ZEPPELIN GROUP CONTACTS
TRADING
Zeppelin Baumaschinen GmbH
Graf-Zeppelin-Platz 1
85748 Garching bei München
Germany
Phone +49 89 320 00-0
Fax +49 89 320 00-482
E-Mail: zeppelin@zeppelin.com
MVS Zeppelin GmbH & Co. KG
Graf-Zeppelin-Platz 1
85748 Garching bei München
Germany
Phone +49 89 320 00-220
Fax +49 89 320 00-222
E-Mail: info@mvs-zeppelin.de
Zeppelin Power Systems
GmbH & Co. KG
Ruhrstraße 158
22761 Hamburg
Germany
Phone +49 40 853 151-0
Fax +49 40 853 151-39
E-Mail: powersystems@zeppelin.com
This intermediate holding
is also your contact for
the following companies:
Phoenix Zeppelin, spol. s r.o.
Banskà Bystrica,
Republic of Slovakia
ČZ LOKO, a.s.
eska T ebová, Czech Republic
This intermediate holding
is also your contact for
the following companies:
Zeppelin Plast Tech S.r.l.
Milan, Italy
Zeppelin Systems Limited
Nottingham, UK
Zeppelin Polska Sp. z o.o.
Warsaw, Poland
JMB Zeppelin Equipamentos
Industriais Ltda.
São Paulo, Brazil
Zeppelin International AG
Chamerstraße 85,
6300 Zug, Switzerland
Phone +41 41 747 00 30
Fax +41 41 747 00 31
E-Mail: zeppelin@zeppelin-int.ch
Zeppelin Systems USA Inc.
Houston, U.S.A.
This intermediate holding
is also your contact for
the following companies:
Zeppelin Systems India Pvt. Ltd.
Mumbai, India
Zeppelin Belarus OOO
Minsk, Belarus
This company is also your
contact for:
Zeppelin Russland OOO
Moscow, Russia
Zeppelin Plastech Asia Pte. Ltd.
Singapore
Zeppelin SkySails Sales & Service
GmbH & Co. KG
Hamburg, Germany
Zeppelin Ukraine TOW
Kiev, Ukraine
Zeppelin Österreich GmbH
Zeppelinstraße 2
2401 Fischamend, Austria
Phone +43 2232 790-0
Fax +43 2232 790-262
E-Mail: marketing@zeppelin-cat.at
Repräsentanz Tadschikistan
Dushanbe, Tajikistan
Repräsentanz Usbekistan
Tashkent, Uzbekistan
2006
Trade
EUR m
2.208
2.080
1.735
Industry
EUR m
239
176
125
Group1
EUR m
2.447
2.257
1.860
5.304
4.518
3.973
669
603
561
5.973
5.121
4.534
311
247
221
130,6
124,2
Industry
Group
of which trainees
ANNUAL REPORT
Fixed assets
Additions
EUR m
149,7
Changes in consolidation group
EUR m
0,6
–
- 0,3
Depreciation
EUR m
54,3
48,6
47,4
36
37
38
% of additions
of which rental assets
Additions
EUR m
88,9
72,3
85,9
Changes in consolidation group
EUR m
0,0
–
–
Depreciation
EUR m
31,0
26,8
28,3
Results from ordinary activities
EUR m
101,2
119,1
77,0
Group net income
EUR m
65,4
71,4
41,7
Net cash flow
EUR m
170,0
148,0
126,4
Group equity
EUR m
394,4
341,1
273,6
Subscribed capital
EUR m
100,0
50,0
50,0
Capital reserves
EUR m
60,0
60,0
60,0
Revenue reserves
EUR m
140,6
131,6
106,4
Retained earnings of the Group
EUR m
83,0
89,9
50,2
Minority interests
EUR m
10,8
9,7
7,0
Zeppelin Gulf Co. Ltd.
Juaymah, Saudi Arabia
Zeppelin Technology
Far East Pte. Ltd.
Singapore
Zeppelin Turkmenistan JV
Ashgabat, Turkmenistan
2007
Employees (year average)
2008
Zeppelin Solid Technology
(Beijing) Co. Ltd.
Beijing, China
2008
Sales
Trade1
Zeppelin Belgium N. V.
Genk, Belgium
Zeppelin-Körös-Spedit Kft.
Budapest, Hungary
Zeppelin Armenia LLC
Yerevan, Armenia
ANNUAL REPORT 2008
Headquarters:
Graf-Zeppelin-Platz 1
85748 Garching bei München
Germany
Phone +49 89 320 00-0
Fax +49 89 320 00-482
E-Mail: zeppelin@zeppelin.com
Phoenix-Zeppelin, spol. s r.o.
Lipova 72, 25170 Modletice
Czech Republic
Phone +420 26 6015-200
Fax +420 26 6015-361
E-Mail: info@p-z.cz
INDUSTRY
Zeppelin Silos & Systems GmbH
Leutholdstraße 108
88045 Friedrichshafen,
Germany
Phone +49 7541 202-02
Fax +49 7541 202-491
E-Mail: zentral.fn@zeppelin.com
ZEPPELIN
ZEPPELIN GMBH
Registered Office:
Leutholdstraße 30
88045 Friedrichshafen
Germany
Phone +49 7541 202-201
Fax +49 7541 202-210
ZEPPELIN GROUP FACTSHEET
ZEPPELIN GMBH
Registered Office:
Leutholdstraße 30
88045 Friedrichshafen
Germany
Phone +49 7541 202-201
Fax +49 7541 202-210
Headquarters:
Graf-Zeppelin-Platz 1
85748 Garching bei München
Germany
Phone +49 89 320 00-0
Fax
+49 89 320 00-482
of which
zeppelin@zeppelin.com
www.zeppelin.de
1) incl. ZEPPELIN GmbH
ZEPPELIN GROUP CONTACTS
TRADING
Zeppelin Baumaschinen GmbH
Graf-Zeppelin-Platz 1
85748 Garching bei München
Germany
Phone +49 89 320 00-0
Fax +49 89 320 00-482
E-Mail: zeppelin@zeppelin.com
MVS Zeppelin GmbH & Co. KG
Graf-Zeppelin-Platz 1
85748 Garching bei München
Germany
Phone +49 89 320 00-220
Fax +49 89 320 00-222
E-Mail: info@mvs-zeppelin.de
Zeppelin Power Systems
GmbH & Co. KG
Ruhrstraße 158
22761 Hamburg
Germany
Phone +49 40 853 151-0
Fax +49 40 853 151-39
E-Mail: powersystems@zeppelin.com
This intermediate holding
is also your contact for
the following companies:
Phoenix Zeppelin, spol. s r.o.
Banskà Bystrica,
Republic of Slovakia
ČZ LOKO, a.s.
eska T ebová, Czech Republic
This intermediate holding
is also your contact for
the following companies:
Zeppelin Plast Tech S.r.l.
Milan, Italy
Zeppelin Systems Limited
Nottingham, UK
Zeppelin Polska Sp. z o.o.
Warsaw, Poland
JMB Zeppelin Equipamentos
Industriais Ltda.
São Paulo, Brazil
Zeppelin International AG
Chamerstraße 85,
6300 Zug, Switzerland
Phone +41 41 747 00 30
Fax +41 41 747 00 31
E-Mail: zeppelin@zeppelin-int.ch
Zeppelin Systems USA Inc.
Houston, U.S.A.
This intermediate holding
is also your contact for
the following companies:
Zeppelin Systems India Pvt. Ltd.
Mumbai, India
Zeppelin Belarus OOO
Minsk, Belarus
This company is also your
contact for:
Zeppelin Russland OOO
Moscow, Russia
Zeppelin Plastech Asia Pte. Ltd.
Singapore
Zeppelin SkySails Sales & Service
GmbH & Co. KG
Hamburg, Germany
Zeppelin Ukraine TOW
Kiev, Ukraine
Zeppelin Österreich GmbH
Zeppelinstraße 2
2401 Fischamend, Austria
Phone +43 2232 790-0
Fax +43 2232 790-262
E-Mail: marketing@zeppelin-cat.at
Repräsentanz Tadschikistan
Dushanbe, Tajikistan
Repräsentanz Usbekistan
Tashkent, Uzbekistan
2006
Trade
EUR m
2.208
2.080
1.735
Industry
EUR m
239
176
125
Group1
EUR m
2.447
2.257
1.860
5.304
4.518
3.973
669
603
561
5.973
5.121
4.534
311
247
221
130,6
124,2
Industry
Group
of which trainees
ANNUAL REPORT
Fixed assets
Additions
EUR m
149,7
Changes in consolidation group
EUR m
0,6
–
- 0,3
Depreciation
EUR m
54,3
48,6
47,4
36
37
38
% of additions
of which rental assets
Additions
EUR m
88,9
72,3
85,9
Changes in consolidation group
EUR m
0,0
–
–
Depreciation
EUR m
31,0
26,8
28,3
Results from ordinary activities
EUR m
101,2
119,1
77,0
Group net income
EUR m
65,4
71,4
41,7
Net cash flow
EUR m
170,0
148,0
126,4
Group equity
EUR m
394,4
341,1
273,6
Subscribed capital
EUR m
100,0
50,0
50,0
Capital reserves
EUR m
60,0
60,0
60,0
Revenue reserves
EUR m
140,6
131,6
106,4
Retained earnings of the Group
EUR m
83,0
89,9
50,2
Minority interests
EUR m
10,8
9,7
7,0
Zeppelin Gulf Co. Ltd.
Juaymah, Saudi Arabia
Zeppelin Technology
Far East Pte. Ltd.
Singapore
Zeppelin Turkmenistan JV
Ashgabat, Turkmenistan
2007
Employees (year average)
2008
Zeppelin Solid Technology
(Beijing) Co. Ltd.
Beijing, China
2008
Sales
Trade1
Zeppelin Belgium N. V.
Genk, Belgium
Zeppelin-Körös-Spedit Kft.
Budapest, Hungary
Zeppelin Armenia LLC
Yerevan, Armenia
ANNUAL REPORT 2008
Headquarters:
Graf-Zeppelin-Platz 1
85748 Garching bei München
Germany
Phone +49 89 320 00-0
Fax +49 89 320 00-482
E-Mail: zeppelin@zeppelin.com
Phoenix-Zeppelin, spol. s r.o.
Lipova 72, 25170 Modletice
Czech Republic
Phone +420 26 6015-200
Fax +420 26 6015-361
E-Mail: info@p-z.cz
INDUSTRY
Zeppelin Silos & Systems GmbH
Leutholdstraße 108
88045 Friedrichshafen,
Germany
Phone +49 7541 202-02
Fax +49 7541 202-491
E-Mail: zentral.fn@zeppelin.com
ZEPPELIN
ZEPPELIN GMBH
Registered Office:
Leutholdstraße 30
88045 Friedrichshafen
Germany
Phone +49 7541 202-201
Fax +49 7541 202-210
ZEPPELIN GROUP FACTSHEET
ZEPPELIN GMBH
Registered Office:
Leutholdstraße 30
88045 Friedrichshafen
Germany
Phone +49 7541 202-201
Fax +49 7541 202-210
Headquarters:
Graf-Zeppelin-Platz 1
85748 Garching bei München
Germany
Phone +49 89 320 00-0
Fax
+49 89 320 00-482
of which
zeppelin@zeppelin.com
www.zeppelin.de
1) incl. ZEPPELIN GmbH
ZEPPELIN GMBH
ZEPPELIN GROUP: 190 LOCATIONS
Friedrichshafen, Germany
POLAND
Warsaw | 2
UKRAINE
Kiev | 7
BELARUS
Minsk
RUSSIA
Moscow | 14
RUSSIA
Moscow
TRADE DIVISION
TURKEY
Istanbul
GERMANY
INDUSTRY DIVISION
Zeppelin Baumaschinen GmbH
Garching bei München,
Germany
Zeppelin International AG
Zug,
Switzerland
Zeppelin Silos & Systems GmbH 5
Friedrichshafen,
Germany
MVS Zeppelin GmbH & Co. KG
Garching bei München,
Germany
Zeppelin Russland OOO
Moscow,
Russia
Zeppelin Belgium N. V.
Genk,
Belgium
Zeppelin Power Systems1
GmbH & Co. KG,
Hamburg, Germany
Zeppelin Ukraine TOW
Kiev,
Ukraine
Zeppelin Plast Tech S.r.l.
Milano,
Italy
Zeppelin Österreich GmbH2
Fischamend (Vienna),
Austria
Zeppelin Armenia LLC
Yerevan,
Armenia
Zeppelin Systems Limited
Nottingham,
UK
Phoenix-Zeppelin, spol. s r.o.3
Modletice (Prague),
Czech Republic
Zeppelin Belarus OOO
Minsk,
Belarus
JMB Zeppelin Equipamentos
Industriais Ltda.
São Paulo, Brazil
Phoenix Zeppelin, spol. s r.o.
Banskà Bystrica,
Republic of Slovakia
Zeppelin Turkmenistan JV
Ashgabat,
Turkmenistan
Zeppelin Systems USA Inc.
Houston,
U.S.A.
Zeppelin Polska Sp. z o.o.
Warsaw,
Poland
Zeppelin Tadschikistan4
Dushanbe,
Tajikistan
Zeppelin Solid Technology
Co. Ltd.
Beijing, China
Zeppelin-Körös-Spedit Kft.,
Budapest,
Hungary
Zeppelin Usbekistan4
Taschkent,
Uzbekistan
Zeppelin Systems India Pvt. Ltd.
Mumbai,
India
Munich | 119
GREAT BRITAIN
Nottingham
BELGIUM
Genk
GERMANY
CHINA
Beijing
Friedrichshafen | 3
1
With Zeppelin SkySails
Sales & Service GmbH & Co. KG
2
With MVS Zeppelin Österreich GmbH
3
SWITZERLAND
Zug
USA
Houston
4
UZBEKISTAN
Tashkent | 4
ITALY
Milan
AUSTRIA
Vienna | 5
TAJIKISTAN
Dushanbe
HUNGARY
Budapest
CZECH REPUBLIC
Prague | 12
SLOVAKIA
Banskà Bystrica | 5
TURKMENISTAN
Ashgabat | 3
SAUDI ARABIA
Jubaii
INDIA
Mumbai
ARMENIA
Yerevan
SINGAPORE
Singapore
5
With ČZ LOKO, a. s., Tschechien
Representation
Representation in Moscow,
Subsidiary in Turkey in foundation
Zeppelin Gulf Co. Ltd.
Juaymah,
Saudi Arabia
BRAZIL
São Paulo
Zeppelin Technology
Far East Pte. Ltd.
Singapore
INDUSTRY DIVISION
COUNTRY
Location
TRADE DIVISION
COUNTRY
Main location | No. of locations
Zeppelin Plastech
Asia Pte. Ltd.
Singapore
Dated: April 2009
ZEPPELIN GMBH
ZEPPELIN GROUP: 190 LOCATIONS
Friedrichshafen, Germany
POLAND
Warsaw | 2
UKRAINE
Kiev | 7
BELARUS
Minsk
RUSSIA
Moscow | 14
RUSSIA
Moscow
TRADE DIVISION
TURKEY
Istanbul
GERMANY
INDUSTRY DIVISION
Zeppelin Baumaschinen GmbH
Garching bei München,
Germany
Zeppelin International AG
Zug,
Switzerland
Zeppelin Silos & Systems GmbH 5
Friedrichshafen,
Germany
MVS Zeppelin GmbH & Co. KG
Garching bei München,
Germany
Zeppelin Russland OOO
Moscow,
Russia
Zeppelin Belgium N. V.
Genk,
Belgium
Zeppelin Power Systems1
GmbH & Co. KG,
Hamburg, Germany
Zeppelin Ukraine TOW
Kiev,
Ukraine
Zeppelin Plast Tech S.r.l.
Milano,
Italy
Zeppelin Österreich GmbH2
Fischamend (Vienna),
Austria
Zeppelin Armenia LLC
Yerevan,
Armenia
Zeppelin Systems Limited
Nottingham,
UK
Phoenix-Zeppelin, spol. s r.o.3
Modletice (Prague),
Czech Republic
Zeppelin Belarus OOO
Minsk,
Belarus
JMB Zeppelin Equipamentos
Industriais Ltda.
São Paulo, Brazil
Phoenix Zeppelin, spol. s r.o.
Banskà Bystrica,
Republic of Slovakia
Zeppelin Turkmenistan JV
Ashgabat,
Turkmenistan
Zeppelin Systems USA Inc.
Houston,
U.S.A.
Zeppelin Polska Sp. z o.o.
Warsaw,
Poland
Zeppelin Tadschikistan4
Dushanbe,
Tajikistan
Zeppelin Solid Technology
Co. Ltd.
Beijing, China
Zeppelin-Körös-Spedit Kft.,
Budapest,
Hungary
Zeppelin Usbekistan4
Taschkent,
Uzbekistan
Zeppelin Systems India Pvt. Ltd.
Mumbai,
India
Munich | 119
GREAT BRITAIN
Nottingham
BELGIUM
Genk
GERMANY
CHINA
Beijing
Friedrichshafen | 3
1
With Zeppelin SkySails
Sales & Service GmbH & Co. KG
2
With MVS Zeppelin Österreich GmbH
3
SWITZERLAND
Zug
USA
Houston
4
UZBEKISTAN
Tashkent | 4
ITALY
Milan
AUSTRIA
Vienna | 5
TAJIKISTAN
Dushanbe
HUNGARY
Budapest
CZECH REPUBLIC
Prague | 12
SLOVAKIA
Banskà Bystrica | 5
TURKMENISTAN
Ashgabat | 3
SAUDI ARABIA
Jubaii
INDIA
Mumbai
ARMENIA
Yerevan
SINGAPORE
Singapore
5
With ČZ LOKO, a. s., Tschechien
Representation
Representation in Moscow,
Subsidiary in Turkey in foundation
Zeppelin Gulf Co. Ltd.
Juaymah,
Saudi Arabia
BRAZIL
São Paulo
Zeppelin Technology
Far East Pte. Ltd.
Singapore
INDUSTRY DIVISION
COUNTRY
Location
TRADE DIVISION
COUNTRY
Main location | No. of locations
Zeppelin Plastech
Asia Pte. Ltd.
Singapore
Dated: April 2009
Contents
Management Board
2
Directors’ Report
3
Supervisory Board Report
6
Corporate Boards
8
A Vision Creates Values
A Century of Tradition, Change and Growth
10
The Zeppelin Airship Era
12
Overcoming Boundaries
14
Phoenix from the Ashes
16
Zeppelin Today
18
Zeppelin Worldwide
20
Creating Value for our Customers
22
People Create Values
24
Sustainability is our Legacy
26
Innovating into the Future
28
Innovations 2008
First Diesel-Electric Powered Dozer
30
Turn Wind into Profit
32
Innovative Rentals
34
Energy Efficiency in Logistics
36
Groundbreaking Filter Technology
38
Group Management Report
1. Business and Economic Environment
42
2. Business Development of the Company
45
3. Results of Operations, Financial Position and Net Assets
53
4. Subsequent Events
57
5. Risk Report
57
6. Outlook
62
Group Financial Statement
ZEPPELIN GROUP FACTSHEET (front cover)
190 LOCATIONS (front cover, double page)
67
ZEPPELIN GROUP CONTACTS (back cover)
STRUCTURE (back cover, double page)
D ir ec t or s ’ R epor t
The Zeppelin Group can look back on a strong 2008, even if worldwide economic turbulence in
the wake of the US financial and real estate crisis also impacted on our business, notably in the
last quarter of the fiscal year. Successfully flouting the trend, we still achieved the highest sales
revenues and highest cash flow in the history of our company in 2008: the year in which the
Zeppelin Foundation and Zeppelin Group celebrated their centenary. The huge effort of recent
years in our drive for renewal and greater efficiency have paid off, enabling us to push our Return
on Sales well above past averages. In total, the Zeppelin Group achieved a net cash flow of
approximately €170 million in fiscal 2008 (2007: €148 million). At 4 percent (2007: 5.2 percent)
our ROS is at an acceptable level. And, with Zeppelin being awarded an A+ rating by Creditreform
Ernst
Susanek
Alexander
Bautzmann
Michael
Heidemann
Peter
Gerstmann
Jürgen-Philipp
Knepper
President and CEO
Central Functions,
Power Systems and
Trading Companies
ex Germany
Finance
and Property
Management
Sales, Service
and Rentals
Germany
Controlling and
Industry Division
HR (Labor Director),
Legal and Compliance
Management Board
Rating AG for the fourth year running, this confirms the effectiveness of our ongoing commitment to capitalize on market opportunities and apply strict cost discipline throughout our business.
