Salmon is the protein provider of the future - Die Schörghuber ...

Clearly something out of the ordinary has occurred
when finally the first Annual Report is placed
on the table. In our case, 55 years of success in
four business divisions serve as the basis for this
report, which provides a clear and concise summary
of the year 2011. It is an overview of facts
and figures, an insight into developments and
innovations, a look back at the extraordinary
achievements of our employees and a look
forward towards a strong and profitable future.
constRuction & ReAl estAte beveRAges hotels seAfood

Key Figures 2011
Schörghuber Stiftung & Co. Holding KG – Group
SHKG
Group
2011
BHI KGaA
Subgroup
2011
SHKG
Group
2010
Balance sheet total in EUR ‘000 3,039,847 2,848,517
Sales revenue in EUR ‘000, of which 467,766 636,120
Construction & Real Estate division 263,127 392,858
BHI KGaA
Subgroup
2010
Beverages division 588,402 576,407
Hotels division 216,645 223,164
Seafood division 39,483 0
Operating income (EBIT) in EUR ‘000 174,974 28,567 109,495 22,052
Net profit after taxes in EUR ‘000 104,340 13,387 59,779 12,733
EBITDA in EUR ‘000 91,655 78,400 119,993 67,851
Equity ratio in % 41.4 36.6 41.8 33.9
Number of employees, of which 4,091 2,843
Construction & Real Estate division 654 622
Beverages division 2,401 2,393
Hotels division 1,995 2,103
Seafood division 1,326 0
Prior-year figures have been adjusted for comparison purposes in accordance with IFRS 5

Schörghuber
Corporate Group
Four business divisions – exceptional performance for over 55 years
Annual Report | Overview
The history of the Schörghuber Corporate Group, which spans over half a century, provides a solid foundation for the
group’s first annual report. Today, the privately-owned company, which was founded in 1954 as a property development
company in Munich, comprises four successful business divisions: Construction & Real Estate, Beverages, Hotels and
Seafood. Bayerische Hausbau, which bundles the group’s diverse real estate, property development and prefabricated
housing activities under its roof, is one of the largest full-service real estate companies in Germany and boasts an attractive
real estate portfolio valued at approximately 2.1 billion euros. The group’s beverage shareholdings are bundled in Brau
Holding International, a joint venture with Heineken. With the Paulaner Brewery Group, the Kulmbacher Group and
the Südwest Group housed under its roof, the enterprise is one of Germany’s leading brewery groups, offering a wide
range of different brands and traditional speciality beers. Arabella Hospitality provides asset management services to
the 22 hotels in Germany, Austria, Switzerland and on the Balearic island of Mallorca that the group either owns or
leases. In 2011, the salmon farming and processing activities in Chile bundled under the roof of Productos del Mar
Ventisqueros were added to the group’s portfolio of business activities as a fourth business division, Seafood.
Solid foundations for long-term success
This annual report provides you with a comprehensive summary of all the key facts and figures relating the group’s
four business divisions. They provide insight into the extraordinary achievements that characterize the work performed
by our approximately 7,000 employees on a daily basis. At the same time, they serve to underscore our competence in
areas of business which, although quite different, share common values: diversity, quality and growth. They provide
the foundation for the Schörghuber Corporate Group’s strong future.
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Contents
Corporate Information
Management Bodies Members of the Executive Board 4 – 5
4 – 7 Members of the Foundation Board 6
Foreword of the Executive Board 7
Business Divisions Construction & Real Estate 8 – 15
8 – 31 Beverages 16 – 23
Seafood Special
Hotels 24 – 27
Seafood 28 – 31

Financial Information
Group Management Report
33 – 45
Consolidated Financial
Statement
46 – 51
Notes to the Consolidated
Financial Statement
52 – 106
Annual Report | Contents
Overview of the company
and the group 33 – 34
Summary of the business year 34 – 42
Earnings, assets, and financial position 42 – 43
Events after the balance-sheet date 43
Financial instruments and
risk management 43 – 45
Forecast 45
Income statement 46
Statement of recognized income
and expenses 47
Balance sheet 48
Cash-flow statement 49
Development of equity 50 – 51
General information 52 – 69
Notes to individual items 70 – 96
Other disclosures 96 – 105
Auditors’ report 106
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Executive
Board
Dr. jur. Klaus N. Naeve
Chairman of the Executive Board
Dr. Klaus N. Naeve was born in Hamburg in 1950. After
completing vocational training in a bank, he went on to
study law in Hamburg and Erlangen. Once he had passed
his state and assessor examinations, he worked at a law
firm and tax consultancy from 1982 to 1984. In 1984, he
moved to the tax and legal department of BDO Deutsche
Warentreuhand AG, where from 1987 he served as lawyer
and tax consultant in Hamburg, Stuttgart and Munich
and finally as chief representative. In 1995, he earned
his doctorate at the University of Bielefeld. From 1995,
as CFO, Dr. Naeve held a number of different executive
management positions in the real estate and beverages
divisions of the Schörghuber Corporate Group, including
ultimately the position of CFO on the executive board of
Schörghuber Stiftung & Co. Holding KG, before moving
out on his own and setting up the tax consultancy Dr.
Naeve & Collegen at the end of 2003. In January 2009,
he returned as chairman of the executive board to the
Schörghuber Corporate Group, where he is responsible
for financial affairs and the Hotels and Seafood divisions.
Alexandra Schörghuber
Member of the Executive Board
Chairwoman of the Foundation Board
Alexandra Schörghuber was born in Frankfurt am Main
in 1958. After gaining her general qualification for university
entrance in Straubing, she did a vocational training
program as a hotel management specialist at the School
of Hotel Management in Altötting. Before marrying the
Munich businessman Stefan Schörghuber, she worked in
Germany, Switzerland and Bermuda. After her marriage,
she assumed numerous supervisory and management
positions in the family’s private business ventures, which
include Bavaria Parkgaragen GmbH as well as lift and
cable car companies in Upper Bavaria. After the sudden
death of Stefan Schörghuber, she joined the foundation
board of the Schörghuber Corporate Group as chairwomen.

Dr. Jürgen Büllesbach
Member of the Executive Board
Dr. Jürgen Büllesbach was born in Ulm in 1967. After
receiving his degree in civil engineering at the University
of the German Federal Armed Forces in Munich and
subsequently completing his doctorate, he worked for
Bayerische Hausbau GmbH from 1998 to 2004, where
the last position he held was head of technology. In 2004,
he joined the management board of ALBA BauProjekt-
Management GmbH, where he served as chairman from
March 2008. In March 2009, Dr. Büllesbach returned to
the Schörghuber Corporate Group as CEO of Bayerische
Hausbau GmbH & Co. KG and as such is also responsible
for development activities. At the same time, he represents
the Construction & Real Estate division as a member of
the executive board.
Management Bodies | Members of the Executive Board
Roland Tobias
Member of the Executive Board
Roland Tobias was born in Selb, in Upper Franconia, in
1963. After completing his degree in business administration
at the University of Applied Sciences in Kempten,
he launched his career in 1990 in the sales department
of Effem GmbH, known today as Mars Deutschland. In
1995, he moved to the brewery Beck & Co., where he held
a number of different executive positions, lastly from
2006 as business unit president at InBev, where he was
responsible for the markets in Germany, Austria and
Switzerland. In July 2007, Mr. Tobias moved to Iglo
GmbH in Germany, where he was named general manager.
He has been CEO and chairman of the management board
of Brau Holding International GmbH & Co. KGaA since
August 2009 and represents the Beverages division on
the executive board of the Schörghuber Corporate Group.
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Members of the
Foundation Board
The foundation board of Schörghuber Stiftung & Co. Holding KG is a supervisory body for the family business, and its
rights and obligations are comparable with those of the supervisory board of a joint stock corporation.
Alexandra Schörghuber Chairwoman of the Foundation Board
Member of the Executive Board of the Schörghuber Corporate Group
Dr. Jobst Kayser-Eichberg Deputy Chairman of the Foundation Board
Managing Partner / Chairman of the Supervisory Board
Sedlmayr Grund und Immobilien KGaA
Bernd Knobloch (End of term: 31 March 2012)
Lawyer
Deputy Chairman of the non-profit Hertie Foundation
Volker Kronseder (End of term: 31 December 2011)
Chairman of the Executive Board of Krones AG
Albert Niggli Chairman of the Board of Directors of Arabella Schweiz AG
Robert Salzl Former Member of the Executive Board of the holding of the
Schörghuber Corporate Group
Former chief pilot for Deutsche Lufthansa AG

Foreword
Dear Readers,
Management Bodies | Members of the Foundation Board
Foreword of the Executive Board
You are holding in your hands a first: the first annual report in the history of the Schörghuber Corporate Group. We
believe that if we are to expect our employees, customers and business partners to accept our business decisions and
their economic implications, it is vital that they understand the reasoning behind them.
How did our group of companies perform in the 2011 business year? The Construction & Real Estate division, restructured
in three clearly defined areas of business, project development, real estate, and property management, reinforced its
position as one of the leading portfolio holders and project developers in Munich. A start was made on the greatest
investment project in the history of the group, the relocation of the Paulaner brewery, together with the Beverages
division, which achieved particular success in the export market thanks to the consistent management of its strong
brands and streamlining of its sales organization. We secured the future of the Hotels division over the long term
by restructuring our long-standing partnership with Starwood Hotels & Resorts. And finally, with Seafood, we have
incorporated a new business division that we expect to enjoy sustainable and profitable growth in the years to come.
The former federal president Horst Köhler observed that in Germany it is sometimes considered morally suspect to
earn profits from business. This attitude is foolish. Anyone who has made a profit as a prudent businessperson has obviously
won over others on the basis of their performance. And only those who earn a profit can make the investments
needed to safeguard the future of their company, continue to employ their staff and create new jobs.
The Schörghuber Corporate Group has done all that to a remarkable extent in the 2011 business year. This annual report
is intended to provide you with information about the relevant decisions and developments as well as the key facts and
figures concerning the past year. We firmly believe that this kind of transparency is also appropriate for a medium-sized
company not listed on the stock exchange.
Best regards
Dr. Klaus N. Naeve Alexandra Schörghuber
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Bayerische Hausbau is one of the largest full-service real estate companies
in Germany and bundles the Schörghuber Corporate Group’s
construction and real estate activities under its roof. With a portfolio
valued at about 2.1 billion euros, it holds a leading position in its
core market Munich. The range of services it offers comprises three
areas of business: project development, real estate, and property management.
Its subsidiary Hanse Haus, a manufacturer of prefabricated
homes, neatly rounds off the company’s business activities.
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1 | New to the portfolio: HypoVereinsbank headquarters, Kardinal-Faulhaber-Straße
2 | Fully leased: THE m.pire office complex, Parkstadt Schwabing
3 | Prestigious city-center location: Joseph Pschorr Haus, Neuhauser Straße
Investments in central, city center projects
Business Division | Construction & Real Estate
2 3
Values that endure
Bayerische Hausbau continued to pursue its longstanding strategy of investing in properties situated in central, city
center locations in 2011. Particular highlights in this respect were the planning of the Joseph Pschorr Haus and the start
of construction in Munich’s well-known pedestrian zone, as well as the successful leasing of the entire property while
it was still in the planning phase. With the Joseph Pschorr Haus, which is centrally situated in Neuhauser Straße and
scheduled for completion by the autumn of 2013, Bayerische Hausbau is creating modern business premises that offer
individual retail units, upscale rental apartments and a public underground garage. Two years prior to the end of construction,
the company had successfully leased all of the commercial space to three well-known retailers, whose diversity
neatly complements each other. The tenants include Munich’s venerable sports clothing and equipment retailer Sport-
Scheck, which will be opening its new flagship store in the Joseph Pschorr Haus, the international fashion company
MANGO and the American fashion chain Forever 21, which will be launching operations in Germany.
In November, Bayerische Hausbau succeeded in acquiring one of the most prominent building complexes in the Bavarian
capital. With its purchase of the HypoVereinsbank headquarters, situated in a prime location in Munich’s Kardinal-
Faulhaber-Straße, the company pulled off the coup of the year. The bank remains the tenant of the prestigious, listed
building. The transaction included the Preysing-Palais and the Salvator parking garage. The properties will be incorporated
in Bayerische Hausbau’s valuable portfolio.
Reward for thinking “outside the box”
In 2011, Bayerische Hausbau was rewarded for its willingness to kick the market trend and think outside the box, realizing
real estate projects of a special kind – without them being leased beforehand. The signing of a lease for approximately
28,000 square meters of office space by the leading lighting manufacturer OSRAM marked the 100-percent leasing of
the office complex THE m.pire. This was one of the largest individual tenancy agreements on the German office market
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Integrated urban
environments
1 2
in 2011. OSRAM AG, a subsidiary of Siemens AG, will be moving its company headquarters into the 23-story Skyline
Tower and the separate Bailey Palace building, where 1,200 employees will work in the future. The building ensemble,
which was designed by the renowned architect Helmut Jahn from Chicago, comprises the tower and two 5-story and
two 7-story buildings offering a total of approximately 45,000 square meters of space. Bayerische Hausbau executed
the landmark project between 2008 and 2010 – a period of financial and economic crisis – in Parkstadt Schwabing in
the conviction that demand in the commercial sector would again increase and that sustainable office space in prime
locations, in particular, would be highly coveted. The company made a conscious decision against leasing the prestigious
Skyline Tower in small rental units.
Focus on integrated urban developments
In addition to creating commercial and residential projects, Bayerische Hausbau’s core competencies also include the
development of integrated urban developments. The company is, for example, currently involved in the planning of a new
urban development in the south-eastern part of Munich. The plans foresee the construction of approximately 1,000 new
apartments on a 19-hectare site in Hochäckerstraße in Munich-Perlach. The new development will comprise row houses,
condominiums, apartments offered under the Munich Model as well as publicly-funded apartments, and a variety of childcare
and shopping facilities. Generous expanses of green and large recreational areas that offer residents numerous
opportunities for leisure activities will be dotted throughout the site. This means that the development in Hochäckerstraße
will be particularly attractive to families with children. In order to create a vibrant urban development that is
well received by the general population, Bayerische Hausbau initiated an open dialog with interested citizens. In the
run-up to the planning permission phase, the company, together with the district council, ensured that the population
was actively involved in the further planning by holding an exposition and a community workshop.

New urban development on time-honored ground
Business Division | Construction & Real Estate
3 4
1 | New development on a 19-hectare site: Hochäckerstraße, Munich-Perlach
2 | Modern workplaces: model office in the WelfenHöfe, Au-Haidhausen
3 | Relaxing inner courtyard: garden in the RegerHof office complex, Au-Haidhausen
4 | Urban development instead of industry: Nockherberg development project, Au-Haidhausen
Bayerische Hausbau is creating not one but two new urban developments in the Au-Haidhausen district of Munich.
Structural work on the WelfenHöfe, comprising a total of 480 residential units, office and retail space as well as two
daycare centers, was completed last year. Almost all the residential units have already been sold and all the shopping
facilities have been leased. The fact that four different architectural firms were involved in designing the development
means that the WelfenHöfe is characterized by an interesting and diverse design vocabulary that takes its lead from
the surrounding buildings. The residential sections were winners of the “Jung, schön und noch zu haben” architectural
competition back in 2010. Bayerische Hausbau received the same award together with the Munich firm of architects
Hild und K for the commercial part of the WelfenHöfe urban development in 2011.
Bayerische Hausbau is also planning one of the last large urban developments in an outstanding city location – again
in the Au district of Munich. As from 2018, it will be building publicly funded and privately financed apartments and
commercial units on the roughly 90,000-square-meter premises of the Paulaner brewery. In November 2011, the Paulaner
brewery decided to move its production facilities to Munich-Langwied by 2016. After the move has been completed,
Bayerische Hausbau will take over the site and develop the property situated between Regerstraße, Welfenstraße and
Ohlmüllerstraße. It is not intended that a luxury development be created at this attractive location but rather a good mix
of condominiums and rented apartments for families and singles in various income brackets, complemented by small retail
units and large expanses of green. The public will again be involved early in the planning of this showpiece project by
means of a variety of measures initiated by the property developer. The site, which to date has been used for industrial
purposes and has been completely sealed, will include not only private but also public landscaped areas where people
can relax. This will provide the residents in the Au district with an attractive local recreational area offering numerous play
areas for children in the immediate vicinity of Munich’s traditional Paulaner am Nockherberg restaurant and beer garden.
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Innovative diversity
Landmark projects in Berlin and Stuttgart
Bayerische Hausbau’s exceptional development projects cannot only be found in Munich but throughout Germany. The
company is currently developing two major projects in Berlin and Stuttgart. It has been in the process of revitalizing
Bikini Berlin, a listed commercial complex situated near the city’s zoo, since the beginning of 2011 – thus sending a
clear signal that change is coming to City West. The first commercial tenant gained for Bikini Berlin was the Berlin
fashion retailer Andreas Murkudis, who will be operating a concept store in the Bikinihaus. The 25hours Hotel Company
will be opening an unconventional design hotel in the small high-rise building. A total of 149 out-of-the-ordinary hotel
rooms will be created on 7,000 square meters of space by 2013. The rooms will provide a refreshing change from traditional
hotels with their unique and individualized interior design. The rooftop bar on the tenth floor of the hotel,
which will offer a breathtaking 360-degree view of the city and the Tiergarten park, will prove a particular highlight.
Bikini Berlin is one of the most innovative retail projects currently underway in Germany. With this building ensemble,
centrally located between the Memorial Church and the Berlin’s zoo, Bayerische Hausbau is developing an attractive
meeting place where the desire for individuality, sustainability and well-being – in other words, a desire to live differently
– is being implemented with innovative concepts.
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1 | Modern open spaces at Munich’s Olympiaberg: FürstenBerg in Schwabing
2 | Impressive working environments in the capital: Bikini Berlin
3 | Contemporary architecture in Hamburg: Parkside Lokstedt residential complex
4 | Highly coveted Munich location: development project on Togal site in Alt-Bogenhausen
Business Division | Construction & Real Estate
3 4
In Stuttgart’s city center, planning for the commercial and residential complex Milaneo am Mailänder Platz has been
moving forward. Bayerische Hausbau will be building approximately 420 rented apartments in the city’s Europaviertel
district, thus making a contribution to satisfying the growing need for housing in the state capital of Baden-Württemberg.
It is also responsible for building a hotel with about 160 rooms and approximately 7,200 square meters of office space.
The project partners ECE and STRABAG are responsible for building a shopping mall in the Milaneo that will offer a
total of 43,000 square meters of retail space as well as space for bars, restaurants and other services and an underground
parking garage with roughly 1,680 parking spaces. The project partners received building permission for the
entire project at the end of 2011. The Milaneo received pre-certification in gold from the German Sustainable Building
Council (DGNB) for its high environmental standards as a pilot project for urban development certification at the real estate
trade fair EXPO REAL. The large-scale project entails an investment volume of approximately 550 million euros.
Construction is slated to begin in the spring of 2012. The shopping center is scheduled to open in the autumn of 2014,
and completion of the entire project is planned for the spring of 2015.
Demand for apartments remains high
The demand for residential properties remained high in 2011. The housing market in Munich, in particular, was highly
competitive. A study conducted by Ernst & Young was not the only proof of this fact. Despite numerous new residential
building projects, Bayerische Hausbau, too, is unable to meet the steadily growing demand in this segment. Last year
alone, it launched the development of seven projects involving a total of approximately 460 residential units in attractive
locations near the center of Munich. These include the two residential complexes FürstenBerg and Am Luitpoldpark
in the popular Schwabing district as well as a family-friendly residential complex in Freisinger Landstraße in Munich-
Freimann, the residential housing development Höltystraße in the Sendling district, a smaller development of modern
upscale condominiums in popular Nymphenburger Straße and a new residential complex on the former premises of
the Togal factory in Alt-Bogenhausen. Starting in 2013, more than 50 residential units as well as office and retail
space will be built on the former site of the Togal pharmaceutical company in one of the most highly-coveted parts of
Munich. During planning, great importance was placed on achieving a successful symbiosis between listed buildings
and modern architecture.
Bayerische Hausbau has launched sales for three other residential projects located outside of Munich. In Berlin-
Weißen see and Potsdam, two projects with a total of 105 residential units are being created in a sought-after location.
The company is also building a residential complex with 141 units in the Lokstedt district of Hamburg in a joint venture
with the northern German property development company BIG-ANLAGEN GmbH.
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Strategic
success
Hotel properties enhance the portfolio
According to the real estate services firm CB Richard Ellis, Germany was a safe haven as far as investments in hotels
was concerned and one of the most important hotel investment markets in Europe in 2011. As a long-standing company,
Bayerische Hausbau has been active in this market segment for over 45 years. Hotel properties have been an essential
part of the company’s portfolio ever since building the group’s first hotels in Munich at the end of the 1960s. When
assessing new projects, the company also gives careful consideration to whether an investment in the hotel segment
will pay off. In the case of the urban developments Bikini Berlin and Milaneo, the consensus was in favor. Bayerische
Hausbau will therefore be building the hotels involved and, once construction has been completed, it will incorporate
them into its portfolio of properties. The real estate company is also currently in the process of planning a new hotel
and commercial building in Bayerstraße, not far from Munich’s main train station. Construction of the new building,
boasting approximately 11,000 square meters of space, is expected to begin in January 2013.
Top-quality products and services
1 2
In the real estate services sector, Bayerische Hausbau Immobilien Management was able to retain its leading position,
proving that it is well able to deliver the high standard of quality its customers demand. In the summer of 2011, the
subsidiary of Bayerische Hausbau, which is active in the property and condominium management sectors, was named
Property Manager of the Year in the Residential asset class by Bell Management Consultants for the second time in
succession.
To enable it to operate even more effectively in the future as a service provider for real estate owners and tenants, the
company had TÜV SÜD certify its services. After one year of preparation, Bayerische Hausbau Immobilien Management

1 | Part of the portfolio of hotel properties: The Westin Grand Frankfurt ...
2 | ... and The Westin Grand München
3 | TÜV-certified: Bayerische Hausbau Immobilien Management
4 | Best result in the history of the company: prefabricated housing provider Hanse Haus
Business Division | Construction & Real Estate
3 4
received the official certificate in October 2011 at the real estate trade fair EXPO REAL, making it one of the few
TÜV-certified property management companies in Germany. This means that the company offers its customers an
important guarantee of quality. Despite the high level of responsibility inherent to the management of large property
portfolios, the property and condominium management sectors are not yet subject to legal regulations. The certificate
offers customers an additional measure of security and professionalism and the company the stepping-up of its ongoing
process of improvement.
Most profitable year since the introduction of the euro
Hanse Haus, a manufacturer of customized prefabricated homes, looked back on the most profitable year in the history
of the company. As a subsidiary of Bayerische Hausbau and one of the leading providers of prefabricated housing, Hanse
Hause neatly rounds off the range of services that Bayerische Hausbau offers. The company profited to a greater than
average extent from the positive development on the home construction market in Germany. In 2011, approximately
100,000 building permits were issued for single- and multi-family homes. Hanse Haus was able to increase the volume
of orders in Germany and other European countries to more than 100 million euros. Last year, the company erected more
than 300 houses, generating a record sales volume in the region of 67 million euros.
In addition to the German market, sales activities in Switzerland, Great Britain, Austria, Luxembourg, Italy and France
also contributed to the company’s success. It is in these important European markets in particular that Hanse Haus has
positioned itself as a quality provider of houses “Made in Germany” by establishing its own sales network. The foreign
market most important to the company is Switzerland, where a separate company, Hanse Haus CH GmbH, was set up
according to Swiss law. This will enable Hanse Haus to operate even more effectively in that country in the future. In
its very first year of business, the company enjoyed a healthy measure of success with the sale of more than 35 homes.
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Brau Holding International is a joint venture between the Schörghuber
Corporate Group (50.1 percent) and Heineken (49.9 percent).
With twelve breweries in Southern Germany, the group is synonymous
with a diverse beer culture, a long brewing tradition and beers
of the highest quality. It comprises the Paulaner Brewery Group
(Paulaner, Hacker-Pschorr, Thurn und Taxis, Auerbräu, Hopf), 63 percent
of the Kulmbacher Group (Kulmbacher, Mönchshof, Kapuziner,
EKU, Würzburger Hofbräu, Keiler, Scherdel, Sternquell, Braustolz, Bad
Brambacher) and the Südwest Group (Fürstlich Fürstenbergische
brewery, Hoepfner brewery, Schmucker brewery).
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Business Division | Beverages
Tradition with a future
Well equipped for the future
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1 | Strong sales: the swing-top bottle from Hacker-Pschorr
2 | Anniversary celebration: new brand identity and new “steinie” bottles for Kulmbacher
3 | Well positioned in its regional core market: the Hoepfner brand
Extreme seasonal fluctuations and a fierce price war in the retail sector, triggered by countless sales promotions carried
out by the national beer brands, characterized the German beer market in 2011. With overall beer sales at 5.3 million
hectoliters (a 0.5-percent increase compared with the previous year), Brau Holding International was able to further
strengthen its position in this difficult market environment. Beverage sales including non-alcoholic beverages increased
by 0.7 percent to 6.1 million hectoliters. The company was able to sustain the impressive dynamic growth abroad it
has enjoyed over the past few years with an increase of almost eight percent. In Germany, beer sales were one percent
lower than in the previous year. Collaboration within Brau Holding International, however, meant that the group’s
profitability improved significantly in 2011.
Higher prices for malt, hops and energy, as well as high personnel costs, have increased price pressure on German
breweries. To compensate for the steady increase in costs, the Paulaner brewery raised prices for its brands from
1 November – the first major brewery to do so. This step, which was emulated by numerous competitors, served as
impressive confirmation of Paulaner’s pioneering role in the beer market in southern Germany, helping preserve the
value of beer as a product in that part of the country.
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New paths
to success
Repositioning of shareholdings in beverage wholesalers
The beverage wholesaling industry was subject to another wave of consolidation in 2011. In this context, the Paulaner
brewery divested itself of its shareholding in one of its subsidiaries, the specialist wholesaler Hubauer Getränke &
Logistik. The shares in the company and its respective subsidiaries were sold to the beverage wholesaler Trinks Süd,
effective 1 July. This move enables the brewery to concentrate on its core business, the brewing of beer and its marketing
in Germany and abroad. The sale opens up new future prospects for the Hubauer Group as part of a strong logistics
conglomerate that is focused on wholesaling. The sale of the Hubauer Group should not, however, be equated with a
fundamental departure from the beverage wholesaling business on the part of Brau Holding International. The beverage
wholesaler Südstar, a subsidiary of the Fürstenberg brewery, is for example an integral part of the Donauseschingenheadquartered
company’s sales strategy. Südstar, which was founded in 2008 as the result of the merger of two beverage
wholesalers in the Freiburg region, improved earnings considerably in 2011, making a positive impact on the overall
result of the Fürstenberg brewery.
Paulaner makes three-digit million investment in the future
1 2
At the end of the year, the Paulaner brewery took an important step towards ensuring that the company remains competitive
in the future. With its decision to move production and logistics to Langwied on the western outskirts of Munich, the
brewery is laying the foundation needed to ensure that it will continue to add new chapters to its success story. The
brewery’s traditional site on Munich’s Nockherberg is already reaching maximum capacity. The new brewery in Munich-
Langwied is intended to help handle planned growth abroad and the increasing variety of packaging units resulting
from the trend towards small units. Paulaner is investing an amount in the triple-digit million range in the construction

Business Division | Beverages
of a state-of-the-art brewery on the outskirts of Munich. It is planned that one of Europe’s most ecologically-friendly
breweries be erected at the new site. The Paulaner brewery will retain its close ties to Munich’s Au district, where the
brewery has been located since it was founded in 1634, even after the move. Approximately 250 jobs in administration
and sales will remain located at the current site. The popular Paulaner beer garden and the restaurant at Nockherberg
will remain unchanged. This means that a successful blend of tradition and modernity will in the future continue to be
an important part of the brand’s identity.
Investments in brands
3
1 | Faring well in their home market: specialty beers from Fürstenberg
2 | Success factor for the Fürstenberg brewery: beverage wholesaler Südstar
3 | Traditional enjoyment: the popular Nockherberg beer garden remains unchanged
4 | Move to the western outskirts of Munich: Paulaner’s production facilities
Brau Holding International makes an ongoing investment in its brands with the aim of enhancing growth and consolidating
the position of its regional brands. With its “Paulaner Cup des Südens”, the Paulaner brewery has created a new
promotion centered around its sponsoring of the FC Bayern football team, thus motivating 10,000 FC Bayern and
Paulaner fans to participate. At Germany’s biggest football casting call, amateur footballers were able to make their
19
4

20
Strong presence
1 2
dream come true by qualifying for Paulaner’s team, which then played against the professionals from FC Bayern at
the finals in Burghausen in front of approximately 9,000 spectators. As a swing-top-bottle brand, Hacker-Pschorr was
able to successfully assert itself in the high-price segment, recording a significant increase in sales. To further enhance
the brand’s strength in the gastronomy sector, the brewery introduced a 0.33-liter swing-top bottle that is intended to
increase the brand’s profile at select trendy bars and restaurants.
The Kulmbacher brewery created a new brand identity for its leading Kulmbacher brand on the occasion of its 165th
anniversary. The brewery is using the introduction of new labels and a new brand campaign to place even greater
emphasis on its strong regional roots and move Kulmbacher’s brewing tradition firmly to the foreground of the new
brand positioning. The Fürstenberg brewery’s new brand identity also serves to underscore its commitment to its home
region. Under the motto “Wir im Süden” (We Here in the South), the brewery wants to initiate a dialog with the people
in Baden-Württemberg and describe the “Fürstenberg attitude to life”. The logo was revamped and new labels introduced
at the same time as the campaign was launched so that the Fürstenberg brand is perceived as fresher, more contemporary
and even more appealing.

Business Division | Beverages
The Hoepfner brewery also started revising its brand identity with a billboard campaign, first of all for its naturally
cloudy Kräusen beer. As a result, this specialty beer has already notched up impressive double-digit growth rates. The
motto of the advertising campaign, which is being introduced step by step, is “Auf unsere Art” (In Our Own Way).
In addition to conventional advertising media, interaction with consumers via social media is becoming increasingly
important to the brands housed under the roof of Brau Holding International. Brands like Paulaner, Hacker-Pschorr,
Fürstenberg and Hoepfner have already successfully established their presence on social media sites with their own
Facebook pages and activities on platforms like YouTube.
New products, new markets
3
1 | Successful promotion: Paulaner’s football casting call
2 | Appealing dialog with its target group: Fürstenberg campaign
3 | Innovative: billboard campaign for Hoepfner’s Kräusen beer
4 | Award-winning new product: Bayerisch Hell from Mönchshof
In an overall declining domestic market, Brau Holding International launched numerous initiatives to satisfy the requirements
of existing growth segments in the market as best possible. One of these areas of growth was, for example, the
area involving small packaging units. Due to the increasing number of smaller households and the demographic change,
smaller packaging units and smaller-sized bottles are becoming increasingly popular. The Kulmbacher brewery, for
example, introduced what are widely known as “steinie” bottles in a special crate for its leading brand Kulmbacher, in
addition to the traditional 0.5-liter bottles. With its short, rounded body, these 0.33-liter bottles have a nostalgic air and
allow the brewery to appeal to new consumer groups and score points in the event sector. As Germany’s market leader
in the swing-top bottle segment, Mönchshof, Kulmbacher’s specialty brand, has once again expanded its product portfolio:
Mönchshof Bayerisch Hell was launched at the beginning of the year and offers beer lovers a mild, flavorful beer
in nostalgic swing-top bottles. The new beer has not only been well received by consumers but also by beer experts. In
a trade survey conducted by the specialist magazine Getränkezeitung, Bayerisch Hell was named “Innovation of the
Year” in the category Beer.
4
21

22
Bright prospects
A growth area with particular potential remains the segment for alcohol-free beer. Paulaner Hefe-Weißbier Alkoholfrei
once again enjoyed clear double-digit growth in 2011. Supported for the first time by short TV ads, the product was
able to significantly increase its market share, moving from third place in the German market for alcohol-free wheat
beer to second place. Kapuziner Alkoholfrei, the alcohol-free wheat beer brewed by the Kulmbacher brewery, also
experienced positive growth. In this case, strategic investments in radio ads aimed at positioning the product as a lowcalorie
thirst quencher, for example, paid off handsomely. In addition, Kapuziner Alkoholfrei came out on top when the
magazine Motorrad put alcohol-free wheat beers to the test.
Export business enjoys continued growth
1
The export business is becoming increasingly important to Brau Holding International. While domestic sales are stagnant
or on the decline, the company succeeded in further increasing exports by almost eight percent. The export team had
the pleasure of setting new records in 2011. At the end of October, the Kulmbacher brewery’s exports passed the
100,000-hectoliter mark for the very first time. The brewery exports to Italy, France, the USA, Russia and China. In
China alone, the volume of sales doubled compared to the previous year. Asia was also a key growth market for Paulaner.
2

1 | Internationally recognized: Sternquell brewery’s environmental management
2 | Expanding export business: Paulaner brewhouses are popular worldwide
3 | Attractive renovation: the Schmucker brewery’s restaurant
4 | Setting a new stage for the brand: the Alter Kranen in Würzburg
Business Division | Beverages
In November, the brewery’s sales in that market exceeded 50,000 hectoliters for the first time. The year was also a
success for the Paulaner brewhouses, which, with their authentic Bavarian beer and cuisine, represent an important
platform for the brand abroad. In Guangzhou, the nineteenth Paulaner brewhouse in Asia opened its doors and plans
for more are already well under way. The group is making targeted investments in this area of business with the intention
of promoting further growth of the strategically important export business. Paulaner’s foreign organization added new
personnel and new delivery structures were created in the USA to increase the strength of the export organization. In
order to build the brand, Paulaner launched an online marketing offensive and created websites in the languages of the
key foreign markets.
Strengthening a key sales channel
The gastronomy sector is and remains an important part of Brau Holding International’s business model – not only as
a sales channel but also as a stage on which the brands can present themselves to the consumer. Therefore, year after year,
the breweries that belong to the group invest in unique gastronomy properties such as the Alter Kranen, which belongs to
Würzburger Hofbräu, and the Schmucker brewery’s own restaurant. At the same time, the breweries help the restaurateurs
hold their own in the face of fierce competition by providing them with training. In 2011, Hacker-Pschorr’s training
initiative “Successful Restaurateurs”, comprising seminars and the Hacker-Pschorr Restaurateur Forum, once again
enjoyed record attendance. Those attending were not only restaurateurs affiliated with the Hacker-Pschorr brand but
also with the Paulaner brewery’s other brands, as well brands belonging to the Hoepfner and Fürstenberg breweries.
Long-standing commitment to the environment recognized
3 4
The careful protection of natural resources is important to all the breweries housed under the roof of Brau Holding
International. In 2011, not one but two breweries received awards for their commitment to the environment. The Auerbräu
brewery in Rosenheim was honored for its long-standing commitment to the Bavarian Environmental Pact. Auerbräu
was one of the first to become part of the Environmental Pact, which was established in 1995. The Sternquell brewery
in Plauen even earned international recognition for its environmental management: It was the only medium-sized
enterprise in Germany to be nominated for an EMAS Award, presented by the European Commission in Cracow, Poland.
The nomination served as recognition of the brewery’s decades of commitment to protecting the environment. In the middle
of the year, the Sternquell brewery was awarded EMAS certificates for its quality and environmental management for
what was the fifth time.
23

24
Value-oriented
thinking
1 2
As the central holding company for the Hotels division, Arabella
Hospitality performs asset management for the 22 hotels in Germany,
Austria, Switzerland and on the Balearic island of Mallorca owned
or leased by the group. It represents the interests of the Schörghuber
Corporate Group vis-à-vis the US American joint venture partner
Starwood Hotels & Resorts. The hotels carry the renowned brand
names St. Regis, The Luxury Collection, Westin, Sheraton and Four
Points by Sheraton.

