As a Portfolio Manager, CHG-MERIDIAN facilitates sophisticated client projects on a
global basis and delivers genuine solutions. Large and medium-sized companies
and public sector entities have placed their trust in our outstanding portfolio
management expertise and in our ability to devise customized concepts
for capital spending on technology.
www.chg-meridian.com
CHG-MERIDIAN Annual Report 2011
Intelligent Portfolio Management
Annual Report 2011
CHG-MERIDIAN
Deutsche Computer Leasing AG
CHG-MERIDIAN devises customized
business concepts and manages
efficient investments in technology.
We support our customers in a professional, independent and uncomplicated way.
1
annual survey
table of contents
1
group management report17
1.1
Overview18
1.1.1
Highlights of 201118
1.1.2
Economic Environment19
1.1.3 Performance of the Leasing Sector
20
group figures
2007
2008
2009
2010
2011
Income from leasing/Commission income € 000‘s
740,647
745,230
751,178
726,801
761,067
Lease origination € 000‘s
655,669
651,574
601,844
660,970
858,057
Net income € 000‘s
13,014
22,587
23,408
38,092
36,779
Profit for the period attributable to the Group € 000‘s
25,481
29,157
23,252
37,896
36,520
1,227,648
1,245,195
1,209,978
1,245,188
1,499,133
55,355
67,514
80,711
88,743
111,946
499
519
591
590
637
Total assets € 000‘s
Stockholders‘ equity € 000‘s
Employees
1.2
Performance of the Group‘s Business
21
1.2.1
Lease Originations21
1.2.2
Funding22
1.2.3 Legal and Organizational Structure of the CHG-MERIDIAN Group
25
1.2.4
Technology and Service Center26
1.2.5 Human Resources and Employee Structures
26
1.3
Key Performance Figures29
1.3.1 Report on the Results of Operations
29
1.3.2 Report on the Net Assets and Financial Position
31
1.4
Opportunities and Risks Report32
1.4.1
Opportunities32
1.4.2
Risk Assessment35
1.4.3
Summary43
1.5
Report on Post-Balance Sheet Date Events
43
1.6
Outlook43
2
consolidated financial statements47
2.1
Consolidated Balance Sheet48
2.2
Consolidated Profit and Loss Statement
50
2.3
Consolidated Statement of Cash Flows
51
2.4
Consolidated Statement of Changes in Stockholders‘ Equity
52
3
4
notes to the consolidated financial statements
(incl. consolidated statement of changes in fixed assets 55
auditor‘s report77
5
single-entity financial statements
CHG-MERIDIAN Deutsche Computer Leasing AG
81
5.1
Business Performance82
5.2
Balance Sheet90
5.3
Profit and Loss Statement92
6
headquarters, subsidiaries and contact95
2
3
„The professional and efficient structuring,
management, and financing of high-value
technology and capital equipment will become
increasingly important.”
CHG-MERIDIAN devises customized business concepts and manages efficient investments
in technology. We support our customers in a professional, independent and uncomplicated way. By setting ourselves this challenge and making this promise to our clients, we
achieved an all-time record in 2011: The total value of leases originated rose by 30 percent
last year to € 858 million. By contrast, the German equipment leasing market grew by only
11.8 percent over the same period. In view of this encouraging trend we have set ourselves the target within the next two years of generating a lease origination volume in excess
of € 1 billion.
Solutions
As a portfolio manager that operates worldwide, we facilitate sophisticated client projects
and deliver genuine solutions. Large and medium-sized companies and public-sector
entities have placed their trust in our outstanding portfolio management expertise and
in our ability to devise customized leases for capital spending on technology.
Our work over the past 30-plus years has focused on the IT sector. We are engaged on a
much smaller scale in the fields of industrial capital equipment and healthcare technology. Intelligent structuring, efficient management, and customized leases are key to the
success of capital investment in all three of these technology segments.
Our offering includes advisory services, the management of procurement processes,
equipment rollouts, and customized support packages. We remain a reliable partner
at the end of the technology lifecycle, ensuring a smooth rollback process and carrying
out the successful remarketing or environmentally friendly disposal of used IT equipment,
high-value capital goods, and specialist healthcare technology. In addition,
our TESMA© Online asset management system helps to provide our customers
with an intelligent portfolio management capability.
Potential
The increasing interconnectedness of society will place ever-greater demands on the performance and, especially, the efficiency of IT technology. The number of terminal devices
worldwide will multiply dramatically: While they totaled roughly one billion in 2008,
this figure could well have doubled by 2014. The volume of data traffic will also explode
owing to the availability of cutting-edge cloud technology. To give just one example
of this trend: The revenue generated from the global server market alone totaled
US$ 52.27 billion in 2011.
We therefore believe that large and medium-sized companies and public-sector organizations offer huge potential. The professional and efficient structuring, management, and
financing of high-value technology and capital equipment will become increasingly important. These factors are key to the strength of growth and innovation and, consequently,
to the sustainability of the individual entity‘s business model or public-service remit. This
means that the impartial advice and financing that we offer, the supplementary services
rendered by external partners, and the professional support that we provide throughout
the entire technology lifecycle make an invaluable contribution to our comprehensive
portfolio management package.
4
5
Creativity
Growth
We thus regard demanding customer projects as both a challenge and a motivating force
that allow our portfolio managers to give full rein to their creative powers. In 2011 we assisted a highly diverse clientele with sophisticated projects at 35 locations in more than
19 countries worldwide. This involved devising customized solutions and implementing
them in a timely manner. A highly motivated and talented workforce is absolutely essential in this process. Our members of staff demonstrated true commitment, enthusiasm,
and passion in executing client projects last year – to the benefit of both their team
and our company. We were therefore especially delighted to win an award as a TOP JOB
employer, which we received for our team spirit, communication culture, and pleasant
working environment. We are looking to build on these values throughout our organization – whether at our headquarters in Weingarten, at our many international subsidiaries,
or at our Technology and Service Center in Gross-Gerau.
„The outstanding quality of our products and
services and the high levels of customer
satisfaction that we achieve are the key
factors that will enable us to generate strong,
sustainable growth now and in the future.”
In addition to our business in Germany, which is traditionally our strongest market, our
foreign subsidiaries – especially those in southern Europe and North America – generated significant growth in 2011, increasing their total contribution to the Company‘s
operating performance by almost 30 percent. Over the next two years we expect to see
further encouraging growth stimulus from abroad, especially from South America.
As far as the German market is concerned, no other company in this sector can match
CHG-MERIDIAN‘s financial performance. As a result, the Company‘s gross profit – the
present value of all leases originated and assets remarketed minus direct acquisition
and funding costs – rose by roughly 12 percent to € 118 million.
One of the ways in which we aim to achieve sustainable growth is by continuing to focus
on the refinement of our leasing packages, funding, and portfolio management for highvalue industrial capital equipment (such as production machinery and equipment).
We expect to originate leases totaling approximately € 40 million in this segment in
2012. As far as our funding is concerned, this means that we are looking to diversify
our risk even further. In the past we have therefore continually increased the number of
funding partners that we use. Syndicated loans in particular became increasingly important for us in 2011, providing a sound and low-risk form of long-term funding at a time
when financial markets remained volatile.
In terms of the advice, service, and expert support that we offer our customers throughout their technology lifecycle this means that we strive to deliver tailor-made solutions
and provide our clients with impartial, straightforward, and effective support.
The outstanding quality of our products and services and the high levels of customer
satisfaction that we achieve are the key factors that will enable us to generate strong,
sustainable growth now and in the future.
You will find further information on these and other topics in our latest annual report.
As an introduction, the following pages show you examples of client-related projects
in rapidly growing regions around the world. I hope you will find them inspiring.
Jürgen Mossakowski
Left to right:
Peter Horne
Chief Sales Officer (CSO)
Jürgen Mossakowski
Chief Executive Officer (CEO)
Joachim Schulz
Chief Financial Officer (CFO)
6
7
Potential. Advancing urbanization and the
corresponding spread of computer networks throughout
society will continue to drive the innovative potential of
rapidly growing regions.
Growth. The total value of leases originated in 2011 rose by
30 percent – an all-time record increase for the Company, which
has set itself the target within the next two years of generating
a lease origination volume in excess of € 1 billion.
Creativity. CHG-MERIDIAN regards demanding customer projects as
both a challenge and a motivating force that allow its portfolio managers
to give full rein to their creative powers.
Solutions. The Company assisted a highly diverse clientele with
sophisticated projects at 35 locations worldwide. Its employees
demonstrated true commitment, enthusiasm, and passion in delivering
tailor-made solutions for customers.
energy-efficient it portfolio management
Berlin,
Germany
8
optimal balance thanks
to sale and leaseback
Los Angeles, USA
cost-optimized
output-solutions
Paris, France
centralized crossborder-management
Dallas, USA
central asset management with tesma© online
Milan, Italy
Read more on page 10
Read more on page 12
Read more on page 14
Read more on page 16
Read more on page 46
permanent working
capability during
roll-out
Frankfurt, Germany
Read more on page 54
rollback and exchange
on one workday
Moscow, Russia
Read more on page 76
significant cost reduction through increased
transparency
St. Gallen, Switzerland
Read more on page 80
efficient workflows
through customerspecific e-procurement
Barcelona, Spain
Read more on page 94
>
please read
more on the 9
following pages
Berlin, Germany
Geographical coordinates: 52° 31' 7" north, 13° 24' 29" east
Area: 892 km2 Population: 3.5 million Population density: 3,924 inhabitants/km2
Gross domestic product (GDP): € 95 billion/$US 124 billion
Resident companies: Deutsche Bahn, Siemens, Vivantes, Charité, Daimler AG,
Berliner Verkehrsbetriebe, Deutsche Telekom AG, Deutsche Post DHL,
Landesbank Berlin Holding AG, Kaiser`s Tengelmann, Metro AG, Vattenfall Europe
Growth sectors: Creative and culture economy, tourism, biotechnology,
medical technology, pharmaceuticals industry, media, energy technology
information and communications technology, transport systems technology, optics,
Investments in R&D: € 3.3 billion/ $US 4.3 billion
Employed in R&D: 28,400
Energy-efficient it portfolio management
Branch
Healthcare
Employees Less than 15,000
Turnover € 1,2 billion/ $US 1,6 billion
IT portfolio 12,000 IT clients, 1,500 output clients
Conceptualization and consultation for IT portfolio management;
highest standards for energy efficiency in the computer center sector
Tasks (energy supply, climate control, emissions)
Setting up of a fully electronic asset workflow with TESMA© Online; certiSolutions fication model for reducing energy consumption in the computer center
Technology Lifecycle consultation, service management,
Services portfolio management, financing
Products used TESMA© Online
First certified, „energy-efficient computer center” in the healthcare
sector; auditing and consultation over a period of three years, which
Special features will secure the energy efficiency of the IT portfolio over the long term
10
11
Los Angeles, USA
Geographical coordinates: 34° 3' 8" north, 118° 14' 37" west
Area: 1,300 km2 Population: 3.8 million.
Population density: 2,925 inhabitants/km2
Gross domestic product (GDP): € 408 billion/$US 543 billion (L.A. County)
Resident companies: Fox Entertainment Group, Mercury Insurance Group, Northrop Grumman, Occidental
Petroleum, Capital Group, Health Net, AECOM, Tutor Perini, CBRE Group, j2 Global, The Walt Disney Company
Growth sectors: Biotechnology, medicine, clean technology, tourism, entertainment, education, finance, IT
Employees in high technology sectors: More than 150,000
Employed in R&D: More than 17,600
Optimal balance thanks to sale and leaseback
Branch
Entertainment
Employees Less than 1,000
Turnover € 54.3 billion/$US 72.2 billion
IT portfolio 1,500 digital projectors and Data Center Solutions
Consultation for and development of a financing solution for the
acquisition of highly modern, flexible IT technology for use in the
entertainment industry; a financing model that comprises all involved
Tasks stakeholders and does not have a negative effect on the customer balance
A sale and leaseback model in which CHG-MERIDIAN purchases the technology portfolio and leases it back to the customer for a usage license;
advantages for the customer are the optimizing of their own balance,
Solutions increased liquidity and permanently high-performance IT equipment
Services Consultation, financing
Products used Sale and leaseback leasing model
The new IT technology acquired with the sale and leaseback model results
in significant improvements in the area of environmental friendliness and
Special features greatly increased flexibility in programming and operation
12
13
Paris, France
Geographical coordinates: 48° 51' 24" north, 2° 21' 6" east
Area: 105 km2
Population: 2.2 million.
Population density: 20,980 inhabitants/km2
Gross domestic product (GDP): € 552 billion/$US 734 billion (metropolitan region)
Resident companies: BNP Paribas, Axa S.A., Crédit Agricole, Société Générale,
Peugeot, France Télécom, Sanofi-Aventis, Air France, Danone, Veolia Environnement,
Électricité de France, Vivendi, L’Oréal
Growth sectors: IT, services, biotechnology, nanotechnology, aviation, health,
telecommunications, finance, food, tourism
Investments in R&D: More than € 15 billion/more than $US 19 billion
Employed in R&D: More than 75,000
Cost-optimized output solutions
Branch
Public administration
Employees 180,000
IT portfolio
More than 45,000 IT and output clients
Conceptualization of a contemporary output solution with the objectives
of maximum cost optimization and comprehensive supervision for a
Tasks whole series of public institutions
Six individually adapted product packages, including accessories and
services, according to the motto „One need, one product, one invoice”.
Quick and transparent ordering processes by way of a self-established
Solutions online catalog
Services Consultation, financing
Products used TESMA© Online
Special features Already 5,000 exchanged output units within a period of only six months
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1group management report
Dallas, USA
Geographical coordinates: 32° 46' 59" north, 96° 48' 25" west
Area: 994 km2
Population: 1.2 million.
Population density: 1,207 inhabitants/km2
Gross domestic product (GDP): € 74 billion/$US 98 billion
Resident companies: Texas Instruments, AT&T, Southwest Airlines, Atmos Energy,
Dean Foods, Celanese, Energy Future Holdings, Tenet Healthcare, HollyFrontier Corporation,
Energy Transfer Equity, Exxon Mobil, RadioShack, American Airlines
Growth sectors: IT, telecommunications, media, construction, food, tools and machinery
Innovation potential: 4 large universities with approx. 26,000 students
Centralized cross-border management
Branch
IT services
Employees More than 74,000
Turnover More than € 12 billion/more than $US 16 billion
More than 100,000 technology assets
IT portfolio (data center, networks, traffic management technologies, cameras)
Coverage of an extremely large, nationally and internationally broadly distributed portfolio from the entire bandwidth of IT infrastructure and with more
Tasks than 100,000 technology assets
Flexible cross-border leasing model tailored to the international structure of
the customer and enabling transparent, comprehensive asset management
Solutions across all national boundaries
Products used TESMA© Online, flexible cross-border leasing model
Management of the internationally used IT portfolio from a single central
Special features location in the USA
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17
1 group management report > Overview
1 group management report > Overview
1.1 Overview
Lease
Originations
1.1.1 Highlights of 2011
The CHG-MERIDIAN Group is one of the world‘s leading non-captive providers of IT leasing
and services in the field of information and communications technologies. The Group‘s
business model is based on the delivery of customer-focused full-service leasing
packages that cover the planning, implementation and funding of complex IT projects.