Group revenues rose by 8.4 percent to € 2.447 billion (2007: € 2.257 billion). We generated this
growth under our own power, without significant acquisitions. Non-domestic revenues continued
their steady growth as a percentage of overall earnings, rising from 45 to almost 50 percent in
2008. Internationalization and diversification – a strong commitment at Zeppelin since the early
1990s – enable us to spread risk better across a number of countries and markets. Through
strength in innovation and proximity to the markets we serve, every company in the Zeppelin
Group has managed to sustain or expand its competitive position.
Despite the weakening of markets during the last quarter of 2008, our trading companies still
succeeded in raising sales revenues for the entire year, up 6.1 percent over 2007. In total, we sold
19,054 construction machines, engines and lift trucks (2007: 19,487), achieving retail revenues of
€ 2.208 billion (2007: €2.080 billion). Activities outside Germany were particularly dynamic.
At Zeppelin International AG, the intermediate holding which has overall stewardship of our
non-EU trading activities, sales revenues soared by 47 percent compared to 2007. However,
significant currency devaluation in Russia and Ukraine in recent months has impacted severely on.
2
2008 zeppelin annual report
3
Directors’ Report
the Group's operating results for the year. The German rentals company and Zeppelin Power Sy-
Given the uncertainty in our external environment, we are focusing all the more on our own
stems both displayed strong positive trends. With each area posting revenue growth of 8 percent
strengths, from which we can derive the power to sustain our position on highly competitive mar-
in 2008, our expansion strategy for these two business sectors is showing through in results.
kets. These strengths are many and varied. Our ownership structure is a case in point: being
We also took key strategic steps in 2008 for future expansion: we founded Zeppelin Rental GmbH,
a Foundation company, we have strong financial security. Our profits remain largely in the com-
which will in future steer the entire rental activities of the Zeppelin Group, and acquired a share-
pany even at such difficult times as this, and are reinvested to the benefit of our customers.
holding in the Hamburg-based company SkySails GmbH & Co KG, which complements the Power
In addition, having boosted our ROS in recent years, we are now cushioned financially. Another
Systems portfolio with wind propulsion for ships.
strength is the strategic success which the Zeppelin Group has enjoyed in recent years. We have
invested in diversifying and internationalizing our business, significantly easing our long-standing
The Zeppelin Industry business also had a very strong 2008, continuing its uninterrupted growth
dependence on the German construction industry. We are now market leaders in many of the
of preceding years. Sales revenues rose by 36 percent to € 239 million (2007: € 176 million),
countries and core businesses in which we operate, making us a powerful and reliable partner for
with international business accounting for 66 percent of this total (2007: 83 percent). A healthy vo-
our customers. A key advantage for the Zeppelin Trading division is that we have strong,
lume of orders kept engineering and production working to capacity over the entire year, despite
innovative manufacturer partners on our side.
a distinct slowdown on the relevant markets towards the end of 2008 which is expected to continue through 2009. Our growth strategy in 2008 also included activities to expand our value chain
We are particularly well positioned in terms of our employees, whose commitment and identifi-
and open up new markets: for example, we acquired an engineering company in India and foun-
cation with the company and its goals are key to our success. This is the mainstay for the future
ded a subsidiary in Turkey. In addition, the joint venture we founded in 2007 with a partner in
also. To secure this vital potential, we will continue to promote a spirit of enterprise among our
Saudi Arabia (Zeppelin Gulf Co. Ltd.) took up operations successfully.
employees in every Group company – through cooperative management styles with decentralized, clearly defined responsibilities, continuous professional development, and fair appraisal and
Delivering business excellence for the benefit of our customers is our credo – the benchmark we
remuneration.
set ourselves every single day. This is about constantly being ready for change both in products
and processes, and placing a premium on innovation. In 2008 the Zeppelin Group companies have
On behalf of the management board, I would like to express a special thank-you to the employees
channeled major effort and commitment into living up to this credo. The new product generati-
of the Zeppelin Group for their all-out commitment and superlative achievement. Our thanks of
ons of our Trading division, which we rolled out with our manufacturer partners, push innovation
course also go to our customers and business partners, also to the Supervisory Board and General
boundaries above all in terms of greater operational efficiency and reduced carbon emissions.
Works’ Council for the constructive and positive working relationship.
With new advanced filter technologies, the Industry division likewise introduced innovation to
the benefit of customers. On the process side we have continued to drive through improvements
In 2009 the Zeppelin Group embarks on a new century of its history. The risks and challenges
in all our companies, for example introducing a new IT system in the largest Zeppelin Group com-
engendered by the current global crisis are of colossal proportions. Yet our confidence remains
pany, Zeppelin Baumaschinen GmbH. Already in productive operation, the new solution is firmly
unbroken. Over the first hundred years of its history, Zeppelin’s totally customer-centric approach,
on track to raise our productivity and make communication at customer interfaces swifter and
resolve and vision, innovation and will to change have time and again given the company the
more efficient.
ability to move ahead and forge new paths into the future.
Looking into the future, the development of the Zeppelin Group and its companies is subject to
considerable risk in 2009. Our company has not escaped the fallout from the global economic
crisis. With market volumes tumbling (in some cases the shrinkage is enormous) compared to the
first months of fiscal 2008, and in the light of continuing currency risks in the countries of eastern
Ernst Susanek
Europe, our sales revenue and profits have been under strain in the first quarter of 2009. Accor-
President and CEO
dingly, taking a critical view of projected market volumes, we predict that sales revenues could
ZEPPELIN GmbH
decline by as much as 20 percent, with a Return on Sales between 2 and 3 percent.
4
2008 zeppelin annual report
5
S uper vis or y B oar d R eview
The future organizational development of the Zeppelin Group and its management structure, as
well as aspects of succession planning for the ZEPPELIN GmbH management board, were discussed at a plenary session of the supervisory board and in several meetings of the personnel
committee.
Josef Büchelmeier,
We were saddened to hear of the death on April 8, 2008, of Dr. Bernd Wiedmann due to an
Chairman of the Supervisory Board
accident. Dr. Wiedmann was Chairman of the supervisory board of ZEPPELIN GmbH from 1985
until 2001, and from 1995 to 2005 Chairman of the supervisory board of Zeppelin Baumaschinen
GmbH. His even-handed, composed stewardship of these two corporate boards earned him great
respect and esteem. We shall honor his memory in gratitude for his achievements.
The supervisory board was given regular status and progress reports about the organization
The annual financial statement and directors’ report, and the Group consolidated statement and
and financial situation of ZEPPELIN GmbH Group verbally and in writing by the management board
directors’ report of ZEPPELIN GmbH to December 31, 2008, were audited by Ernst & Young AG,
throughout 2008. Three board meetings were convened, at which the supervisory board – with
Stuttgart, the auditors elected by the shareholders’ meeting and commissioned by the super-
input from various decision papers, reports and presentations – consulted with the management
visory board. The auditors issued an unqualified opinion on each of the statements and reports.
board on the planning, profit, asset position, operating finances and risk exposure of the com-
The auditors’ report was submitted to each member of the supervisory board. Prior to the
pany and its affiliated enterprises, and exercised supervisory control over the management board
supervisory board balance meeting, there were two additional meetings concerning the audit of
on this basis. At a board summit at the end of November, some of supervisory board members
accounts, attended by the auditors, the Chairman of the supervisory board and other members
received a detailed presentation and appraisal from an external economics expert about
of the supervisory board. At the accounts review meeting of the supervisory board on April 29,
economic development in eastern Europe, and discussed with management of the major Group
2009, the auditors reported on key findings and results of the audit, which as agreed also
companies about developments and future perspectives of the Zeppelin Group against the back-
encompassed the Group’s early-warning risk identification system.
drop of the financial and economic crisis. The long-term financing and bank policy of the Group
were key issues in these discussions.
The supervisory board has reviewed and endorsed the 2008 annual financial statement and
consolidated accounts submitted by the management board. The annual financial statement and
The supervisory board consulted intensively on strategic and investment planning. Following
consolidated accounts of ZEPPELIN GmbH as per December 31, 2008, have been approved; the
discussion with the management board, the supervisory board took decisions on a range of
annual closure is accordingly declared. The supervisory board elected to follow the proposals of
initiatives which – by law, statute or the Rules of Procedure for the Supervisory Board – require
the management board regarding the use of the retained earnings.
supervisory board approval. These included decisions on increasing equity capital, appointments
of managing directors in affiliated companies, and acquisition of shareholdings to round out the
The supervisory board thanks the Zeppelin staff, employee representatives and the members of
Group’s portfolio and geographical spread in both Trading and Industry divisions. The board also
the management board for their dedicated, conscientious work, which has yet again brought such
agreed to the acquisition of a shareholding in the venture company SkySails, which has develo-
success for the Group.
ped a sail propulsion system for use in the marine sector to complement traditional power
systems. By founding a joint venture with SkySails, Zeppelin secures excellent business oppor-
Friedrichshafen, April 29, 2009
tunities particularly in the long term for global sales and service of this innovative, environmentfriendly system.
6
The supervisory board also addressed issues pertaining to corporate risk management and the
Josef Büchelmeier
selection of auditors.
Chairman of the Supervisory Board
2008 zeppelin annual report
7
C orporate Boards
Supervisory Board
Management Board
In accordance with Section 7 of the German Co-determination Act (MitbestG), the supervisory
board is composed of the following members:
Ernst Susanek (President and CEO)
Josef Büchelmeier
Vincenzo Savarino*
(Chairman)
2nd authorized representative of IG Metall
Mayor of the City
labor union, Friedrichshafen-Oberschwaben
Alexander Bautzmann
Univ.-Prof. Dr.-Ing. Dr.-Ing. e.h. Dieter Spath
Peter Gerstmann
of Friedrichshafen
Ralph Misselwitz*
Director of Fraunhofer Institut
(Deputy Chairman)
für Arbeitswirtschaft und Organisation
Field Services Master Craftsman,
and of the Stuttgart University Institute
Chairman of Zeppelin Group
for Work Science and Technology Management
Michael Heidemann
Jürgen-Philipp Knepper
General Works’ Council,
Chairman of the General Works’ Council
Sibylle Wankel*
of Zeppelin Baumaschinen GmbH
Lawyer at IG Metall labor union –
Bavaria region management
Dipl.-Ing. Werner Baier
Chairman of the Supervisory Board
Dr. Bernd Wiedmann †
of Webasto AG Fahrzeugtechnik
Former Mayor of the City of Friedrichshafen
Lawyer
Manfred Enger*
Service Technician,
Univ.-Prof. Dr. Dr. h. c. mult. Horst Wildemann
Zeppelin Baumaschinen GmbH
Chair of business administration and
management, logistics and production
Heribert Hierholzer*
at the Technical University of Munich
Master Craftsman in Industry,
Chairman of the Works’ Council
Dipl.-Ing. Eckhard Zinke*
of Zeppelin Silos & Systems GmbH
Sales Director,
Zeppelin Baumaschinen GmbH
Dr. Werner Pöhlmann
Lawyer, tax accountant,
certified public auditor
* Employee representatives
† died April 8, 2008
8
2008 zeppelin annual report
9
A Vis ion C r eat es Values
A Century of Tradition, Change and Growth
On October 11, 2008, the City of Friedrichshafen and the Foundation companies ZEPPELIN GmbH and
ZF Friedrichshafen AG came together in the Zeppelin airship hangar to celebrate the centenary of the
Zeppelin Foundation and Luftschiffbau Zeppelin GmbH. The pictures and quotes on the following pages
capture a few moments from this event.
This was a celebration of our origins, and of the values which were engendered a century ago. But it was
Ferdinand Count Zeppelin
also a call to every shakeholder to sustain and promote these values for the coming generations.
Airship pioneer and
founder of our company
Every day we at Zeppelin work with passion and commitment to create lasting value – for our customers,
our employees and our company.
“You only have to want it and
belief it, then you will succeed.”
10
2008 zeppelin annual report
11
A Vis ion C r eat es Values
The Zeppelin Airship Era
Ferdinand Count Zeppelin was born on July 8, 1838, in Constance. We know from his diary that as early as
1874 he was already investigating the idea of building a “balloon vehicle for conveying mail, cargo and passengers.” The idea gradually came to fruition – and in 1892, he commissioned the engineer Theodor Kober
Günther H. Oettinger
with the task of drawing up the design for an airship. On August 31, 1895, the Count was granted the first
Minister President of the State
patent for a dirigible airship with multiple, serially arranged gas cells. He embarked on the construction of his
of Baden-Württemberg
first airship in Manzell by Germany's Lake Constance on June 17, 1899, assisted by Dr. Ludwig Dürr, who
later became chief designer and builder of all the Zeppelin airships. On July 2, 1900, the first Zeppelin airship,
the LZ1, finally rose from its floating assembly hall into the evening sky above Lake Constance.
“The development of airships was
preceded by a grand vision: the
On August 4, 1908, the LZ4 embarked upon its fateful 24-hour journey down the Rhine to Mainz. On the
dream of flight. In tiny steps, the
return flight, the LZ4 had to make a forced landing in Echterdingen due to engine damage. Shortly after
toil and resolve of these pioneers
landing, the airship was torn from its moorings by a storm. Out of control, it caught fire and burnt to nothing.
and entrepreneurs transformed this
age-old dream into reality. Their
example reminds us how important,
indeed essential, such visionaries
Even though no one was seriously injured in the inferno, the accident would have meant the end of the
airship project but for the spontaneous response from the public. Donations poured in from all over the country, amassing an impressive 6 million marks. It was this donation which enabled Count Zeppelin to continue his
life's work. On September 8, 1908, he founded Luftschiffbau Zeppelin GmbH, and transferred his majority
shareholding in this company to his newly established Zeppelin Foundation. The foundation’s declared
are to progress. These are the people
through which vague imaginings,
purpose at the time was to assist efforts to promote airships and to deploy this technology for the purpose
of science.
ideas and hopes become reality.”
12
2008 zeppelin annual report
13
A Vis ion C r eat es Values
Overcoming Boundaries
For decades, the success of airship technology bred a charisma that transcended the boundaries of
Germany and Europe.
Hans-Georg Härter
Count Zeppelin’s original airship company was also the rootstock of other enterprises which today are
Chief Executive Officer
globally active, among them Maybach-Motorenbau (now MTU or Tognum AG), Dornier, and ZF Friedrichs-
of ZF Friedrichshafen AG
hafen AG, which like the Zeppelin Group is owned by the Zeppelin Foundation.
To round out the picture, in 2001 a Zeppelin airship again took to the skies: that year the official permit was
granted for the Zeppelin NT (New Technology), which blends the original rigid-airship design principle with
“The industrial enterprises
modern aviation technology. The Zeppelin NT makes flying an unforgettable experience, and has carried over
founded here a century ago
90,000 passengers since its maiden flight in 2001.
continued beyond the vision of
their founder. They became –
All these enterprises, and not least the present-day Zeppelin Group, combine to put Friedrichshafen and the
and remain – originators of a
Lake Constance region well and truly on the map as one of Germany’s and Europe’s leading industrial
stream of innovations for other
centers. Our company is a significant part of the heritage of Ferdinand Count Zeppelin. And it is our respon-
technologies and markets.”
14
sibility to uphold his tradition in everything we do.
2008 zeppelin annual report
15
A Vis ion C r eat es Values
Phoenix from the Ashes
The Hindenburg accident in Lakehurst in 1937 and the outbreak of World War II brought the airship
Josef Büchelmeier
era to an abrupt end. Following the war, the forced liquidation on January 1, 1947, by the Allied
Mayor of the City of Friedrichshafen,
military government spelt the ultimate demise of airship construction. The restriction would not be
Chairman of the Zeppelin Foundation,
lifted for another nine years; meanwhile, the forced breakup of the Zeppelin Group left our company
Chairman of the Supervisory Board
without production equipment or products.
of ZEPPELIN GmbH
Yet the Zeppelin people remained true to their founder's legacy. The vision, courage to innovate and
the steadfast will to succeed would once again become the driving forces to rebuild what once was.
“Vision, strength, and the resolve
Two new enterprises, Metallwerk Friedrichshafen GmbH and Fahrzeug Instandsetzung GmbH,
to make technical progress hap-
Friedrichshafen, embarked upon fresh ventures, including production of lightweight structures and
pen – all embedded in a strong
large vessels for the chemicals industry, vehicle maintenance and antenna systems for Germany’s
sense of social responsibility –
fledgling beam-radio network. The roots for the Trading division were put down in 1954, when
these talents and characteristics
Zeppelin secured rights in the Federal Republic of Germany for selling and servicing Caterpillar con-
of Count Zeppelin are the
struction machines and engines. When the activities of Zeppelin Metallwerke GmbH merged with the
groundwork he laid for future
Trading and Industry divisions in 1961, the present-day ZEPPELIN GmbH came into being. This far-
generations. They have become
reaching decision created the structures which are still in place to this day.
a measure for each of his successors in the stewardship of the
Zeppelin Group.”
16
2008 zeppelin annual report
17
A Vis ion C r eat es Values
Ernst Susanek
President and CEO
of Luftschiffbau Zeppelin GmbH
Zeppelin Today
and ZEPPELIN GmbH
The Zeppelin Group is today organized into two business divisions: trading and industry. Both are well
positioned strategically. Leaders in technology and top performers in the markets they serve, the divisions
“We can look back with pride and
have healthy growth potential. The Zeppelin Trading division is Europe's largest sales, service and rental
respect at what has been achieved -
organization in the construction machine industry, and one of the largest in the world. The Friedrichshafen-
not least because one hundred years
headquartered Zeppelin Industry division is one of the world's largest providers of customized systems for
is evidence of constancy. Yet it equally
conveying, storing, blending, dosing and weighing bulk solids, specializing in plastics and rubber and the tire
demonstrates our company’s ability
industry.
to adapt to permanent change.”
In 2008, the Zeppelin Group with its 6100-strong workforce (as per December 31, 2008) achieved a worldwide sales volume of some € 2.4 billion. In strategic terms this dynamic growth derives from total dedication
to our customers, combined with pioneering innovation in construction machine and engine technology and
in bulk solids handling technology – plus a systems philosophy by which we act as a one-stop source of
business excellence for our customers. Over the last 15 years, we have also relentlessly pushed ahead in
our drive to expand and internationalize the Zeppelin Group. We have remained so committed to this growth
strategy not least because we have to overcome the boundaries of our markets in order to sustain our
position in ever tougher competitive environments.
Since 2001 Zeppelin has subjected itself to an annual external rating by Creditreform Rating AG, Neuss.
On a scale from ‘AAA’ (the top rating) down to ‘D’, Zeppelin has never achieved worse than an ‘A’. In 2008,
for the third year running, we were even awarded the rating ‘A+’
18
2008 zeppelin annual report
19
A Vis ion C r eat es Values
Zeppelin Worldwide
In the 1990s, as the partnership with Caterpillar strengthened and deepened, the Zeppelin Trading division
began to expand internationally. We were successively awarded exclusive distribution rights for the Czech
Republic and Slovakia (1991), Austria (1992), Ukraine (1996), Northwest Russia (1998), the states of
Tajikistan, Turkmenistan and Uzbekistan in Central Asia (2001), Southwest Russia (2002), Belarus (2004) and
Armenia (2005). By expanding into markets with promising opportunities we have put the Zeppelin Group
on an excellent footing for future development. With new international outlets and branches opening
regularly, we are continuing our drive to be as close to our customers as possible.
Managed from the Friedrichshafen headquarters, the Zeppelin Industry division has in recent years also
expanded its international presence and is now represented in all the world's major centers for the plastics
processing and chemicals industry. As well as the parent plant in Friedrichshafen, the division has production facilities in Belgium, Brazil and since 2008 in Saudi Arabia, with another facility under development in
Turkey. The Zeppelin Industry division also has engineering and sales companies in the UK, Italy, USA, India,
Singapore, China and a representation in Moscow.