1 | Breathtaking architecture: the Westin Hamburg
2 | Spectacular: the view of Hamburg’s HafenCity
3 | Newly designed lobby: Sheraton München Arabellapark Hotel
4 | Opening in 2014: Sheraton Zürich Hotel in the trendy Zürich West district
5 | Exclusive luxury property: the St. Regis Mardavall Mallorca Resort
Restructuring of long-standing partnership
Business Division | Hotels
The partnership between the German company and the American chain of hotels and resorts was successfully restructured
in 2011. Since 1 July, Starwood Hotels & Resorts has been responsible for managing the day-to-day operation of 20
of the 22 hotels in the group, while Arabella Hospitality as owner or lessee of these hotels assumes responsibility for
asset management, concentrating on the development, maintenance and ownership of the actual hotel properties. In
this new constellation, Arabella Hospitality will continue to maintain its position as one of Starwood Hotels & Resorts’
most important partners in the regions Europe, Africa and the Middle East. The hotels have been fully integrated into
the American hotel chain’s existing regional structure. The two companies intend to continue to grow successfully in
the future with projects that they carry out together. In the next two years, for example, they plan on opening two new
hotels, the Sheraton Hotel Zürich and the Westin Hamburg.
The management structure of the Schörghuber Corporate Group’s Hotels division was streamlined in the wake of
transferring responsibility for managing the hotels to Starwood Hotels & Resorts. Arabella Hospitality Group GmbH
& Co. KG was merged into its parent company, Arabella Hospitality SE. The new structure makes decision-making
paths significantly shorter.
Focus on strategic and value-oriented growth
3
4 5
The group’s concentration on sustainable growth through its own hotel properties is a return to the core strategy of the
Hotels division, with the aim of not only safeguarding the value of the property portfolio but also increasing it by means
of appropriate measures. This strategy involves both selling properties and expanding the hotel portfolio in an appropriate
manner by building or acquiring new hotels. With this in mind, Arabella Hospitality revalued its entire portfolio of hotel
properties and in 2011 sold properties that no long satisfied its stringent requirements. It sold, for example, the former
Four Points by Sheraton Königshof in Dresden and the Sheraton Hotel Seehof in Davos. In 2009, the Schörghuber
Corporate Group decided to bring its tourism-related activities in South Africa to an end and concentrate on its core
markets in Europe. Therefore, the two 5-star hotels The Westin Cape Town and the Arabella Western Cape Hotel & Spa
were sold at the beginning of 2011.
25

26
Looking
to the future
On 12 May, the foundation stone for the new Sheraton Zürich Hotel was laid. The hotel will be located in a high-rise
building situated in the Hard Turm Park. The striking, free-standing building is currently under construction in the trendy
residential and office district Zürich West. With 197 rooms and suites, the new Sheraton-brand hotel will occupy ten floors
of the 24-story building. The hotel is scheduled to open in the spring of 2014. The Sheraton Zürich Hotel will join the
Sheraton Neues Schloss Hotel as the second hotel in Zürich flying the flag of the Sheraton brand.
1

Investments in substance and quality
Business Division | Hotels
2 3
4 1 | Michelin-starred restaurant: Es Fum at the St. Regis Mardavall Mallorca Resort
2 | Renovated: Internet lounge at the Sheraton München Arabellapark Hotel
3 | Shining with new luster: ballroom at the Westin Grand Frankfurt
4 | Extensive modernization: Arabella Alpenhotel am Spitzingsee
The substantial investments in the substance and quality of the hotels made over the past few years continued in 2011.
Approximately 10.1 million euros alone were invested in measures aimed at modernizing selected hotel properties.
The lobby of the Sheraton München Arabellapark Hotel, for example, was renovated from top to bottom. Completed
in April, the 440-square-meter lobby now extends an enticing invitation to linger. It was redesigned using top-quality
materials and incorporates tasteful color accents. It now also boasts a Link@Sheraton Internet lounge comprising six
state-of-the-art PC terminals and free Internet access for hotel guests. In May, what is now the Arabella Alpenhotel am
Spitzingsee once again opened its doors following extensive renovation of the hotel rooms and lobby area. The housing
technology was completely refurbished, the bathrooms in 82 rooms and apartments in the main building were modernized,
the lobby and bar area were revamped, and the public restrooms in the main building were fully renovated. The
conference center and ballroom at the Westin Grand Frankfurt have also been shining with new luster since September.
During eight weeks of renovations, the conference area was refurbished to give it a more contemporary look, the rooms
were renovated and state-of-the-art technology installed. The ballroom was equipped with sophisticated lighting and
elegant flooring, and the walls were redecorated.
The gourmet restaurant Es Fum at the St. Regis Mardavall Mallorca Resort, which is headed by chef de cuisine Thomas
Kahl, received an award of a very special kind. In December, it was honored with a star from the Spanish Michelin
Guide. By awarding Es Fum a star, the renowned restaurant guide acknowledged the restaurant’s superb quality, which
is characterized in particular by the creativity of its menu and its excellent and very personal service. It is now one of
the just six Michelin-starred restaurants on the Balearic Islands. The hotel as a whole is just as exquisite as the food: the
St. Regis Mardavall Mallorca Resort is a member of the prestigious St. Regis brand and is one of the 18 select hotels
worldwide that carry the name of this exclusive brand.
27

28
In July 2011, a new strategic area of business involving seafood was
added to the Schörghuber Corporate Group’s long-standing business
divisions Construction & Real Estate, Beverages and Hotels as a fourth
business unit, neatly complementing the group’s international activities.
The salmon farming and processing activities in Chile bundled under
the roof of Productos del Mar Ventisqueros S.A. were transferred from
the Schörghuber family’s private business holding to the Schörghuber
Corporate Group.
1

Exploiting new
Business Division | Seafood
2 3
1 | Healthy ecosystem: Patagonia’s coastal landscape
2 | Ideal for salmon farming: the water temperatures of the Pacific
3 | Country with great potential: Chile offers promising prospects for the future
business opportunities
A private business enterprise evolves into a new business division
The Schörghuber family has been involved in a variety of business enterprises on the South American continent since
the middle of the 1980s. These also include Productos del Mar Ventisqueros S.A., a company headquartered in Chile
that specializes in salmon farming and processing. The Schörghuber family’s involvement in Ventisqueros began in
2001 when the family acquired a 51-percent share in the company. In the years that followed, the Schörghuber family’s
Chilean holding company, Inversiones Stefal SpA, gradually acquired all of the share capital. The company, which was
founded in 1989, covers the entire value chain from fish spawn to fish fillet and provides employment to up to 1,700 people,
depending on the season, in the Los Lagos region south of Santiago de Chile. In the 2011 business year, the company
generated revenues of more than 100 million US dollars. It was this positive result, not least in view of the growing global
29

30
Global growth
market
demand for farmed salmon and the associated growth potential, that led to the strategic decision to transfer Ventisqueros
from the Schörghuber family’s private business holding and integrate it into the group as a fourth business division,
Seafood, effective 1 July 2011.
On a growth trajectory within the group of companies
1 2
Ventisqueros is one of the largest producers of salmon in Chile, serving an international market with a wide variety of
fresh and smoked products. The company’s principal customers are buyers from Japan and the USA, but Ventisqueros
is also steadily expanding its activities in Brazil, China, Russia, South Korea and other Asian countries. The company’s
consistently high production and processing standards and its well-established health management practices provide a
solid foundation for its success. The focus placed on diversity with regard to breeding and production is also one of
Ventisqueros’ great strengths. The production of both Atlantic and Pacific salmon, as well as salmon trout, not only
enables the company to satisfy the different preferences of its customers with regard to taste but also means that it is
better equipped to deal with possible fluctuations in the market than many of its competitors.
With this in mind, integration in the Schörghuber Corporate Group and in its management structures offers Ventisqueros
the support needed for a sustainable growth strategy. A strategy that will benefit from the locational advantages that
the Chilean production facilities offer. While the traditional large-scale producers of salmon such Norway are nearing
maximum capacity, Chile is currently utilizing less than half its potential. In addition, a favorable climate and almost
ideal water temperatures offer near-perfect conditions for salmon farming off the coast of Patagonia. This places Chilean
salmon producers and thus also Ventisqueros in a position to participate in the development of the global market to a
disproportionate extent. In 2011, Chile reported the highest rate of growth worldwide as far as the production of Atlantic
salmon was concerned.

Enormous growth rates for farmed salmon
Business Division | Seafood
4 5
3 1 | Optimum conditions for farming Atlantic and Pacific salmon and salmon trout
2 | Complete value chain: from fish spawn to fish fillet
3 | Appropriate farming methods: prerequisites for first-class product quality
4 | Sustainability: modern aquaculture facilities
5 | Guarantee for premium products: careful processing
Fish is considered to be especially valuable from a nutritional point of view, not least due to its polyunsaturated omega-3
fatty acids, and salmon in particular is extraordinarily versatile. Fish is extremely popular worldwide – regardless of whether
it is enjoyed smoked, marinated, steamed, grilled or even raw. Fish farming will also play an important role with regard
to feeding a growing world population since a significantly smaller amount of feed is needed to produce one kilogram of
salmon than is required to produce, for example, the same amount of chicken or pork. For example, 100 kilograms of feed
is sufficient to produce 65 kilos of salmon fillet but only 20 kilos of chicken or 13 kilos of pork. Assuming that worldwide
demand for salmon continues to increase by an annual rate of ten percent, approximately five million tons of farmed salmon
would have to be produced in 2020. The industry’s current capacities are, however, only sufficient to produce a maximum
of about 2.5 million tons. Wild salmon does not offer a viable alternative since the amount of wild salmon caught is more
likely to decrease in the future than increase. Although a large part of the demand for salmon was previously satisfied by
wild salmon, farmed salmon has steadily gained ground and in 1999 exceeded wild salmon for the first time.
Farmed salmon currently accounts for more than two-thirds of the overall market. At present, 2.1 million tons of farmed
salmon are produced worldwide. The industry generates revenues of approximately 10 billion US dollars with salmon.
This means that the market is three times the size it was ten years ago, and studies show that demand is continuing to grow.
A development from which the Schörghuber Corporate Group’s Seafood division will also reap substantial benefit over
the long term. The increasing demand for fish, and for salmon in particular, can only be met by the continual expansion
of high-quality fish farms. The industry is increasing its annual production by ten percent and is therefore booming
like no other branch of the food industry. According to the Food and Agriculture Organization of the United Nations
(FAO), the volume of farmed fish will double by 2030. The organization expects the largest growth spurt to take place
in Chile in the coming years.
31

Seafood Special

seafood
Chilean
aquaCulture
Meets Global
Food trends
Company profile
Productos del mar
ventisqueros s. a.
World population
develoPment and the
demand for food
expert opinions
from Business, Politics
and research
industry of the
future
salmon farming
BLINDTEXT SPECIAL I 2011
GrowinG
APPetite
for SAlmon
salmon markets
and sales oPPortunities
WorldWide
food safety
and sustainaBility
1

2
Patagonia’s Blue Coast
A SPECTACUlArly rICH AND FErTIlE rEGION
Contents
Interview 4–7
Chairman of the Executive Board
Dr. Klaus N. Naeve talks about the opportunities
and limitations of the salmon industry
Company Profile 8–11
The company Productos del Mar
Ventisqueros S. A.
Interview 12–13
CEO of Ventisqueros, Andrés Fletcher,
talks about his company’s organic growth
Impressions 14–15
Chile – an up and coming salmon-farming
nation with great future potential
Focus 16–17
Chiles aquaculture on the way to
sustainable and responsible development
Interview 18–19
Dr. José Miguel Burgos González talks
about interaction between the state and
the private sector in Chilean aquaculture
Background 20–23
Quality and food safety guarantee
the success of salmon farming in Chile
Interview 24–25
SINTEF expert Ulf Winther talks about
the importance of research and development
Description 26–27
The characteristics of the different
salmon species
Market Development 28–33
Demand and sales growth for farmed
salmon from Chile
Competition 34–35
Chile – salmon producer of the future

Dear readers,
Do you like eating salmon? If you do, then you are in step with
one of the latest trends. A trend that could change the face of
the food industry around the world in the long term. Never
before have so many people been eating salmon – and the
number is growing. Global demand for this healthy and delicious
alternative to meat has been growing rapidly, particularly
in what are referred to as the emerging nations. However,
the days in which such great demand could be satisfied by
wild fish stocks are long gone. But it could be satisfied by a
sustainable, intelligently managed aquaculture industry such
as the one currently developing in Chile.
Salmon of an exceptionally high quality can be farmed in a
very efficient and sustainable manner in western Patagonia in
particular, where the natural environment and climate provide
ideal conditions for fish farming. Under these favorable conditions,
salmon farming in Chile and with it our family shareholding
– Productos del Mar Ventisqueros S. A. – have enjoyed
steady growth over the past few decades. Business has now
reached a dimension that prompted me to transfer these
activities to the Schörghuber Corporate Group.
I personally believe that salmon farming is a very dynamic
and profitable area of business and, as such, naturally demands
a keen entrepreneurial vision now and in the future. We are
therefore committed to treating natural resources in the area
in a sustainable and respectful manner – both in our own interests
and in the interests of the environment. This also includes
social responsibility and working relationships with employees
and partners that are based on trust.
you can read all about what makes salmon farming in Chile
different, where its potential lies, what challenges need to
mastered and what direction development is likely to take in
this special supplement to our 2011 annual report. let us take
you on an exciting journey that will provide you with a wealth
of information about salmon and salmon farming – I’m sure
that you will find it fascinating.
I hope you enjoy your read.
Alexandra Schörghuber
Alexandra Schörghuber
EDITorIAL I 2011
3

4
interview with Dr. Klaus n. naeve
“excellent
opportunities for growth”
As chairman of the executive board, Dr. Klaus N. Naeve has been guiding the
fortunes of the Schörghuber Corporate Group since 2009. In the beginning,
he was rather skeptical about the company’s involvement in the seafood
industry. But the salmon farm in Puerto Montt – with its excellent fish, flourishing
sales and exemplary quality and corporate philosophy – convinced him otherwise.
Today, in 2012, what opportunities does he see this business involving
Chile’s new “treasure” offering and what are its limitations?
In the summer of 2011, the Schörghuber Corporate
Group announced that it was adding seafood as a
fourth business division, and that this division
would be based on a shareholding in aquaculture
in Chile. Did this step really make sense?
It made sense in that we seized a business opportunity
that had become increasingly clear as such in
recent years. Salmon farming is booming, especially
in Chile. At the time, people might have thought
“building, brewing, hotels – and now salmon?” But
taking over Productos del Mar Ventisqueros S. A.
was entirely in line with the business strategy that
our company has been pursuing from the very
start.
And what is that?
As a classic conglomerate, we have never put all our
eggs in one basket. Josef Schörghuber started off in
construction, bought an airline soon after that, and
then went on to buy a number of breweries. At first,
these business enterprises didn’t have very much in
common, but they did in terms of clear-cut opportunity
and risk assessment.
How challenging is it to manage a Chilean business
from within a German corporate group?
The Schörghuber Corporate Group has been
managing unrelated areas of business in a number
of different countries for a long time now.
Countries that are not only subject to their own
economic cycles but which are also influenced by
the mentality of the local people. And, in fact, we
have found that it is these differences that often
provide positive impetus. Ventisqueros is Chilean
and we don’t intend to “Germanize” it. Of course,
we have highly developed management tools and
mechanisms in the group that will be used to ensure

the company’s sustainable development. It’s impossible
to quickly integrate over 1,000 employees
and that’s not our intention. They should retain
their own local identity. What we share is a common
goal, that of growing the business successfully together.
In this respect, we have defined clear-cut
goals together with company management - and
we are well on our way to achieving them.
Why concentrate on Ventisqueros?
After all, there are other salmon farms in Chile.
Ventisqueros has belonged to the Schörghuber
family’s private business realm, initially as a shareholding,
since 2001. Its current size, however, necessitated
its transfer to the holding. But this decision
was not just a matter of course. I, myself, was
rather reluctant in the beginning – after all, this area
of business is not without its risks. But we examined
all the data and information we received from
Puerto Montt very carefully and visited the company
ourselves to get a complete picture. With the
result that, from a business point of view, it would
have been a shame to relinquish the business. So
much potential was an opportunity not to be missed.
What makes the enterprise so interesting?
INTErvIEw I 2011
Abundant pristine
water, optimum
growing conditions
and years of expertise:
salmon farming has
found the perfect
environment in Chile.
For one, global demand for salmon has been growing
steadily, especially in the so-called BrIC countries
such as Brazil, russia and China. you have to
realize that if even just a fraction of the people in
these heavily populated countries eats salmon,
we’re talking about a huge number overall. Demand
is also growing in the “tiger” economies
South Korea, Taiwan and Singapore. An increasing
amount of salmon is also being exported to Mexico
and Venezuela. Even the volume exported to European
countries such as Germany and France is on
the increase. Wild fish stocks haven’t been able to
meet this demand for a long time now, and there
are only a few regions in the world that have the
necessary climatic and geographic conditions for
salmon farming. Chile is currently the only one that
can increase its volume of production to a significant
extent. And not only that, Ventisqueros provides
optimal microconditions: not only a lot of
know-how and exceptionally skilled, committed
employees but also well-managed production facilities.
Unlike a lot of our competitors, we are able
to process all our fish directly on site. The quality �
5

6
standards in place at Puerto Montt can easily withstand
international comparison and justify the positioning
of our products in the high-price segment.
With this in mind, how much growth do you consider
realistic in the coming years?
We are aiming to double production from its current
level of 20,000 tons to 40,000 tons of salmon
per year and to achieve this aim this within the
course of the next three years. Our present processing
capacity is designed to handle this volume.
Our sales target is, of course, price-dependent
but as a guideline, we are talking about 200
million dollars a year.
Is there an upper limit for growth?
As is the case in Norway, there is also a limit to
capacity in Chile, and it lies at around one million
tons of salmon per year once all the regions in the
country suitable for salmon farming have been developed.
If we were to exceed this volume, the conditions
for sustainable salmon farming would no
longer exist. Incidentally, there are statutory regulations
in place in Chile that stipulate the maximum
salmon stock density in the individual cages and
the distance that must be maintained between
cages, thus ensuring the necessary regeneration of
the water.
Do you think it possible that Ventisqueros could expand
its farming facilities to include other species
of fish?
At the moment there’s no reason to give that any consideration.
With Atlantic salmon, Pacific salmon and
salmon trout, we already have an ambitious portfolio
since all three of these species of fish having very different
needs. We are therefore concentrating on the
healthy expansion of these species. Generally speaking,
it’s very difficult to transfer know-how from one
area of aquaculture to another – the living conditions
of the fish are just too different.
larger scale aquaculture always gives rise to questions
regarding the ecological aspects and sanitary
conditions. To what extent does the Schörghuber
Corporate Group take responsibility for food safety
and the environment?
We have a major interest in keeping the quality of our
products at a consistently high level. This quality –

which can be recognized by the texture and taste
of our salmon – is the result of the high-quality feed
fed to the fish among other things. Fish in aquaculture
also of course need medical care, there’s
no way around that. But with the right know-how,
we can keep the use
of antibiotics to a minimum
– immunization
provides added protection
against infections.
Monthly reports
allow us to stay informed
about what is
happening in Chile.
However, at Ventisqueros,
we rely on cooperation
rather than
on control and pressure.
These high standards
are, of course,
in the best interests of
the producer. Our
main customer, Japan, for example, places the
highest demands on quality – with regard to color,
consistency and the safe packaging of the product.
And wealthy salmon consumers in the so-called
emerging countries also demand premium products.
Where do you see the Seafood division in ten years’
time?
I think Ventisqueros will continue to grow steadily
and will exploit its capacities in the medium term –
within the aforementioned sustainability limits. Of
Dr. Klaus N. Naeve:
Successful salmon
farming involves
minimizing risks and
making the most of
opportunities.
INTErvIEw I 2011
course there are bound to be fluctuations, also as
a result of price developments. There is also no way
of completely ruling out the outbreak of new diseases.
But after three decades of industrial salmon
farming, we do have very effective instruments at
our disposal to keep
such risks to a minimum.
In this respect, I’m ex-
tremely confident that
our activities in Chile will
continue to be very gratifying.
And now a personal
question to finish off. Do
you yourself love salmon?
And, if the answer to
this question is yes, how
do you best like it prepared?
yes, I’m a “salmonophile”
through and through. But I don’t have a favorite
method of preparation. regardless of whether it’s
raw, marinated, smoked, steamed, fried or grilled,
whether it’s Atlantic salmon, Coho or salmon trout –
if the quality is right, I enjoy salmon in any form. As
is so often the case, variety is the spice of life.
7

8
23years of experience
1,500employees
30locations
Salmon for
the world ...
… and a producer with a bright future:
Productos del mar Ventisqueros S. A.

twenty-three years of experience, more
than 30 locations and an average of 1,500
employees per season mean that productos
del mar Ventisqueros s. a. is looking
toward a lucrative future. founded in 1989,
the chilean company specializes in salmon
(salmonidae) aquaculture. in salmon farms
along the coast of western patagonia, three
varieties of salmon are grown to maturity
for harvesting: atlantic salmon (salmo
salar), salmon or rainbow trout (oncorhynchus
mykiss) and pacific salmon, also
known as coho salmon (oncorhynchus
kisutch). in the face of growing global
demand and with local conditions being
ideal, Ventisqueros is now gearing itself
up to substantially increase its volume of
production and gradually exploit its full
potential. new aquaculture regulations
initiated by Ventisqueros together with
salmonchile, the chilean salmon farmers
association, are intended to help ensure
that this growth is sustainable. Ventisqueros
has already taken a first step toward
success: with a production volume of approximately
20,000 tons, Ventisqueros is
now one of the leading salmon producers
in chile.
20,000tons
The southern part of Chile is sparsely populated.
This part of the country, also known as “the great
South”, is a very fertile region with a particularly high
level of precipitation. This is because the Chilean
part of Patagonia is influenced by the humid, cool
climate of the West Andes and its rain forest. Here,
where the “backbone” of latin America meets the
sea, the coastline is broken by numerous offshore
islands. The many protected coves with pristine,
fast-flowing water offer excellent conditions for
salmon farming – particularly in view of the fact
that the mountain range provides a constant supply
of natural spring water to the whole region. The
company Productos del Mar Ventisqueros S. A. is
located in Puerto Montt, the “Salmon Capital” of
Chile. The pro duction of farmed salmon began there
in 1989. Since then salmon farming has enjoyed organic
and continuous growth. In the meantime,
Ventisqueros employs approximately 1,500 people
at its freshwater and saltwater facilities and two
processing plants. In 2011, the company generated
revenues in excess of 100 million dollars, and that,
even though the company is currently exploiting
only about half its potential capacity.
Product diversification and flexibility
ComPANy ProfILE I 2011
Three different species of salmon are farmed at Ventisqueros.
Atlantic salmon is the largest with a harvesting
weight of four and a half kilograms, followed
by Coho or Pacific salmon and rainbow or salmon
trout, both with harvesting weights of about three
kilograms. Although they all belong to the same family,
the different species have different lifecycles and
harvesting cycles, which places considerable demands
on the production processes. This diversification,
on the other hand, acts as a stabilizing factor
as it enables the company to not only meet the
different demands of its export markets as best
possible but also provides a certain amount of protection
against the spread of infectious disease
within the production facilities. In most cases, the
diseases only affect one particular species, not all
three. Therefore, if an infection does break out,
containment measures can be implemented quickly
and effectively so that loss of the entire biomass
can be avoided. The deliberate cultivation of flexibility
and diversity is also characteristic of how the
salmon is processed: Ventisqueros tailors the packaging
and the degree of processing of its products
to the preferences of the consumers in its export
markets, which are first and foremost Japan, the
USA and latin America. And the demand from
“new” countries such as russia, China and Brazil is
on the increase. Ventisqueros will be ready – if need
be, with new products. �
9

10
A closed value chain from fish egg to fish fillet
Ventisqueros controls a closed chain of production,
from the fish egg through to the customer-ready
product. Careful selection of the fertilized eggs is
carried out in the spawing pools in the hatcheries.
The young fish develop into juvenile salmon, referred
to as smolt, over a period of seven to twelve
months, depending on the species, spent in special
freshwater tanks. In the wild, smolts start to
migrate to sea when they reach a weight of about
85 to 250 grams. While in the wild large numbers of
smolts die on this dangerous and laborious journey
to the sea, at Ventisqueros they are transported
there directly. In the pristine seawater along the
coast, the fish grow to what is called “maturity for
harvesting” in the industry. In the case of Atlantic
salmon, this takes another fifteen to eighteen
months, salmon trout and Coho salmon develop a
little faster in about nine to thirteen months. The
fish are processed immediately after harvesting at
the plant in Chincui and some are smoked at the
facility in río Negro. The processed products are
then stored in special cold storage and freezing facilities
ready for further distribution. Because even
the fish feed suppliers are located near the farms,
Ventisqueros is able to produce at low cost in this
end-to-end process chain.
Comeback at turbo speed
The Chilean salmon industry learned a lot from the
crisis of 2007, when infectious salmon anemia
(ISA), a virus that had previously struck salmon
farms in Norway, Canada and Scotland, hit the
Chilean salmon farmers, decimating their stocks of
Atlantic salmon. As a result, a new set of guidelines
for salmon farming were developed by the Chilean
Salmon Farmers Association, SalmonChile, in
which Ventisqueros plays an active role, together
with politicians and scientists. One objective of
these guidelines was to ensure a sufficient high
level of biosecurity in the salmon farms. Therefore,
limits were defined for stock density, the distance
between individual cages as well as longer periods
of regeneration for the waters. In addition, new legislation
allows infringements to be penalized with
strict sanctions that go as far as the withdrawal of
concessions. The successful comeback of the Chilean
salmon industry is being underpinned not just
by these changes but also by the increasing demand
for salmon worldwide. Although Japan and
the USA are still its main export markets, Ventisqueros
is now exporting to an increasing number of
other countries. Asia, latin America and russia are
developing particularly fast, whereas the European
market is still dominated by salmon from Norway.
from a single-site company to high-volume
production from a single source
1989 Ventisqueros is founded and
salmon farming and processing operations
are launched at the facility in río Negro.
1995
The production of Coho commences.
1992 revenues reach a
total of approximately seven
million US dollars.
2004 A new
processing plant (Chincui)
is built.
2001 The Stefal Group takes over
51 percent of Ventisqueros’ shares – revenues
meanwhile amount to 20 million US dollars.

Production and processing standards
of the highest order
It is natural that all customers have high expectations
with regard to product quality. In the case of
Japan, for example, special specifications apply
that are monitored by the wholesale customer on
site to ensure that they are observed. For this reason
alone, Ventisqueros is required to implement
the highest international standards. With its vertically
integrated production process, which bundles
every step, from the spawning pool to distribution,
under a single roof, the company is able to do this
extremely efficiently. An early warning system comprising
regular controls and the appropriate monitoring
contributes to ensuring that potential pathogens
are recognized and dealt with quickly. In
addition, the company’s internal health management
system provides the salmon with the best
possible medical care. Apart from biosecurity while
they are being raised, the other crucial keyword on
the way to the finished product is food safety. International
standards of hygiene such as the reliable
HACCP (Hazard Analysis and Critical Control
Points) system as well as BrC (British retail Consortium)
and IFS (International Food Standard) certification
– Ventisqueros is currently in the process
of obtaining IFS certification – guarantee that the
required food safety standards are maintained.
2006 Chincui commences
production, río Negro will now produce
only smoked products.
2007 Stefal takes over 95 percent
of Ventisqueros’ shares. When a virus
hits Atlantic salmon stocks, the volume
of sales falls by seven million US dollars
to 61 million US dollars compared to the
previous year.
cost efficiency as a
competitive advantage
ComPANy ProfILE I 2011
In 2010, Ventisqueros was number eight in
the Chilean salmon industry’s ranking. The
company could, however, move its way further
up the rankings – in part as a result of its
efficient, integrated production process,
which covers the entire value chain. Overall
production costs at Ventisqueros are, for example,
comparatively low.
2011
A year of
upheaval
The company’s
transfer to the
Schörghuber
Corporate
Group marks
the start of a
new phase of development for Ventisqueros.
The company is expected to enjoy sustainable
and profitable growth in the coming years. It
is not only the group’s solid financial base but
also its controlling and management tools that
will make a significant contribution towards
achieving this goal. The potential is there –
after all, salmon production in Chile increased
by approximately 30 percent in 2011.
2011 Ventisqueros’ enormous growth
necessitates taking a new step: the salmon
farm belonging to the Schörghuber family’s
private business enterprise Blue lion via
the Stefal Group is taken over by the
Schörghuber Corporate Group. Seafood
becomes the conglomerate’s fourth business
division. From now on the growth strategy is
managed from Germany.
2010 Following intensive
restructuring, Ventisqueros
resumes its organic growth.
11

12
Interview
with Andrés Fletcher
“the future
belongs to
sustainable
aquaculture”
■ As CEO of Productos del Mar Ventisqueros
S.A., Andrés Fletcher has been
responsible for the performance of the
salmon farming company since 2008.
Within the framework of the Salmon
Farmers Association, SalmonChile, he is
involved in promoting the organic and
profitable growth of Chile’s aquaculture.
Mr. Fletcher, global demand for salmon is on the
increase – the days when wild fish stocks were able
to meet this demand are long gone, which means
that the aquaculture industry is booming. What is
your forecast for growth in the coming years?
Well, cumulative growth worldwide last year was in
excess of ten percent. We therefore now have the
opportunity to grow in a sustainable manner and
optimize our marketing and product development
in line with this upward trend. Norway is on the verge
of reaching its capacity limits, which means that
most of this growth will take place in Chile.
What is the difference between products from
Ventisqueros and those from its competitors? What
benefits are there for the wholesale customer?
Our products combine two unique characteristics:
our passion for quality and the particular conditions
in which the salmon are farmed, namely in one
of the cleanest regions in the world. The result is
products with great appeal for people to whom a
high life expectancy and a high standard of living
are important. Our wholesale customers profit from
our excellent standing, and in turn, they can guarantee
their own customers exceptional quality and
impeccable provenance.
In 2007, a fast-spreading virus that had previously
struck salmon farms in Norway, Canada, Scotland
and the Faroe Islands also devastated Atlantic salmon
stocks in Chile. Afterwards, you yourself played
an active role in developing a set of guidelines to
ensure sustainable salmon farming. What role did
the Salmon Farmers Association, SalmonChile,
play in the development of these guidelines?
We played a vital role since the crisis surprised not
just the industry but also the authorities. We had to
completely redefine ourselves, making use of all the
know-how available from the other salmon-producing
countries and put it into practice in our own farms.
A lot of courage and resources were needed to ensure
that a crisis of this type doesn’t happen again.
Today, our mortality rate has never been so low,
even in comparison with other salmon-producing
countries. In addition, the association forced the
authorities and the government to tighten up legislation
and controls to ensure improved monitoring
of quality and biosecurity.
Which measures was Ventisqueros able to realize
in cooperation with the Salmon Farmers Association
and together with other organizations and the
political establishment?
Our company was voted onto the executive board of
SalmonChile last year, which means we provided support
for passage of the amendments to legislation in
parliament and numerous negotiations with authorities
involving regulations that are already in force.
What additional action does SalmonChile plan
on taking to support the upswing of the salmon industry?
SalmonChile will be playing major role in four different
areas: sustainability of the salmon industry, contact
with authorities, research and development as well
as the development of a brand identity for Chilean
salmon. As we are the largest and most competent
organization of salmon farmers in Chile, we have
to be involved in all the areas where the influence
of one company alone is not sufficient to have an
appropriate impact.
What has changed most for Ventisqueros as a result
of the new production requirements?
We had already implemented a majority of the measures
as best practices before they were prescribed
by law. Generally speaking, the major impact on all
salmon farming companies was due to the higher
cost of freshwater and the need to broaden their
portfolio of seawater licenses.
Infections can never be ruled out completely – how
is Ventisqueros equipped for the fight against new
pathogens?