A key element of this offering is web-based asset management, which facilitates the
administration of leased equipment.
The CHG-MERIDIAN Group continued to strengthen its leading market position in 2011.
Coupled with lease originations in excess of the previous year‘s volumes, its conservative
financing policy and its high-quality leasing portfolio with low residual values helped the
Company to improve its financial situation.
The innovative, customized IT solutions covering the entire IT lifecycle are becoming increasingly successful in international markets. This trend is set to continue.
Market position
The table below shows the key figures from the consolidated profit and loss statement
( in € 000‘s).
in TEUR
2011
2010
Change %
Net income from leasing1
143,943
147,061
-2.1
Internationalization
The CHG-MERIDIAN Group is now represented in 19 countries. A leasing company in Brazil
has provisionally been set up via the Mexican equity investment in preparation for the
launch of full operating activities.
The share capital of the rapidly growing US subsidiary was increased by € 30.7 million in
2011 in order to help the company achieve its strategic growth targets and potential.
As in 2010, the CHG-MERIDIAN Group again reported a large number of leases that were
restructured or whose terms were extended during the year under review. Despite strong
growth in the volume of leases originated, the Company stuck to its strategy of only providing
leases for customers of adequate credit quality that offered a balanced risk/reward profile.
In 2011, the CHG-MERIDIAN Group almost managed to replicate the record level of net
income that it had achieved in 2010. The primary contributing factor was the increase in
overall operating profit, which in turn was largely attributable to the gross margin from new
and extended leases. However, these factors only impact on the profit and loss statement
with a certain time lag.
Over the past few years, CHG-MERIDIAN has pursued a strategy of expansion and internationalization. In 2011, this strategy played an even greater role in the Group‘s performance.
Although the German parent company still makes the largest single contribution to the total volume of leases originated, the foreign subsidiaries are becoming an increasingly significant factor in the Group‘s long-term success. The performance of the US subsidiary,
which more than doubled its volume of lease originations, is particularly noteworthy in
this respect.
1.1.2 Economic Environment
Net income
After suffering its most severe crisis since World War Two, the global economy staged a modest recovery in 2011. Although the capital spending ratio across the European Union (EU
27) began to improve again gradually, it is still well below its pre-crisis levels. The Eurostat
table below shows the seasonally adjusted changes in this ratio, which is a key economic
indicator for the CHG-MERIDIAN Group.
Rate of investment in percent
Key figures from profit and loss statement
Net interest expense
-32,373
-34,741
6.8
Profit from ordinary activities
50,809
53,848
-5.6
Net income
36,779
38,092
-3.4
The parent company, CHG-MERIDIAN Deutsche Computer Leasing AG, Weingarten
(also referred to below as „CHG-MERIDIAN AG”), again made the largest contribution to the Group‘s profits.
However, the encouraging overall trend in recent quarters has varied significantly from
region to region and industry to industry.
1
18
Defined as the net total of income from leasing, expenses from leasing, and depreciation, amortization and
write-downs of leased assets
19
1 group management report > Overview
1 group management report > Performance of the Group‘s business
1.2 Performance of the Group‘s business
The EU Commission forecast in the autumn of 2011 that global gross domestic product (GDP)
would grow by 3.7 percent for the year as a whole. GDP growth in the European Union and
the United States – the key markets for the CHG-MERIDIAN Group – was more subdued in
some regions. Growth of 1.6 percent was forecast for both of these markets. Whereas the
German economy is expected to have achieved growth almost on a par with the global
economy in 2011 (2.9 percent), economic activity in other countries – notably the United
Kingdom – is predicted to have hardly picked up at all (0.7 percent). Although Mexican GDP
had contracted sharply by 6.4 percent in 2009, it subsequently recovered impressively, increasing by 5.3 percent in 2010 and by 4.0 percent in 2011.
1.2.1 Lease Originations
Leases originated
by the Group
The table below shows the breakdown of lease originations in the CHG-MERIDIAN Group
( in € 000‘s):
1.1.3 Performance of the Leasing Sector
Forrester forecast at the end of June 2011 that the information and communication technology (ICT) market in western and central Europe would grow by 3.8 percent in 2011 to an
aggregate volume of € 553 billion. In global terms this means that Europe would continue
to lag well behind the Americas (€ 738 billion) and the Asia-Pacific region (€ 675 billion).
IT market trends
Leaseurope, the European Federation of Leasing Company Associations, estimates that the
total volume of leases originated in Europe in 2011 grew by 10.1 percent compared with
2010. One exception to this trend was the Mediterranean countries, where the volume of
lease originations actually contracted.
In the United States, the Equipment Leasing and Finance Association (ELFA) calculated in
December 2011 that the value of financed equipment had risen by 25 percent compared
with 2010. However, many member companies have witnessed stiff price competition in
the sector.
Two main trends are driving growth in the leasing market. First, besides its purely financing
function, IT leasing is becoming a project business, in which leasing companies offer their
customers one-stop solutions as part of a full-service leasing approach.
As a result, the costs of an IT project are more predictable and transparent from the outset.
A further benefit for customers is that they have just one point of contact for both
financing and service.
Second, because of its „pay-as-you-earn” method of payment, leasing represents a highly
efficient form of financing that conserves liquidity compared with conventional hybrid forms
of equipment finance that combine equity and debt.
2
20
in TEUR
Dec. 31,
2011
Dec. 31,
2010
Change %
Lease origination
858,057
660,970
29.8
Germany
446,463
344,393
29.6
15,739
11,577
36.0
Austria
CIO reckons that the comparison with the United States reveals especially typical trends,
although 2011 constitutes an exception. Only in 2011 will western and central Europe have
grown more strongly than the United States. However, Forrester is predicting that the US
market will expand by 12.9 percent in 2012, which will further increase its lead over Europe.
The reason for this trend is that ICT capital investment in Europe remains consistently below
GDP growth while spending in the United States remains equally consistently above it.
Very little meaningful data is available on trends in the equipment leasing market, an area
that is particularly relevant to the CHG-MERIDIAN Group, because inadequate statistics
are recorded for the leasing markets outside Germany. This is especially true for countries
where lease financing is still underrepresented.
According to management figures reported, the total volume of leases originated by the
CHG-MERIDIAN Group, which is calculated on the basis of the invoices received for leased
equipment or equipment sold to funding institutions, amounted to € 858.1 million in 2011.
This equates to a year-on-year increase of € 197.1 million, or 29.8 percent.
Trends in the equipment
leasing market
Switzerland
9,269
8,512
8.9
UK, Ireland
43,324
54,982
-21.2
Netherlands
31,436
19,529
61.0
Belgium
52,079
48,499
7.4
France
40,471
20,557
96.9
Spain
26,491
20,894
26.8
Italy
29,281
15,786
85.5
Russia
3,022
5,846
-48.3
Poland
4,250
2,087
103.6
Czech Republic, Slovakia
4,127
3,665
12.6
1,460
184
693.5
Mexico (50% share)
Slovenia
56,773
59,791
-5.0
United States, Canada
93,872
44,668
110.2
There was a significant increase in lease originations in a number of the foreign subsidiaries
with the result that there was a steady increase in the importance of international business
in the CHG-MERIDIAN Group. The foreign subsidiaries now originate 48.0 percent (2010: 47.9
percent) of the Group‘s total leasing volume. The small percentage increase is attributable
to the fact that CHG-MERIDIAN AG raised its volume of lease originations by 29.6 percent.
This trend shows that the systematic expansion of the Group into profitable markets has
helped exploit significant sources of growth.
The CHG-MERIDIAN Group‘s growth in 2011 was particularly strong in the US, French,
Italian, and Dutch markets.
The largest growth in absolute terms outside Germany was achieved by the US subsidiary,
which drove up lease originations from € 44.7 million to € 93.5 million. This doubling of
its lease origination volumes was attributable to targeted investment in its sales department and spending on infrastructure. Because the US market continues to offer considerable potential, CHG-MERIDIAN AG decided to assist its further growth by increasing the US
subsidiary‘s share capital by $US 40 million (€ 30.7 million).
Source: EU Commission, EUROSTAT
21
1 group management report > Performance of the Group‘s business
1 group management report > Performance of the Group‘s business
Funding structure
The companies in France and Italy almost doubled their volumes of lease originations, with
France growing by € 19.9 million, or 96.9 percent, and Italy advancing by € 13.5 million, or
85.5 percent. The subsidiary in the Netherlands expanded its lease originations by € 11.9
million, or 61.0 percent, year-on-year.
The companies in Spain, Austria, Belgium, Poland and Slovenia achieved increases in the
single-digit euro millions.
The planned funding ratios were comfortably achieved in 2011. As intended, the
CHG-MERIDIAN Group reduced its proportion of non-recourse funding to 78.8 percent
(2010: 81.0 percent).
In contrast to the strong growth generated by the subsidiaries in Mexico (193 percent)
and Russia (625 percent) in 2010, these two companies reported modest decreases of
€ 3.0 million and € 2.8 million respectively in 2011 that were partly caused by currency
translation losses.
The volume of loans raised reached a record € 117.6 million in 2011 (2010: € 77.0 million).
Funding from loans was increased significantly, especially in Germany (2011: € 77.5 million,
2010: € 59.1 million) and Mexico (2011: € 28.9 million, 2010: € 13.9 million). 13.7 percent
of the volume of lease originations was funded by loans from 15 banks.
Because CHG-MERIDIAN AG has a direct and indirect 50.0 percent shareholding in
CHG-El Camino Resources Mexico S.A. de C.V., Mexico City (Mexico), only half of the volume
of leases originated in Mexico is attributed to the CHG-MERIDIAN Group.
Free cash flow was used to fund € 63.9 million, or 7.5 percent, of the total volume of leases
originated by all regional companies.
Having achieved impressive growth in 2010, the UK subsidiary fell back more or less to
where it had been in 2009.
Trends at the
individual regional
companies
These companies continued to pursue a policy of rejecting new business that either
appeared too risky or did not offer an adequate risk/return profile.
Despite the very high absolute increase in the volume of leases originated for existing
customers, the proportion of business transacted with new customers was actually raised
from 28.9 percent to 31.9 percent in 2011. The acquisition of new clients enables the
CHG-MERIDIAN Group to continually renew its portfolio and is vital to its lasting success.
Its long-term objective is therefore to win a consistent proportion of new customers over
time (roughly 30 percent).
Proportion of business
with new customers
1.2.2 Funding
Credit lines were increased in order to meet the greater demand for funding. As the sovereign debt crisis played out in the second half of the year, however, several funding partners demanded higher liquidity premiums and, in some cases, required longer processing
times and imposed stricter criteria on the credit-standing documentation to be submitted.
The CHG-MERIDIAN Group was not affected by funding difficulties either in 2009, at the
time of the crisis, or in the two subsequent years. Existing credit lines were extended and
considerably increased. It was also possible to obtain new funding partners. This wide range
of funding sources meant that the CHG-MERIDIAN Group had sufficient funding lines available
at all times in 2011.
The total volume of funding raised by the CHG-MERIDIAN Group in the year under review
(€ 794.1 million) represented a new all-time high (2010: € 612.3 million) and equated to
year-on-year growth of 29.7 percent. This funding was obtained from a total of 64 banking
partners in over 3,700 transactions. The funding base was expanded above all in the
United States, where the number of partners increased sharply to 14. The total funding
volume increased year-on-year in all regions except eastern Europe.
Funding environment
Future receivables are generally sold on a non-recourse basis (forfaiting) in Germany,
Austria, Switzerland and Belgium. Receivables worth a total of € 381.9 million (2010:
€ 318.6 million) were sold on an à forfait basis in these countries in 2011.
As in previous years, the Company‘s funding structure in Germany was characterized by
a high degree of non-recourse funding. Based on the volume of non-recourse finance of
€ 325.3 million (2010: € 272.2 million) that was disbursed in 2011, the forfaiting ratio was
around 72.9 percent last year compared with 79.3 percent in 2010. The forfaiting ratio is
defined as the proportion of disbursed non-recourse finance to lease originations during
the year.
The aggregate volume of forfaiting transactions in the Austrian and Swiss subsidiaries
amounted to € 18.5 million in 2011 (2010: € 13.2 million). Loans totaling € 5.8 million
(2010: € 3.9 million) were raised to partly compensate for the larger volume of lease originations. Non-recourse finance was obtained from five funding partners in Austria (2010:
four). As in the previous year, leases originated in Switzerland were funded on a nonrecourse basis by one bank.
The volume of funding raised in Belgium grew from € 33.2 million in 2010 to € 42.4 million in 2011; € 38.0 million of this amount (2010: € 33.2 million) was funded on a nonrecourse basis.
In the United Kingdom, non-recourse funding amounting to € 36.7 million (2010: € 50.4
million) was obtained from 13 (2010: 18) banks. The decrease in lease originations largely
accounted for the contraction in the volume of receivables funded. The funding transactions have the legal status of loans whose repayments are dependent on the lessee‘s
credit standing and payments. Non-recourse transactions to fund operating leases are
shown on the balance sheet under deferred income, whereas the non-recourse funding of
finance leases is reported under liabilities to banks.
3
22
Accounted for as leased assets on the lessor´s balance sheet
23
1 group management report > Performance of the Group‘s business
1 group management report > Performance of the Group‘s business
Funding in France, Spain and Italy is generally provided through the sale of assets, which
involves transferring legal title to the leased equipment as well as the credit risk to the funding partner. These countries used this method to raise funding of € 87.8 million in 2011
compared with € 56.1 million in 2010. These totals are broken down as follows: € 38.7
million in France (2010: € 22.5 million), € 25.9 million in Italy (2010: € 11.8 million), and
€ 23.2 million in Spain (2010: € 21.8 million).
Region
Central Europe
D-A-CH-SLO
Western Europe
B-NL-UK
Southern Europe
In eastern Europe, lease originations totaling € 2.7 million (2010: € 9.4 million) were funded
on a non-recourse basis. In addition, € 1.0 million of the leases originated in eastern
European countries were funded by loans.