“The legacy of Count Zeppelin
lives on - both in his foundation
Measured in terms of employee numbers, Germany is still the Zeppelin Group's major location. Our subsi-
and in the enterprises which he
diaries Zeppelin GmbH & Co. KG (rentals), Zeppelin Baumaschinen GmbH (sales and service), Zeppelin Power
founded. Ventures of all sizes,
Systems GmbH & Co. KG (engines and power systems) and Zeppelin Silos & Systems GmbH (silos and
from medium-sized enterprises
conveying equipment) employ 53 percent of the group's workforce at over 120 sites throughout Germany.
to global corporations, have
But the strongest expansion in recent years has taken place in our companies outside Germany, with the
flourished on the strength of
subsidiaries of Zeppelin International AG in eastern Europe leading the way.
this legacy.”
Günther H. Oettinger
20
2008 zeppelin annual report
21
A Vis ion C r eat es Values
Creating Value for our Customers
Zeppelin is committed to partnering with customers, taking care to align product and service portfolios to
what our customers want. With innovative products and services, we strive to deliver the highest added
value in the industry, and contribute to enhancing our customers’ own competitive strength – so reads the
Zeppelin Group’s mission statement.
Caterpillar construction machines work in every area of the mining and construction industries. There is a
machine for every application: for mining, for constructing buildings, roads, bridges and tunnels, and for creating stunning landscapes. With our Caterpillar and MaK engines, SkySails wind-propulsion system, also with
Hyster-brand lift trucks and handlers, we in turn make sure things keep moving. And when it comes to
“For a century now, the Zeppelin
manufacturing, conveying, storing, blending, dosing and weighing powders and pellets for the chemicals,
Foundation and its companies
plastics and food industries and for rubber and tire manufacturers, the Zeppelin Industry division offers
have shown though their dedica-
practice-tested technology and customized system solutions.
tion and creativity that the values
Yet the Zeppelin systems philosophy is about more than innovative products. It embraces our commitment
which Zeppelin has engendered
aren’t assets which can simply be
to offering customers the complete range of support and services associated with our machines and
equipment. Through synergy effects we can achieve decisive benefits for our customers:
owned. They have to be nourished
and sustained by a steady stream of
• Innovative systems which are an exact fit for the customer’s particular demand profile
inventiveness.”
• Economic investment
• Fast availability of machines, plant and parts
• Excellent operational efficiency
Josef Büchelmeier
22
2008 zeppelin annual report
23
A Vis ion C r eat es Values
People Create Values
Our founder Ferdinand Count Zeppelin was a pioneer with the vision and sense of purpose to spur the people
around him to highest achievement. Celebrated entrepreneurs at Zeppelin's side included Dr. Hugo Eckener,
Claude Dornier, Alfred Count von Soden-Fraunhofen, Alfred Colsman, Ludwig Dürr and Karl Maybach. They
all embodied Count Zeppelin's example but also had their own vision of purpose, and the skill, creativity and
passion to turn their vision into reality. They all took up the challenge of enterprise and in turn motivated the
people at their side. And highly successfully too, as evidenced not just by the Zeppelin Group today, but also
by the numerous companies which emerged from the original airship venture.
It is people who create values. We at Zeppelin know that our employees are the company's most important
assets. Their ideas, their talents and the commitment they bring to their work are key to our success. To push
the pace of innovation, increase productivity and, above all, be a totally customer-focused business, we have
to give our employees the conditions they need to develop their strengths. Accordingly, we cultivate our
talent, helping people stretch and fulfill their potential. Teamwork, exemplary leadership and the will to change
are all central to our corporate culture.
“Even a brief review of our com-
We uphold this culture in many ways: through our corporate mission statement, in which we have also
pany history makes abundantly
defined a code of management practice, through regular and above all fair performance appraisals of every
clear that the success is down to
employee, and a wide range of opportunities for continuous professional development. We are assiduous in
the courage, resolve and vision of
many, many people. People who
even when things got tough could
not be deterred from pursuing
communicating corporate strategy and goals to our employees promptly and extensively through media such
as our employee magazine Z intern; regular management summits, informal meetings and above all personal
dialog are all integral to how we communicate within the company. Profit-sharing for employees, introduced
at the largest Zeppelin Group company, Zeppelin Baumaschinen GmbH, over ten years ago now, helps
encourage strong employee identification with the goals of our company.
their dreams.”
Ernst Susanek
24
2008 zeppelin annual report
25
A Vis ion C r eat es Values
Sustainability is our Legacy
Count Zeppelin was a visionary in many respects – not least as someone with a strong sense of citizenship.
In establishing the Zeppelin Foundation in 1908 and transferring his company shares to the foundation, he was
expressing his gratitude for the funds so generously donated by the German people following the tragic end
of the LZ 4 airship in Echterdingen. He was also realizing a vision: to secure for future generations his ideas
and ventures, and also to uphold his conviction that free enterprise must be tied to social responsibility. In
terms of sustainability, our founder was years ahead of his time, and his legacy remains embedded in our
corporate culture.
We at Zeppelin consider that success comes with obligations, and corporate social responsibility is key to our
understanding of what we are. Each year, we make over part of our profits to the Zeppelin Foundation, whose
funds exclusively benefit non-profit and charitable causes. We also donate funds directly and have our own
sponsorships in education, culture, social welfare and sport. Zeppelin University is a case in point. We founded and are among the main sponsors of this private, state-recognized university at which 600 young people
are now studying Bachelor’s and Master's programs. We have also for many years sponsored the Fried-
“Count Zeppelin’s vision of avia-
richshafen volleyball team. We staged a major fundraising drive in aid of the flood catastrophe in eastern
tion brought progress not only in
Germany and the victims of the tsunami in South East Asia, and in 2008, for the Menschen für Menschen
technology and business front.
Ethiopia aid program founded by Karlheinz Böhm. And because arts and culture also answer to a basic human
For Count Zeppelin, progress
need, we also sponsor the Tyrol Opera and Concert Festival. The Zeppelin foundation and the Zeppelin
also meant social responsibility.
His legacy lives on, both in the
Group - to which Zeppelin Wohlfahrt GmbH also belongs - have trailblazed an example for many other companies in Germany and far beyond its boundaries.
Zeppelin Foundation and in the
We are proud to reaffirm this commitment as we embark upon a new century in our corporate history,
ventures he founded.”
always mindful that true corporate social responsibility can only have impact and build values if it is preceded by entrepreneurial success in all its many facets.
Günther H. Oettinger
26
2008 zeppelin annual report
27
A Vis ion C r eat es Values
Innovating into the Future
No other manufacturer of construction equipment and diesel engines comes anywhere near matching our
partner Caterpillar’s investment in research and development of new products: close on US$ 5 million per
day. Every year, a stream of new products reaffirms Caterpillar’s position as a world-beating innovator and
market leader. Fuel efficiency, low emissions, driver comfort, ease of use, versatility of operation – all combine to guarantee excellent productivity and economy. As one of the largest Caterpillar dealers worldwide,
“Technological vision, a robust
Zeppelin plays a key role in the development of new machine and engine generations. Through ongoing
contact with customers, our sales and service teams learn what customers are looking for, what solutions
business basis and people working
together: that's what’s drives inno-
they need to drive their business. Accordingly, our organization partners actively with Caterpillar on numerous projects for developing new product generations.
vation – then and now.”
Development of innovative technology also enjoys top priority in the Zeppelin Industry division, enabling us
Hans-Georg Härter
to match and exceed the growing requirements of our customers for performance, innovation and quality.
Our Technology Center works to enhance procedures for handling bulk solids, analyzing product features and
testing alternative ways of processing to harvest data which can be channeled into new process technology.
Our Friedrichshafen center plays an integral role in these efforts, and has been expanded several times in
recent years. This testing plant, the largest of its kind in the world, tests handling procedures for bulk solids
in powder and pellet form. This enables us to test and optimize plant configurations for plastics such as
polyethylene or polypropylene as well as bulk solids for the rubber and tire industry such as carbon black and
products for profile extrusion (PVC). So before making an investment decision, customers can witness the
power and capability of the plants which we plan and manufacture.
28
2008 zeppelin annual report
29
A Vis ion C r eat es Values
First Diesel-Electric Powered Dozer
INNOVATIONS
2008
CAT TRACK-TYPE
TRACTOR D7E
In 2008, Caterpillar launched the first dozer with hybrid
engine. The track-type tractor is neither reliant on traditional
diesel-electric drive, the CAT D7E, once again writing history
mechanical power transmission with gear system and clutch,
in engine and construction machine technology. The twin goals
nor does it need a drive belt, because an electric engine can
of this development were to drive down diesel consumption
also drive components such as air conditioning and water
and reduce carbon emissions without compromising on per-
pumps via a separate system. So there is no need even for
formance. The outcome is a staggering 25 percent better
a conventional dynamo. Even the differential-steering com-
fuel efficiency compared to predecessor models. Delivering
ponents are driven directly by the electric engine, ensuring
compelling economy and environmental efficiency, the
excellent high-precision steering.
machine also requires fewer replaceable parts – 60 percent
With the world's first dieselelectric
machine
in
fewer on the D7E 60, for example.
construction
the
mid-range
This groundbreaking innovation is emblematic of Caterpillar’s
commitment to sustainable development, helping customers
The decades of experience of our manufacturer partner
cut costs and reduce emissions. Our manufacturer partner
offers
Caterpillar in electric power systems and generators were all
has embedded this goal in its Vision 2020: to lead the world
unrivalled efficiency and envi-
distilled into the development of this new drive technology.
on energy and environmental design, and on the criteria for
ronment-friendly operation.
The 27-tonne class D7E is powered by a 175 kW Caterpillar
“green building”.
segment,
30
driven
Caterpillar
2008 zeppelin annual report
31
A Vis ion C r eat es Values
Turn Wind into Profit
Fuel efficiency and lower carbon emissions are key to raising
be retro-fitted or outfitted ex-works with SkySails as an
competitive strength – also for the customers of Zeppelin
auxiliary power system. If this technology were to be used
Power Systems GmbH & Co KG. In the 15 kW to 16 MW
consistently worldwide, we would be able to cut carbon
range, Caterpillar and MaK engines (also part of the portfolio
emissions by over 150 million metric tons every year. In com-
of our manufacturer partner) serve as main and auxiliary
bining advanced MaK and Caterpillar diesel engine technology
power systems in container ships, freighters, ferries, fishing
with SkySails propulsion, we are charting an unprecedented
vessels and cruise ships, as well as locomotives, construc-
– and highly promising – course in our industry. Fully aligned
tion machines, utility vehicles and other industrial machines.
with our strategy to pursue new market opportunities in the
The CAT-driven power generators and the combined heat and
marine sector, this partnership also proudly upholds the tra-
power plants developed by Zeppelin Power Systems ensure
dition of innovation of our founder Ferdinand Count Zeppelin:
reliable, efficient power delivery.
dare to innovate, and believe in success.
Last year Zeppelin Power Systems acquired a shareholding
Another groundbreaking innovation from Caterpillar in recent
SKYSAILS
in the Hamburg-based company SkySails GmbH & Co. KG,
years was ACERT – Advanced Combustion Emissions
Combining advanced diesel
again enacting our commitment to offering customers –
Reduction Technology – for engines. Comparable with earlier
engine technology from MaK
in this case marine customers – innovative solutions to help
development milestones such as the turbo loader or charge-
and Caterpillar with SkySails
them raise productivity and do business more efficiently.
air cooling, ACERT has helped reduce emissions by up to
The unique SkySails system is a wind-based propulsion
50 percent over preceding engine generations with conven-
system for ships. Depending on prevailing wind conditions,
tional technology. ACERT features multiple injection, optimi-
the huge sail can reduce annual fuel costs by between
zed air management and advanced control electronics
10 and 35 percent. As soon as the sail is up, the captain can
enabling interactive communication between the engine and
throttle back on diesel engine power. Virtually any vessel can
other elements of the power system.
INNOVATIONS
2008
wind propulsion system,
we are charting a fresh and
promising course which is
unprecedented in our industry.
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2008 zeppelin annual report
33
A Vis ion C r eat es Values
Innovative Rentals
INNOVATIONS
2008
With the market in Europe worth € 32 billion in 2008 alone,
Tour 2007” campaign earned MVS Zeppelin first prize in the
European construction machine and equipment rentals offer
Best Rental Promotional Campaign at the European Rental
excellent growth opportunities. An early mover into this seg-
Awards (the first to be held), beating competitors from all
ment, Zeppelin is now one of the largest rental companies in
over Europe. The idea, which increased sales and created
the industry. We opened our first rental outlets back in the
closer ties with customers, was targeted directly at the point
early 1990s, and have been expanding coverage ever since.
of interest. Over 600 construction sites were visited by our
Our rental activities in Germany, where we are market leader,
special tour bus, styled in the Zeppelin corporate design. Also
are managed by our subsidiary MVS Zeppelin GmbH & Co.
on board was the local station manager – to discuss ongoing
KG. MVS Zeppelin operates over 110 rental outlets and offers
and planned projects with customers directly on site and
customers a fleet of over 42,000 items of equipment:
speak about the rental equipment they were likely to require.
construction equipment and machines, work platforms,
This innovative marketing instrument was a huge success,
traffic and construction site security systems, room and
and the tour was repeated in 2008.
sanitary cell systems and vehicles. The Zeppelin Group has
CONSTRUCTION
SITE TOUR
This
marketing
tool
earned
MVS Zeppelin first prize in the
European Rental Awards, beating
also been assiduous in developing this business outside
Innovative ideas and flexibility, combined with state-of-the-
Germany, and continues to open new outlets in Austria, the
art, robust technology are part and parcel of the Zeppelin
Czech Republic, Slovakia and Russia. Every rental station has
experience at all the group's rental companies. Every year,
a clear visual identity because all bear the standardized brand
we invest large sums into fleet renewal. We also offer our
identity The CAT Rental Store. Our rental activities will soon
customers a range of services such as special construction
all be together under the stewardship of Zeppelin Rental
shops for professionals (Profi-Baushop), rentals complete
GmbH, which we founded in 2008.
with operators for large and special machines, delivery and
competitors from all over Europe.
34
pickup services, one-way rentals and all-in service and supMVS Zeppelin was proud to receive a very special accolade
port. This is exactly what customers are entitled to expect
in 2008 from the European Rental Association. The “Site
from the number one in the rentals business.
2008 zeppelin annual report
35
A Vis ion C r eat es Values
Energy Efficiency in Logistics
INNOVATIONS
2008
The need for energy efficiency is growing in importance
to the conditions in which the machine will be operating,
everywhere – also in internal logistics. In 2008, a ground-
or to the capabilities of drivers – enabling drivers to focus
breaking innovation was brought to market by our
exclusively on the task in hand. Another added-value feature
manufacturer partner the US-American NACCO Materials
is the zero-turn radius. This expanded turning functionality of
Handling Group: the new generation of Hyster electric-
Hyster four-wheel JXN forklift trucks provides virtually the
powered lift trucks boasts the industry’s lowest energy
same maneuverability as a three-wheel truck. Yet with four
consumption and offers compelling productivity. The trucks
wheels, the vehicle is more flexible and precise in tight cor-
are proof that carbon emissions can be reduced in logistics
ners and offers greater stability, also on uneven surfaces.
without necessarily compromising on cost efficiency.
And, to raise productivity yet another notch, the new Hyster
electric-powered trucks feature extra-large battery capacity
Two performance settings ensure the best balance between
and the fastest lifting speeds in their class.
energy consumption and productivity. At the eLo setting
HYSTER JXN ELECTRIC
FORKLIFT TRUCK
The new four-wheel electric
truck outperforms any other
vehicle in its class on energy
36
(extra low energy consumption), the Hyster lift truck consu-
With 80 years of experience in design and production of
mes on average 16 percent less energy than comparable
warehouse vehicles, NACCO is the world's oldest manufac-
equipment of other makes, without any loss of performance.
turer of lift trucks and a strong manufacturer partner of
At the HiP setting (high productivity), performance is
Zeppelin. Complementing the new electric-powered trucks,
substantially higher than competing equipment in the same
the most recent instance of NACCO’s strength as an innova-
class – but without a disproportionate increase in energy
tor is the warehouse simulator. This software enables enter-
efficiency; thanks to its zero-
consumption. Fleet managers can also fine-tune the balance
prises to run true-to-life simulations of all the processes in
turn radius it offers excellent
between performance and energy efficiency in operation by
their warehouse and calculate how best to configure storage,
maneuverability and stability.
adjusting the consumption settings of the lift truck precisely
deploy personnel and machines.
2008 zeppelin annual report
37
A Vis ion C r eat es Values
Groundbreaking Filter Technology
INNOVATIONS
2008
Every year, the Zeppelin Industry division invests in new,
particle filtration) co-developed with the Karlsruhe Research
enhanced technology to expand its product portfolio and, in
Center is now being prototyped in a biomass power plant.
turn, its value chain of core competences: storing, conveying,
Offering one hundred times the performance of conventional
blending and dosing bulk solids in powder and pellet form. In
filters, the new filter system could become the new standard
2008 the division again rolled out groundbreaking innovations.
for small-scale power stations and incinerator systems, opening up totally new markets for Zeppelin.
Last year we successfully launched our new filter technology
HEPA FILTER
Co-developed with the Karlsruhe
Research Center, the HEPA filter
(high performance particle filtration) offers one hundred times
product business. Having accumulated so much expertise in
In addition, a new pneumatic conveying system with a
plant construction and experience along the plastics proces-
special bypass technique has been installed in the Zeppelin
sing and production workflows, we were ideally positioned to
Technology Center to conduct trials. This expands our ser-
optimize filter designs. We soon gained substantial market
vices to include other product groups. A specially developed
share with the new business. The Zeppelin Industry division’s
process lock-gate has made its debut in productive operation
filter portfolio, built for the full range of requirements on
in a customer plant, and our production achieved major
pneumatic conveying systems, now includes quite a variety
progress in the development of a new welding technique for
(silo binvent filters, aspiration filters, safety and inline filters).
silos, which helps accelerate production times.
the performance of conventional
filters.
The Zeppelin filter technology is also a groundbreaking
innovation in other sectors: A HEPA filter (high performance
38
2008 zeppelin annual report
39
Group Management Report
40
2008 ZEPPELIN ANNUAL REPORT
41
Group Management Report
1. BUSINESS AND GENERAL CONDITIONS
Economic background
Overall economic development
years. The sharp increase in commodity prices
growth of the Czech Republic fell for a second
The Zeppelin Group has two divisions: Trade and
According to the International Monetary Fund,
buoyed the development in Brazil and Russia in
time in a row, from 6.5% in 2007 to 4.3%.
Industry. The business activities in the Trade
global GDP saw growth in real terms of 3.1%
the first half of the year. By late summer 2008
Following rapid growth in recent years, the eco-
division consist of sales, services and rental of
(prior year: 5.0%), a clear downturn in the global
there had been a complete turnaround in this
nomic output of Slovakia slid from 10.4% to
Caterpillar construction machines, Caterpillar
economy in 2008. The global economic slump
situation, as these emerging economies also
7.1%. The lively economy of the prior year was
construction machinery and diesel engines,
was dominated by developments in the indu-
saw a slow-down in the wake of the global eco-
not repeated in Poland either, with growth of
MaK ship engines, Terex mining equipment and
strialized nations, which increasingly saw the
nomic downturn.