It is impossible for one company alone to answer
that question. The answer also depends on how well
the industry as a whole and the authorities are
prepared for such a scenario. I do believe, however,
that the monitoring systems that we have in
place for the early detection of new diseases are
functioning smoothly. It is in our own interest that
Ventisqueros complies completely with all requirements
and statutory regulations, and we encourages
other companies to do so as well.
What investments have you got planned to realize
Ventisqueros’ growth strategy?
We are growing organically and at a speed that allows
us to establish the structures that we need to run
our business in the best possible way. This enables
us to operate in a sustainable manner while at the
same time achieving good economic results.
Strong industrial growth in Chile has led to a shortage
of manpower and skilled workers. How does
Ventisqueros promote the development of its employees
so that they remain loyal to the company
in the long term?
We have introduced a recognition scheme that
evaluates and honors the skills and results of our
employees and rewards successes achieved as a
INTErvIEw I 2011
team in particular. Our Human resource Management
department also organizes regular training
programs, as well as activities aimed at celebrating
the goals that we have achieved so far – a good
way of keeping the team motivated and committed
to the company’s objectives.
last year, the Schörghuber Corporate Group took
over Ventisqueros and officially made “Seafood” its
fourth business division. What does that mean for
your employees and your company?
This move was quite simply vital for further development.
The company’s current size and its goals
require the involvement and support of the group.
We will learn a lot from their high level of professionalism
and of course profit from their resources
as far as our plans for growth in the coming years
are concerned. We feel honored to be part of this
large corporate group. At the same time, we are also
grate ful for the ten years that we were managed by
the Schörghuber family’s private holding, which, despite
all the challenges and all the ups and downs,
had faith in us even when times were difficult.
13

14
1
2 3 4

5
6
1 Climate summit: the Andes provide the coast
and back country with crystal clear water.
2 Highly sterile: germs have no chance when
salmon is processed in Puerto Montt.
3 Stringent quality control: at Ventisqueros,
nothing is left to chance.
4 State-of-the-art technology enables the continuous
monitoring of every single production step.
5 At the foot of the mountains: ideal conditions
for Chilean salmon farmers.
6 Patagonia’s ecosystem deserves the careful
handling of natural resources.
7 Salmon aquaculture – in harmony with man
and nature.
8 Direct processing: Ventisqueros production
facility in Puerto Montt.
7
8
ImPrESSIoNS I 2011
15

16
Health + ecology
+ social responsibility +
focus on sustainable
aquaculture
Ventisqueros operates salmon farms in the chilean part of patagonia, a region boast-
ing the cleanest water in the world. the purity of the water in this wild and
rugged coastal region is an essential requirement for the production of premiumquality
salmon products. it therefore goes without saying that Ventisqueros takes
its responsibility for this natural resource very seriously. the sustainable use of
natural resources and protection of the environment is taken into consideration
in all the company’s processes and procedures – not least because, in this case,
environmental and economic interests go hand in hand.

At Ventisqueros, sustainability does not end at the
spawning pool or rearing cage. It also encompasses
social commitment, close and trusting working
relationships with suppliers and customers, and
measures intended to help employees develop
both personally and professionally. In 2010, the
company launched a sustainability project that
outlined the relevant areas of development involved
in a sustainable commitment for the future. They
include not only the careful handling of natural resources
but also supporting social life in the community.
Taking responsibility
Whenever the opportunity arises, Ventisqueros
tries to set a good example for the industry. The
company is, for example, the first salmon farmer in
Chile to make a commitment to draw up CO 2 balance
sheets. The company is also a pioneer in the
use of environmentally-friendly copper nets in saltwater
farming. At the same time, it is aware of the
fact that these measures are not yet sufficient. Ventisqueros
is therefore working together with the
Chilean “Fundación Casa de la Paz”, which is involved
in social and environmental projects throughout the
whole of South America – the only salmon farmer
to do so. In 2011, a joint status analysis was carried
out at the company in which numerous interest
groups were involved. The final report confirmed
not only that Ventisqueros is strictly adhering to
environmental regulations and engaging in a constructive
dialog with stakeholders, but also that it
had made a positive contribution to the quality of
life of the population in neighboring communities.
Ventisqueros – a major employer in Patagonia
According to the report, the company not only contributes
to high employment in general – at the end
foCuS I 2011
of January 2012 unemployment in Puerto Montt
was 1.5 percent, which is substantially below the
level of structural unemployment – but also uses
every opportunity to train skilled workers. The company
also draws on internationally trained university
graduates and qualified engineers. With a
workforce of up to 1,500 employees, Ventisqueros
is one of the five leading employers in region X
(los lagos region), a region in which more than 20
percent of the population works either directly or indirectly
in the salmon industry. The fact that the
women and men working at the company have
equal status with regard to employment and training
has a significant positive effect on the living conditions
and standard of living of the families. Because
the parents’ income offers financial stability,
more and more children in the region are able to attend
school rather than having to contribute to the
family’s income.
Further growth with innovation
Idea management at Ventisqueros also merits respect.
Claudio Pavez, Head of Innovation stated that
“2009 saw the birth of a new culture of innovation”.
“The spectrum of topics ranges from more sustainability
to increasing productivity. In the meantime,
we have been able to successfully carry out a variety
of projects – some even with financial support from
the government.” One of these projects involves the
production of salmon in underwater cages, which
enables the farming of salmon in unprotected sea
and fjord locations. According to Pavez, “this project
is unique in the salmon industry to date”. “It
gives us access to new salmon farming grounds
and provides better physiological conditions for the
salmon. This allows productivity to be increased
while at the same time reducing pollution of the
seabed.”
from organic waste to fuel?
In cooperation with leading universities in the country,
Ventisqueros is currently exploring possible ways of
producing bio-fuel from the organic waste generated
by salmon production. This would be another valuable
contribution to sustainable aquaculture and the respectful
handling of natural resources.
17

18
“the political
establishment
must also do
its part.”
Interview
■ Dr. José Miguel Burgos González,
Head of the Aquaculture Division of the
State Secretariat for Fisheries in the Chilean
Ministry for Economic Affairs, talks about
a booming industry and its prospects for
the future.
Dr. Burgos, your department is responsible for all
legal requirements and regulations for aquaculture.
What is the main objective of your work?
Our mandate is to contribute to the sustainable development
of this important industry. We have just
completed work on new regulations that will better
reconcile economic development of the salmon
farming industry and protection of the environment
and biosecurity – this is vital for the future.
you have been involved in the history of aquaculture
in Chile since the 1990s – how would you characterize
the development of salmon farming in the past 10
to 15 years?
It is a successful Chilean industry that has enjoyed
rapid growth – thanks to the commitment of businessmen
and the favorable conditions that Chile
offers for developing aquaculture. In its time, this
growth took place without a parallel institutional
infrastructure; proper development of the industry
was based on self-regulation. However, the crisis
caused by the ISA virus showed us that the industry
needs clear rules to guarantee public welfare as
well as proper care of the environment, health and
society.
What does sustainable aquaculture mean as far as
you and your agency are concerned? How important
is it to the Chilean government?
For us, sustainable aquaculture means achieving
the right balance between production, the environment
and biosecurity on the one hand, and the
social development of the communities in which
these operations are located on the other hand. We
must remember that this industry is creating prosperity
and a large number of jobs in the southern
regions of Chile. Therefore, Chile has a fundamental
interest in securing the development and survival
of this industry over the long term.
How is the political establishment supporting the
Chilean salmon industry? How are both sides
working together?
Salmon farming is strategically important for Chile –
as an economic and social factor. There are a number
of different bodies in which we work together
with the salmon industry. The most important was,
and is, the “Mesa del Salmón”, or “Salmon round
Table”. This is an organization that brings the producers,
the government and the providers of services
to the industry together to discuss various aspects
of the production process, regional aquaculture
planning, the infrastructure for supporting the industry,
the new institutional structures, and research
and development requirements. This way we ensure
that everybody makes a contribution in their area
of expertise towards the sustainable development
of this industry. We have also set up a number of
other working groups with the other areas involved
in Chilean aquaculture in which we deal with similar
issues.
Shortcomings with regard to sanitary conditions –
as was the case with Atlantic salmon in 2007 – are
often portrayed as the result of overexploitation of
the waters. Is that correct? What other factors play
an important role as far as the health of the fish is
concerned?
The rapid spread of the infectious disease pinpointed
numerous errors: errors in our production processes,
in the concept and structure of our farming concessions,
insufficient research into strategic areas for
regulation and, what I consider essential, institutional
structures that were insufficiently developed
to monitor an industry that had become the world’s
second largest producer of salmon– and the biggest
producer of salmon trout – within a period of
just 15 years.
How has the new legislative framework that your
agency created contributed to overcoming the epidemic
and its consequences?
After the crisis, we completely rethought the health
and hygiene-related requirements for salmon farming.
A number of new standards and procedures have

een introduced between the time that the first
case of ISA occurred and today. For example, we
have changed legislation so that the agency responsible
for Chilean fisheries has been given greater
authority, and we have increased the level of
biosecurity in the production chain significantly.
law No. 20.434, which relates to aquaculture and
was passed in April 2010, endorsed these measures
and strengthened the supervisory functions of the
State Secretariat for Fisheries. Furthermore, the
need to draw up additional regulations to supplement
the health and hygiene-related measures was
noted.
What form does cooperation between the political
establishment, industry and national and international
research/science bodies take?
The entire concept was developed together with
scientists from Chile’s leading universities. At international
level, we were able to count on support
from centers that work together with the OIE (Office
Internationale des Epizooties = World Organization
for Animal Health) and from the OIE itself, as well
as on the participation of international experts from
Canada, the USA, Australia, Scotland, Great Britain
and Norway.
What strategy is being pursued to ensure sustainable,
largely crisis-resistant growth in the future?
INTErvIEw I 2011
We have completely revised the fundamentals of
salmon farming in Chile and introduced new environmental,
health and hygiene standards. Our
strategy is focused on the long term and is geared
to further developing all standards and regulations
together with the industry and adapting them to
changing circumstances.
What is your own personal prognosis? What position
will the Chilean salmon industry have in the global
market in 2020? And what markets/countries currently
offer the best sales opportunities?
I firmly believe that salmon farming in Chile will
continue to grow and that incorporation of the
Strait of Magellan will make an important contribution.
Fluctuating market prices will, however, have
an impact. Chile is looking towards traditional markets
like America but also toward latin American
countries like Brazil and Mexico. At the same time,
we are hoping to increase consumption in our own
country. In any case, market diversification is a task
for the future, one that demands not only the participation
of the entire industry but also commitment
on the part of the political establishment.
19

20
100
%
Premium products that win over
consumers will secure the long-term
success of Chilean salmon farmers.
regulation of the entire sector
as well as compliance with internal
standards by individual companies
ensure 100-percent quality.
Quality and food safety
Two cornerstones for profitable growth
True sustainability carries its own promise of quality
– especially in aquaculture. Only the judicious use of
natural resources and a willingness for self-monitoring
can guarantee reliable, high-quality products –
and subsequently economic success – in the long
term.
Past experience has shown that there is a maximum – sustainable
– stock density in the cages that can guarantee fish
health. At the beginning of the century, following the example
of other salmon-producing countries, more and more fish in

Chile were kept in the same amount of space to increase
profits – without meeting the need for sufficient sanitation. This
facilitated the outbreak and rapid spread of infectious salmon
anemia (ISA), a viral disease, in 2007 and 2008. Damage to the
Atlantic salmon stocks in Chile was considerable. Consequently,
the Chilean Salmon Farmers Association, Salmon-
Chile, met with representatives from political and economic
circles. The goal was to formulate new regulations for the industry
that could minimize such risks in the future.
The comeback of the salmon farmer
Ventisqueros played an active role in drawing up the new regulations,
which cover all aspects of Chilean salmon farming,
including its sanitary and technological requirements (see
panel). Immediate implementation of the program achieved
swift results. After a few weak years, sales and profits have
now picked up considerably. And Atlantic salmon, the species
most affected by the virus, is now increasing in numbers.
The harvest volume has been increasing steadily, particularly
since the middle of 2011, as well as the number of fish transfers
from freshwater to saltwater. Investors, banks, politicians and
industry are now all agreed that, in view of current regulations
and the willingness to continue to develop them in a flexible
fashion, salmon farming in Chile can grow in a profitable and
controlled manner – without self-destructive excess.
Biosecurity and health management
At Ventisqueros, paying close attention to biosecurity is central
to guaranteeing a high level of quality throughout all phases of
the production process. Biosecurity comprises all measures
aimed at ensuring the absence of pathogens and germs in
production and processing facilities. This reduces the general �
BACkgrouND I 2011
the most important
new regulations for
salmon farming
(source: rabobank 2011)
■ Stricter definition of approved
zones and areas for aquaculture
■ Fixed minimum distance
between cages
■ restrictions on the issuing of
new licenses
■ Punishment for infringement of
ecological, sanitary and laborrelated
regulations with the
revocation of licenses and/or
the imposition of fines
■ Ban and limitations on smolt
production in estuaries and lakes
■ Ban on the transport of
breeding stock
■ Transfer of juvenile fish into
saltwater and harvest at
specific intervals
■ Obligatory breaks (idle time)
after every harvest
■ limits on stock density
■ Screening and assessment of all
sanitary, medical and ecological
conditions in spawning pools,
freshwater tanks and saltwater
cages as well as during harvesting,
slaughter, processing and
packing
■ Further suggestions for regulations
are currently being considered,
including a ban on Atlantic
salmon farming in lakes, the
introduction of a risk assessment
system for salmon farming
companies and the creation of
macro-production zones to limit
sanitary risks
21

22
risk of diseases occurring, and should they occur, prevents
them from spreading from one facility to the other. Moreover,
consistent health management involves monitoring the
health and living conditions of the fish, for example by means
of regular water-quality checks, investigation into unusual
causes of death and analyses performed at predefined intervals
by outside laboratories. An immunization program during
the freshwater phase and long-term strengthening of the
fishes’ immune system by way of its nutrition are further
methods of disease prevention. And to make sure that the

eproductive material is free of disease from the start, Ventisqueros
puts its own Pacific salmon breeding stock through
regular screening. Purchased reproductive material for Atlantic
salmon and salmon trout are also subject to meticulous
screening, the standards of which are considerably higher
than prescribed by law. Should there be an outbreak of disease
or parasites despite all preventative measures, it is
monitored carefully and kept under control.
Manuel Salas, head veterinarian at Ventisqueros, sums
up the company’s health management in this way: “In the
health team at Ventisqueros, we concentrate first and foremost
on ensuring that there is no outbreak of disease – in
other words, prevention. This is good for the fish and at the
same time reduces our
Prevention
is better than
treatment
need for pharmaceutical
drugs. In this way, we
also make a contribution
to lowering production
costs.” Disease preven-
tion is also good for the consumer. To ensure food safety,
tests must show that the salmon have not been contaminated
with any unapproved pharmaceuticals or other substances
before they can be transferred from freshwater to saltwater,
for example. The fewer drugs used during breeding, the better.
And optimum sanitary conditions certainly make themselves
apparent in the end product. regular microbiological
measurements and checks performed on smoked, fresh and
frozen salmon consistently show that Ventisqueros products
fall well below existing standard maximum values in Europe,
Chile, Japan and the USA.
BACkgrouND I 2011
Quality you can count on
In order to guarantee its exceptionally high quality standards over the long term, the quality assurance
department at Ventisqueros oversees every single step in the production process. Because
responsibility for everything – from the breeding centers to storage of the finished product
– remains in the hands of one company, full documentation of the entire process is possible. And
this pays off. The production facilities in Puerto Montt are certified for worldwide export, and the
products themselves fall into the category A1, the highest possible quality rating. In addition to
existing HACCP certification, upcoming certification by the BRC (British Retail Consortium) and
IFS (International Food Standard) will soon also provide a guarantee of the safety and quality of
Ventisqueros’ products.
23

24
expert interview
talk
“Paving the way for
successful future
development”
Ulf Winther is a scientist and research
manager. His interest lies in salmon farming,
the beginnings of which he witnessed
firsthand in Norway. As research director
of the SINTEF Fisheries and Aquaculture
institute in Trondheim, Norway, a subsidiary
of the largest independent research
institute in Scandinavia, he has initiated
and supervised an intensive transfer of
know-how from Norway to Chile in recent
years. Winther now sees a new challenge
in promoting research and development
in Chile itself that is tailored to the individual
needs and preconditions in that
country. According to Winther, if this objective
is achieved, salmon farming in
Chile will be heading towards extremely
profitable growth.
Mr. Winther, in short: where does Chilean aquaculture
stand at the moment?
In my opinion, salmon aquaculture in Chile can be
compared to that of other major salmon producers
like Norway and Scotland – and, for the
most part, it uses the same technology. In some
respects, Chile is even the front runner when it
comes introducing new technology; for example,
the use of closed-loop water recirculation systems
in their new smolt breeding facilities. Or the use
of metal nets instead of nylon nets in the saltwater
farms. In other cases, they cleverly adapt existing
technology to meet the challenges that Chile
poses – using double nets for protection against
sea lions, for example.
Norway is, in a manner of speaking, the “cradle”
of salmon farming. How can SINTEF help up and
coming salmon-producing nations develop an approach
that is successful in the long term through
the transfer of know-how?
We see a number of different options here. In Chile,
we selected one that involved founding a sister institute,
AVS Chile, together with the Norwegian research
facilities Norfima and VESO. Something like
that, however, is very resource intensive and can’t
be implemented in a number of different countries
at the same time. That’s why we are trying to
find strategic research and development partners
elsewhere, who can complement our own areas
of competence and will hopefully develop into a
strong basis for future research and development
efforts. And, last but not least, we work together
with a large number of research and development
institutes and centers around the world on a projectby-project
basis.
What were the aims behind the founding of AVS
Chile – what is its main emphasis?
In general, I think that it is vitally important for the
future development of salmon farming in Chile that
the efforts in the area of research and development
be increased to well above the current level. If
Chile’s specific requirements are to be given due
consideration, the Chilean solutions should really
be developed in that country. The aim of AVS Chile
is to provide support for this development. Chile
currently lacks an institutional research sector like
the ones we are familiar with in Europe. Therefore, we
want to establish a corresponding organization that
will concentrate on the needs of the salmon industry
in Chile and manage all research and development
activities in cooperation with the industry.

Which aspects of salmon farming does AVS Chile
focus on?
AVS Chile concentrates on three main areas of research
and development which to a great extent
reflect the profiles of the three founding companies:
a) technology, b) fish nutrition and fish feed
and c) fish health and welfare.
How do the prerequisites/conditions for salmon
farming differ in Norway and Chile?
Chile offers excellent natural conditions for salmon
farming. yes, in Norway we like to say that we have
the best possible coastline in the world for farming
salmon. But I personally believe that Chile does us
one better. The country also scores points with its
sea water temperature profile. On the other hand,
one of the challenges it faces is the lack of an appropriate
infrastructure in large parts of regions XI and
XII, which makes it more difficult and more expensive
to operate salmon farms there. The industry in
both Norway and Chile have a number of problems to
solve if they want to continue to grow. But in general,
I believe that the political climate in both countries is
conducive to the growth of salmon farming.
Which changes as the result of mechanization of
salmon farming have had the greatest impact?
It is difficult to pick out specific changes because
there have been so many. But one really important
improvement was the development of automatic
feeding, which was first implemented by means
of air-pressure-based feeding systems and is now
carried out from floating pontoons, or “pontóns”.
Automatic feeding enables industrial production in
large-scale facilities and also replaces the dangerous
work involving large quantities of heavy feed.
What issues is the science community currently
addressing? How can the processes be optimized
in a way that ensures yield, salmon quality, health
and welfare of the fish and careful management of
natural resources?
There is, for example, an urgent need to reduce the
number of salmon that escape from the cages. This
is an ecological issue that is of concern to the public
and the authorities – especially where farmed
salmon could mix with wild salmon stocks. This is
not the case in Chile, but escaped fish nevertheless
have a negative impact on the salmon farmers’
net profit. Another key objective is to reduce the
outbreak of diseases and the number of fish lost in
general between the time they are transferred to
the saltwater cages and their harvest. This explicitly
includes combating sea lice (Caligus), which are
parasites and disease carriers – this benefits both
the environment and the salmon industry. luckily,
almost all ecological and other improvements also
have a positive impact on the companies’ net profits.
There is no contradiction between solving these
problems and increasing profitability.
And finally, a look to the future. What is your personal
assessment of the potential of Chilean aquaculture
– and where do you see its greatest challenges?
In my opinion, Chile’s prospects are excellent.
The country has exceptional natural conditions for
salmon farming and people with a high level of expertise
in this area. One prerequisite for success is,
however, that the Chilean industry carry out their
good intentions and make full use of the prevention
and control instruments that have been developed
for avoiding new risks of disease. If we can succeed
in actually conducting research and development
activities that involve Chile in the country
itself, then there is nothing to prevent organic and
profitable growth.
why salmon from patagonia
has such a high level of quality
■ A stable climate and the perfect amount
of light enable healthy growth
■ Clear, fast-flowing water with a favorable
temperature offers optimum living
conditions
why salmon from Ventisqueros
has such a high level of quality
■ Health management, biosecurity and
sanitary conditions comply with the
highest international standards
■ High-quality fish feed results in firm,
non-oily flesh
INTErvIEw I 2011
■ Continuous screening and testing at all
stages of production
■ The high demands made by wholesale
customers result in more stringent
internal quality management
At a glance ...
25

26
types
of salmon and their
characteristics
Atlantic salmon
■ slim, powerful body
■ grey-green on the dorsal side,
white on the ventral side
■ silvery sides with black spots and
covered with numerous small scales
■ grows to a length of 1.5 meters and a
weight of up to 30 kilograms in the wild
■ popular and versatile edible fish
■ average harvest weight in Chilean
aquaculture: 4.5 kilograms
■ harvest time: January to December
Atlantic salmon (Salmo salar), Pacific salmon
(Oncorhynchus kisutch) and salmon
trout (Oncorhynchus mykiss) all belong
to the salmon (Salmonidae) family. All
three typically have an adipose fin between
the dorsal fin and the tail. Salmon have a
small head with a pointy snout.
Pacific salmon (Coho)
■ relatively large natural habitat from the Alaskan
coast to California
■ black spots on the upper lobe of the tail,
with a blue-black gum line in the lower jaw
■ weighs up to five kilograms in the wild
■ changes color from bright silver to reddish
pink during its migration to the sea
■ gourmet fish with firm flesh – well suited to
frying, poaching, smoking and pickling
■ average harvest weight in Chilean aquaculture:
three kilograms
■ harvest time: September to February
lifecycle
Salmon prefer temperate to arctic waters near
coastlines in the northern hemisphere. They spend
their growth phase in the sea, migrating back to the
rivers in which they hatched to spawn.
At the end of their spawning migration, the female
lays its eggs and the male fertilizes them. As migration
and spawning are exhausting for the fish, and they
often do not eat during their travels, the majority of
salmon die of exhaustion or, weakened by exhaustion,
disease – either before they ever reach their
spawning ground or on their way back to the open
sea.

Salmon (rainbow) trout
■ natural habitat in rivers and lakes, prefers clear, fast-flowing mountain streams
■ originally comes from North America, native to Europe since the 19th century
■ elongated body, somewhat flat on the sides with a short head
■ pink-colored stripe along its side with a blue or olive-green flush on their backs and a
silver-white shimmer on their bellies, giving it the name “rainbow trout”
■ body, tail, adipose and dorsal fins are speckled with numerous little black spots
■ does not absolutely require saltwater but tolerates it
■ firm flesh, particularly suited to frying, steaming or smoking
■ average harvest weight in Chilean aquaculture: three kilograms
■ harvest time: January to December, but primarily September to April
Description
Aquaculture
Since wild salmon stocks have dwindled due to
overfishing and cannot come close to meeting demand,
salmon farming is growing in importance
worldwide. In aquaculture, the eggs from the female
are fertilized in freshwater and then kept at an
even temperature. The yolk sack larvae, as they are
called, hatch from the fertilized eggs. The young
fish are moved repeatedly to larger tanks or cages
during their freshwater development before they
are mature enough, after one year at the latest, to
tolerate the salt content of sea water. Once in the
sea, they develop into adult fish during a further 15
to 18-month period. Thanks to constant ideal water
temperatures, which enable the fish to grow relatively
quickly, Chilean salmon can be harvested all
year round.
Nutritional importance
DESCrIPTIoN I 2011
Within the context of a healthy diet, the pink to orangered
meat of the salmon is experiencing a real boom.
This is due in particular to its high content of polyunsaturated
omega 3 fatty acids. These are known
to have beneficial health effects, particularly a preventative
effect on diseases of the coronary vascular
system. In addition, salmon contains high levels of
vitamin D, the vitamins B6 and B12, as well as niacin
and folic acid. It also contains various minerals, notably
potassium and iodine. Salmon is considered
to be an ideal food for fitness and weight reduction,
and it plays a large role in many diets and nutrition
plans. Not least because salmon is particularly versatile:
it can be eaten raw, marinated, steamed, fried,
grilled, poached or smoked.
27

28
European
Union
3.2 %
latin
america
15.6 %
Others
18.1 %
Chilean
salmon exports
in 2011
according to market
(Source: TechnoPress)
usa
17.8 %
Venezuela
Value: + 146.0 %
Volume: + 100.1 %
Japan
45.3 %
new markets –
new opportunities
the world is changing and with it the demand for salmon
The reasons for this development are many. One
thing is clear, however: economic, political, sociocultural
and demographic conditions all over the
world are changing – and with them, lifestyles and
eating habits. And so, in many countries today, part
of this newly acquired wealth goes, for example,
into buying food that is not only expensive but also
more prestigious and with a high nutritional value.
Food such as salmon, which has always been regarded
as a quality fish and enjoys a preeminent
position in modern nutrition.
netherlands
Value: + 83.7 %
Volume: + 87.4 %
Highest
growth rates
in export markets 2011
(compared with 2010)
“Panta rhei” – “everything flows”. That is how the Greek philosopher Heraclitus described
the dynamic changes characterizing the world he knew about 2,500 years ago. This aphorism
has particular significance as far as the modern salmon industry is concerned. It is not
just salmon that feel most at home in fast flowing waters, the markets for salmon and
salmon products are also in a “state of flow”. Until recently, only a comparatively insignificant
amount of the salmon produced in Chile “flowed” to countries other than Japan
and the USA, but of late an increasing number of other countries are coming into play
as customers. Some with a potential and market volume that is almost impossible to
predict.
Dual leadership of the salmon-consuming nations
Chile traditionally produces salmon first and foremost
for two mega-markets: Japan and the USA. With
a population of approximately 127 million people,
Japan is a nation of fish-lovers and, as the cradle
of sushi and sashimi & co., has a long history of
salmon consumption. The USA, on the other hand,
has managed to position itself as the second major
export market for Chilean salmon solely on the basis
of sheer size and population, which is in excess of
Germany
Value: + 90.1 %
Volume: + 47.9 %

france
Value: + 51.6 %
Volume: + 42.8 %
thailand
Value: + 82.4 %
Volume: + 59.1 %
China
Value: + 85.5 %
Volume: + 66.1 %
Singapore
Value: + 61.4 %
Volume: + 45.5 %
312 million people. It is not likely that these top
rankings will change any time in the near future.
According to the latest export statistics (InfoTrade),
Japan’s market for salmon grew 36.8 percent in
value in 2011 and now accounts for the lion’s share
of salmon exports from Chile, with 42.5% of traded
value and a staggering 45.3 percent of traded volume.
The value of USA imports increased by 57.1 percent
compared with the previous year and secured
a market share of approximately 24.1 percent of
traded value and 17.8 percent of traded volume of
the salmon produced in Chile.
latin America is booming, Europe is on the upswing
Developments among the lower-ranking countries
are even more interesting. Brazil is already number
three in Chile’s export market ranking. Because
lifestyles and the economy along the Copacabana
are booming, an increasing number of Brazilians are
eating salmon – and salmon from Chile naturally
does not have all that far to travel. Demand in the
nearby country has been growing steadily in recent
years, and in 2011, Brazil accounted for 9.6 percent
of Chile’s salmon exports. Other latin American
countries, above all Mexico and Venezuela, have
mArkET DEvELoPmENT I 2011
also seen development of the relevant markets.
Venezuela, in particular, recently catapulted to
number 13 in the ranking of leading import nations
for Chilean salmon with a jump in traded value of
146.0 percent. russia, Ukraine, France and Germany
have also seen considerable increases in
growth, despite the fact that salmon from Norway
still holds a dominant position in Europe and the
neighboring parts of Asia.
Asia comes on strong
South Korea
Value: + 236.5 %
Volume: + 186.5 %
taiwan
Value: + 42.8 %
Volume: + 63.7 %
Vietnam
Value: + 159.7 %
Volume: + 139.3 %
What is currently happening in large parts of
Asia, however, is particularly exciting. The tide of
change is probably at its strongest there. And not
just among the Asian giants. While the eyes of
the world are all too often focused only on China
– which with 1.4 billion people is also a growing
import market for Chilean salmon – completely
different Asian countries are ahead by a nose as
far as current developments are concerned. These
include countries such as Thailand, South Korea,
Vietnam, Taiwan and Singapore. These so-called
“tiger” countries are undergoing rapid change –
and these changes bring fresh impetus to and have
an impact on the entire global economy.
29

30
excursus
Sushi tastes
wonderful – with
salmon from Chile
Japans production specifications
and Ventisqueros’ response
The Japanese market has played a special
role for Productos del Mar Ventisqueros S.A.
ever since the company was founded. The
reason for this is that Japan traditionally
eats a large amount of salmon and salmon
trout. But the Japanese are reputed for
having particularly high quality standards
and, to this day, require salmon products
with special characteristics for the production
of their Japanese specialties. In
Chile, they found what they were looking
for. And at Ventisqueros they found partners
who were willing respond flexibly to
their needs.
The demands of Japan’s wholesale customers were
lent weight in the beginning by the presence of their
personnel on site. Up until just a few years ago, for
example, a representative of Mitsubishi, a wholesale
client, was always on site at the smoking plant at
río Negro to ensure that special production specifications
– such as a delicate smoked flavor, deep
red color, fine texture and low salt content – were met.
In the meantime, this monitoring of production has
given way to well-deserved trust. On their regular
visits to the production plants at Ventisqueros, wholesale
customers are now often accompanied by their
own customers, to whom the current or upcoming
production is to be sold. This guarantees that the
products really do meet the requirements of the
customer.

trust is good, validation is better
The wholesale customers attach particular importance
to the uniform quality of the packaged fish,
the ability of the packaging to preserve the quality of
the product and strict adherence to the defined
formulas. Complex mechanisms are in place to ensure
that these high demands can be met on a longterm
basis. For example, Ventisqueros notifies
customers of any process change so that they can
confirm every modification. This includes not just
the sequence of the individual production steps
but also the use of new machines or changes in the
product workflow. When new products are developed,
Ventisqueros supplies customers with samples, which
they evaluate and validate before serial production
begins.
mArkET DEvELoPmENT BLINDTEXT I 2011
Chilean salmon exports in
2011(according to species)
Figures do not include King Salmon: 0.2%
Atlantic salmon
Value: 41.3 %
Volume: 36.8 %
Pacific salmon
Value: 22.1 %
Volume: 29.2 %
Salmon trout
Value: 36.4 %
Volume: 33.8 %
respecting different cultures
Source: TechnoPress
For Europeans and Americans, Japanese perfectionism
is hard to understand. It has to be taken into
consideration, however, that Japanese eating habits
are founded on a thousand-year-old culture and cooking
tradition that has remained virtually unchanged
despite all modern influences. This goes hand in hand
with clear values and an uncompromising attitude
to quality and meticulous production methods as
well product appearance and conformity. Treating
this attitude with respect has paid off for the producers.
In 2011, Ventisqueros was the top Chilean
exporter of smoked salmon trout, not least thanks
to the good Japanese-Chilean business relationship
it maintains.
31