F-SP-I
Eastern Europe
RUS-PL-CZ-SK
Americas
USA-CAN-MEX (50%)
Non-recourse funding of € 103.1 million was obtained in the United States (2010: € 33.0
million). The funding partners currently available comprise 14 (2010: eight) banks, which
in some cases also funded receivables from leases originated in the previous year.
Total
Non-recourse funding in Mexico totaled € 30.6 million (2010: € 46.5 million) and was
provided by two banking partners. In addition, funding of € 28.9 million (2010: € 13.9 million)
was obtained in the form of loans in Mexico. The CHG-MERIDIAN Group only recognizes
half of the funding volumes in Mexico in line with its 50 percent shareholding in the local
company.
*
Funding by banks
Volume of loans
originated
€ 000‘s
Number of banks
Type of
funding
€ 000‘s
2011
2010
472,931
Non-recourse
loans
343,837
83,324
22
24
126,839
Non-recourse
loans
108,505
4,340
1 18*
22*
96,243
Non-recourse
loans
87,827
0
11
13
11,399
Non-recourse
loans
2,748
956
3
2
150,645
Non-recourse
loans
133,656
28,940
22
16
858,057
Non-recourse
loans
Free Cash Flow
676,573
117,560
63,924
64*
64*
incl. CHG-MERIDIAN Capital Ltd. (UK)
1.2.3 Legal and Organizational Structure of the CHG-MERIDIAN Group
The organizational structure of the operating companies in the CHG-MERIDIAN Group as at
December 31, 2011 is shown in the diagram below.
The fact that the proportion of non-recourse funding remains high reflects the
CHG-MERIDIAN Group‘s unchanged principle that most of its leases should be funded by
banking partners on a non-recourse basis. Funding provided by the Company itself should
take the form of bridging loans until non-recourse finance becomes available. However, the
Company is deliberately stepping up its loan-based funding for customers with excellent
credit standings and is therefore aiming to reduce its proportion of non-recourse funding
to between 60 and 70 percent over the next few years. The CHG-MERIDIAN Group is looking
to exploit significant synergies and margin potential by increasing its use of loan-based
finance. Consequently, part of the Company‘s focus in Germany has been on obtaining
further syndicated loans.
chg-meridian dEUTSCHE cOMPUTER lEASING ag
CHG-MERIDIAN
Canada Finance Ltd
CHG-MERIDIAN
US Holding Inc.
CSL Finance N.V.
CHG-MERIDIAN
Computer Leasing
Netherlands BV
CHG-MERIDIAN
Computer Spain S.L.
CHG-MERIDIAN
Schweiz AG
CHG-MERIDIAN
Computer Leasing
Ireland Limited
CHG-MERIDIAN
Italia S.p.A.
CHG-MERIDIAN
Computer Leasing
Austria GmbH
CHG-MERIDIAN
(Holdings) UK
Limited
CHG-MERIDIAN
Computer Finance
France SAS
CHG-MERIDIAN
Computer Leasing
d.o.o. (Slovenia)
95%
CHG-MERIDIAN
Mobilien GmbH
CHG-MERIDIAN
Computer Leasing
Czech Republic s.r.o.
63.16%
CML Services
GmbH
CHG-MERIDIAN
Computer Leasing
Slovakia s.r.o.
abakus
IT AG
CHG-MERIDIAN
Computer Leasing
Polska sp. z o.o.
85%
CHG-MERIDIAN
Leasing-BeteiligungsHolding GmbH
68.51%
CHG-MERIDIAN
Computer Leasing
Belgium N.V.
CHG-MERIDIAN
US Finance Ltd.
CHG-MERIDIAN
Belgium N.V.
31.49%
99.92%
0.08%
The CHG-MERIDIAN Group managed to maintain its funding base of 64 lending banks
despite the fact that some partners ceased to provide finance for leasing companies. Roughly
34.3 percent of the total volume of funding raised was obtained from the four main banking partners (Landesbank Baden-Württemberg, SG Equipment Finance Group, ING Lease,
and IBB). This proportion equated to a year-on-year decrease of a further 4.2 percentage
points. In order to further expand its funding base the CHG-MERIDIAN Group began negotiations with banking partners in 2011, which will result in new master agreements in 2012.
Business relations
In 2011, based on disbursed funding of € 794.1 million (2010: € 612.3 million) and lease
originations in the Group of € 858.1 million (2010: € 661.0 million), the proportion of leases
funded externally was 92.6 percent (2010: 92.6 percent). The fact that the Group has
managed to sustain this significant level of external funding illustrates the high level of
trust that funding partners have in the CHG-MERIDIAN Group.
Percentage of leases
funded externally
41.83%
CHG-MERIDIAN do
Brasil Locação de
Equipamentos Ltda.
CHG-El Camino
S.A.P.I. DE C.V.
(Mexico)
51%
0.001%
8.17%
99.999%
ECR Leasing
Services
S.A.de C.V.
SOFOM, ENR
SPAP
S.A.P.I. de C.V.
54.4%
OOO
CHG-MERIDIAN
Leasing (Russia)
CHG-MERIDIAN
UK Limited
CHG-MERIDIAN
Capital Limited
(UK)
Lease Support
Desk Limited
(UK)
n-komm
GmbH
CHG-MERIDIAN
Computer Leasing
UK Limited
The CHG-MERIDIAN Group has its own subsidiaries in all countries where lease finance
is offered.
The German parent company provides the necessary back-office services for the subsidiaries in Austria, Switzerland and Slovenia. At the end of 2011 the CHG-MERIDIAN Group
had a total of eight sales offices in the German-speaking countries (December 31, 2010: eight);
the geographical distribution of these offices ensures that they are sufficiently close to
their clients.
The UK company provides the necessary services for the subsidiary in Ireland, while the
Belgian company provides some of these services for the subsidiary in the Netherlands.
Slovakia receives administrative support from the Czech Republic. The other companies
maintain their own administrative departments in addition to sales departments. The
Canadian subsidiary is managed from the United States.
24
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1 group management report > Performance of the Group‘s business
1 group management report > Performance of the Group‘s business
1.2.4 Technology and Service Center
Whereas the number of staff in the United States increased from 22 to 34 in 2011 owing to
the growth of this local subsidiary, the headcount at the French subsidiary fell from 27 to 20.
The new Technology and Service Center in Gross-Gerau near Frankfurt am Main was completed at the end of 2010 and is also used as a sales office. The Technology and Service
Center has the capacity to recondition 800,000 items of equipment per year and has been
designed with the requirements and processes of the CHG-MERIDIAN Group in mind. We
are therefore confident that the larger volumes of equipment that we recondition will
further lower our marginal unit costs. For both environmental and economic reasons, the
building is equipped with a photovoltaic installation. This installation is the largest of its
kind in the Gross-Gerau area. The office building is heated by means of an air heat pump.
New Technology and Service
Center in Gross-Gerau
The Technology and Service Center in Gross-Gerau sold approximately 416 thousand items
of equipment in 2011 (2010: 394 thousand), which was a year-on-year increase of 5.6 percent. In addition to returned leased equipment, the items of equipment sold include 73
thousand units (2010: 72 thousand units) purchased by CHG-MERIDIAN AG from customers
or third parties so that they could be reconditioned in the Technology and Service Center
and then resold in the market (brokerage). The CHG-MERIDIAN Group‘s strategy is to generate additional income from the reconditioning and remarketing expertise offered by the
Technology and Service Center. The year under review also saw greater demand for the ITrelated services rendered by the CHG-MERIDIAN Group. Whereas data was securely erased
from 59,976 hard disks in 2010, secure erasure processes were carried out on a total of
73,617 hard disks in 2011. The majority of customers opted for TÜV-certified data erasure.
Volumes of remarketed
equipment
The increased productivity generated by the Technology and Service Center is demonstrated by the improvement in the average inventory turnover rate, which rose from 6.4 in
2008 to 10.1 in 2009 and then to 17.5 in 2011. This means that the amount of time needed
to process IT equipment in the Technology and Service Center has been reduced by roughly
63 percent in just three years.
IT Inventory turnover rate in the
Technology and Service Center
The secure data erasure service provided by the Technology and Service Center in
Gross-Gerau in accordance with processes certified by TÜV Informationstechnik GmbH
and DEKRA continued to grow significantly in 2011, increasing by 25 thousand appliances from 37 thousand in 2010 to approximately 62 thousand in 2011. In addition, a recently acquired high-performance degausser was used in Gross-Gerau
to demagnetize more than 11 thousand (2010: roughly 16 thousand) hard disks.
Services
A breakdown of the employee structure is given in section 1.2.5.2.
Incorporation of corporate
values into human resources
management
The CHG-MERIDIAN Group applies the principle of management by objectives to achieve
the overarching corporate targets. Individual targets are agreed for sales staff and managers. The formulation, agreement, and monitoring of annual targets ensures that all
employees are actively involved in working to achieve the Company‘s strategic objectives.
Furthermore, the CHG-MERIDIAN Group has defined values that provide guidance
for all members of staff in their day-to-day work and make up its corporate philosophy and culture. Through these shared objectives and values, combined with clearly
defined policies, the Group aims to ensure that all employees conduct themselves ethically
and in compliance with the law, both with regard to each other and to the public.
Skills training and continuing
professional development
The CHG-MERIDIAN Group continued to give high priority to skills training and continuing
professional development for its employees in 2011. The CHG-MERIDIAN Academy
provides employees with CHG-MERIDIAN-specific knowledge and expertise, such as
information about the Group‘s systems and processes. The Company continued to expand
its extensive training program and rolled it out to the foreign subsidiaries in 2011.
CHG-MERIDIAN AG also met its obligation as a responsible corporate citizen to provide training and apprenticeships for young people. Four apprentices commenced their commercial and IT traineeships in 2011. Two DHBW students and three trainees who completed
their studies/training in 2011 were offered jobs at CHG-MERIDIAN AG last year and they now
work in the IT/Organization, Internal Sales, and Sales departments. There were therefore a
total of 12 people in traineeships and apprenticeships at CHG-MERIDIAN AG. The Company
also offered students and schoolchildren more internships in an international setting,
giving them the opportunity to translate theory into practice and explore their personal
strengths and interests.
The year under review also saw CHG-MERIDIAN AG enter and win an award in the TOP JOB
competition to find the 100 best employers among Germany‘s small and medium-sized
firms. The prize was presented by TOP JOB mentor Wolfgang Clement at the official awards
ceremony in Duisburg on January 26, 2012.
The Technology and Service Center is increasingly performing proprietary services for customers of the CHG-MERIDIAN Group, thereby enhancing client satisfaction and helping to
boost profitability.
Companies looking to become a TOP JOB employer have to achieve excellent ratings in a
number of categories. The criteria assessed during the competition range from leadership
and dynamism to culture & communication, staff development & prospects, motivation,
entrepreneurship, and family friendliness. The results of this survey were largely based
on an online questionnaire sent to all members of staff in conjunction with information
provided by HR employees about their work.
1.2.5 Human Resources and Employee Structures
1.2.5.1 Staff Development and Training
The CHG-MERIDIAN Group employed a total of 637 people as at December 31, 2011, which
was 47 more than at the end of 2010.
Human Resources
CHG-MERIDIAN AG employed 362 people at the balance sheet date, which was 18 more
than at the end of the previous year (December 31, 2010: 344 people). The number of
employees at the non-leasing companies rose by five to 64.
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1 group management report > Performance of the Group‘s business
1 group management report > Key Performance Figures
1.2.5.2 Employee Structure
1.3 Key Performance Figures
The table below gives a breakdown of staff in the CHG-MERIDIAN Group by country and
company as at December 31, 2011:
1.3.1 Report on the Results of Operations
Country
Company
Headcount
2011
2010
Germany
CHG-MERIDIAN
Deutsche Computer Leasing AG
362
344
abakus IT AG
34
33
n-komm GmbH
21
16
9
10
CML Services GmbH
France
CHG-MERIDIAN
Computer Finance France SAS
20
27
UK
CHG-MERIDIAN (Holdings)
UK Limited
51
47
Belgium
CHG-MERIDIAN
Belgium N.V.
27
21
CHG-MERIDIAN
Computer Leasing Belgium N.V.
Italy
CHG-MERIDIAN
Italia S.p.A.
21
13
Spain
CHG-MERIDIAN
Computer Spain S.L.
17
15
Russia
OOO CHG-MERIDIAN Leasing
10
11
Austria
CHG-MERIDIAN
Computer Leasing Austria GmbH
4
6
Poland
CHG-MERIDIAN
Computer Leasing Polska sp. z o.o.
6
5
Netherlands
CHG-MERIDIAN
Computer Leasing Netherlands BV
9
9
Switzerland
CHG-MERIDIAN
Schweiz AG
4
4
Czech Republic
CHG-MERIDIAN
Computer Leasing Czech Republic s.r.o.
8
7
United States
of America
CHG-MERIDIAN
US Holding Inc.
34
22
637
590
total
There were no employees in Slovakia, Slovenia, Ireland, or Canada as at the balance sheet
date.
The CHG-MERIDIAN Group achieved net income of € 36.8 million in 2011, which was the
second-highest figure in the Company‘s history.
Profit from ordinary activities in 2011 amounted to € 50.8 million compared with € 53.8
million in 2010. This result, which represented only a slight year-on-year decrease, reflects
the individual line items. The improvement in net interest expense and net commission
income almost compensated for the decline in net income from leasing.
Staff expenses rose by € 6.2 million owing to the higher number of employees and the
record figures reported for lease originations and gross margin, which are key performance
indicators and form the basis of the variable remuneration paid to sales staff.
Income
The table below gives a geographical breakdown of total income from leasing, interest
income from lending and money-market transactions, commission income and other
operating income (in € 000‘s).
2011
Change %
Germany
491,206
491,712
-0.1
Europe (excl. Germany)
246,972
237,365
4.0
44,328
10,096
339.1
782,506
739,173
5.9
Americas
TOTAL
The CHG-MERIDIAN Group raised its income from leasing by € 34.3 million to € 745.2 million in 2011 on the back of its strong growth in the Americas.
Nevertheless, the lion‘s share of income from leasing was once again contributed by the
German parent company, which accounted for 62.1 percent (2010: 67.3 percent) of the
total. The second-largest contribution to total income from leasing was made by the Belgian
companies, which accounted for 7.0 percent (2010: 7.0 percent) of the total with an amount
of € 51.8 million (2010: € 49.5 million). The US subsidiary contributed € 43.0 million, or
5.8 percent, of the CHG-MERIDIAN Group‘s total income from leasing. The United States is
already expected to make the second-largest contribution to income from leasing in 2012.
