business premises to various
tenants at the Bad Salzuflen location. As a rule, the leases
can be terminated with three months' notice effective at the
end of a calendar quarter.
Currency gains <strong>are</strong> netted against currency losses in
the amount of EUR 371 thousand (previous year:
EUR 707 thousand).
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4. Cost of materials
in '000 EUR 2011 2010
Cost of raw materials and supplies 281,197 267,485
Purchased services 5,201 4,422
Total 286,398 271,907
5. Personnel expenses
in '000 EUR 2011 2010
Wages and salaries 81,861 81,270
Social security costs 16,295 16,384
Retirement benefits 373 246
Total 98,529 97,900
1,806 men and women were employed on average over
the year (previous year: 1,840).
Number of employees 2011 2010
Industrial employees 1,078 1,077
Office employees 728 763
Total 1,806 1,840
Germany 1,762 1,768
Abroad 44 72
Social security costs include the employer's contributions
to state pension funds for employees in the amount of EUR
7,415 thousand (previous year: EUR 7,459 thousand). In
addition, wages and salaries include additional sums to
top up pre-retirement part-time payments in the amount
of EUR 0 thousand (previous year: EUR 64 thousand) and
employee termination payments in the amount of EUR
2,643 thousand (previous year: EUR 411 thousand) which
<strong>are</strong> not associated with the reorganization.
In the previous year social security costs included refunds
from the Federal Employment Agency in the amount of
EUR 191 thousand. <strong>The</strong> refunds related to the social security
expenses to be borne by the ALNO Group within the
context of short-time working in the German companies.
<strong>The</strong>y <strong>are</strong> netted against the corresponding expenses and
recognized.
EUR 339 thousand (previous year: EUR 186 thousand)
<strong>are</strong> recognized in the financial year as retirement benefit
expenses on the basis of defined-contribution benefit obligations
assumed by the employer for the company pension
scheme.
6. other operating expenses
in '000 EUR 2011 2010
Cost of sales 50,453 47,264
Administration costs 25,245 25,070
Rent and leasing 7,665 7,307
Maintenance 6,882 7,095
Expenses relating to other periods 284 613
Allocation to specific valuation
allowances for trade accounts
receivable 1,007 1,935
Bad debts 411 998
Other taxes 513 714
Losses from the disposal of assets 503 562
Other expenses 1,206 1,053
Total 94,169 92,611
Other expenses mainly comprise expenses from the
allocation to provisions and deferred liabilities.
Development costs which cannot be capitalized have been
recognized through profit or loss in the amount of EUR
1,212 thousand (previous year: EUR 1,232 thousand).

7. reorganization income (expense)
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd inComE statEmEnt
Due to the unsatisfactory earnings situation of the ALNO
Group, reorganization of the German companies com-
menced in 2007, followed by the foreign subsidiaries in
late 2008. A comprehensive reorganization concept was
approved by the Supervisory Board of ALNO AG on 15
January 2010. <strong>The</strong> primary aim of this concept is to sus-
tainably improve the Group's earnings and competitive-
ness. <strong>The</strong> associated all-embracing structural changes
focus above all on introducing efficient administrative
processes and manufacturing structures throughout the
Group.
In 2011, reorganization yielded a profit of EUR 24,338
thousand (previous year: loss of EUR -8,962 thousand).
Other operating expenses in the amount of EUR 2,730
thousand (previous year: EUR 4,594 thousand) comprise
consulting expenses. In the previous year, this item also
included an allocation to the provision for the employment
and qualification company at the Pfullendorf location.
Personnel expenses in the amount of EUR 9 thousand
(previous year: EUR 4,638 thousand) comprise employee
termination payments. Other operating income in the
amount of EUR 27,077 thousand (previous year: EUR 270
thousand) include EUR 25,000 thousand from derecognition
of trade accounts payable following a waiver of
repayment. In addition, it also includes income from the
reversal of provisions which <strong>are</strong> no longer needed for the
employment and qualification company at the Pfullendorf
location.
in '000 EUR 2011 Reorganization
2011 acc.
to income
statement
Other operating
income 33,347 – 27,077 6,270
Personnel expenses 98,536 – 9 98,529
Other operating
expenses 69,899 – 2,370 94,169
in '000 EUR 2010 Reorganization
2010 acc.
to income
statement
Other operating
income 7,332 – 270 7,062
Personnel expenses 102,538 – 4,638 97,900
Other operating
expenses 97,205 – 4,594 92,611
8. Write-downs on intangible assets, property,
plant and equipment
<strong>The</strong>se write-downs result from the development of fixed
assets.
in '000 EUR 2011 2010
Intangible assets 967 955
Property, plant and equipment 10,632 8,824
Amortization and depreciation 11,599 9,779
Impairment losses 4,303 2,325
Total 15,902 12,104
All in all, the following asset groups <strong>are</strong> affected by impairment
losses:
in '000 EUR 2011 2010
Intangible assets 76 9
Land and buildings 8 0
Technical equipment and machinery 265 0
Factory and office equipment 3,954 2,316
Total 4,303 2,325
With regard to the assets of the cash generating unit ALNO
AG (including leasing companies), the fair value minus
costs to sell was applied to the additions in 2011, as new
targets were not available during the year and the negative
value in use as at 31 December 2010 consequently
remained valid (see B.4. "Impairment test for <strong>good</strong>will").
This resulted in impairment losses and write-downs on
property, plant and equipment in the amount of EUR
3,399 thousand (previous year: EUR 2,293 thousand).
<strong>The</strong> impairment test performed as at 31 December 2011
on the basis of the new targets did not yield any further
impairment of the remaining <strong>good</strong>will of the CASAWELL
Group (previous year: EUR 0 thousand). For the cash
generating unit ALNO AG, further impairment losses were
recognized on the other intangible assets in the amount of
EUR 76 thousand (previous year: EUR 0 thousand) and on
property, plant and equipment in the amount of EUR 820
thousand (previous year: EUR 0 thousand).
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Impairment testing also yielded impairment losses and
write-downs on property, plant and equipment of the for-
eign subsidiaries due to the continuing poor prospective
earnings in the United Kingdom, as well as in the amount
of EUR 8 thousand (previous year: EUR 32 thousand)
due to closure of the locations in Belgium and Italy in the
previous year.
Impairment losses in the amount of EUR 4,295 thousand
(previous year: EUR 2,293 thousand) <strong>are</strong> accounted for
by the ALNO segment. <strong>The</strong> impairment losses for foreign
subsidiaries in the amount of EUR 8 thousand (previous
year: EUR 32 thousand) were posted at Group level.
<strong>The</strong>re were no further events or circumstances leading to
the recognition of income or expenses from impairment
losses on the balance sheet date.
9. financial result
Interest expenses from drawing on credit lines and sh<strong>are</strong>holder
loans in the amount of EUR 10,184 thousand (previous
year: EUR 9,800 thousand) <strong>are</strong> posted under financial
expenses. This item also includes interest expenses from
the interest added to pension provisions and other noncurrent
provisions. In the previous year, financial expenses
also included costs in the amount of EUR 390 thousand
from the planned capital increase which was ultimately
cancelled, as well as expenses from derivative financial
instruments in the amount of EUR 130 thousand.
Financial income includes income from investment in securities
in the amount of EUR 46 thousand (previous year:
EUR 43 thousand); the remainder comprises other interest
income from the interest on financial assets. In the previous
year, this item additionally included the positive effect on
earnings from the waiver of repayment in the amount of
EUR 10,000 thousand.
10. Income taxes
Breakdown of income taxes:
in '000 EUR
Consolidated statement of changes
in equity
2011 2010
Deferred taxes directly recognized in
equity
Actuarial losses from pension
provisions 204 169
Income taxes expensed in the
consolidated income statement
204 169
in '000 EUR 2011 2010
Consolidated income statement
Actual income tax expense:
Deferred income tax expense: 49 258
Adjustment of income tax actually
incurred in the previous year 0 – 12
Deferred taxes:
Tax loss carryforwards – 135 325
Creation and reversal of temporary
differences 431 335
Income taxes expensed in the
consolidated income statement
345 906

Deferred taxes comprise the following items:
in '000 EUR
Deferred tax liabilities
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd inComE statEmEnt
Cons. statement of financial pos. Consolidated income statement
2011 2010 2011 2010
Property, plant and equipment 3,978 3,997 – 19 336
Inventories 151 216 – 65 78
Accounts receivable and other assets 144 420 – 276 310
Other provisions 99 103 – 4 72
Other liabilities 9 0 9 0
Differences from currency translation 0 0 – 1 – 9
Subtotal 4,381 4,736 – 356 787
Balance – 4,031 – 4,479 — —
Deferred tax assets
350 257 – 356 787
Intangible assets 1,481 2,339 – 858 154
Property, plant and equipment 4,602 4,421 181 – 716
Inventories 0 0 0 – 74
Provisions for pensions 1,107 841 – 73 4
Other provisions 614 432 182 – 601
Other liabilities 81 14 67 14
Loss carryforwards 420 285 135 – 325
Differences from currency translation 0 0 0 – 1
Subtotal 8,305 8,332 – 366 – 1,545
Valuation allowance – 4,274 – 3,853 – 286 1,672
Subtotal 4,031 4,479 – 652 127
Balance – 4,031 – 4,479 — —
0 0 – 652 127
Deferred tax liabilities 296 660
<strong>The</strong> valuation allowance on deferred tax assets exclusively
comprises temporary differences in both the year under
review and the previous year.
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Expected and actual taxes on income <strong>are</strong>
reconciled as follows:
in '000 EUR 2011 2010
Profit/loss before income taxes – 25,216 – 12,178
Expected income taxes – 7,060 – 3,410
Effect of different assessment bases / tax rates – 411 68
Unrecognized losses in the financial year 7,188 2,565
Write-down (previous year: write-up) or non-recognition of deferred tax assets on temporary differences 241 – 1,688
Change in deferred tax assets on loss carryforwards – 135 325
Non-tax-deductible operating expenses
Impairment of <strong>good</strong>will 0 0
Other non-tax-deductible operating expenses 721 2,036
Taxable sh<strong>are</strong>holders' waiver of repayment 0 1,375
Tax effects due to circumstances in prior periods – 111 – 438
Other differences – 88 73
Actual taxes on income 345 906
Income taxes recognized in the consolidated income statement 345 906
<strong>The</strong> effective income tax rate – defined at 28% (previous year:
28%) in the ALNO Group – is obtained by applying a corporation
tax rate of 15% (previous year: 15%) plus the solidarity
surcharge of 5.5% on corporation tax, as well as weighted trade
income tax on the result before taxes on income.
For this reason, the deferred taxes of the German companies <strong>are</strong>
calculated with the future income tax rate of 28%.
Foreign currency translation yields a change of EUR 1 thousand
in deferred tax liabilities.
<strong>The</strong> corporation tax loss carryforwards in Germany for which
deferred tax assets were not formed amount to EUR 147,939
thousand (previous year: EUR 142,450 thousand). Unrecognized
German trade tax loss carryforwards total EUR 191,680
thousand as at the balance sheet date (previous year: EUR
163,988 thousand). Deferred taxes were not capitalized in the
amount of EUR 3,578 thousand (previous year: EUR 2,820
thousand) for foreign loss carryforwards. Of these, EUR 587
thousand (previous year: EUR 0 thousand) can be used for a
limited period of time.
<strong>The</strong> interest carried forward on the basis of interest restrictions
in Germany for which deferred tax assets were not formed
amounts to EUR 17,429 thousand as at the balance sheet date
(previous year: EUR 14,603 thousand).
<strong>The</strong> income tax result recognized has been improved by EUR
111 thousand (previous year: EUR 426 thousand) by using
previously unrecognized tax loss carryforwards in the amount
of EUR 913 thousand (previous year: EUR 2,652 thousand).
As in the previous year, deferred tax assets were not formed on
loss carryforwards for the tax group of ALNO AG.
Deductible temporary differences for which deferred tax assets
were not recognized due to impairment totalled EUR 15,264
thousand (previous year: EUR 13,739 thousand).
An impairment loss is reversed when a positive taxable income
is earned for the tax group of ALNO AG in 2012. <strong>The</strong> amount of
this reversal depends on the expected tax gains <strong>based</strong> on the
four-year tax budgeting.
Due to the prolonged history of loss, trade tax loss carryforwards
of Gustav Wellmann GmbH & Co. KG, Enger, <strong>are</strong> only formed
on temporary differences to the extent that deferred tax liabilities
exceed deferred tax assets. This consequently increases the
deferred tax assets recognized on loss carryforwards by EUR
135 thousand to EUR 420 thousand (previous year: EUR 285
thousand).
Tax deferrals in the amount of EUR 1,059 thousand (previous
year: EUR 768 thousands) were not recognized on taxable
temporary differences from interests held in subsidiaries and
interests held in associated companies in the total amount of
EUR 54,109 thousand (previous year: EUR 54,839 thousand),

ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
as the time at which the temporary difference is reversed can be
influenced by the p<strong>are</strong>nt company and the temporary difference
will probably not be reversed within the foreseeable future.
Income taxes payable amount to EUR 8 thousand (previous
year: EUR 194 thousand), while EUR 48 thousand (previous
year: EUR 7 thousand) can be collected in income tax refunds.
D. notes to the consolidated balance sheet
1. INTaNGIBle asseTs
in '000 EUR
Accumulated cost of acquisition
Industrial property rights and
similar rights Goodwill
Down-payments and
construction in progress Total
Total as at 1 January 2010 25,470 4,090 1,254 30,814
Currency differences 7 0 0 7
Additions 314 0 261 575
Disposals – 810 0 0 – 810
Total as at 31 December 2010 24,981 4,090 1,515 30,586
Currency differences 1 0 0 1
Additions 144 0 1,793 1,937
Transfers 8 0 0 8
Disposals – 55 0 0 – 55
Total as at 31 December 2011 25,079 4,090 3,308 32,477
Accum. deprec. and impairm. losses
Total as at 1 January 2010 22,730 2,607 0 25,337
Currency differences 7 0 0 7
Additions
Amortization 955 0 0 955
Impairment losses 9 0 0 9
Disposals – 810 0 0 – 810
Total as at 31 December 2010 22,891 2,607 0 25,498
Currency differences 2 0 0 2
Additions
Amortization 967 0 0 967
Impairment losses 76 0 0 76
Disposals – 55 0 0 – 55
Total as at 31 December 2011 23,881 2,607 0 26,488
Carrying amounts
31 December 2011 1,198 1,483 3,308 5,989
31 December 2010 2,090 1,483 1,515 5,088
1 January 2010 2,740 1,483 1,254 5,477
87

88 ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
2. ProPerTY, PlaNT aNd equIPMeNT
in '000 EUR Land and buildings
Accumulated cost of acquisition
Technical
equipment and
machinery
Other plant, factory
and office equipment
Down-payments
and construction
in progress Total
Total as at 1 January 2010 118,001 126,729 59,362 3,956 308,048
Currency differences 0 0 114 0 114
Additions 35 3,065 9,562 2,558 15,220
Transfers 0 3,803 19 – 3,822 0
Disposals – 4,152 – 4,361 – 7,600 0 – 16,113
Total as at 31 December 2010 113,884 129,236 61,457 2,692 307,269
Currency differences 0 0 32 0 32
Additions 84 1,442 13,065 2,069 16,660
Transfers 0 973 0 – 981 – 8
Disposals – 93 – 6,773 – 6,052 0 – 12,918
Total as at 31 December 2011 113,875 124,878 68,502 3,780 311,035
Accum. deprec. and impairm. losses
Total as at 1 January 2010 69,745 116,802 51,517 0 238,064
Currency differences 0 0 90 0 90
Additions
Amortization 1,256 1,785 5,783 0 8,824
Impairment losses 0 0 2,316 0 2,316
Disposals – 2,889 – 4,324 – 7,090 0 – 14,303
Total as at 31 December 2010 68,112 114,263 52,616 0 234,991
Currency differences 0 0 27 0 27
Additions
Amortization 1,221 2,146 7,265 0 10,632
Impairment losses 8 265 3,954 0 4,227
Disposals – 93 – 6,755 – 5,484 0 – 12,332
Total as at 31 December 2011 69,248 109,919 58,378 0 237,545
Carrying amounts
31 December 2011 44,627 14,959 10,124 3,780 73,490
31 December 2010 45,772 14,973 8,841 2,692 72,278
1 January 2010 48,256 9,927 7,845 3,356 69,984
In the previous year, this item included property, plant and
equipment from a finance lease. <strong>The</strong>se were already depreciated
in the previous years. <strong>The</strong> leased assets primarily
comprised information and communications systems,
as well as technical equipment on buildings in the other
plants, factory and office equipment. <strong>The</strong>re <strong>are</strong> no further
finance leases in force at 31 December 2011.