5.0% down from 6.7% in the prior year. The
Hyster industrial trucks. Zeppelin is the exclusive
effects of the financial and sub-prime crisis
sales partner of Caterpillar Inc., Peoria (IL/USA),
reflected in the real economy. The consequent
In the euro zone, the economic impetus also
Hungary in 2007 and continued, with GDP up
in Germany and Austria, numerous countries in
property price deflation and general uncertainty
slowed in the course of 2008. Despite strong
just 0.9% on the prior year (1.3%).
central and eastern Europe and central Asia.
unfolded in an economic environment which
economic links between EU countries, the
There is some overlap of the sales territory for
was set to enter a cool-down phase anyway
effects of the global economic slump were felt
In Russia and Ukraine, economic growth tailed
industrial trucks. In this sector, Zeppelin has the
after the boom of recent years.
here nonetheless. At just 0.8%, the growth rate
off considerably at 6.0% and 3.6% respectively
of GDP was well below the prior year figure of
(prior year: 8.1% and 6.9%). In the other CIS
2.7%.
countries, Belarus and Armenia as well as the
exclusive sales rights for the brand Hyster of
the US manufacturer NACCO Materials Hand-
In the USA, the 1.1% increase in GDP achieved
ling, Mayfield Heights (OH/USA). All the compa-
in 2008 (prior year: 2.0%) only partially reflects
nies in the Trade division are market leaders in
the collapse in growth of the final quarter. The
Germany recorded GDP growth of 1.3% com-
and Uzbekistan, in which the Zeppelin Group
their particular areas of the construction machi-
strength of export trade coupled with a decrease
pared to 2.6% in 2007. An unexpectedly strong
also has subsidiaries and representative offices,
nery business. The Company also sells a large
in imports played a major role in softening the
first quarter was followed by a delayed but all
the global economic turbulence did not weigh
number of add-on units as well as Claas and
effects and improving the trade deficit overall.
the more abrupt phase of weakness. The
as heavily.
AGCO agricultural machinery and Ponsse
Monetary and in particular fiscal policies intro-
shockwaves from other countries reached the
forestry machines in some territories. Under
duced quickly produced powerful results which
German economy, itself anyway entering a
the management of Zeppelin Power Systems
helped contain the clear downturn. The Japane-
downturn. Knock-on effects from the sub-prime
GmbH & Co. KG, the sales and service of
se economy has been heavily dependent on
and financial crisis burdened the economy in
auxiliary wind propulsion systems for the manu-
export trade in recent years and was particular-
the course of the year. Inflation increased
facturer SkySails is currently being expanded.
ly hard hit by the global economic slump, recor-
considerably until the middle of the year as a
ding a decrease in GDP of 0.7% in 2008 compa-
result of huge price hikes for foodstuffs, raw
red to growth of 2.0% in the prior year.
materials and energy. Until recently, the
The business activity of the Industry division
central Asian states Tajikistan, Turkmenistan
German economy suffered a lack of internal
comprises the development and manufacture
42
economic downturn was already palpable in
of silos and materials handling for the producti-
The economic development in the emerging
impulses, such as from private consumption.
on and processing of high-quality bulk goods in
countries of Asia, Latin America and central and
This was not helped by the appreciation of the
the worldwide market for plastics, rubber and
eastern Europe initially seemed astonishingly
euro, which burdened export trade and indirect-
tires. In this area, Zeppelin is one of the leading
stable and robust in the first year after the out-
ly investment by German companies.
suppliers. This field of business is managed by
break of the financial crisis. Most managed to
the interim holding Zeppelin Silos & Systems
escape the feared collapse in export trade at
In the other countries in which Zeppelin’s Trade
GmbH with registered offices in Friedrichs-
the beginning of 2008. In 2008 the Chinese
division has subsidiaries, business activity also
hafen. The company is divided into the product
economy showed the first signs of economic
developed negatively in 2008. Austria saw a
areas manufacturing plants, processing plants,
slowdown, however, instead of overheating as
drop in GDP growth from 3.1% to 1.7%. In the
standard products and components and ser-
had been forecast. GDP growth of 9.0% was
EU countries of central and eastern Europe, the
vices.
down on the prior year (13.0%) and failed to
slowdown in economic impetus which had
reach double digits for the first time in five
already started in 2007 continued. The GDP
2008 ZEPPELIN ANNUAL REPORT
43
Group Management Report
engines. Project work in the petroleum and locoThe Austrian construction industry also saw eco-
motive sectors developed well even in the fourth
Economic conditions put something of a damper
nomic development slow down in the course of
quarter of 2008, contrasting with the abrupt and
Development of revenue
on the sales markets of significance for the
2008. In total, construction investment fell by
drastic deterioration in situation the marine/
In fiscal 2008, the companies of the Zeppelin
Zeppelin Group in 2008. While several submar-
2.8%. This development played a considerable
shipping and industrial sectors. These sectors
Group were able to profit from the favorable
kets developed positively in the first half of the
role in the 9% decrease in demand for construc-
were shaped by existing overcapacity in global
economic development in the first half of the
year, a deterioration in the situation was seen in
tion machinery compared to the prior year. The
shipping traffic, the decommissioning of ships
year in particular. The Group generated revenue
the third and – above all – fourth quarter across
situation of the construction industry also dete-
and cancellation of new shipbuilding projects as
of EUR 2.447 billion, up 8.4% on the prior-year
all industries.
riorated considerably in the Czech Republic and
well as a collapse in export trade. The effects of
figure of EUR 2.257 billion. The influence of the
Slovakia in the second half of 2008. Gross invest-
the global economic crisis and the sharp fall in
global economic collapse midway through the
The construction industry in Germany, a key mar-
ment in construction fell 5.6% (prior year: grew
export trade were already noticeable in the
year is particularly relevant in an examination of
ket for Zeppelin, emerged from a weak phase
7.0%) in the Czech Republic, with Slovakia faring
second half of the year in the OEM and used
the individual quarters. With the exception of
lasting several years, with moderate growth in
even worse with a 7% drop compared to 2007.
engine project business sectors.
the final quarter which saw revenue drop 4%
the prior two years.
In Poland, where Zeppelin sells industrial trucks
below the prior-year level, the Zeppelin Group
only, the market for forklift tricks once again exhi-
Market development - Industry
managed to achieve steady growth until Sep-
This trend continued in the first quarter of 2008
bited growth compared to 2007, albeit at a much
The global chemicals industry, of key importan-
tember 2008. The Group’s international revenue
thanks to a good increase in investment in con-
lower rate of an estimated 10% to 15% in 2008
ce for Zeppelin’s Industry division, exhibited a
increased once again, accounting for a share of
struction. As the year progressed, the industry
compared to 50% in the prior year.
3% increase in total revenue in 2008, although
almost 50% compared to 45% in fiscal 2007.
this was attributable solely to price increases.
developed negatively in the light of price hikes
for construction materials and energy. Develop-
In the sales territory of Zeppelin International AG,
A decline in chemical production was to be
The increase in revenue was generated almost
ment was quite varied for the individual sectors,
the Russian, Ukrainian, Belarusian and Armenian
seen as early as the second quarter. This is
exclusively through internal growth, not signifi-
however. Residential housing was already sho-
markets which are relevant for us have to be
primarily due to the global cuts in production in
cantly through acquisitions.
wing weak development in 2007 and this conti-
broken down for examination.The markets for
the automotive industry and at manufacturers
nued (+ 2.1%). In contrast, commercial construc-
trenching and agricultural machinery developed
of consumer goods in Asia as well as the ailing
The increase in Group revenue compared to the
tion developed very strongly, acting as a
exceptionally positively in the first eight months
global construction industry. These factors
past fiscal year was mainly due to the very live-
crutch for the rest of the construction industry
of 2008. The increasing global repercussions of
combined to reduce demand for plastics on a
ly development in the first half of the year of
(+ 10.7%). Public spending on construction also
the financial and economic crisis led to a drama-
global scale. In addition, the increase in facilities
Zeppelin International AG, in which all the
boosted the positive development of the con-
tic deterioration of the situation, however, espe-
for the production and processing of plastics in
Group’s trade activities outside of the EU are
struction industry thanks to higher tax revenues
cially in Russia and Ukraine. Major factors in
the Middle East and overcapacity associated
bundled. This interim holding generated revenue
(+ 4.6%). Incoming orders and order backlog fell
2008 included the sharp decrease in prices for
with this led to a sharp drop in prices, with
of EUR 587 million (prior year: EUR 398 million),
considerably from 2008 onwards, reflecting the
raw materials as well as agricultural products, as
plants shut down and a lower level of invest-
up 47% on the prior-year figure. The German
economy as a whole, albeit with something of a
well as severe financing bottlenecks.
ment. This development will continue in 2009.
trading companies failed to meet their annual
In November 2008, the VDMA [“Verband
targets, however, reporting a decrease in reve-
struction increased 3.0% (prior year: 1.8%) in
Demand for diesel engines und units for marine,
Deutscher Maschinen- und Anlagenbau e.V.“:
nue of almost 6% to EUR 1.3 billion (prior year:
real terms in 2008. In spite of the positive trend,
locomotive, petroleum and industry applications,
German Engineering Federation] recorded 30%
EUR 1.4 billion) on account of the major
demand for construction machinery fell to
which is relevant for Zeppelin Power Systems
fewer orders than in the prior-year period.
downturn of the economy in the final quarter of
27,101 units (prior year: 32,763 units), a drop in
GmbH & Co. KG, continued to develop at a high
2008. Overall, the trading companies managed
growth from 19% in the 2007 to 17.3%. The
level in the first three quarters of 2008, though
to report a slight increase in revenue compared
downturn was especially felt in the rental sector,
this seem to be gradually leveling out. The
to the prior year, thanks to the development of
which had been buoyed by high levels of invest-
revision of the KWKG [“Kraft-Wärme-Kopplungs-
the companies outside of Germany. With con-
ment in rental assets but was affected across
gesetz”: German Combined Heating and Power
solidated revenue of EUR 2.208 billion, the
the board by a reluctance to invest in 2008.
Act] in the course of 2008 led to a good recovery
prior-year figure (EUR 2.080 billion) was excee-
of the power plant sector using natural gas
ded by 6.1%. They thus accounted for 90% of
time delay. Nevertheless, investment in con-
44
2. BUSINESS DEVELOPMENT OF THE COMPANY
Market development - Trade
2008 ZEPPELIN ANNUAL REPORT
45
Group Management Report
EMPLOYEES BY COMPANY
SALES BY COMPANY
at year-end
2008
2007
36
22
64
Zeppelin Baumaschinen GmbH
1.580
1.550
2
MVS Zeppelin GmbH & Co. KG
687
609
13
Zeppelin Power Systems
GmbH & Co. KG
377
337
12
238
216
10
811
688
18
1.458
1.081
35
5.151
4.481
15
Industry division (total)
629
581
8
Trainees and apprentices (Group)
361
275
31
ZEPPELIN GmbH Group (total)
6.177
5.359
15
ZEPPELIN GmbH (Holding)
Share of
group sales
Variance
EUR m
%
2008
2007
Zeppelin Baumaschinen GmbH
902
1.006
-10
MVS Zeppelin GmbH & Co. KG
165
153
8
Zeppelin Power Systems GmbH & Co. KG
228
212
8
Zeppelin Österreich GmbH 1
103
98
5
Phoenix-Zeppelin, spol. s r.o.1
223
213
5
Zeppelin International AG 1
587
398
47
2.208
2.080
6
239
176
36
2.447
2.257
8
Trade division (total)
Industry division (total)
ZEPPELIN GmbH Group 2 (total)
Zeppelin Österreich GmbH 1
Phoenix-Zeppelin, spol. s r.o.
Zeppelin International AG
1
1
Trade division (total)
Variance
%
EMPLOYEES
Annual average
2008
2007
Group (total) 1
5.973
5.121
5.271
4.497
of which:
Trade division
669
1
1
2
46
incl. affiliated companies
incl. ZEPPELIN GmbH
1
603
Industry division
incl. ZEPPELIN GmbH
33
21
incl. affiliated companies
group revenue. A total of 19,054 (prior year:
in the fourth quarter of 2008 and the tendency
Human resources
19,487) new and used construction machines,
of manufacturers of plastics to delay taking
The development of the headcount reflects the
already indicate that it will not be possible to
engines, fork-lift trucks and other machines and
delivery of and commissioning facilities until
further growth of the Zeppelin Group and above
maintain the current headcount at these compa-
equipment were sold or rented out for the first
after 2009, Zeppelin’s Industry division mana-
all of the trading companies outside Germany as
nies. The share of employees at the Group’s
time - that is 2% less than in 2007. With a 6%
ged to generate revenue of EUR 238.7 million
well as of the Industry division. The number of
international subsidiaries increased once again,
increase in revenue overall, the foreign share
(prior year: EUR 176.1 million), an increase of
employees at the Group increased by 15% com-
bringing the total to around 47% (prior year:
was up 29%, of which 90% is attributable to
36%, contributing to the Group’s total operating
pared to fiscal 2007 to a total of 6,177 as of year-
42%) or 2,875 employees (prior year: 2,243).
Zeppelin International AG and its subsidiaries.
performance at a higher than average rate. The
end 2008 (prior year: 5,359). Of this rise, 46%
foreign share in revenue of the Zeppelin
related to Zeppelin International AG and its sub-
In all companies, management and staff made
The Zeppelin Industry division continued along
Industry division fell to 66%, down from 83%
sidiaries. The reason so many new employees
every effort to further increase efficiency and
its trajectory of growth started in prior years in
achieved in fiscal 2007.
were taken on was the rapid expansion of busi-
productivity. As in the prior year, basic and
fiscal 2008 supported by its good order backlog
ness until fall 2008, especially in Russia and
advance training was one focus of the Group’s
and incoming orders at a level above the long-
Ukraine. The dramatic collapse of the market at
human resources policy. The number of
term average. In spite of the dramatic downturn
the end of 2008 as well as expectations for 2009
trainees at the Group rose by 31% to 361
2008 ZEPPELIN ANNUAL REPORT
47
Group Management Report
(prior year: 275), meaning that trainees account
the corporate centers (CC) at the Group holding
The program for modernization and expansion
tion machines as well as new machines and
for 5.8% of the headcount. The focus of the
were defined for the first time in fiscal 2008.
of our network of branches in Germany that has
equipment from other product areas (materials,
further training program was on technical trai-
This concerned the corporate centers com-
been running for a number of years was conti-
modular space systems, construction equip-
ning, training for the sales organization, advan-
pliance, controlling, finance, real estate, IT,
nued at our branches in Achim near Bremen,
ment) with a value of around EUR 80 million. In
ce training for future management and on provi-
Group development, HR, internal audit, legal
Alsfeld, Hanau and Cologne in 2008, alongside
contrast to planning assumptions for 2008, the
ding employees in management positions with
matters and corporate communication. As well
numerous individual measures including those
capacity utilization of the rental assets fell by
deeper management knowledge. Under the
as being responsible for the strategic alignment
for the improvement of industrial safety and
3.0% compared to the prior year on account of
management of the chief personnel officer,
of the Group as a whole and for the strategic
environmental and fire protection. We also
stagnating demand in the second half of the
a cross-company HR network was put in place.
targets laid down by the corporate centers, they
expanded individual locations outside of
year in the major segments construction machi-
This is intended as a platform to enable the
are available to provide services for all operatio-
Germany and set up new sales, service and ren-
nes and vehicles. Measures have been introdu-
respective heads of personnel to exchange
nal business units of the Group. The corporate
tal branches, including in Austria, the Slovak
ced with the aim of improving device manage-
experiences and will contribute to the imple-
centers are set up based on the concept of
Republic, Poland, Russia and Ukraine. In the
ment and capacity utilization in order to counter
mentation of the Group’s personnel strategy.
bundling know-how within the Group to centra-
Trade division, branches are set up and moder-
increasing pressure on prices and the effects of
Another important advantage will be the identi-
lize certain specialist resources.
nized on the basis of the construction manual
the global economic collapse. In addition, MVS
developed by the corporate center for real
Zeppelin took on new sales staff and provided
Zeppelin Baumaschinen GmbH launched a
estate in the course of a project. This construc-
the sales organization with optimized software
PINS recovery program in August 2008. The
tion manual sets out the standards for branches
for recording and measuring sales activities in
Significant events in the fiscal year
aim of this wide-spectrum package which incor-
of various sizes, making use of the most up-to-
2008. These initiatives are aimed at further
In 2008, the Zeppelin Group companies
porates additional sales support from Caterpillar
date findings in the fields of technology, produc-
expanding on the leading market position in
managed to maintain their respective market
was to regain market shares, especially in the
tivity, energy efficiency and similar aspects.
Germany. The “Profi-Baushop” concept first
positions or even expand on them, despite the
standard equipment segment. In the major mar-
steady decline in the economic environment
ket segments, we managed to regain market
In terms of rental business, the Zeppelin Group,
at 13 of the 110 rental branches of MVS Zeppelin
over the course of the year. Our strategic and
shares by the end of 2008; these had been lost
in close cooperation with our manufacturing
with plans for further expansion. In addition to
operating efforts focused on further renewal of
in the past on account of the negative market
partner Caterpillar, has set itself the target of
the rental machines and equipment, these bran-
our organization and processes, cost-cutting
development in particular, but also due to
becoming market leader for construction machi-
ches offer equipment, consumables and single-
measures and risk minimization, and last but
Caterpillar’s price increases at the beginning of
nery, or extending our market leadership, by the
use items to meet customers’ various construc-
not least, greater penetration of international
the year. The program will continue in 2009.
end of 2015 in every country in which we are
tion site needs. The concept is intended help
markets.
The modernization of the IT system for process
developing rental activities. The overall strategy
retain customers.
optimization is the largest project in the history
to achieve this was developed in fiscal 2008
In 2008, the Zeppelin Group underwent an
of Zeppelin Baumaschinen GmbH in terms of
and approved by the Group management board.
Despite the significant slowdown over the cour-
external rating by Creditreform Rating AG once
scope and expense. The introduction of the
Zeppelin Rental GmbH with registered offices
se of 2008, our Austrian rental company MVS
again and was awarded an A+ rating for the
new ERP standard software M3 from the
in Garching near Munich was founded at the
Zeppelin Österreich GmbH adhered strictly to
fourth time in a row. This result confirms the
US company Lawson had originally been plan-
start of 2009 to improve the implementation of
its expansion policy, opening two new rental
good credit standing of the Group and the
ned for July 2008 but was postponed until
the strategy and capitalize on synergy effects
centers (in Linz and Zwettl) and adding to its
above-average rating of key financial and quali-
6 April 2009. The adjustments to the system
between the individual companies. This compa-
rental fleet. Further expansion of know-how,
tative factors compared to the economy as a
required in the light of comprehensive testing
ny will manage and coordinate all rental activi-
additional rental branches and enhancement of
whole and within our industries.
of prototypes were incorporated into the soft-
ties of our trading companies both in Germany
the product portfolio make up the strategy plan-
ware in the course of 2008 and subsequently
and internationally.
ned for implementation in 2009.
fication of high potentials, who can be supported with targeted training measures.
To use synergies and with the aim of ensuring a
thoroughly tested. In preparation for the new
high degree of professionalism and thus the
IT system, all employees affected received
MVS Zeppelin GmbH & Co. KG once again
With the aim of expanding the business field
sustained success of the Zeppelin Group, the
training well ahead of its launch.
modernized its rental assets in fiscal 2008
and tapping into market potential in the long
through acquisition of new Caterpillar construc-
term, Zeppelin Power Systems GmbH & Co. KG
responsibilities and guideline competencies of
48
launched in fiscal 2007 has now been rolled out
2008 ZEPPELIN ANNUAL REPORT
49
Group Management Report
acquired a 4% shareholding in the Hamburg-
Zeppelin Österreich GmbH also implemented
machines. Compact wheel loaders were an
revenue considerably with sales of machines in
based company Firma SkySails GmbH & Co.
various measures to expand business in sales
exception to the rule, and were very well recei-
this area. Furthermore, several large-scale pro-
KG. Founded in 2001, SkySails has developed a
and services in the engine segment. The sale of
ved by Czech and Slovak customers, not least
jects for optimizing and streamlining internal pro-
wind propulsion system for cargo vessels using
services for construction machines also develo-
thanks to their high performance coupled with
cesses were carried out. The projects focused
a large towing kite which can reduce annual fuel
ped especially well, with 63% new machines
attractive financing packages in cooperation
on spare parts and machine logistics, sales and
costs by between 10% and 35% depending on
sold including a maintenance agreement.
with Caterpillar Financial Services.
services as well as qualitative and structural
the prevailing wind conditions. Customer
Despite reduced capacity utilization for services
potential is currently estimated at 10,000 of
owing to the unfavorable development of the
In its capacity as interim holding, Zeppelin Inter-
secondary level. Zeppelin Ukraine TOW doubled
some 100,000 vessels in existence globally,
market, we still managed to improve margins.
national AG with registered offices in Zug,
its revenue compared to the prior year. Several
with new constructions adding to that figure.