Income from leasing comprises proceeds from leasing, brokerage4
(in € 000‘s).
and disposals5
2011
2010
Change %
624,849
601,998
3.8
Revenue from brokerage
78,644
62,459
25.9
Revenue from disposals
41,685
46,458
-10.3
745,178
710,915
4.1
Revenue from leasing
TOTAL
4
28
2010
5
Revenue from brokerage includes revenue from IT brokerage and revenue from the sale of assets
in the context of funding.
Revenue from disposals comprises revenue from the sale of used lease returns.
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1 group management report > Key Performance Figures
1 group management report > Key Performance Figures
1.3.2 Report on the Net Assets and Financial Position
Revenuefrom leasing rose from € 602.0 million in 2010 to € 624.8 million in 2011. The
main reason for this increase was the relatively strong growth in lease originations at the
US subsidiary.
The CHG-MERIDIAN Group‘s total assets amounted to € 1,499.1 million as at December 31,
2011 (December 31, 2010: € 1,245.2 million), which represents a year-on-year increase of
€ 253.9 million or 20.4 percent. The Group‘s net assets continue to consist mainly of leased
assets and deferred income.
The CHG-MERIDIAN Group generated brokerage revenue primarily from the sale of assets
by the subsidiaries in France and Spain. They sell the leases as part of funding, as a result
of which revenue from the sale of assets is reported under brokerage revenue. This revenue amounted to € 68.8 million in 2011 (2010: € 52.8 million).
Leased assets had grown by € 196.0 million to € 1,097.7 million by December 31, 2011
(December 31, 2010: € 901.7 million). In addition, receivables from finance leases, which
are reported under loans to customers, had advanced by € 46.1 million to € 129.9 million
as at December 31, 2011 (December 31, 2010: € 83.8 million) and largely explain the increase in loans to customers.
The CHG-MERIDIAN Group earned revenue of € 22.8 million from the Technology and Service Center in 2011 (2010: € 25.2 million). Revenue from brokerage amounted to € 2.9 million (2010: € 2.6 million). The CHG-MERIDIAN Group generated revenue of € 19.9 million
from the remarketing of lease returns (2010: € 22.6 million). The main revenue drivers in
2011 were again laptops, which accounted for € 7.6 million (2010: € 9.1 million), desktop
PCs, which accounted for € 6.6 million (2010: € 7.4 million), TFT monitors, which accounted
for € 4.1 million (2010: € 5.0 million), and servers, which accounted for € 2.4 million (2010:
€ 1.4 million).
Investment in leased assets are matched on the other side of the balance sheet by leaserelated liabilities to banks totaling € 163.6 million (December 31, 2010: € 158.7 million) and
deferred income of € 869.0 million (December 31, 2010: € 776.6 million) for receivables
sold on a non-recourse basis. The increase in lease-related liabilities to banks is a result of
the year-on-year growth in the volume of lease originations and a simultaneous decrease
in the proportion of non-recourse funding raised in 2011 (see section 1.2.2).
Revenue from the remarketing of equipment generated by the Technology and Service Center fell by € 2.2 million, or 9.5 percent, year-on-year despite the larger number of items
sold. This decrease was attributable to the declining market prices of used equipment
and to the greater age of the equipment returned, which in turn was caused by lease term
extensions. Nevertheless, the market for used IT equipment remains intact and demand
for equipment continues to exceed supply.
CHG-MERIDIAN AG increased its share capital by € 10.0 million in 2011 by converting other
retained earnings. In addition, two million of the Company‘s own shares were recalled
and canceled. However, this had no impact on its net assets or financial position because
treasury shares are already recognized as a negative line item within stockholders‘ equity.
Net commission income rose by € 0.3 million in 2011 owing to the constant expansion and
more efficient processing of the CHG-MERIDIAN Group‘s service offering as well as the availability of IT solutions that were customized to meet clients‘ specific needs. The constant
improvement and development of full-service leasing throughout the lifecycle of leased IT
products is gaining in importance
Commission income
The depreciation and write-downs of leased assets comprised depreciation of € 483.5
million (2010: € 476.1 million) and write-downs of € 1.3 million (2010: € 4.7 million). The
rise in depreciation of leased assets was largely due to the growth in lease originations
(see section 1.2.1).
Depreciation, amortization,
write-downs, and expenses
Expenses from leasing rose by € 33.3 million to € 116.4 million in 2011, which stemmed
largely from the higher expenses incurred in connection with the generation of revenue
from brokerage.
The CHG-MERIDIAN Group‘s equity ratio came to 7.5 percent, rising by 0.4 percentage points
year-on-year despite the strong growth in total assets. However, as in the case of all leasing
companies, the equity ratio for the CHG-MERIDIAN Group is of limited use as an indicator.
As a lessor in transactions where non-recourse funding is used, the CHG-MERIDIAN Group
recognizes the leased assets on its balance sheet even though, in funding of this nature, it is merely guaranteeing the existence of a legally valid claim to the receivables.
At the same time, the net present values of the lease receivables falling due after the
balance sheet date that have been sold on a non-recourse basis are reported under liabilities. These accounting principles result in balance sheet inflation which significantly reduces
the ratio of stockholders‘ equity to total assets. Wherever possible, subsidiaries finance
themselves. In order to do so, they have to ensure that they sustain their profitability. Their
parent company, CHG-MERIDIAN AG, is also available to help finance profitable projects
by ensuring that its subsidiaries are sufficiently capitalized and by granting them loans.
Other liabilities grew by a modest € 5.5 million to € 127.5 million.
Interest expense advanced by € 3.9 million year-on-year to € 47.9 million. This increase was
partly attributable to the higher interest cost of funding the growth in lease originations.
Staff expenses grew by € 6.2 million to € 58.9 million in 2011, mainly as a result of the
rise in performance-related commissions. This increase was in turn a consequence of the
significant rise in gross margins in 2011, the growth in lease originations, and the resultant
impact on staff expenses and the recruitment of new employees.
Overall the financial position of the CHG-MERIDIAN Group is very sound: free cash flow as
at December 31, 2011 was significant at € 93.7 million (December 31, 2010: € 82.4 million)
and the Group also had ample lines of credit at its disposal.
A consolidated tax expense of € 14.0 million (2010: € 15.8 million) reduced the net
income for 2011.
Taken together, the results of the CHG-MERIDIAN Group‘s operations were positive.
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1 group management report > Opportunities and Risks Report
1.4 Opportunities and Risks Report
1.4.1 Opportunities
1.4.1.1 Opportunities in the Leasing Market
As a consequence of the financial crisis, many companies are pursuing more flexible
corporate finance options as markets become steadily more buoyant. In addition, much
stricter criteria are being applied to long-term lending to corporates as a result of rules such
as those under Basel III, and bank loans are tending to become more expensive. Because
leasing offers an attractive alternative form of finance for long-term spending on capital
equipment, leasing companies can benefit from this situation. The current economic conditions offer the CHG-MERIDIAN Group, in particular, a range of opportunities for growth,
given that it can obtain cost-effective funding for its leases on the strength of its credit
standing and because it achieves optimum management of a diversified leasing portfolio.
1.4.1.2 Opportunities in IT
A well-functioning IT infrastructure forms the basis for all business processes and is therefore critical to the performance of a business. The development, implementation, and optimization of groundbreaking, customized, end-to-end IT concepts enhances flexibility,
cost transparency, and planning certainty for clients and, at the same time, reduces client
administrative expenses
The CHG-MERIDIAN Group recognized this trend early on and believes that its potential for
further growth lies in the constant improvement and development of its full-service leasing
offering throughout the lifecycle of the IT products it leases. The financial benefits of cloud
computing – a new technology in the IT industry in which IT services are made available
and managed over the internet, and then billed according to use – can be fully exploited
by the comprehensive range of services offered by the CHG-MERIDIAN Group. Data centers
can be optimized with the Data Center Solution module, which was launched in 2010 and
comprises both commercial and technical solutions. This consultancy model, which is
offered both as a full-service package and as a stand-alone module, brings structure to
complex processes and also optimizes energy efficiency, service continuity planning, and
capacity utilization in data centers. The expansion of consultancy services and the optimization of asset management is therefore a key factor in helping the CHG-MERIDIAN Group to
exploit the potential for growth in the service market.
32
1 group management report > Opportunities and Risks Report
The CHG-MERIDIAN Group uses the TESMA© Online asset management system that it developed as a technical platform for communicating with its clients. This internet-based
application provides clients with a complete and effective IT planning and reporting system, as it makes data on hardware, installation, and leases for each item of equipment
available in electronic form in a centralized database. TESMA© Online uses the latest
Web 2.0 technology and features a cutting-edge design. The new technology enables,
for example, procurement processes to be individually mapped for customers and at
the same time facilitates lifecycle asset tracking. The integration of the online functionality offered by Bechtle AG and DELL considerably enhanced TESMA©‘s appeal in 2011.
Customers can now use TESMA© Online not only to access a selection of predefined IT
equipment but also to draw on a very extensive and non-captive online product range.
TESMA© Online offers clients of the CHG-MERIDIAN Group a comprehensive range of solutions over the entire IT lifecycle. Before TESMA© Online is made available to customers, it
is configured into the following modules to suit their individual requirements:
•
•
•
•
•
•
•
•
eProcurement – a central ordering platform
Asset-Tracking – lifecycle management for the entire IT portfolio
Contract Management – swift access to all relevant contract information
Invoicing – swift and simple checking of invoices
Ticket Management – ticket manager for the administration of damage reports
Own Asset – convenient administration of purchased equipment
Reporting – standard and individual reports shown as charts and tables
Data Bridge – a data integration interface.
TESMA© Online was used by roughly 1,400 existing customers in 2011. The CHG-MERIDIAN
Group has continued to develop TESMA© Online and has rolled it out to all foreign subsidiaries. The Company can therefore offer all its customers a uniform communications
platform – from the United States to Russia.
The following describes the range of services geared to the product lifecycle of leased
assets:
•
The Company‘s wealth of experience in the realization of IT projects has provided it with
extensive expertise that it can make available to its clients, if requested, to help them make
decisions when working on projects. This includes conducting a needs analysis of
appropriate IT infrastructure and designing the optimum procurement, configuration, and
replacement process for the client, which can reduce the amount of time and administrative work needed and therefore both reduce costs and improve quality.
• By using various leasing models, the Company facilitates the regular replacement and
systematic upgrading of hardware for client/server applications.
To this end, it caters to customers‘ growing need at all stages of the IT lifecycle for guaranteed high-quality service and support and the comprehensive out-tasking of many activities involved in capital investments at a reasonable price that can be easily calculated.
• Leasing models for printers are available that give customers the cost transparency
they require plus a comprehensive service.
For years now the CHG-MERIDIAN Group has been transforming its business from a pureplay equipment financing organization into an investment management company.
• The Company enables clients to choose how their invoices are designed and sent,
depending on their individual business needs.
By offering a range of services that is geared to the IT products‘ lifecycle, the Company
goes well beyond the financing function traditionally performed by leasing companies. The
CHG-MERIDIAN Group operates as an IT service provider that offers its services as part of
a customized, solutions-driven leasing model. It adds substantial value for its clients by
providing carefully selected services and partners for each individual project as part of a
full-service IT leasing package.
•
The innovative Asset Care product enables CHG-MERIDIAN AG and some of its subsidiaries to offer their customers comprehensive protection that includes insurance cover
for electronic equipment and a conventional manufacturer‘s warranty. The insurance
cover is now significantly more comprehensive than a manufacturer‘s warranty.
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• Once their lease has expired, most clients prefer CHG-MERIDIAN to take back and
remarket used equipment for them (end-of-lifecycle management). This means that
clients are not inconvenienced by having to dispose of or remarket the equipment
themselves.
•
By offering its secure data erasure service, which has been inspected and certified by
TÜV Informationstechnik GmbH, Essen, Germany‘s safety standards authority, the
Company enables its clients to erase their sensitive and personal data from their hard
disks in compliance with data protection laws. Such erasure cannot be reversed by
currently available technology.
•
Price-per-Port Managed Networks, a new usage-based billing model offered in collaboration with HP Networking, provides greater cost transparency. In this model, each
service, software, or hardware component is no longer billed as an individual item;
instead, there is a fixed price per user. The full amount of regular costs is only incurred
if the connection is actually used. This provides clients with greater flexibility and they
can then focus on their core business in a time of rapidly changing economic conditions.
• In conventional billing models, the cost of leasing the equipment and all services
utilized can be captured in one cash flow, enabling the „cost per seat” to be calculated.
1.4.1.3 Growth Potential
The greatest growth potential available to the CHG-MERIDIAN Group lies in the expansion
of its service offering – as a way of supplementing and refining its product range – and,
more generally, in the growth of the American market.
1 group management report > Opportunities and Risks Report
1.4.1.4 Human Resources
Throughout the world, the CHG-MERIDIAN Group employs skilled sales personnel and salesrelated staff who have an outstanding level of expertise in the areas of information technology and leasing. There are also skilled administrative employees in a variety of roles
throughout the Group who are responsible, for example, for contractual or funding matters. In 2011 the position of chief finance officer (CFO) was created at CHG-MERIDIAN AG,
and this role was filled in October. The sales and aftersales functions in the CHG-MERIDIAN
Group are therefore staffed by highly competent teams.
The structured process used for hiring new employees is implemented by the HR department in consultation with the members of the Management Board and managerial staff.
The CHG-MERIDIAN Academy, working closely with the departments concerned, also offers a large number of inhouse continuing professional development options that enable
the CHG-MERIDIAN Group to achieve further improvements in the quality of its workforce.
Within the Group there is a continuous process aimed at integrating CHG-MERIDIAN‘s own
trainees, apprentices, and students. This reinforces staff members‘ integrity and ensures
that new employees acquire a broad base of knowledge as they pass through the different departments.
The expertise of the experienced members of the Management Board and skilled
employees, coupled with close cooperation within the individual departments, provide the
CHG-MERIDIAN Group with the opportunity to further strengthen its leading market position
in Germany as a non-captive supplier of IT leasing and IT services and to generate growth
in a fiercely competitive market.
1.4.2 Risk assessment
The options available to the CHG-MERIDIAN Group to pursue this growth potential include
the expansion of its service management – a process that is already underway – and the
acquisition of service companies, provided that such transactions make commercial sense.
At an international level the CHG-MERIDIAN Group‘s strategy is to provide its globally active
clientele with a comprehensive package of IT services in all relevant countries.
The dynamic North American market, which is the world‘s largest IT and communications
market in terms of revenue, and the rapidly growing emerging markets of Mexico and
Brazil offer high growth potential.
CHG-MERIDIAN AG also believes that there is considerable potential in the recently established subsidiary CHG-MERIDIAN Mobilien GmbH, which plans to originate leases worth
€ 40 million in its first year of operations.