3. fINaNCIal asseTs
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
As at 31 December 2011, financial assets totalled EUR
3,168 thousand (previous year: EUR 3,431 thousand).
<strong>The</strong> financial assets comprise non-current securities to
protect commitments associated with employees' preretirement
part-time working against insolvency, in the
amount of EUR 3,163 (previous year: EUR 3,426 thousand),
which were pledged to the employees, as well as
interests in associated companies in the amount of EUR
5 thousand (previous year: EUR 5 thousand).
4. aT-equITY INvesTMeNTs
As at 31 December 2011, ALNO Middle East reported the
following assets and liabilities in its balance sheet; these
<strong>are</strong> attributable to ALNO AG in accordance with its holding
of 50%.
in '000 EUR 31.12.2011 31.12.2010
Assets 4,085 6,121
thereof non-current 942 1,701
thereof current 3,143 4,420
Liabilities 3,214 3,940
thereof non-current 1,354 1,977
thereof current 1,860 1,963
In 2011, ALNO AG accrued income and expenses in the
following amounts:
in '000 EUR 2011 2010
Income 93 4,462
Expenses 2,444 4,369
<strong>The</strong> loss of EUR 2,351 thousand borne by ALNO AG in
2011 reduced the carrying amount of the holding as posted
in profit and loss. In addition, ALNO AG waived EUR 1,000
thousand when a loan receivable was transformed into a
capital contribution. <strong>The</strong> carrying amount of the associated
company also increased as a result of currency translation
differences in the amount of EUR 41 thousand, which were
recognized outside profit or loss in the sh<strong>are</strong>holders' equity
of ALNO AG.
<strong>The</strong> profit of EUR 93 thousand accruing to ALNO AG in
2010 increased the carrying amount of the holding in profit
and loss. <strong>The</strong> carrying amount of the associated company
also increased as a result of currency translation differences
in the amount of EUR 158 thousand, which were
recognized outside profit or loss in the sh<strong>are</strong>holders' equity
of ALNO AG.
5. fINaNCIal aCCouNTs reCeIvaBle
Non-current financial accounts receivable comprise loans
granted to ALNO Middle East in the amount of EUR 170
thousand (previous year: EUR 2,000 thousand), a security
deposit for a provider of IT services in the amount of EUR
676 thousand (previous year: EUR 665 thousand) and
earmarked credit balances with banks in the amount of
EUR 473 thousand (previous year: EUR 0 thousand) for
future investments.
6. Trade aCCouNTs reCeIvaBle
in '000 EUR Total
Remaining term
< 1 year 1 to 5 years > 5 years
31 December 2011 41,339 40,056 1,283 0
31 December 2010 32,996 32,360 636 0
Sales of accounts receivable by the ALNO Group in the
amount of EUR 15,295 thousand (previous year: EUR
10,910 thousand) do not meet with the criteria for complete
derecognition of the receivables. This resulted in
trade accounts receivable as at 31 December 2011 with a
carrying amount of EUR 596 thousand (previous year: EUR
410 thousand). Currency risks and interest risks basically
continue to apply as a result of possible belated payment
of the accounts receivable. <strong>The</strong> accounts payable which
<strong>are</strong> associated with the transferred and not derecognized
accounts receivable amount to EUR 810 thousand (previous
year: EUR 536 thousand) and <strong>are</strong> recognized in other
liabilities.
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ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
As at the balance sheet date, the age structure of the trade
accounts receivable is as follows:
in '000 EUR Carrying amount
Neither overdue nor
impaired Less than 30 days
Not impaired and overdue within the following periods
Between 30 and
365 days
More than 365
days
31 December 2011 41,339 32,987 3,240 1,404 22
31 December 2010 32,996 23,050 3,076 4,632 108
<strong>The</strong> adjusted accounts receivable have a gross value of
EUR 11,341 thousand (previous year: EUR 10,789 thousand).
Write-downs on trade accounts receivable developed as
follows:
in '000 EUR 2011 2010
1 January 8,659 9,817
Currency differences – 9 59
Consumption 1,844 2,360
Reversal 158 792
Allocation 1,007 1,935
31 December 7,655 8,659
With regard to the unimpaired trade accounts receivable,
there were no indications at the closing date that these
payment obligations would not be discharged.
7. INveNTorIes
in '000 EUR 31.12.2011 31.12.2010
Raw materials and supplies 18,211 19,364
Work in progress 2,713 2,897
Finished <strong>good</strong>s and services 5,513 6,078
Down-payments received – 522 – 158
Total 25,915 28,181
<strong>The</strong> impairments in inventories increased by EUR 231
thousand in 2011 (previous year: EUR 158 thousand) to
EUR 2,318 thousand (previous year: EUR 2,087 thousand).
8. o<strong>The</strong>r asseTs
in '000 EUR Total
Remaining term
< 1 year 1 to 5 years > 5 years
31 December 2011 5,288 4,953 335 0
31 December 2010 7,830 7,511 319 0
Other current assets essentially comprise turnover tax
refunds, accounts receivable from employees and prepaid
expenses. In the previous year, this item additionally
included costs in the amount of EUR 1,103 thousand
which had already been incurred for the capital increase
undertaken in March 2011, as well as the purchase price
resulting from the sale of a property.
Other non-current assets primarily comprises accounts
receivable from the Federal Employment Agency in conjunction
with pre-retirement part-time working.
Write-downs on other assets developed as follows:
in '000 EUR 2011 2010
1 January 129 112
Currency differences 0 1
Consumption 103 0
Reversal 0 10
Allocation 25 26
31 December 51 129
<strong>The</strong> adjusted other assets have a gross value of EUR 109
thousand (previous year: EUR 208 thousand).
<strong>The</strong> unimpaired accounts receivable do not include any
overdue items.

9. lIquId asseTs
Liquid assets comprise the cash in hand and credit bal-
ances with banks. Non-disposable liquid assets comprise
security deposited with banks.
As at the balance sheet date, the cash fund (cash and cash
equivalents) is made up as follows:
in '000 EUR 31.12.2011 31.12.2010
Liquid assets 2,243 3,041
Not freely disposable liquid assets – 1,609 – 2,060
Total 634 981
10. sh<strong>are</strong>holders' equITY
a. subscribed capital
<strong>The</strong> subscribed capital totals EUR 67,847 thousand as
at 31 December 2011 and is divided into 26,094,979
(previous year: 17,396,653) no-par-value sh<strong>are</strong>s. <strong>The</strong>
sh<strong>are</strong>s <strong>are</strong> issued as be<strong>are</strong>r sh<strong>are</strong>s and fully paid up. Each
no-par-value sh<strong>are</strong> accounts for EUR 2.60 of the
subscribed capital.
in '000 EUR
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
Total as at 1 January 2010 41,124
Changes in 2010 4,107
Total as at 31 December 2010 45,231
Changes in 2011 22,616
Total as at 31 December 2011 67,847
As at 1 January 2010, the subscribed capital totalled EUR
41,123,869.80 and was divided into 15,816,873 no-parvalue
sh<strong>are</strong>s. By resolution of the Board of Management
and with the approval of the Supervisory Board on 9 April
2010, it was decided to increase the company's sh<strong>are</strong>
capital in return for cash contributions within the scope of
the measures adopted by the Ordinary General Meeting of
ALNO AG on 26 June 2008. 789,890 no-par-value ordinary
sh<strong>are</strong>s were issued, thus increasing the company's sh<strong>are</strong>
capital from EUR 41,123,869.80 to EUR 43,177,583.80.
<strong>The</strong> new sh<strong>are</strong>s were issued at a price of EUR 6.33 per
sh<strong>are</strong>. <strong>The</strong> new sh<strong>are</strong>s were subscribed and taken up by
IRE Beteiligungs GmbH, Stuttgart. <strong>The</strong> surplus cash contribution
in the amount of EUR 2,946,289.70 was allocated
to the capital reserve which subsequently totalled EUR
39,490,074.62. <strong>The</strong> capital increase was entered in the
Register of Companies on 30 April 2010.
By resolution of the Board of Management and with the
approval of the Supervisory Board on 17 May 2010, it was
decided to increase the company's sh<strong>are</strong> capital in return
for cash contributions within the scope of the measures
adopted by the Ordinary General Meeting of ALNO AG
on 26 June 2008. 789,890 no-par-value ordinary sh<strong>are</strong>s
were issued, thus increasing the company's sh<strong>are</strong> capital
from EUR 43,177,583.80 to EUR 45,231,297.80. <strong>The</strong>
new sh<strong>are</strong>s were likewise issued at a price of EUR 6.33
per sh<strong>are</strong>. <strong>The</strong> new sh<strong>are</strong>s were subscribed and taken up
by IRE Beteiligungs GmbH. <strong>The</strong> surplus cash contribution
in the amount of EUR 2,946,289.70 was allocated
to the capital reserve which subsequently totalled EUR
42,436,364.32. <strong>The</strong> capital increase was entered in the
Register of Companies on 16 June 2010.
By resolution of the Board of Management and with the
approval of the Supervisory Board on 10 February 2011,
it was decided to revive the capital increase from authorized
capital which had been deferred in November 2010.
<strong>The</strong> capital increase was realized on 3 March 2011 with
the issue of 8,698,326 no-par-value ordinary sh<strong>are</strong>s,
each corresponding to a sh<strong>are</strong> of EUR 2.60 in the sh<strong>are</strong>
capital. <strong>The</strong> subscription price equalled EUR 3.00. This
increased the sh<strong>are</strong> capital by EUR 22,615,647.60 to
EUR 67,846,945.40. <strong>The</strong> surplus cash contribution in the
amount of EUR 3,479,330.40 was allocated to the capital
reserve which subsequently totalled EUR 45,915,694.72.
<strong>The</strong> capital increase was entered in the Register of Companies
on 4 March 2011.
<strong>The</strong> most recent statutory notifications by sh<strong>are</strong>holders
pursuant to Section 21 (1) of the German Securities Trading
Act (WpHG) and their respective voting sh<strong>are</strong>s at the
time of reaching, exceeding or undershooting the reporting
thresholds pursuant to Section 21 (1) of the German
Securities Trading Act (WpHG) <strong>are</strong> set out below. Actual
voting sh<strong>are</strong>s held at the balance sheet date may differ
as a result of non-notifiable acquisitions and/or disposals.
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ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
In accordance with Section 21 (1), first sentence, of the Ger-
man Securities Trading Act (WpHG), Mr. Alexander Nothdurft,
Munich, informed us on 31 March 2006 that he no longer
holds 5% of the voting sh<strong>are</strong>s in ALNO AG and that his hold-
ing equals 3.38% as of 28 March 2006.
In accordance with Section 21 (1), first sentence, of the German
Securities Trading Act (WpHG), Mr. Oliver Nothdurft,
Munich, informed us on 31 March 2006 that he no longer
holds 5% of the voting sh<strong>are</strong>s in ALNO AG and that his holding
equals 3.24 % as of 28 March 2006.
<strong>The</strong> aforementioned notifications were published in the Frankfurter
Allgemeine Zeitung on 5 April 2006.
On 10 April 2007 Küchen Holding GmbH, Munich, Germany,
and Milano Investments S.à r.l., Luxemburg, Luxemburg,
informed us in accordance with Section 21 (1), first sentence,
of the German Securities Trading Act (WpHG), that
their sh<strong>are</strong>holding in ALNO AG reached and exceeded the
threshold of 75% of the voting capital on 26 March 2007.
Since then, they have held 75.27% of the voting sh<strong>are</strong>s in
ALNO AG. Of these 75.27% of the voting sh<strong>are</strong>s, 23.21%
<strong>are</strong> attributed to Küchen Holding GmbH in accordance with
Section 22 (1), first sentence, No. 6, of the German Securities
Trading Act (WpHG). Of these 75.27% of the voting sh<strong>are</strong>s,
52.06 % <strong>are</strong> attributed to Milano Investments S.à.r.l., Luxemburg,
Luxemburg, in accordance with Section 22 (1), first
sentence, No.1 of the German Securities Trading Act (WpHG)
and 23.21% in accordance with Section 22 (1), first sentence,
No. 6, second and third sentences, of the German Securities
Trading Act (WpHG).
<strong>The</strong> aforementioned notification was published in the Frankfurter
Allgemeine Zeitung on 14 April 2007 and sent to
Bloomberg Europe, Reuters, dpa, editorial office dow jones
and dpa afx.
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company ABAG Aktienmarkt
Beteiligungs AG, Cologne, Germany, informed us that it no
longer held 10% of the voting sh<strong>are</strong>s in ALNO AG, Pfullendorf,
Germany, ISIN: DE0007788408, WKN: 778840, on 16
June 2010 and that its holding on that day amounted to
9.70% (1,686,636 votes).
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company Erste Private Investmentclub
Börsebius Zentral (GbR), Cologne, Germany,
informed us that it no longer held 10% of the voting sh<strong>are</strong>s
in ALNO AG, Pfullendorf, Germany, ISIN: DE0007788408,
WKN: 778840, on 16 June 2010 and that its holding on that
day amounted to 9.70% (1,686,636 votes). Of this holding,
9.70% (1,686,636 votes) <strong>are</strong> ascribed to the company
within the meaning of Section 22 (1), No. 1, of the German
Securities Trading Act (WpHG). <strong>The</strong> ascribed voting sh<strong>are</strong> is
held through the following company under its control with a
sh<strong>are</strong>holding of 3% or more in ALNO AG: ABAG Aktienmarkt
Beteiligungs AG.
<strong>The</strong> aforementioned notification was published through
Deutsche Gesellschaft für Ad-hoc-Publizität (DGAP) on 8
July 2010.
In accordance with Sections 21 (1) and 24 of the German
Securities Trading Act (WpHG), the company IRE Beteiligungs
GmbH, Stuttgart, Germany, informed us that its holding in
ALNO AG, Pfullendorf, Germany, ISIN: DE0007788408,
WKN: 778840, had exceeded the threshold of 15% on 16
June 2010 and totalled 18.64% (3,242,627 votes) on that
date.
In accordance with Sections 21 (1) and 24 of the German
Securities Trading Act (WpHG), the company Bauknecht Hausgeräte
GmbH, Stuttgart, Germany, informed us that its holding
in ALNO AG, Pfullendorf, Germany, ISIN: DE0007788408,
WKN: 778840, had exceeded the threshold of 15% on 16
June 2010 and totalled 18.64% (3,242,627 votes) on that
date. <strong>The</strong> ascribed voting sh<strong>are</strong> is held through the following
companies under its control, each of which holds 3% or more
of the sh<strong>are</strong>s in ALNO AG: IRE Beteiligungs GmbH.
In accordance with Sections 21 (1) and 24 of the German
Securities Trading Act (WpHG), the company Whirlpool
Greater China Inc., Wilmington, USA, informed us
that its holding in ALNO AG, Pfullendorf, Germany, ISIN:
DE0007788408, WKN: 778840, had exceeded the threshold
of 15% on 16 June 2010 and totalled 18.64% (3,242,627
votes) on that date. Of this holding, 18.64 % (3,242,627
votes) <strong>are</strong> ascribed to the company within the meaning of
Section 22 (1), first sentence, No. 1, of the German Securities
Trading Act (WpHG). <strong>The</strong> ascribed voting sh<strong>are</strong> is held
through the following companies under its control, each of
which holds 3% or more of the sh<strong>are</strong>s in ALNO AG: Bauknecht
Hausgeräte GmbH, IRE Beteiligungs GmbH.
<strong>The</strong> aforementioned notification was published through
Deutsche Gesellschaft für Ad-hoc-Publizität (DGAP) on 23
July 2010.
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company ICF Kursmakler AG,
Frankfurt am Main, Germany, informed us on 4 March 2011
that its holding in ALNO AG, Düsseldorf, Germany, had

ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
exceeded the threshold of 3%, 5%, 10%, 15%, 20%, 25%,
30% on 4 March 2011 and totalled 33.33% (corresponding
to 8,698,326 votes) altogether on that date.
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company ICF Kursmakler AG,
Frankfurt am Main, Germany, informed us on 10 March 2011
that its holding in ALNO AG, Düsseldorf, Germany, had fallen
below the threshold of 30%, 25%, 20%, 15%, 10%, 5%, 3%
on 9 March 2011 and totalled 0.00% (corresponding to zero
votes) altogether on that date.
Both the aforementioned notifications were published through
Deutsche Gesellschaft für Ad-hoc-Publizität (DGAP) on 10
March 2011.
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company Küchen Holding GmbH,
Munich, Germany, informed us that its holding in ALNO AG,
Düsseldorf, Germany, had fallen below the thresholds of 75%
and 50% on 4 March 2011 and totalled 47.76% (corresponding
to 12,462,049 votes) altogether on that date. Of this total,
12.43% (3,242,627 votes) <strong>are</strong> ascribed to it through IRE
Beteiligungs GmbH in accordance with Section 22 (1), first
sentence, No. 6, second and third sentences, of the German
Securities Trading Act (WpHG).
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company Milano Investments
S.à.r.l., Esch-sur-Alzette, Luxemburg, informed us that its
holding in ALNO AG, Düsseldorf, Germany, had fallen below
the thresholds of 75% and 50% on 4 March 2011 and totalled
47.76% (corresponding to 12,462,049 votes) altogether on
that date. Of this total, 35.33% (corresponding to 9,219,422
votes) <strong>are</strong> ascribed to it through the company Küchen Holding
GmbH in accordance with Section 22 (1), first sentence,
No. 1, of the German Securities Trading Act (WpHG), and
12.43% (corresponding to 3,242,627 votes) <strong>are</strong> ascribed to
it through IRE Beteiligungs GmbH in accordance with Section
22 (1), first sentence, No. 6, second and third sentences, of
the German Securities Trading Act (WpHG).
Both the aforementioned notifications were published through
Deutsche Gesellschaft für Ad-hoc-Publizität (DGAP) on 23
March 2011.
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company Erste Private Investmentclub
Börsebius Zentral (GbR), Cologne, Germany, informed
us that its holding in ALNO AG, Düsseldorf, Germany, had
fallen below the threshold of 5% on 12 April 2011 and totalled
3.90% (corresponding to 1,016,636 votes) altogether on that
date. Financial instruments were not exercised. Of this holding,
3.90% (corresponding to 1,016,636 votes) <strong>are</strong> ascribed to the
company within the meaning of Section 22 (1), first sentence,
No. 1, of the German Securities Trading Act (WpHG). <strong>The</strong>
ascribed voting sh<strong>are</strong> is held through the following company
under its control with a sh<strong>are</strong>holding of 3% or more in ALNO
AG: ABAG Aktienmarkt Beteiligungs AG, Cologne.
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company ABAG Aktienmarkt
Beteiligungs AG, Cologne, Germany, informed us that its
holding in ALNO AG, Düsseldorf, Germany, had fallen below
the threshold of 5% on 12 April 2011 and totalled 3.90%
(corresponding to 1,016,636 votes) altogether on that date.
Financial instruments were not exercised.
<strong>The</strong> aforementioned notification was published through
Deutsche Gesellschaft für Ad-hoc-Publizität (DGAP) on 20
April 2011.
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company Milano Investments
S.à.r.l., Esch-sur-Alzette, Luxemburg, informed us that its
holding in ALNO AG, Düsseldorf, Germany, had exceeded
the threshold of 50% on 9 March 2011 and totalled 54.14%
(corresponding to 14,128,716 votes) altogether on that date.
Of this total, 35.33% (corresponding to 9,219,422 votes) <strong>are</strong>
ascribed to it through the company Küchen Holding GmbH in
accordance with Section 22 (1), first sentence, No. 1, of the
German Securities Trading Act (WpHG), and 18.81% (corresponding
to 4,909,294 votes) <strong>are</strong> ascribed to it through IRE
Beteiligungs GmbH in accordance with Section 22 (1), first
sentence, No. 6, second and third sentences, of the German
Securities Trading Act (WpHG).
<strong>The</strong> aforementioned notification was published through
Deutsche Gesellschaft für Ad-hoc-Publizität (DGAP) on 29
June 2011.
In accordance with Section 21 (1) of the German Securities
Trading Act (WpHG), the company ABAG Aktienmarkt Beteiligungs
AG, Cologne, Germany, informed us on 18 October
2011 that its holding in ALNO AG, Pfullendorf, Germany,
had fallen below the threshold of 3% on 14 October 2011
and totalled 0.00% (corresponding to 0 votes) on that date.
Financial instruments were not used in the transaction.
<strong>The</strong> aforementioned notification was published through
Deutsche Gesellschaft für Ad-hoc-Publizität (DGAP) on 20
October 2011.
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auThorIZed CaPITal
By resolution of the Ordinary General Meeting of ALNO
AG on 23 June 2010, the previous authorized capital was
revoked and replaced by a new authorized capital. <strong>The</strong> Board
of Management was authorized to increase the company's
sh<strong>are</strong> capital by up to EUR 22,615,647.60, with the consent
of the Supervisory Board, on one or more occasions until
22 June 2015 by issuing up to 8,698,326 no-par-value ordinary
sh<strong>are</strong>s in return for cash and/or non-cash contributions
(authorized capital 2010). <strong>The</strong> authorized capital was entered
in the Register of Companies on 31 August 2010.
By resolution of the Board of Management and with the
approval of the Supervisory Board on 10 February 2011, it
was decided to revive the capital increase from authorized
capital which had been deferred in November 2010. <strong>The</strong> capital
increase was realized on 3 March 2011 with the issue of
8,698,326 no-par-value ordinary sh<strong>are</strong>s, each corresponding
to a sh<strong>are</strong> of EUR 2.60 in the sh<strong>are</strong> capital. <strong>The</strong> subscription
price per no-par-value ordinary sh<strong>are</strong> equalled EUR 3.00. This
increased the sh<strong>are</strong> capital by EUR 22,615,647.60 to EUR
67,846,945.40. <strong>The</strong> authorized capital was consequently fully
exploited through the offering. It was entered in the Register
of Companies on 4 March 2011.
By resolution of the Ordinary General Meeting of ALNO AG
on 14 July 2011, the Board of Management was authorized
to increase the company's sh<strong>are</strong> capital with the consent of
the Supervisory Board on one or more occasions by up to
EUR 33,923,471.40 by issuing up to 13,047,489 no-parvalue
ordinary sh<strong>are</strong>s in return for cash and/or non-cash
contributions until 13 July 2016 (authorized capital 2011). <strong>The</strong>
authorized capital was entered in the Register of Companies
on 17 August 2011.
<strong>The</strong> sh<strong>are</strong>holders can exercise their statutory subscription
right. <strong>The</strong> new sh<strong>are</strong>s can also be taken over by one or more
banking institutes subject to the proviso that they be offered
to the sh<strong>are</strong>holders (indirect subscription right).
<strong>The</strong> Board of Management is authorized to undertake the
following actions with the consent of the Supervisory Board:
• to exclude sh<strong>are</strong>holders' subscription rights for fractional
amounts.
• to exclude the sh<strong>are</strong>holders' subscription rights as a whole
in order to offer the company's new sh<strong>are</strong>s to third par-
ties in return for non-cash contributions in conjunction with
business combinations or the acquisition of companies or
parts thereof, as well as with the acquisition of other assets,
including loans and other liabilities.
• to exclude the sh<strong>are</strong>holders' subscription rights if the cash
capital increase does not exceed 10% of the sh<strong>are</strong> capi-
tal and the issuing price is not significantly lower than the
market price of correspondingly endowed sh<strong>are</strong>s which <strong>are</strong>
already listed on the stock market.
• to exclude the sh<strong>are</strong>holders' subscription rights if necessary
in order to grant the holders of warrants or the creditors of
convertible bonds issued by the company or its subordinate
Group companies a subscription right to the new sh<strong>are</strong>s
commensurate with that accruing after exercising their
option or conversion rights or following the discharge of
conversion obligations.
CoNTINGeNT CaPITal
By resolution of the Annual General Meeting on 23 June
2010, the Board of Management was authorized to issue,
on one or more occasions until 22 June 2015, cum-warrant
and/or convertible bonds in a total nominal amount of up to
EUR 100,000,000.00 with a term of up to 20 years either
through the company or through companies in which the
company has a direct or indirect majority holding ("subordinate
Group companies") and to guarantee such cum-warrant
and/or convertible bonds issued by the company's subordinate
Group companies. <strong>The</strong> holders or creditors of cum-warrant
and/or convertible bonds must be granted option and/or
conversion rights for up to 8,698,326 no-par-value ordinary
sh<strong>are</strong>s in the company with a prorated sh<strong>are</strong> of up to EUR
22,615,647.60 in the company's sh<strong>are</strong> capital in accordance
with the respective terms and conditions of the cum-warrant
and/or convertible bonds ("conditions").
This contingent capital increase will only be realized to the
extent that option and/or conversion rights under the cumwarrant
and/or convertible bonds <strong>are</strong> exercised or option
and/or conversion obligations <strong>are</strong> discharged, and only to
the extent that a cash settlement is not offered or own sh<strong>are</strong>s
used for service. <strong>The</strong> Board of Management was authorized
to specify the further details concerning the realization of this
contingent capital increase (contingent capital 2010). <strong>The</strong>
contingent capital was entered in the Register of Companies
on 31 August 2010.
<strong>The</strong> previously decided authority to issue cum-warrant and/
or convertible bonds and the contingent capital 2010 was
revoked by the Ordinary General Meeting of ALNO AG on
14 July 2011.

ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
By resolution of the Annual General Meeting on 14 July 2011,
the Board of Management was authorized to issue, on one
or more occasions until 13 July 2016, cum-warrant and/or
convertible bonds in a total nominal amount of up to EUR
100,000,000.00 with a term of up to 20 years either through
the company or through companies in which the company
has a direct or indirect majority holding ("subordinate Group
companies") and to guarantee such cum-warrant and/or convertible
bonds issued by the company's subordinate Group
companies. <strong>The</strong> holders of cum-warrant and/or convertible
bonds must be granted option and/or conversion rights for
up to 13,047,489 no-par-value ordinary sh<strong>are</strong>s in the company
with a prorated sh<strong>are</strong> of up to EUR 33,923,471.40 in the
company's sh<strong>are</strong> capital in accordance with the respective
terms and conditions of the cum-warrant and/or convertible
bonds ("conditions").
This contingent capital increase may only be realized if option
and/or conversion rights <strong>are</strong> issued and only insofar as the
holders of the warrants or convertible bonds exercise their
option or conversion rights, or insofar as the holders with
conversion or option obligation also discharge their conversion
/ option obligation, and the contingent capital is needed
in accordance with the terms and conditions of the cumwarrant
or convertible bond. <strong>The</strong> new sh<strong>are</strong>s issued on the
basis of the option or conversion right exercised or through
discharge of the conversion or option obligation sh<strong>are</strong> in
profits as from the beginning of the financial year in which
they <strong>are</strong> created.
<strong>The</strong> Board of Management was authorized to specify further
details, with the consent of the Supervisory Board, concerning
the realization of this contingent capital increase (contingent
capital 2011).
aCquIsITIoN of oWN sh<strong>are</strong>s
By resolution of the Annual General Meeting on 23 June 2010,
the Board of Management was authorized to buy own sh<strong>are</strong>s
up to 10% of the sh<strong>are</strong> capital existing at the time of adopting
the resolution, as permitted by Section 71 (1), No. 8, of the
Stock Companies Act (AktG). This authority can be exercised
in the full amount or part-amounts, on one or more occasions
and in pursuit of one or more objectives by the company or
by third parties for account of the company. At no point may
the acquired sh<strong>are</strong>s together with other own sh<strong>are</strong>s account
for more than 10% of the sh<strong>are</strong> capital. This authorization
became effective on 24 June 2010 and remains valid until
22 June 2015.
<strong>The</strong> sh<strong>are</strong>s can be purchased through the stock exchange or
through a public offer to buy addressed to all the company's
sh<strong>are</strong>holders, as preferred by the Board of Management.
If sh<strong>are</strong>s <strong>are</strong> purchased through the stock exchange, the
consideration paid by the company per sh<strong>are</strong> (excluding
incidental expenses) must be not more than 10% higher or
lower than the stock exchange price quoted for the company's
stock on the XETRA electronic trading platform (or
an equivalent subsequent system) when the Frankfurt stock
exchange opens for trading on the date of purchase.
If they <strong>are</strong> purchased through a public offer to buy addressed
to all the company's sh<strong>are</strong>holders, the purchase price offered
or the limits of the price range offered per sh<strong>are</strong> (excluding
incidental expenses) must not be more than 20% higher or
lower than the average closing price for the company's stock
on the XETRA electronic trading platform (or an equivalent
subsequent system) quoted on the Frankfurt stock exchange
on the last three trading days before publication of the offer.
<strong>The</strong> offer can be adjusted if the price deviates significantly
following publication of the offer. In this case, the price will be
<strong>based</strong> on the corresponding average closing price on the last
three trading days before publication of the adjusted offer. <strong>The</strong>
volume offered can be limited. If the offer is oversubscribed,
acceptance must be prorated in accordance with the sh<strong>are</strong>s
offered in each case. Priority may be given to accepting
smaller numbers of up to 100 of the sh<strong>are</strong>s offered for sale
per sh<strong>are</strong>holder.
<strong>The</strong> Board of Management is authorized, with the consent of
the Supervisory Board, to use the company sh<strong>are</strong>s acquired
on the basis of this or a previous authority for the following
purposes:
<strong>The</strong> sh<strong>are</strong>s may also be sold by other means than through the
stock exchange or by offer to all sh<strong>are</strong>holders if they <strong>are</strong> sold
in return for cash payment at a price not significantly lower
than the stock exchange price quoted for the company's
stock at the time of sale. However, this authority applies subject
to the proviso that the sh<strong>are</strong>s sold on the basis of this
authority do not exceed a prorated amount equal to 10% of
the sh<strong>are</strong> capital, neither at the time of becoming effective
nor at the time of exercising this authority. <strong>The</strong> maximum limit
of 10% is reduced by the prorated amount of sh<strong>are</strong> capital
corresponding to the sh<strong>are</strong>s issued within the framework of
a capital increase during the term of this authority for which
subscription rights <strong>are</strong> excluded in accordance with Section
186 (3), fourth sentence, of the Stock Companies Act (AktG).
<strong>The</strong> maximum limit of 10% is also reduced by the prorated
amount of sh<strong>are</strong> capital corresponding to the sh<strong>are</strong>s issued
95

96
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
or to be issued in order to service bonds with conversion or
option rights, insofar as the bonds have been issued during
the term of this authority with exclusion of subscription rights
in accordance with Section 186 (3), fourth sentence, of the
Stock Companies Act (AktG).
Sh<strong>are</strong>s can be sold in return for non-cash consideration, in
particular in conjunction with business combinations and the
acquisition of companies, company parts and holdings in
companies.
<strong>The</strong> sh<strong>are</strong>s can be offered to persons employed by the company
or one of its affiliated companies.
<strong>The</strong> sh<strong>are</strong>s can be used to discharge the company's obligation
under cum-warrant and/or convertible bonds issued or
guaranteed by the company in the future.
This authority can be exercised in the full amount or partamounts,
on one or more occasions in the pursuit of one or
more objectives. <strong>The</strong> sh<strong>are</strong>holders' right of subscription to
these own sh<strong>are</strong>s is excluded. In addition, the Board of Management
may, with the consent of the Supervisory Board,
exclude the right of subscription for fractional amounts, with
the consent of the Supervisory Board, when own sh<strong>are</strong>s
<strong>are</strong> sold within the context of an offer to all the company's
sh<strong>are</strong>holders. <strong>The</strong> Board of Management is also authorized
to collect the acquired own sh<strong>are</strong>s with the consent of the
Supervisory Board without requiring a further resolution of
the sh<strong>are</strong>holders' meeting.
b. Capital reserve
<strong>The</strong> capital reserve developed as follows in the year under
review:
in '000 EUR
Total as at 1 January 2010 36,544
Changes in 2010 5,893
Total as at 31 December 2010 42,437
Changes in 2011 3,479
Total as at 31 December 2011 45,916
A surplus in the amount of EUR 3,479 thousand resulting
from the capital increase in 2011 was allocated to the
capital reserve.
c. accumulated net income
With regard to the development of accumulated net income,
we refer to the figures presented in the consolidated statement
of changes in equity and the consolidated statement
of comprehensive income
<strong>The</strong> accumulated net income includes generated Group
equity, the reserve from currency translation and the other
transactions recognized outside profit or loss.
Generated Group equity comprises the accumulated
consolidated income of the reporting periods, the waivers
of repayment given by the sh<strong>are</strong>holders, transaction
expenses and the reserve from remeasurement when IFRS
standards were applied for the first time.
<strong>The</strong> other transactions recognized outside profit or loss
concern actuarial gains and losses from the provisions
for pensions, changes in the fair value of securities and
the deferred taxes associated with these in each case.
<strong>The</strong> amounts recognized in the financial year 2011 <strong>are</strong>
presented in the consolidated statement of comprehensive
income.

d. Capital management
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
Group equity displays a negative value in the amount of
EUR 73,344 thousand and is made up as follows:
in '000 EUR 31.12.2011 31.12.2010
Subscribed capital 67,847 45,231
Capital reserve 45,916 42,437
Accumulated net income – 187,107 – 157,390
Total – 73,344 – 69,722
Implementation of the restructuring agreement II signed
on 7 February 2011 yielded effects totalling EUR 51.1 mil-
lion (capital increase and waiver of repayment) which have
improved the Group equity and offset the net loss for the
year. In early January 2012, the waiver of repayment in the
amount of EUR 25 million by a major sh<strong>are</strong>holder which
was originally planned for 2011 led to a further significant
improvement in equity.
<strong>The</strong> ALNO Group's net financial liabilities <strong>are</strong> as follows:
31.12.2011
in '000 EUR
31.12.2010
in '000 EUR
Change
in '000 EUR
Change
in %
Sh<strong>are</strong>holder loans and other financial liabilities
Non-current 10,482 13,057 – 2,575 – 19.7
Current 99,447 73,495 25,952 35.3
109,929 86,552 23,377 27.0
Minus liquid assets – 2,243 – 3,041 – 798 – 26.2
Net financial liabilities 107,686 83,511 24,175 28.9
Total assets 159,670 157,698 1,972 1.3
Net financial liabilities in % of total assets 67.4 53.0
Net financial liabilities have increased by EUR 24,175
thousand of 28.9% over the previous year as a result of
transforming trade accounts payable into financial liabilities
in the amount of EUR 28,898 thousand. At the same
time, total trade accounts payable declined by EUR 18,228
thousand, due to a waiver of repayment in the amount of
EUR 25,000 thousand and the aforementioned transformation.
Since equity decreased by EUR 3,622 thousand, this
consequently led to a slight rise of EUR 1,972 thousand
or 1.3% in total assets as comp<strong>are</strong>d to the previous year.
<strong>The</strong> increase in total assets was essentially due to lower
utilization of the factoring volume in relation to the previous
year while gross trade accounts payable remained virtually
97