50
adjustments to management at primary and
Switzerland, manages the sales and service busi-
large orders in mining and agriculture as well as
The technology is expected to be ready for pre-
Since the beginning of 2006 our interim holding
ness of the Zeppelin Group in Russia, Ukraine,
a targeted focus on customers in road construc-
production in 2009. We set up our own compa-
Phoenix-Zeppelin, spol. s r.o., with registered
Belarus, Armenia, Tajikistan, Turkmenistan and
tion and the extraction industry were the main
ny, Zeppelin SkySails Sales & Services GmbH &
offices in Modletice near Prague, has also been
Uzbekistan. In addition to sales and service for
drivers of the increase in revenue. Business also
Co. KG with registered offices in Hamburg, in
responsible for the sales and service activities
Caterpillar construction machines and engines,
developed at a very satisfying level in Belarus.
which Zeppelin Power Systems holds a 67%
for Caterpillar construction machines and
the company also generates a significant porti-
Of particular note is the fact that an unexpectedly
shareholding, for sales and maintenance of
engines and Hyster industrial trucks in the
on of revenue from agricultural and forestry
high number of medium-sized businesses were
SkySails systems. Our close contact with the
Czech Republic and the Slovak Republic as well
machines. The first eight months of 2008 in
gained as potential customers for imported con-
shipping industry will release synergies in sales
as the sales and service of Hyster equipment in
particular were once again characterized by a
struction machines in this country. Furthermore,
and services of diesel-wind hybrid propulsion
Poland (Zeppelin Polska Sp. z. o.o.), Hungary
significant rise in revenue, especially in Russia
business with engines and components develo-
systems, which can be utilized over the coming
(Zeppelin-Körös-Spedit
Ukraine
and Ukraine. As the repercussions of the global
ped much better than expected. The sharp
years as we penetrate this field of business.
(Phoenix-Zeppelin Ukraine Ltd.). The interim
economic crisis were felt in the final quarter,
increase in demand for local energy supplies as
Kft.)
and
holding also holds a 49% shareholding in the
the market situation took a dramatic turn for the
well as the needs of Belarusian plant constructi-
Furthermore, we pressed ahead with and refi-
Czech company CZ LOKO a.s., which operates
worse, however. As the crisis persisted, it beca-
on companies and manufacturers of capital
ned the restructuring measures implemented in
in the field of motorization and repair of diesel
me apparent that these countries’ economies
goods explain this development.
the fourth quarter of 2007 at Zeppelin Power
locomotive engines. Furthermore, Phoenix-
were harder hit than any other region in the
Systems in the three operating sectors marine,
Zeppelin is responsible for agricultural machinery
world, not less badly affected as had originally
Business also developed very well in Tajikistan;
locomotive/industry/petroleum and EPG/gas as
sales in the Czech Republic and Slovak Repu-
been assumed. Nevertheless, the Zeppelin sub-
previously, our subsidiary in Uzbekistan had pro-
well as the associated integration of service
blic. This is an area which is currently being built
sidiaries were able to increase revenue once
cessed the business. Therefore, a local mana-
responsibility in each sector in the course of
up and may be expanded on a wider scale
again compared to fiscal 2007. The dramatic
ging director was appointed in September and
2008. The prerequisites for optimal business
through acquisitions. All subsidiaries of this
depreciation of the rubel and hryvnia against the
the company will operate independently of the
processes, from sales to project management
interim holding pushed ahead with efforts to
US dollar saw them fall by 27% and 60% in
Uzbekistani company. Zeppelin Turkmenistan
and product/application support to engine servi-
expand business activities in 2008, though the
value respectively between July and December
won a further large-scale order worth over USD
cing are now in place. This structure is better
economic slowdown on the relevant markets
2008, with exchange losses burdening the ear-
64.0 million in 2008. In conjunction with another
aligned to our customers’ demand for holistic
made it difficult to capture market shares.
nings of Zeppelin International at a higher than
follow-up order of USD 15.0 million, this is the
solutions. Further personnel and structural opti-
Nevertheless, the sale of Hyster industrial
average rate. The losses stem from liabilities
largest transaction ever in the history of Zeppelin
mization measures were realized in the course
trucks was particularly successful, with fleet
denominated in US dollars due to Caterpillar for
International. The structural and personnel
of 2008, including the successful implementati-
sales to Coca Cola in the Czech Republic and
the purchase of construction machines and
changes introduced at the Turkmenistani com-
on of the 6 Sigma method for continual process
Poland and Pilsner Brewery, also in the Czech
spare parts valued in local currency at the
pany show very positive results, improving and
improvement as well as the integration of new
Republic, as well as DHL in Hungary. The
exchange rate on the procurement date.
stepping up customer relationships at all levels
employees in the area of parts sales & services
construction machinery business of Phoenix-
aimed at optimizing relations with numerous
Zeppelin suffered from the unfavorable con-
Zeppelin Russland OOO was also successful in
service business to earnings for the first time
customers.
ditions and sharply inflated prices for Caterpillar
the agriculture and forestry sectors, boosting
since the company was founded.
and resulting in a positive contribution of the
2008 ZEPPELIN ANNUAL REPORT
51
Group Management Report
RESULTS FROM
ORDINARY ACTIVITIES
BY COMPANY
The Zeppelin Industry division was operating at
method and knowledge management, nume-
full capacity throughout 2008 thanks to a conti-
rous projects and measures to improve con-
nuing high level of engineering and production
struction processes were also implemented.
orders. This must not be allowed to veil the
Cost-cutting concepts for the production of
fact, however, that the markets relevant for
silos were refined and successfully tested with
these areas were already cooling noticeably as
prototypes. Considerable progress was made in
of year-end 2008, and are expected to exhibit
the development of a new welding procedure
even more of a downturn over the course of
which significantly reduces the production time
2009. The strategic acquisition of an enginee-
for silos.
Share of
group sales
Variance
EUR k
%
2008
2007
Zeppelin Baumaschinen GmbH
39.445
54.851
-28
MVS Zeppelin GmbH & Co. KG
11.690
15.287
-24
Zeppelin Power Systems GmbH & Co. KG
21.337
18.982
12
2.769
4.712
-41
13.909
15.374
-10
4.041
28.229
-86
Trade division (total)
93.191
137.435
-32
Industry division (total)
12.798
3.918
227
101.176
119.121
-15
26.359
52.426
-50
Zeppelin Österreich GmbH 1
ring company in India and the foundation of a
Phoenix-Zeppelin, spol. s r.o.
subsidiary in Turkey will strengthen Zeppelin's
Zeppelin International AG
1
1
presence in the Industry division on these key
markets. The joint venture set up with a partner
in Saudi Arabia in 2007 (Zeppelin Gulf Co. Ltd.)
went into operation in 2008 and operated at full
capacity for the production of silos and rende-
ZEPPELIN GmbH (Group) 2 (total)
ring of services for pipeline construction.
of which foreign companies
R&D activities focused on developing products
for innovative technical solutions. Filter technology was included in the product range for the
first time in the Industry division. In addition, a
1
2
incl. affiliated companies
incl. ZEPPELIN GmbH
new production line was constructed at the
Friedrichshafen branch. As well as standard
modules, process filters for the demanding task
of gas cleaning are designed and produced.
Furthermore, the prototype of a HEPA filter
(high performance particle filtration) for particle
separation was built, based on a development
3. RESULTS OF OPERATIONS, FINANCIAL
POSITION AND NET ASSETS
of the Karlsruhe Institut of Technology. This proto-
52
type is currently undergoing trials at a biomass
The development of the results of operations,
compared to the prior year. As a result of
power plant. A new pneumatic conveyor unit
financial position and net assets of the Zeppelin
growth in revenue and improved operating per-
was installed at the technical department in
Group in 2008 reflects the effects of the global
formance, the Zeppelin Group saw an increase
Friedrichshafen for carrying our conveyor expe-
economic downturn on our markets and especi-
in total assets. This increase was driven not
riments using a special bypass procedure. The
ally the currency crisis in the non-EU eastern
least by the modified procurement conditions
product range of the Zeppelin Industry division
European countries. The development of our
of our main supplier Caterpillar, which, coupled
can thus now be expanded to include further
business environment in the second half of the
with the decline in sales figures in the final
product groups. A process lock which was cus-
year in particular affected our performance figu-
months of 2008, led to higher inventories.
tom developed for a customer last year for use
res. The net income for the year of the Group
in a procedure was successfully implemented
nevertheless remained at a high level and we
Results of operations
for the first time. In the course of ongoing
achieved the second best return in the history of
The 9% rise in total operating performance of
process optimization based on the 6 Sigma
the Company. As planned, equity also increased
the Zeppelin Group to EUR 2.545 billion (prior
2008 ZEPPELIN ANNUAL REPORT
53
Group Management Report
COMPOSITIONS OF NET ASSETS, EQUITY AND LIABILITIES
DEVELOPMENT OF CAPITAL EXPENDITURES IN THE GROUP
Assets
Balances sheet total in EUR k
EUR k
I. Intangible assets
II. Property, plant and equipment
- Land and buildings
- Technical equipment, machines
and fixtures and furniture
- Rental assets
- Other items of property, plant and equipment
III. Financial assets
Total capital expenditures
2
1
of which reclassifications from inventories
2
changes in consolidated group
2008
2007
2006
2005
2004
10.358
8.174
3.733
1.208
1.943
127.340
117.292
118.389
96.205
94.138
11.494
20.820
6.918
4.279
6.800
19.397
18.705
11.326
11.943
72.250
85.915
72.657
7.533
5.517
14.230
7.326
5.830
12.625
5.110
2.065
4.632
627
150.323
130.576
124.187
102.045
96.708
–
27.736
–
2.885
–
- 305
1.177
1.355
1.177
29,6 %
30,1 %
29,1 %
29,0 %
Intangible assets, property
plant and equipment,
equity investments
Equity
44,2 %
71.519
7,7 %
8,9 %
Pension accruals
40,2 %
16,9 %
9,6 %
Other long-term accruals,
long-term liabilities
29,7 %
46,3 %
52,5 %
Inventories
26,2 %
Receivables, other assets,
cash and cash equivalents
Short-term accruals
and liabilities
2008
2007
2008
2007
year: EUR 2.338 billion) was driven by the 8%
formance made a positive contribution to the
Other operating expenses increased at a higher
The Group’s earnings before income taxes fell to
rise in revenue to EUR 2.447 billion (prior year:
increase in earnings in fiscal 2008. The increase
rate than total operating performance, rising to
EUR 98.7 million (prior year: EUR 117.6 million.
EUR 2.257 billion). Completion and delivery of
is attributable to the 17% rise in the average
EUR 283.7 million which corresponds to 37%
The return on sales before taxes therefore came
large-scale projects in the Industry division in
headcount, due primarily to new hires at the
(prior year: EUR 206.7 million). Reasons for this
to 4.0% (prior year: 5.2%). Before taxes, the
particular meant that there was a smaller
subsidiaries outside Germany. Another contri-
included the increase in selling costs owing to
return on equity improved to 26.8% (prior year:
increase in inventories of finished goods and
butory factor to the increase in the Group’s per-
higher revenue (+EUR 3.2 million), higher
38.2%), while the return on capital employed
work in process to EUR 4.4 million (prior year:
sonnel expenses was the collectively bargained
expenses for the larger number of locations
rose to 10.0% (prior year: 13.0%).
EUR 20.8 million). Other operating income
wage increases of 2% in Germany and just
(+EUR 6.9 million), as well the primary cause,
increased markedly to EUR 92.2 million (prior
short of 10% in the Czech Republic and the
exchange rate losses, which were up EUR 54.1
In 2008, the Zeppelin Group generated net inco-
year: EUR 59.0 million), primarily as a conse-
Slovak Republic, for example. The ratio of per-
million on the prior year. Of this increase, EUR
me for the year of EUR 65.4 million (prior year:
quence of higher exchange gains (+ EUR 17.3
sonnel expenses to revenue remained virtually
35.5 million is attributable to the Russian and
EUR 71.4 million) after deducting income taxes
million) as well as increased reimbursements
stable at 12.1% (prior year: 12.3%).
EUR 11.2 million to the Ukrainian company on
of EUR 33.3 million (EUR 46.2 million). Following
account of considerable depreciation of the
the German Business Tax Reform, the tax rate
from suppliers and insurers (+ EUR 10.8 milli-
54
1.355
9.989
1
88.916
572
-
Liabilities
on). Cost of materials rose to EUR 1.821 billion
Amortization of intangible assets and depre-
respective local currencies in the final quarter of
was reduced to 34% in Germany (2007: 39%;
(prior year: EUR 1.696 billion) which at 7%
ciation of property, plant and equipment was
2008 as well as at the start of 2009 (adjustment
2006: 45%).
represents a lower rate of growth than total
up EUR 1.4 million on the prior year to EUR
of the balance sheet to reflect events).
operating performance, meaning that the ratio
22.9 million. This increase is essentially due to
of cost of materials to total operating perfor-
high capital expenditures in fiscal years 2007
The financial result of EUR - 20.2 million (prior
The financial demands on the Zeppelin Group are
mance fell slightly to 71.6% (prior year:
and 2008. Depreciation of assets for rental
year: EUR - 16.4 million), 0.8% as a percentage
characterized by fixed assets (including its extensi-
72.6%).
increased to EUR 31.0 million (prior year:
of revenue (prior year: 0.7%), was affected by
ve rental fleet) accounting for around a third of total
EUR 26.8 million) on account of intensified
the financing of numerous investments, the
assets on the one hand, and the inventories and
The slower rate of growth, 7%, of personnel
capital expenditure, up 13% to EUR 218.5 mil-
increase in stocks and a higher proportion of
receivables required for trading of construction
expenses (EUR 296.1 million; prior year: EUR
lion (acquisition cost). It was included under
long-term financing.
machinery and other high quality capital goods on
277.8 million) compared to total operating per-
cost of materials.
Financial position
the other, which exhibit a relatively rapid turnover.
2008 ZEPPELIN ANNUAL REPORT
55
Group Management Report
Group equity rose by EUR 53.3 million in fiscal
ons for financing sales in Germany and abroad.
ments in land, buildings and other assets as
2008 to EUR 394.4 million (prior year: EUR
Since 2004, the Group in Germany has been
well as furniture and fixtures and rental assets.
341.1 million). The equity ratio remained stable
using publicly traded financing instruments
at 29.1% compared to 29.0% in the prior year,
such as debenture bonds with a current volume
Due to the increase in inventories, the compo-
for the results of operations, financial position
with total assets up 15% to EUR 1.355 billion
of EUR 150.5 million and an asset backed secu-
sition of assets in the consolidated balance
and net assets of the Group after the balance
(prior year: EUR 1.177 billion). Long-term funds
rities program for EUR 25 million. In addition,
sheet as of 31 December 2008 changed once
sheet date or they have already been accounted
classified as liabilities totaling EUR 727.9 million
leasing is not only used as an instrument for
again compared to the prior year. The share of
for in the 2008 financial statements.
(prior year: EUR 559.6 million) exceeded fixed
extensive investments in the rental assets but
fixed assets (EUR 402 million) dropped to
assets and the non-current portion of current
also to finance vehicles and IT hardware. The
29.6% (prior year: 30.1%), while the share of
assets totaling EUR 413.6 million (prior year:
conditions for the drawing of credits benefited
inventories (EUR 599 million) dropped to 44.2%
EUR 364.4 million) by EUR 314.3 million (prior
in 2008 from the A+ rating from Creditreform
(prior year: 40.2%).
year: EUR 195.2 million) as of the balance sheet
Rating AG, which was recently confirmed for
date and comprise equity, pension provisions
the fourth time in a row. The internal bank
Trade receivables fell to 20.3% (prior year:
Risk management is an important component
(EUR 499.0 million), long-term other provisions
ratings of the Zeppelin Group were also confir-
23.3%) in proportion to net assets, rising by just
of the business and decision-making processes
(EUR 35.6 million) and liabilities to banks and
med.
1% to EUR 276 million (prior year: EUR 274 mil-
in the Zeppelin Group. The early identification,
There were no events of significant importance
5. RISK REPORT
Risk management
lion) while revenue was up 8%. Cash and cash
quantification and reporting of risks allows
thus covered 53% (prior year: 41%) of the
The additions to fixed assets of EUR 149.8 mil-
equivalents fell 27% to EUR 24 million. The
them to be evaluated and controlled.
Group’s inventories.
lion (incl. rental assets of EUR 88.9 million) in
above average rate of development of net
the fiscal year were counterbalanced by depre-
assets meant that capital turnover fell slightly to
The core of risk management is therefore a
As of the end of the fiscal year, short-term pro-
ciation of EUR 54.3 million (of which EUR 31.0
a level 1.9 p.a. (prior year: 2.1 p.a.). The theore-
detailed planning and reporting function encom-
visions and liabilities amounted to EUR 627.2
million from rental assets offset against cost of
tical range of trade receivables decreased
passing all the companies in the Group. The
million (prior year: EUR 617.3 million). They
materials). Depreciation thus covered 36.2%
further to 41 days (prior year: 44 days). Outside
monthly controlling of the key performance indi-
mainly related to trade payables of EUR 288.2
(prior year: 37.2%) of capital spending.
the consolidated balance sheet, the companies
cators is at the heart of the system. Special
others (EUR 193.3 million). Long-term funds
in the Zeppelin Group had leased assets and
attention is paid to risks in the inventories and
tax and other provisions of EUR 119.1 million as
The net cash flow of the Group increased on
machines for the rental fleet as well as assets
receivables dominating the business of the
well as payments received and other liabilities
the prior year by EUR 22.0 million or 14.8% to
(vehicle fleet, IT equipment) totaling EUR 232.0
Trade division and the risks inherent in the
of EUR 81.0 million. The liability to Caterpillar
EUR 170.0 million in 2008 (prior year: EUR
million (prior year: EUR 230 million). The rental
long-term construction contracts in the Industry
Financial Services of EUR 100.0 million disclo-
148.0 million). The net cash flow to revenue
assets accounted for EUR 220.3 million (prior
division.
sed in the prior year under other liabilities
ratio is thus 6.9% (prior year: 6.6%).
year: EUR 216 million) thereof.
million, liabilities to banks of EUR 126.4 million,
The controlling-based reporting system is sup-
relates to a previous five-year financing package
56
4. SUBSEQUENT EVENTS
for the purchase of MVS AG, Berlin (2003), and
Net assets
plemented by a designated risk reporting
was repaid on schedule in 2008.
Net assets of the Zeppelin Group developed at
system. Twice a year, the risk reporting system
a higher rate than total operating performance
of the Group companies describes and evalua-
At the end of 2008, the Group had lines of cre-
(+9%), increasing 15% to EUR 1.355 billion in
tes the risks inherent in the critical success fac-
dit comprising bank loans and guarantees of
2008 (prior year: EUR 1.177 billion). Of the EUR
tors.
