Annual Report 2005

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$HP Latex Printing Technologies - Neschen$

50 Notes relating to the consolidated annual accounts A. General information on the company The parent company is Neschen AG of Bückeburg/Germany which is entered in the Stadthagen Companies Register in section B under number 2057. The share capital as of the balance sheet closing date is 8,750,000.00 Euros and is divided into 8,750,000 no-par-value shares. NESCHEN AG shares are quoted on the official stock market (Frankfurt, Hanover), on the open market (Berlin, Düsseldorf, Hamburg, Stuttgart) and in the electronic stock exchange trading system (Xetra). The Neschen Group has led the market for decades in the business units “Documents” and “Graphics”. The focus on core competences and specific sales markets in niche areas is a key component of the corporate strategy of today and in the future. The production process for the manufacture of self-adhesive products in both business units is accomplished by utilising compatible coating technologies and similar product structures on the same machines. Marketing of the products from both business units is carried out within the framework of direct distribution via the Neschen subsidiaries in Europe but also utilises independent distribution channels such as specialist traders and OEM partners. Neschen offers a complete product range of self-adhesive products and accessory products for both business units. All of the common adhesive systems - adhesives based on aqueous dispersions, solvent and hot melt adhesives - are in use. The coating machinery has been set up for new applications and processes such as coating with special varnishes, for example. All of these features clearly set the company apart from its competitors. B. General information on the financial statement I. Basic information The consolidated financial statement for Neschen AG for 2005 was drawn up in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) for the first time. Reporting for the 2005 financial year has been carried out in accordance with statutory standards and interpretations to be applied. The consolidated financial statement is in line with the European Union directive on group accounting standards (directive 83/349/EEC). In order to achieve equal standards with a consolidated financial statement drawn up in accordance with the German Commercial Code (HGB), all the necessary details and explanatory notes required in accordance with the HGB which go beyond the stipulations of the IASB have been provided. For the sake of improving clarity and meaningfulness, individual items have been consolidated in the profit and loss account and the balance sheet. These items are shown separately and explained in the Notes. The profit and loss account has been drawn up in accordance with the total cost procedure. Unless specific reference is made to deviations, all amounts are specified in millions of Euros (?k). The consolidated financial statement is based on the historic acquisition cost principle and has been drawn up in accordance with the consolidation, accounting and valuation methods described below. The financial year of Neschen AG and the subsidiaries included in the consolidated financial statement corresponds to the calendar year. II. Information on the application of IFRS for the first time The change-over in accounting procedures has been carried out in accordance with the rules stipulated in IFRS 1 “Applying International Financial Reporting Standards for the first time”. The figures for the previous year were determined in accordance with the same principles. The accounting, valuation and consolidation methods previously used to draw up consolidated financial statements for Neschen AG in accordance with German commercial law were changed in some cases as a result of IFRS being applied for the first time. International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) have been used retrospectively for the first time in accordance with IFRS 1. Consequently, the adjustments which need to be made to the accounting and valuation methods to enable IAS/IFRS to be used for the first time are to be made retrospectively as if IAS/IFRS had always been used for accounting purposes. The information required in order to carry out the change-over from the German Commercial Code to IFRS is contained in the reconciliation statement. The adjustment to the accounting and valuation methods in line with IFRS rules as of 1 January 2004 was carried out in accordance with IFRS 1 with no effect on the result to the credit or debit of the retained income. The effects which the change-over from the previous accounting procedure in accordance with the German Commercial Code to accounting in accordance with IFRS had on the asset, financial and income position are shown in the reconciliation statement.