98
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
unchanged. This was offset by the reduction of EUR 2,266
thousand in inventories and the decline of EUR 2,558 thou-
sand in current other assets. Overall, net financial liabilities
in relation to total assets rose from 53.0% to 67.4%.
After adjustment for the waiver of repayment which was
only realized on 6 January 2012, net financial liabilities
would have declined from 53.0% to 51.8%, as shown
below:
in '000 EUR 31.12.2011
Sh<strong>are</strong>holder loans and other
financial liabilities
Waiver of
repayment 6.1.2012
Non-current 10,482 10,482
Current 99,447 – 25,000 74,447
109,929 – 25,000 84,929
Minus liquid assets – 2,243 – 2,243
Net financial liabilities 107,686 – 25,000 82,686
Total assets 159,670 159,670
Net financial liabilities in % of
total assets 67.4 51.8
<strong>The</strong> sh<strong>are</strong>holders' equity for ALNO AG presented in the
single-entity financial statement as at 31 December 2011
in accordance with the German Commercial Code (HGB)
totals EUR 26,209 thousand (previous year: EUR 31,279
thousand). This reduction of EUR 5,070 thousand in equity
is due, on the one hand, to the net loss for the year in the
amount of EUR 31,165 thousand. This is countered by the
capital increase totalling EUR 26,095 thousand undertaken
in the financial year 2011. Sh<strong>are</strong>holders' equity according
to the German Commercial Code (HGB) has now improved
significantly following a sh<strong>are</strong>holder's waiver of repayment
in the amount of EUR 25,000 thousand in early January
2012. Changes in equity <strong>are</strong> monitored by ALNO AG on a
monthly basis.
11. ProvIsIoNs for PeNsIoNs
<strong>The</strong> ALNO Group's company pension scheme is essentially
<strong>based</strong> on direct, defined-benefit pension commitments.
As a rule, pensions <strong>are</strong> calculated according to the
employee's period of service and pensionable earnings.
<strong>The</strong> aforementioned commitments <strong>are</strong> measured on the
basis of actuarial assessments. <strong>The</strong>se assessments <strong>are</strong>
<strong>based</strong> on the applicable legal, economic and tax conditions
in the country concerned. Valuation parameters were
specifically applied for the countries concerned.
Provisions <strong>are</strong> measured according to the present value of
entitlement (Projected Unit Credit Method) in compliance
with IAS 19, taking into account the future development.
A discount rate of 4.8% or 5.4% (previous year: 5.4%)
is applied in Germany, which accounts for over 99.8%
(previous year: 99.9%) and hence the lion's sh<strong>are</strong> of the
provision. <strong>The</strong> discount rate abroad equals 4.8% (previous
year: 5.4%).
In Germany, existing commitments <strong>are</strong> measured with a
rise of 0.0% (previous year: 1.0%) in wages and salaries
and an average pension trend of 1.0% or 1.5% (previous
year: 1.0% and 1.5%). Higher loans and salaries <strong>are</strong>
not expected abroad. Pensions abroad <strong>are</strong> assumed to
increase by 5.0% (previous year: 5.0%) on average. Staff
fluctuation is calculated for each specific plant and is set at
0.0% (previous year: 0.0% or 1.0%) in Germany. A fluctuation
rate of 2.1% (previous year: 3.6%) is expected abroad.
Expected earnings from plan assets <strong>are</strong> calculated with an
interest rate of 4.2% in Germany and 3.4% abroad (previous
year: 4.2% and 3.4%, respectively). <strong>The</strong> expected
income from plan assets corresponds to the average return
on non-current investments on which the plan assets <strong>are</strong>
<strong>based</strong>. Actual income from plan assets amounted to EUR
23 thousand (previous year: EUR 140 thousand).
In other countries, the plan assets comprise non-current
investments in life insurance; in Germany, the plan assets
<strong>are</strong> centrally invested through Allianz Global Investors.
<strong>The</strong> plan assets posted in the balance sheet <strong>are</strong> not used
by the company.

<strong>The</strong> following figures have been recognized in the consoli-
dated income statement:
in '000 EUR 2011 2010
Current service costs 0 31
Interest expense 952 1,003
Expected return on plan assets – 51 – 43
901 991
Except for the interest expense, which is posted under
financial expenses, the expenditures <strong>are</strong> recognized as
retirement benefit expenses.
<strong>The</strong> present value of entitlement is reconciled with the
reported provision as follows:
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
in '000 EUR 2011 2010 2009 2008 2007
Present value of entitlement, benefit obligations
financed from provisions 17,966 16,957 16,061 16,258 16,651
Present value of entitlement, fund-financed
benefit obligations 1,339 1,236 1,132 936 1,184
Present value of entitlement, direct benefit obligations
(DBO) 19,305 18,193 17,193 17,194 17,835
Fair value of plan assets – 1,306 – 1,220 – 992 – 888 – 1,083
Provision for pensions 17,999 16,973 16,201 16,306 16,752
Empirical gains (-) or losses (+) from benefit
obligations 164 – 117 429 – 30 38
<strong>The</strong> present value of defined benefit obligations has
changed as follows:
in '000 EUR 2011 2010
Commitment at the start of each
financial year 18,193 17,193
Interest expense 952 1,003
Current service costs 0 31
Pension payments in the period – 1,116 – 1,030
Actuarial gains (-) or losses (+) 1,271 970
Currency differences 5 26
Commitment at the end of each
financial year 19,305 18,193
99

100
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
<strong>The</strong> fair value of plan assets has developed as follows:
in '000 EUR 2011 2010
Commitment at the start of each
financial year 1,220 992
Expected return on plan assets 51 43
Employers' contributions 61 70
Actuarial gains (-) or losses (+) – 28 97
Currency differences 2 18
Commitment at the end of each
financial year 1,306 1,220
Due to compliance with the maximum limit pursuant to
IAS 19.58 (b), the actuarial gains and losses include an
actuarial loss in the amount of EUR 48 thousand (previous
year: EUR 51 thousand). <strong>The</strong> change of EUR 3 thousand
(previous year: EUR 28 thousand) has been recognized in
equity outside profit or loss with other actuarial gains and
losses in the amount of EUR -1,302 thousand (previous
year: EUR -822 thousand) As at the balance sheet date,
actuarial losses totalled EUR 2,025 thousand (previous
year: EUR 726 thousand).
12. o<strong>The</strong>r ProvIsIoNs
in '000 EUR 1.1.2011 Utilization Reversal Transfer Allocation Accr. int. Exchange differ. 31.12.2011
Non-current provisions
Personnel costs 3,454 – 75 – 43 – 612 18 131 0 2,873
Storage 319 0 0 0 0 0 0 319
Current provisions
<strong>The</strong> provisions for personnel costs essentially comprise
provisions for the pre-retirement part-time working
arrangements customary in Germany. <strong>The</strong> provision for
pre-retirement part-time working encompasses expenses
for wage and salary payments to employees in the off-work
phase (settlement backlog) and the additional increases
required for the entire remaining duration of pre-retirement
part-time working. It also includes employee termination
payments in the amount of EUR 209 thousand (previous
year: EUR 194 thousand) in conjunction with pre-retirement
part-time working. A discount rate of 2.5% (previous
year: 3.5%) is taken into account when calculating the
provision. EUR 284 thousand (previous year: EUR 268
thousand) <strong>are</strong> posted under other non-current assets for
the refunds to be expected from the Federal Employment
Agency in conjunction with rights under the German Act
on Pre-retirement Part-time Working (AltTZG).
<strong>The</strong> provision for warranties, damages and contingent
losses encompasses free deliveries on account of faulty
<strong>good</strong>s, missing parts and other defects which <strong>are</strong> measured
at production cost. At the same time, the provision
also covers risks in conjunction with claims for damages
by customers and suppliers; these <strong>are</strong> recognized at their
expected value. Provisions <strong>are</strong> also formed for contingent
losses from delivery obligations, for which the unavoidable
costs for discharging the obligation will exceed the
expected economic benefit.
3,773 – 75 – 43 – 612 18 131 0 3,192
Warranties, damages and
contingent losses 1,523 – 1,043 – 177 0 1,749 0 1 2,053
Reorganization 3,697 – 1,610 – 2,077 0 0 0 0 10
Cost of financial statements
and tax consulting 362 – 362 0 0 0 0 0 0
Personnel costs 1,974 – 948 0 612 1,865 0 0 3,503
Taxes 156 – 70 – 25 0 0 0 0 61
Total 7,712 – 4,033 – 2,279 612 3,614 0 1 5,627

<strong>The</strong> reorganization provision includes the payments still
outstanding in conjunction with the employment and quali-
fication company at the Pfullendorf location.
<strong>The</strong> non-current provisions relating to pre-retirement part-
time working arrangements will for the most part be con-
sumed within the next two years. <strong>The</strong> other non-current
personnel provisions and the provision for safe storage will
be consumed within the next ten years.
13. sh<strong>are</strong>holder loaNs
Financial liabilities in the amount of EUR 365 thousand
(previous year: EUR 365 thousand) existed in the financial
year, in the form of loans granted by the sh<strong>are</strong>holders of
ALNO AG.
14. o<strong>The</strong>r fINaNCIal lIaBIlITIes
in '000 EUR
31.12.2011
Total
Remaining term
< 1 year 1 to 5 years > 5 years
Accounts payable
to banks 79,757 69,275 5,271 5,211
Other financial
liabilities 29,807 29,807 0 0
Total 109,564 99,082 5,271 5,211
in '000 EUR
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
31.12.2010
Total
Remaining term
< 1 year 1 to 5 years > 5 years
Accounts payable
to banks 80,798 67,741 7,378 5,679
Other financial
liabilities 5,389 5,389 0 0
Total 86,187 73,130 7,378 5,679
In addition to loans which <strong>are</strong> regularly renewed under
blanket agreements with banking institutes, the company
also has other loans with quarterly, half-yearly or yearly
repayment of principal.
Some of the loan agreements specify a variable rate of
interest, others a fixed rate of interest. <strong>The</strong> interest rates
essentially lie between 4.1% p.a. and 7.1% p.a. (previous
year: between 4.3% p.a. and 9.0% p.a.).
<strong>The</strong> accounts payable to banks include foreign currency
loans in the amount of GBP 871 thousand (previous year:
GBP 792 thousand) and CHF 1,320 thousand (previous
year: CHF 1,600 thousand).
<strong>The</strong> waiver of repayment realized by a sh<strong>are</strong>holder in early
January 2012 will relieve the current financial liabilities by
EUR 25,000 thousand in the following year.
<strong>The</strong> other financial liabilities <strong>are</strong> primarily due to Comco
Holding AG, Nidau, Switzerland, taking over further trade
accounts to be paid to Bauknecht Hausgeräte GmbH,
Stuttgart, by the ALNO Group.
Covenants (loan terms) have been agreed for the loan
extended by a subsidiary. <strong>The</strong>se relate to the equity ratio
and upper limit for cost allocations charged by the Group.
As at the balance sheet date, the agreed loan terms were
not met insofar as the equity ratio was concerned. For this
reason, the loan valued at EUR 1,125 thousand as per 31
December 2011 was completely reclassified as a current
financial liability.
<strong>The</strong> accounts payable to banks <strong>are</strong> secured through
charges on property and assignment of the right to release
of free land charge portions, as well as through the transfer
of machinery and equipment by way of security. Accounts
payable to banks <strong>are</strong> additionally secured through assignment
of the trade accounts receivable from customers, as
well as accounts and right receivable from central regulatory
offices, by pledging non-capitalized proprietary rights,
through the transfer of stocks by way of security, and by
pledging the limited partners' sh<strong>are</strong>s in Gustav Wellmann
GmbH & Co. KG, Enger, and the sh<strong>are</strong>s held in Casawell
Service GmbH, Enger, Impuls Küchen GmbH, Brilon, and
Pino Küchen GmbH, Coswig (Anhalt).
As at the balance sheet date, the assets serving as
collateral <strong>are</strong> posted in the consolidated balance sheet
with the following carrying amounts:
in '000 EUR 31.12.2011 31.12.2010
Land and buildings 44,349 45,486
Machinery and technical equipment 6,037 6,002
Inventories 13,630 14,184
Trade accounts receivable 12,798 14,408
101

102
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF FinanCiaL position
15. deferred GraNTs aNd suBsIdIes froM
PuBlIC auThorITIes
Deferred grants and subsidies from public authorities in
the amount of EUR 756 thousand (previous year: EUR
781 thousand) comprise investment grants for a subsidiary
in the new German states. In the financial year, EUR 25
thousand (previous year: EUR 26 thousand) were reversed
and recognized as income.
16. Trade aCCouNTs PaYaBle aNd o<strong>The</strong>r
fINaNCIal lIaBIlITIes
in '000 EUR 31.12.2011 Total
Remaining term
< 1 year 1 to 5 years > 5 years
Trade accounts payable 62,168 62,168 0 0
Other financial liabilities 24,716 24,656 60 0
thereof customer discounts 17,007 17,007 0 0
thereof unpaid invoices 3,729 3,729 0 0
thereof customer accounts with credit balances 2,855 2,855 0 0
Total 86,884 86,824 60 0
in '000 EUR 31.12.2010 Total
Remaining term
< 1 year 1 to 5 years > 5 years
Trade payables 80,396 80,396 0 0
Other financial liabilities 21,374 21,292 82 0
thereof customer discounts 15,952 15,952 0 0
thereof unpaid invoices 2,716 2,716 0 0
thereof customer accounts with credit balances 2,185 2,185 0 0
thereof finance leases 49 49 0 0
Total 101,770 101,688 82 0
Liabilities under finance leases developed as follows in the
year just ended:
in '000 EUR
Term to maturity
< 1 year 1 to 5 years > 5 years
Lease payments, nominal 52 0 0
Discounting – 3 0 0
Present values 49 0 0

17. o<strong>The</strong>r lIaBIlITIes
in '000 EUR 31.12.2011 Total
Remaining term
< 1 year 1 to 5 years > 5 years
Personnel 6,202 6,202 0 0
Other 1,067 1,067 0 0
Other taxes 848 848 0 0
Social security 152 152 0 0
Total 8,269 8,269 0 0
in '000 EUR 31.12.2010 Total
Remaining term
< 1 year 1 to 5 years > 5 years
Personnel 7,249 7,249 0 0
Other 418 418 0 0
Other taxes 1,426 1,426 0 0
Social security 315 315 0 0
Total 9,408 9,408 0 0
E. notes to the consolidated
cash flow statement
GeNeral
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE ConsoLidatEd statEmEnt oF Cash FLoW
In compliance with IAS 7 (Cash Flow Statements), the con-
solidated cash flow statement shows the change in cash
and cash equivalents in the Group due to payment flows
from operating activities, investment activities and financing
activities, as well as through the change in exchange
rates during the year under review.
In the financial year 2011, trade accounts payable in the
amount of EUR 25 million were reclassified as income following
the waiver of repayment by Comco Holding AG,
Nidau, Switzerland, and posted in the result from reorganization.
Trade accounts payable in the amount of a further
EUR 28 million were transformed into financial liabilities
payable to Comco Holding AG, Nidau, Switzerland.
<strong>The</strong> cash fund (cash and cash equivalents) at the end of
each financial year is presented in D. 9.
103