32
the world is growing – and it is hungry!
Salmon is the protein provider of the future
At the beginning of 2012, the world population topped the seven billion mark. What might
be just a figure for most people – even if an irrationally high one – poses a very serious
problem for the planet. It means seven billion mouths that need to be fed each and every
day. Therefore demographers, politicians and nutrition scientists are giving an increasingly
amount of thought to which foods would be most suitable for feeding us in the future. And
which foods can be produced on a large scale while still conserving resources. We also
know that we only eat what we like – and what is good for us. That is why salmon is a recurring
theme in this discussion.
While uninhibited meat consumption was a sign of
prosperity for a long time, it is now becoming increasingly
unpopular in western civilizations. In the
face of widespread health problems resulting from
unhealthy diets and obesity, many people not only
want to eat a healthier, low-fat diet but must. And
thus meat is being replaced by a foodstuff that not
only provides high-quality protein but which also
fulfills contemporary dietary ideals: fish. Its tender
flesh is low in fat and rich in protein, and it is also
particularly rich in a special type of polyunsaturated
fatty acids called Omega-3 fatty acids. They are
essential for numerous metabolic processes, but
they cannot be produced by the human body and
therefore have to be supplied by food.
Salmon is particularly rich in these heart-healthy
fatty acids and it is a culinary all-rounder. It can be
steamed, sautéed, grilled, smoked, marinated or
simply enjoyed as salmon tartar and can be combined
with any number of other foodstuffs to create
countless new culinary delights.
Fish instead of meat
Healthy and versatile as well. It is therefore no wonder
that, when faced with the choice between meat and
fish, more and more people are coming down in favor
of fish. And statistics bears this out. According to
figures from the Food and Agriculture Organization
of the United Nations (FAO), global per capita consumption
of fish and beef was about equal in 1967
– standing at about 10.4 kilograms per year. Since
then, fish has steadily been gaining ground and now
stands at 16.7 kilograms, while beef has fallen to below
10 kilograms. In particular in the USA, a country renowned
for its juicy steaks, beef consumption was
subject to a dramatic drop of 21 percent between
1980 and 2008, according to figures issued by the
U.S. Department of Commerce, National Marine
Fisheries Service. Pork has also become less popular
among consumers, with consumption falling
14 percent. The only foodstuff that exhibited stronger
growth rates than fish (increase of 42 percent)
was the skyrocketing demand for poultry (increase
of 77 percent).

mArkET DEvELoPmENT I 2011
Salmon – an efficient converter of feed
However, getting back to the main point, namely
the growing world population: the increase in fish
consumption and the growing demand for salmon
are not just the result of a larger world population,
it also appears to be a realistic solution to the world
food problem. This is because salmon is a very efficient
foodstuff, even, and in particular, when it is
produced in aquaculture. According to calculations
from the specialist publishing house Fishfarming-
Xperts, only 1.1 kilograms of fish feed are required
to produce one kilogram of farmed salmon. And the
industry is working hard toward optimizing this ratio
and minimizing the amount of forage fish needed.
In this respect, farmed salmon outperforms wild
salmon by far. Wild salmon eat about 10 kilograms
of wild fish before adding a single kilogram of weight.
This calculation invalidates the argument that aquaculture
farms are putting even greater pressure on
already overfished stocks of wild fish worldwide.
Economically and ecologically at an advantage
Salmon also comes out on top when compared with
other sources of animal protein. The modern food
industry can today produce about 65 kilograms of
pure salmon fillet from 100 kilograms of feed, but
only 20 kilograms of chicken and just 13 kilograms
of pork. And as far as animal protein is concerned,
there are other issues to be considered. Topics of
regular discussion include the displacement of fallow
land, forests and other regions as a result of the need
for feed crops, genetically modified feed components
and the emission of CO 2 and methane gas
associated with livestock farming. Therefore sustainable
aquaculture that is in harmony with the natural
resources can, above all, make a meaningful economic
and ecological contribution to global food
supplies.
No alternative to farmed salmon
Is there an alternative to aquaculture? At the moment
there does not seem to be. The demand is there, the
advantages are obvious – and it is inconceivable
that wild fish stocks could satisfy growing demand.
In its World Fisheries report 2010, the FAO warned
that a third of all fishing grounds worldwide are already
overfished and estimated that in just a few
years, aquaculture would provide more fish for human
consumption than wild fish stocks. According
to the OECD-FAO Agricultural Outlook 2011-2020,
this point could be reached as early as 2015 with a
ratio of 51 percent to 49 percent. In the case of
salmon, this radical change has long since become
reality. In 2011, approximately 67 percent of salmon
worldwide came from aquaculture. According to
estimates in a report from the investment bank DnB
NOr Markets, global consumption of Atlantic salmon
is set to increase by a further 13 percent in 2012.
Current estimates in the Kontali Monthly Salmon
report even went so far as to forecast a record year
for salmon aquaculture worldwide in 2012.
33

34
Bound-
less
seafood
why Chile
can satisfy
the growing
appetite
for salmon
Chile is catching up
and has the greatest
potential for growth
of all other countries
international ranking of
salmon producers (2011)
■ norway: 57 %
■ chile: 20 %
■ scotland: 7 %
■ canada: 5 %
■ others: 10 %
Source: Kontali report 2012
Two thirds of current salmon production comes from
aquaculture. Atlantic salmon takes the lead, followed
by salmon trout and Coho. The volume of wild salmon
caught fluctuates from year to year and is hard to estimate
– the volume of farmed salmon, on the other
hand, when reared in stable sanitary conditions, is
growing steadily. Therefore, when emerging markets
start calling for more salmon, the only logical conclusion
is to expand the existing aquaculture industry.
And this is where Chile comes into play.
The South American country has already regained its place as the
second largest producer of Salmo salar after losing it to Scotland in
2010. Almost the entire production of farmed Pacific salmon worldwide
already comes from Patagonia. And according to estimates
in the Norwegian Kontali Monthly Salmon report, Chile is also way
ahead with regard to salmon, or rainbow, trout. According report,
Chile is also way ahead with regard to salmon, or rainbow, trout.
According to the report, Chile supplied approximately 64 percent
of the global volume of salmon trout in 2011 – way ahead of Norway
with just 17 percent. The trend clearly indicates that a lot of
the larger salmon producing countries are gradually reaching their
maximum production capacity. If the infectious diseases of the past
have made one thing clear, it is that aquaculture requires controlled
and restricted growth in clear proportion to the size of the waters
involved, otherwise it will hinder its own progress. And the natural
environment does not always allow for the farms to expand in size.
A sea full of potential
This, however, does not apply to Chile. Here, the area in western
Patagonia currently used for fish farming encompasses two of three
potential regions: regions X (los lagos) and XI (Aisén). That corresponds
to a utilization of production capacity of approximately
40–50 percent. If the southernmost, extremely rugged and fjord-like

egion XII (Magallanes and Antártica Chilena) is
used to full capacity for aquaculture, Chile’s overall
salmon production could reach somewhat over one
million tons a year – which is approximately equal to
Norway’s maximum production capacity. But while
Norway got very close to reaching its limit in 2011,
Chile, with an utilized volume in 2011 in excess of
578,000 tons – comprising 221,000 tons of Atlantic
salmon, 153,500 tons of Pacific salmon and
203,600 tons of salmon trout – still has a potential
capacity of nearly 100 percent of its current production
capacity (source: Kontali report). The rapid
comeback of the Chilean salmon industry surprised
even insiders. Particular focus is placed on
the strong growth exhibited by Pacific salmon and
salmon trout, which in 2011 was up by approximately
31 percent on the export value of the previous
year.
Unbeatable in terms of climate, location, geology
However, Chile also boasts a number of other
advantages that support the healthy and organic
expansion of its salmon industry. Favored among
ComPETITIoN I 2011
other things by a moderate climate, it offers almost
ideal conditions for salmon farming. The Andes
supply western Patagonia with an almost unlimited
supply of pure spring water. The temperate seawater
has an ideal salt content. And the rugged coastline
provides a large number of protected coves, which
are particularly well suited to rearing fish. Even the
amount and quality of the light offer salmon excellent
conditions in which to live and grow. Taken together,
all these factors allow salmon to be harvested
year round. The coastal regions also see little shipping
traffic, something that promotes a high level of
biosecurity. Chile’s position on the map is also a
good starting point for delivering to many strong
markets. The gateways to the northern and northwestern
sea routes and thus to countries like Japan,
Brazil and the USA lie right on its doorstep.
Structural competitive advantages
These natural conditions also affect the salmon industry
in Chile in other ways. The production centers
in the region used for salmon farming so far, for
example, are located in a geographical area approximately
300 kilometers long due to the specific
coastal formation. This concentration and compact
use of space goes hand in hand with savings in
terms of cost and time and encourages the effective
expansion of the salmon industry. Even if the
concentration has to be relativized to a certain extent
by future exploitation of region XII, it still offers
lasting advantages. Norway’s salmon industry, in
comparison, extends along a shoreline more than
1,700 kilometers in length. The short distances in
Chile are advantageous for the provision of fish
feed and for the transport of the equipment needed
in the plants. The relatively low cost of labor and
free trade agreements with various countries, including
Brazil, complete the picture.
35

U4
Ventisqueros
was added to the portfolio of
the schörg huber corporate
group in the summer of 2011.
As a fourth and extremely promising business division,
Seafood neatly complements the other areas of business in
which the Munich-based group is involved. There were good
reasons for the acquisition of the Chilean salmon farming
company. Ventisqueros has been growing steadily for more
than 20 years. And time is working in favor of salmon – the delicious
and healthy source of protein has been gaining ground
worldwide for years. And the further outlook? Bright and rosy,
of course.
Published by
Schörghuber Stiftung & Co. Holding KG · Communications & Marketing
Denninger Straße 165 · D-81925 München
Phone +49 89 9238-543 · Fax +49 89 9238-603
info@sug-munich.com · www.sug-munich.com

1. Overview of the company and the group
1.1 Organization
Group Management Report I 2011
Group Management
Report 2011
Schörghuber Stiftung & Co. Holding KG, Munich
Schörghuber Stiftung & Co. Holding KG is the main holding company of the Schörghuber Corporate Group. In its
capacity as a strategic financial holding company, it manages the group’s four business divisions: Construction & Real
Estate, Beverages, Hotels and, since 1 July 2011, Seafood. The former Aircraft Leasing division ceased operating as a
strategic business unit in 2010. In the course of the 2011 business year, 11 of the 15 aircraft available for sale were sold
off, which was considerably more than expected. For this reason, it was decided in mid 2011 to abandon the Aircraft
Leasing division and disclose it on the balance sheet as a discontinued operation in accordance with IFRS 5. In
accordance with IFRS 5, prior-year figures (2010) have been adjusted for comparison purposes in the consolidated
income statement.
Although the organizational structure of Schörghuber Stiftung & Co. Holding KG corresponds largely to that of a joint
stock corporation, it does include elements of Swiss company law. The company has a foundation board comprising at least
six members; its rights and obligations are comparable with those of the supervisory board of a joint stock corporation.
The foundation board is chaired by Alexandra Schörghuber, the representative of the owning family. The company’s
executive board comprises at least two members. It currently has four members. The members of the executive board
are Dr. Klaus N. Naeve (chairman) responsible for Finances and the Hotels and Seafood divisions, Dr. Jürgen Büllesbach,
responsible for the Construction & Real Estate division and CEO of Bayerische Hausbau GmbH & Co. KG, Roland
Tobias, responsible for the Beverages division and CEO of Brau Holding International GmbH & Co. KGaA, and
Alexandra Schörghuber.
1.2 Company structure
Bayerische Hausbau GmbH & Co. KG, the holding company of the Construction & Real Estate division, is structured
as an operationally active parent company. The company is directly responsible for project development business.
Bayerische Hausbau Projektentwicklung GmbH, formerly in charge of project development, will now merely wind
up the projects already launched. The whole property management operation and the management of condominiums
33

34
is bundled under the roof of Bayerische Hausbau Immobilien Management GmbH. Bayerische Hausbau Immobilien
GmbH & Co. KG is responsible for managing the lion’s share of the real estate property portfolio, while the prefabricated
homes segment remains in the hands of Hanse Haus GmbH. Bayerische Hausbau GmbH & Co. KG is fully
consolidated.
As a holding company, Brau Holding International GmbH & Co. KGaA manages the Beverages division. The holding
comprises the subgroups Paulaner Brauerei GmbH & Co. KG (50 % stake), Kulmbacher Brauerei AG (63 %), and what
is known as the Südwest Group consisting of Fürstlich Fürstenbergische Brauerei GmbH & Co. KG and Privatbrauerei
Hoepfner GmbH (100 %). The sale of Paulaner Brauerei GmbH & Co. KG’s stake in the beverage wholesaler Hubauer
went ahead as planned in the year under review. As before, Brau Holding International GmbH & Co. KGaA, which is
run as a joint venture with our partner Heineken International B.V., is consolidated at equity.
In the Hotels division, the German hotels bundled under the roof of Arabella Hospitality GmbH & Co. KG in the previous
year passed to Arabella Hospitality SE by way of accrual. Otherwise, the structure of Arabella Hospitality SE remained
unchanged over the previous year. As the company is wholly owned by Schörghuber Stiftung & Co. Holding KG, it is
fully consolidated.
Since 1 July 2011, the Seafood division has been incorporated in the Schörghuber Corporate Group and its figures
consolidated in those of the Inversiones Stefal SpA (Stefal) financial holding. The subgroup is involved mainly in the
production and processing of Atlantic and Pacific salmon, as well as salmon trout. The operations side of business is
run by Productos del Mar Ventisqueros S.A. (Ventisqueros).
The wholly-owned subsidiary, Bavaria International Aircraft Leasing GmbH & Co. KG, is assigned to the financial
department and has been disclosed as a discontinued operation since the 2011 business year.
2. Summary of the business year
2.1 Macroeconomic trends
The development of the economy as a whole in 2011 was significantly influenced by a series of extraordinary events.
In the first half of the year, the nuclear and natural disasters in Japan led to serious problems with supply chains and,
in turn, to a rise in fuel prices followed by a decision by the German government to rethink its nuclear energy policies.
The second half of the year was marked by what has become known as the European sovereign debt crisis fuelled first
and foremost by the problems afflicting Greece. Despite this backdrop, the German economy remained surprisingly
stable.
After a 3.6 % rise in the GDP in the previous year, Germany actually grew at a rate of 3.0 % in 2011 and once again
proved to be a key driving force behind the European economy. By contrast, average GDP growth in the industrialized
countries was just 1.3 %, with the USA and the eurozone countries producing comparable growth rates of 1.7 % and
1.5 % respectively. Whereas, in the eurozone, Finland and Austria grew at a similar rate to Germany (both 2.5 %), the
GDPs of Greece and Portugal fell by 6 % and 1.3 % respectively. As an export nation, Germany profited in particular
from continuing stable growth in the emerging countries (average, 6 %), with the Asian nations boasting especially
dynamic growth of, on average, 7.8 %. In 2011, export volumes rose by 8.2 % after the 14.2 % increase of the previous
year.
Germany’s economic growth was reflected in an unemployment rate that sank to 6.7 % by the end of 2011 – with an
absolute value of 2.98 million unemployed, this was the lowest figure for 20 years. While consumer prices rose by
2.5 % compared with the previous year (adjusted for the rise in energy costs, the inflation rate was just 1.4 %), average
earnings increased by 2.7 %.

Group Management Report I 2011
Mindful especially of the eurozone’s “problem countries”, the European Central Bank adhered to its low interest rates
and expansive monetary policy.
2.2 Business divisions
2.2.1 Construction & Real Estate
2.2.1.1 Organization and structure
The Construction & Real Estate division is consolidated in the Bayerische Hausbau GmbH & Co. KG subgroup. It
comprises the following areas of business: project development, which is managed directly by Bayerische Hausbau
GmbH & Co. KG, real estate with the principal company Bayerische Hausbau Immobilien GmbH & Co. KG, property
management, which is bundled under the roof of Bayerische Hausbau Immobilien Management GmbH, and prefabricated
homes with Hanse Haus GmbH.
2.2.1.2 Industry trends
The relevant economic indices for the real estate industry continue to point to high-level growth, although the figures
did tend downward slightly at the end of the year, a reflection of the uncertainty generated by current recessionary fears
and historically low interest rates.
At EUR 23.5 billion, the volume of transactions in the German real estate market was 22 % up on the previous year,
with investments in commercial properties dominating the scene. Due to high demand for German core products, selling
prices continued on their upward trend. These positive developments also applied to the market for leased office space.
The city of Munich, in particular, continued to profit from this trend, total rental space of around 860,000 m 2 representing
a rise of 47 %. At the same time, the vacancy rate in Munich fell to 7.1 % (previous year: 7.9 %).
Private-sector housing construction continues to benefit from the low cost of financing on the one hand, and from current
uncertainties surrounding alternative forms of capital investment on the other. The demand thus triggered is focused
primarily on the construction of apartment blocks in the main metropolitan areas, notably Hamburg and Munich. While
the number of building permits for condominiums granted in the third quarter of 2011 had increased by 35 % by the end
of the year, a rise of just 3 % was recorded for single- and two-family residences. The share of prefabricated homes
amounted to around 15 %.
2.2.1.3. Development of business
2.2.1.3.1 Real estate
The investment volume in real estate totaled EUR 44.1 million (previous year: EUR 36.9 million) in the year under
review. Residual construction costs from the “THE m.pire” object accounted for EUR 6.2 million of this sum (previous
year: EUR 24.7 million). Project development activities for the major “Bikini Berlin” and “Joseph Pschorr Haus” projects
generated costs of EUR 15.6 million and EUR 17.8 million respectively. In addition, EUR 13.4 million (previous year:
EUR 20.2 million) was spent on ongoing maintenance and costs in connection with tenancy changes.
In 2011, the rental volume for office and retail space amounted to 70,000 m 2 (previous year : 33,700 m 2 ) for new tenancies
and around 25,000 m 2 (previous year: 26,000 m 2 ) for renewals. Of the new tenancies, “THE m.pire” complex, which is
now fully leased, accounted for 36,100 m 2 , while the “Joseph Pschorr Haus” accounted for 19,500 m 2 .
35

36
In the rental market, floor space totaling some 10,000 m 2 – principally in Munich – was newly leased. In the case of
expiring tenancies, rental agreements for almost 11,000 m 2 of living space were renewed, in some cases ahead of the
expiry date. Including rental agreements already signed, the vacancy rate of our real estate portfolio across all main
types of property currently stands at 11.8 % (previous year: 14 %).
The sale of existing property in the context of portfolio management generated revenues of around EUR 36 million
(previous year: EUR 73 million). In addition to the sale of the company headquarters “Denninger Strasse 165” in
Munich, a number of small properties were sold off for the purpose of portfolio adjustment, as was the case last year.
Bayerische Hausbau Immobilien Management GmbH, which manages both its own and third-party property, as well
as condominiums, successfully completed a certification process leading to the award of TÜV-approved property
manager.
2.2.1.3.2 Project development
Despite increasing prices, high demand for apartments in the center of Munich continues unabated. At EUR 96.5 million,
the volume of notarized transactions was again above the figure for the previous year (EUR 92.5 million). A total of
211 units (previous year: 241) were sold. At year end, the booking volume stood at 21.6 million.
Land in the value of EUR 13.8 million (previous year: EUR 70 million) was notarized for the development of residential
construction projects, although in the medium term, production levels can be maintained with the help of sites
purchased in previous years.
2.2.1.3.3 Construction of prefabricated homes
Despite the still difficult market environment, 2011 saw sales of prefabricated homes rise by 46 % to EUR 67.3 million
(previous year: EUR 46.1 million). A total of 287 homes (previous year: 244) were supplied. With new orders of EUR
93.0 million in total, the order on hand at the end of 2011 stood at EUR 89.0 million (previous year: EUR 77.8 million)
or 394 homes (previous year: 367 homes).
2.2.1.4 Earnings, assets, and financial position
The Construction & Real Estate division generated total revenues of EUR 263.1 million (previous year: EUR 392.9 million).
Of this amount, real estate accounted for EUR 154.5 million, while the sale of developer properties accounted for
EUR 28.1 million and prefabricated homes for EUR 63.0 million. Gross profit on sales amounted to EUR 94.4 million.
At EUR 108.4 million, the balance of other operating income and expenses was positive in the reporting year. This
includes an amount of EUR 109.1 million attributable to unrealized changes in the fair value of investment property.
All told, the Construction & Real Estate subgroup (Bayerische Hausbau GmbH & Co. KG) posted earnings of EUR
103.3 million (previous year: EUR 75.7 million) after tax. The cash flow from business operations in 2011 amounted
to EUR – 6.7 million.
The subgroup EBIT is calculated as the operating income plus the earnings of companies valued at equity. Adjusted for
the effects of fair-value measurement (EUR 109.1 million in total, previous year: EUR 29.9 million), the subgroup’s
EBIT amounted to EUR 65.7 million (previous year: EUR 102.8 million). The subgroup’s EBITDA stood at EUR 69.0
million (previous year: EUR 110.3 million).
Total assets on the balance sheet increased to EUR 2,425.2 million (+ 11 %). Non-current assets accounted for 89.2 %
of the total assets. By and large, this is property held for investment purposes. The equity ratio of the Construction &
Real Estate division is 42.4 %.

2.2.1.5 Forecast
Group Management Report I 2011
We predict stable growth for real estate business. Sales will be effected for strategic reasons only in the context
of portfolio optimization. On the basis of current forecasts for economic growth, in particular with regard to our
core operating region of Bavaria, we are predicting stable market growth (fair-value measurement) for our business
portfolio in 2012.
Due to cyclical developments, however, and since no projects are currently calculated using the “percentage of
completion” (PoC) method, revenues from project development are set to be much higher in 2012 than in the previous
year as the lion’s share of the “WelfenHöfe” apartment complex has already been transferred to the buyers. Due to
various projects coming to market in 2012, we expect the volume of notarized transactions to remain at its present high
level and this business line to deliver steady cash flows.
With regard to our prefabricated homes subsidiary, Hanse Haus, we expect the efficiency drive launched in previous
years to bear fruit not only in terms of sales but in earnings, too. All told, we expect the Construction & Real Estate
division to deliver a positive result in both 2012 and 2013.
2.2.2 Beverages
2.2.2.1 Organization and structure
In terms of company law, the Beverages division is consolidated in Brau Holding International GmbH & Co. KGaA.
50.1 % of the shares in this company are held by Schörghuber Stiftung & Co. Holding KG and 49.9 % by Heineken
International B.V. as part of a joint venture. Furthermore, Schörghuber Stiftung & Co. Holding KG indirectly holds
the other 50 % of Brau Holding International GmbH & Co. KGaA’s 50 % stake in Paulaner Brauerei GmbH & Co. KG.
Notwithstanding this majority holding, all key management decisions affecting the Beverages division are taken in
consultation with our joint-venture partner Heineken International B.V. For this reason, Brau Holding International
GmbH & Co. KGaA is carried at equity in the consolidated accounts of Schörghuber Stiftung & Co. Holding KG.
With its shareholdings in Paulaner Brauerei GmbH & Co. KG, Kulmbacher Brauerei AG, Fürstlich Fürstenbergische Brauerei
GmbH & Co. KG and Privatbrauerei Hoepfner GmbH (Südwest Group), Brau Holding International GmbH & Co. KGaA’s
locations are centered on the federal states of Bavaria, Baden-Württemberg, south-west Saxony and south-east Thuringia.
2.2.2.2 Industry trends
At around 98.2 million hL, total beer sales in Germany in 2011 were virtually the same as in the previous year. There
was, however, a significant 4.0 % increase in total beer exports, which contrasted with a 3.3 % decline in sales of
beer-based mixed beverages. The situation in the beverages industry continues to be determined by changing consumer
habits, demographic change, continuing weakness in the gastronomy sector and ongoing intense price and cutthroat
competition in the retail sector. More than 60 % of national pilsner beers are now sold at special-offer prices. The lower
raw materials costs in 2011 will provide only short-term relief, as prices are set to rise again markedly in 2012. The
pressure to consolidate, especially on beverage wholesalers, has increased still further.
2.2.2.3 Development of business
Domestic sales of home-manufactured beer by Brau Holding International GmbH & Co. KGaA fared slightly less
well than the market as a whole (– 1 %) and amounted to 4.421 million hL (previous year: 4.465 million hL) in 2011.
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This is mainly the result of the partial de-listing of Paulaner Brauerei by the Edeka Group. By contrast, foreign sales
increased by 8 % compared with the previous year to 922,000 hL (previous year: 853,000 hL). All told, we succeeded
in selling 5.343 million hL of home-manufactured beer (previous year: 5.319 million hL). Sales revenues including
home-manufactured alcohol-free beverages increased by 3 % to 6.133 million hL (previous year: 6.091 million hL). Of
this total, Paulaner Brauerei GmbH & Co. KG accounted for 2.987 million hL (previous year: 2.971 million hL), while
Kulmbacher Brauerei AG accounted for 2.527 million hL (previous year: 2.481 million hL) and Südwest Group for
630,000 hL (previous year: 650,000 hL).
With effect from 1 July 2011, the Paulaner Brewery Group sold its stake in Hubauer GmbH & Co. Getränke & Logistik
KG including all subsidiaries to Trinks Süd GmbH. On 1 July 2011, the Hubauer Group was deconsolidated with a
negative effect to the tune of EUR – 2.9 million on the result. In doing so, the Paulaner Brewery Group intends to focus
on its core business of brewing beer and marketing the product at home and abroad. And at the end of the year, the
Paulaner brewery took an important step towards maintaining the company’s competitive position in the years to come.
By deciding to relocate its production and logistic operations to the western outskirts of Munich (Langwied), the brewery
is paving the way to further successes in the future.
2.2.2.4 Earnings, assets, and financial position
Brau Holding International GmbH & Co. KGaA succeeded in increasing revenues in the 2011 business year by 2.1 %
from EUR 576.4 million to EUR 588.4 million. Of this total (all figures before consolidation), the Paulaner Brewery
Group accounted for EUR 279.6 million (previous year: EUR 274.8 million), while the Kulmbacher Group accounted
for EUR 212.0 million (previous year: EUR 208.8 million) and the Südwest Group for EUR 101.8 million (previous
year: EUR 98.1 million).
Adjusted for special effects arising from extraordinary write-downs, consolidated EBIT rose to EUR 37.2 million (previous
year: EUR 26.9 million). After adjustment, consolidated EBITDA amounted to EUR 80.1 million.
Brau Holding International GmbH & Co. KGaA generated a consolidated result before minority interests of EUR 13.4
million (previous year: EUR 12.7 million), cash flow from operating activities was EUR 77.0 million (previous year:
EUR 73.8 million), and cash flow from investments EUR – 33.0 million (previous year: EUR 23.3 million). At EUR
44.5 million, free cash flow was below the previous year’s level (EUR 48.7 million).
Total balance sheet assets fell by EUR 34.8 million to EUR 591.0 million in the year under review, largely due to the
sale of the Hubauer Group. As in 2010, non-current assets accounted for 65.4 % of total assets. The consolidated equity
ratio was 36.6 % (previous year: 33.9 %).
2.2.2.5 Forecast
With its sales focus on southern Germany, and regional brands and specialties such as wheat beer which still command
comparatively high prices, Brau Holding International GmbH & Co. KGaA is not affected by the fierce retail
price wars to the same extent as the national pilsner brands. Rising export volumes also tend to have a stabilizing
effect. The objective of Brau Holding International GmbH & Co. KGaA is, therefore, to further improve its position in
its home market of southern Germany, while expanding its leading position in the national and international wheatbeer
segment – this includes growing the subsegment of alcohol-free wheat beer. Export business has established
itself as a stable force and is becoming more dynamic all the time, a factor taken into consideration in the allocation
of the marketing budget. Brau Holding International GmbH & Co. KGaA will continue to exploit the growth potential
in what is generally a declining market by investing in its strong brands, supported by targeted investment in innovative
products and market-oriented packaging. Under the proviso that a policy of strict cost management and sound

Group Management Report I 2011
liquidity is adhered to, we expect the division’s results in 2012 and 2013 to be at least on a similar footing to the
previous year’s.
2.2.3 Hotels
2.2.3.1 Organization and structure
With effect from 31 August 2011, Arabella Hospitality Group GmbH & Co. KG, the central holding company of the
Hotels division, was merged into Arabella Hospitality SE. Arabella Hospitality SE operates all the group’s German
hotels, determines its strategic focus, and controls cash flows. It is also the sole shareholder of AHEISA SA, Spain
and, since 31 December 2011, of Arabella Hotelbetriebe AG, Switzerland. Sale of the two hotels of the subsidiary in
South Africa was completed and executed under civil law at the end of May 2011. With effect from 31 December 2011,
Arabella Hospitality SE acquired the minority interests in Arabella Hotelbetriebe AG, Switzerland.
On 17 August 2011, Arabella Hospitality SE and Schörghuber Stiftung & Co. Holding KG signed a five-year profit and
loss transfer agreement with retroactive effect from 1 January 2011.
With effect from 1 July 2011, the joint venture agreement with Starwood Hotels & Resorts Worldwide, Inc. was dissolved
and replaced by individual management contracts. Management of the hotel operations will now no longer be carried
out by the joint venture company, but directly by Starwood. The joint venture company ArabellaStarwood Hotels &
Resorts GmbH has been renamed ASH Hotels & Resorts GmbH and has gone into liquidation. In this context, 49 %
of the shares in ArabellaStarwood Hotelpool GmbH were purchased on 30 June 2011. The wholly-owned subsidiary
resulting from the acquisition was then merged into Arabella Hospitality SE.
2.2.3.2 Industry trends
Although the German hotel industry grew much more slowly in 2011 than in the same period of the previous year, this
growth was certainly perceptible across the board. RevPar (revenue per available room) increased by 4.2 % compared
with the previous year, while average occupancy and the average room price rose by 2.7 % and 1.4 % respectively. On
Mallorca, where we have three hotels, RevPar increased by 7.3 % and the average room price by 8.2 %. The restricted
availability of flights to and from the island in the off season is now having a negative impact, however. By contrast,
the Swiss hotel market continues to suffer from the strength of the Swiss franc, even after intervention by the country’s
central bank.
2.2.3.3 Development of business
At EUR 92.17, RevPar of the hotels operated by Arabella Hospitality SE was EUR 2.95 higher than in the previous
year. The average room price was EUR 135.30, and thus EUR 5.71 above the previous year’s value. As before,
Germany’s key performance indicators are among the lowest in Europe. Whereas at EUR 80.94, average RevPar in
Germany was just EUR 1.42 above the previous year’s level, our foreign hotels generated RevPar of EUR 166.22, an
increase of EUR 9.53 year on year. That said, average occupancies at home and abroad differed only slightly (68.5 %
for Germany, 66.6 % for our foreign hotels).
A cause for concern remains the GOP of 28.4 % for our hotels, which was down 0.1 % on the previous year. Above all,
leased hotels whose contracts are set to expire between 2016 and 2019, are burdening our operating result.
In 2011, the hotel Four Points by Sheraton Königshof Dresden, which belongs to the company, was sold off, and the
leasehold on the hotel Sheraton Seehof in Davos terminated. Phase 1 of the project to renovate the rooms in the Sheraton
39

40
Hannover Pelikan Hotel was completed on time. And the Sheraton Frankfurt Congress Hotel’s rooms and suites underwent
a facelift during daily operations.
Due to the delays in construction affecting the Elbphilharmonie concert hall in Hamburg, the hotel we are leasing at the location
which was originally due to open in 2010 and which will be operated under the Westin brand will now probably not open
its doors until the end of 2013. The new Sheraton Zürich Hotel is, however, on schedule and is also set to open in 2013.
2.2.3.4 Earnings, assets, and financial position
The subgroup reported revenues of EUR 216.6 million in 2011 (previous year: EUR 223.2 million). Earnings after
taxes (before minority interests and transfer of profits) stood at EUR + 3.7 million (previous year: EUR – 13.7 million).
This figure includes earnings from discontinued business activities in South Africa (sale of our business operation in
that country) amounting to EUR 12.9 million (previous year: EUR 2.6 million). Cash flow from operating activities
of EUR – 6.7 million (previous year: EUR 8.2 million) was disclosed. Operating cash flow less investments and disinvestments
amounted to EUR 61.1 million for the business year just concluded (previous year: EUR – 0.9 million). The
disinvestment mainly involved the sale of two hotels in South Africa and one hotel in Germany. The consolidated EBIT
amounted to EUR – 6.3 million (previous year: EUR – 13.4 million). The consolidated EBITDA amounted to EUR + 8.5
million (previous year: EUR + 3.1 million).
Total balance sheet assets at the end of the year stood at EUR 298.8 million (previous year: EUR 313.8 million). Noncurrent
assets accounted for EUR 175.6 million (previous year: EUR 189.2 million) of this sum. After transfer of the
net loss from the profit and loss transfer agreement, the equity ratio was 51.8 % (previous year: 32.3 %).
2.2.3.5 Forecast
The German hotel market is expecting only a small increase in revenues in 2012 compared with the previous business
year. While Munich looks set to profit from a major conference taking place in the city, Frankfurt is suffering from
the oversupply resulting from an extra 800 available rooms. A further luxury hotel is being built on the island of
Mallorca, too, in 2012. Bookings via online portals are set to increase still further and lead to a rise in both pricing
pressure and sales / marketing costs.
Against a backdrop of cautious optimism in the markets and the conclusion in 2011 of management contracts with
Starwood, the management is expecting moderate sales growth. That said, significant revenues are not expected to
materialize from the sale of land on Mallorca due to the ongoing real estate crisis there. The results from operative
business will be negative in both 2012 and 2013.
2.2.4 Seafood
2.2.4.1 Organization and structure
The Seafood division is consolidated in the Chilean financial holding, Inversiones Stefal SpA. Inversiones Stefal SpA
is the parent company of Productos del Mar Ventisqueros S. A., the operating company responsible for fish farming and
processing, of Alimentos Bahia Chincui S.A., the holder of licenses used by Ventisqueros, and of Inmobiliaria Aleste
Ltda, a former property developer that is now being wound up having sold off all its properties.
The sole active company, Productos del Mar Ventisqueros S.A., is managed according to Chilean law by a six-strong
management board comprising three German representatives of Schörghuber Stiftung & Co. Holding KG, two external
Chilean board members, and the company CEO.