1.4.2.1 General information
Risk is an unavoidable and integral aspect of business. The purpose of the CHG-MERIDIAN
Group‘s risk management system is to identify, analyze, evaluate, and manage specific
threats to the Group.
In order to manage these risks, the Group employs a holistic risk strategy in conjunction
with processes and organizational structures for monitoring and measuring risk that are
calibrated to reflect the size, nature, scope, complexity, and risk inherent in each transaction.
1.4.2.2 Organization of Risk Management
The structure and organization of the CHG-MERIDIAN Group‘s risk management system are
based on a defined operating and risk strategy applicable throughout the Group. This strategy is determined by the Management Board of CHG-MERIDIAN AG.
The risk strategy of the CHG-MERIDIAN Group is derived from the business strategy and
forms an integral part of the risk management process. The Management Board and
Supervisory Board of CHG-MERIDIAN AG set out the principles of risk policy. Its core message incorporates a code of conduct and it encourages all staff members to take a sensible
attitude toward risk. These principles form the basis for the specific structure of the risk
management organization and they are intended to promote universal awareness of risk.
All employees in the CHG-MERIDIAN Group are informed about these principles to ensure
that they are aware of risk, that risks are identified and monitored, and that appropriate
action is taken should an imminent threat arise.
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The idea behind the risk strategy is to enable us to exploit competitive advantages and
opportunities while avoiding risks that exceed a defined limit. CHG-MERIDIAN adopts a
risk-conscious approach to managing and monitoring potential threats and opportunities,
evaluates them in terms of their risk/reward profile and decides whether to accept or avoid
them based on the company‘s capacity to assume the risk involved.
The relevant executive directors and other decision-makers at both the German parent
company and its various foreign subsidiaries regularly analyze, evaluate and monitor
risk and also identify new risks and risk categories. The level of risk that can be assumed
by these decision-makers is governed by the net asset value of the individual company
concerned. The Management Board of CHG-MERIDIAN AG has set appropriate limits and
authorization levels for the specific risks involved, and these have been approved by the
relevant supervisory bodies.
As a function independent of the risk management process, internal audit – acting on
behalf of the Management Board – examines the integrity and effectiveness of the risk monitoring system in accordance with the statutory Minimum Requirements for Risk Management (MaRisk). Internal audit reports regularly to the management board.
Because the employees of the CHG-MERIDIAN Group are conscious of risk, threats to the
Group are identified, analyzed, assessed, and properly managed in the risk management
process. Furthermore, process-integral and cross-process monitoring ensure that the risk
management system, and the action taken within it, functions properly, fulfils its requirements, and is effective.
As a leasing enterprise with a strong focus on products and services, the CHG-MERIDIAN
Group is exposed to the following material risks when conducting its business
Counterparty
Risk
Liquidity Risk
Market Risk
Strategic
Risk
Operational
Risk
Credit Risk
Residual-Value Risk
Legal Risk
Investment Risk
Currency Risk
Personnel Risk
Country Risk
Equipment Risk
IT Risk
Interest-Rate Risk
1.4.2.3 Risk Management and Risk Monitoring
Risk Strategy
The objective of the risk strategy is to ensure that the CHG-MERIDIAN Group benefits from
competitive advantages and upside potential while at the same time measuring and
managing any risks arising in the course of its operating activities so as to safeguard risk
management as a whole.
Counterparty Risk
Counterparty risk is defined as the potential loss that can arise as a result of a counterparty‘s
default, either because of its insolvency or its unwillingness to meet its contractual
obligations.
The CHG-MERIDIAN Group defines credit risk, investment risk, and country risk as material
counterparty risks.
Credit Risk
Credit risk arises from the insolvency of clients that the Group has financed at its own risk
(leases funded by loans or from the Group‘s own resources). Such risk also exists during
transactions‘ prefinancing stages and in cases where purchase participation declarations
have been issued.
The companies seek to mitigate potential credit risk by ensuring that they have risk-adjusted organizational structures in place and by pursuing a policy of risk avoidance. Before a lease is signed in a business line relevant to this type of risk, it must be approved by
at least two mutually independent decision-makers – one from the sales function and one
from the aftersales function – in line with the Group‘s defined authorization procedures.
Such approval requires an analysis of the customer‘s credit standing based on suitable
credit rating documentation as well as close collaboration with funding partners. Exposures
involving a significant risk are rejected from the outset.
Another way in which the CHG-MERIDIAN Group seeks to mitigate credit risk is by deliberately offloading this risk. To this end, the Group aims to fund the vast majority of its leases
through the non-recourse sale of receivables. However, the Company is deliberately pushing
ahead with loan-based funding for customers with excellent credit ratings, so the forfaiting ratio will be reduced to between 60 and 70 percent in the next few years. In addition,
leases are only signed with new customers if the future annual volume of leases originated for the customer is at least € 100 thousand and the customer has a high credit rating.
The Group only opts for funding from its own resources or by loans if there is minimal business risk and the customer has successfully passed the credit checks. Some of the leasing
models offered by the Company include prefinancing stages during which the CHG-MERIDIAN
Group bears the credit risk. In order to prevent the overall risk becoming unacceptably
high, the CHG-MERIDIAN Group analyzes the risk arising in connection with funding from its
own resources and funding by loans as part of its monthly management reporting process;
it also analyzes credit risk quarterly.
The Group continued to use its risk-based operational and organizational structures to manage its credit risk effectively during the reporting period. Outstanding leases are therefore
funded largely on a non-recourse basis, which means that the level of credit risk borne by
the companies is moderate in relation to the total volume of business.
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The companies mitigate the fraudulent-receivables risk not covered by non-recourse funding to the largest possible extent by agreeing standard lease agreements in advance with
the banks providing the funding. Adjustments made to these contractual arrangements for
individual customers are agreed in detail with the funding bank concerned.
Investment risk constitutes the risk of potential losses being incurred by the provision of stockholders‘ equity and other financial resources for the subsidiaries.
Investment risk is monitored at CHG-MERIDIAN AG by the Management Board using information supplied by the financial control department. The Company‘s financial
planning and control of its equity investments ensures that they are regularly monitored and managed, thereby enabling potential risks to be identified at an early stage.
Investment Risk
Country risk arises if political or economic circumstances in a particular country impact
the value of a foreign exposure. It comprises transfer risk and other country risk. Transfer
risk arises if a debtor who is otherwise solvent and willing to make payments is unable
to meet payment obligations because the imposition of governmental or regulatory controls has prevented the debtor from obtaining foreign currency or from transferring assets
to parties not domiciled in the country concerned. Other country risk comprises risks that
may jeopardize the enforceability of receivables due from counterparties abroad, capital
investments, or anticipated profits abroad, independently of the transfer risk. It depends
on economic and political risk factors in a country, in particular country-specific liquidity
risk, market risk, and correlation risk.
Country Risk
Taking on and managing residual-value risk is one of the Company‘s core competencies.
The CHG-MERIDIAN Group mitigates its inherent residual-value risk by adopting a very conservative approach to the calculation of residual-value exposure. This policy reflects the
situation of the client and the Group‘s own assessment of the remarketing potential of the
individual product, which is based on its many years‘ experience of the market concerned.
The CHG-MERIDIAN Group regularly checks the accuracy of its assessment of remarketing
potential, on which this calculation is based, by analyzing the results of its remarketing efforts. If its assessment of remarketing potential changes significantly, the Group responds
by adjusting the fixed limits accordingly. Residual values that exceed fixed limits at cost
must be approved by the Management Board of CHG-MERIDIAN AG in accordance with the
relevant limits (rules of procedure).
Currency Risk
Internationalization plays a key role in the CHG-MERIDIAN Group‘s efforts to continue
generating high rates of growth. The increasing importance of its foreign markets exposes
the Group to currency risk.
At present, this currency risk arises from the funding of subsidiaries based outside the
euro zone.
The CHG-MERIDIAN Group aims to ensure that funding is obtained in the local currency of
the subsidiary concerned from its own funding partners. This policy helps minimize currency risk.
Country risk arises in CHG-MERIDIAN AG in connection with intercompany loans issued by
the parent company and in connection with the net asset value of subsidiaries. As subsidiaries are exposed to both transfer risk and liquidity risk, no distinction is made between
these two types of risk when determining country risk.
Net asset values denominated in foreign currency are exposed to risk from exchangerate fluctuations. The Group forecasts possible future exchange-rate movements based
on the fluctuations experienced in the previous 36 months and uses these to determine
the currency risk.
In order to minimize its country risk, the CHG-MERIDIAN Group operates almost exclusively in states that are members of the Organisation for Economic Co-operation and
Development (OECD) and in economically and politically stable countries. If there is an
exposure to country risk, investors generally demand a risk premium in return for this
exposure. The risk premium is calculated by comparing the coupon on sovereign bonds
issued by the country concerned with a risk-free sovereign bond in the same currency.
If the Group identifies a significant risk exposure, it may use derivatives in the form of microhedges to mitigate and manage the risk. The parent company uses the critical-terms-match
method to measure the effectiveness of the hedge.
Equipment Risk
Equipment risk constitutes the risk that leased equipment may be destroyed or lost by
the client. The equipment risk is correlated with the residual-value risk, as it is not possible to realize any available residual value through remarketing if the leased equipment is
destroyed or lost.
1.4.2.4 Market Risk
The residual-value risk is defined as a loss-of-earnings risk because residual values are
funded from the Group‘s own resources. Residual-value risk constitutes the risk that lease
payments made over the contractually agreed term of a lease may not fully cover the
investment in the leased equipment and the cost of funding.
It is part of the CHG-MERIDIAN Group‘s business philosophy to take on a calculated
amount of residual-value risk when it concludes leases with clients. This is often necessary
because clients sometimes demand operating leases that conform to international accounting standards. This involves residual values of at least 10 percent of the cost of the lease.
38
Residual-Value Risk
(Loss-of-Earnings Risk)
The CHG-MERIDIAN Group seeks to mitigate its equipment risk by requiring all leased
assets to be covered by electronic equipment insurance and property & casualty insurance.
Such policies are either taken out by the clients themselves with the lessor as the beneficiary, or they ask the lessor to insure the leased equipment for them. To ensure that this
insurance requirement is fully met and to enable claims to be settled as quickly as possible, the Group currently employs two people who specialize in this field. Equipment risk
was therefore considered to be of minor significance in 2011.
In individual cases, the CHG-MERIDIAN Group gives government institutions and clients
of impeccable credit quality the option of bearing their own liability for equipment risk.
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Interest-rate risk primarily arises from financial liabilities‘ sensitivity to changes in
market interest rates.
1 group management report > Opportunities and Risks Report
Interest-Rate Risk
By constantly monitoring and managing its cash resources using liquidity forecasts and by
keeping its outstanding loan commitments and liquidity reserves under constant review,
the CHG-MERIDIAN Group ensures that it is able to meet its payment obligations at all times.
In the vast majority of cases, the CHG-MERIDIAN Group excludes interest-rate risk during
the term of a lease by funding a very high proportion of its leases on a fixed-rate basis for
their entire term.
The Management Board monitors the Group‘s liquidity on a monthly basis. A three-year
liquidity budget is used to manage and monitor long-term cash resources.
1.4.2.6 Operational Risk
This means that interest-rate risk essentially only arises during the prefinancing stages of
leases until they are funded by a bank, as a result of market-sensitive exposures (funding
subject to variable terms and conditions – such as floating-rate bonds), and with respect
to leases funded by the Group itself.
The CHG-MERIDIAN Group seeks to mitigate and/or avert interest-rate risk by concluding
leases with its clients as far as possible at the same time as negotiations are being conducted with its funding partners. This usually enables the Group to approve leases already
knowing what funding terms and conditions have been agreed.
Operational risk arises directly from the CHG-MERIDIAN Group‘s business activities. Material
operational risk, as defined by the Group, comprises, in particular, legal risk and human resources risk. It also includes risk in connection with operating processes, including failure
of the IT infrastructure.
Legal Risk
Most of the CHG-MERIDIAN Group‘s financial liabilities consist of fixed-rate funding with
matching maturities. If any of its financial liabilities take the form of floating-rate debt
instruments, the Group identifies its interest-rate risk by calculating how its net interest
income or expense will be affected by changes in market interest rates. If it identifies an
open position, it uses micro-hedges to hedge the exposure. As a general rule, however,
the companies aim to obtain matched-maturity funding for their entire equipment portfolio without having to use derivatives.
Contractual risk arises when new types of lease are used or existing types of lease are
amended without the legal risks having been thoroughly assessed in advance. Changes
in contract law also give rise to contractual risk.
The CHG-MERIDIAN Group mitigates the first potential source of risk by severely restricting
the cases in which transactions are allowed to deviate from the Group‘s general terms and
conditions and by standardizing the various kinds of quotes and offers that sales staff are
allowed to submit to clients. These standard arrangements have been agreed with the
Group‘s funding partners and they enable its leases to be funded without any difficulties.
Before a lease is signed, the relevant sales directors and contract management staff check
to ensure that these standards have been complied with.
Consequently, interest-rate risk did not pose a material threat in 2011.
Any deviations from these standards and any customized agreements made with individual clients must be approved beforehand by the legal and funding departments and by the
responsible member of the Management Board. This procedure prevents unmanageable
legal risks from arising and safeguards the funding of leases.
1.4.2.5 Liquidity Risk
In 2011, the high quality of lease originations led to an increase in net asset value. This
asset value, together with the significant level of cash and cash equivalents, continued
to ensure that the CHG-MERIDIAN Group was awarded a high credit rating. Existing credit
lines were extended and considerably increased. The Company also focused on agreeing
further syndicated loans.
Given the current funding situation and the fact that a significant proportion of receivables from banking partners are funded on a non-recourse basis, the CHG-MERIDIAN Group
does not believe that it is exposed to any material liquidity risk. For their part, banks are
also returning to the idea that the funding of leasing companies is an area of business offering significant growth potential.
The maturities of the leases funded by the Company almost always match those of customerrelated business. With the exception of a bond whose book value amounted to € 12 million
at the balance sheet date, there was no lease funding with bullet maturities whose repayment could cause liquidity problems.
40
The CHG-MERIDIAN Group employs several attorneys, who are responsible for ensuring
that the business models used in its operating activities are adapted as swiftly as possible to take into account any risk exposures arising from changes in the legal framework.
Such risks are mitigated by the close involvement of attorneys, advisers, and specialist
staff (legal and tax department/group accounting). Membership of the Federation of German Leasing Companies (BDL) also provides access to extensive knowledge of the industry.
Personnel Risk
The risk arising in connection with staff turnover is of minor significance in the CHG-MERIDIAN
Group. Furthermore, the HR department is not aware of any legal disputes with employees
that have a material impact on the CHG-MERIDIAN Group‘s net assets, financial position
or results of operations.