104
ConsoLidatEd FinanCiaL statEmEnts | notEs to thE sEGmEnt REpoRts
F. notes to the segment
reports
In conjunction with segment reporting, the activities of
the ALNO Group were defined according to business
segments in compliance with the rules of IFRS 8. Segments
which reported to the Board of Management <strong>are</strong>
not combined. This breakdown is <strong>based</strong> on the internal
management and reporting, and encompasses the segments
ALNO, WELLMANN, IMPULS, PINO, the foreign
subsidiaries (ATG) and other companies.
<strong>The</strong> ALNO segment comprises ALNO AG in Pfullendorf,
which builds brand name kitchens in the upper and middle
price group at the Pfullendorf location; the WELLMANN
segment produces kitchens in the middle price group
at the Enger location. <strong>The</strong> IMPULS segment comprises
Impuls Küchen GmbH in Brilon, while the PINO segment
comprises Pino Küchen GmbH in Coswig (Anhalt); both
produce kitchens in the lower price range. <strong>The</strong> foreign
subsidiaries encompass the marketing companies in other
European countries. Two special purpose entities and an
intermediate holding company <strong>are</strong> recognized under other
companies.
<strong>The</strong> segment reports <strong>are</strong> <strong>based</strong>, as a matter of principle,
on the same reporting, recognition and measurement
policies as the consolidated financial statements. For
segment reporting purposes, the leases of the special purpose
entities <strong>are</strong> always treated as operating leases. <strong>The</strong>
at-equity investment is recognized at cost. Internal sales
reflect the value of sales between Group companies; these
were effected at market prices.
Decisions concerning the allocation of resources and
assessment of the reportable segments' performance <strong>are</strong>
made by the full Board of Management.
<strong>The</strong> segment data <strong>are</strong> presented below according to fields
of business:
2011
According to segments in '000 EUR ALNO Wellmann Impuls Pino ATG Other
Sales revenue
Consolidation
Total
Foreign sales 90,415 130,105 112,009 95,183 25,098 0 0 452,810
Domestic sales 7,958 5,562 4,084 31 0 1,729 – 19,364 0
Total sales 98,373 135,667 116,093 95,214 25,098 1,729 – 19,364 452,810
Earnings
Segment EBITDA -21,746 – 12,636 7,534 2,891 131 1,570 27,460 5,204
Segment EBIT -26,779 – 18,311 4,667 745 – 118 1,483 27,615 – 10,698
Segm. Profit/loss before income taxes (EBT) – 33,729 – 21,996 4,332 540 – 350 718 25,269 – 25,216
Income taxes 103 – 235 – 60 – 95 – 6 – 73 21 – 345
Income for the period – 33,626 – 22,231 4,272 445 – 356 645 25,290 – 25,561
Scheduled write-downs 738 5,675 2,867 2,146 93 87 – 7 11,599
Impairment losses 4,295 0 0 0 156 0 – 148 4,303
Financial income 772 38 799 618 3 0 – 2,158 72
Financial expenses 6,722 3,723 1,134 823 235 765 – 2,163 11,239
Income from investm. measured at equity – 1,000 0 0 0 0 0 – 2,351 – 3,351
Assets and liabilities
Segment assets 115,138 61,254 39,149 32,155 9,425 63,952 – 161,403 159,670
Segment liabilities 147,689 84,145 31,893 27,034 11,014 10,042 – 78,803 233,014
At-equity investments 5,000 0 0 0 0 0 – 4,129 871
Other segment information
Investments 6,528 7,217 2,415 2,433 4 0 0 18,597

ConsoLidatEd FinanCiaL statEmEnts | notEs to thE sEGmEnt REpoRts
2010
According to segments in '000 EUR ALNO Wellmann Impuls Pino ATG Other
Sales revenue
Consolidation
Total
Foreign sales 98,331 130,067 117,966 93,252 27,681 0 0 467,297
Domestic sales 5,502 7,484 3,299 367 0 1,724 – 18,376 0
Total sales 103,833 137,551 121,265 93,619 27,681 1,724 – 18,376 467,297
Earnings
Segment EBITDA -17,285 -1,580 10,890 6,800 525 1,571 65 986
Segment EBIT -20,234 -5,917 8,147 4,961 100 1,484 341 -11,118
Segment Profit/loss before income taxess -20,218 -9,694 7,754 4,748 – 315 665 4,882 -12,178
Income taxes -124 – 291 – 13 106 – 458 – 73 – 53 – 906
Income for the period – 20,342 – 9,985 7,741 4,854 – 773 592 4,829 – 13,084
Amortization and depreciation 656 4,337 2,743 1,839 210 87 – 93 9,779
Impairment losses 2,293 0 0 0 215 0 – 183 2,325
Financial income 10,376 18 775 724 43 0 – 1,554 10,382
Financial expenses 10,360 3,795 1,168 937 458 819 – 6,002 11,535
Income from investm. measured at equity 0 0 0 0 0 0 93 93
Assets and liabilities
Segment assets 107,917 56,335 38,061 28,165 9,212 64,034 – 146,026 157,698
Segment liabilities 134,206 55,312 30,960 23,230 10,020 10,771 – 37,079 227,420
At-equity investments 4,000 0 0 0 0 0 – 1,819 2,181
Other segment information
Investments 3,356 6,158 2,978 3,292 11 0 0 15,795
Internal sales within the ALNO Group have been eliminated
in the consolidated sales revenue.
<strong>The</strong> consolidation entries posted in the line “Segment
result before income taxes” <strong>are</strong> comprised as follows:
in '000 EUR 2011 2010
Capital consolidation – 808 4,481
Debt consolidation 28,114 – 444
Other consolidation entries – 2,037 845
Total 25,269 4,882
<strong>The</strong> other consolidation entries concern the elimination
of interim results in inventories, the corrections made at
Group level on write-downs in the ATG segment, and the
effect of at-equity measurement on results.
<strong>The</strong> figures presented for amortization, depreciation and
impairment losses in the column Consolidation <strong>are</strong> the
result of corrections made at Group level on the basis of
impairment testing in the ATG segment.
<strong>The</strong> consolidation entries posted for financial income and
expenses comprise the elimination of intra-Group interest.
In the previous year, they also included the elimination of
intra-Group write-downs on participating interests in the
amount of EUR 4,418 thousand.
105

106 ConsoLidatEd FinanCiaL statEmEnts | manaGEmEnt oF FinanCiaL Risks
<strong>The</strong> consolidation entries in conjunction with segment
assets <strong>are</strong> made up as follows:
in '000 EUR 2011 2010
Capital consolidation – 108,443 – 108,367
Debt consolidation – 44,314 – 30,718
At-equity measurement – 4,129 – 1,819
Other consolidation entries – 4,517 – 5,122
Total – 161,403 – 146,026
<strong>The</strong> other consolidation entries refer to deferred taxes in
the amount of EUR 4,031 thousand (previous year: EUR
4,479 thousand), the elimination of interim results in inventories
and the impairment losses on fixed assets which <strong>are</strong>
all netted at Group level.
<strong>The</strong> consolidation entries in conjunction with segment
liabilities comprise the elimination of intra-Group liabilities
and offsetting deferred taxes.
Regional sales <strong>are</strong> determined according to the place of
delivery. <strong>The</strong>re is no external customer in the ALNO Group
with whom 10% or more of the total sales revenue is
generated.
Total sales according to regions
in '000 EUR 2011 2010
Germany 326,397 334,620
Rest of Europe 105,456 108,089
Other foreign countries 20,957 24,588
Total 452,810 467,297
Intangible assets, property, plant
and equipment and investments
measured at equity in '000 EUR 2011 2010
Germany 80,349 79,536
Rest of Europe 1 11
Total 80,350 79,547
G. management of financial
risks
1. rIsK MaNaGeMeNT PrINCIPles
<strong>The</strong> basic principles of financial policy <strong>are</strong> defined annually
by the Board of Management and monitored by the Supervisory
Board. Group Treasury is responsible for implementing
the financial policy, as well as for the ongoing risk
management. Certain transactions require prior approval by
the Board of Management, which is also regularly informed
of the scope and magnitude of the current risk appraisal.
Effective management of the market risks is one of the main
Treasury responsibilities. Simulations using various worst
case and market scenarios <strong>are</strong> performed to assess the
impacts of different conditions in the marketplace.
<strong>The</strong> Group is exposed to financial risks from financial
assets and liabilities, as well as from planned transactions.
Financial assets, such as trade accounts receivable and
liquid assets, <strong>are</strong> the direct result of operating activities.
Financial assets also include securities which serve as
hedges for claims from pre-retirement part-time working
arrangements. <strong>The</strong> financial liabilities primarily comprise
bank loans, other financial liabilities and loans on current
account, as well as trade accounts payable. <strong>The</strong> main
purpose of financial liabilities is to finance the Group's business
operations.
<strong>The</strong> main risks arising for the Group from the financial assets
and liabilities comprise interest rate risks, liquidity risks, currency
risks and risk of default.
Due to the Group's low-risk investment strategy, the risk
of changes in the fair value of securities (price risk) is not
a material risk from a Group vantage.

2. CurreNCY rIsKs
<strong>The</strong> currency risk refers to the risk of changes in the fair
value or future cash flows of monetary items on account
of fluctuations in exchange rates.
Currency risks basically arise from investments, financing
activities and operating activities which <strong>are</strong> undertaken in
a currency other than the company's functional currency.
However, currency risks without impact on the Group's
cash flows, e.g. due to translating foreign corporate entities'
assets and liabilities into the Group currency, <strong>are</strong>
never considered in further detail by Group Treasury.
<strong>The</strong>re was no material risk in the investment sector as at
the balance sheet date.
Currency risks in the financing sector arise from bank loans
and loans on current account in foreign currencies, as
well as from foreign currency loans which <strong>are</strong> extended to
Group companies for financing purposes.
As from 1 January 2010, the German plants basically
invoice customers directly in Switzerland and the United
Kingdom. Invoices <strong>are</strong> made out in euros. <strong>The</strong>re <strong>are</strong> consequently
no major currency risks for the ALNO Group in
the sales sector.
<strong>The</strong> following table shows the effect of changes in the fair
value of monetary foreign currency items on Group profit/
loss before income taxes. <strong>The</strong>re <strong>are</strong> no effects on equity
outside profit and loss.
Development of exchange
rate
Effect on result in '000 EUR
Income (+)/Expense (-)
GBP CHF GBP CHF
2011 10.0 % 10.0 % 482 81
– 10.0 % – 10.0 % – 482 – 81
2010 10.0 % 10.0 % 248 102
– 10.0 % – 10.0 % – 248 – 102
ConsoLidatEd FinanCiaL statEmEnts | manaGEmEnt oF FinanCiaL Risks
3. INTeresT raTe rIsKs
<strong>The</strong> interest rate risk refers to the risk of changes in the fair
value or future cash flows of financial assets and liabilities
on account of changes in current interest rates.
<strong>The</strong> Group is primarily exposed to interest rate risks in
the eurozone. To minimize the effect of fluctuations in
interest rates in these regions, the interest rate risk for net
financial liabilities made out in euros is managed by ALNO
AG. Financial liabilities in foreign currencies only exist to a
subordinate extent. <strong>The</strong>re <strong>are</strong> no financial derivatives as at
the balance sheet date.
Financial liabilities and the variable-interest factoring volume
have been taken into account in the following analysis
of sensitivity to interest rate movements. Only financial
liabilities with variable interest rates have been included in
the analysis. <strong>The</strong> analysis is also <strong>based</strong> on the assumption
that the principal amounts and the ratio of fixed to variable
interest rates remain unchanged.
If the average interest rate were to be increased by 150
(previous year: 150) basis points, the result before taxes on
income would decrease by EUR 1,352 thousand (previous
year: EUR 1,451 thousand). A reduction of 150 (previous
year: 150) basis points would lead to an increase of EUR
1,352 thousand (previous year: EUR 1,451 thousand) in
profit/loss before income taxes.
4. rIsK of defaulT
<strong>The</strong> risk of default refers to the risk that a contractual partner
fails to discharge its payment obligations in conjunction
with financial assets.
Accounts receivable in operating business <strong>are</strong> continuously
monitored at segment level, i.e. decentralized. In
conjunction with Group receivables management, minimum
requirements as regards creditworthiness and maximum
exposure limits <strong>are</strong> defined for all business partners of the
ALNO Group. <strong>The</strong>se <strong>are</strong> <strong>based</strong> on a system of specified
limits for which compliance is constantly monitored. In
addition, the ALNO Group safeguards its trade receivables
through domestic credit insurance which, if an account
receivable is not paid, will indemnify the loss incurred in
the contractually agreed amount. Specific valuation allowances
<strong>are</strong> used to take account of the risk of default. Trade
receivables <strong>are</strong> secured through domestic credit insurance
107

108
ConsoLidatEd FinanCiaL statEmEnts | manaGEmEnt oF FinanCiaL Risks
and the del credere liability of the central regulatory offices
in the overall amount of 90% (previous year: 90%). <strong>The</strong>
ALNO Group companies decide in each individual case
whether or not to make use of the credit insurance.
In Germany, the kitchens produced by the ALNO Group <strong>are</strong>
sold through furniture stores and specialized kitchen retailers,
as well as self-service and RTA stores, most of which
<strong>are</strong> members of purchasing associations. Around 92%
of the kitchen furniture <strong>are</strong> sold through such purchasing
associations. Due to these market structures, the ALNO
Group is dependent on a small number of customers. <strong>The</strong>
risk of default by individual key accounts, however, is met
through domestic credit insurance or del credere liability
by central regulatory offices.
<strong>The</strong> risk of default for unimpaired financial assets and the
development of specific valuation allowances <strong>are</strong> summarized
in section D.6. "Trade accounts receivable".
5. lIquIdITY rIsKs
<strong>The</strong> liquidity risk refers to the risk that the Group is unable
to meet its contractual obligations in settling its financial
liabilities.
ALNO AG acts as financial coordinator for all Group
companies in order to ensure that the financing required
for the operational business is always adequate and as
cost-efficient as possible. <strong>The</strong> information required for this
purpose is updated on a monthly basis through roll-over
financial planning with a planning horizon of one year and
subjected to variance analyses.
This financial planning is supplemented by daily cash flow
development planning which is constantly reconciled with
the actual payment flows for the German companies.
<strong>The</strong> foreign subsidiaries <strong>are</strong> updated on a monthly basis.
Available liquidity reserves <strong>are</strong> monitored constantly by
ALNO AG.
in '000 EUR
Other financial liabilities
<strong>The</strong> volume of external financing required is reduced by
the intra-Group financial adjustment undertaken in Germany
within the framework of the cash pooling process, taking
into account statutory regulations also from the point of
view of the subsidiaries, thus improving the Group's nonoperating
result. Through this internal financial adjustment,
the surplus liquidity of individual Group companies can be
used to internally finance other Group companies. Cash
pooling is controlled manually.
Accounts receivable by Wellmann KG, as well as by Impuls
and Pino, have in the past been assigned within the scope
of factoring agreements in order to extend the liquidity
margin needed by the ALNO Group. <strong>The</strong> three companies
can make variable use of total factoring commitments in
the amount of EUR 41,000 thousand. Of this total, EUR
23,291 thousand (previous year: EUR 25,002 thousand)
were used on average over the year.
<strong>The</strong> table below presents the contractually agreed interest
payments and principal portions of the financial liabilities.
All liabilities which were included in the portfolio on the
closing date and for which payments had already been
contractually agreed have been included. <strong>The</strong> waiver of
repayment which was contractually agreed with a major
sh<strong>are</strong>holder in 2011 and realized in early January 2012
with regard to accounts payable to banks in the amount
of EUR 25 million has already been included in the following
calculation. Budgeted figures for new liabilities in
the future <strong>are</strong> not included in the calculation. Amounts in
foreign currency have been translated at the rate prevailing
on the reporting date. Variable interest payments have
been calculated on the basis of the last interest rates fixed
prior to the balance sheet date. Financial liabilities which
can be repaid at any time <strong>are</strong> always assigned to the
earliest possible time frame. Interest has been calculated
for 195 days, as financing is assured until 15 July 2012,
as at the balance sheet date.
Carrying amount
31.12.2011
Due in
2012 2013 – 2016 2017 or later
Accounts payable to banks 79,757 46,673 7,548 7,726
Other financial liabilities 29,807 30,257 0 0
Trade accounts payable and other financial liabilities 86,884 86,824 60 0
Sh<strong>are</strong>holder loans 365 420 0 0
Warranty obligations 0 273 0 0

in '000 EUR
Other financial liabilities
Carrying amount
31.12.2010
Due in
2011 2012 – 2015 2016 or later
Accounts payable to banks 80,798 72,840 10,226 8,621
Other financial liabilities 5,389 5,739 0 0
Trade accounts payable and other financial liabilities 101,770 101,688 82 0
Sh<strong>are</strong>holder loans 365 399 0 0
Accounts payable under finance leases 49 52 0 0
Warranty obligations 0 406 0 0
With regard to the measures taken to assure the com-
pany's continuation as a going concern and to assure its
liquidity, we refer to the information provided in Sections
B.1. "Basis for preparation of the financial statements" and
N. "Events after the closing date".
6. o<strong>The</strong>r INforMaTIoN oN fINaNCIal asseTs aNd
lIaBIlITIes
<strong>The</strong> following table presents the carrying amounts and
fair values of all financial assets and liabilities recognized
in the Group.
in '000 EUR 31.12.2011 31.12.2010
Financial assets Carrying amount Fair value Carrying amount Fair value
Liquid assets LaR 2,243 2,243 3,041 3,041
Trade accounts receivable LaR 41,339 41,339 32,996 32,996
Financial accounts receivable LaR 1,319 1,319 2,665 2,665
Securities AfS 3,163 3,163 3,426 3,426
Investments in associated companies AfS 5 * 5 *
Financial liabilities
Trade accounts payable FLaC 62,168 62,168 80,396 80,396
Other financial liabilities FLaC 24,716 24,716 21,325 21,325
Accounts payable under finance leases ** 0 0 49 49
Sh<strong>are</strong>holder loans FLaC 365 365 365 365
Other financial liabilities FLaC 109,564 109,564 86,187 86,187
* Fair value cannot be determined reliably.
** Not a category defined by IAS 39.
ConsoLidatEd FinanCiaL statEmEnts | manaGEmEnt oF FinanCiaL Risks
109