2.2.4.2 Industry trends
Group Management Report I 2011
Worldwide production of farmed salmon increased by around 10 % in 2011 to approximately 2.1 million tons. This is
twice the volume of wild salmon. Chile accounted for a disproportionate share of the increase – the strongest for ten
years – with a 30 % increase in harvested volume to approximately 600,000 tons. Strong growth also affected prices,
with the cost of fresh, whole, gutted Atlantic salmon (Salmo salar) – the most heavily produced species – slumping by
36 % from December 2010 through December 2011 from USD 7.25 per kilo to USD 4.66. The Coho and trout species
of salmon were not hit as hard by the slump and actually increased in price slightly in 2011. But here too, prices fell
significantly towards the end of the year.
2.2.4.3 Development of business
Ventisqueros is currently proceeding with its plans to expand its production volume. Over the next two years, this
volume is set to increase from previously WFE 20,000 tons (WFE = whole fish equivalents) to WFE 40,000 tons. To
this end, the company will be making significant investments in both freshwater and saltwater farming. The company
is currently building a land-based freshwater farm (Chaqueihua II) – mainly for the farming of Salar salmon – with a
capacity of up to four million fish. A further land-based freshwater farm with capacity for one million fish at an existing
location was completed in the year under review. In addition, an egg-breeding station for the production of Coho salmon
is being planned. With an eye to expanding freshwater capacity, negotiations are currently underway with a major
competitor that has unused freshwater licenses. Successful conclusion of the negotiations is expected some time during
the first six months of 2012. The company presently has three land-based farms and two lake farms, as well as a total
of 21 saltwater licenses, not all of which can be put to economically feasible use. The company’s assets also include a
processing factory and a smokehouse.
The revenues disclosed in the consolidated financial statement of Schörghuber Stiftung & Co. Holding KG relate only to
the second half of 2011 and were earned solely by Ventisqueros. For this reason, the prior year figures are comparable only
to a limited extent. All told (in the whole of 2011), Ventisqueros produced WFE 19,228 tons of salmon, WFE 5,660 tons of
which were Coho salmon and WFE 13,568 tons salmon trout. This fell just short of the target volume. This was mainly the
result of lower water temperatures in 2011 compared with the long-term mean, which meant that the fish grew more slowly.
2.2.4.4 Earnings, assets, and financial position
The results for the current business year were affected by climatic factors (lower water temperatures producing slower
fish growth, especially for the Coho species of salmon) and falling prices. In the period from 1 July to 31 December
2011, the company’s earnings amounted to EUR 39.5 million and an operating result of EUR 2.2 million was disclosed.
Earnings before tax stood at EUR – 0.3 million. Cash flow from operating activities amounted to EUR – 18.6 million.
As expected, the growth strategy and resulting expansion in capacity saw total assets on the subgroup’s balance sheet
rise from EUR 150.6 million to EUR 180.8 million. EUR 7.0 million was invested in new breeding capacity and EUR
22.3 million in increasing inventories. The repayment of current bank loans and the payments on necessary investments
resulted in the company’s equity capital rising to EUR 89.1 million, which corresponds to an equity ratio of 48.5 %.
2.2.4.5 Forecast
Alongside price fluctuations on the sales side, the extremely volatile feed prices pose a particular risk. For this reason,
the company is currently negotiating long-term contracts with feed suppliers and these are due to be concluded shortly.
41

42
The search for additional breeding capacity to increase volume is one of Ventisqueros’ main priorities for 2012. Initial
success has already come in the form of a concession swapping agreement with a competitor, and the leasing of additional
freshwater and saltwater capacity. A significant increase in revenues along with ongoing improvements in the
results situation are anticipated both for the current business year and for 2013.
2.2.5 Aircraft Leasing
2.2.5.1 Development of business
The strategy to sell off the fleet of aircraft was implemented as planned. In the year under review, eleven aircraft were
sold, namely four Boeing 737-700s, three Boeing 717-200s, two Airbus A320s and two relatively new Boeing 737-800s
with existing leasing contracts. At year end, the fleet comprised five aircraft of the types Boeing 737-700 (2), Boeing
717-200 (2) and Challenger 604 (1). Apart from the Challenger, which is chartered, all the aircraft are leased.
2.2.5.2 Earnings, assets, and financial position
Owing to the decision to discontinue the Aircraft Leasing division, the division’s operating result and all its assets and
liabilities will be classified as “held for sale” in line with IFRS 5. As a result of the sale of the aircraft, assets fell to
EUR 56.4 million and liabilities to EUR 20.0 million, and these will be carried as assets / liabilities held for sale. All
existing liabilities to banks were reduced.
2.2.5.3 Forecast
The aircraft still in the fleet are leased at respectable rates, although the contracts for the two Boeing 737s are set to
expire in the middle of the year. Negotiations regarding the two Boeing 737s and the two Boeing 717s are currently
being held with interested parties. The management expects to be able to sell all four aircraft in the course of the 2012
business year. The liquid assets still in the company and the cash flow from the leasing business represent a solid
financial basis with which to wind up the company.
3. Earnings, assets, and financial position
3.1 Earnings situation
The prior-year figures for the Aircraft Leasing division, which was discontinued in the business year under review,
were adjusted to comply with IFRS 5 requirements and then carried under earnings from discontinued business activities.
Consolidated sales revenues fell from EUR 596.9 million in the previous year (adjustment of the figures for Aircraft
Leasing to comply with IFRS 5) to EUR 467.8 million in the year under review. The Construction & Real Estate division
accounted for EUR 263.1 million of this total, Hotels EUR 216.6 million and Seafood EUR 39.5 million (figures before
consolidation and after adjustment to IFRS 5).
Gross profit on sales fell accordingly from EUR 148.1 million to EUR 112.2 million, while distribution and administration
costs amounted to EUR 70.4 million (previous year: EUR 76.3 million). As in the previous year, the balance of
other operating income and expenses was positive, and stood at EUR 124.0 million (previous year: EUR 27.2 million).

Group Management Report I 2011
This item was influenced largely by the revaluation of investment property at fair value. The unrealized change in
market values amounted to EUR 120.3 million in the business year under review, after a change of EUR 28.5 million in
the previous year. In addition, the figures for “other operating income and other operating expenses” include exchange
rate fluctuations, the results of the sale of shares, as well as the results of the disposal of fixed assets and amortization
of goodwill and cash-generating units.
At EUR – 78.2 million, the financial result was down EUR 6.6 million compared with the previous year.
The consolidated result for the 2011 business year totaled EUR 104.4 million (previous year: EUR 59.8 million), of
which EUR 10.9 million (previous year: EUR 13.5 million) can be attributed to discontinued business activities.
The consolidated EBIT amounted to EUR 175.0 million (previous year: EUR 109.5 million). The consolidated EBITDA
amounted to EUR 91.7 million (previous year: EUR 120.0 million).
3.2 Financial situation
Cash flow from business operations amounted to EUR – 59.9 million in the 2011 business year, compared with EUR 121.7
million in the previous year. At the end of the period under review, cash and cash equivalents (cash funds) amounted to
EUR 290.5 million (previous year: EUR 215.2 million) and comprise funds to the tune of EUR 15.1 million (previous
year: EUR 0.0 million) from discontinued business activities.
3.3 Assets
Total balance-sheet assets increased by 6.7 % to EUR 3,039.8 million. Non-current assets accounted for 78.5 % of the
total assets (previous year: 83.7 %). The non-current assets of EUR 2,386.7 million (previous year: EUR 2,383.3 million)
mainly consist of fixed assets and property held for investment purposes. Inventories amount to 8.6 % (previous year:
4.1 %) of total balance-sheet assets. The equity ratio stood at 41.4 % (previous year: 41.8 %) of total balance-sheet
assets. Non-current liabilities made up 34.2 % (EUR 1,040.2 million) of the balance sheet, down from 36.5 % (EUR
1,039.6 million) in the previous year.
4. Events after the balance-sheet date
With economic effect from 22 February 2012, the shares in design hotels AG were sold to an external buyer at slightly
above book value.
No other events of particular significance occurred after the end of the business year.
5. Financial instruments and risk management
The Schörghuber Corporate Group operates in various sectors of industry and markets. The many opportunities this
provides are, however, inextricably linked to certain economic risks. Our aim is to avoid or mitigate these risks in
order to remove the potential for financial losses impacting on the group. At the same time, opportunities can arise as
a result of a change in general business conditions, and the company will attempt to exploit these new criteria in an
effort to bolster its position among the competition. Entrepreneurial risks are accepted only if they serve to enhance the
company’s value, and the potential consequences remain manageable. For this reason, risk management is an integral
component of group management. To this end, group-wide risk management systems spanning all the main subsidiaries
43

44
have been put in place that serve to identify, monitor and control risks. In addition, a reporting and early-warning system
is regularly updated, verified and adjusted to ensure that the information required by group management to identify
even decentralized risks in good time is always available.
Due to the nature of the business conducted by the individual divisions, the group is affected in different ways by the general
economic climate. Although fluctuations in the economy do influence the group’s earnings situation, its diversified
structure means that not all the divisions are affected at the same time and with the same intensity.
Central coordination and control of financial management by Schörghuber Corporate Finance GmbH aims to optimize
the financial structure of the group as a whole and of its individual companies. It includes the areas of corporate financing,
management of the risks inherent in interest rates, foreign currencies, liquidity and credit rating, and definition of
banking policies and bank management.
In the course of its business operations and on account of the financial instruments it uses, the group faces various kinds of
risk. These include market risks (pricing risks), and credit and liquidity risks. Financial instruments include financial assets
and liabilities, as well as contractual entitlements and liabilities relating to the exchange or transfer of financial assets.
Primary financial instruments on the assets side of the balance sheet include liquid assets, trade receivables and
financial investments, while on the liabilities side, financial instruments include liabilities to banks, trade payables and
other liabilities. Market risks affecting the group mainly concern the risks pertaining to fluctuations in interest rates
and foreign currency exchange rates. Where variable interest rates have been agreed for trade payables and bank loans,
there exists the possibility that interest rates will rise as well as fall, leading to higher interest payments and charges.
Changes to the market interest rate applicable to fixed-interest, primary financial instruments are recognized in profit
and loss only if the instruments are carried at fair value. Thus, all fixed-interest financial instruments carried at amortized
cost are not subject to interest rate risks within the meaning of IFRS 7. The pricing risks pertaining to the loans portfolio
are determined with the aid of a risk assessment system on the basis of current interest rates.
Various measures are taken to limit risk, such as separating trading, administration, accounts and control processes
in the organizational sense, and ongoing reporting of relevant events on the basis of market values and interest risks
within the framework of the risk management system. Furthermore, interest rate risks are to some extent limited by
hedging transactions. Based on an assessment of the risk, select derivative instruments are used as well.
The international focus of our business activities calls for service transactions and cash flows to be effected in foreign
currencies. This gives rise to a certain risk of loss because assets held in a foreign currency will lose value as the exchange
rate falls, while liabilities payable in a foreign currency become more expensive as the rate increases. Group business
in countries outside the eurozone is kept to a minimum and this has a corresponding effect on the currency risk. In
addition, we regularly evaluate our net exposure to the currency risk, the aim being to maintain a balance between
income and expenditure in any foreign currency and thus minimize the effect of fluctuations in exchange rates. Where
necessary, we use suitable derivative financial instruments to hedge currency risks.
Generally, however, derivative financial instruments are used exclusively for hedging purposes in the context of interest
rate and currency management, not for trading or speculation. To reduce the risk of counterparty default, we close transactions
with select banks only. With regard to interest rate risks, please refer to the information on interest payments and
the analysis of sensitivity to interest rate changes contained in Section II.B.20 “Financial instruments” of the Notes to the
consolidated financial statement. As the lion’s share of our business is transacted in eurozone countries, the exchange
rate risk is insignificant.
Credit risk relates to the potential for debtor default and any deterioration in credit worthiness (downgrading). The
group limits this risk by placing high demands on the solvency of its counterparties. Outstanding trade balances are
monitored continuously on a decentralized basis, while potential default risks are accounted for by individual and
generalized value adjustments. The maximum default risk relates to receivables and financial assets and corresponds
to the carrying amounts in the balance sheet of these instruments.

Group Management Report I 2011
As well as financial planning based on a horizon of several years, the group deploys a rolling system of liquidity
planning to ensure that cash flows are permanently aligned to outstanding payments in any given period. Furthermore,
prudent liquidity management ensures that the group has adequate credit lines at its disposal to meet unexpected payment
obligations at any time.
6. Forecast
Growth in Germany is expected to be much lower in 2012 than in the previous year, the estimates being + 0.5 % to
+ 1.5 %. In spite of the euro crisis and the weakening economies in the BRIC nations and in Asia, the economic climate
in Germany has remained surprisingly stable, although exports have declined somewhat.
With the ECB having frozen interest rates at an historically low level and having provided the banks with sufficient
liquidity, it is unlikely that we will see a rise in the cost of borrowing in the medium term. This may well give added
impetus to the boom in the market for residential property – principally, the construction of multi-floor residential
buildings (condominiums) in Germany’s key metropolitan areas. The city of Munich – traditionally leader of the pack
in terms of demand and prices – stands to profit most from this trend.
With the euro crisis unresolved and an accurate prediction of the enduring availability of suitable credit lines thus
impossible, securing adequate reserves of liquidity will remain top priority for the time being. Appropriate measures
have already been put in place.
All in all, as things currently stand, we are predicting a positive result for the group for both the current and the following
business year.
Munich, 13 April 2012
The General Partner
Josef Schörghuber Stiftung, Munich
Dr. Klaus N. Naeve Alexandra Schörghuber Dr. Jürgen Büllesbach Roland Tobias
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46
2011 Consolidated
Financial Statement
Schörghuber Stiftung & Co. Holding KG, Munich
Consolidated income statement
Notes 2011
EUR '000 EUR '000
Sales revenue II.A.1 467,766 596,930
2010*
Cost of sales II.A.2 – 355,588 – 448,788
Gross profit on sales 112,178 148,142
Distribution costs II.A.3 – 33,768 – 34,648
Administration costs II.A.4 – 36,669 – 41,642
Other operating income II.A.5 141,889 34,488
Other operating expenses II.A.6 – 17,844 – 7,303
Income from equity-accounted interests II.A.7 9,188 10,458
Operating income 174,974 109,495
Other financial income 3,187 2,071
Other financial expenses – 81,359 – 73,673
Financial result II.A.8 – 78,172 – 71,602
Profit before taxes 96,802 37,893
Income tax expenses II.A.9 – 3,361 8,435
Income from ongoing operations after tax 93,441 46,328
Income from discontinued operations II.A.10 10,899 13,451
Net profit after taxes 104,340 59,779
Of which attributable to non-controlling interests II.A.11 – 65 – 457
Of which attributable to shareholders of the parent company 104,405 60,236
*Prior-year figures adjusted in accordance with IFRS 5.

Consolidated Financial Statement I 2011
Consolidated statement of recognized income
and expenses
Notes 2011
EUR '000 EUR '000
Net profit after taxes 104,340 59,779
Exchange differences on translation of foreign
operations 674 6,157
Other changes from at-equity accounting not
recognized in income 24 122
Gains on cash-flow hedges – 295 – 204
Deferred taxes from cash-flow hedges offset
directly against equity 188 61
Income recognized directly in equity 591 6,136
Comprehensive income after taxes 104,931 65,915
Of which attributable to non-controlling interests – 65 – 457
Of which attributable to shareholders of the parent company 104,996 66,372
2010
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48
Consolidated balance sheet
Notes 31.12.2011
31.12.2010
Assets
EUR '000 EUR '000
Intangible assets II.B.1 13,388 8,577
Tangible assets II.B.2 435,756 607,292
Investment property II.B.3 1,750,227 1,594,134
Equity-accounted participating interests II.B.4 135,081 138,103
Other financial assets II.B.5 1,766 1,705
Deferred tax assets II.B.6 30,731 26,357
Inventories II.B.7 9,693 –
Other non-current receivables and assets II.B.10 10,038 7,116
Non-current assets 2,386,680 2,383,284
Inventories II.B.7 261,201 115,528
Trade-account receivables II.B.8 40,002 29,647
Tax refund claims II.B.9 973 442
Other current receivables and assets II.B.10 15,844 25,329
Cash and cash equivalents II.B.11 275,376 215,147
Assets held for sale II.A.10 59,771 79,140
Current assets 653,167 465,233
Notes 31.12.2011
3,039,847 2,848,517
31.12.2010
Liabilities
EUR '000 EUR '000
Limited partners’ capital 92,033 92,033
Provisions 1,167,385 1,097,706
Shares of other shareholders 365 1,319
Equity II.B.12 1,259,783 1,191,058
Non-current financial liabilities II.B.15 960,675 937,346
Deferred tax liabilities II.B.13 12,240 20,339
Other non-current liabilities II.B.18 12,036 3,876
Provisions for pensions II.B.14 45,315 45,142
Other non-current provisions II.B.19 9,886 32,861
Long-term debt 1,040,152 1,039,564
Current financial liabilities II.B.15 308,910 258,004
Trade-account payables II.B.16 46,894 26,163
Income taxes II.B.17 2,126 5,221
Other current liabilities II.B.18 310,030 231,904
Other current provisions II.B.19 51,904 66,364
Liabilities held for sale II.A.10 20,048 30,239
Short-term debt 739,912 617,895
Borrowed capital 1,780,064 1,657,459
3,039,847 2,848,517

Consolidated cash-flow statement
EUR '000 EUR '000
Net profit after taxes 104,340 59,779
Write-downs / write-ups on investments – 85,163 10,498
Change in long-term provisions – 16,533 – 494
Other non-cash-effective expenses and income – 261 – 8,781
Deferred tax income and expenses – 2,184 – 11,838
Gains / losses from the disposal of assets 13,956 – 4,591
Gains / losses from the disposal of discontinued
operations – 5,273 –
Portfolio management expenses 5,825 53,952
Change in net working capital – 74,617 22,050
Cash flow from business operations** – 59,910 120,575
Outflow for investments in intangible assets – 2,455 – 1,495
Outflow for investments in tangible assets and investment
property – 68,938 – 55,125
Outflow for investments in financial assets – 52 –
Inflow from assets held for sale and discontinued
operations 76,393 –
Inflow from the disposal of intangible assets – 1,055
Inflow from the disposal of tangible assets 145,562 49,503
Inflow from the disposal of financial assets 47 –
Cash flow from investments** 150,557 – 6,062
Payments to company owners and minority shareholders – 26,670 – 13,853
Change in financial liabilities 9,186 – 17,591
Change in accounts receivable / payable from / to shareholders – 3,310 13,569
Cash flow from financing operations** – 20,794 – 17,875
Cash-flow-effective change in funds 69,853 96,638
Exchange rate- and consolidation scope-related changes
in funds 5,456 5,450
Funds at the start of the reporting period 215,164 113,076
Funds at the end of the reporting period** 290,473 215,164
** The break-down of funds and cash flow into ongoing and discontinued business operations is explained in section II.C of the Notes.
Consolidated Financial Statement I 2011
2011
2010
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50
Development of consolidated equity from
1 January 2010 to 31 December 2011
Limited
partners'
capital
EUR '000
Foreign
currency
translation
EUR '000
Cash-flow
hedges
EUR '000
As at 01.01.2010 92,033 – 1,943 – 1,965
Net profit after taxes 6,157 – 143
Transfers to provisions – 179
Capital repayments, dividend payouts –
Capital increases
Other changes not recognized in income
Other participatory relationships
As at 31.12.2010 92,033 4,035 – 2,108
Net profit after taxes – 674 – 107
Transfers to provisions
Capital repayments, dividend payouts
Capital increases –
Other changes not recognized in income
Other participatory relationships –
As at 31.12.2011 92,033 4,709 – 2,215

Provisions
for other
changes not
recognized in
income
EUR '000
Other
provisions
EUR '000
Total
provisions
EUR '000
Share of
equity of the
parent
company
EUR '000
Consolidated Financial Statement I 2011
Share of
equity of
non-controlling
interests
EUR '000
Consolidated
equity
EUR '000
– 189 1,049,764 1,045,667 1,137,700 965 1,138,665
EUR '000
122 60,236 66,372 66,372 – 457 65,915
– 179 – 179 179 –
– 13,853 – 13,853 – 13,853 – 13,853
– – 632 632
– 301 – 301 – 301 – 301
– – – –
– 67 1,095,846 1,097,706 1,189,739 1,319 1,191,058
24 104,405 104,996 104,996 – 65 104,931
– – –
– 3,416 – 3,416 – 3,416 – 3,416
– – –
– – –
– 31,901 – 31,901 – 31,901 – 889 – 32,790
– 43 1,164,934 1,167,385 1,259,418 365 1,259,783
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Notes to the
Consolidated Financial
Statement for 2011
Schörghuber Stiftung & Co. Holding KG, Munich
I. General information
A. Basis of preparation
Schörghuber Stiftung & Co. Holding KG (SHKG), the head office of which is located at Denninger Strasse 165, 81925
Munich, Germany, is the holding company for Schörghuber Corporate Group, which operates a number of different
business divisions.
With effect from 1 September 2011, Arabella Hospitality Group GmbH & Co. KG (AHGKG) merged with Arabella
Hospitality SE (AHSE) by way of accrual, the latter becoming the central holding company of the Hotels division as
from this date. AHSE determines the strategic focus of the division and controls its cash flows on a central basis. It
operates, either directly or indirectly, virtually all the group’s hotels in Germany, Switzerland and on Mallorca. With
effect from 31 December 2011, AHSE acquired a minority interest in Arabella Hotel Holding AG, Switzerland and from
this point on, therefore, became the sole proprietor of the hotel activities in Switzerland bundled under the roof of this
company. On 17 August 2011, Arabella Hospitality SE and Schörghuber Stiftung & Co. Holding KG concluded a fiveyear
profit-and-loss transfer agreement with retroactive effect from 1 January 2011.
Brau Holding International GmbH & Co. KGaA (BHI) is the intermediate holding company for the Beverages division
and the joint-venture company in the partnership with Heineken International B.V. BHI holds participating interests
in, amongst others, the Paulaner, Kulmbacher, Würzburger Hofbräu, Fürstenberg and Hoepfner breweries. 50 % of the
shares in Paulaner are held directly by SHKG via another subsidiary.
Brau Holding International GmbH & Co. KGaA is carried at equity in the consolidated accounts of SHKG. The sale,
agreed in 2010, of a stake held by Paulaner in a beverage wholesaler went ahead in the 2011 financial year.

Notes to the Consolidated Financial Statement | 2011
The Construction & Real Estate division is managed under the umbrella of Bayerische Hausbau GmbH & Co. KG
(BHGKG). The lion’s share of the group’s real estate property portfolio is managed via the direct participating interest
in Bayerische Hausbau Immobilien GmbH & Co. KG, while project development activities (national and international),
construction of prefabricated homes and real estate management are operated via stakes held in Bayerische Hausbau
Projektentwicklung GmbH, Bayerische Hausbau International GmbH, Hanse Haus GmbH and Bayerische Hausbau
Immobilien Management GmbH. The former diversity in terms of names and brands has given way to a universal
single-brand strategy and clear assignment of products and services to individual companies under the familiar market
brand of “Bayerische Hausbau”.
Since 1 July 2011, the Seafood division has been incorporated in the Schörghuber Corporate Group and its figures
consolidated in those of the Inversiones Stefal SpA (Stefal) financial holding. The subgroup is involved mainly in the
production and processing of Atlantic and Pacific salmon, as well as salmon trout. The operations side of business is
handled by Productos del Mar Ventisqueros S.A. (Ventisqueros).
In the previous financial year, the executive board and the foundation board had decided to discontinue aircraft leasing –
consolidated as Bavaria International Aircraft Leasing GmbH & Co. KG (BIAL) – as a strategic business division,
as it was considered that the changed market conditions no longer offered BIAL, a niche provider, adequate scope
in which to generate sustained earnings potential given the inherent risk. During the first six months of 2011, the
management succeeded in selling off 9 of the 15 aircraft available for sale. For this reason, it was decided to abandon
the division with effect from 1 July 2011 and disclose it as a discontinued operation in line with IFRS 5. In accordance
with IFRS 5, prior-year figures (2010) were adjusted in the income statement.
SHKG prepared its consolidated financial statement for the period up to 31 December 2011 in accordance with section
315 a of the German Commercial Code (HGB) and in compliance with International Financial Reporting Standards
(IFRS) and the International Financial Reporting Interpretations Committee (IFRIC), as applicable in the EU.
All provisions of the International Accounting Standards Board (IASB) mandatory on 31 December 2011 were complied
with, as applicable in the EU. In addition, all mandatory regulations set down in commercial law were observed. The
figures for the previous year were determined according to the same principle.
The consolidated financial statement was drawn up in euros (EUR). The income statement (profit & loss) was drawn
up using the cost-of-sales method.
The consolidated financial statement is a true and fair view of the earnings, assets, and financial position of the
SHKG group.
The standards and amendments listed in the following became mandatory for the first time during the 2011 financial
year.
■ Amendment to IFRS 1 “First-time adoption of International Financial Reporting Standards”
(limited exemption of first-time users from the obligation to provide comparative figures in accordance
with IFRS 7)
■ Amendment to IAS 24 “Related-party disclosures” (revised definition of “related parties”)
■ Amendment to IAS 32 “Financial instruments: Presentation”
(changes with regard to the classification of rights issues)
■ Amendment to IFRIC 14 “IAS 19 – Prepayments of a Minimum Funding Requirement”
■ IFRIC 19 “Extinguishing financial liabilities with equity instruments”
■ Improvements to International Financial Reporting Standards (May 2010)
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54
The amendments to IFRS 3 described under I.B.2 will apply prospectively to company mergers taking place in the
future. The remaining new or amended regulations have little or no effect on the 2011 consolidated financial statement
or are irrelevant to SHKG.
The following standards or amendments are mandatory for all financial years beginning on or after 1 January 2011.
■ Amendment to IFRS 7 “Financial instruments: Disclosures” (change to improve transition disclosures)
The new regulations have little or no effect on the consolidated financial statement or are not relevant to SHKG.
Voluntary early application of the standards will not take place.
In addition, the following standards or amendments to standards have been published but have yet to be recognized
by the EU.
■ Amendment to IFRS 1 “First-time adoption of International Financial Reporting Standards”
(changes with regard to the effects of severe hyperinflation)
■ Amendment to IFRS 7 “Financial instruments: Disclosures”
(changes to improve disclosures concerning the offsetting of financial assets and liabilities)
■ IFRS 9 “Financial Instruments”
■ IFRS 10 “Consolidated Financial Statements”
■ IFRS 11 “Joint Arrangements”
■ IFRS 12 “Disclosure of Interests in Other Entities”
■ IFRS 13 “Fair Value Measurement”
■ Amendment to IAS 1 “Presentation of Financial Statements”
(changes with regard to the presentation of other comprehensive income)
■ Amendment to IAS 12 “Income Taxes”
(limited amendment with regard to the recovery of underlying assets)
■ Amendment to IAS 19 “Employee Benefits”
(changes are the results of projects on short-term employee benefits and post-employment benefits)
■ IAS 27 “Separate Financial Statements”
(consolidation provisions previously contained here have been transferred to IFRS 10)
■ IAS 28 “Investments in Associates” (replaces the previous version)
■ Amendment to IAS 32 “Financial instruments: Presentation”
(changes to improve disclosures concerning the offsetting of financial assets and liabilities)
■ IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine”
Application of IFRS 7 will necessitate extensions to the notes to the consolidated financial statements with regard
to the transfer of assets and the offsetting of financial instruments. Application of IFRS 9 will affect how financial
assets and liabilities are disclosed and how changes in the fair value of certain financial instruments are carried. How
presentation of the group’s earnings, assets, and financial position will be affected is currently under review. IFRS 12
and 13 will broaden the scope of the information contained in the Notes, while IAS 1 will alter how the group’s other
comprehensive income is presented. Besides extending the reporting obligations, the amendment to IAS 19 implies
changes in the manner in which actuarial losses are recognized. It will no longer be possible to use the corridor method.

B. Consolidated group and consolidation principles
1. Consolidated group
In addition to the parent company itself, the consolidated financial statement includes all significant companies over
whose business and financial policies SHKG may exert control, either directly or indirectly. Companies whose business
and financial decisions are significantly influenced, either directly or indirectly, by SHKG (associates) are accounted
for using the equity method.
Subsidiaries whose business is dormant or of low volume, and which are insignificant in terms of presenting a true
and fair view of the earnings, assets, and financial position of the group, are not consolidated. They are carried in the
consolidated financial statement at their respective acquisition cost or current market value, whichever is the lower.
The consolidated group is structured as follows.
Notes to the Consolidated Financial Statement | 2011
2011 2010
Fully consolidated companies
Domestic 33 36
Foreign 20 20
Companies measured at equity
53 56
Domestic 7 7
Foreign 1 1
Non-consolidated companies
8 8
Domestic 4 6
Foreign 3 3
7 9
68 73
In the Construction & Real Estate division, three fully consolidated subsidiaries were merged with their parent company,
and two others newly founded in the year under review. Two non-consolidated companies were disposed of as a result
of mergers or scheduled liquidation. In order to streamline the group’s structure, three subsidiaries in the operating
areas of hotels and golf were merged with the newly founded Arabella Hospitality España S.L., Palma de Mallorca,
and two inactive Spanish subsidiaries were liquidated. After a 49 % minority stake had been purchased in Arabella-
Starwood Hotelpool GmbH, this company was merged with Arabella Hospitality Group GmbH & Co. KG. This, in
turn, was merged with Arabella Hospitality SE (previously: SUG Beteiligungs SE) on 31 August 2011 by way of
accrual. With the incorporation of the new Seafood division, the group has acquired four fully consolidated foreign
subsidiaries.
By way of an agreement signed 30 June 2011, Blue Lion GmbH, Munich gave notice of its participation, effective
1 July 2011, in the Chilean public limited company Inversiones Stefal SpA (Stefal), Santiago de Chile. Also on the
same date, certain accounts receivable were assigned and these, together with a loan plus interest granted on 16 June
2011, converted into equity.
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The assets and liabilities at the time of the transfer were as follows.
Intangible assets
Carrying amount
EUR '000
1,039
Goodwill 3,017
Tangible assets 37,160
Financial assets 20
Inventories 36,627
Liquid assets 5,431
Receivables and other assets 10,394
Deferred tax assets 4,604
Assets acquired 98,292
Non-current liabilities – 64,458
Deferred taxes – 14
Current provisions – 1,061
Current and non-current liabilities – 25,103
Liabilities acquired – 90,636
Shares of other shareholders – 4
Net assets acquired 7,652
As the ownership structures of the companies involved precluded IFRS 3 from being used in the transfer process,
the carrying amounts were retained and the difference between the net assets acquired and the purchase price offset
through retained earnings.