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The CHG-MERIDIAN Group is reliant on functional and fully operational IT systems to ensure
that it processes all its transactions quickly and efficiently. The systems must be continuously updated in line with changing requirements.
1 group management report > Events after the Balance Sheet Date
1.4.3 Summary
IT Risk
Due to the business model and organizational structure of the CHG-MERIDIAN Group,
system failure in individual departments would not represent a material risk during the
first few days.
Against a background of steadily increasing risk and regulatory requirements, the Group
has been vindicated over the long term in its decision to opt for a conservative corporate
strategy. By pursuing a systematic risk management policy, the CHG-MERIDIAN Group was
well informed at all times about the latest developments in its risk exposures. The Group
plans to continue to streamline the risk management system in the future.
The following business processes in the CHG-MERIDIAN Group are mostly affected by IT risk:
1.5 Report on Post-Balance Sheet Date Events
• Contract management/invoicing
• Funding
• Financial accounting/receivables management
CHG-MERIDIAN AG is currently negotiating in Mexico to acquire further shares in its local
equity investment CHG-EI Camino S.A.P.I. with the aim of raising its shareholding to a total
of 80 percent. However, the negotiation process, which is still ongoing, has revealed
differences of opinion among shareholders.
Although the Group regards system failure as a low risk, it has taken precautionary measures to be applied in individual units:
CHG-MERIDIAN Mobilien GmbH was established in December 2011 as a subsidiary in which
CHG-MERIDIAN AG holds a 95 percent stake. Germany‘s Federal Financial Supervisory
Authority (BaFin) granted its official approval in February 2012.
• IT service continuity plan (anti-virus protection, backup systems/daily data backups,
redundant networks/systems, etc.). This plan was completely revised in 2009 and 2010.
• IT policies (security procedures, etc.)
If an IT crisis were to materialize, persons or groups of persons would be allocated functions with specific tasks. The IT service continuity plan also includes a clear description of
the procedure in the event of hardware failure. In addition to recovery plans and plans for
the very rapid procurement of new hardware (which can generally be replaced within five
days), the IT department in the CHG-MERIDIAN Group has implemented a variety of internal and external fallback procedures, such as the use of backup servers.
No other significant events occurred after the end of the 2011 fiscal year.
1.6 Outlook
Economic
Environment
The financial crisis was preceded by a period of many years during which governments,
investors and consumers ran up massive debts. This indebtedness has now reached a level
at which more and more creditors are beginning to doubt borrowers‘ creditworthiness.
Whereas this situation initially affected banks and companies during the financial and
economic crisis, European countries are now in the firing line (see TSI Conference held on
February 8, 2012). The sovereign debt crisis is making it much more difficult for banks to
raise the necessary funding, and this effect is being further compounded by the forthcoming Basel III and Solvency II regulation and by the new legislation on bank restructuring.
Growth in the
CHG-MERIDIAN Group
The CHG-MERIDIAN Group increased its volume of lease originations by 29.8 percent in
2011, which was higher than the growth achieved by the equipment leasing market as a
whole. The increasing need for companies to update their IT environments will offer the
CHG-MERIDIAN Group further growth potential in 2012.
The measures devised in 2010 for the IT service continuity plan were implemented in 2011.
These included a redundant network in the CHG-MERIDIAN Group, the backup data center
in Gross-Gerau, and service continuity tests conducted in specific areas.
Separate guidance (IT security procedures, data protection regulations etc.) has been
issued to all members of staff to ensure that they use information technology securely. The
inhouse functions and authorities responsible – especially internal audit – regularly check
that this guidance is being followed.
IT risk was deemed to be of minor significance in 2011.
1.4.2.7 Strategic Risk
In the CHG-MERIDIAN Group, business model risks such as income risk or margin risk are
considered strategic risk. The management of strategic risk is the primary responsibility of
the management board. In analyzing and evaluating this risk, which is largely determined
as a qualitative factor, the Management Board is supported by the relevant departments.
Strategic risk is therefore identified and evaluated on the basis of constant observations of
macroeconomic conditions as well as regular analysis of competitive and sectoral trends.
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The Group is able to address two key customer needs. First, lease finance represents a
flexible funding option that can be readily adjusted. Whereas overfunding can reduce
equity ratios and underfunding can cause liquidity problems, optimum usage-based
funding can be achieved with the CHG-MERIDIAN Group‘s transparent and flexible
billing model. Furthermore, leasing protects working capital and is often the sole economically viable solution when companies are faced with difficulty in raising loans, a situation that continues to prevail at present. Second, companies expect full-service IT solutions with one point of contact during all phases of the IT lifecycle from the planning stage
to the implementation and funding of IT projects. As a full-service provider of information and communications technologies, the CHG-MERIDIAN Group can offer a complete
package of solutions tailored to customers‘ specific requirements for the entire IT lifecycle. In addition to offering consultancy expertise, the Group can also help streamline customers‘ business processes, thereby offering them potential cost savings.
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1 group management report > Outlook
1 group management report > Outlook
The CHG-MERIDIAN Group‘s aims are to generate further substantial growth and to improve
the profitability of some foreign subsidiaries.
To consolidate existing client relationships and win new customers, the CHG-MERIDIAN
Group plans to step up its sales activities with new sales concepts that create a stronger
link between conventional IT leasing business and the service and consultancy components.
Given its strong financial position, the CHG-MERIDIAN Group will continue to be on the
lookout for strategically beneficial acquisitions in 2012. To this end it will be exploring
the acquisitions market for leasing and service companies both inside and outside Germany.
Investment in sales concepts
and process optimization
Internal processes will be streamlined throughout the Group so that the growth potential
can be exploited in full. The standardization of corporate processes and software applications within the Group was initiated during the course of 2010. This included Group-wide
migration to a new standardized accounting system. The implementation of the Microsoft
Dynamics NAVISION accounting software was successfully completed in Germany, Switzerland, Austria, Belgium, and the Netherlands in 2011. These projects are expected to be
largely completed throughout the remaining countries in 2012, which will then enable the
Group to achieve efficiency improvements.
On the whole, the CHG-MERIDIAN Group has started 2012 on an optimistic note and aims
to expand its volume of lease originations compared with 2011 while sustaining its impressive financial performance.
Weingarten, March 1, 2012
CHG-MERIDIAN
Deutsche Computer Leasing AG
The CHG-MERIDIAN Group plans to establish its own internal cloud solution in 2012.
Jürgen Mossakowski
The CHG-MERIDIAN Group‘s planning targets for its European business in 2012 include an
expansion of the volume of leases originated. Capital spending on sales infrastructure and
on new, suitably qualified staff will exploit the growth potential offered by the European
regional companies. Closer networking between the individual regional companies over
the next few years will be one of the contributing factors allowing the Group to enter into
full-service leases with a large number of big-ticket customers in several countries, thereby reaping further synergies.
Peter Horne
Joachim Schulz
Trends in Europe
The CHG-MERIDIAN Group also believes that there is considerable potential in Germany for
the recently established subsidiary CHG-MERIDIAN Mobilien GmbH, which plans to originate leases worth € 40 million in its first year of operations.
The CHG-MERIDIAN Group‘s market position in the United States continues to offer huge
growth potential. The capital that it has invested in new sales infrastructure and suitably
qualified staff is expected to generate strong growth in lease originations.
Trends in the Americas
The subsidiary recently established in Brazil and the existing equity investment in Mexico
will help transform the Americas region into a key growth driver for the CHG-MERIDIAN
Group over the coming years.
The European leasing sector is more cautious than last year about the business outlook
for the first half of 2012. According to Leaseurope, only just over half of leasing companies
expect to see growth in the first six months of this year. The CHG-MERIDIAN Group believes
that it will manage to hold up very well in the marketplace despite the international turmoil
because, according to IDC forecasts, spending on both hardware and software is set to rise
by 6 percent. Gartner predicts that this investment will grow by 8.6 percent for hardware,
by 7.6 percent for software, and by 4.4 percent for IT services in 2012.
44
Forecast
45
2consolidated financial statements
Milan, Italy
Die in den vergangenen Jahren verfolgte Expansions- und Internationalisierungsstrategie hat im Geschäftsjahr 2011 für die Entwicklung der Unternehmensgruppe weiter an
Bedeutung gewonnen. Die deutsche Muttergesellschaft trägt immer noch am meisten zum
Neuinvestitionsvolumen bei, jedoch haben die Auslandsgesellschaften einen immer
größeren Anteil am nachhaltigen Erfolg der Unternehmensgruppe. Hierbei ist insbesondere
die Entwicklung der US-amerikanischen Gesellschaft bemerkenswert, die ihr Neuinvestitionsvolumen mehr als verdoppeln konnte.
1.7 Allgemeiner Überblick
1.7.1 Eckpunkte des Geschäftsjahres 2011
Die CHG-MERIDIAN-Gruppe zählt zu den weltweit führenden hersteller- und bankenunabhängigen Anbietern von IT-Leasing und Dienstleistungen im Bereich der Informations- und
Kommunikationstechnologie. Das Geschäftsmodell liefert ein kundenorientiertes FullService-Angebot von der Planung bis zur Realisierung und Finanzierung von komplexen
IT-Projekten. Wichtiges Kernelement ist das webbasierte Asset Management, das die Verwaltung der gemieteten Wirtschaftsgüter unterstützt.
Die auf kundenspezifische Anforderungen zugeschnittenen innovativen IT-Lösungsansätze
entlang des gesamten IT-Lebenszyklus sind auch auf den Auslandsmärkten zunehmend
erfolgreich. Gleichwohl ist der Entwicklungsprozess noch längst nicht abgeschlossen.
Die CHG-MERIDIAN-Gruppe ist nunmehr in 19 Ländern vertreten. Über die mexikanische
Beteiligung wurde vorläufig, zur Vorbereitung auf das operative Geschäft, eine Vermietgesellschaft in Brasilien gegründet.
Die CHG-MERIDIAN-Gruppe konnte ihre führende Marktstellung im Geschäftsjahr 2011 weiter
ausbauen. Eine konservative Finanzierungspolitik sowie ein qualitativ hochwertiges Leasingportfolio mit geringen Restwerten, gepaart mit einem gegenüber dem Vorjahr verbesserten Neuinvestitionsvolumen, trugen zur Steigerung der wirtschaftlichen Substanz bei.
Wie im Vorjahr verzeichnete die CHG-MERIDIAN-Gruppe im Geschäftsjahr weiterhin eine
hohe Anzahl an Vertragsverlängerungen und -umstrukturierungen. Trotz der starken Zunahme des Neuinvestitionsvolumens hielt die Gesellschaft an ihrer Strategie fest, Leasingverträge mit einem ausgewogenen Chancen-/Risikoverhältnis und tragfähigen Bonitätseinschätzungen der Kunden abzuschließen.
Die CHG-MERIDIAN-Gruppe konnte im Geschäftsjahr 2011 den Rekord-Konzernjahresüberschuss aus dem Vorjahr nahezu wieder erreichen. Hierzu beigetragen hat vorwiegend die
Steigerung des betriebswirtschaftlichen Gesamtergebnisses, welches sich im Wesentlichen
aus dem Deckungsbeitrag neu abgeschlossener Leasingverträge und Mietverlängerungen
ergibt. Diese schlagen sich jedoch erst zeitversetzt in der Gewinn- und Verlustrechnung
nieder.
Die wesentlichen Kennzahlen der Konzern-Gewinn- und Verlustrechnung sind in der nachfolgenden Tabelle dargestellt (in TEUR):
in TEUR
2011
2010
Veränderung in %
Leasingergebnis1
143.943
147.061
-2,1
Zinsergebnis
-32.373
-34.741
6,8
Ergebnis der normalen Geschäftstätigkeit
50.809
53.848
-5,6
Konzernjahresüberschuss
36.779
38.092
-3,4
GuV-Kennzahlen
46
Nach wie vor trägt die Konzernmutter CHG-MERIDIAN Deutsche Computer Leasing AG,
Weingarten (im Folgenden auch kurz „CHG-MERIDIAN AG“) den größten Anteil zum betriebsGeographical coordinates: 45° 27' 45" north, 9° 11' 31" east
wirtschaftlichen
Erfolg der Gruppe bei.
Area: 182 km2
Population: 1.3 million.
Population density: 7,363 inhabitants/km2
Gross domestic product (GDP): € 102 billion/$US 136 billion
Resident companies: Pirelli, Alfa Romeo, Fininvest, Armani, Dolce & Gabbana, Prada,
Riva, ERG, Edison, Borsa Italiana, GranMilano, Sanpellegrino, Telecom Italia, A2A,
1 Definiert als Summe der Leasingerträge, Leasingaufwendungen sowie Abschreibungen und WertberichtigunUnicredit,
Lufthansa, Prysmian
gen auf dasVodafone,
Leasingvermögen
Growth sectors: Design, fashion, finance, telecommunications, biotechnology,
chemicals, health, tourism
Innovation potential: 15 large universities with approx. 200,000 students
Employed in R&D: More than 16,000
Im Geschäftsjahr 2011 wurde das strategische Wachstumsziel und -potential der stark
wachsenden U.S. Gesellschaft mit einer Kapitalerhöhung um EUR 30,7 Mio. unterstützt.
1.7.2 Konjunkturelles Umfeld
Central asset management with TESMA© Online
Branch
Die Weltwirtschaft hat sich nach ihrer schwersten Krise seit der Nachkriegszeit im Ge-
Personnel
services
schäftsjahr
2011 wieder etwas erholt. Die Investitionsquote in der Europäischen Union
(EU 27) begann sich langsam wieder zu verbessern. Sie ist jedoch noch weit entfernt von
Employees worldwide More
than 500,000
dem Niveau vor der Krise. Saisonbereinigt hat sich dieser für die CHG-MERIDIAN-Gruppe
wesentliche Konjunkturindikator gemäß EuroStat wie folgt entwickelt:
Turnover worldwide More
than € 14 billion/more than $US 18 billion
Investitionsquote
in %
IT portfolio More
than 800 IT clients
Modernization and networking of to date for the most part separately
managed devices of the Italian company branch, and thus a resulting
standardization of the entire IT lifecycle process, as well as the enabling of
Tasks uncomplicated, central information management
A web-based asset management system that is individually adaptable to the
needs of the customer guarantees the complete transparency of all clients –
Solutions from the cost structure to the installed software of individual devices
Services Consultation, financing solutions, IT tools
Products used TESMA© Online for web-based asset management of IT devices
A transparent leasing model of CHG-MERIDIAN for the modernization of the
Special features complete IT portfolio in Italy
Die insgesamt positive Entwicklung der letzten Quartale fällt jedoch regional und branchenspezifisch recht unterschiedlich aus.