110
ConsoLidatEd FinanCiaL statEmEnts | manaGEmEnt oF FinanCiaL Risks
Classification according to categories within the meaning
of IAS 39
in '000 EUR 31.12.2011 31.12.2010
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Loans and Receivables
(LaR) 44,901 44,901 38,703 38,703
Available-for-Sale (AfS)
measured at fair value 3,163 3,163 3,426 3,426
measured at amortized
cost of acquisition 5 * 5 *
Financial Liabilities
measured at cost (FLaC) 196,813 196,813 188,322 188,322
* Fair value cannot be determined reliably.
<strong>The</strong> posted securities <strong>are</strong> recognized at fair value in their
full amount.
Sh<strong>are</strong>s held in associated companies <strong>are</strong> capitalized at the
amortized cost of acquisition, as there is no active market
for these. What's more, the fair value cannot be reliably
determined in any other way.
<strong>The</strong> carrying amounts of current financial assets and liabilities
correspond to their fair value on account of the short
term to maturity.
<strong>The</strong> carrying amounts of non-current financial assets and
liabilities correspond to their fair value on account of their
fair market rates.
<strong>The</strong> following hierarchy is used to measure and recognize
the fair value of financial instruments:
• Stage 1: Fair values determined with the aid of prices
quoted in active markets.
• Stage 2: Fair values determined with the aid of measure-
ment policies for which the input factors of significance
for the fair value <strong>are</strong> <strong>based</strong> on observable market data.
• Stage 3: Fair values determined with the aid of measurement
policies for which the input factors of significance
for the fair value <strong>are</strong> not <strong>based</strong> on observable market
data.
<strong>The</strong> securities measured at fair value in the ALNO Group,
in the amount of EUR 3,163 thousand (previous year:
EUR 3,426 thousand) fall under Stage 1 in this hierarchy.
This resulted in the following net gains and losses for
the financial assets and liabilities, classified according to
categories:
2011
in '000 EUR Interest Impairment
Other net
gains/losses Total
Loans and
Receivables 26 – 1,007 102 – 879
Available-for-Sale
(fair value) 0 0 30 30
Financial
Liabilities
measured at cost – 10,184 0 25,623 15,439
2010
in '000 EUR Interest Impairment
Other net
gains/losses Total
Loans and
Receivables 143 – 1,935 283 – 1,509
Available-for-Sale
(fair value) 0 0 43 43
Financial
Liabilities Held
for Trading 0 0 – 130 – 130
Financial
Liabilities
measured at cost – 9,800 0 10,520 720

ConsoLidatEd FinanCiaL statEmEnts | ContinGEnt LiaBiLitiEs and othER FinanCiaL CommitmEnts
Impairment of the "Loans and Receivables" relates to
the allocation to specific valuation allowance for trade
accounts receivable. <strong>The</strong> other net gains and losses
include income from the receipt of derecognized accounts
receivable and from the reversal of specific valuation allowances,
expenses from derecognized accounts receivable,
and gains and losses from currency translation.
<strong>The</strong> other net gains and losses recognized in the category
"Available-for-Sale – measured at fair value" include
income from investments in securities and the unrealized
changes in value recognized in equity.
In the previous year, the other net losses in the category
"Financial Liabilities Held for Trading" concerned expenses
from financial derivatives.
Income from derecognized liabilities, expenses from measurement
of foreign currency loans on the closing date and
income from realized waivers of repayment <strong>are</strong> recognized
under the other net gains and losses of "Financial Liabilities
measured at cost".
H. Contingent liabilities and
other financial commitments
As at 31 December 2011 liabilities under warranty agreements
exist in the amount of EUR 273 thousand (previous
year: EUR 406 thousand).
Other financial commitments <strong>are</strong> as follows:
2011
in '000 EUR
Due in
2012
Due in 2013
– 2016
Due in
2017 or
later Total
Accounts payable under
lease arrangements with
third parties 2,811 4,568 1,323 8,702
Other contract. arrangem.
with third parties 11,381 25,313 10,137 46,831
Ongoing investment
projects 685 0 0 685
Supply contracts 2,600 6,000 800 9,400
Total 17,477 35,881 12,260 65,618
2010
in '000 EUR
Due in
2011
Due in 2012
– 2015
Due in
2016 or
later Total
Accounts payable under
lease arrangements with
third parties 3,680 5,531 1,204 10,415
Other contract. arrangem.
with third parties 12,324 31,230 11,596 55,150
Ongoing investment
projects 2,273 0 0 2,273
Supply contracts 2,550 1,600 800 4,950
Total 20,827 38,361 13,600 72,788
Rental and leasing agreements with third parties primarily
concern leased vehicles and factory and office equipment.
<strong>The</strong> other contractual agreements with third parties concern
maintenance, service and power supply contracts.
Ongoing investment projects in the amount of EUR 685
thousand (previous year: EUR 2,273 thousand) relate
entirely to property, plant and equipment.
111

112
ConsoLidatEd FinanCiaL statEmEnts | RELatEd pERsons and CompaniEs
I. Related persons and
companies
Associated persons and companies <strong>are</strong> defined as persons
or business entities which can be controlled by the
reporting company, insofar as they <strong>are</strong> not already included
in the consolidated financial statements as consolidated
companies, or which can directly or indirectly exercise
control over the reporting company.
Business relations <strong>are</strong> as follows:
Business relationship
Persons concerned Major sh<strong>are</strong>holders Joint ventures Other related companies
2011
in '000 EUR
2010
in '000 EUR
2011
in '000 EUR
2010
in '000 EUR
2011
in '000 EUR
2010
in '000 EUR
Purchased <strong>good</strong>s and services 84,725 95,621 0 0 371 0
Interest paid 3,188 2,595 0 0 116 0
Interest received 0 0 0 101 0 0
Other expense 3 7 0 0 3,054 0
Other income 0 0 0 0 25,000 0
Financial accounts receivable and
trade accounts receivable 0 0 249 2,311 0 0
Financial liabilities 389 1,455 0 0 29,009 0
Trade accounts payable and other
liabilities 24,992 50,626 0 0 18 0
Interest rate
6.5% or 9%
or Euribor
+9%
Major sh<strong>are</strong>holders with whom business relations <strong>are</strong>
directly maintained <strong>are</strong>: Küchen Holding GmbH, Munich
(p<strong>are</strong>nt company), <strong>are</strong> IRE Beteiligungs GmbH, Stuttgart,
and indirectly: RCG International Opportunities S.à r.l.,
Luxemburg, Cognis S.à r.l., Luxemburg, and Bauknecht
Hausgeräte GmbH, Stuttgart.
<strong>The</strong> joint venture concerns ALNO Middle East.
<strong>The</strong> other related companies with which business relations
exist comprise Comco Holding AG, Nidau, Switzerland,
Comco Finanz AG, Nidau, Switzerland, Comco Management
GmbH, Stuttgart,and Max Müller + Partner AG, Biel,
Switzerland.
6.5% or 9% or
Euribor +9% 3 % 3 %
6.5% p.a.
plus 3.5% risk
premium n/a
<strong>The</strong> figure reported for purchased <strong>good</strong>s and services
essentially relates to the contract for delivery between
ALNO AG and Bauknecht Hausgeräte GmbH, Stuttgart.
This contract governs the supply of electrical appliances to
the ALNO Group and was concluded subject to standard
market conditions. <strong>The</strong> contract for delivery runs until 30
November 2015 and also includes an interest-bearing
delinquency schedule on which interest is charged at
customary market rates.
Küchen Holding GmbH (p<strong>are</strong>nt company) charged fees
totalling EUR 300 thousand (previous year: EUR 735 thousand)
for consulting services within the framework of its
service contract. EUR 3 thousand (previous year: EUR 207
thousand) were additionally charged for further consulting
services and travel expenses of a sh<strong>are</strong>holder of Küchen
Holding GmbH.

In the previous year, major sh<strong>are</strong>holders waived repayment
of sums in the amount of EUR 4,909 (including EUR 3,379
thousand by the p<strong>are</strong>nt company Küchen Holding GmbH).
This has been recognized outside profit or loss in the accu-
mulated net income. A further waiver of repayment was
issued by the p<strong>are</strong>nt company Küchen Holding GmbH in
the amount of EUR 25,000 thousand in early January 2012;
this waiver will only be recognized as income in 2012. <strong>The</strong>
loans granted by major sh<strong>are</strong>holders were all granted by
the p<strong>are</strong>nt company and run until 31 December 2011.
A customary agency commission in the amount of EUR
750 thousand was paid to Comco Holding AG, Nidau,
Switzerland, in conjunction with the capital increase.
Comco Holding AG, Nidau, Switzerland, received consideration
in the amount of EUR 2,000 thousand for preparing
a restructuring concept and collecting restructuring contributions.
Travel expenses and mobile telephony charges in
the amount of EUR 91 thousand were additionally invoiced
by this company. Comco Holding AG, Nidau, Switzerland,
and Comco Finanz AG, Nidau, Switzerland, received EUR
93 thousand for the provision of personnel. Remuneration
of the Supervisory Board of ALNO (Switzerland) AG,
Embrach, Switzerland, is accounted for by Comco Holding
AG, Nidau, Switzerland, as a corporate borrowing in the
amount of EUR 120 thousand.
In conjunction with the restructuring of operations, Comco
Holding AG, Nidau, Switzerland, Comco Management
GmbH, Stuttgart, and Max Müller + Partner AG, Biel,
Switzerland, received remuneration totalling EUR 346
thousand for consulting services rendered. <strong>The</strong>se consulting
services were invoiced at daily rates customary on the
market. Motor-related expenses in the amount of EUR 25
thousand were also charged out to ALNO AG.
ConsoLidatEd FinanCiaL statEmEnts | RELatEd pERsons and CompaniEs
In December 2011, Comco Holding AG, Nidau, Switzerland,
took over from Bauknecht Hausgeräte GmbH, Stuttgart,
the latter's trade accounts receivable from ALNO
AG (change of creditor from the point of view of ALNO
AG) in the amount of EUR 25,000 thousand. Due to the
subsequent waiver of repayment by Comco Holding AG,
Nidau, Switzerland, at the end of 2011, this yields other
income from derecognition of trade accounts payable in
the amount of EUR 25,000 thousand. This income is recognized
in the result from reorganization.
As at year-end, Comco Holding AG, Nidau, Switzerland,
had granted the ALNO Group loans totalling EUR 28,898
thousand. <strong>The</strong>se run until 1 April 2012, as at the balance
sheet date. Interest in the amount of 6.5% p.a. plus a
once-only risk premium of 3.5% in the amount of EUR 116
thousand was additionally due as per 31 December 2011.
Business transactions and the emoluments of corporate
officers <strong>are</strong> listed in Section J.
113

114 ConsoLidatEd FinanCiaL statEmEnts | supERvisoRy BoaRd and BoaRd oF manaGEmEnt
J. supervisory Board and
Board of management
Members of the suPervIsorY Board:
sh<strong>are</strong>holder representatives:
• Henning Giesecke, Zell (chairman)
Managing director of GSW Capital Management
GmbH, Munich
Managing director of HBconbet GmbH, Zell
• Werner Devinck, Knokke-Heist, Belgium
Vice President European Markets Whirlpool Europe
s.r.l., Comercio, Italy (since 1 January 2011)
Managing director of Bauknecht Hausgeräte GmbH,
Stuttgart (as from 29 April 2011)
Chairman of the Board of Management of Bauknecht
Hausgeräte GmbH, Stuttgart (until 29 April 2011)
• Dr. oec. Jürgen Diegruber, Gräfelfing
Managing Partner German Capital GmbH, Munich
Managing Partner Partners Group AG, Baar-Zug,
Switzerland (as from 1 January 2011)
• Anton Walther, Sulzbach/Taunus
Lawyer, chartered accountant, tax consultant
• Ruth Falise-Grauer, Geneva, Switzerland
(as from 14 July 2011)
Freelance industrial and interior designer
• Norbert J. Orth, Monaco, Monaco
(as from 14 July 2011)
Investor
• Christoph Maass, Jesteburg (until 14 July 2011)
Managing director of Borco-Marken-Import Matthiesen
GmbH & Co. KG, Hamburg
• Armin Weiland, Berg (until 14 July 2011)
Managing Partner German Capital GmbH, Munich
Managing Partner Partners Group AG, Baar-Zug,
Switzerland (as from 1 January 2011)
employee representatives:
• Rudolf Wisser, Messkirch (vice-chairman)
Employee in job scheduling at ALNO AG,
Pfullendorf
• Jörg Kespohl, Löhne
Commercial clerk at Gustav Wellmann GmbH & Co.
KG, Enger
• Gerhard Meyer, Brilon
Member of the works council at Impuls Küchen GmbH,
Brilon
Further mandates held by members of the Supervisory
Board in Supervisory Boards and other controlling bodies
within the meaning of Section 125 (1), fifth sentence, of
the Stock Companies Act (AktG):
• Henning Giesecke, Zell
Member of the Supervisory Board, Rothenberger AG,
Kelkheim
Chairman of the Supervisory Board, Endurance Capital
AG, Munich
Vice-chairman of the Supervisory Board, Leifeld Metal
Spinning AG, Ahlen (until 29 June 2011)
Chairman of the Supervisory Board, Kofler Energies
AG, Munich (until 20 December 2011)
Member of the Administrative Board, Erste Abwicklungsanstalt,
Düsseldorf
Chairman of the Supervisory Board, Valovis Bank,
Essen
(since 31 December 2011)
Member of the Supervisory Board, Yarra Investment
OY, Helsinki
• Werner Devinck, Knokke-Heist, Belgium
Member of the Supervisory Board, Gedelegeerd Bestuurder
Whirlpool Benelux N.V., Strombeek-Bever, Belgium
Member of the Supervisory Board, Bestuurder Whirlpool
Nederland B.V., Breda, Netherlands
Managing director of Whirlpool Austria GmbH, Wiener
Neudorf, Austria
Managing director of IRE Beteiligungs GmbH, Stuttgart
Member of the Supervisory Board, Bauknecht AG
Switzerland, Lenzburg, Switzerland

• Dr. oec. Jürgen Diegruber, Gräfelfing
President of the Supervisory Board of Caldergroup
Swiss AG, St. Gallen, Switzerland
Director of Calder Finco UK Ltd, Chester, United
Kingdom
Chairman of the Sh<strong>are</strong>holder Committee, Milano Investments
S.à r.L., Esch-sur-Alzette, Luxemburg
Member of the Supervisory Board, Leclanché S.A.,
Yverdon-les-Bains, Switzerland (until 16 April 2012)
Member – Board of Directors, Calder Group Limited,
Chester, United Kingdom
• Christoph Maass, Jesteburg
Member of the Supervisory Board of Master Consulting
AG, Frankfurt am Main
• Norbert J. Orth, Monaco, Monaco
Member – Board of Directors Frieden Ltd, Thun,
Switzerland
Vice President Smaragd AG, Thun, Switzerland
• Armin Weiland, Berg
Member of the Supervisory Board of RES Finco AG,
St. Gallen, Switzerland,
Member of the Supervisory Board of Leclanché S.A.,
Yverdon-les-Bains, Switzerland
Chairman of the Advisory Board of Tarvos Investments
GmbH, Munich (until 1 August 2011)
Chairman of the Supervisory Board of RES NewCo AG,
St. Gallen, Switzerland
Chairman of the Supervisory Board of Energy Group
Holding AG, St. Gallen, Switzerland
Vice President of the Supervisory Board of <strong>The</strong> Energy
Holding AG, St. Gallen, Switzerland
For their activities for the Supervisory Board, the members
of the Supervisory Board received total remuneration in the
amount of EUR 230,000 in the financial year 2011 (previous
year: EUR 268 thousand). <strong>The</strong> employee representatives
additionally received emoluments in the amount of EUR
168 thousand (previous year: EUR 166 thousand) from
their employment in the ALNO Group.
As in the previous year, members of the Supervisory Board
did not receive any fees for consulting services. Küchen
Holding GmbH charged fees totalling EUR 300 thousand
(previous year: EUR 735 thousand) for consulting services
within the framework of its service contract. As at 31
December 2011 the members of the Supervisory Board
held a total of 106,666 (previous year: 1000) no-par-value
sh<strong>are</strong>s.
ConsoLidatEd FinanCiaL statEmEnts | supERvisoRy BoaRd and BoaRd oF manaGEmEnt
MeMBers of <strong>The</strong> Board of MaNaGeMeNT:
• Max Müller, Magglingen/Switzerland (Chief Executive
Officer) (as from 6 April 2011)
• Ipek Demirtas, Überlingen (Director Finance, HR, IT)
(as from 13 July 2011)
• Elmar Duffner, Osnabrück (Director, Export Sales, Production,
Purchasing, Logistics, Product Development,
Marketing, Communications) (as from 1 November 2011)
• Christoph Fughe, Bad Salzuflen (Director Sales Germany)
(from 6 April 2011 until 29 February 2012)
• Jörg Deisel, Witten (Chief Executive Officer; Sales, Marketing
and Development) (until 6 April 2011)
• Jörg Artmann, Düsseldorf (Director Finance, HR, IT)(until
13 July 2011)
• Michael Paterka, Ravenstein (Director Production,
Purchasing, Logistics and Quality) (until 6 April 2011)
115