Notes relating to the consolidated annual accounts Reconciliation of the balance sheet as of 01.01.2004 (IFRS opening balance sheet) German Commercial Code Reconciliation IFRS 01.01.2004 01.01.2004 01.01.2004 ASSETS in €k in €k in €k Start-up expenses 818 - 818 0 Intangible assets 14,140 1,385 15,525 Plant, property and equipment 43,716 2,590 46,306 Financial assets 3,723 - 1,095 2,628 Inventories 22,831 - 1,240 21,591 Receivables and other assets 24,688 1,078 25,766 Liquid assets 704 0 704 Prepaid expenses 1,748 - 1,748 0 Deferred taxes 544 - 73 471 112,912 79 112,991 LIABILITIES Shareholders’ equity capital 14,574 - 1,474 13,100 Provisions 3,139 - 61 3,078 Provisions for deferred taxes 140 - 47 93 Liabilities due to banks 76,220 0 76,220 Other liabilities 18,753 1,747 20,500 Deferred credits to income 86 - 86 0 112,912 79 112,991 Reconciliation of the balance sheet as of 31.12.2004 German Commercial Code Reconciliation IFRS 01.01.2004 01.01.2004 01.01.2004 ASSETS in €k in €k in €k Start-up expenses 529 - 529 0 Intangible assets 12,687 2,648 15,335 Plant, property and equipment 35,538 2,766 38,304 Financial assets 3,493 - 676 2,817 Inventories 21,645 - 1,318 20,327 Receivables and other assets 21,403 727 22,130 Liquid assets 1,689 0 1,689 Prepaid expenses 1,483 - 1,483 0 Deferred taxes 1,053 - 65 988 99,520 2,070 101,590 LIABILITIES Shareholders’ equity capital 8,971 - 545 8,426 Provisions 4,242 80 4,322 Provisions for deferred taxes 287 134 421 Liabilities due to banks 69,846 64 69,910 Other liabilities 16,069 2,442 18,511 Deferred credits to income 105 - 105 0 99,520 2,070 101,590 Reconciliation of shareholders’ equity capital as of 01.01.2004 in €k Shareholders’ equity capital in accordance with the German Commercial Code as of 01.01.2004 including minority shares 14,574 Correction to start-up expenses - 818 Changes to useful life and depreciation methods for fixed assets, revaluation of machinery 6,426 Currency effects (mainly due to revaluation of fixed assets) - 3,547 Adjustment of inventory valuation - 1,240 Valuation of receivables - 182 Leasing commitments - 392 Derivatives: market evaluation of interest rate swaps - 1,250 Deferred taxes and other adjustments - 471 13,100 51
Page 1: Annual Report 2005
Page 4 and 5: 4 Financial Overview HGB IFRS IFRS
Page 6 and 7: 6 Neschen AG · Consolidated Compan
Page 8 and 9: 8 Foreword by the Spokesman for the
Page 10 and 11: 10 Foreword by the Spokesman for th
Page 12 and 13: 12 Business Units NESCHEN AG has le
Page 14 and 15: 14 Market Strategy NESCHEN AG has h
Page 16 and 17: 16 Restructuring Program the site o
Page 18 and 19: 18 Business Unit “Graphics” The
Page 20 and 21: 20 Business Unit “Graphics” The
Page 22 and 23: 22 Business Unit “Documents” Th
Page 24 and 25: 24 Business Unit “Special Product
Page 26 and 27: 26 Quality Management During the pa
Page 28 and 29: 28 Corporate Governance Code With t
Page 30 and 31: 30 Report of the Supervisory Board
Page 32 and 33: 32 Course of business and Group’s
Page 34 and 35: 34 Profit and Loss Statement During
Page 36 and 37: 36 Profit and loss statement The re
Page 38 and 39: 38 Cash Flow Cash flow as of 31/12
Page 40 and 41: 40 Personnel development As of 31.1
Page 42 and 43: 42 Forecast We plan to achieve sale
Page 44 and 45: 44 Research and Development Approxi
Page 46 and 47: 46 Outlook The past year - 2005 - h
Page 48 and 49: 48 Consolidated balance sheet Conso
Page 52 and 53: 52 Notes relating to the consolidat
Page 78 and 79: 78 Neschen AG balance sheet (in acc
Page 80 and 81: 80 Income statement of Neschen AG F
Page 82: 82 Imprint Imprint The Annual Repor

Annual Report 2005

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