Had the business division been consolidated in the SHKG group on 1 January 2011, the income statement would appear
as follows.
Consolidated
statement not incl.
Seafood
EUR '000
Seafood
01.01. – 31.12.2011
EUR '000
Consolidated statement
incl. Seafood
01.01. – 31.12.2011
EUR '000
Sales revenues 428,283 73,705 501,988
Costs and expenses – 255,481 – 75,254 – 330,735
Operating income 172,802 – 1,549 171,253
Financial result – 75,718 – 4,429 – 80,147
Profit before taxes 97,084 – 5,978 91,106
Income tax expenses – 3,279 633 – 2,646
Income from ongoing
operations 93,805 – 5,345 88,460
Income from discontinued
operations 10,899 0 10,899
Net profit after taxes 104,704 – 5,345 99,359
Of which attributable to
non-controlling interests – 72 – 2 – 74
Of which attributable to shareholders
of the parent company 104,776 – 5,343 99,433
All told, with the exception of the new Seafood division, the changes in the consolidated group did not have any material
influence on the group’s earnings, assets, and financial position.
2. Consolidation principles
Notes to the Consolidated Financial Statement | 2011
The assets and liabilities of the domestic and foreign companies included in the consolidated financial statement are
recognized in accordance with general accounting and valuation methods standardized throughout the SHKG group.
The income of subsidiaries acquired or disposed of in the course of the year is carried in the group’s statement of
recognized income and expenses as from the effective date of acquisition or up to the effective date of disposal. The
total comprehensive income of a subsidiary is attributed to the owners of the parent and to the non-controlling interests,
even if this results in the latter recording a negative balance. Non-controlling interests held in consolidated subsidiaries
are disclosed separately from the equity capital of the group.
Receivables, payables, contingent liabilities, guarantees and commitments, provisions, income and expenses, as well
as income between consolidated companies are offset or eliminated as part of the consolidation process. Consolidation
processes that give rise to future tax expense or income due to the reversal effect of such processes will generate
deferred taxes.
Capital is consolidated using the acquisition method. Concerning company mergers occurring from the 2011 financial
year onwards, the purchase costs of the acquisition correspond to the sum of the fair value of the acquired assets, the
expended equity instruments and the debts arising or taken over at the time of the transaction. The fair value of any
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assets and liabilities resulting from an agreement on a contingent consideration payable in connection with the acquisition
will serve to increase the acquisition costs. Any subsequent amendments to the valuation of the consideration
arrangement will no longer have an influence on capital consolidation, but must be recognized in the income statement
instead. If the consideration relates to an equity instrument, its subsequent performance must be recognized directly in
the equity capital. Incidental costs arising from the acquisition are carried immediately as expenses.
For each acquisition, the group must decide whether non-controlling interests in the acquired company are measured
at fair value or on the basis of their proportionate share in the net assets acquired in the company. The acquired assets
and liabilities must be recognized at fair value at the time of the transaction. In the periods following consolidation,
any hidden reserves and charges disclosed are carried forward, amortized or released in accordance with the treatment
of the corresponding assets and liabilities. They are subject to deferred taxation unless disclosure means that they will
be recognized for tax purposes anyway.
Goodwill is recognized as the excess of the cost of acquisition plus the sum of the value of the non-controlling interests
and the fair value of equity held prior to the purchase over the proportionate share in the net assets in the company
acquired by the group measured at fair value. Goodwill is verified at least annually or whenever there are indications of
impairment, and written down where necessary. If the acquired net assets exceed the cost of acquisition, the difference
is entered directly in the income statement after it has been verified again.
Incidental acquisition expenses were capitalized in the course of mergers and acquisitions up to and including the 2009
financial year, whereas contingent considerations were recognized only if they were probable and could be measured
reliably. Subsequent changes to financial considerations were not recognized in income but carried straight to equity in
the sense that they modified the acquisition costs of the purchase. Non-controlling interests were measured exclusively
on the basis of their proportionate share in the fair value of the net assets acquired in the company. Acquisitions made
prior to the switch to IFRS (financial statements up to 31 December 2005) continued to be disclosed according to the
book-value method of accounting, as permissible under the options afforded by German commercial law.
With regard to financial years from 2010 onwards, changes in the size of the group’s holdings in subsidiaries are
reported as equity transactions. When a non-controlling interest is acquired, any difference between the price paid and
the proportionate share in the subsidiary’s net assets are disclosed directly in equity, as are gains and losses resulting
from the disposal of non-controlling interests. Up to now, transactions involving minority holdings were treated in
the same way as transactions with non-group third parties. For this reason, the sale of non-controlling interests would
result in a loss or gain entered in the consolidated financial statement, while any difference between the purchase price
and the proportionate share in the net assets would be recognized at the time of the transaction as goodwill.
Associates are companies upon which the group exerts a significant influence but cannot control, normally where a
share of the voting rights of between 20 % and 50 % is involved. Joint ventures are enterprises managed by the group
in cooperation with one or more partners on the basis of a contract.
Both types of participation – associates and joint ventures – are accounted for using the equity method.
Equity-accounted participations are carried on the basis of their original acquisition costs, adjusted proportionately for
any changes in the net assets of the associate or joint venture. Gains or losses resulting from the change in value over
the previous year include the share in the gain or loss of the respective associate or joint venture.

C. Accounting and valuation methods
1. Changes to the accounting and valuation methods
The purchase of the interest in the Chilean subsidiaries, which were consolidated in the Seafood division, means that
the 2011 financial year will see IAS 41 (measurement of the harvested product from biological assets) applied for the
first time. With the exception of this restriction, all the accounting and valuation methods used in the previous year
were retained.
2. Income and expenses
As a rule, revenues and other operating income are recognized when the service in question has been rendered or
the goods / products are delivered, and thus, when the inherent risk is transferred and the amount of the anticipated
consideration can be reliably estimated. What is more, the payment in question must be sufficiently likely to occur;
inter-group sales are eliminated.
Alongside this, revenue includes income from construction contracts that span different accounting periods pursuant
to IAS 11, with corresponding application of the percentage-of-completion (PoC) method. The associated expenses
are recognized simultaneously with the receivables from the partial realization of profit (PoC). No customer-specific
construction contracts were carried out in the 2011 financial year.
Income from leases is recognized in income on a straight-line basis over the term of the contracts. Initial costs directly
attributable to the conclusion of a leasing contract have also to be recognized in linear fashion over the term of the contract.
Public sector grants and assistance are recognized in accordance with IAS 20 only if there is reasonable assurance
that the conditions attached to it will be complied with and that the grant will actually be allocated. They are treated
as income and recognized in the periods necessary to match them with the related costs that they are intended to compensate.
Operating expenses are reported as expenses at the point in time at which they are incurred or when the service is used.
Benefits paid out by the German Labor Office (Bundesagentur für Arbeit) in accordance with the German Partial
Retirement Act (performance-based public grants) are recognized in the year in which they are granted and charged to
the income statement as personnel expenses.
Interest income and interest charges are recognized in profit or loss on the basis of the effective interest rate method.
Dividends and income from participating interests are recognized in the interest statement when the shareholder’s legal
entitlement to payment arises and a distribution resolution has been passed.
Income tax expense represents the sum of current and deferred taxes.
Other tax is recognized in the income statement as other operating expenses.
3. Foreign currencies
Notes to the Consolidated Financial Statement | 2011
Transactions in foreign currency are translated at the rates prevailing on the date when they occur. Financial assets
and liabilities in foreign currencies are translated at the mean rate prevailing on the balance-sheet date. Any resulting
translation differences are recognized in the statement of income.
The financial statements of the consolidated companies that are denominated in a foreign currency are translated on
the basis of the functional currency concept using the modified closing rate method. Since the subsidiaries carry on
their business independently in financial, economic and organizational terms, the functional currency is essentially
their local currency.
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With the exception of shareholders’ equity, which is translated at historic exchange rates, financial assets and liabilities in
foreign currencies on the balance sheet are translated at the mean rate prevailing on the balance-sheet date. The income statement
is translated at average exchange rates. In compliance with IAS 21.39 (c), differences in currency translation occurring
as a result of consolidation are allocated to the consolidated shareholders’ equity with a neutral effect on net income.
When a foreign business operation is disposed of, currency differences which until then had been recorded in shareholders’
equity without any effect on profit are then disclosed in the income statement as part of the profit or loss from
the sale of the subsidiary.
The development of the exchange rates serving as the basis for currency translation is shown below.
EUR Closing rate Average rate
Currency 31.12.2011 31.12.2010 2011 2010
1 US Dollar (USD) 1.2939 1.3362 1.392 1.32747
1 Swiss Franc (CHF) 1.2156 1.2504 1.2326 1.3828
1 Pound Sterling (GBP) 0.8353 0.8608 1.86788 0.8583
1 Hungarian Forint (HUF) 314.58 277.95 279.37 274.7175
1 Polish Zloty (PLN) 4.458 3.975 4.1206 3.98518
1 South African Rand (ZAR) 10.483 8.8625 10.097 9.6906
4. Intangible assets
Intangible fixed assets (but not goodwill) that are acquired in exchange for payment are valued at acquisition cost and
depreciated using the straight-line method over their useful life of between 3 and 15 years. Write-downs are allocated
to the corresponding function areas (divisions). Borrowing costs were not capitalized in the year under review, as
qualifying assets within the meaning of IAS 23 did not exist.
Non-scheduled write-downs on intangible assets are disclosed when the recoverable amount, i.e. the higher of
value in use of the asset concerned and net sale proceeds, falls below the carrying value. Should the grounds for the
non-scheduled write-downs effected in previous periods no longer apply, impairments are reversed via write-ups to
amortized cost.
Goodwill arising from company acquisitions is allocated to what are known as cash-generating units, or CGUs for
short. CGUs are essentially individual subsidiaries or sub-groups. At this reporting level, goodwill is monitored by the
management for internal control purposes. The recoverable amount of a cash-generating unit to which goodwill has
been allocated is tested for impairment at least once a year, or more frequently if events indicate an impairment may
exist pursuant to IAS 36, and, if necessary, written down to the lower recoverable value. The recoverable amount is
determined in the form of the useful life as the current value of expected future cash flows. The discounted cash flow
(DCF) model is used for the valuation.
Subsequent write-ups do not take place as once effected, impairment of goodwill cannot be reversed.
5. Tangible assets
Tangible fixed assets are measured at acquisition cost or manufacturing cost net of scheduled, straight-line depreciation.

Scheduled write-downs are based on the following useful lives.
■ Buildings / leasehold improvements 15 to 60 years
■ Model homes 15 to 20 years
■ Technical equipment and machinery 5 to 25 years
■ Operating and business equipment, furniture and fixtures 3 to 25 years
Notes to the Consolidated Financial Statement | 2011
Depreciation of aircraft takes place using the straight-line method based on a typical service life of 15 years and
assuming a residual value of 40 % of the original purchase price. Aircraft that remain with the division beyond the
15 years are written down using the straight-line method over a remaining useful life of 10 years and assuming a
residual value of EUR 0.
Scheduled depreciation of technical equipment and machinery, operating and office equipment, furniture and fixtures
is, for the most part, based on the straight-line method.
Any differences between measurement in accordance with IFRS and German income tax rules produce deferred taxes.
In accordance with IAS 36, non-scheduled write-downs on tangible assets are disclosed when the amount recoverable
through use of the asset, i.e. the higher of value in use of the asset concerned and net sale proceeds, falls below the
carrying value.
Non-scheduled write-downs on aircraft occur when the residual carrying amount of an aircraft is above the riskadjusted,
sustainable market value of the aircraft according to AVITAS (base value) or the cash value of net cash flows
generated by the aircraft in question. The net cash flows before interest and taxes comprise the future rental income
contractually agreed on the balance-sheet date, plus the likely proceeds from the sale of the aircraft at the end of the
contract (terminal value). The terminal value recognized is the market value upon contract expiry calculated according
to AVITAS. The net cash flows are discounted using a risk-adjusted rate (weighted average cost of capital).
Where the grounds for the non-scheduled write-downs no longer apply, the corresponding amounts are written back,
the upper limit of the write-up being the amortized costs that would have arisen at the valuation date had the writedown
not taken place.
According to IAS 17, leasing contracts must be classified. Thus, economic ownership of a leased asset is assigned to
the lessee if the latter essentially bears all of the opportunities and risks associated with its usage (operating lease).
Bavaria Aircraft Leasing GmbH & Co. KG does not have any finance leases on its books.
Prior to the inception of a leasing contract, the lessee pays a commitment fee to the lessor per aircraft as a form of
security. This fee is reimbursed if the lessee fulfils the terms of the leasing agreement satisfactorily up to the end
of the leasing period. The lessor is obliged to take out comprehensive third-party liability and hull insurance on
the aircraft. Upon expiry or termination of the contract, the lessee must return the aircraft in the specific condition
stated in the contract. Costs and consequential expenses arising from non-compliance with these terms are charged
to the lessee.
As from the 2011 financial year, the Aircraft Leasing division will be disclosed on the balance sheet as a discontinued
operation. In accordance with IFRS 5, prior-year figures (2010) were adjusted in the income statement.
Properties constructed or developed for future use as investment property are initially reported as tangible assets and
then, following completion, as investment property, this provided that the construction project started before 1 January
2009. In the course of the “annual improvements to IFRS”, it was decided that IAS 40 should be applied as early as the
building phase for all financial years starting from 1 January 2009.
Investment grants received under the joint scheme for improving regional economic structures (“Verbesserung der
regionalen Wirtschaftsstruktur”), along with investment allowances under the Investment Allowances Act are, deducted
from the acquisition costs of the corresponding asset in accordance with IAS 20. Investment grants are subject to specific
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obligations and are disclosed on the balance sheet only if there is reasonable assurance that the conditions will be
complied with. Write-downs are calculated using the straight-line method.
Individual subsidiaries, individual properties in the real-estate portfolio or individual aircraft are used as cash-generating
units for valuing the tangible asset in question. Borrowing costs that can be attributed directly to the acquisition,
construction or manufacture of a qualified asset are capitalized as part of the cost of acquisition or manufacture. A
qualified asset is an asset that takes a substantial period of time to produce or prepare for use or sale.
If the procurement or manufacture is specifically funded, the amount to be capitalized corresponds to the expenses
effectively incurred, less any income from the short-term investment of the financial resources. In the case of general
financing, the borrowing costs to be capitalized are calculated using an average rate relative to the non-project-specific
financial liabilities. All other borrowing costs are recorded as expenses in the period in which they occur.
6. Investment property
Property held to earn rental income or for long-term capital appreciation, including property currently under construction
for such purposes is disclosed as investment property. Property held by the group for the production of goods and
services or for administrative purposes does not satisfy the criteria for definition as investment property.
Investment property is initially recognized at acquisition or production cost, including transaction costs, and subsequently
measured at fair value. This also applies to investment property in the construction phase. Value alterations
resulting from changes in the fair value are included in the income statement under other operating income or expenses.
The market value of the real estate is calculated according to the International Valuation Standard IVS 1, mainly using
the discounted cash flow method (DCF method) via the discounting of future cash flows. A ten-year perspective is used,
with the assumption of sale of the property at the end of the calculation period. Cash flows for the individual years are
determined on a monthly basis and then aggregated, current rental agreements being considered on an individual basis.
Upon expiry of the agreements, market rental values are recognized and typical vacancy periods applied. The cash
flows shown are net of operating expenses, which primarily comprise vacancy costs, maintenance and service costs,
administrative expenses, non-allocable operating costs and marketing costs. The sale value at the end of the calculation
period is the perpetuity of the cash flow based on the 121nd month; costs to sell are not taken into account. The cash
flows of the individual years and the sale value are discounted to the date of the valuation using a property-specific
interest rate. The cash value is the fair value of the respective property. Special values are calculated for property to
which the DCF method cannot be applied (e.g. building leases, vacant plots, project developments).
An investment property is derecognized on disposal or when it is permanently withdrawn from use and no future economic
benefits are expected from its disposal. The resulting gain or loss from the sale of any asset is determined as the difference
between the proceeds and the carrying value of the asset and is recognized in other net operating income.
7. Equity-accounted participating interests
Companies whose business and financial decisions can be significantly influenced, either directly or indirectly, by
SHKG are accounted for using the equity method and recognized initially at acquisition cost. In subsequent periods, the
participating interest is either recognized in income or carried to equity depending on the group’s share in the profit and
loss account and the other comprehensive income. The equity and income of the participating interest are calculated
in accordance with group accounting and valuation methods. Cumulative changes after acquisition are offset against
the carrying amount.
Any difference in amount at the time of acquisition between the cost of acquisition and the pro rata net assets (equity)
of these associates is initially allocated to the pro rata assets and liabilities based on a measurement of the fair value.

Any exceeding amount corresponds to the goodwill that is included in the carrying amount of the associate, and is not
amortized. The carrying value of the associated company is tested for impairment annually, while the group’s share in the
result of the associated company is recognized in income and its share in cumulative changes in equity (not recognized in
the income statement) is disclosed directly in group equity.
If the group’s share in the losses of the associate or joint venture equals or exceeds the carrying amount of the investment,
no further shares in additional losses will be recognized, unless the group has assumed additional financial commitments
or guarantees.
8. Financial instruments
Financial instruments are contracts resulting in financial assets at one company and in a financial liability or equity
instrument at another. IAS 39 subdivides financial assets into the following categories.
■ Financial assets or liabilities “held for trading purposes” (A-FV)
■ Investments “held to maturity” (A-HM)
■ “Loans and receivables” (A-LR)
■ Financial assets “available for sale” (A-AS)
In the case of financial liabilities, a distinction is drawn between assets “measured at fair value through profit or loss”
(L-FV) and financial assets “measured at amortized cost” (L-AC).
IFRS 7 requires disclosure according to classes of financial instrument. These were harmonized with the categories set
out in IAS 39 with the following items added.
■ Liquid assets
■ Derivatives used in hedging transactions
■ Liabilities from finance leasing
Notes to the Consolidated Financial Statement | 2011
In addition to cash and cash equivalents, the group currently carries financial assets consisting mainly of trade-account
receivables, other receivables and loans, and financial instruments held for sale. The financial liabilities comprise liabilities
to banks (borrowings), trade-account payables and other liabilities.
Financial instruments are recognized as soon as the group becomes a contractual party to the provisions of a financial
instrument. They are derecognized when the rights to payments from the investment expire or are transferred and the
company has transferred substantially all the risks and rewards of ownership.
Initial recognition is at acquisition cost as at the contract date. Transaction costs are also reported with respect to all
financial assets not carried at fair value through profit or loss.
After initial recognition, available-for-sale financial assets are measured at fair value with gains or losses recognized
directly in equity. If no market price exists, the market value is established by way of appropriate valuation methods.
Changes in value are disclosed in equity via a revaluation provision, with due allowance for deferred taxes. If the asset
is derecognized, the revaluation provision is released and recognized in the income statement.
Financial assets measured at fair value through profit or loss include those “held for trading”. Any changes in the fair
value of financial assets in this category are recognized in profit or loss at the time of value increase or impairment.
Shares in non-consolidated affiliated undertakings recognized under financial assets are carried at the lower of acquisition
cost and fair value. Participating interests are measured at market price or fair value. If these values are not available,
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the assets will be measured at acquisition cost. Shares in non-consolidated subsidiaries or participating interests are
derecognized on disposal to parties outside the group.
Loans and receivables, together with any financial assets for which published price quotations in an active market are
not available and whose fair value cannot be determined reliably, are measured – to the extent that they have a fixed
term – at amortized cost using the effective-interest method. This is the amount at which a financial instrument was
measured at initial recognition minus any principal repayments and any non-scheduled write-downs on impairment or
non-recoverability. In the case of any difference between the initial amount and the amount repayable upon maturity
(premium), the amortized costs will also include the cumulative spread of the premium over the term via the effectiveinterest
method.
As a general rule, the amortized cost of current receivables and liabilities or financial instruments without fixed maturities
is the nominal amount or the repayment amount.
In accordance with IAS 39, regular checks are carried out to assess whether there is any objective evidence that a financial
asset or portfolio of assets is impaired. Questionable financial assets, where it is highly unlikely that funds will be received,
are fully written off. If there are doubts surrounding their recoverability, the receivables are recognized at their probable
recoverable amount to take due account of the potential for default. Once identified, an impairment loss is recognized as an
expense and recorded in an allowance account; a direct write-off of the financial asset does not take place.
If available-for-sale financial assets suffer sustained impairment, any positive balance in the revaluation provision
is initially used to offset the impairment before the residual amount is realized in profit and loss. If the revaluation
provision is already negative, the impairment is posted as an expense. In the case of financial instruments measured at
amortized cost, subsequent appreciations in value are written up to a maximum of the carrying value that would have
ensued had there been no impairment. If the subsequent increases in value affect held-for-sale financial assets, the
reversal in the case of loan capital instruments is recognized in profit or loss, whereas reversals on equity instruments
are recognized directly in equity. If the assets are measured at amortized cost, subsequent appreciations are not taken
into account.
Financial liabilities are measured at amortized cost using the effective interest method. These liabilities are recognized
as either current or non-current on the basis of the due date of payment. Liabilities are derecognized on settlement or
if the reasons for recognizing a liability no longer apply.
The group uses derivative financial instruments solely for hedging purposes, notably interest-rate swaps in order to
protect against interest-rate exposures, and currency futures to hedge against the risk of exchange-rate shifts.
Derivative financial instruments that comply with IFRS hedging requirements are designated as part of a hedging relationship
and recognized at settlement date. They are measured at fair value. The fair values are calculated by applying
present value and option price models. As far as possible, the relevant market prices and interest rates observed at the
balance-sheet date, which are derived from recognized sources, are used as the opening parameters for these models.
Insofar as they apply to the effective portion of the derivative financial instrument, changes in market value – after allowing
for deferred taxes – are shown in equity as unrealized gains or losses until the income effect of the underlying transaction
is realized. Ineffective parts of derivatives are in principle recognized in the income statement. Depending on term and
market value, these instruments are carried under current or non-current financial assets or liabilities. Derivatives are
derecognized on settlement.
Derivative financial instruments that do not comply with IFRS hedging requirements are disclosed as financial instruments
held for trading purposes and recognized on the settlement date. They are measured at fair value. The fair values are calculated
by applying present value and option price models. As far as possible, the relevant market prices and interest rates
observed at the balance-sheet date, which are derived from recognized sources, are used as the opening parameters for these
models. Market-value changes are recognized in net interest income. Depending on term and market value, these instruments
are carried under current or non-current financial assets or liabilities. Derivatives are derecognized on settlement.

The fair-value measurement of financial instruments follows a three-level hierarchy, whereby the valuation parameters
used are classified according to their proximity to an active market.
■ Level 1: Quoted prices in active markets for identical financial assets and liabilities
■ Level 2: Parameters other than quoted prices that are either directly (price) or indirectly (derived for the price)
observable
■ Level 3: Factors not based on observable market data
The net gains and losses in the “loans and receivables” category are explained in section II.A.7 and comprise revaluation
gains and income from loans and receivables written down, as well as corresponding impairments and derecognitions
which are entered under distribution costs.
The net gains and losses in the “financial instruments held for trading purposes” category are shown under interest
income (section II.A.7) and comprise solely market value changes and interest payments from derivates that do not
comply with IFRS hedging requirements. Derivates are held for hedging purposes only and are not traded.
No significant gains or losses were reported in the “held for trading”, “held to maturity” and “held for sale” categories
of financial asset.
9. Customer-specific construction contracts
Customer-specific construction contracts usually span several reporting periods. If the income from a construction
contract can be estimated reliably, the revenues and costs associated with the contract should be disclosed as the project
progresses in line with the degree of completion (PoC method), and not later when the main risks / rewards have
been transferred or the services rendered. The percentage of a contract completed is determined using the ratio of costs
incurred against the estimated total cost (cost-to-cost method). If the income from a construction contract cannot be
estimated reliably, revenue is recognized only in the amount of the contract costs incurred which are likely to be collected;
contract costs are recognized in the period in which they are incurred.
The orders are reported under the receivables or liabilities from percentage of completion. If the cumulative performance
of the contract (cost and income) exceeds advance payments in individual cases, the construction contract must
be reported on the assets side of the balance sheet under “future receivable from construction orders” in line with the
PoC method. If the balance remains negative even after deduction of advance payments, the negative balance is carried
as a “liability from construction contracts” under “future payables from construction orders”. Anticipated losses from
such contracts are covered by write-downs or provisions, taking all identifiable risks into account.
10. Inventories and biological assets
Notes to the Consolidated Financial Statement | 2011
Pursuant to IAS 2, inventories are measured at the lower of acquisition or manufacturing cost (or average acquisition or
manufacturing cost) and net realizable value. The net realizable value reflects the estimated achievable sales proceeds
in the normal course of business less estimated distribution costs.
The production costs of unfinished and finished buildings include all costs directly allocable to development as well
as an appropriate portion of allocable overheads. Sales costs, general administration costs and interest on external
borrowing are not capitalized unless the provisions of IAS 23 apply.
Biological assets are measured according to the provisions of IAS 41. These include juvenile fish from breeding and
farming, up to harvest maturity. From the time of initial recognition and thereafter, they are recognized at fair value,
less costs to sell. As the fair value – the amount at which an asset is exchanged or a debt paid between competent,
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contractually willing and mutually independent business partners – cannot be accurately determined at initial recognition,
the asset is initially valued at acquisition cost or cost of manufacture.
The fair value of a biological asset is determined hierarchically as follows:
a) Price on the relevant market
b) Surrogate for the market price if a market price pursuant to a) above is not observable
c) Present-value method if neither a) nor b) above can be applied
Since there is no active market for live fish during farming in land-based or freshwater habitats, measurement takes
place according to IAS 2.
A market does, however, exist for live fish farmed in saltwater habitats. This is oriented to the live weight of the various
species of fish and is geared to the price of the processed fish. Fair-value measurement of Atlantic salmon (Salar) takes
place as from a live weight of 4 - 4.5 kg, and for the Coho and trout species as from a live weight of 2 - 2.5 kg. In this
case, the fair value is the market price at the end of the month, less estimated production costs and costs of sale. The
live weight is determined by removing and measuring live fish. Fish that have not reached the designated weight are
valued according to IAS 2.
The market price is derived from the FIS (Fish Information & Services) price for salmon trout and Coho, and the Urner
Barry price for Salar in the last week of the financial year. These published prices (free-on-board, FOB) prices in the
destination market) are adjusted to take account of customary Chilean FOB prices. The fair value calculated is compared
with the cumulative acquisition or manufacturing costs incurred so far, and any gain or loss in value recorded in a
separate item under manufacturing costs in the current results.
Biological assets maintained in saltwater are reported under current assets, whereas freshwater assets are classified as
non-current assets.
11. Discontinued business operations
Discontinued operations are recognized as soon as any component of an entity that can be clearly distinguished from
the rest of the entity is classified as held for sale, or has already been disposed of and such business division either
■ represents a separate major line of business or a geographical area of operations, or
■ is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations,
or
■ is a subsidiary exclusively acquired with a view to resale.
The associated assets and liabilities are disclosed on the balance sheet as “held for sale” and measured at the lower of
their carrying amount and fair value less costs to sell. Scheduled write-downs are no longer recognized as from the date
of reclassification. Income from discontinued business is carried separately in the income statement from on-going
operations.

12. Deferred taxes
Tax assets and liabilities are accrued to cover any temporary differences of assets and liabilities between the tax base
and the IFRS balance sheet, as well as to cater for consolidation processes that affect the income statement. Deferred
taxes are recognized in the amount expected to be paid or recovered in subsequent fiscal years based on the tax rate
enacted at the time of recognition.
If the temporary differences concern goodwill or the initial recognition (with the exception of mergers) of other assets and
liabilities arising from transactions that affect neither the taxable income nor the net income for the year, the deferred
tax asset or liability will be recognized neither at the date of initial recognition nor afterwards. If deferred tax results
from the initial recognition of a company merger, the fiscal effect of this recognition must be included.
Deferred taxes arising from temporary differences in connection with participations in subsidiaries, associates and
joint ventures are disclosed only if the group is unable to determine the point in time of the reversal of the temporary
differences and it is unlikely that the difference will be reversed in the foreseeable future.
Deferred tax assets, which also include tax reduction claims from the expected future utilization of tax loss carryovers,
are reported only if the realization of these deductions is reasonably certain. Deferred taxes are measured by applying
the tax rates that, under current provisions of the law, would apply in the future when the temporary differences will
probably be reversed. The effect on deferred tax assets and liabilities of changes in tax laws is recognized in the period
that the law is enacted.
Deferred tax assets are set off against deferred tax liabilities in accordance with IAS 12.74.
The consolidated tax rate is 17.15 % (previous year: 17.15 %).
13. Provisions for pensions
The valuation of pension provisions is made according to IAS 19 using the projected-unit credit method. This method
takes account not only of known pensions and known earned future pension entitlements at the balance-sheet date,
but also of expected future increases in pensions and salaries based on conservative estimates of all relevant parameters.
Any year-end differences between defined pension obligations and the fair value of any plan obligations (actuarial
gains and losses) are recognized as income or expense only if such gains and losses exceed 10 % of the present value
of the total obligations. From the following year on, the resulting differences are distributed over the average remaining
period of service of the entitled employees and recorded as income or expense. Unrecognized past service cost is
recognized immediately insofar as the benefits are already vested, or amortized on a straight-line basis over the average
period until the benefits become vested. The interest component included in the pension expenses is shown in the
operating result as personnel expenses.
Insofar as plan assets exist, they are offset against pension provisions. Income from plan assets is offset against personnel
expenses.
14. Other provisions
Notes to the Consolidated Financial Statement | 2011
Other provisions are accrued if a past event results in a current obligation to third parties, it is probable that resources
will be used to meet this obligation, and the anticipated amount of the required provision can be estimated reliably.
Provisions for obligations which, in all probability, will not lead to an outflow of resources in the subsequent year are
discounted at prevailing market rates and carried at the present value of the expected outflow of resources, provided
the interest effect is material. The discount factor is based on market interest rates with matching maturities. Provisions
are not offset against recourse claims.
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An existing right will be recognized as an asset only if reimbursement is virtually certain and the amount to be reimbursed
can be reliably estimated. Any increases in provisions resulting exclusively from the compounding of interest are recorded
in the income statement as interest expenses.
15. Treatment of leasing contracts
Leasing contracts are classified as finance leases when the leasing conditions transfer all important risks and opportunities
associated with ownership to the lessee. All other leasing activities are known as operating leases.
When finance leasing property is rented, the assets are disclosed at the beginning of the lease under tangible assets
at the fair value of the leased property or, if lower, at the present value of the minimum future lease payments, while
the corresponding liabilities to the lessor are recognized in the balance sheet as liabilities from financial services. The
tangible fixed asset is depreciated and the liability eliminated over the term of the leasing arrangement. The difference
between the total leasing obligations and the fair value of the leased property is distributed over the term of the leasing
arrangement in the statement of income to ensure that a constant interest rate applies to the remaining balance for the
periods involved.
Rents and leasing payments arising from operating leasing arrangements are recognized on a straight-line basis over
the term of the contract.
16. Assumptions and estimates
Preparation of the consolidated financial statements is based on a number of accounting estimates and assumptions that
might have an effect on their recognition and measurement in the balance sheet and income statement. The amounts
ultimately realized may differ from these estimates. Estimates are necessary particularly during:
■ assessment of the need for and measurement of impairment losses on tangible and intangible assets, the definition
of discount and capitalization interest rates when valuing investment property and inventories;
■ determination of the useful life of a depreciable asset;
■ assessment of the need for and measurement of impairment losses on loans and receivables, and recognition and
measurement of pension and other provisions;
■ assessment of the realizability of deferred tax assets;
■ selection of the parameters to be applied during the model-based measurement of derivative financial
instruments.
The estimates applied were made on the basis of historical data and other relevant factors, including the assumption of
the group as a going concern. All estimates and assumptions are made to the best of our knowledge and belief with the
aim of providing a true and fair picture of the earnings, assets, and financial position of the group.
The assessment of goodwill and other assets also calls for the forecasting and discounting of future cash flows. The
cash flow forecasts are based on projections resulting from financial plans approved by management. Other material
assumptions relate to the discounting factor and the tax rates. Any change in the key factors which are applied in the
impairment review of goodwill may possibly result in impairment losses of different amounts being recognized.
Investment property is measured at fair value. By and large, the discounted cash-flow method using future cash flows is
used to determine the current market value of investment property, with estimates and assumptions on, above all, market
rental values, vacancy periods, operating costs and market- or property-specific interest rates forming the basis of the
calculations. These may deviate from actual later developments. Although useful lives are generally defined using a

Notes to the Consolidated Financial Statement | 2011
standardized group table, different values may be applied if estimates diverge substantially from the standard. All useful
lives are verified once a year and adjusted where necessary. The effective useful life may differ from the estimate.
Doubtful receivables are measured based on the maturity structure of the receivable, the creditworthiness of the customer
and past experience. The losses effectively incurred may not correspond to the forecasts.
Depending on the underlying transaction, the measurement of provisions may be sophisticated and require substantial
judgment and a number of estimates. Management’s assumptions about the timing and amount of settlement are based
on historical data, estimates and discounting factors. As such, the effective outflow of economic resources may differ
from the valuation / allocation of funds to the provisions. Deferred tax assets on losses carried forward are shown in the
accounts based on an estimate of the future realizability of the tax advantages, i.e. if sufficient tax income or reduced
charges can be anticipated. The actual tax situation in future periods, and the extent to which tax loss carry-forwards
may be used, may differ from the assessment made at the date the deferred tax assets are recognized.
Fair values for financial derivatives are calculated by applying present-value and option-price models. As far as possible,
the risk- and maturity-adjusted indicators observed at the balance-sheet date, which are derived from recognized
sources, are used as the opening parameters for these models. Interest swaps and forward exchange transactions are
measured on the basis of inputs other than price, but which can nonetheless be indirectly monitored. For this reason,
the measurement of interest swaps and forward exchange transactions is assigned to level 2 of the fair-value hierarchy
according to IFRS 7.27A. The effective development of the input parameters can vary from the assessment conducted
on the balance-sheet date.
If the effective developments deviate from the expected ones, the assumptions and, if necessary, the carrying amounts
of the affected assets and liabilities will be adjusted accordingly. At the time the consolidated financial statements
were prepared, there was no indication of significant changes in the assumptions and estimates used for accounting
and valuation, and it can be assumed that the carrying amounts of the affected assets and liabilities will not need to be
materially adjusted.
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II. Notes to individual items
A. Notes to the income statement
The Seafood division was integrated in the group on 1 July 2011; as such, comparisons with the figures of the previous
year are only partially feasible.
1. Sales revenues
2011 2010
EUR '000 EUR '000
Construction & Real Estate division 263,127 392,858
Hotels division 216,645 223,164
Seafood division 39,483 –
Other proceeds 24,973 19,648
Less inter-group revenues – 76,462 – 38,740
467,766 596,930
Domestic sales revenues amounted to EUR 349.953 million (previous year: EUR 535.124 million).
2. Cost of sales
2011 2010
EUR '000 EUR '000
Personnel costs – 108,429 – 103,651
Sale of land and buildings / portfolio management – 64,886 – 176,839
Appreciation / depreciation – 25,353 – 27,711
Maintenance, operating costs – 42,660 – 47,120
Lease expenses – 18,576 – 17,707
Hotel activities / cost of goods employed – 13,524 – 14,645
Facility management – 29,129 – 29,408
Seafood / cost of goods employed, fair value – 24,435 –
General contractor and associated activities – 514 – 276
Other cost of sales – 28,082 – 31,431
– 355,588 – 448,788

Notes to the Consolidated Financial Statement | 2011
The cost of sales of the Seafood division include fair-value adjustments in connection with the sale and processing
of fish after they have attained a certain live weight (see I.C.10) and amount to the following for the period 1 July –
31 December 2011.
Other cost of sales include fees and charges in connection with the joint venture in the Hotels division. Depreciation
includes write-downs of EUR 141,000 (previous year: EUR 347,000) on the usage value pursuant to IAS 36 of a domestic
hotel building, as well as non-scheduled write-downs on tangible fixed assets in the Construction & Real Estate
division amounting to EUR 0 (previous year: EUR 4.341 million).
3. Distribution costs
4. Administration costs
31.12.2011
EUR '000
Fair-value adjustment based on live weight 8,670
Fair-value adjustment based on sale – 5,661
2011
EUR '000
3,009
2010
EUR '000
PR, media advertising – 9,602 – 12,435
Personnel costs – 6,639 – 7,220
Write-downs – 1,088 – 1,286
Commissions – 10,468 – 9,342
Valuation allowances – 269 – 421
Maintenance, operating costs – 912 – 842
Other costs – 4,790 – 3,102
– 33,768 – 34,648
2011
EUR '000
2010
EUR '000
Personnel costs – 26,523 – 28,208
Auditing / consulting – 1,088 – 3,351
Write-downs – 604 – 710
Rents and leasing – 905 – 1,679
Maintenance, operating costs – 544 – 151
Other costs – 7,005 – 7,543
– 36,669 – 41,642
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5. Other operating income
2011
EUR '000
2010
EUR '000
Changes in the market value of real estate 120,307 28,537
Price gains / gains on the sale of equities 8,713 366
Gains from the disposal of fixed assets 8,678 199
Allocated charges within the group 196 352
Grants / compensation payments 526 1,128
Other 3,469 3,906
141,889 34,488
Changes in the market value of real estate refer to investment property only. They are unrealized and result largely from
the revaluation of investment property at fair value.
Gains from the disposal of fixed assets relate mainly to the building at Denninger Strasse 165 in Munich and the sale of
operating and business equipment at the Sheraton Seehof in Davos. The building at Denninger Strasse 165, Munich was
leased back from SHKG. Expenses in connection with the leasing agreement are disclosed in the administrative costs.
6. Other operating expenses
2011 2010
EUR '000 EUR '000
Changes in the market value of real estate – –
Price gains / gains on the sale of equities – 12,206 – 644
Amortization of goodwill – –
Non-allocable personnel costs – 863 – 2,584
Losses from the disposal of fixed assets – 155 – 514
Losses on the disposal of subsidiaries – – 21
Other – 4,620 – 3,540
– 17,844 – 7,303
In the previous year, “other expenses” included the sum of EUR 1.2 million for the establishment of an impending loss
provision in connection with a foreign construction project, as well as non-scheduled write-downs on operating and
business equipment (EUR 27,000) and on assets under construction (EUR 109,000).
7. At-equity result
As in the previous year, the result from investments accounted for using the equity method essentially involved the
Beverages division, which is consolidated “at equity”.