116
ConsoLidatEd FinanCiaL statEmEnts | supERvisoRy BoaRd and BoaRd oF manaGEmEnt
Further mandates held by members of the Board of Man-
agement in Supervisory Boards and other controlling bodies
within the meaning of Section 125 (1), fifth sentence, of the
Stock Companies Act (AktG):
• Max Müller, Magglingen/Switzerland
President of the Supervisory Board of Comco Holding AG,
Nidau, Switzerland
Member of the Supervisory Board of Comco Finanz AG,
Nidau, Switzerland
Director of Comco Fashion Ltd., Hong Kong,
People's Republic of China
President of the Supervisory Board of
Starlet Investment AG, Nidau, Switzerland
Member of the Supervisory Board of
Max Müller + Partner AG,
Biel, Switzerland
Director of East West Finance Ltd.,
Jersey, Channel Islands
President of the Supervisory Board of Schaerer Mayfield
Holding AG, Nidau, Switzerland
Member of the Supervisory Board of Renishaw Mayfield
AG, Nyon, Switzerland
President of the Supervisory Board of Smaragd Holding
AG, Thun, Switzerland
Member of the Supervisory Board of Frieden Creative
Design AG, Thun, Switzerland
Member of the Supervisory Board of La Boutique Suisse
AG, Nidau, Switzerland (until 25 August 2011)
Administrator of La Boutique Suisse Distribution S.r.l.,
Buk<strong>are</strong>st, Romania
Administrator of Helvetansa S.r.l., Buk<strong>are</strong>st, Romania
President of the Supervisory Board of ALNO (Switzerland)
AG, Embrach, Switzerland
• Elmar Duffner, Osnabrück
Member of the Economic Advisory Board, Cologne
Trade Fair and Exhibition Centre (Messe Köln), Cologne
(advisory)
President of the German Furniture Industry Association
(Verband der Deutschen
Möbelindustrie e. V.), Bad Honnef (honorary post)
Member of the Executive Board "Arbeitsgemeinschaft
Die Moderne Küche e. V.", Mannheim (honorary post)
Chairman of the German woodworking and plastics
processing industries (Verbände der Holzindustrie
und Kunststoffverarbeitung Westfalen-Lippe e. V.),
Herford (honorary post)
As at the balance sheet date, the active members of the
Board of Management held 545,507 (previous year: 55,643)
no-par-value sh<strong>are</strong>s.
reMuNeraTIoN rePorT
responsibility, objective and structure of remuneration
for the Board of Management
<strong>The</strong> Supervisory Board is responsible for defining the structure
and amount of remuneration for the Board of Management
of ALNO AG. <strong>The</strong> structure and amount of remuneration
paid to the Board of Management is regularly considered and
verified by the Supervisory Board.
<strong>The</strong> purpose of the system of remuneration for the Board of
Management is to reasonably compensate the members of
the Board of Management in accordance with their activities
and responsibilities while at the same time clearly and directly
taking account of the Board members' joint and personal
performance as well as that of the company through a high
level of variability.
To this end, the remuneration system includes both a fixed
basic element and a variable risk-like element as incentive for
the medium and long term. In order to ensure that the Board
members' remuneration is both competitive and reasonable,
this structure, the individual components and the complete
remuneration <strong>are</strong> reviewed each year.
2011 was characterized by a complete change of membership
of the Board of Management and of the responsibilities
assigned to each member. <strong>The</strong> remuneration paid to the
Board of Management in 2011 therefore comprised the following
elements as outlined in detail below.
<strong>The</strong> fixed basic remuneration including non-cash emoluments
is paid out in twelve monthly instalments and is <strong>based</strong> on each
Board member's <strong>are</strong>a of responsibility.
<strong>The</strong> variable element <strong>based</strong> on the company's medium and
long-term development is always <strong>based</strong> on Consolidated
revenues, Group EBITDA and free Group cash flow, as well
as on individual agreements on targets.

amount of remuneration paid to the Board of
Management in 2011
<strong>The</strong> following figures include payments promised or paid to
individual Board members by ALNO AG in conjunction with
their respective activities as a member of the Board of Man-
agement. Total emoluments for the Board of Management
comprise the sum of all remuneration paid in cash and all non-
cash benefits. <strong>The</strong> latter essentially comprise the provision
of company cars. EUR 1,822 thousand (previous year: EUR
2,071 thousand) were expensed altogether in 2011. Of this
total, the fixed element unrelated to performance accounted
for EUR 1,163 thousand (previous year: EUR 979 thousand)
and the performance-related variable element in the nature
of a medium-term incentive payment accounted for EUR 659
thousand (previous year: EUR 1,092). In 2010, the company
promised the Board members Jörg Deisel, Jörg Artmann
and Michael Paterka a bonus following the successful capital
increase in 2011 ("RE-IPO Bonus") which is payable in three
instalments in March 2011, January 2012 and January 2013.
<strong>The</strong> variable element comprises the payments made in 2011,
the RE-IPO Bonus for 2011 and reversal of the bonus provisions
for 2010.
Of the total expensed in 2011, Mr. Deisel received EUR 347
thousand (previous year: EUR 1,186 thousand), of which EUR
156 thousand (previous year: EUR 438 thousand) comprised
fixed remuneration elements and EUR 191 thousand (previous
year: EUR 748 thousand) comprised variable remuneration
elements (thereof EUR 391 thousand RE-IPO Bonus and EUR
-200 thousand for 2010 from reversal of the bonus provision).
Mr. Artmann received EUR 659 thousand (previous year: EUR
493 thousand), of which EUR 276 thousand (previous year:
EUR 280 thousand) comprised fixed remuneration elements
and EUR 383 thousand (previous year: EUR 213 thousand)
comprised variable remuneration elements (thereof EUR 391
thousand RE-IPO Bonus, EUR 42 thousand bonus for 2011
and EUR -50 thousand for 2010 from reversal of the bonus
provision). Mr. Paterka received EUR 150 thousand (previous
year: EUR 392 thousand), of which EUR 86 thousand (previous
year: EUR 261 thousand) comprised fixed remuneration
elements and EUR 64 thousand (previous year: EUR 131 thousand)
comprised variable remuneration elements (thereof EUR
131 thousand RE-IPO Bonus and EUR -67 thousand for 2010
from reversal of the bonus provision) in 2011.
In addition, fixed remuneration in the amount of EUR 309
thousand was paid to Mr. Müller, EUR 157 thousand to Mr.
Fughe, EUR 115 thousand to Ms. Demirtas and EUR 64
thousand to Mr. Duffner. Except in the case of Mr. Duffner
(EUR 21 thousand), variable remuneration elements were not
paid to Ms. Demirtas, Mr. Müller and Mr. Fughe in 2011.
ConsoLidatEd FinanCiaL statEmEnts | supERvisoRy BoaRd and BoaRd oF manaGEmEnt
substantial commitments to a member of the Board
of Management following premature termination of his
service
A termination payment was agreed for 2011 with the Board
member Mr. Michael Paterka in the event of premature termination
of his service contract. <strong>The</strong> service contract concluded
with Mr. Paterka was terminated prematurely as per 30 April
2011 and a termination payment in the amount of EUR 454
thousand remitted in lieu of all the remuneration payable had
the contract remained in force.
A liability in the amount of EUR 112 thousand altogether has
been expensed for Mr. Artmann for the salary outstanding
from January to May 2012.
Due to the ongoing lawsuit with Mr. Deisel in conjunction
with his dismissal, a provision in the amount of EUR 1,600
thousand as at the balance sheet date has been formed
in accordance with the settlement proposed by Düsseldorf
Regional Court to cover all expected claims (outstanding salary,
bonus, termination payment, etc.) (see N. "Events after
the closing date").
remuneration of former members of the Board
of Management of alNo aG and their surviving
dependants
Emoluments paid to former members of the Board of Management
of ALNO AG and their surviving dependants totalled
EUR 527 thousand in the financial year 2011 (previous year:
EUR 447 thousand). Provisions for pension commitments
for former members of the Board of Management and their
surviving dependants totalled EUR 7,858 thousand in 2011
(previous year: EUR 7,515 thousand).
Provision for retirement benefits
A defined-contribution retirement benefit arrangement
including benefits for surviving dependants was agreed for
Mr. Deisel in October 2010 for the duration of his service to
the company, with benefits becoming due on reaching the
age limit of 60 years or on occurrence of disability or death.
Prorated contributions totalling EUR 300 thousand (previous
year: EUR 100 thousand) were paid into this scheme for the
financial year 2011 up to 30 September 2011. Disposal of the
account prior to occurrence of an event triggering benefits
is excluded as a matter of principle. <strong>The</strong>re <strong>are</strong> no further
pension commitments or similar retirement benefit obligations
for active members of the Board of Management in 2011.
117

118
ConsoLidatEd FinanCiaL statEmEnts | CompaniEs utiLizinG thE ExEmption puRsuant to sECtions 264 (3) and 264 B oF thE GERman CommERCiaL CodE (hGB)
K. Companies utilizing the exemption
pursuant to sections 264
(3) and 264 b of the German
Commercial Code (hGB)
<strong>The</strong> subsidiaries Impuls Küchen GmbH, Brilon, Pino
Küchen GmbH, Coswig (Anhalt), Zweitmarkenholding
Impuls Pino GmbH, Pfullendorf, ALNO International GmbH,
Pfullendorf, Gustav Wellmann GmbH & Co. KG, Enger,
and the property management company tielsa Küchen
GmbH & Co. KG, Enger, have made use of the reliefs
pursuant to Section 264 (3) and Section 264 b of the German
Commercial Code (HGB). <strong>The</strong> consolidated financial
statements and Group management report <strong>are</strong> published
in the electronic Federal Gazette.
L. sh<strong>are</strong>holdings
Name and head office
SHARES HELD IN SUBSIDIARIES
ALNO Germany
Sh<strong>are</strong> of
capital in %
Impuls Küchen GmbH, Brilon 100
Pino Küchen GmbH, Coswig (Anhalt) 100
Zweitmarkenholding Impuls Pino GmbH, Pfullendorf 100
Gustav Wellmann GmbH & Co. KG, Enger 100
Casawell Service GmbH, Enger 100
ALNO Trading GmbH, Enger 1 100
Grundstücksverwaltungsgesellschaft
tielsa Küchen GmbH & Co. KG, Enger 100
Wellmann Bauteile GmbH, Enger 100
ALNO International GmbH, Pfullendorf 100
ALNO abroad
ALNO (Switzerland) AG, Embrach/Switzerland 100
ALNO France S.à.r.l., Cagnes-sur-Mèr/France 100
ALNO U.K. Ltd, Dewsbury/United Kingdom 100
SHARES HELD IN JOINT VENTURES:
ALNO Middle East FZCO, Dubai/UAE 50
SPECIAL PURPOSE ENTITIES:
MINERVA Grundstücks-Vermietungsgesellschaft
mbH & Co. Objekt Pfullendorf OHG, Grünwald 100
Tignaris Beteiligungsgesellschaft mbH & Co.
Objekt Pfullendorf KG, Grünwald 100
1 Since 22 November 2011; formerly EuroSet Küchentechnik GmbH, Enger
M. auditors' fees
<strong>The</strong> following fees were expensed for the auditors of the
consolidated financial statements:
in '000 EUR 2011 2010
Audit of financial statements 338 391
Other consulting services 97 463
Tax consulting services 79 133
Other services 4 4
Total 518 991
<strong>The</strong> item Audit encompasses fees for the statutory final
audit of the separate and consolidated financial statements
of ALNO AG as at 31 December 2011, as well as
for checking the report on controlled companies in accordance
with Section 313 of the Stock Companies Act (AktG)
for the financial year 2011.
Other consulting services essentially comprise expenses
associated with preparing a Comfort Letter in conjunction
with the capital increase originally planned for autumn
2010 and then postponed until 2011.
Tax consulting costs comprise the fees charged for ongoing
tax consulting activities.
Other services relate to consulting services associated with
accounting.

N. Events after the closing date
WaIver of rePaYMeNT
In early January 2012, Küchen Holding GmbH, Munich,
took over the syndicate banks' loans receivable from the
ALNO Group (change of creditor from the vantage of ALNO
AG) in the amount of EUR 25 million. Küchen Holding
GmbH subsequently waived repayment of the assumed
receivables effective 6 January 2012. This relieves short-
term financial liabilities in the amount of EUR 25 million
without effect on net income, as Küchen Holding GmbH
has acted in its capacity as sh<strong>are</strong>holder.
TerMINaTIoN of <strong>The</strong> voTING aGreeMeNT
<strong>The</strong> voting agreement between IRE Beteiligungs GmbH,
Stuttgart, and Küchen Holding GmbH, Munich, both of
which <strong>are</strong> major sh<strong>are</strong>holders in ALNO AG, was terminated
on 30 January 2012. Küchen Holding GmbH is therefore
formally no longer majority sh<strong>are</strong>holder of ALNO AG. IRE
Beteiligungs GmbH, Stuttgart, belongs to the Whirlpool
Group <strong>based</strong> in Michigan, USA, through Bauknecht
Hausgeräte GmbH, Stuttgart. In recent years, Küchen
Holding GmbH and Bauknecht/Whirlpool have formed a
community of investors within the sh<strong>are</strong>holder structure
of ALNO AG. Through the voting agreement, the voting
rights of Bauknecht/Whirlpool in ALNO AG were assigned
to Küchen Holding. This made Küchen Holding GmbH
the majority sh<strong>are</strong>holder in ALNO AG. Now, following the
reallocation of voting rights, there is no longer a majority
sh<strong>are</strong>holder in ALNO AG. Bauknecht/Whirlpool intend to
exercise their voting rights directly in future. Both Bauknecht/Whirlpool
and Küchen Holding GmbH continue to see
their involvement in ALNO AG as a long-term investment.
audIeNCe aWard for <strong>The</strong> CeraMIC KITCheN
alNosTar Cera
ALNO's new ceramic product line won the distinction
"Excellent Product" in the consumer competition "Kitchen
Innovation of the Year 2012" by the LifeC<strong>are</strong> initiative,
as well as the "Golden Award – Best of the Best" in the
category "Kitchen furniture and equipment". <strong>The</strong> award
conferred by the independent LifeC<strong>are</strong> initiative is a mark
of quality for products meeting consumer needs to a particularly
high degree and was given to the ALNOSTAR
CERA kitchen for its functionality, product benefits, innovation,
design and sustainability. <strong>The</strong> award is internationally
recognized and appreciated as a mark of quality on
account of its consumer orientation.
ConsoLidatEd FinanCiaL statEmEnts | EvEnts aFtER thE CLosinG datE
ChaNGes IN <strong>The</strong> Board of MaNaGeMeNT
Sales Director Christoph Fughe retired from the Board of
Management of ALNO AG by mutual consent on 29 February
2012; this was decided by the Supervisory Board at its
meeting on 17 February 2012. Christoph Fughe became a
member of the Board of Management in April 2011 and was
finally responsible for "Sales Germany" and "Sales Austria".
After retiring from the Board of Management, Christoph
Fughe continued to serve the company in an advisory
capacity and for special tasks until 31 May 2012. <strong>The</strong> Board
of Management of ALNO AG now once again comprises
three members. <strong>The</strong> duties have also been reallocated.
In addition to his previous tasks (including corporate development,
auditing, law and quality management), Max Müller
is now also tasked with "purchasing" and "logistics" which
formerly belonged to the <strong>are</strong>a for which Elmar Duffner
is responsible. <strong>The</strong> <strong>are</strong>as formerly tasked to Christoph
Fughe, namely "Sales Germany" and "Sales Austria", have
been assigned to Elmar Duffner, whose responsibilities
include production, exports, product development and
marketing / PR).
fouNdaTIoN of a NeW suBsIdIarY IN <strong>The</strong> usa
A new subsidiary was set up in 2012 with the name ALNO
USA Corporation <strong>based</strong> in New York. Lothar Birkenfeld, a
kitchen manager with considerable experience of the US
market, was appointed managing director.
aCquIsITIoN of aN alNo PreMIuM dealer IN <strong>The</strong> uNITed
KINGdoM
ALNO UK Ltd., Dewsbury, United Kingdom, acquired the
ALNO premium dealer Built-In Kitchens Ltd., Sevenoaks,
United Kingdom, in April 2012 in conjunction with the
expansion of its export business.
rulING IN <strong>The</strong> laWsuIT aGaINsT JörG deIsel
<strong>The</strong> 2nd court division handling commercial matters
at Düsseldorf Regional Court issued a judgement in
the lawsuit between ALNO AG and its former Chief
Executive Officer Jörg Deisel on 10 May 2012. This judgement
confirms the legal opinion upheld by ALNO AG,
according to which the premature renewal of his management
contract until 2015 is invalid. In a provisional
judgement in summary procedure, Düsseldorf Regional
Court therefore merely awarded the plaintiff payment of
outstanding salaries and bonuses in the amount of around
EUR 400,000 for the period between his dismissal without
notice in April 2011 and expiry of the contract in force at
that time (i.e. 30 September 2011).
However, this judgement is still subject to appeal.
119