47
2 consolidated financial statements > Consolidated Balance Sheet
2 consolidated financial statements > Consolidated Balance Sheet
2.1. Consolidated Balance Sheet
Assets
Liabilities and stockholders´ equity
Note
No.
1.
Dec. 31,10
€ 000‘s
€ 000‘s
Cash
Cash in the bank
21
b) other claims
6,689
4.
Debentures and
8
82,301
100,348
31,227
200,631
136,840
2.
Customer deposits
0
6,959
15,330
15,396
Dec. 31,10
€ 000‘s
€ 000‘s
10,536
268,172
14,993
278,708
166,689
16
sundry liabilities
a) on demand
7,646
b) with an agreed maturity
Money market instruments
Dec. 31,11
15
a) on demand
3.
other fixed-interest securities
5.
Liabilities to banks
b) with an agreed maturity
93,659
Loans to customers
136
7
a) on demand
3.
Note
No.
1.
Cash on hand
2.
Dec. 31,11
Debenture loans
51
8,390
7,697
49
12,033
12,018
17
debt securities issued
4.
Other liabilities
18
127,524
122,008
thereof financial services institutions:
5.
Deferred income
19
917,334
798,993
€ 15,319 thousand (Dec. 31, 2010: € 15,385 thousand )
5a.
Deferred tax liabilities Passive
20
10,402
0
Equity investments
6.
Leased assets
7.
Intangible assets
8.
Property, plant and equipment
9.
10.
9
6.
Provisions and reserves
1,097,736
901,742
1,415
289
11
29,504
28,479
b) for taxes
Other assets
12
49,837
36,979
d) other provisions and reserves
21
Prepaid expenses
13
4,290
3,534
Stockholders‘ equity
22
11.
Deferred tax assets
12.
Excess of plan assets over
pension liabilities
10
20
0
1,259
a) for pensions
7.
a) subscribed capital
minus notional value of treasury shares
14
21
47
19
29
1,197
2,708
32,273
33,489
30,568
50,000
40,000
-2,141
-3,447
issued capital
47,859
b) additional paid-in capital
618
618
c) retained earnings
ca) statutory reserve
cb) other retained earnings
d) stockholders‘ equity difference arising from currency translation
e) profit for the period attributable to the Group
4,382
20,154
3,382
24,536
7,368
1,797
2,754
36,520
37,896
f) minority interests
thereof profit attributable to minority interests
-- € 259 thousand (Dec. 31, 2010: € 196 thousand) --
1,499,133
48
1,245,188
616
111,946
1,499,133
172
1,245,188
49
2 consolidated financial statements > Consolidated Profit and Loss Statement
2 consolidated financial statements > Consolidated Statement of Cash Flows
2.2 Consolidated Profit and Loss Statement
2.3. Consolidated Statement of Cash Flows
Note
No.
2011
2010
€ 000‘s
€ 000‘s
2011
2010
€ 000‘s
€ 000‘s
1.
Income from leasing
26
745,178
710,915
Net income
36,779
38,092
2.
Expenses from Leasing
27
-116,402
-83,090
3.
Interest income from lending and money-market transactions
28
15,571
9,258
Leasing revenue assigned under forfaiting agreements and other
non-cash changes in deferred income
-527,631
-490,269
4.
Interest expense
29
-47,944
-43,999
Depreciation and write-downs of leased assets
5.
Commission income
30
15,889
15,886
6.
Commission expense
-4,910
-5,206
7.
Other operating income
5,868
3,114
8.
General administrative expenses
31
a) staff expenses
aa) wages and salaries
-52,221
ab) social security contributions and expenses
for pensions
thereof for pensions:
€ 14 thousand (2010: € 102 thousand)
b) other administrative expenses
9.
-6,691
32
-46,668
-58,912
-16,220
-6,072
-75,132
-16,829
-484,833
-480,764
Depreciation, amortization and write-downs of
a) leased assets
484,833
480,764
Depreciation, amortization and write-downs of property, plant and equipment,
and intangible assets
3,408
3,523
Increase (2010: decrease) in provisions and reserves (incl. deferred taxes)
11,845
-19,828
-899
-1,439
-6,709
-27,232
Net increase in customer deposits and other liabilities
4,774
22,381
Net cash provided by operating activities
6,400
5,992
Purchase of property, plant and equipment, and intangible assets
-5,741
-3,544
-699,259
-528,664
-46,132
-10,723
182
288
18,432
21,822
-732,518
-520,821
250
0
Cash-effective change in stockholders’ equity (distributions, dividends)
-11,017
-6,972
Purchase of treasury shares
-1,844
-3,125
Increase (2010: decrease) in debentures and other fixed-interest securities
6,959
-5,896
645,972
488,858
Other non-cash expenses and income
Net increase in receivables (excl. finance lease and hire purchase receivables),
sundry assets and prepaid expenses
Purchase of leased assets
Increase in finance leases and hire purchase agreements
33
-3,408
-3,523
10.
b) intangible assets and property, plant and equipment
Other operating expenses
-294
-228
11.
Write-downs and value adjustments on claims
and additions to the provisions for leasing business
-187
-1,552
1,413
2,606
50,809
53,848
12.
Net income from investments accounted for using
the equity method
13.
Profit from ordinary activities
14.
Extraordinary income
0
74
15.
Extraordinary net income
0
74
16.
Income taxes
-13,609
-15,113
17.
Other taxes
-421
-717
18.
Net income
36,779
38,092
19.
Profit attributable to minority interests
-259
-196
20.
Profit for the period attributable to the Group
36,520
37,896
34
Proceeds from the sale of property, plant and equipment, and intangible assets
Proceeds from the sale of leased assets
Net cash used for investing activities
Proceeds from amounts allocated to stockholders’ equity by minority interests
Net cash provided by forfaiting lease payments
Net increase in liabilities to banks and debenture loans
Net cash provided by financing activities
Net change in cash and cash equivalents
97,041
24,777
737,361
497,642
11,243
-17,187
Cash and cash equivalents* at the beginning of the period
82,437
99,624
Cash and cash equivalents* at the end of the period
93,680
82,437
*defined as the sum of cash on hand and cash in the bank (on demand).
50
51
2 consolidated financial statements > Consolidated Statement of Changes in Stockholders‘ Equity
2 consolidated financial statements > Consolidated Statement of Changes in Stockholders‘ Equity
2.4 Consolidated Statement of Changes in Stockholders‘ Equity
consolidated statement of changes in stockholders‘ equity at DEC. 31, 2011
Currency
translation
adjustment
€ 000‘s
Contributions/
Increase
in minority
interests
€ 000‘s
Acquisition/
purchase or
retirement
of treasury
shares
€ 000‘s
consolidated statement of changes in stockholders‘ equity at DEC. 31, 2010
Distribution
€ 000‘s
Appropriation
of profit/
loss
€ 000‘s
Dec. 31,11
€ 000‘s
Jan. 1, 11
€ 000‘s
Reclassifications
€ 000‘s
a)
subscribed capital
40,000
-
-
10,000
-
-
-
50,000
minus notional value of
treasury shares
-3,447
-
-
-
1,306
-
-
-2,141
issued capital
36,553
0
0
10,000
1,306
0
0
47,859
618
-
-
-
-
-
-
618
Reclassifications
€ 000‘s
Distribution
€ 000‘s
Appropriation of
profit/loss
€ 000‘s
Contributions
€ 000‘s
Jan. 1, 10
€ 000‘s
Dec. 31,10
€ 000‘s
a)
subscribed capital
30,000
-
-
-
10,000
-
40,000
minus notional value of
treasury shares
0
-3,447
-
-
-
-
-3,447
issued capital
30,000
-3,447
0
0
10,000
0
36,553
618
-
-
-
-
-
618
2,382
-
-
-
1,000
-
3,382
b)
additional paid-in capital
c)
retained earnings
4,382
ca) statutory reserve
-
20,154
cb) reserve for treasury shares
22,721
-22,721
-
-
-
-
0
cc) other retained earnings
1,715
322
5,331
-
-
-
7,368
-
1,797
d)
stockholders’ equity difference
arising from currency translation
0
2,754
-
-
-
-
2,754
e)
profit for the period attributable
to the Group
23,252
-
-5,331
-6,921
-11,000
37,896
37,896
f)
minority interests
23
4
-
-51
0
196
172
80,711
-23,088
0
-6,972
0
38,092
88,743
b)
additional paid-in capital
c)
retained earnings
ca) statutory reserve
3,382
1,000
-
-
-
-
-
cb) other retained earnings
7,368
25,930
-
-10,000
-3,144
-
d)
stockholders’ equity difference
arising from currency translation
2,754
-
-957
-
-
-
e)
profit for the period attributable
to the Group
f)
minority interests
52
BilMoG
adjustments
€ 000‘s
-
37,896
-26,930
-
-
-
-10,966
36,520
36,520
172
-
-7
250
-7
-51
259
616
88,743
0
-964
250
-1,845
-11,017
36,779
111,946
53
3notes to the
Frankfurt, Germany
consolidated financial statements
(incl. consolidated statement of changes in fixed assets)
Geographical coordinates: 50° 6' 38" north, 8° 40' 56" east
Area: 248 km2 Population: 680,000
Population density: 2737 inhabitants/km2
Gross domestic product (GDL): € 53 billion/$US 70 billion
Resident companies: Sanofi-Aventis Deutschland GmbH,
Deutsche Bahn, Siemens, Würth Group, Nestlé, KPMG,
Radeberger Gruppe KG, Deutsche Bank, Commerzbank,
KfW Bankengruppe, DZ Bank, Continental AG,
Deutsche Telekom AG (T-Systems), Crytek,
Standard & Poor’s, Deutsche Börse
Growth sectors: Chemicals, biotechnology,
medicine, optics, aviation, commerce, IT,
telecommunications, culture and creative economy
Investments in R&D: € 4.4billion/$US 5.8 billion
Employed in R&D: More than 10,000
permanent working capability during the roll-out
Branch
Public administration
Employees More than 14,000
IT portfolio Approx. 45,000 IT and output clients
Roll-out of approx. 14,000 devices to 250 locations in the Federal State of
Tasks Hessen in a period of three months.
Solutions Formulation and implementation of a complex roll-out plan
Installation of the new devices and collection of old devices, including the
assurance of certified data deletion by the technology and service center of
CHG-MERIDIAN. The project term for dismantling, safe transport and certified
Services data deletion amounts to a total of only three months
Products used TÜV-certified data deletion in the CHG-MERIDIAN technology center
The entire project phase requires customer service employees to be able to
work continuously. This is why the setting up of the new devices and the
dismantling of the old devices takes place in parallel at each workplace,
Special features greatly reducing downtime
54
55
3 notes to the consolidated financial statements
[1] Basis of Presentation
CHG-MERIDIAN Deutsche Computer Leasing AG, Weingarten (CHG-MERIDIAN AG), has
prepared these consolidated financial statements in accordance with the commerciallaw provisions of sections 290 et seq. of the German Commercial Code (HGB) in conjunction with sections 340 et seq. HGB that are applicable to banks and financial services institutions, and the Company has also complied with the regulations of the Statutory Order
on the Accounts of Banks and Financial Services Institutions (RechKredV, as amended on
June 9, 2011).
The presentation format of the consolidated balance sheet and the consolidated profit and
loss statement is generally consistent with the financial statement forms prescribed by the
RechKredV. One exception here is that the Company has modified the presentation format
in relation to the reporting of treasury shares under stockholders› equity in accordance with
section 265 (5) HGB in conjunction with section 340a (2) HGB. The net balance re-sulting
from the deduction of the notional value of treasury share from the subscribed capital is
shown as „issued capital”.
There are no control or profit-and-loss transfer agreements with any subsidiaries, and there
were no tax-sharing agreements as at December 31, 2011.
3 notes to the consolidated financial statements
Stockholders‘ equity is consolidated by netting the cost of acquiring the shareholdings in subsidiaries against the Group‘s share of their stockholders‘ equity. Goodwill arising from the acquisition of equity investments is written off in the year of acquisition.
Equity investments whose impact on the Company‘s net assets, financial position and results
of operations is insignificant individually and collectively are consolidated at amortized cost.
In 2011 this only affected the equity investments in Stadtmarketing Weingarten GmbH, Weingarten, and in ITMS Luxembourg S.A., Luxembourg.
Income and expenses as well as assets and liabilities between the consolidated companies
are netted off against each other.
Intercompany profits and losses arising from the provision of goods and services within the
Group are eliminated.
Deferred taxes on temporary taxable differences in earnings have been recognized at the standard tax rate of 30 percent (2010: 30 percent) applicable to the entire Group. Deferred tax assets have been recognized on tax losses carried forward if the losses concerned are expected
to be offset within the next five years.
[3] Scope of Consolidation
The consolidated financial statements have been prepared as at the balance sheet date
of CHG-MERIDIAN AG‘s single-entity accounts (December 31, 2011), which is the same as
the balance sheet date used for the consolidated subsidiaries and subgroups.
[2] Principles of Consolidation
The single-entity financial statements of the consolidated companies have essentially
been prepared using the same accounting policies. The companies comprising the UK
group (subgroup financial statements of CHG-MERIDIAN (Holdings) UK Limited), the US
group (subgroup financial statements of CHG-MERIDIAN U.S. Holding Inc.), CHG-MERIDIAN
Computer Spain S.L. and CHG-MERIDIAN Computer Leasing Ireland Limited have elected
to use the exemption available under section 308 (2) sentence 4 HGB because the computation of historical cost would incur an unreasonable financial burden and would cause
a disproportionate delay in the preparation of the consolidated financial statements of
CHG-MERIDIAN AG. These companies classify their leases based on either IFRS or US GAAP
accounting principles . This means that a lease involving the repayment of over 90 percent
of the total acquisition cost is reported not as a leased asset but as a receivable discounted
to its net present value or, in some cases, as a residual value (finance lease). If repayment is less than 90 percent of the total acquisition cost, the equipment is reported as a
leased asset on the balance sheet and depreciated over the term of the lease to its estimated residual value. The recognition of interest income from finance leases is consistent
with the principles of German commercial law applicable to hire purchase agreements. The
different classification means that these companies derive their profit or loss for the period from the mathematical computation of interest income in the cases of finance leases
The profit or loss for the period on leases reported as leased assets is derived from the leasing
income (straight-line lease payments) less depreciation, amortization and write-downs of leased
assets. The sliding scale of income over the term of finance leases means that the profit or loss
for the period at the inception of a lease is higher than the straight-line level of income reported
for the same period for leases classified as leased assets. The opposite effect obtains at the
end of the lease term. Both methods produce identical results over the full term of the lease.