EUR 575 million at 18 German and foreign
178 million increase in assets, EUR 125 million
banks, of which 43% or EUR 250 million (of
or 70% was attributable to the increase in
In 2008, the corporate center for internal audit
which EUR 95 million for guarantees) had been
inventories, of which EUR 113 million pertained
focused on the Trade division, taking the size
used at year-end 2008. The companies in the
to merchandise in the Trade division in relation
and significance of the companies concerned
Trade division once again had extensive lines of
to high order backlogs, long delivery times and
into account. It concentrated efforts on suppor-
credit at their disposal in 2008 at Caterpillar
new order terms. A significant increase also
ting the introduction of the ERP software M3 at
Financial Services and other specialist instituti-
arose on account of the high level of invest-
Zeppelin Baumaschinen GmbH, cooperating
2008 ZEPPELIN ANNUAL REPORT
57
Group Management Report
with the Group’s compliance team, including
and also industry risks are diffused. This holds
With the extensive Caterpillar engine program,
uncertain. This situation is being dealt with by
the audit of compliance-related processes at
true both for the cyclical developments and for
Zeppelin is meanwhile also the most important
stockpiling and the use of machines from the
foreign subsidiaries as well as the development
the varying rates of growth in the key purcha-
Caterpillar dealer for built-in motors in ships and
used machines and engines park to bridge
and refinement of our risk management tools.
sing industries in the various regions served.
locomotives on the international stage and is
the time until the delivery can be made. The
currently expanding in the areas energy genera-
situation regarding Caterpillar’s delivery times
Compliance
This diversification of business activities was
tion, mobile radio and oil extraction. Sales and
improved considerably at the end of 2008 on
Compliance at Zeppelin is based on the convic-
not sufficient to fully protect Zeppelin’s busi-
services relating to Hyster industrial trucks
account of the global fall in demand. The ability
tion that social responsibility, legal integrity and
ness activities from the global economic decli-
open up opportunities in logistics, a long-term
of Zeppelin’s manufacturing partners to deliver
ethical action are the key to sustainable
ne seen in every industry in 2008 and the huge
and stable growth market. The Group sees
has been suffering increasingly recently, howe-
success. Compliance with legal provisions,
upheaval on the financial and foreign exchange
additional opportunities for its agricultural and
ver, on account of the effects of production cuts
government requirements and internal corporate
markets, even in the major global economies.
forestry machines in the rapidly growing agricul-
owing to shorter working hours and supplier
ture and forestry sectors in eastern Europe.
default due to insolvency.
guidelines is an important aspect of the
management and corporate culture at Zeppelin.
Our traditional focus on customers in the construction industry gave way to growth in the
The Zeppelin Industry division with a high pro-
We responded to growing demand from plant
The Zeppelin Group’s code of conduct was issu-
engine business for ship construction, industri-
portion of foreign business benefited from the
construction in Zeppelin's industry division in
ed in March 2008 and has been signed by the
al companies and power generation, as well as
substantial long-term increase in global demand
recent years with a corresponding organizational
general managers of all our subsidiaries and
the increasingly diversified rental business and
for plastics and the investment by the chemi-
and capacity structure at the central plant in
second-tier subsidiaries. Employees and busi-
successful growth in the plant construction
cals and plastics industry this sparked. Enginee-
Friedrichshafen, as well as the decentralized
ness partners can access the code, which
business of the Industry division.
ring capacities and expertise were expanded by
expansion of local engineering firms in major
forms the basis of our compliance program, on
our homepage (www.zeppelin.de).
means of targeted acquisitions of smaller busi-
target markets. Zeppelin also cooperates with
With revenue from customers in Germany
nesses in recent years in interesting industries
experienced local partners, for instance to build
accounting for 50% of group revenue, Germany
such as rubber and tire manufacturing, minerals
and erect silos, especially for large-scale
Compliance was set up as an independent
remains the most important market of the
and foodstuffs. The successful realization of
projects. In individual cases, joint ventures are
department in September 2008 and allocated to
Group companies, although decreasingly so.
large-scale turnkey plants in recent years,
also set up, e.g., Zeppelin Gulf, Saudi Arabia, for
the director of the HR and legal department of
The risk inherent in the already volatile German
Zeppelin proved itself a competent partner,
projects in the Middle East.
ZEPPELIN GmbH. At the end of 2008, a compli-
construction industry has been encountered by
even for global leaders of large-scale plants.
ance officer was appointed from the complian-
continuously improving the service offering,
ce team at ZEPPELIN GmbH. A compliance
reducing fixed costs, flexible use of capacities
One consequence of the economic and political
Zeppelin views the recruitment, integration and
officer is to be appointed at all large business
and ongoing portfolio grooming. As a result,
uncertainty in the countries of eastern Europe
long-term retention of qualified specialists and
units, subsidiaries and subgroup holdings.
high-risk peripheral activities that burden the
and Central Asia is the relatively low level of
executives as fundamental for the success of
Employees and external parties can contact the
result were deliberately discontinued in the
investment in these countries.
the Company. Our corporate mission not only
compliance officer via the homepage and a
last few years. The product program and
dedicated
the sales activities have been expanded to
Performance-related risks
ny to our employees, but also expresses our
include industries and customers not depen-
The punctual supply of construction machines
determination to be an attractive employer. To
dent on the construction industry, such as
and engines to customers of the companies in
avoid personnel-related risks, applicants are
quarrying and extraction, environmental and
the Trade division is essentially secured by rolling
selected carefully and employees receive
timber industry, mining, horticulture and land-
demand management with a lead time of up to
extensive basic and advanced training, inclu-
scape gardening.
twelve months. Since 2004, the worldwide
ding at the Zeppelin Academy. High-potential
demand for construction machinery has, howe-
programs for employees and an assessment
email
address
(complian-
ce@zeppelin.com).
A. Individual risks
General economic and industry risks
58
Personnel risks
sets out the goals and strategy of the Compa-
Due to the wide range of countries, industries
The fact that the foreign share of group revenue
ver, been growing at such a rate that the delivery
center for the selection of future specialists
and activities in which ZEPPELIN GmbH and its
has increased substantially in recent years also
times at Caterpillar for standard and large-scale
and executives aim to ensure that potential is
subsidiaries are involved, the general economic
reflects
machines as well as engines are long and often
tapped into at an early stage. Cross-company
the
geographical
diversification.
2008 ZEPPELIN ANNUAL REPORT
59
Group Management Report
development of executives is also supported at
Financial risks
Credit standing checks of customers are to a
insurance policies in the respective countries,
group level. The standard of the training of our
Generally speaking, financial risks are limited by
large extent updated online in cooperation with
potentially uninsurable serious losses are cover-
apprentices is exemplary in our business and
the equity ratio which we aim to keep at 30%
credit agencies on an ongoing basis, the receiv-
ed by a multi-line policy in Germany.
ensures that our growing need for well-quali-
or above. In addition, long-term pension provisi-
ables collection is handled with an efficient
fied young people is always covered. The
ons of EUR 105 million are available. The econo-
dunning system, involving debt collecting agen-
Larger investment projects are decided on the
operation of our own training centers is a deci-
mic appropriateness of these is ensured using a
cies. For the most part, sales financing for sales
basis of planning and economic viability calcula-
sive prerequisite for growth in eastern Europe-
discount factor of 4.5% and a rate of 1.0% for
of machines is carried out via special instituti-
tions in accordance with the Group’s invest-
an countries owing to a lack of qualified candi-
future pension increases.
ons which thus also bear a large part of the
ment authorization guideline which was
potential default risks. In 2008, other instituti-
updated in 2008.
dates. Investment in modern work stations at
workshops and in offices, as well as in custo-
To diversify the external sources of financing,
ons were included in the sales process for
mer service vehicles not only represents a
supplier financing linked to sales and compre-
Caterpillar Financial Services, our strongest
further way of improving employee efficiency,
hensive lines of credit of German and, to a
partner to date, because it significantly reduced
but is also an important factor in retaining
growing extent, also foreign banks are being
its offering on account of the modified financing
employees and attracting applications on the
supplemented by the possibility of sales finan-
priorities of the Caterpillar Group. This measure
Actively seeking and using opportunities while
employment market.
cing from various special institutions such as
will be stepped up in the future. Customers are
at the same time weighing up the associated
Caterpillar Financial Services and GEFA as well
required to make payments on account for plant
risks, is a core component of entrepreneurial
Thanks to the target and performance-related
as an ABS program. The volume of medium-
construction products and large ship engines as
activity and thus of the management approach
salary components, the remuneration level of
term and long-term financing was increased
well as on international markets, and credit
of the Zeppelin Group and all its subsidiaries.
employees is higher than the industry average.
again in 2008 by taking out new five-year and
insurance is taken out in some cases.
Regular employee surveys and annual employee
seven-year bonded loans (EUR 80.5 million) as
feedback meetings allow any unfavorable deve-
well as a three-year bank loan (EUR 60.0 milli-
One of the compensation-related criteria for
tative for capital goods of major, and usually lea-
lopments as well as employee and HR needs
on); we will press ahead with this in 2009.
management in the Group, besides earnings
ding, suppliers such as Caterpillar, NACCO,
targets, is a system of receivables and invento-
AGCO, Claas, Terex and Ponsse, we are able to
Currency risks from individual transactions or
ry management geared consistently to certain
exploit potential in our markets to a very high
projects are hedged where this is economically
targets in terms of amount and risks.
level. This applies especially to those countries
requiring further attention to be noted and measures for improvement introduced.
60
B. Opportunities
As the exclusive sales and service represen-
of eastern Europe benefiting from rapidly rising
The effects of the current economic downturn
justified. Losses from unexpected and large
can largely be contained through adjustments
depreciation of currencies in Russia and
External specialist and legal counsel is regularly
demand for raw materials, power and agricultu-
in 2009 by using variable employee capacities
Ukraine stem from liabilities denominated in
sought to reduce the risks that could arise from
ral products, but also for the significant markets
(flexitime accounts and similar), terminating
US dollars due to Caterpillar for the purchase of
fiscal, competition, patent, antitrust and envi-
in the transportation sector (shipping, locomoti-
temporary employment and ceasing to out-
construction machines and spare parts valued
ronmental rulings and laws. This is especially
ves) and power generation.
source service processes. Following a period
in local currency at the exchange rate on the
true of acquisitions projects.
of rapid growth in 2007 and 2008, the reducti-
procurement date. The balance sheet considers
on of capacity in eastern Europe will be based
exchange rate losses recognized and not yet
While limited risks are borne by the Company,
organizations in most countries, the leading
on careful review using qualitative selection
recognized in the 2008 financial statements,
insurance policies are taken out to secure
position earned in recent years in virtually all
criteria.
including the exchange rate losses until
against the financial consequences of large
model classes of the local construction machi-
The closely-knit network of sales and service
February 2009. In some cases, the sale of these
liability risks and high damages; the cover is
nery markets, motivated and loyal managers
No specific risks relating to key employees
items has a compensatory effect in 2009. In
checked regularly. Special attention is paid to
and employees as well as a sound financial
have been identified, thanks in part to the
future, the risk for these countries and the cus-
claims management and preventative measu-
base allow us to continue successfully using
improvement on the employment market due
tomer’s country will be limited to the immedia-
res. The concept of hedging risks has been key
the opportunities in future. Many of these fac-
to the economic situation even in those Euro-
te date of sale thanks to a machines logistics
for the German trading companies for many
tors played a role in the A+ rating awarded for
pean countries which had previously enjoyed a
center at Zeppelin International AG in Switzer-
years and the appropriateness was confirmed
the fourth time in a row by Creditreform Rating
boom period.
land.
by public tender in 2008. In addition to local
AG in 2008.
2008 ZEPPELIN ANNUAL REPORT
61
Group Management Report
The strong market position achieved by
there any discernable risks for the foreseeable
High risks are also attached to the develop-
fall as low as 7.0% below the prior-year level,
Zeppelin with products made by prominent
future.
ment of the emerging economies in 2009. On
mainly due to the fact that the German econo-
the one hand, falling demand from the USA
my is export-oriented and will sorely miss the
and Europe will put a damper on export trade.
impetus of export trade. Private consumption is
On the other, the capital necessary for further
likely to increase thanks to collectively bargai-
manufacturers is secured by a comprehensive
aftersales service for products sold which, as
past experience has shown, often forms the
6. FORECAST
growth will be less freely available on account
ned agreements which will bring about a
share in times of economic downturn. The sale
In light of the expected decline of the global
of increased caution on the part of investors
modest increase in disposable income, though
of spare parts and customer service is a stabili-
financial and economic crisis, we expect econo-
and a general rising fear of recession; this will
the stabilizing effect of the labor market will
zing factor for employment, revenue and cash
mic growth to be subdued for the foreseeable
have a knock-on effect on investing activities.
cease to apply in the course of 2009 as unem-
flows, even if sales of machines and engines
future. Many forecasts for 2009 now predict a
Positive developments in China (2009 fore-
ployment levels rise. The cycle of capital expen-
develop negatively.
drop in global trade of around 9.0% and in
cast: + 5.5%), Brazil (2009 forecast: + 1.8%)
diture in Germany already collapsed at the start
basis for expanding a company’s own market
global GDP of between 0.5% and 2.5%. The
and India (2009 forecast: + 5.1%) could have a
of 2009 and a drop of over 10% is forecast for
The financial strength and financing power of
major industrialized nations are expected to see
stabilizing influence on the global economy,
the year as a whole. This fall will further burden
the Zeppelin Group enables it to win projects
a fall in GDP of between 2.0% and 3.1%. The
however.
the overall economic development of 2009 over
and business and make use of targeted oppor-
negative effects are expected to last until the
tunities to acquire interesting companies to
fourth quarter of the year, though a slight impro-
The global economic crisis will also cast its
enhance and expand its range, especially in
vement might be seen at the end of 2009 or
shadow over economic development in the
The global construction industry is expected to
times of economic difficulty.
start of 2010. Individual economies will struggle
euro zone in 2009. The economy is expected to
generate growth in revenue of 2% in real terms
to achieve sustained recovery. It should be
develop negatively, with GDP shrinking by
in 2009. The heterogeneous development of
noted here that important macroeconomic fac-
3.5% to well below the prior-year level. The res-
the German construction industry in 2008 looks
tors such as exchange rates, commodity prices,
cue packages introduced in individual econo-
set to continue. While public investment in con-
C. Overall assessment of the risk situation
share prices and other asset prices have been
mies as well as the fall in commodity prices and
struction will expand further (+ 6.9%) mainly as
Risk management as a management tool and
characterized by unusually high volatility and, at
interest rates towards the end of 2008 will in all
a result of the German government’s economic
recognizing and influencing individual risks as
times, erratic development. The interplay and
probability be insufficient to revive the very
stimulus packages, investment in residential
well as using opportunities are of great signifi-
overlap of significant macroeconomic disturban-
weak economy and poor investment demand in
and commercial construction is likely to shrink
cance within the Company. Over the years, risk
ce lend a high degree of uncertainty to fore-
the euro zone. It is also unlikely that private con-
once again, falling by 1.6% and 5.6% respecti-
management has been continuously improved,
casts for 2009.
sumption will develop positively, meaning that
vely. An overall drop of 1.7% compared to 2008
adjusted to meet growing demands and expan-
62
several quarters.
there will be no domestic impetus to compen-
is therefore forecast. Following negative deve-
ded to include new areas such as compliance
In the USA, the development of the financial
sate for the plummeting export trade that is
lopment already in 2008 of the German con-
organization. This is verified by the appraisal
and sub-prime crisis will impact heavily on the
expected.
struction machines market, a collapse of around
carried out Creditreform Rating AG, who awar-
further development of the general economy.
ded us a positive rating for risk management
There will be no stabilizing effect from private
The economies of central and eastern Europe
in 2008. The Group internal audit department
households on account of the fact that they are
will see a noticeable slow-down in economic
and Group controlling monitor risk reporting on
already highly indebted. At the same time, the
activity over the coming year (2009 forecast: -
Estimates for the construction industry of cen-
an ongoing basis. The risk management system
US economy will be burdened further by the
0.8%). Weaker international demand, especially
tral and eastern Europe assume a fall of around
is also reviewed and assessed annually by the
global downturn in export demand. Based on
from the western EU countries, coupled with
7.9% in the rate of growth. Accordingly,
Company’s auditors for compliance and effi-
these factors, the GDP in the USA is set to
less favorable lending conditions will put a
demand for construction machines will also
ciency.
shrink by 2.1% in 2009. The Japanese economy
brake on the exports and investment of these
decline compared to 2008, not least on account
with its heavy dependence on export will suffer
countries.
of financing bottlenecks as well as falling
18% is expected once again for 2009, with unit
There were no risks which could jeopardize the
further blows in the first half of 2009, meaning
continuing existence of the Zeppelin Group or
that a further decrease in GDP of at least 4% is
Germany’s GDP will develop negatively in 2009
its subsidiaries in the reporting period, nor are
expected for the year as a whole.
according to most recent estimates and could
sales falling to 22,000.
demand from customers in the extraction industry, especially in eastern Europe.
2008 ZEPPELIN ANNUAL REPORT
63
Group Management Report
The engines markets relevant for Zeppelin will
2008 is now the base-case scenario. We consi-
The business activities of the Zeppelin Group
see a deterioration in sales in every segment in
der the primary factors in this development to
companies have already been affected in the
2009 with the exception of the gas engine
be the palpable decline in the German construc-
first two months of 2009 by the negative mar-
segment which is buoyed by the effects of the
tion machines market and corresponding fall in
ket and economic developments described
KWKG. Project business will also develop nega-
revenue of around EUR 100 million. The similar
above. The long winter coupled with prolonged
tively, with the exception of the OEM business.
level of decline in the volume of trade business
periods of rain have impacted on construction
Customers of industrial engines feel compelled
in eastern Europe as well as the more settled
activities and especially the rental business for
to develop prototype and pilot projects in
level of revenue in the Zeppelin Industry divisi-
construction
response to EU emissions standards which will
on, following record levels in 2007 and 2008,
neighboring countries. The drop in revenue
be tightened from 2011 onwards.
will put a damper on the Group’s performance
compared to the prior-year period stands at
figures.
25% with a corresponding negative effect on
The customer industries of Zeppelin’s Industry
machines
in
Germany
and
earnings. This development confirms the
division (global chemicals and plastics industry,
The headcount of the Zeppelin Group will there-
updated assumptions that business will deve-
tire industry) have been burdened by large-scale
fore fall to below 6,000 employees. Adjust-
lop negatively in 2009.
overcapacity since fall 2008 as a consequence
ments are planned for Russia and Ukraine
of the collapse in demand from the automotive,
in particular. Capital expenditures of around
construction and consumer goods industries.
EUR 100 million originally planned for fiscal
Zeppelin’s most important project for extraction
2009 (plus EUR 100 million (gross) in additions
equipment had a volume of less than EUR 200
to the rental fleet) will be quickly reviewed and
million as of year-end 2008 and has thus fallen
reduced in the light of this development.
Proposal for the appropriation of profit
The retained earnings of ZEPPELIN GmbH totaled
EUR 83,011,734.79. Of this, management pro-
below the average prior-year level. Zeppelin will
feel this in its lower production and revenue
At present, economists predict slight growth in
poses to distribute EUR 9,000,000.00 to share-
figures in 2009 and even more so in 2010 once
the global economy of 2.5% for 2010 (IMF),
holders, and carry forward EUR 74,011,734.79.
the order backlog – still good as of year-end
though estimates in recent weeks have been
2008 – has been cleared.
less positive. In the industrialized nations,
Friedrichshafen, April 3, 2009
growth in GDP is expected to reach just 0.8%
Management
There is currently some variation in financial
(USA: + 1.3%; the euro zone: + 0.1%;
experts’ opinions of how the exchange rates
Germany: 0.8%). The developing nations might
important for Zeppelin will develop. Forecasts
achieve growth of 5.1%. The most significant
Ernst Susanek
for the US dollar/euro exchange rate vary from
investment sectors for Zeppelin in Germany are
Alexander Bautzmann
1.37 to 1.07 as of year-end 2009, for example.
expected to remain at the level of 2009 which
Peter Gerstmann
As such, we cannot definitively estimate the
is already falling, at - 0.2% (capital expenditu-
Michael Heidemann
impact of exchange rate developments in 2009.
res) and - 0.5% (construction investments).
Jürgen-Philipp Knepper
Bank forecasts for eastern European currencies
The most recent prediction for the German con-
predict a trend towards stabilization following
struction machines market sees a drop of 10%.
renewed depreciation at the beginning of 2009.
Falling demand and reduced capacity utilization
in the chemicals industry means that the pro-
Current estimates of the economic develop-
ject and order volume for the Industry division is
ment of the Zeppelin Group assume a fall in
expected to develop negatively once again in
revenue to EUR 2.0 billion at best (2008:
2010. The Zeppelin Group companies do not
EUR 2.447 billion) with a return on sales before
therefore expect an overall improvement on the
taxes of between 2% and no more than 3%
revenue and earnings situation compared to the
(2008: 4%). Thus, the worst-case scenario for
budgeted figures for 2009.