8. Financial result
Notes to the Consolidated Financial Statement | 2011
2011 2010
EUR '000 EUR '000
Other financial income
Income from participating interests 227 180
Income from other securities 34 161
Interest income 2,926 1,725
Minority interests – 5
Other financial expenses
3,187 2,071
Write-downs on participating interests, securities – –
Interest expenses – 64,182 – 61,831
Minority interests – 17,177 – 11,842
– 81,359 – 73,673
– 78,172 – 71,602
Since, under IAS 32, minority interests in consolidated partnerships are to be reported as debt capital, the proportionate
earnings of such interests are disclosed under investment income or expenses.
Net interest income from financial instruments are assigned to the IAS 39 measurement categories as follows.
2011 2010
EUR '000 EUR '000
Loans and receivables (A-LR) 2,607 2,141
Financial assets at fair value through profit or loss (L-FV) – 275 –
Financial liabilities at fair value through profit or loss (L-FV) – 7,609 – 8,295
Financial liabilities measured at amortized cost (L-AC)
– 54,496 – 56,228
– 59,773 – 62,382
The income relates to interest-bearing “other” financial liabilities, the expenses largely to interest payable on loans and
to the ineffective portion of cash-flow hedges (EUR + 254,000, previous year: EUR – 16,000).
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9. Income tax expenses
2011 2010
EUR '000 EUR '000
Current taxes 643 – 3,173
Deferred taxes – 4,004 11,608
– 3,361 8,435
The following deferred tax assets and liabilities in the balance sheet relate to recognition and measurement differences
for the individual balance sheet items.
31.12.2011
31.12.2010
EUR '000
EUR '000
Assets Liabilities Assets Liabilities
Fixed assets 3,251 – 9,126 2,410 – 16,467
Inventories, receivables, other assets 4,211 – 5,438 4,291 – 2,655
Provisions 3,075 – 4,884 – 64
Liabilities 960 – 2,057 903 – 1,328
Special tax-allowable items – – 8,187 – – 2,055
Losses carried forward 29,976 – 16,146 –
Other 2,316 – 491 12 – 59
Gross amount 43,789 – 25,299 28,646 – 22,628
Offsets – 13,058 13,058 – 2,289 2,289
Deferred tax assets 30,731 – 12,241 26,357 – 20,339
The taxes incurred in the group are trade and corporation tax; the tax rates on which the calculation of the deferred
taxes is based are 17 % for the trade tax and up to 33 % if both trade and corporation tax are applicable.
The provisions on extended trade tax reduction for real estate companies were taken into account when calculating deferred
taxes. For this reason, deferred taxes are recognized only to a part of the recognition / measurement differences
concerning real estate and special tax-allowable items in the consolidated result.
Temporary differences between the IFRS balance sheet and the tax balance sheet arising from investments in subsidiaries
and investments accounted for using the equity method for which no deferred tax liabilities were recognized, as
permitted by IAS 12.39, came to EUR 46.077 million (previous year: EUR 47.765 million).
Deferred tax assets for tax loss carry-forwards are recognized only within a 3- to 5-year planning horizon for the
respective company. Trade tax and corporation tax loss carry-forwards for which no deferred tax assets were recog-
nized came to EUR 47.218 million (previous year: EUR 52.440 million) and EUR 17.110 million (previous year:
EUR 18.372 million) respectively. In the year under review, domestic trade tax loss carry-forwards amounting to
EUR 4.268 million (previous year: EUR 34.796 million) were no longer recognized due to company restructuring
in the Hotels division.
Deferred taxes recorded directly in equity amounted to EUR 0 (previous year: EUR 61,000). In addition, deferred
taxes are explained in more detail in the section on accounting and valuation methods.
The tax expense reported deviates from the expected tax expense, and the table below shows a reconciliation of these
outgoings.

Notes to the Consolidated Financial Statement | 2011
2011 2010
EUR '000 EUR '000
Profit before taxes 96,802 37,893
Expected income tax at 17.15 % (previous year: 17.15 %). – 16,602 – 6,499
Tax-exempt income 21,661 23,280
Variances due to different tax rates – 2,474 816
Non-deductible expenses – 4,724 – 9,980
Taxes unrelated to the accounting period – 517 –
Subsequent recognition of tax loss carry-forwards – 4,655
Other fiscal effects – 705 – 3,837
Income tax expenses – 3,361 8,435
The effective tax rate in the year under review was 3.5 %, compared with 22.3 % in the previous year. The prior-year
figures were adjusted on account of changes in the disclosure of the discontinued Aircraft Leasing division.
10. Income from discontinued operations
In the previous year, the assets and liabilities of the group’s discontinued South African operations were disclosed
on the balance sheet as “held for sale” and measured at the lower of their carrying amount and fair value. Sale of the
assets and liabilities took place during the 2011 business year. The carrying amounts of the assets and liabilities “held
for sale” in the business year relate solely to the former Aircraft Leasing division and were as follows on the respective
accounting dates.
31.12.2011 31.12.2010
EUR '000 EUR '000
Tangible assets 36,939 65,290
Other non-current receivables and assets 3,861 48
Deferred tax assets – 2,550
Inventories – 3,251
Trade-account receivables 429 1,153
Other current assets 119 522
Cash 15,097 –
Assets held for sale 56,445 72,814
Financial liabilities – 19,499
Provisions for taxation 9,823 –
Other non-current provisions 6,269 –
Deferred tax liabilities 3,149 –
Trade-account payables 1 1,031
Other current liabilities 269 2,577
Other current provisions 537 7,020
Liabilities held for sale 20,048 30,127
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The disposal of held-for-sale assets in a hotel building (EUR 5.680 million) and in parts of a golfing facility, reported
in the previous year, went ahead as planned in 2011. The held-for-sale disposal group of the golfing facility comprised
the following elements.
Intangible assets
31.12.2010
EUR '000
3
Tangible assets 212
Equity-accounted participating interests –
Inventories 3
Trade-account receivables 117
Other current assets 114
Cash 17
Assets held for sale 466
Trade-account payables 90
Other current liabilities – 17
Other provisions 39
Liabilities held for sale 112
In the year under review, the at-equity accounted assets in aovo Touristik AG and design hotels AG disclosed as heldfor-sale
amounted to EUR 3.326 million.
Income and expenses arising from the discontinued operations in South Africa were as follows.
2011 2010
EUR '000 EUR '000
Sales revenues 12,398 32,676
Gains on the disposal of fixed assets 15,301 –
Costs and expenses – 12,376 – 28,660
Income from discontinued operations before tax 15,323 4,016
Income tax expenses – 2,282 – 1,379
Income from discontinued operations after tax 13,041 2,637
Of which attributable to non-controlling interests – –
Of which attributable to shareholders of the parent company 13,041 2,637

Notes to the Consolidated Financial Statement | 2011
Income and expenses arising from the Aircraft Leasing division were as follows (prior-year figures were adjusted in
accordance with IFRS).
2011 2010
EUR '000 EUR '000
Sales revenues 21,439 39,190
Costs and expenses – 24,024 – 27,403
Income from discontinued operations before tax – 2,585 11,787
Income tax expenses 443 – 973
Income from discontinued operations after tax – 2,142 10,814
Of which attributable to non-controlling interests – –
Of which attributable to shareholders of the parent company – 2,142 10,814
Shares in income attributable to non-controlling interests existed neither in the financial year under review nor in the
previous year. Thus, income from discontinued operations after tax corresponds exactly to the shares of income attributable
to shareholders of the parent company.
Costs and expenses for the financial year included domestic gains on foreign currency hedges amounting to EUR
+ 4.640 million (EUR – 4.239 million) opposed by exchange-rate losses arising from the measurement of trade-account
receivables on the balance-sheet date of EUR – 848,000 (EUR + 1.297 million) incurred in the context of activities in
South Africa.
11. Share of income attributable to non-controlling interests
As in the previous year, shares in income attributable to non-controlling interests related to the Hotels division. In the
year under review, minority holdings in two German subsidiaries were transferred to a sister company allowing the
latter to be fully consolidated. The losses accruing to the minority stake were recognized as expenses.
B. Notes to the balance sheet
1. Intangible assets
Intangible assets comprise the following.
31.12.2011 31.12.2010
EUR '000 EUR '000
Goodwill 5,278 1,900
Other intangible assets 8,110 6,677
13,388 8,577
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The intangible assets developed as follow, categorized by group.
Goodwill
Acquisition
costs
EUR '000
The change compared with the previous year relates to the Seafood division. As in the previous year, the other goodwill
stems from the Construction & Real Estate division.
Goodwill in the divisions is tested for impairment regularly at the end of the year or, should there be indications of
impairment, by applying the discounted earnings method to determine values based on multi-year planning using a
risk-adjusted discount rate and taking taxes into account.
Goodwill is tested for impairment regularly at the end of the year by applying the discounted earnings method to determine
values based on multi-year planning using a risk-adjusted discount rate and taking taxes into account. Calculations
are based on a 5-year planning horizon, a discount rate of 8.2 % and a growth discount of 1.0 %.
As in the previous year, there were no non-scheduled write-downs on intangible assets.
Writedowns
EUR '000
Carrying
amount
EUR '000
As at 01.01.2010 91,227 – 89,327 1,900
As at 31.12.2010 91,227 – 89,327 1,900
Changes in the scope of consolidation 3,017 – 3,107
Currency translation 361 – 361
As at 31.12.2011 94,605 – 89,327 5,278
Other intangible assets
Acquisition
costs
EUR '000
Writedowns
EUR '000
Carrying
amount
EUR '000
As at 01.01.2010 25,328 – 17,556 7,772
Additions 1,495 – 2,569 – 1,074
Adjustments – – –
Transfers / IFRS 5 924 21 945
Disposals – 1,149 183 – 966
As at 31.12.2010 26,598 – 19,921 6,677
Changes in the scope of consolidation 1,039 – 1,039
Currency translation 124 3 127
Additions 2,455 – 2,758 – 303
Adjustments – 43 43 –
Transfers / IFRS 5 575 – 575
Disposals – 316 311 – 5
As at 31.12.2011 30,432 – 22,322 8,110

2. Tangible assets
Tangible assets are structured as follows.
Notes to the Consolidated Financial Statement | 2011
Some of the tangible assets are pledged as collateral on loans. The remaining aircraft in the tangible assets is chartered.
There is no intention to sell this aircraft.
Acquisition costs and write-downs developed as follows, categorized by group.
31.12.2011
EUR '000
31.12.2010
EUR '000
Undeveloped land 12,216 7,770
Developed land 342,091 368,434
Aircraft 5,792 188,861
Technical equipment, operating and business equipment 71,039 39,727
Payments on account, assets under construction, pre-construction costs 4,618 2,500
Undeveloped land
Acquisition
costs
EUR '000
Writedowns
EUR '000
435,756 607,292
Carrying
amount
EUR '000
As at 01.01.2010 12,598 – 873 11,725
Additions 8 – 3,720 – 3,712
Transfers – 1,775 1,773 – 2
Disposals – 241 – – 241
As at 31.12.2010 10,590 – 2,820 7,770
Changes in the scope of consolidation 3,971 – 3,971
Currency translation 475 475
As at 31.12.2011 15,036 – 2,820 12,216
As in the previous year, the transfer was the result of the reclassification of a plot of land held as “investment property”.
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Developed land
Acquisition
costs
EUR '000
Writedowns
EUR '000
Carrying
amount
EUR '000
As at 01.01.2010 475,198 – 113,366 361,832
Changes in the scope of consolidation – – –
Currency translation 348 – 308 40
Additions 6,300 – 10,970 – 4,670
Write-ups – – –
Transfers / IFRS 5 3,547 7,890 11,437
Disposals – 710 505 – 205
As at 31.12.2010 484,683 – 116,249 368,434
Changes in the scope of consolidation 10,291 – 10,291
Currency translation 930 – 78 852
Additions 1,735 – 9,049 – 7,314
Write-ups – – –
Transfers – 17,377 8,065 – 9,312
Disposals – 33,635 12,775 – 20,860
Stand 31.12.2011 446,627 – 104,536 342,091
The transfer of developed land during the financial year relates to land holdings in Munich already assigned to specific
development projects.
Aircraft
Acquisition
costs
EUR '000
Writedowns
EUR '000
Carrying
amount
EUR '000
As at 01.01.2010 547,893 – 306,394 241,499
Additions – – 8,543 – 8,543
Disposals – 134,473 90,378 – 44,095
As at 31.12.2010 413,420 – 224,559 188,861
Additions – – 8,431 – 8,431
Disposals – 294,753 157,055 – 137,698
Transfers / IFRS 5 – 99,347 62,407 – 36,940
As at 31.12.2011 19,320 – 13,528 5,792
The disposal resulted from the scheduled sale of 11 aircraft. The remaining four aircraft will be disclosed under transfer
/ IFRS 5 pending sale. The remaining asset is an aircraft currently chartered out and not available for sale.

Technical equipment, operating and
business equipment
Notes to the Consolidated Financial Statement | 2011
Acquisition
costs
EUR '000
Writedowns
EUR '000
Carrying
amount
EUR '000
As at 01.01.2010 176,615 – 129,262 47,353
Currency translation 2,578 – 1,922 656
Additions 5,742 – 13,113 – 7,371
Transfers / IFRS 5 3,001 – 3,447 – 446
Disposals – 8,567 8,102 – 465
As at 31.12.2010 179,369 – 139,642 39,727
Changes in the scope of consolidation 22,898 – 22,898
Currency translation 2,993 – 490 2,503
Additions 15,031 – 14,284 747
Adjustments 1,241 – 870 371
Write-ups – – –
Transfers 6,367 – 774 5,593
Disposals – 13,113 12,313 – 800
As at 31.12.2011 214,786 – 143,747 71,039
By and large, the transfers (reclassification from “assets under construction”) relate to the completion of renovation
work in several German hotels and the implementation of IT-TV and high-speed Internet access.
Payments on account, assets under construction,
pre-construction costs
Acquisition
costs
EUR '000
Writedowns
EUR '000
Carrying
amount
EUR '000
As at 01.01.2010 124,124 – 723 123,401
Additions 31,267 – 109 31,158
Transfers – 152,007 – – 152,007
Disposals – 52 – – 52
As at 31.12.2010 3,332 – 832 2,500
Additions 8,642 – 8,642
Write-up – 8 – – 8
Transfers – 6,337 – – 6,337
Disposals – 180 – – 180
As at 31.12.2011 5,449 – 832 4,617
Non-scheduled write-downs and write-ups on tangible assets totaled EUR 659,000 (previous year: EUR – 1.827 million).
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3. Investment property
The balance-sheet amount can be divided as follows.
31.12.2011
EUR '000
31.12.2010
EUR '000
Land with residential buildings 154,986 158,995
Land with offices and other buildings 1,552,455 1,400,579
Buildings on third-party land 250 250
Land with building leases 42,025 34,310
Assets under construction 511 –
1,750,227 1,594,134
Investment property is measured at fair value. Measurement of fair value is based on the discounted cash flow (DCF)
method according to the International Valuation Standards, via which present values are calculated dynamically. Taxes,
capital costs, and any block discounts or surcharges are ignored.
The carrying amounts developed as follows.
2011 2010
EUR '000 EUR '000
Value at 01.01. 1,594,134 1,466,680
Additions 43,531 11,815
Transfers – 1,920 141,054
Disposals – 5,825 – 53,952
Change in market value 120,307 28,537
Value at 31.12. 1,750,227 1,594,134
The additions in the reporting year resulted mainly from construction costs for new builds on land in our portfolio
in Munich and Berlin. The disposals relate largely to the sale of a property in Munich and – in the previous year – a
property in Frankfurt. The transfers in 2010 came mainly from the THE m.pire property, which was reclassified on the
books from a fixed asset to “investment property”.
By the end of the year, significant contractual obligations to buy, construct or develop investment property existed on
the usual scale. On the balance-sheet date, the group held investment property secured by mortgages to the value of EUR
1.515 billion (previous year: EUR 1.147 billion).
Rental income of EUR 93.416 million (previous year: EUR 96.797 million) was generated from the property. The
principal underlying contracts, some of which feature renewal options, are usually concluded for a term of between
five and fifteen years.
Opposing the rental income are directly attributable costs of EUR 33.316 million (previous year: EUR 40.402 million).

4. Equity-accounted participating interests
The equity-measured interests are as follows, arranged by division.
Notes to the Consolidated Financial Statement | 2011
31.12.2011 31.12.2010
EUR '000 EUR '000
Beverages division 134,244 132,555
Hotels division 836 3,997
Construction & Real Estate division 1 1,551
135,081 138,103
Participating interests are measured according to the proportional equity of the subsidiary. The income of EUR 9.188
million (previous year: EUR 10.458 million) resulting from the updated carrying values of participating interests was
recognized in the income statement under income from equity-accounted interests.
The aggregated financial information for the associates was as follows.
31.12.2011 31.12.2010
EUR '000 EUR '000
Assets 631,444 674,044
Liabilities 410,787 444,204
Proceeds 591,141 602,190
Profit or loss for the period 7,046 12,620
In the reporting year, it was decided to dispose of assets in aovo Touristik AG and design hotels AG and to disclose
these as “held-for-sale” assets effective 31 December 2011. A contract of sale had already been signed for the shares
in design hotels AG prior to the balance-sheet date. Transfer of the ownership rights, rewards and obligations arising
from the real estate will probably take place in 2012.
Due to regulations set out in the German Securities Trading Act, it is not possible to provide current figures for aovo
Touristik AG. The amounts shown above were taken from the company’s management report dated October 2011,
which contains the results for January to October 2011. The financial information of all other equity-accounted companies
listed refer to an effective date of 31 December 2011.
5. Other financial assets
31.12.2011 31.12.2010
EUR '000 EUR '000
Equity interests in affiliates 191 167
Other participating interests 21 42
Securities held as fixed assets 1,251 1,193
Other loans 303 303
Carrying amount 1,766 1,705
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6. Deferred tax assets
Please refer to the section on accounting and valuation methods and the notes to the income statement under II.A.8 for
an explanation of deferred tax assets.
7. Inventories and biological assets
31.12.2011 31.12.2010
EUR '000 EUR '000
Raw materials and supplies 5,126 3,210
Undeveloped land 37,059 25,791
Pre-construction costs 9,541 1,265
Biological assets 47,817 –
Land with unfinished buildings 80,387 28,613
Land with finished buildings 61,628 43,775
Other 29,335 12,874
270,893 115,528
Of which non-current 9,693 –
The unfinished goods and services relate mainly to building land intended for sale. In past years, write-downs on
unfinished goods and services totaling EUR 1.572 million have been undertaken for reasons of commercial prudence
pending adoption of the new construction plan for Palma de Mallorca. The adjustments relate to the Puigforfila land
holding.
Write-downs on inventories totaling EUR 124,000 (previous year: EUR 4.238 million) and write-ups of EUR 1.479
million (previous year: EUR 0) were undertaken in the context of loss-free valuation and disclosed under “cost of
sales”.
The structure and development of the biological assets is as follows.
31.12.2011 01.07.2011
TEUR TEUR
Salar, Coho, salmon trout 38,123 32,652
Eggs, smolts 9,693 3,975
47,816 36,627
Unit of Production Fair-value
Total
measurement
costs adjustment
Biomass as at 31.12.2011
EUR '000 EUR '000 EUR '000
Saltwater (short-term) 12,056,500 kg 36,342 1,781 38,123
Freshwater (long-term) 23,654,585 Units 9,693 – 9,693
46,035 1,781 47,816

Notes to the Consolidated Financial Statement | 2011
2011
EUR '000
Biological assets on 01.07. 36,627
Additions 61,654
Sales / disposals – 59,135
Fair-value adjustment based on live weight 8,670
Biological assets on 31.12. 47,816
8. Trade-account receivables
31.12.2011
EUR '000
31.12.2010
EUR '000
Receivables from the disposal of land holdings 7,544 9,206
Receivables from general contracting 538 591
Receivables from rental agreements 1,170 1,045
Other trade-account receivables 34,357 22,001
Gross amount 43,609 32,843
Less individual value adjustments – 3,607 – 3,196
Carrying amount 40,002 29,647
The individual value adjustments developed as follows.
2011 2010
EUR '000 EUR '000
As at 01.01. 3,196 3,689
Exchange rate fluctuations – 4 – 1
Usage – 627 – 836
Release – 213 – 347
Additions 1,255 691
As at 31.12. 3,607 3,196
A broad customer base that does not lend itself to correlation means that there is no significant concentration of credit
risk. In addition, as in the previous year, there are no financial receivables that are past due date and not impaired.
Trade-account receivables will include future receivables from construction contracts in cases where the manufacturing
costs incurred including shares of profits exceed the advance payments received. This was not the case in 2011.
The trade-account receivables include receivables amounting to EUR 7.410 million (previous year: EUR 8.085 million)
pledged as collateral for overdraft facilities.
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9. Tax refund claims
31.12.2011 31.12.2010
EUR '000 EUR '000
Corporation tax 460 279
Trade tax 513 163
973 442
10. Other receivables and assets
31.12.2011 31.12.2010
EUR '000 EUR '000
Receivables from shareholders 756 –
Receivables from subsidiaries and related parties 5,424 13,391
Receivables from the disposal of land holdings – 4,454
Sales tax / other taxes 4,554 4,453
Creditors with debit balances 2,717 3,443
Advance commission payments 3,243 2,454
Exim fee – 1,621
Other receivables. accruals 9,753 6,147
Gross amount 28,681 35,963
Less individual value adjustments – 2,799 – 3,518
Carrying amount 25,882 32,445
Of which non-current 10,038 7,116
The value adjustments developed as follows.
2011 2010
EUR '000 EUR '000
As at 01.01. 3,518 3,908
Exchange rate fluctuations – 62 – 1
Usage – 617 – 723
Release – 64 – 216
Additions 24 550
As at 31.12. 2,799 3,518
Other receivables and assets include receivables amounting to EUR 0 (previous year: EUR 4.454 million) pledged as
collateral for overdraft facilities.

11. Cash and cash equivalents
12. Equity capital
Notes to the Consolidated Financial Statement | 2011
31.12.2011 31.12.2010
EUR '000 EUR '000
Cash in hand 349 474
Deposits with credit institutions 275,027 214,673
275,376 215,147
According to IAS 32 (revised), limited partners’ capital, joint provisions and the profit for the year are recognized in
IFRS equity. The group’s equity capital is structured as follows.
31.12.2011 31.12.2010
EUR '000 EUR '000
Limited partners’ capital 92,033 92,033
Provisions 1,062,980 1,037,470
Consolidated result 104,405 60,236
Shares of other shareholders 365 1,319
1,259,783 1,191,058
In addition to payments from shareholders and the compensatory item for currency translation, the provisions include
the cumulative results as well as unrealized profits and losses net of deferred taxes.
The consolidated result reported in the income statement includes minority interests.
SHKG does not have to comply with any laws on capital adequacy. Within the framework of its capital structure management
program, the group strives to maintain an adequate equity ratio, which was 41.4 % on the balance-sheet date
(previous year: 41.8 %).
13. Deferred tax liabilities
Please refer to the section on accounting and valuation methods and the notes to the income statement under II.A.8 for
an explanation of deferred tax liabilities.
14. Provisions for pensions
Provisions for pension obligations are set up on the basis of pension commitments relating to retirement, invalidity and
surviving dependants, and comprise obligations arising from pension benefits and for ongoing payments to eligible
active and former employees. Obligations arising from occupational retirement benefits are measured according to the
Projected Unit Credit Method pursuant to IAS 19, whereby future obligations are measured on the basis of the benefit
entitlements acquired up to the balance-sheet date.
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Obligations are calculated based on the following individual actuarial assumptions.
31.12.2011 31.12.2010
Future wage / salary increases 3.00 % 3.00 %
Future pension increases 2.00 % 2.00 %
Guaranteed interest rate 4.80 % 4.60 %
Fluctuation rate 0.00 % 0.00 %
The fluctuation rate for the Spanish subsidiaries was 5 % on the balance-sheet date. Biometric mortality rates were
calculated on the basis of the 2005 G mortality tables compiled by Prof. Dr. Klaus Heubeck. Pension provisions for
the last five balance-sheet dates were calculated as follows based on the present value of the anticipated defined
benefit obligations.
31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007
EUR '000 EUR '000 EUR '000 EUR '000 EUR '000
Present value of defined benefit
obligations (DBO) 47,907 50,050 47,307 40,449 45,326
Unrecognized actuarial gains and
losses – 2,592 – 4,908 – 1,797 6,581 2,901
Provisions for pensions 45,315 45,142 45,510 47,030 48,227
Actuarial gains and losses arise from portfolio changes and deviations of the actual trends from the original calculation
parameters. These gains and losses are not recognized as income or expense unless they exceed 10 % of
the maximum of the cash value of the accrued pension claims or the fair value attributable to the plan assets. In
accordance with the provisions set out in IAS 19, this maximum amount is allocated over the expected average remaining
working lives of the employees and recognized as appropriate in the balance sheet and income statement.
The following amounts were recognized in the income statement.
2011 2010
EUR '000 EUR '000
Current service expense for services provided by employees – 458 87
Interest charges 2,265 2,408
Disposals – 43 – 55
Recognized actuarial gains / losses 1,528 420
3,292 2,860
The interest expenses included in pension costs are allocated to the individual function areas or to “other operating
expenses”.