120
ConsoLidatEd FinanCiaL statEmEnts | EvEnts aFtER thE CLosinG datE
IMPleMeNTaTIoN of a loNG-TerM CaPITalIZaTIoN aNd
fINaNCIal CoNCePT
Since late 2011, the Board of Management has been work-
ing on the implementation of a long-term capitalization and
financial concept. <strong>The</strong> main pillars of this concept <strong>are</strong> the
conclusion of a further restructuring agreement by mid-July
2012 at the latest and a capital increase in autumn 2012.
This restructuring agreement III will provide for further con-
tributions by the main sh<strong>are</strong>holders Küchen Holding GmbH,
Munich, and IRE Beteiligungs GmbH, Stuttgart, as well
as by the main banks financing the ALNO Group and the
supplier Bauknecht Hausgeräte GmbH, Stuttgart. Among
other things, the contributions by Bauknecht Hausgeräte
GmbH, Stuttgart, also include an extension of payment
deadlines to ensure that the liquidity of the ALNO Group
remains assured until the restructuring agreement III and
capital increase have been implemented in autumn 2012.
Conclusion of the restructuring agreement III will significantly
improve Group equity and permit full repayment of
the main banks. Repayment of the banks' financing with
the aid of old and new investors is an essential prerequisite
for the scheduled capital increase, which will be part of the
restructuring agreement III.
Existing bank loans payable by the ALNO Group will be
taken over and repaid by old and new investors in the first
stage of the restructuring agreement III. This stage will in
part be financed through a bond issue by ALNO AG. In
this way, the existing accounts payable to banks will be
reduced to less than 10%.
<strong>The</strong> second stage involves increasing the sh<strong>are</strong> capital of
ALNO AG and must be decided by the Annual General
Meeting in August 2012. This capital increase is to be
effected through both cash and non-cash contributions.
<strong>The</strong> non-cash contribution will take the form of a "debt-toequity
swap" in which the loan receivables taken over by
old and new investors <strong>are</strong> paid in, insofar as they <strong>are</strong> not
financed through the aforementioned bond. Since the collateral
provided to date will be released through repayment
of the existing sums payable to banks, it can be used to
take out new loans in the future, insofar as it is not needed
for issuing the bond.
<strong>The</strong> Board of Management is already conducting specific
financial talks with banks which have not provided funding
to date. <strong>The</strong> liquidity provided by these new bank loans
will be used to finance the ALNO Group's planned growth,
especially in other countries. A funding commitment by
these new banks is scheduled to coincide with the conclusion
of restructuring agreement III.
<strong>The</strong> Group's factoring volume is to be further increased
by another EUR 15 million through the sale of accounts
receivable by ALNO AG.
In addition, the Board of Management is holding out the
option of applying for a guarantee furnished by the Land
government of Baden-Württemberg following the conclusion
of restructuring agreement III which would open up
further potential for financing.
In mid-May 2012, ALNO AG's Board of Management
obtained written, non-binding declarations of intent from
the main sh<strong>are</strong>holders, the main supplier Bauknecht Hausgeräte
GmbH and both old and new investors confirming
their support for the long-term capitalization and financing
concept outlined above. <strong>The</strong>se declarations of intent <strong>are</strong>
to be transformed into a binding restructuring agreement III
by mid-July 2012, together with the planned restructuring
contributions of the main syndicate banks.
uPdaTe of <strong>The</strong> orIGINal reorGaNIZaTIoN assessMeNT
of 24 JuNe 2010 BY PrICeWaTerhouseCooPers
PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft
("PwC") was retained in early 2010 to prep<strong>are</strong> a reorganization
assessment for the ALNO Group in accordance
with statement IDW S6 of the German Institute of Auditors.
In their assessment of 24 June 2010, PwC confirmed the
ALNO Group's prognosis as a going concern as long as
financing is assured in accordance with the restructuring
agreement I of 23 April 2010 and as long as the required
measures <strong>are</strong> implemented within the framework of the
corporate planning.
In spring 2011, PwC was requested to update their reorganization
assessment for the ALNO Group. In the updated
reorganization assessment of 13 May 2011, PwC found
that the ALNO Group is fully financed so far as could be
established at that time and subject to certain conditions,
and that there were no changes as regards the statements
made in the reorganization assessment of 24 June
2010. However, PwC did point out that the ALNO Group's
restructuring would take longer than had been planned in
the previous year.
In November 2011, PwC was mandated to undertake an
update of their reorganization assessment for the ALNO

Group. Since the operational and financial reorganization
concept was still in the planning stage, PwC was unable
to make any statement in their draft of 9 March 2012 as to
the ALNO Group's ability to be restructured and continued
as a going concern.
On the basis of this mandate, PwC was therefore requested
in late April 2012 to follow up on an existing analysis of
the short-term liquidity planning until mid-July 2012 and
verify the plausibility of the Group's liquidity planning up
to mid-2013.
In their "Plausibility verification of liquidity planning up to
mid-2013" dated 29 May 2012, PwC has taken account of
the risks identified when verifying the plausibility of corporate
planning in their conservative "Adjustment Case" which
also includes measures from the planned capitalization and
financial concept (refer to the section on implementation of
the long-term capitalization and financial concept).
In their statement on liquidity planning up to mid-2013,
PwC drew attention to the following points:
• <strong>The</strong> management's short-term liquidity planning shows
that the current agreements reached with suppliers on
deferral of payments and the stand-still agreement con-
cluded with the banks and a another financial partner
have assured the ALNO Group's liquidity until 20 July
2012.
• Very different stages have been reached as regards
implementation and negotiation of the various measures
contained in the capitalization and financial concept. This
consequently makes it impossible to assess the feasibility
of all the measures in the concept. However, PwC does
not consider the measures to be obviously infeasible.
• On the basis of the so-called "Adjustment Case", closing
all plants for the summer break between mid-July and
mid-August 2012 indicates that the Group's liquidity is
not assured and payments may be halted during this
period unless other internal and/or external measures <strong>are</strong>
taken. <strong>The</strong> management of ALNO AG is therefore already
conducting initial negotiations with a major supplier in
order to improve the company's liquidity.
ConsoLidatEd FinanCiaL statEmEnts | EvEnts aFtER thE CLosinG datE
• Subject to the assumptions made and provided that a
liquidity buffer of at least EUR 5.0 million is permanently
maintained, the company's liquidity is assured for the
period thereafter, i.e. from September 2012 to the end
of June 2013.
In addition, PwC also drew attention to the following essen-
tial assumptions and risks in the liquidity planning up to
June 2013:
• <strong>The</strong> financial concept must be implemented without fail
despite the risks associated with the feasibility of indi-
vidual measures. At the time of making the statement,
investors have only issued declarations of intent which
have still to be checked in legal and financial terms. All
other measures <strong>are</strong> under negotiation or in planning.
• <strong>The</strong> possibility that the measures will not be implemented
in <strong>good</strong> time to assure the ALNO Group's further liquid-
ity constitutes a risk. <strong>The</strong> most important and majority
of measures must therefore be implemented without fail
before the agreements on deferral of payments and the
stand-still agreement expire on 20 July 2012, as considerably
higher liquidity will be required as from the end
of July 2012 due to the plants' summer break and this
higher liquidity cannot be covered without the planned
inflows from the financial concept.
• Some of the planned but hitherto postponed investments
will have to be made in the second half of 2012.
• <strong>The</strong> relationship or situation prevailing with domestic
credit insurers and suppliers is strained. <strong>The</strong> liquidity
planning is <strong>based</strong> on the assumption that both will not
introduce terms of payment which <strong>are</strong> less advantageous
for the company than those at present or planned.
<strong>The</strong> Board of Management of ALNO AG has in the meantime
taken further steps to specify and implement the
capitalization and financial concept in more detail. Among
other things, these include negotiations with the financing
banks over repayment of the existing loans and credit lines,
as well as negotiations with new financial partners to obtain
fresh funds. <strong>The</strong> negotiations with sh<strong>are</strong>holders from whom
major restructuring contributions <strong>are</strong> expected under the
capitalization and financial concept have for the most part
been concluded.
121

122 ConsoLidatEd FinanCiaL statEmEnts | EaRninGs pER shaRE
<strong>The</strong> continuation of business activities by ALNO AG and
the ALNO Group depends on timely implementation of the
aforementioned measures in the capitalization and financial
concept as planned, and on whether or not the conditions
and assumptions made in the corporate planning <strong>are</strong> met
or apply as planned. <strong>The</strong> Board of Management of ALNO
AG presumes that the aforementioned measures in the
capitalization and financial concept will be implemented on
schedule as planned, and that the conditions and assumptions
made in the corporate planning will be met or apply
as planned.
O. declaration of compliance
pursuant to section 161 of
the stock Companies act
(aktG)
<strong>The</strong> declaration of compliance with the recommendations
of the "Government Commission on the German Corporate
Governance Code" and Section 161 of the Stock Companies
Act (AktG) was reviewed and re-issued by the Board
of Management and Supervisory Board on 30 September
2011. <strong>The</strong> declaration is permanently accessible to sh<strong>are</strong>holders
on the company's website and reprinted in the
Group management report 2011.
In accordance with Section 3.10 of the German Corporate
Governance Code, the Board of Management and Supervisory
Board of ALNO AG report on the ALNO Group's
corporate governance in the Annual Report for the financial
year ending 31 December 2011. Information on the basic
principles of the system of remuneration for the Board
of Management can be found in Section K. "Supervisory
Board and Board of Management".
P. Earnings per sh<strong>are</strong>
<strong>The</strong> earnings per sh<strong>are</strong> <strong>are</strong> obtained by dividing the net
consolidated income accruing to the sh<strong>are</strong>holders by a
weighted number of issued sh<strong>are</strong>s. <strong>The</strong>re was no diluting
effect due to so-called potential sh<strong>are</strong>s in either the year
under review or the previous year.
in '000 EUR 2011 2010
Consolidated loss – 25,561 – 13,084
Third-party sh<strong>are</strong>s 0 0
Number of sh<strong>are</strong>s in thousands
(weighted average) 24,617 16,877
Earnings per sh<strong>are</strong> in EUR – 1.04 – 0.78
Pfullendorf, 11 June 2012
ALNO Aktiengesellschaft
Board of Management
Max Müller
Chief Executive Officer of ALNO AG
IPeK deMIrTas
Chief Financial Officer
elMar duffNer
Chief Operations Officer

auditor's report
We have audited the consolidated financial statements
prep<strong>are</strong>d by ALNO Aktiengesellschaft, Pfullendorf, which
comprise the income statement, statement of comprehensive
income, balance sheet, cash flow statement,
statement of changes in equity and the notes to the
consolidated financial statements, as well as the Group
management report which has been combined with the
management report of the company, for the financial year
from 1 January to 31 December 2011. <strong>The</strong> company's
statutory representatives <strong>are</strong> responsible for preparing the
consolidated financial statements and Group management
report in accordance with International Financial
Reporting Standards, as adopted by the EU, and the
additional requirements of German commercial law pursuant
to Section 315a (1) of the German Commercial
Code (HGB). Our responsibility is to express an opinion
on these consolidated financial statements <strong>based</strong> on our
audit.
We conducted our audit in accordance with Section 317 of
the German Commercial Code (HGB) and German generally
accepted standards for auditing financial statements
promulgated by the Institut der Wirtschaftsprüfer (Institute
of Public Auditors in Germany) (IDW.) We <strong>are</strong> therefore
required to plan and perform the audit in such a way that
errors and violations significantly affecting presentation of
the company's net assets, financial position and results
of operations as conveyed by the consolidated financial
statements in compliance with the applicable accounting
standards and by the Group management report can be
detected with reasonable assurance. Knowledge of the
Group's business activities, its economic and legal environment
and expectations in respect of possible misstatements
have been taken into account when defining the
audit procedures. <strong>The</strong> effectiveness of the internal control
system relevant for accounting and evidence supporting
the disclosures in the consolidated financial statements
and Group management report is primarily assessed on
the basis of spot checks during the audit. <strong>The</strong> audit also
includes evaluating the annual financial statements of the
companies included in the consolidated financial statements,
the defined scope of consolidation, the recognition
and consolidation principles applied and the main accounting
estimates made by the Group's statutory representatives,
as well as evaluating the overall presentation of the
consolidated financial statements and Group management
report. We <strong>are</strong> of the opinion that our audit provides a
sufficiently sound basis for our evaluation.
ConsoLidatEd FinanCiaL statEmEnts | auditoR's REpoRt
Our audit has not led to any reservations.
In our opinion, <strong>based</strong> on the findings of our audit, the consolidated
financial statements comply with the International
Financial Reporting Standards as adopted by the EU, and
the additional requirements of German commercial law
pursuant to Section 315a (1) of the German Commercial
Code (HGB) and give a true and fair view of the Group's
net assets, financial position and results of operations.
<strong>The</strong> Group management report is consistent with the
consolidated financial statements, as a whole provides a
suitable view of the Group’s position and suitably presents
the opportunities and risks of future development.
Without restricting this assessment, we must point out that
– in contrast to the single-entity financial statement – the
consolidated balance sheet of ALNO Aktiengesellschaft
reports negative equity in the amount of EUR 73,344 thousand
as a result of accumulated losses. Attention is also
drawn to the information in the Group management report,
which has been combined with the separate management
report for the company. This report states, in sections "b.
Events after the reporting period" and "c. I. Opportunity
and risk report", that the ALNO Group's continuation as
a going concern depends on the measures outlined in
the Group management report in conjunction with its
capitalization and financial concept be implemented on
schedule as planned and that the conditions and assumptions
underlying the corporate planning be met or apply
as planned. In particular, a further restructuring agreement
must be concluded by 20 July 2012 and major parts
thereof must be implemented so that the liquidity gaps
otherwise existing in the company's current corporate and
liquidity planning can be met from 21 July 2012 onwards.
Ravensburg, 11 June 2012
Ernst & Young GmbH
Auditors
Nover Prüsse
Auditor Auditor
123

124 dECLaRation By thE statutoRy REpREsEntativEs oF aLno aG | LEGaL notE
declaration by the statutory
representatives of aLno aG
IN CoMPlIaNCe WITh seCTIoN 297 (2), fourTh
seNTeNCe, of <strong>The</strong> GerMaN CoMMerCIal Code
(hGB), CoNCerNING <strong>The</strong> CoNsolIdaTed fINaNCIal
sTaTeMeNTs aNd sINGle-eNTITY aNd GrouP
MaNaGeMeNT rePorT for <strong>The</strong> fINaNCIal Year 2011:
"We confirm that, to the best of our knowledge and on
the basis of the accounting standards to be applied,
the consolidated financial statements convey a true and
fair picture of the Group's net assets, financial position
and results of operations, and that the Group management
report presents the development of business and
the Group's position in such as way as to convey a true
and fair picture of actual conditions, and that it sets out
the essential opportunities and risks associated with the
Group's probable development."
Pfullendorf, 11 June 2012
ALNO Aktiengesellschaft
Board of Management
Max Müller
Chief Executive Officer of ALNO AG
IPeK deMIrTas
Chief Financial Officer
elMar duffNer
Chief Operations Officer
Legal note
This Annual Report contains forward-looking statements.
Forward-looking statements <strong>are</strong> not <strong>based</strong> on historical
events and facts. <strong>The</strong>se statements <strong>are</strong> <strong>based</strong> on assump-
tions, forecasts and estimates of future developments by
the Board of Management. <strong>The</strong> assumptions, forecasts
and estimates concerned <strong>are</strong> <strong>based</strong> on all the information
currently available. However, the actual results may devi-
ate from those presently expected if the assumed future
developments underlying the statements and estimates do
not materialize. Neither the Board of Management nor the
company can warrant that the forward-looking statements
will actually materialize. Both the Board of Management and
the company <strong>are</strong> under no obligation, above and beyond
their statutory obligations, to update any statements or to
bring them into line with future events and developments.
Neither in the Federal Republic of Germany nor in any
other country does this Annual Report and the information
contained in it constitute either an offer to sell or a
request to buy or subscribe to securities held or issued
by ALNO AG. In the United States of America, sh<strong>are</strong>s in
ALNO AG may only be sold or offered after prior registration
or, without such prior registration, on the basis of
an exception to the registration requirement pursuant to
the provisions of the US Securities Act of 1933 as most
recently amended. ALNO AG does not intend to realize a
public offering of sh<strong>are</strong>s in the United States. <strong>The</strong> Annual
Report of ALNO AG is published in German and English.
In the event of discrepancies between the two versions,
the German version shall prevail.

Publication data financial calendar 2012
PUBLISHER
ALNO Aktiengesellschaft
88630 Pfullendorf
Tel.: +49 7552 21-0
Fax: +49 7552 21-3789
Email mail@alno.de
www.alno.de
LayoUt and tExt
Corporate Communications
and Investor Relations ALNO AG
Tel.: +49 7552 21-3316
Fax +49 7552 21-773316
Email thomas.oberle@alno.de
InvEStoR RELatIonS
cometis AG
65195 Wiesbaden
Henryk Deter
Tel.: +49 611 20 58 55-13
Fax: +49 611 20 58 55-66
Email deter@cometis.de
dESIGn
Scheufele Hesse Eigler
Kommunikationsagentur GmbH
60487 Frankfurt am main
www.scheufele-online.de
18 May 2012
Interim report on the 1st quarter 2012
14 JUnE 2012
Publication of the annual financial statements
2011
21 aUGUSt 2012
Annual General meeting
PublicATion dATA | finAnciAl cAlendAr 2012
31 aUGUSt 2012
mid-year financial report 2012
16 novEMBER 2012
Interim report on the 3rd quarter 2012

ALNO Aktiengesellschaft
88630 Pfullendorf
Tel.: +49 7552 21-0
Fax: +49 7552 21-3789
Email mail@alno.de
www.alno.de