2009 contained in the planning as of year-end
64
2008 ZEPPELIN ANNUAL REPORT
65
Group Financial Statement
66
2008 ZEPPELIN ANNUAL REPORT 67
Group Financial Statement
ZEPPELIN GMBH
CONSOLIDATED BALANCE SHEET AS OF 31 DECEMBER 2008
ASSETS
31.12.2007
EUR k
EUR k
EUR k
A. FIXED ASSETS
2. Goodwill
3. Payments on account
8.468
5.324
10.726
12.446
6.459
3.221
25.653
2. Plant and machinery
3. Other equipment, furniture and fixtures
4. Rental assets
5. Payments on account and assets under construction
146.388
139.055
5.934
5.956
30.976
26.409
149.943
129.889
7.248
5.939
340.489
2. Loans to affiliates
3. Investments in associates
11.437
13.693
229
229
39
39
8.094
5. Securities classified as fixed assets
2.331
2.346
6. Other loans
1.863
1.773
I. Subscribed capital
II. Capital reserves
1. Reserve for shares of a controlling company
2. Work in process
3. Finished goods and merchandise
2. Other revenue reserves
11.276
129.272
120.302
89.879
V. Minority interests
10.843
9.665
394.403
341.122
35.943
26.174
402.085
354.413
B. PROVISIONS
1. Provisions for pensions and similar obligations
2. Tax provisions
3. Other provisions
104.693
105.184
15.450
15.577
139.237
142.140
259.380
35.887
26.549
83.761
79.641
507.612
394.908
1. Liabilities to banks
310.550
155.786
46.461
65.986
292.801
203.223
4. Liabilities to affiliates
4.059
266
5. Liabilities to other investees
and investors
7.128
126
39.194
146.269
39.549
2. Payments received on account of orders
-66.947
3. Trade payables
598.550
473.700
II. Receivables and other assets
III. Cash on hand, bank balances, checks
C. PREPAID EXPENSES
68
275.581
273.901
4.238
4.140
4.354
2.558
39.119
30.383
323.292
310.982
24.044
32.992
945.886
817.674
7.186
4.877
1.355.157
1.176.964
262.901
C. LIABILITIES
38.874
4. Other assets
60.000
83.012
-67.584
3. Receivables from other investees and investors
60.000
IV. Retained earnings of the Group
5. Payments received on account of orders
2. Receivables from affiliates
50.000
140.548
4. Payments on account
1. Trade receivables
100.000
11.276
B. CURRENT ASSETS
I. Inventories
1. Raw materials, consumables and supplies
EUR k
307.248
20.044
4. Equity investments
EUR k
III. Revenue reserves
III. Financial assets
1. Shares in affiliates
EUR k
20.991
II. Property, plant and equipment
1. Land, land rights and buildings,
including buildings on third-party land
31.12.2007
A. EQUITY
I. Intangible assets
1. Industrial and similar rights and assets
and licenses in such rights and assets
EQUITY AND LIABILITIES
6. Other liabilities
thereof for taxes: EUR 16,353 k (prior year: EUR 19,413 k)
thereof for social security: EUR 1,589 (prior year: EUR 1,333 k)
D. DEFERRED INCOME
700.193
571.656
1.181
1.285
1.355.157
1.176.964
2008 ZEPPELIN ANNUAL REPORT
69
Group Financial Statement
ZEPPELIN GMBH
GROUP CASH FLOW STATEMENT
FOR FISCAL YEAR 2008
ZEPPELIN GMBH
CONSOLIDATED INCOME STATEMENT FOR FISCAL YEAR 2008
2008
2007
EUR k
EUR k
2.446.513
2.256.721
2. Increase in inventories of finished goods
and work in process
4.425
20.847
3. Own work capitalized
1.700
1.319
1. Sales
4. Other operating income
92.232
58.963
2.544.870
2.337.850
1.689.380
1.594.412
131.480
101.984
1.820.860
1.696.396
5. Cost of materials
a) Cost of raw materials, consumables and supplies and of purchased goods
b) Cost of purchased services
b) Social security, pension and benefit costs
c) Pension costs
7. Amortization of intangible fixed assets and depreciation of property,
plant and equipment
8. Other operating expenses
9. Income from equity investments
10. Income from other investments
and long-term loans
11. Other interests and similar income
219.170
50.506
46.038
4.468
458
- 1.228
1.686
Change in pension accruals
- 491
11.681
-12.172
Change in other long-term accruals
5.359
- 177
5.536
Unrealized exchange losses/profits
24.067
0
24.067
1.804
- 223
2.027
Gross cash flow
203.274
194.212
9.062
Income taxes
- 33.296
- 46.185
-12.889
Net cash flow
169.978
148.027
21.951
33
620
-143.116
- 153.946
-1.680
- 19.940
-12.392
- 6.687
89.924
105.501
102.747
73.575
Financial assets
Other non-cash changes
Increase in trade receivables
296.070
277.783
22.861
21.460
52
253
242
458
361
27.805
21.456
101.176
119.121
33.296
46.185
2.466
1.540
65.414
71.396
1.728
1.313
19. Group share in net income
63.686
70.083
20. Retained profits of the Group
33.379
14. Result from ordinary operations
Rental assets and rental assets classified as current assets
Increase in other liabilities
5.103
13. Interest and similar expenses
794
1.527
19.637
47
= Cash flow from operating activities
Investments in
Intangible assets
- 9.911
- 6.858
Property, plant and equipment without rental assets
- 38.335
- 45.042
Rental assets and rental assets classified as current assets
- 53.647
- 39.520
Financial assets
- 12.625
- 5.110
- 549
- 62
4.481
2.151
423
104
- 110.163
-94.337
- 6.500
- 4.000
Additions to the consolidated group
Revenues from disposals of
Intangible assets
Property, plant and equipment without rental assets
Financial assets
= Cash flow from investing activities
16. Other taxes
17. Net income of the group for the year
18. Net profit allocable to minority interests
21. Change in the consolidated revenue reserves
22. Retained earnings of the Group
70
0
Dividend payments to
shareholders of ZEPPELIN GmbH
15. Income taxes
-18.871
4.202
8.150
135.541
117.581
16.338
38.976
121.408
98.710
4.996
42.377
206.670
Variance
EUR k
17.865
Increase in other assets
283.671
2007
EUR k
Property, plant and equipment without rental assets
Increase in inventories without rental assets classified as current assets
245.543
7.731
12. Write-downs on financial assets
Write-downs/write-ups
Intangible assets
Loss on disposals of fixed assets
6. Personnel expenses
a) Wages and salaries
Earnings before incomes taxes
2008
EUR k
Minority interests
- 447
- 366
106.053
40.000
- 100.000
- 14.055
- 894
21.579
Change in cash and cash equivalents
- 8.310
817
46.161
Cash and cash equivalents at the beginning of the fiscal year
33.992
32.980
-14.053
- 26.365
Exchange rate related changes in cash and cash equivalents
- 638
- 805
83.012
89.879
Cash and cash equivalents at the end of the fiscal year
24.044
32.992
Borrowing of financial liabilities
Redemption of financial liabilities
= Cash flow from financing activities
2008 ZEPPELIN ANNUAL REPORT
71
Group Financial Statement
ZEPPELIN GMBH
STATEMENT OF CHANGES IN FIXED ASSETS OF THE GROUP FOR FISCAL YEAR 2008
Acquisition and
Production Cost
Net book value
Currency
differences
Changes in basis
of consolidation
Additions
1. Jan. 2008
EUR k
EUR k
EUR k
1. Industrial and similar rights and
assets and licenses in such rights and assets
16.724
-768
2. Goodwill
24.472
3.221
Accumulated
Write-ups depreciation
31. Dec. 2008
Reclassifications
Disposals
31. Dec. 2008
31.Dec. 2007
Annual
depreciation
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
447
5.516
114
84
21.949
0
13.481
8.468
5.324
2.228
-77
0
1.078
0
0
6
0
3.317
-85
0
25.473
0
14.747
10.726
12.446
2.768
6.459
0
0
6.459
3.221
0
44.417
-839
447
9.911
29
84
53.881
0
28.228
25.653
20.991
4.996
222.346
-736
0
11.494
5.239
12.955
225.388
0
79.000
146.388
139.055
6.562
31 Dec. 2008
I. Intangible assets
3. Payments on account
II. Property, plant and equipment
1. Land, land rights and buildings,
including buildings on third-party land
2. Plant and machinery
35.311
-616
47
2.032
37
2.004
34.807
0
28.873
5.934
5.956
1.465
3. Other equipment, furniture and fixtures
80.298
-2.963
42
17.276
213
5.424
89.442
0
58.466
30.976
26.409
9.838
193.415
-1.772
36
88.880
-189
61.910
218.460
0
68.517
149.943
129.889
30.988 1
5.939
-55
0
7.533
-5.329
840
7.248
0
0
7.248
5.939
0
537.309
-6.142
125
127.215
-29
83.133
575.345
0
234.856
340.489
307.248
48.853
581.726
-6.981
572
137.126
0
83.217
629.226
0
263.084
366.142
328.239
53.849
1. Shares in affiliates
14.054
0
0
131
0
2.291
11.894
0
457
11.437
13.693
457
2. Loans to affiliates
3.568
0
0
0
0
0
3.568
0
3.339
229
229
0
4. Rental assets
5. Payments on account and assets under construction
III. Financial assets
3. Investments in associates
39
0
0
0
0
0
39
0
0
39
39
0
4. Equity investments
8.094
-46
0
11.996
0
0
20.044
0
0
20.044
8.094
0
5. Securities classified as fixed assets
2.346
0
0
158
0
173
2.331
1
1
2.331
2.346
1
6. Other loans
2.992
0
0
340
0
250
3.082
0
1.219
1.863
1.773
0
31.093
-46
0
12.625
0
2.714
40.958
1
5.016
35.943
26.174
458
612.819
-7.027
572
149.751
0
85.931
670.184
1
268.100
402.085
354.413
54.307
1
72
netted in cost of materials
2008 ZEPPELIN ANNUAL REPORT
73
Group Financial Statement
ZEPPELIN GMBH
STATEMENT OF CHANGES IN GROUP EQUITY
Parent company
Subscribed
capital
1. January 2007
Capital
reserve
Earned
Group
equity
Minority interests
Accumulated other comprehensive income
Translation
reserve
Other
non-operating
transactions
Equity
Minority
interests
Accumulated other
comprehensive income
Group equity
Equity
Translation
Reserve
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
EUR k
50.000
60.000
148.025
2.592
6.001
266.618
5.957
1.036
6.993
273.611
- 62
- 4.000
- 223
- 366
1.352
- 366
1.352
- 4.366
1.129
5.939
262.395
6.943
1.036
7.979
270.374
70.083
-1.021
1.313
373
1.313
373
71.396
- 648
- 4.000
- 161
Dividend payments
Other changes
50.000
60.000
143.864
2.592
Net income of the Group for the year
Other comprehensive income
70.083
Total recognized income/loss for the Group
70.083
-1.021
0
69.062
1.313
373
1.686
70.748
-1.021
31. December 2007
50.000
60.000
213.947
1.571
5.939
331.457
8.256
1.409
9.665
341.122
1. January 2008
50.000
60.000
213.947
1.571
5.939
331.457
8.256
1.409
9.665
341.122
- 6.500
- 6.500
- 447
- 447
- 6.947
-50.000
0
Dividend payments
Capital contributions from
Company funds
50.000
Other changes
- 158
100.000
60.000
- 707
- 41
5.390
324.250
7.768
63.686
- 4.376
1.728
- 4.376
Total recognized income/loss for the Group
74
1.571
- 549
63.686
Net income/loss of the Group for the year
Other comprehensive income
31. December 2008
157.289
100.000
60.000
0
- 41
- 748
1.409
9.177
333.427
- 62
1.728
- 62
65.414
- 4.438
63.686
- 4.376
0
59.310
1.728
- 62
1.666
60.976
220.975
-2.805
5.390
383.560
9.496
1.347
10.843
394.403
2008 ZEPPELIN ANNUAL REPORT
75
Group Financial Statement
ZEPPELIN GMBH
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS FOR
FISCAL YEAR 2008
of receivables and liabilities disclosed in the
Buildings are depreciated using the straight-line
which are stated at their present value. Specific
annual financial statements of a foreign subsi-
method or based on the depreciation rates per-
bad debt allowances provide for recognizable
diary. This burdened earnings by EUR 11.0 mil-
mitted by tax provisions.
risks. The general credit risk is provided for by
lion.
different general bad debt allowances for notes
Moveable assets are generally depreciated on a
receivable and trade receivables.
systematic basis using the straight-line method
I. GENERAL INFORMATION
II. ACCOUNTING AND VALUATION METHODS
The consolidated financial statements of
over their useful lives or using the highest tax-
Provisions for pensions in Germany are deter-
allowed
declining-balance
mined on the basis of actuarial principles in
rates
and
the
ZEPPELIN GmbH, Friedrichshafen, for the fiscal
The financial statements of ZEPPELIN GmbH
method. Low-value assets with an individual
accordance with Sec. 6a EStG [“Einkommens-
year 2008 have been prepared in accordance
and of the other companies included in the
acquisition cost of between EUR 150.00 and
steuergesetz”: German Income Tax Act] using
with the provisions of HGB [“Handelsgesetz-
consolidated financial statements are generally
EUR 1,000.00 are capitalized and generally
an interest rate of 4.5% (prior year: 4.5%) and a
buch”: German Commercial Code]. To improve
prepared in accordance with uniform accoun-
depreciated over a useful life of five years.
pension increase rate of 1% (prior year: 1%).
the clarity of the consolidated financial state-
ting and valuation principles.
ments, the balance sheet was prepared using
The “2005 G mortality tables” by Prof. Dr. Klaus
Rental assets are depreciated using the
Heubeck were used. For foreign companies,
the long-form classification format pursuant to
The financial statements of a foreign company
straight-line method over the useful lives per-
the normal interest rate for the country concer-
Sec. 266 (2) and (3) HGB for the first time. Figu-
included using the equity method was not adju-
mitted under tax provisions. The total deprecia-
ned was used.
res in the consolidated financial statements are
sted in line with Group accounting and valuation
tion of EUR 31.0 million (prior year: EUR 26.8
stated in thousands of euros.
methods. The most current financial state-
million) is included under cost of materials.
ments, dating from no more than one year ago,
In order to improve the true and fair view of
are used as a basis.
earnings and assets, short-term receivables and
Provisions account for all identifiable risks and
contingent liabilities at the amount of expected
Shares in non-consolidated affiliates are recog-
utilization.
nized at the lower of cost or market on the
assets from current transactions due in less
Intangible assets and property, plant and equip-
balance sheet date, and one subsidiary is recog-
than one year (including trade receivables and
ment are capitalized at acquisition or production
nized using the equity method.
payables) were translated into local currency
cost in line with tax provisions. Self-constructed
using the rate prevailing on the balance sheet
assets are stated at direct costs as well as
Loans are stated at their nominal amount or
date for the first time as of 31 December 2008.
directly allocable materials and production over-
their lower realizable value on the balance sheet
This method ensures that all exchange losses
heads.
date. Long-term investments are capitalized at
are appropriately recognized and takes into
Liabilities are recorded at the amount repayable.
the lower of acquisition cost or net realizable
account unrealized exchange gains. Unrealized
Acquisition or production cost is reduced by
exchange rate gains improved earnings by EUR
systematic amortization and depreciation.
3.8 million compared to the prior accounting
Impairments are recorded as required by speci-
Inventories are generally valued at the lower of
method.
al circumstances.
acquisition or production cost in line with tax
In accordance with the general valuation prin-
The customary useful life for intangible assets
sheet date. Adequate allowances provide for
ciples of Sec. 252 (1) No. 4 HGB in conjunction
is generally between three and eight years.
inventory valuation risks from slow-moving and
with Sec. 253 (3) HGB, foreseeable risks and
Amortization of the goodwill resulting from
obsolete goods.
losses from the development of the exchange
first-time consolidation is recorded on a
rate in the period from 1 January to 27 February
straight-line basis over a period of five or ten
Receivables and other assets are stated at their
2009 were taken into account in the valuation
years.
nominal value, except for notes receivable,
value on the balance sheet date.
provisions or net realizable value on the balance
76
2008 ZEPPELIN ANNUAL REPORT
77
Group Financial Statement
III. BASIS OF CONSOLIDATION
Apart from ZEPPELIN GmbH, the consolidated
and 21 (prior year: 18) foreign companies. The
group comprises seven (prior year: eight) German
following companies are included:
COMPANIES INCLUDED APART FROM THE PARENT COMPANY
Name and location of the company
Share in
capital %
1)
Companies included apart from the parent company
The German consolidated company Zeppelin
lidated financial statements for the first time as
Materials Handling GmbH, Friedrichshafen,
of 1 July 2008. The Company provides fork-lift
which is allocated to the Industry division, was
drivers for various special projects. The services
deconsolidated. The company was merged
are billed exclusively to Zeppelin Polska Sp. z o.o.,
Zeppelin Baumaschinen GmbH, Garching bei München
100
into Zeppelin Silos & Systems GmbH, Fried-
Warsaw, Poland. The net loss for 2008 came to
MVS Zeppelin GmbH & Co.KG, Garching bei München
100
richshafen.
EUR 28 k. No revenue has yet been generated.
MVS Zeppelin Verwaltungs GmbH, Garching bei München
100
Zeppelin Power Systems GmbH & Co. KG, Hamburg
100
The international consolidated group was enlar-
Zeppelin Systems Limited, Nottingham, UK,
Zeppelin Power Systems Verwaltungs GmbH, Hamburg
100
ged to include the following companies:
was founded in 2007 and included in the conso-
MaK Deutschland Verwaltungs-GmbH, Hamburg
100
Phoenix-Zeppelin Ukraine Ltd., Kiev, Ukraine
lidated financial statements for the first time as
Zeppelin Österreich GmbH, Fischamend, Austria
100
and Zeppelin Logistics Sp. z o.o., Warsaw,
of 1 January 2008. The purpose of the compa-
MVS Zeppelin Österreich GmbH, Fischamend, Austria
100
Poland of the Trade division, as well as Zeppelin
ny is the development and production of extrac-
Systems Limited, Nottingham, UK, of the Indu-
tion equipment in the plastics production and
stry division.
processing industry as well as the related appa-
2)
Phoenix-Zeppelin, spol. s r.o., Modletice, Czech Republic
85
Phoenix Zeppelin, spol. s r.o., Banska Bystrica, Slovak Republic
85
3)
Zeppelin Polska Sp. z o.o., Warsaw, Poland
85
3)
Zeppelin Logistics Sp. z o.o., Warsaw, Poland
85
3)
Phoenix-Zeppelin Ukraine Ltd., Kiev, Ukraine
85
3)
Zeppelin International AG, Zug, Switzerland
100
Zeppelin Russland OOO, Moscow, Russia
100
4)
Zeppelin Belarus OOO, Minsk, Belarus
100
5)
Zeppelin Ukraine TOW, Kiev, Ukraine
100
4)
Zeppelin Turkmenistan JV, Ashgabat, Turkmenistan
100
5)
Zeppelin Armenien LLC, Yerewan, Armenia
100
5)
Zeppelin Silos & Systems GmbH, Friedrichshafen
100
Zeppelin Belgium N.V., Genk, Belgium
100
6)
Zeppelin Plast Tech S.r.l., Milan, Italy
90
6)
Zeppelin Systems Limited, Nottingham, UK
100
6)
Zeppelin Systems USA Inc., Houston/Texas, USA
100
6)
JMB Zeppelin Equipamentos Industriais Ltda., São Paulo, Brazil
100
6)
Zeppelin Solid Technology (Beijing) Co. Ltd., Beijing, China
100
6)
Zeppelin Technology Far East Pte. Ltd., Singapore
100
6)
Zeppelin Plastech Asia Pte. Ltd., Singapore
100
7)
ratus for storage and transport of all kinds of
The changes in the consolidated group did not
bulk goods. Its revenue amounted to EUR 8.9
have any material effects.
million, with a net loss for 2007 of EUR 69 k.
