Annual Report 2009/10 Excellence in Retailing - Douglas Holding

INTERNAL CONTROL SYSTEM AND
KEY SUCCESS FACTORS
The Group aims to raise the business value on a sustained basis, particularly for sales
and earnings growth, as well as raising profitability. For purposes of value-oriented monitoring
of the required capital employment, the DOUGLAS Group applies an Economic
Value Added Analysis (EVA®) model, which has been adapted to the specific framework
conditions of a retail company – namely the DOUGLAS Value Added (DVA). The DVA measures
the contribution made by the operative companies to increase the business value.
DVA in fiscal year 2009/10
As a consequence of the positive sales and earnings performance of the 2009/10 fiscal
year, the DOUGLAS Group increased the DVA to 23.7 million EUR. Therefore, the preceding
year’s DVA was surpassed by 3.2 million EUR. In addition to the improved net operating
profit after taxes (NOPAT), the assets in use were reduced on the average for the reporting
year and consequently the capital costs were alleviated.
With a DVA of 33.6 million EUR, the Perfumeries division significantly surpassed the
prior year’s figure. This increase was mainly due to the improved NOPAT. It is noted here
that the substantially higher goodwill amortization year-on-year was not taken into account
in the determination of the NOPAT.
The Books division reported a negative value contribution of 5.1 million EUR for the
fiscal year. This decrease of 8.2 million EUR primarily relates to the challenging development
of the stationary book trade throughout the industry and the higher assets, which
Fig. 11 · Internal control factors and key performance indicators
2009/10 2008/09
Net sales EUR m 3,320.8 3,200.8
Gross profit EUR m 1,571.3 1,517.3
Margin in % 47.3 47.4
EBITDA EUR m 286.9 255.0
Margin in % 8.6 8.0
EBT EUR m 131.2 103.9
Margin in % 4.0 3.2
DVA EUR m 23.7 20.5
Delta-DVA EUR m 3.2 −13.6
Equity ratio in % 44.6 42.1
Working capital* EUR m 418.1 455.0
Net bank debt** EUR m 124.0 165.3
* Inventories and trade accounts receivable less trade accounts payable
** Liabilities to banks less cash and cash equivalents
Management Report
Key results
Business activities and operating environment
Net assets, financial position and result of operations
DOUGLAS HOLDING AG
Subsequent events
Control system and success factors
Opportunities and risks situation
Statutory disclosures
Forecast and overall assessment
Fig. 11
Fig. 12
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