Pension provisions recognized in the balance sheet changed as follows:
15. Financial Liabilities
Notes to the Consolidated Financial Statement | 2011
2011 2010
EUR '000 EUR '000
Provisions for pensions as at 01.01. 45,142 45,510
Pension plan expenses 3,292 2,860
Disposals – –
Pension payments – 3,120 – 3,228
Provisions for pensions as at 31.12. 45,271 45,142
31.12.2011 31.12.2010
EUR '000 EUR '000
Non-current 960,675 937,346
Current 308,910 258,004
1,269,585 1,195,350
The financial liabilities as at 31 December 2011 mainly comprise payables to banks. Of these, EUR 1,225.332 million (previous
year: EUR 1,095.973 million) is secured by mortgage, EUR 0 (previous year: EUR 79.221 million) by registered liens with regard
to aircraft, and EUR 4.510 million (previous year: EUR 8.963 million) via the pledging of bank-guaranteed promissory notes. For
the most part, the current and non-current bank loans are subject to fixed rates of interest. The other loans are subject to variable
interest rates which are, in part, hedged against the risk of interest rate fluctuations via interest rate swaps.
16. Trade-account payables
The balance-sheet amount can be spread across the divisions as follows.
31.12.2011 31.12.2010
EUR '000 EUR '000
Construction & Real Estate division 8,416 9,909
Hotels division 4,224 13,549
Seafood division 30,807 –
Other 3,447 2,705
46,894 26,163
17. Income taxes
31.12.2011 31.12.2010
EUR '000 EUR '000
Provisions for taxation 2,126 5,220
Liabilities from corporation tax – 1
2,126 5,221
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18. Other liabilities
31.12.2011 31.12.2010
EUR '000 EUR '000
Shares of outside shareholders 131,576 116,470
Liabilities with regard to subsidiaries and related parties 45,828 40,003
Liabilities arising from the purchase of land 1,577 26,393
Advances received from purchasers 83,226 16,697
Liabilities with regard to shareholders 31,866 16,479
Other advances received 5,874 4,416
Liabilities with regard to sales tax and other taxes 6,748 4,565
Prepayments and accrued income 4,632 3,451
Other trade liabilities 2,288 2,409
Debtors with credit balances 300 594
Other liabilities 8,151 4,303
322,066 235,780
Of which non-current 12,036 3,876
The IASB has clarified that minority interests in subsidiary partnerships must be treated as borrowed capital (liabilities)
within the group. By the same token, interests held by outside shareholders must be disclosed at fair value under
“other liabilities”. The fair value is the market value of the payment obligation in the case of termination of the interests
at the corresponding balance-sheet date .
19. Other provisions
The non-current provisions are mainly liabilities with terms of up to five years, and consist of the following.
31.12.2011 31.12.2010
EUR '000 EUR '000
Reserve rates – 16,501
Guarantees 5,239 4,955
Rental guarantees 823 3,433
Prime tenancies 1,784 3,239
Employee anniversary obligations 2,040 1,799
Early retirement – 283
Other – 2,651
9,886 32,861

The other provisions developed as follows in the course of the financial year.
01.01.2011
EUR '000
Notes to the Consolidated Financial Statement | 2011
Usage
EUR '000
Release
EUR '000
Additions
EUR '000
31.12.2011
EUR '000
Construction costs 10,335 – 3,851 – 1,304 3,124 8,304
Employee-related obligations 12,888 – 10,903 – 2,053 12,651 13,205
Reserve rates 21,255 – 23,604 – 1,264 3,613 –
Rental guarantees, prime tenancies 14,243 – 2,860 – 4,622 1 6,762
Final payments 2,668 – 2,681 – 13 –
Outstanding invoices 10,655 – 8,689 – 584 9,741 11,123
Early retirement 854 – 764 – 509 599
Guarantees 10,733 – 2,688 – 300 2,924 10,669
Employee anniversary obligations 1,802 – 69 – 183 539 2,089
Other 13,792 – 8,030 – 2,505 5,672 9,039
Total 99,225 – 64,139 – 12,815 38,787 61,790
Usage in the course of the business year include transfers amounting to EUR 6.647 million (previous year: 3.179
million) resulting from reclassification in line with IFRS 5. The additions in the course of the business year include
accrued interest (compounding) of EUR 3.675 million (previous year: EUR 2.486 million). The change in the discount
rate compared with the previous year resulted in a drop in income of EUR 14,000 (previous year’s fall in income: EUR
430,000).
20. Financial instruments
The abbreviations used in this section are as follows.
Measurement category under IAS 39 Abbreviation
Loans and receivables A-LR
Held-to-maturity-investments A-HM
Available-for-sale financial assets A-AS
Financial assets at fair value through profit or loss A-FV
Financial liabilities measured at amortized cost L-AC
Financial liabilities at fair value through profit or loss L-FV
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The table below shows how financial assets and liabilities and certain items on the balance sheet are assigned to IAS 39
valuation categories, along with the appropriate carrying amounts and fair values.
Balance-sheet item as at 31.12.2011
The previous year resulted in the following assignment.
Measurement
category
under IAS 39
EUR '000
Carrying
amount
EUR '000
Fair value
EUR '000
Other financial assets A-AS 655 655
Other financial assets A-LR 303 303
Other financial assets A-FV 615 615
Other financial assets A-HM 191 191
Trade-account receivables A-LR 40,002 40,002
Other receivables and assets A-LR 17,629 17,629
Cash n. a. 275,376 275,376
Financial liabilities L-AC 1,241,234 1,302,580
Trade-account payables L-AC 46,895 46,895
Other liabilities L-AC 101,348 101,348
Derivatives with hedge relationship n. a. 4,727 4,727
Derivatives without hedge relationship L-FV 23,624 23,624
Balance-sheet item as at 31.12.2010
Measurement
category
under IAS 39
EUR '000
Carrying
amount
EUR '000
Fair value
EUR '000
Other financial assets A-AS 654 654
Other financial assets A-LR 303 303
Other financial assets A-FV 581 581
Other financial assets A-HM 167 167
Trade-account receivables A-LR 29,647 29,647
Other receivables and assets A-LR 12,267 12,267
Cash n. a. 215,147 215,147
Financial liabilities L-AC 1,175,547 1,208,784
Trade-account payables L-AC 26,163 26,163
Other liabilities L-AC 171,441 171,441
Derivatives with hedge relationship n. a. 4,351 4,351
Derivatives without hedge relationship L-FV 15,452 15,452

Notes to the Consolidated Financial Statement | 2011
Summarized in accordance with IAS 39 measurement categories, the following picture emerges for the carrying values.
31.12.2011 31.12.2010
EUR '000 EUR '000
Loans and receivables (A-LR) 57,934 42,217
Held-to-maturity investments (A-HM) 191 167
Available-for-sale financial assets (A-AS) 655 654
Financial assets at fair value through profit or loss (A-FV) 615 581
Financial liabilities measured at amortized cost (L-AC) 1,389,477 1,373,151
Financial liabilities at fair value through profit or loss (L-FV) 23,624 15,452
As cash and cash equivalents, trade-account receivables, other assets, and trade-account payables and other liabilities
predominantly have short residual terms, their carrying amounts at the balance-sheet date correspond to the fair value.
The fair values of financial liabilities with regard to banks are calculated as the net present value of the payments associated
with the liabilities, based on the relevant yield curve in each case. The fair value of derivatives in existence on
31 December 2011 is based on the market values of comparable financial instruments at the balance-sheet date, i.e. on
inputs other than price, but which can nonetheless be indirectly monitored. Interest rate swaps are measured according
to level 2 of the hierarchy for the fair-value measurement of financial instruments.
Liabilities in category L-FV (financial liabilities at fair value through profit or loss) were designated as such
“upon initial recognition”.
The following net results were recorded for the various measurement categories.
2011 2010
EUR '000 EUR '000
Income through use of the fair-value option (derivatives)
Other operating income from assets of categories A-LR, L-AC
– 8,139 – 11,285
Impairments – 132 – 1,023
Reversals 258 453
Exchange rate fluctuations – 108 – 17,062
Collection of receivables written off 112 –
Write-offs – 592 – 832
– 8,601 – 29,749
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The residual terms of the financial liabilities are as follows.
31.12.2011 31.12.2010
EUR '000 EUR '000
Up to 1 month 51,620 22,965
1 to 3 months 4,409 31,941
3 to 12 months 252,882 203,098
1 to 5 years 550,888 787,042
Over 5 years 409,786 150,304
1,269,585 1,195,350
Trade-account payables and other liabilities predominantly have short residual terms.
The group expects to pay the following interest on its financial liabilities during the residual terms of its loans.
31.12.2011 31.12.2010
EUR '000 EUR '000
Effective interest rate 3,83 % 3,98 %
Up to 6 months 26,547 24,877
6 to 12 months 28,190 20,900
1 to 2 years 44,343 40,454
2 to 5 years 81,805 50,390
Over 5 years 47,685 14,354
228,570 150,975
The interest payment forecast is based on the relevant yield curve valid at the balance-sheet date. The other financial
liabilities do not trigger interest payments.
Up to 2010, the lion’s share of the group’s business was transacted in eurozone countries. Exchange rate fluctuations
had an impact on equity and income only with respect to BIAL. However, disclosure of the Aircraft Leasing division
as a discontinued operation on the balance sheet and the resulting drop in business activity mean that the effect on the
holding will be negligible from 2011 on. Since July 2011, however, the business activity of the group’s Chilean subsidiaries
has meant that exchange rate fluctuations have begun to affect group equity and income. A 10 % rise in the USD /
EUR exchange rate would cause the result for the financial year to improve by EUR 8,000 (previous year: EUR 8.218
million), whereas a 10 % fall would cause the result to deteriorate by EUR 91.000 (previous year: EUR 10.042 million).
Aggregated across all group divisions, a 1 % rise in interest rates would cause the result for the financial year to improve
by EUR 8.357 million (previous year: EUR 11.082 million), while a 1 % reduction would cause the result to
deteriorate by EUR 8.788 million (previous year: EUR 11.867 million). In both cases, equity capital would be directly
affected to the tune of EUR + 1.813 million and EUR – 1.943 million respectively. The effect on the holding and its
direct subsidiaries would be negligible.

C. Notes to the cash flow statement
Notes to the Consolidated Financial Statement | 2011
The cash flow statement shows the payment streams for the business year and the previous year, categorized by cash
used and received for operating, investing and financing activities. Effects of changes to the group and to foreign exchange
rates on cash flows are shown separately.
The “cash flow-relevant change in net working capital” item relates to changes in inventories, trade-account
receivables, and other assets and liabilities, less non-interest-bearing liabilities.
Interest received of EUR 2.058 million (previous year: EUR 2.953 million) and interest paid of EUR 53.546 million
(previous year: EUR 60.806 million) are allocated to business operations, as are income tax refunds of EUR 72.000
(previous year: EUR 81.000) and income tax paid of EUR 2.923 million (previous year: EUR 4.078 million).
Investment activities comprise disbursements for additions to intangible assets, as well as proceeds from the sale of
such assets.
Cash flow from financing activities comprises payments to shareholders, as well as financial liabilities redeemed or
newly raised with banks and affiliates.
The cash fund (cash and cash equivalents) includes checks, cash in hand and credit with banks (liquid assets), and is
divided into ongoing and discontinued business operations.
31.12.2011 31.12.2010
EUR '000 EUR '000
Ongoing operations 275,376 215,147
Discontinued operations 15,096 17
290,472 215,164
Cash amounting to EUR 7.077 million (previous year: EUR 23.923 million) is not at the group’s disposal.
In the business year under review, the net cash flows were divided into ongoing and discontinued business operations
as follows.
Ongoing
operations
Discontinued
operations
EUR '000
EUR '000
EUR '000
Cash flow from
Business operations – 57,263 – 2,647 – 59,910
Investment operations – 35,085 185,642 150,557
Financing operations 71,136 – 91,930 – 20,794
– 21,212 91,065 69,853
Total
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The break-down for the 2010 financial year was as follows, taking the Aircraft Leasing division into account.
Cash flow from
III. Other disclosures
Ongoing
operations
EUR '000
A. Contingent liabilities, other financial obligations
Contingencies arising from bill commitments, guarantees, warranty agreements and comparable circumstances
existed to the tune of EUR 14.006 million (previous year: EUR 21.920 million) at the balance-sheet date.
Contingencies with regard to consolidated subsidiaries did not exist.
Other financial obligations amounting to EUR 309.806 million (previous year: EUR 274.896 million) predominantly
related to rental and lease agreements.
The liabilities arising from leasing and rental agreements are as follows, arranged by due date.
Rent payments from operating leasing agreements are included in the functional expenses.
The following additional obligations exist with regard to finance leasing agreements.
The finance leasing agreements mainly relate to technical equipment and furniture.
Discontinued
operations
EUR '000
Total
EUR '000
Business operations 101,911 18,664 120,575
Investment operations – 55,063 49,001 – 6,062
Financing operations 69,156 – 87,031 – 17,875
116,004 – 19,366 96,638
2011
EUR '000
2010
EUR '000
Due in one year or less 18,866 14,829
Due in more than 1 but less than 5 years 86,738 80,960
Due in over 5 years 204,202 179,107
Minimum lease
payment
EUR '000
Present value
EUR '000
309,806 274,896
Discount
EUR '000
Due in one year or less 1,890 1,609 281
Due in more than 1 but less than 5 years 4,435 4,143 291
6,324 5,752 572

Notes to the Consolidated Financial Statement | 2011
The following obligations existed with regard to finance leasing agreements in the previous year.
Minimum lease
payment
Present value
Discount
EUR '000
EUR '000
EUR '000
Due in one year or less 234 226 8
Due in more than 1 but less than 5 years 30 27 3
264 253 11
Within the context of its business activities, the group is involved in court litigations. These are not, however, expected
to have any significant negative impact on its earnings, assets and financial position. The net carrying amounts of
leased assets amounted to EUR 2.541 million.
B. Notes to the leasing agreements
The group operates as lessor of the aircraft on its balance sheet. At the balance-sheet date, forward minimum lease
payments from operating leasing relationships without early cancellation rights were as follows.
2011 2010
EUR '000 EUR '000
Due in one year or less 5,970 27,386
More than 1 but less than 5 years 5,565 85,731
Over 5 years – 23,741
11,535 136,858
Rental payments of EUR 20.312 million (previous year: 34.595 million) were recognized as income in the reporting period.
C. Financial instruments and risk management
In the course of its business operations and on account of the financial instruments it uses, the group faces various
kinds of risk. These include market risks (pricing risks), as well as credit and liquidity risks. Financial instruments
include financial assets and liabilities, as well as contractual entitlements and liabilities relating to the exchange or
transfer of financial assets.
Primary financial instruments on the assets side of the balance sheet include liquid assets, trade-account receivables
and financial investments, while on the liabilities side, financial instruments include liabilities to banks, trade-account
payables and other liabilities.
Market risks affecting the group mainly concern the risks pertaining to fluctuations in interest rates and foreign currency
exchange rates. Where variable interest rates have been agreed for trade-account payables and bank loans, there
exists the possibility that interest rates will rise as well as fall, leading to higher interest payments and charges.
Changes to the market interest rate applicable to fixed-interest primary financial instruments are recognized in profit
and loss only if the instruments are carried at fair value. Thus, all fixed-interest financial instruments carried at amortized
cost are not subject to interest rate risks within the meaning of IFRS 7. The pricing risks pertaining to the loans
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98
portfolio are determined with the aid of a risk assessment system on the basis of current interest rates. Various measures
are taken to limit risk, such as separating trading, administration, accounts and control processes in the organizational
sense, and ongoing reporting of relevant events on the basis of market values and interest risks within the framework of
the risk management system. Furthermore, interest rate risks are to some extent limited by hedging transactions. Based
on an assessment of the risk, the divisions also make use of select derivative instruments.
By the closing date, the group’s Construction & Real Estate division had concluded interest hedging agreements with
a nominal value of EUR 243 million. The interest hedging agreements have a negative market value of EUR – 23.624
million (previous year: EUR – 15.452 million) recorded under “liabilities from swap transactions”. In Spain, the Hotels
division has concluded interest rate swaps in order to hedge the interest rate risk and these are carried as cash flow
hedges. The fair value of all hedging transactions in existence on 31 December 2011 is negative, amounting to EUR
– 4.727 million (previous year: EUR – 4.351 million). This is based on the market values of comparable financial instruments
at the balance-sheet date. Effective changes in the fair values of derivatives are allocated to the consolidated
equity with a neutral effect on net income, while the ineffective part is recognized in profit or loss.
The international focus of our business activities calls for service transactions and cash flows to be effected in foreign
currencies. This gives rise to a certain risk of loss because assets held in a foreign currency will lose value as the exchange
rate falls, while liabilities payable in a foreign currency become more expensive as the rate increases. Group
business in countries outside the eurozone is kept to a minimum and this has a corresponding effect on the currency
risk. In addition, we regularly evaluate our net exposure to the currency risk, the aim being to maintain a balance between
income and expenditure in any foreign currency and thus minimize the effect of fluctuations in exchange rates.
Where necessary, we use suitable derivative financial instruments to hedge currency risks. By and large, the group’s net
assets tied in companies outside the eurozone are not hedged against fluctuations in currency exchange rates.
In order to compensate for any exchange rate fluctuations arising from the transfer of capital in the wake of the discontinuation
of operations in South Africa, AHSE (formerly AHGKG) concluded a forward foreign exchange contract.
As neither the scale nor the timing of the capital transfer could be determined with certainty and, thus, the criteria for
designation as a hedge relationship did not exist, any changes in fair value were recognized fully in the income statement.
The fair value of the forward foreign exchange transaction on 31 December 2010 was EUR – 3.679 million and
was disclosed under the result from discontinued operations. In 2011. this resulted in income of EUR 4.640 million,
which was also posted under discontinued operations.
Generally, however, derivative financial instruments are used exclusively for hedging purposes in the context of interest
rate and currency management, not for trading or speculation. To reduce the risk of counterparty default, we
close transactions with select banks only. With regard to interest rate risks, please refer to the information on interest
payments and the analysis of sensitivity to interest rate changes contained in Section II.B.20 “Financial instruments”.
As the lion’s share of our business is transacted in eurozone countries, the exchange rate risk is insignificant.
Credit risk relates to the potential for debtor default and any deterioration in credit worthiness (downgrading). The
group limits this risk by placing high demands on the solvency of its counterparties. Outstanding trade balances are
monitored continuously on a decentralized basis, while potential default risks are accounted for by individual and
generalized value adjustments. The maximum default risk relates to receivables and financial assets and corresponds
to the carrying amounts in the balance sheet of these instruments. As well as financial planning based on a horizon of
several years, the group deploys a rolling system of liquidity planning to ensure that cash flows are permanently aligned
to outstanding payments in any given period. Furthermore, prudent liquidity management ensures that the group
has adequate credit lines at its disposal to meet unexpected payment obligations at any time.

D. Employees
Notes to the Consolidated Financial Statement | 2011
The group’s annual average headcount was 4,091 (previous year: 2,843). The increase in staff is largely due to the new
Seafood division. Taking this new division into account, personnel expenditure was as follows for the period up to
1 July 2011.
2011 2010
EUR '000 EUR '000
Wages and salaries 113,632 106,872
Social insurance contributions and voluntary social benefits 22,755 21,652
136,387 128,524
In accordance with IAS 19.46, the data on social insurance contributions include contributions to occupational pension
schemes.
E. Related-party disclosures
SHKG generated the following business volumes in conjunction with related parties.
2011 2010
EUR '000 EUR '000
Goods and services received from subsidiaries 375 650
Goods and services supplied / rendered to subsidiaries 12,666 12,480
Receivables from shareholders 756 –
Liabilities to shareholders 31,886 16,479
Receivables from subsidiaries and related parties 5,424 13,391
Liabilities to subsidiaries and related parties 45,828 40,003
Business relations with related parties and companies are based on contractual agreements. Services are rendered at
terms that are customary for transactions with outside third parties.
Related-party transactions and receivables / liabilities with regard to subsidiaries mainly involve associates in the
Beverages division.
F. Management
In its capacity as general partner, Josef Schörghuber Stiftung, Munich is authorized and obliged to manage and represent
Schörghuber Stiftung & Co. Holding KG. The general partner receives remuneration totaling EUR 6,200 p.a. plus
expenses for carrying out these management duties and assuming overall liability for business operations.
99

100
The general partner maintains an executive board, the members of which are as follows:
■ Dr. Klaus N. Naeve, lawyer, from Munich, since 2 January 2009
(chairman since 12 March 2009)
■ Alexandra Schörghuber, businesswoman, from Munich, since 25 November 2008
■ Dr. Jürgen Büllesbach, engineer, from Unterfoehring near Munich, since 15 April 2009
■ Roland Tobias, business economist, from Bremen, since 1 August 2009
The members of the foundation board received emoluments totaling EUR 145,000 in the year under review (previous
year: EUR 167,000). The sum of EUR 5.864 million (previous year: EUR 5.279 million) was accrued in reserves to
cover pension commitments to former members of the executive board and their surviving dependants.
The management is exercising its right under Art. 286 para 4 of the German Commercial Code (HGB) not to disclose
the total emoluments of a former member of the foundation board. The members of the executive board received emoluments
totaling EUR 2.979 million (previous year: EUR 3.141 million) in the year under review.
G. Auditors' fees
The fees can be broken down as follows.
2011 2010
EUR '000 EUR '000
Auditing services in connection with the financial statements 471 635
Other certification services 14 11
Other services 11 2
496 648
H. Notes on affiliation to the parent group and on participatory
relationships
Participatory relationships are shown in the table below with an explanation of the abbreviations used.
P Parent company
PTA Profit-and-loss transfer agreement
F Fully consolidated company
N Non-consolidated subsidiary
E Associate consolidated “at equity”
P Participatory interest < 20 %, or without any material influence despite interest of > 20 %
EN Associate consolidated “at acquisition cost”

Notes to the Consolidated Financial Statement | 2011
Interest
%
Consolidation
Schörghuber Stiftung & Co. Holding KG P
1. Bayerische Hausbau GmbH & Co. KG, Munich 94.90 F
Bayerische Hausbau Projektentwicklung GmbH, Munich 100.00 PTA F
Lorenzistock GmbH, Munich 100.00 PTA F
Lokstedt Baufeld 2 GmbH & Co. KG, Hamburg 50.00 E
Lokstedt Baufeld 2 Beteiligungs GmbH, Hamburg 100.00 N
Bayerische Hausbau International GmbH, Munich 100.00 F
BHG Beruházó Kft., Budapest 100.00 F
BHG Hausbau Kft., Budapest 99.00 F
BHG München 2018 GmbH, Munich 100.00 N
Deutsche Hausbau GmbH & Co. KG, Munich 100.00 N
BHI Polska Sp. z. o. o., Warsaw 100.00 F
MOM-Bajor Kft., Budapest 50.00 N
MOM-Park Lakásépitö Bt., Budapest 49.90 E
HANSE HAUS GmbH, Oberleichtersbach 100.00 PTA F
Elementar-Bau GmbH, Oberleichtersbach 100.00 PTA F
HANSE HAUS CZ s. r. o., Prague 100.00 N
HANSE HAUS CH GmbH, Suhr 100.00 N
Come In-Haus GmbH, Oberleichtersbach 100.00 PTA N
Bayerische Hausbau Immobilien GmbH & Co. KG, Munich 89.82 F
BHG Gewerbe GmbH, Munich 100.00 F
RESET Beteiligungs GmbH & Co. Vermietungs-KG, Munich 47.00 E
Y-Fünfzehn Verwaltungs GmbH, Munich 100.00 F
Bayerische Hausbau Immobilien Management GmbH, Munich 100.00 F
BHG Wohnbau GmbH, Munich 100.00 F
BHG Skyline Tower GmbH & Co. KG, Munich 100.00 F
BHG Spielbudenplatz GmbH & Co. KG, Munich 100.00 F
BHG Vermietung GmbH, Munich 100.00 F
BHG E GmbH, Munich 100.00 F
Immo 2018 GbR, Munich 5.55 P
QMP Baufeld 6 GmbH & Co. KG, Munich 100.00 F
QMP Baufeld 8 GmbH & Co. KG, Munich 100.00 F
QMP Baufeld 9 GmbH & Co. KG, Munich 100.00 F
101

102
Interest
%
Consolidation
2. Brau Holding International GmbH & Co. KGaA, Munich 50.10 E
Paulaner Verwaltungs-GmbH, Munich 100.00
Brau Holding International Verwaltungs GmbH, Munich 100.00
Badische Brau Verwaltungs GmbH, Munich 100.00
Fürstlich Fürstenbergische Brauerei GmbH & Co. KG, Donaueschingen 100.00
Brauerei Gesellschaft, formerly Meyer & Söhne AG, Riegel 100.00 PTA
Biedermann Getränke Verwaltungs GmbH, Donaueschingen 60.00
Biedermann Getränke GmbH & Co. KG, Donaueschingen 60.00
Bodensee Rot-Weiß Getränke GmbH, Lindau 55.10
Privat-Brauerei Schmucker GmbH & Co. KG, Mossautal 100.00
Umhauer Getränke-Fachhandel GmbH i. L., Freiburg 100.00
FGS Getränke Service GmbH, Donaueschingen 100.00 PTA
Südstar Getränke GmbH, March 69.10
Privatbrauerei Hoepfner GmbH, Karlsruhe 100.00 PTA
Paulaner Brauerei GmbH & Co. KG, Munich 50.00 E
AuerBräu GmbH, Rosenheim 100.00 PTA
Chiemgauer Brauhaus GmbH, Rosenheim 100.00 PTA
Chiemgau Marken GmbH, Rosenheim 51.00
Fürstliche Brauerei Thurn und Taxis Vertriebsgesellschaft mbH,
Regensburg 95.00
Hacker-Pschorr Bräu GmbH, Munich 100.00 PTA
Interdrink Getränke-Vertriebs GmbH, Munich 100.00 PTA
BHI Vertriebsgesellschaft mbH, Munich 100.00 PTA
Paulaner USA LLC, Littleton, USA 75.00
Paulaner Bräuhaus Consult GmbH, Munich 100.00
Paulaner Brauhaus Singapore Pte. Ltd., Singapore 100.00
Paulaner Distribuzione S.r.l., Bolzano 100.00
Paulaner Finanz S.r.l., Bolzano 100.00
Weißbierbrauerei Hopf GmbH, Miesbach 100.00 PTA
Kulmbacher Brauerei AG, Kulmbach 63.29
Kulmbacher Getränke Beteiligungs GmbH & Co. KG, Kulmbach 100.00
Sternquell-Brauerei GmbH, Plauen 100.00 PTA
Braustolz GmbH, Chemnitz
Kulmbacher Getränke Beteiligungs- und Geschäftsführungs
100.00
GmbH, Kulmbach 100.00
Markgrafen Getränkevertrieb GmbH, Kulmbach 100.00 PTA
Bürgerliches Brauhaus Saalfeld GmbH, Saalfeld 23.00
Markgrafen Heimdienst GmbH, Kulmbach 100.00 PTA
Erfrischungs-Getränke Union GmbH, Kulmbach 100.00 PTA
Kulmbacher Kapuzinerbräu GmbH, Kulmbach 100.00

Notes to the Consolidated Financial Statement | 2011
Interest
%
Bad Brambacher Mineralquellen GmbH & Co. Betriebs KG,
Bad Brambach 85.00
Vogtländische Getränkeindustrie GmbH, Bad Brambach 100.00
Bad Brambacher Mineralquellen GmbH, Bad Brambach 85.00
Sohler Mineralbrunnen GmbH, Bad Brambach 100.00
Kulmbacher EKU Brauerei GmbH, Kulmbach 100.00
Kulmbacher Mönchshof-Bräu GmbH, Kulmbach 100.00 PTA
Zum Mönchshof-Bräuhaus GmbH, Brauereigaststätte, Kulmbach 100.00 PTA
Getränke Logistik SQ GmbH, Plauen 100.00
Kulmbacher Reichelbräu GmbH, Kulmbach 100.00
Kulmbacher Sandlerbräu GmbH, Kulmbach 100.00
Coburger Biervertrieb GmbH, Coburg 100.00
Schweizerhof Getränke GmbH, Kulmbach 100.00
Scherdel Bier Beteiligungs- und Geschäftsführungs GmbH, Hof 100.00
Scherdel Bier GmbH & Co. KG, Hof 100.00
Würzburger Hofbräu GmbH, Würzburg 100.00
Fürstliche Brauerei Schloss Wächtersbach Vertriebs GmbH,
Wächtersbach 100.00
Keiler Bier GmbH, Lohr am Main 100.00
NG Nordbayerische Getränkebeteiligung GmbH & Co. KG, Kulmbach 100.00
Consolidation
3. Arabella Hospitality SE, Munich 100.00 F
Arabella South Africa Holding (Pty.) Ltd., Cape Town 100.00 F
Arabella Western Cape Hotel & Spa (Pty.) Ltd., Cape Town 100.00 F
Arabella Grand Hotel (Pty.) Ltd., Cape Town 100.00 F
Kovacs Investment 458 (Pty.) Ltd., Cape Town 100.00 F
Kovacs Investment 177 (Pty.) Ltd., Cape Town 100.00 F
The River Golf Company (Pty.) Ltd., Cape Town 100.00 F
Arabella Hotel Holding GmbH, Munich 100.00 PTA F
Arabella Hoteles e Inversiones de España S.A., Palma de Mallorca 100.00 F
Arabella Hospitality España S.L., Palma de Mallorca 100.00 F
Son Vida S. A., Palma de Mallorca 19.00 P
Son Vida Golf S. L., Palma de Mallorca 100.00 F
Vibelba S. L., Palma de Mallorca 100.00 F
Agropecuaria Mallorquina S. A., Palma de Mallorca 51.00 F
Bayerische Hausbau Española S. L., Palma de Mallorca 100.00 F
Arabella Hotel Sachsen-Thüringen Besitz GmbH, Munich 100.00 F
Arabella Hotelbetriebe AG, Davos 100.00 F
ASH Hotels & Resorts GmbH i.L., Munich 51.00 F
Arabella Hotel Sachsen Besitz GmbH, Munich 100.00 F
design hotels AG, Berlin 49.82 E
103

104
Interest
%
Consolidation
aovo Touristik AG, Hanover 44.09 E
Golfpark Gut Häusern GmbH & Co. KG, Markt Indersdorf 40.00 E
4. Inversiones Stefal SpA, Puerto Montt, Chile 100.00 F
Productos del Mar Ventisqueros S. A., Puerto Montt, Chile 99.99 F
Inmobiliaria Aleste Ltda., Santiago de Chile, Chile 99.11 F
Alimentos Bahia Chincui, S. A., Santiago de Chile, Chile 99.99 F
5. b.i.t.s. GmbH, Munich 100.00 PTA F
6. Schörghuber Personalmanagement GmbH, Munich 100.00 PTA F
7. Bavaria International Aircraft Leasing GmbH & Co. KG, Grünwald 100.00 F
8. Paulaner Brau Beteiligungs GmbH, Munich 100.00 PTA F
9. Y-Sechzehn GmbH, Munich 100.00 F
10. Arabella Management GmbH, Hof 100.00 F
11. Bayerische Hausbau Management GmbH, Munich 100.00 F
12. Bavaria International Aircraft Leasing Management GmbH,
Munich
100.00 F
13. Schörghuber Corporate Finance GmbH, Munich 100.00 PTA F

I. Disclosure / Exemption
Notes to the Consolidated Financial Statement | 2011
SHKG’s consolidated financial statement and the group management report as at 31 December 2010 were prepared
according to IFRS accounting principles and submitted to the electronic version of the Federal Gazette (Bundesanzeiger)
prior to publishing on 25 October 2011.
The parent company, Schörghuber Stiftung & Co. Holding KG, Munich, and the following subsidiaries exercised
their right under Art. 264 para 3 and Art. 264 (b) of the German Commercial Code (HGB) not to present consolidated
financial statements.
■ Schörghuber Personalmanagement GmbH, Munich
■ Bavaria International Aircraft Leasing GmbH & Co. KG, Grünwald
■ Paulaner Brau Beteiligungs GmbH, Munich
■ b.i.t.s. GmbH, Munich
■ Schörghuber Corporate Finance GmbH, Munich
■ Arabella Hospitality SE, Munich
Official notice of the exercising of the above rights was published in the electronic version of the Federal Gazette
(Bundesanzeiger).
The consolidated financial statement and the group management report as at 31 December 2011 were released for
publication by the chairman of the executive board on 20 April 2012.
J. Events after the balance-sheet date
No events occurred after the balance-sheet date that had a material impact on the earnings, assets and financial position
of the group as detailed in the consolidated financial statement.
This report contains individual, forward-looking statements concerning the future course of business. These statements
are based on current assumptions and estimates which were carefully made on the basis of information available at the
present time. Due to residual risks and uncertainties, however, we cannot guarantee that the statements will ultimately
prove correct, either individually or in their entirety.
Munich, 13 April 2012
General Partner
Josef Schörghuber Stiftung, Munich
Dr. Klaus N. Naeve Alexandra Schörghuber Dr. Jürgen Büllesbach Roland Tobias
105

106
Auditors’ report
We have audited the consolidated financial statement prepared by Schörghuber Stiftung & Co. Holding KG, Munich –
comprising the income statement, the statement of recognized income and expenses, the balance sheet, the cash flow
statement, the statement of changes in shareholders’ equity, and the notes – as well as the group management report for
the business year 1 January to 31 December 2011. Preparation of the consolidated financial statement and the group
management report in accordance with International Financial Reporting Standards (IFRS), as applicable within the
EU, and with the provisions set out in Art. 315a para 1 of the German Commercial Code (HGB) as applicable, is the
responsibility of the legal representatives of the company. Our task is, on the basis of our audit, to make an assessment
of the consolidated financial statement and the group management report.
The consolidated financial statement has been audited in accordance with Art 317 of the German Commercial Code
(HGB) in compliance with the generally accepted auditing principles of the Institute of German Certified Public
Accountants (IDW). These provide that the audit must be planned and conducted in such a way that any inaccuracies
or non-compliances in the consolidated financial statement – drawn up in accordance with generally accepted accounting
principles – and in the group management report that might seriously distort the presentation of the company’s
earnings, assets and financial position, are detected with adequate certainty. The activities comprising the audit were
defined on the basis of the available knowledge of the group’s field of business, its legal and economic environment,
and areas where errors might be expected. In the course of the audit, the effectiveness of the group’s internal accounting
controls and the accuracy of the information contained in consolidated financial statement and group management
report are assessed mainly via random checks. The audit includes an assessment of the financial statements of the companies
included in the consolidated financial statement, the segregation of the consolidated group, the accounting and
consolidation principles used, and the significant estimates made by legal representatives, as well as an evaluation of
the general picture created by the consolidated financial statement and the group management report. We believe that
our audit represents a sufficiently reliable basis for assessment.
On the basis of our audit, we have no objections to raise.
According to our assessment based on the findings of our audit, the consolidated financial statement of Schörghuber
Stiftung & Co. Holding KG, Munich complies with International Financial Reporting Standards (IFRS), as applicable
within the EU, with the provisions set out in Art. 315a para 1 of the German Commercial Code (HGB), as applicable,
and with the complimentary rules laid down in the Articles of Association, and is a true and fair picture of the group’s
assets, earnings and financial position. The content of the group management report is in accord with the consolidated
financial statement. It is essentially a true reflection of the group’s present position, and is an accurate representation
of the opportunities and risks inherent in future developments.
Munich, 16 April 2012
Deloitte & Touche GmbH
Auditors
(Prof. Dr. Plendl) (Prosig)
Auditor Auditor

Published by
Notes to the Consolidated Financial Statement | 2011
Schörghuber Stiftung & Co. Holding KG · Communications & Marketing · Denninger Strasse 165 · D-81925 München
Phone +49 89 9238-543 · Fax +49 89 9238-603 · info@sug-munich.com · www.sug-munich.com
Photographs by Gisela Schregle: Annual Report, p. 4, p. 5, p. 7 · Seafood Special, p. 3, p. 4, p. 6 (top)
Text for Seafood Special: Dr. Marion Schweiker · Concept / design: acm Werbeagentur, Munich

Clearly something out of the ordinary has occurred
when finally the first Annual Report is placed
on the table. In our case, 55 years of success in
four business divisions serve as the basis for this
report, which provides a clear and concise summary
of the year 2011. It is an overview of facts
and figures, an insight into developments and
innovations, a look back at the extraordinary
achievements of our employees and a look
forward towards a strong and profitable future.