Phoenix-Zeppelin Ukraine Ltd., Kiev, Ukraine,
Four German companies (prior year: one) and
was founded in 2006 and included in the conso-
four (prior year: six) foreign companies with a
lidated financial statements for the first time as
small volume of business activity were not
of 1 January 2008. The company specializes in
included in the consolidated financial state-
the sale of fork-lift trucks and spare parts and
ments in accordance with Sec. 296 (2) HGB.
provides services for the market for these pro-
Overall, they are immaterial as regards the
ducts in Ukraine. Its revenue amounted to EUR
requirement to present a true and fair view of
1.7 million, with a net loss for 2008 of EUR 208 k.
the net assets, financial position and results of
operations of the Group. An overview of the
Zeppelin Logistics Sp. z o.o., Warsaw, Poland,
disclosures required pursuant to Sec. 313 (2)
was founded in 2008 and included in the conso-
No. 4 HGB is presented below.
1) Direct and indirect.
2) Shares are held by Zeppelin Österreich GmbH, Fischamend, Austria.
3) Shares are held by Phoenix-Zeppelin spol. s r.o., Modletice, Czech Republic.
4) Shares are held by Zeppelin International AG, Zug, Switzerland.
5) Shares are held by Zeppelin International AG, Zug, Switzerland und Zeppelin Russland OOO, Moscow, Russia.
6) Shares are held by Zeppelin Silos & Systems GmbH, Friedrichshafen.
7) Shares are held by Zeppelin Technology Far East Pte. Ltd., Singapore.
78
2008 ZEPPELIN ANNUAL REPORT
79
Group Financial Statement
COMPANIES NOT INCLUDED IN THE CONSOLIDATED GROUP
Name and location of the company
Share in
capital % 1)
Equity
EUR k
A (partial) debt difference of EUR 3,014 k arose
statements. The book value method pursuant
in the course of the acquisition as of 1 December
to Sec. 312 (1) No. 1 HGB is applied as at the
2007 of remaining shares in a foreign company.
date of first-time consolidation. The value was
This (partial) debt difference is subject to schedu-
not rolled forward in the fiscal year since the
-1
led amortization over a period of five years star-
book value approximates the pro rata equity of
-222
ting from 1 December 2007. The subsequent
the associate.
Net income/loss
EUR k
Companies not included in the consolidated
group pursuant to Sec. 296 HGB
AT Baumaschinentechnik Beteiligungs GmbH, Munich
100
2)
Rentas GmbH Werkzeugvermietung und Service, Essen
100
3)
24
-171
Zeppelin SkySails Sales & Service GmbH & Co. KG, Hamburg
67 4) 5)
purchase price payment of EUR 1,078 k made in
Zeppelin SkySails Sales & Service Verwaltungs GmbH, Hamburg
67
2008 led to a further debit difference which was
Intercompany receivables and liabilities were
Zeppelin-Körös-Spedit Kft., Budapest, Hungary
50 6)
24
amortized over the residual useful life of goodwill
eliminated in the course of consolidation of
starting from 1 December 2008.
intercompany balances. Differences were
4) 5)
109
Zeppelin Central Asia Machinery LLC., Tashkent, Uzbekistan
100
7)
31
-1
DIMA service for plant engineering s r.o., Bratislava, Slovak Republic
100 8)
50
117
Zeppelin Silo ve Sistemleri Imalat Sanayi Ticaret Anonim Sirketi,
Istanbul, Turkey
recognized directly in the income statement.
The first-time consolidation of two foreign com-
90 8) 5)
panies in 2008 as well as the consolidation of
Income and expenses between consolidated
further shares in a foreign subsidiary resulted in
companies were offset against each other.
a total debit difference of EUR 549 k. They
Other equity investments
CZ LOKO a. s., Ceská Trebová, Czech Republic
49
Zeppelin Gulf Co. Ltd., Al Jubail, Saudi Arabia
49 8) 5)
6)
16.538
1.898
were offset against the Group's revenue reser-
Intercompany profits from property, plant and
ves. They were consolidated for the first time
equipment and inventories were eliminated.
on 1 January 2008. No difference resulted from
1)
2)
3)
4)
5)
6)
7)
8)
Direct and indirect.
Shares are held by Zeppelin Baumaschinen GmbH, Garching near Munich.
Shares are held by MVS Zeppelin GmbH & Co. KG, Garching near Munich.
Shares are held by Zeppelin Power Systems GmbH & Co. KG, Hamburg.
Financial statements were not completed on the date that the list of shareholdings was prepared.
Shares are held by Phoenix-Zeppelin spol. s r.o., Modletice near Prague, Czech Republic.
Shares are held by Zeppelin International AG, Zug, Switzerland and Zeppelin Russland OOO, Moscow, Russia.
Shares are held by Zeppelin Silos & Systems GmbH, Friedrichshafen.
the first-time consolidation of one other foreign
Deferred tax assets were recorded on prepaid
company as of the date of foundation.
expenses due to consolidation entries with
effect on income. The option of recognizing
Minority interests in equity and net income are
deferred tax assets pursuant to Sec. 274 (2)
accounted for in the balance sheet under “mino-
HGB was not exercised.
rity interests” and in the income statement
under “net income for the year attributable to
minority interests”. The amount disclosed in
the income statement under “net income for
the year attributable to minority interests”
results from offsetting income (EUR 1,783 k;
IV. CONSOLIDATION PRINCIPLES
prior year: EUR 1,869 k) against losses (EUR 55
80
Until 31 December 2000, business combinati-
For business combinations since 1 January
ons were consolidated using the book value
2001, capital is generally consolidated using the
method (Sec. 301 (1) Sentence 2 No. 1 HGB) as
revaluation method as at the date of acquisition.
The retained earnings of ZEPPELIN GmbH,
at the date of acquisition or the date of first-
If a debit difference arises in the course of the
Friedrichshafen, are disclosed at the same
time consolidation of the subsidiary. A Brazilian
initial consolidation, this is allocated to the indi-
amount both in the separate financial state-
subsidiary that was included in the consolidated
vidual assets of the subsidiaries to the extent
ments and the consolidated financial state-
financial statements for the first time in fiscal
that their value is higher than the book value in
ments. Consolidation entries which have an
1998 was consolidated using the revaluation
the separate financial statements. Any remai-
effect on income are offset against the net inco-
method (Sec. 301 (1) Sentence 2 No. 2 HGB) in
ning difference or any debit difference arising
me of the consolidated subsidiaries in other
order to use the revaluation of fixed assets per-
from the application of the revaluation method
revenue reserves.
formed in preparing the financial statements
was treated as goodwill and amortized pursuant
pursuant to local GAAP for consolidation purpo-
to Sec. 309 (1) Sentence 1 HGB or netted
Shares in one company are valued using the
ses as well.
against the revenue reserves of the Group.
equity method in the consolidated financial
k; prior year: EUR 556 k).
2008 ZEPPELIN ANNUAL REPORT
81
Group Financial Statement
V. CURRENCY TRANSLATION
VI. NOTES TO THE CONSOLIDATED
BALANCE SHEET
The financial statements of foreign companies
of the Group are translated to euro (reporting
The development of the individual fixed asset
Shares in affiliates include in particular shares in
currency of the consolidated financial state-
items is presented separately in the “State-
a controlling company of Luftschiffbau Zeppelin
ments) based on the functional currency con-
ment of changes in fixed assets of the Group”.
GmbH, Friedrichshafen (EUR 11,276 k). The
cept. The functional currency of the companies
shares correspond to 10% of subscribed
included in the consolidated financial state-
Intangible assets mainly comprise software,
capital, which amounts to EUR 35.0 million. In
ments is generally the respective local currency
licenses and similar rights as well as goodwill
addition to a capital increase, additions include
as the foreign companies carry out their busi-
and similar assets.
three newly founded companies in Germany
ness activities independently from a financial,
and one in Turkey. Write-downs of a German
economic and organizational perspective. Two
Impairment losses (EUR 0.1 million) were
affiliate amounted to EUR 0.5 million in the fis-
of the companies have the US dollar as their
recognized inventories of rental assets to
cal year.
functional currency. Assets and liabilities are
account for reduced usability or salability.
translated at the mean rate of exchange prevai-
Equity investments include shares in two Ger-
ling on the balance sheet date; while equity
The reversal – due to Sec. 308 (3) HGB old ver-
(subscribed capital, reserves and profit carry-
sion being repealed – of the transfers of special
forward) is translated at historical rates. Any
items with an equity portion carried out in prior
translation difference resulting from changes in
years and special tax-allowed depreciation recor-
exchange rates is accounted for in the revenue
ded in prior years led to additional depreciation
reserves until the subsidiary concerned is
of EUR 407 k in 2008. The aforementioned
deconsolidated. Income and expenses are
adjustments to the book value of property, plant
translated at the average annual rate. The net
and equipment result in an additional write-
result in the consolidated income statement is
down of EUR 4,999 k in subsequent years.
man companies and two foreign companies.
carried over to the balance sheet and the difference posted to the translation reserve directly
under equity.
MATURITY OF RECEIVABLES AND OTHER ASSETS
Transactions in foreign currency reported in the
Due in more
than one year
EUR k
EUR k
1. Trade receivables
(prior year)
2.816
(2.647)
275.581
(273.901)
2. Receivables from affiliates
(prior year)
3.500
(3.000)
4.238
(4.140)
0
(0)
4.354
(2.558)
3.920
(3.549)
39.119
(30.383)
separate financial statements of the companies
are valued at historical rates. Exchange rate
gains or losses occurring until the balance sheet
date from the valuation of monetary items as
well as short-term receivables and liabilities
denominated in foreign currency are accounted
for with effect on income or loss. The imparity
principle is observed for long-term receivables
and liabilities.
3. Receivables from other investees and investors
(prior year)
4. Other assets
(prior year)
82
Total
2008 ZEPPELIN ANNUAL REPORT
83
Group Financial Statement
Receivables from affiliates include receivables
Liabilities are broken down in the following
Liabilities to affiliates include liabilities to the
due from shareholders totaling EUR 3,500 k
schedule of liabilities:
shareholder of EUR 4,013 k (prior year: EUR 1 k).
(prior year: EUR 3,013 k).
Deferred income mainly concerns the rental
Cash and cash equivalents comprise cash on
business.
hand, bank balances and checks.
Prepaid expenses include deferred tax assets
of EUR 1.3 million (prior year: EUR 0.8 million)
from consolidation procedures as well as a debt
discount of EUR 0.2 million (prior year: EUR 0.2
million).
The reserve for shares of a controlling company
concerns the equity investment in Luftschiffbau
SCHEDULE OF LIABILITIES
Zeppelin GmbH, Friedrichshafen held by
ZEPPELIN GmbH.
Due in
The development of the individual group equity
one to
five years
EUR k
more than
five years
EUR k
EUR k
1. Liabilities to banks
(prior year)
126.441
(77.730)
153.180
(77.979)
30.929
(77)
310.550
(155.786)
2. Payments received on account of orders
(prior year)
46.461
(65.986)
0
(0)
0
(0)
46.461
(65.986)
288.245
(202.109)
4.556
(1.114)
0
(0)
292.801
(203.223)
items is presented separately in the “Statement of changes in group equity” (exhibit 4).
Other provisions mainly concern personnel,
warranty obligations, outstanding invoices,
obligations from full-service agreements, a bill
of exchange and potential losses from pending
transactions.
3. Trade payables
(prior year)
Of the tax provisions, EUR 4,708 k relates to
4. Liabilities to affiliates
(prior year)
4.059
(266)
0
(0)
0
(0)
4.059
(266)
5. Liabilities to other investees
and investors
(prior year)
7.128
(126)
0
(0)
0
(0)
7.128
(126)
34.585
(142.336)
4.415
(3.666)
194
(267)
39.194
(146.269)
506.919
162.151
31.123
700.193
deferred tax liabilities (prior year: EUR 3,966 k).
Of this, an amount of EUR 3,078 k (prior year:
EUR 1,484 k) relates to deferred taxes pursuant
to Sec. 274 (1) HGB (deferred tax liabilities from
separate financial statements).
84
Total
less than
one year
EUR k
6. Other liabilities
(prior year)
2008 ZEPPELIN ANNUAL REPORT
85
Group Financial Statement
Notes to the income statement
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are used to
Financial instruments are recognized and valued
Revenue breaks down into the following activi-
50.4% relates to German revenue and 49.6%
hedge interest rate and currency risks relating to
based on the imparity principle. The market value
ties:
to international revenue.
operating activities or to reduce the financing
of financial instruments is determined using
requirements resulting from operating activities.
generally accepted methods based on the market data available as of the balance sheet date. If
REVENUE
Mostly forward exchange contracts are entered
the criteria for the creation of valuation units are
into to hedge against the risks resulting from
not satisfied, negative market values are recogni-
the fluctuation of receivables, liabilities and anti-
zed under other provisions. A provision for poten-
cipated transactions denominated in foreign
tial losses of EUR 1.4 million was recognized for
currency.
interest rate swaps.
Trade division
With a view to balancing the interest risk, any
The nominal volumes and fair values (mark to
Earth movers (new)
880.736
future interest and currency risks arising in the
market) as of the balance sheet date were as
Earth movers (used)
250.505
course of financing the Company are hedged by
follows:
Rental business
113.386
EUR k
entering into appropriate interest rate swaps.
Fork-lift truck including rental
Interest derivatives effectively convert liabilities
Power systems incl. rental
subject to variable interest into fixed-interest
Agricultural machinery including rental
liabilities and can thus reduce the agreed interest
Components
78.213
obligation tied to the hedged item.
Spare parts
321.113
After-sales service
141.159
Other
82.052
218.299
99.652
22.767
2.207.882
NOMINAL VOLUMES AND FAIR VALUES
Industry division
Nominal volume
EUR million
Interest rate swaps
Positive fair values
Negative fair values
Forward exchange contracts
Forward exchange options
86
Fair value
EUR million
Silos
38.105
Plant construction companies
93.078
Plant construction processors
45.626
Plant construction minerals
6.635
105,0
195,5
2,9
- 7,0
12,9
0,4
0,8
0,1
238.631
314,2
- 3,6
2.446.513
Equipment engineering
22.258
Components
13.517
Services, other
19.412
2008 ZEPPELIN ANNUAL REPORT
87
Group Financial Statement
Disclosures and other notes
Other operating income includes the following
Zeppelin Group over the course of the fiscal
significant items:
year. In accordance with GAS 2, cash flows are
CONTINGENT LIABILITIES AND OTHER
FINANCIAL OBLIGATIONS
classified into cash from operating activities,
Income from the reversal of provisions, income
from investing activities and from financing acti-
from return deliveries, book gains from the
vities.
EUR million
1. Contingent liabilities
disposal of fixed assets, gains from sale and
cash flow statement comprise all of the liquid
Obligations in respect
of bills of exchange
15,9
assets disclosed in the balance sheet, i.e., cash
Guarantees
16,8
on hand, checks and bank balances.
Guarantee contract
3,0
Warranties
0,2
leaseback transactions, reversal of valuation
The cash and cash equivalents disclosed in the
allowances, cost refunds, exchange rate gains,
rent and other services.
Other operating income includes income
relating to other periods of EUR 16.5 million,
Cash flow from investing and financing activi-
mainly from the reversal of provisions.
ties are recorded on a payment basis; investments in rental assets are disclosed net of
Other operating expenses primarily contains
payments received for disposals. By contrast,
35,9
PERSONNEL
2. Financial obligations
The average number of employees
for the year was:
Rent and lease obligations
significant administration expenses, operating
cash flow from operating activities is derived
and selling costs, maintenance expenses,
indirectly from the net income of the group for
due 2009
61,1
additions to bad debt allowances, bad debts,
the year. In the course of the indirect calculati-
due 2010 through 2013
76,0
exchange rate losses and additions to provisi-
on, changes in balance sheet items relating to
due after 2013
ons.
operating activities are adjusted for currency
Repurchase agreements
translation effects and effects of first-time
EUR 309 k (prior year: EUR 275 k) of interest
Personnel
0,9
Wage earners
2.322
Salaried employees
3.340
Trainees
149,3
311
5.973
287,3
consolidation or deconsolidation.
income is attributable to affiliates. EUR 51 k
(prior year: EUR 0 k) of interest expenses con-
In fiscal 2008, interest received amounted to
cerns affiliates.
EUR 7,946 k and interest paid totaled EUR
The purchase commitment is at the customary
Garching near Munich – do not publish their
26,451 k.
level.
financial statements pursuant to Sec. 264 (3)
HGB and Sec. 264b HGB.
Income taxes include deferred taxes of EUR
1,399 k (prior year: EUR 1,316 k). The corporate
Current income taxes amount to EUR 35,555 k.
Other notes
Friedrichshafen, April 3, 2009
income tax rate of 15% applicable as of
1 January 2008 has been taken as a basis for
Disclosure of the remuneration of the company
the valuation of the deferred taxes attributable
boards was suppressed in accordance with
Management of
to the German companies. The average income
Sec. 286 (4) HGB.
ZEPPELIN GmbH
surcharge (5.5%) and trade tax (average multi-
Four companies – namely Zeppelin Baumaschi-
Ernst Susanek
plier 366.0%).
nen GmbH, Garching near Munich, Zeppelin
Alexander Bautzmann
tax rate comes to 29.0% including the solidarity
Silos & Systems GmbH, Friedrichshafen,
Peter Gerstmann
Notes to the consolidated cash flow statement
Zeppelin Power Systems GmbH & Co. KG,
Michael Heidemann
The consolidated cash flow statement presents
Hamburg, and MVS Zeppelin GmbH & Co. KG,
Jürgen-Philipp Knepper
changes in cash and cash equivalents of the
88
2008 ZEPPELIN ANNUAL REPORT
89
Audit opinon
90
We have audited the consolidated financial
mercial Code] and German generally accepted
group management report are examined prima-
position and results of operations of the Group
statements prepared by ZEPPELIN GmbH,
standards for the audit of financial statements
rily on a test basis within the framework of the
in accordance with [German] principles of proper
Friedrichshafen, comprising the balance sheet,
promulgated by the Institut der Wirtschaftsprü-
audit. The audit includes assessing the annual
accounting. The group management report is
the income statement, the cash flow state-
fer [Institute of Public Auditors in Germany]
financial statements of those entities included
consistent with the consolidated financial state-
ment, the statement of changes in equity and
(IDW). Those standards require that we plan
in consolidation, the determination of entities to
ments and as a whole provides a suitable view
the notes to the consolidated financial state-
and perform the audit such that misstatements
be included in consolidation, the accounting and
of the Group’s position and suitably presents
ments, together with the group management
materially affecting the presentation of the net
consolidation principles used and significant
the opportunities and risks relating to future
report for the fiscal year from 1 January 2008 to
assets, financial position and results of operati-
estimates made by management, as well as
development.
31 December 2008. The preparation of the con-
ons in the consolidated financial statements in
evaluating the overall presentation of the con-
solidated financial statements and the group
accordance with [German] principles of proper
solidated financial statements and the group
management report in accordance with German
accounting and in the group management
management report. We believe that our audit
commercial law is the responsibility of the
report are detected with reasonable assurance.
provides a reasonable basis for our opinion.
Company’s management. Our responsibility is
Knowledge of the business activities and the
to express an opinion on the consolidated finan-
economic and legal environment of the Group
cial statements and on the group management
and expectations as to possible misstatements
report based on our audit.
Stuttgart, April 3, 902009
Ernst & Young AG
Wirtschaftsprüfungsgesellschaft
Our audit has not led to any reservations.
Steuerberatungsgesellschaft
are taken into account in the determination of
In our opinion, based on the findings of our
Prof. Dr. Müller
Pentz
audit procedures. The effectiveness of the
audit, the consolidated financial statements
Wirtschaftsprüfer
Wirtschaftsprüfer
We conducted our audit of the consolidated
accounting-related internal control system and
comply with the legal requirements and give a
[German Public
[German Public
financial statements in accordance with Sec.
the evidence supporting the disclosures in the
true and fair view of the net assets, financial
iAuditor]
Auditor]
317 HGB [“Handelsgesetzbuch”: German Com-
consolidated financial statements and the
2008 ZEPPELIN ANNUAL REPORT
91
ZEPPELIN GROUP FACTSHEET (front cover)
190 LOCATIONS (front cover, double page)
92
ZEPPELIN GROUP CONTACTS (back cover)
STRUCTURE (back cover, double page)