1
56
2
3
With the exception of the non-capitalization of initial direct costs, which cannot be capitalized according to
German commercial-law accounting principles
Reported as „Loans to customers”
Reported as „Other assets”
In addition to CHG-MERIDIAN AG, the consolidated financial statements include all subsidiaries that are fully consolidated and over which direct or indirect control can be exerted within the meaning of section 290 (1) and (2) HGB.
The table below shows changes in the scope of consolidation of the CHG-MERIDIAN Group.
Balance at
Dec. 31, 11
Balance at
Dec. 31, 10
36
36
• within Germany
6
5
• outside Germany
Consolidated subsidiaries
30
31
Companies accounted for
using the equity method
6
5
• within Germany
0
0
• outside Germany
6
5
The scope of consolidation changed as follows in 2011:
• El Camino Resources de America Latina Inc., Los Angeles (United States), was merged
with CHG-MERIDIAN U.S. Finance, Ltd., Los Angeles (United States).
• CHG-MERIDIAN do Brasil Locação de Equipamentos Ltda., São Paulo (Brazil), was es tablished as a subsidiary of CHG-EI Camino S.A.P.I. de C.V., Mexico City (Mexico).
• CHG-MERIDIAN Mobilien GmbH, Weingarten (Germany), was established as a 95 percent
shareholding of CHG-MERIDIAN AG.
57
3 notes to the consolidated financial statements
3 notes to the consolidated financial statements
These changes in the scope of consolidation have had no material impact on the
CHG-MERIDIAN Group‘s net assets, financial position or results of operations.
Affiliated company
In addition to CHG-MERIDIAN AG the following subsidiaries have been consolidated:
Affiliated company
Registered office
Share of
subscribed
capital (%)
Status
[active (A)/
Inactive (I)]
Foreign subsidiaries
Share of
subscribed
capital (%)
Status
[Active (A)/
Inactive (I)]
German subsidiaries
abakus IT AG
Weingarten, Germany
54.4
A
n-komm GmbH
Karlsruhe, Germany
27.7
A
CML Services GmbH
Munich, Germany
63.2
A
CHG-MERIDIAN
Leasing-Beteiligungs-Holding GmbH
Weingarten,
Germany
85
A
CHG-MERIDIAN Mobilien GmbH
Weingarten, Germany
95
A
Foreign subsidiaries
58
Registered office
CHG-MERIDIAN
Computer Leasing Austria GmbH
Vienna,
Austria
100
A
CHG-MERIDIAN
Belgium N.V.
Grimbergen,
Belgium
100
A
CHG-MERIDIAN
Computer Leasing Czech Republic s.r.o.
Prague,
Czech Republic
100
A
CHG-MERIDIAN
Computer Finance France SAS
Paris,
France
100
A
CHG-MERIDIAN
Computer Leasing Ireland Limited
Dublin,
Republic of Ireland
100
A
CHG-MERIDIAN
Italia S.p.A.
Monza,
Italy
100
A
CHG-MERIDIAN
Computer Leasing Netherlands BV
Rotterdam,
Netherlands
100
A
CHG-MERIDIAN
Computer Leasing Polska sp. z o.o.
Warsaw,
Poland
100
A
CHG-MERIDIAN
Schweiz AG
Baden,
Switzerland
100
A
CHG-MERIDIAN
Computer Leasing Slovakia s.r.o.
Bratislava,
Slovakia
100
A
CHG-MERIDIAN
Computer Spain S.L.
Barcelona,
Spain
100
A
CHG-MERIDIAN
(Holdings) UK Limited
Egham, Surrey
United Kingdom
100
CHG-MERIDIAN
UK Limited
Egham, Surrey
United Kingdom
CHG-MERIDIAN
Computer Leasing UK Limited
Wyse Leasing (Midlands) Limited
Egham, Surrey
United Kingdom
100
I
Wyse Capital Limited
Egham, Surrey
United Kingdom
100
I
UK Lease IT Limited
Egham, Surrey
United Kingdom
100
I
Wyse Leasing (South East) Limited
Egham, Surrey
United Kingdom
100
I
Wyse Leasing Limited
Egham, Surrey
United Kingdom
100
I
CSL Finance N.V.
Grimbergen,
Belgium
100
A
CHG-MERIDIAN
Computer Leasing Belgium N.V.
Grimbergen,
Belgium
100
A
OOO CHG-MERIDIAN Leasing
Moscow, Russia
85
A
CHG-MERIDIAN
Computer Leasing d.o.o.
Ljubljana,
Slovenia
100
A
CHG-MERIDIAN
Canada Finance Limited
Windsor,
Canada
100
A
CHG-MERIDIAN
U.S. Holding Inc.
Los Angeles,
United States
100
A
CHG-MERIDIAN
U.S. Finance Limited
Los Angeles,
United States
100
A
The companies shown in the table below are significant equity investments that have been
consolidated using the equity method.
Equity investment
Registered office
Share of
subscribed
capital (%)
Status
[active (A)/
Inactive (I)]
Foreign subsidiaries
CHG-El Camino S.A.P.I. de C.V.
Mexico City, Mexico
50
A
A
Servicios Profesionales de Administración
de Personal S.A. de C.V.
Mexico City, Mexico
50
A
100
A
Fincredit S.A. de C.V.
Mexico City, Mexico
50
I
Leasing Consulting S.A. de C.V.
Mexico City, Mexico
50
I
Egham, Surrey
United Kingdom
100
A
ECR Leasing Services S.A. de C.V.
SOFOM, ENR
Mexico City, Mexico
24.5
A
CHG-MERIDIAN
Capital Limited
Egham, Surrey
United Kingdom
100
A
CHG-MERIDIAN do Brasil Locação de E
Equipamentos Ltda.
São Paulo, Brazil
50
A
Lease Support Desk Limited
Egham, Surrey
United Kingdom
100
A
Wyse Finance Limited
Egham, Surrey
United Kingdom
100
I
Flameace Limited
Egham, Surrey
United Kingdom
100
I
59
3 notes to the consolidated financial statements
[4] Currency Translation
The consolidated financial statements of CHG-MERIDIAN AG have been prepared in euros (€).
Assets, stockholders‘ equity, liabilities, contingent liabilities and other financial commitments are translated using a modified closing-rate method4, while the items in the profit
and loss statement are translated at the average rate for the year.
Exchange differences arising from the translation of stockholders‘ equity on balance sheets
prepared in foreign currencies and the exchange differences arising from the translation of
the profit or loss for the period on the balance sheet (at the closing rate) and from the translation of the profit or loss for the period on the profit and loss statement (net balance of
income and expenses translated at the average rate) are reported after the reserves within
stockholders‘ equity as „stockholders‘ equity difference arising from currency translation”.
[5] Departures from the Valuation Methods Applied to the Single-Entity Financial State-
ments of CHG-MERIDIAN AG
Because of the standard valuation methods used, the following valuation methods have
been applied to the consolidated financial statements in departure from the accounting
policies used in CHG-MERIDIAN AG‘s single-entity financial statements.
In contrast to the parent company‘s single-entity financial statements, these consolidated
financial statements have not utilized the option to immediately write off low-value assets
costing up to € 150.00 or to use the declining-balance method (still permitted in 2009) for
depreciating leased assets. The depreciation periods applied in the consolidated financial statements for leased assets acquired in 2011 have not been brought into line with
the estimated useful lives. The cost of leased assets acquired in 2011 has been depreciated on a straight-line basis over the term of the lease to the assets‘ estimated residual
value. The same method has been applied to leased assets acquired by December 31, 2010.
Deferred income from forfaiting transactions is released over the respective period in the
consolidated financial statements and on a straight-line basis in the single-entity financial statements of the Group parent company.
The provision reported in the single-entity financial statements of CHG-MERIDIAN AG for
default risks arising from leases whose outstanding lease payments plus their anticipated
remarketing proceeds do not cover their current book value has been treated as a writedown in the consolidated financial statements.
3 notes to the consolidated financial statements
Loans are recognized at their nominal amount less any specific valuation allowances.
As-sets denominated in foreign currency are translated at the closing rate. Loans to customers essentially comprise trade receivables and receivables from finance leases,
consisting of lease payments falling due in future and discounted at the internal rate of
return, which are classified as finance leases (hire purchase). Receivables from finance
leases include forfaited lease payments. The liabilities to banks corresponding to these
forfaited payments are reported on a non-netted basis.
Significant equity investments have been consolidated under the equity method. Their
valuation is based on a translation of their pro-rata stockholders‘ equity at the closing rate.
The cost of leased assets arising from leases originated during the reporting year is depreciated on a straight-line basis over the term of the lease to the assets‘ estimated residual value. Where necessary, the book value of equipment is written down to bring it into
line with its lower market value. Write-downs are largely the result of bankruptcies and, to
a lesser extent, reflect leases whose outstanding lease payments plus their anticipated
remarketing proceeds do not cover their current book value. This includes a small amount
of equipment that is intended to be leased and is sold to banks in France for funding purposes. These sale and purchase agreements usually stipulate an obligation to repurchase
the equipment at the end of the lease term at a predetermined price of between roughly
1 percent and 5 percent of its acquisition cost. In 2011 this did not incur any net expenses
that would have necessitated setting aside a provision for impending losses5.
Intangible assets are reported at historical cost less amortization. They are amortized over
an estimated useful life of between one and ten years.
Property, plant and equipment is shown at cost less depreciation.
Land is recognized at cost. Buildings, leasehold improvements and leases on buildings
are depreciated on a straight-line basis over a period of between ten and 50 years. Exterior building facilities are depreciated on a straight-line basis over a period of between 15
and 20 years. Depreciation is charged over the assets‘ estimated useful life and does not
include any residual values. As in the previous year, no assets were written down during
the year under review.
Property, plant and equipment acquired during the year is depreciated pro rata temporis;
low-value assets such as office furniture and equipment are written off in the year they are
acquired. The depreciation rates applied to office furniture and equipment are based on a
useful life of between one and ten years. No assets were written down during the year under review (2010: € 119 thousand).
[6] Accounting policies
Cash is reported at its nominal amount
Primary financial instruments are initially recognized at their fair value on the transaction
date (transaction price), i.e. the amount of cash paid or received. Once they have already
been recognized, primary instruments are carried at their amortized cost. Primary financial
instruments mainly comprise amounts due from banks, loans to customers, equity investments, liabilities to banks, and customer deposits.
4
60
Translated at the middle spot exchange rate on the balance sheet date; stockholders‘ equity translated at the
exchange rate prevailing on December 31, 2009 as the fictive historical rate
The statement of changes in fixed assets is shown in an attachment to the notes to the
consolidated financial statements.
Other assets are reported at their nominal amount. Specific valuation allowances are set
aside to cover default risks. Assets denominated in foreign currency are translated at the
closing rate.
Prepaid expenses are recognized for payments made during the reporting year in respect
of expenses that fall due in the following year.
5
Section 249 (1) sentence 2 HGB
61
3 notes to the consolidated financial statements
Liabilities are shown at the amounts required to settle them. Liabilities denominated in
foreign currency are reported at the closing rate.
3 notes to the consolidated financial statements
Notes to Individual Balance Sheet Items
[7] Cash in the bank
Derivatives (interest-rate swaps) are recognized at their fair value unless they form part
of hedges.
Cash in the bank fall due as follows (in € 000‘s):
Deferred income includes forfaited lease income after the balance sheet date, advance lease
payments received and sliding-scale lease payments. Advance lease payments received
and sliding-scale lease payments are recognized on a straight-line basis over the term of
the lease. Forfaited lease income is recognized over the respective period.
in TEUR
Reserves are set aside to cover pension obligations and taxes; provisions are recognized
for contingent liabilities and leasing default risks.
more than three months, up to one year
Pension reserves are valued using actuarial calculations based on the entry-age normal
method in accordance with section 6a of the German Income Tax Act (EStG) and a discount
rate of 6 percent. The 2005 G Heubeck mortality tables form the basis for these calculations. Because they are protected from the claims of all other creditors and are used solely
to settle liabilities arising from pension obligations, receivables from reinsurance policies
are offset against the corresponding pension reserves in accordance with section 246 (2)
sentence 2 HGB. Any surplus plan assets are reported as „excess of plan assets over pension liabilities”.
All other provisions and reserves are measured in such a way that they make appropriate
and adequate provision for all identifiable risks and obligations in accordance with prudent business practice. Provisions and reserves with residual periods of more than one
year are discounted at the rate of 5.5 percent. In departure from section 253 (2) HGB these
provisions and reserves are not discounted at the previous fiscal years‘ average market
interest rate corresponding to their residual periods. This practice has had no material impact on the CHG-MERIDIAN Group‘s net assets, financial position or results of operations.
The notional value of treasury shares is deducted from subscribed capital on the face of the
balance sheet. The difference between the amount deducted from subscribed capital and
the treasury shares‘ net purchase price has been offset against freely available reserves.
The amounts allocated to the STAR program and recognized as other operating expenses
in 2010 were shown as staff expenses (wages and salaries) in 2011. The effect of this reclassification amounted to € 3.124 million in the year under review (2010: € 2.391 million).
The figures relating to 2010 have been restated accordingly.
Cash in the bank
on demand
Dec. 31, 11
Dec. 31, 10
100,348
113,528
93,659
82,301
5,689
30,066
0
155
1,000
1,006
0
0
Dec. 31, 11
Dec. 31, 10
200,631
136,840
up to three months
54,187
36,860
more than three months, up to one year
48,429
50,860
more than one year, up to five years
98,008
49,069
more than five years
7
51
undefined maturity
0
0
up to three months
more than one year, up to five years
more than five years
[8] Loans to customers
Loans to customers fall due as follows (in € 000‘s):
in TEUR
Loans to customers
Loans to customers include a loan of € 18.025 million (2010: € 12.209 million) to
CHG-EI Camino S.A.P.I. de C.V., Mexico City (Mexico).
[9] Equity investments
Equity investments mainly comprise the direct and indirect 50 percent shareholding in
CHG-EI Camino S.A.P.I. de C.V., which is recognized under the equity method in the consolidated financial statements. The book value of this equity investment amounted to
€ 15.319 million at the balance sheet date.
The equity investments in Stadtmarketing Weingarten GmbH, Weingarten (€ 0.35 thousand), and in ITMS Luxembourg S.A., Luxembourg (€ 11 thousand), are recognized at amortized cost in the consolidated financial statements.
62
63
3 notes to the consolidated financial statements
3 notes to the consolidated financial statements
[10] Leased assets
[15] Liabilities to banks
Leased assets reported at the balance sheet date amounted to € 1,097.736 million (2010:
€ 901.742 million) at their residual value and € 2,511.245 million (2010: € 2,287.185 million) at historical cost.
The table below shows liabilities to banks broken down by contractual maturity period
(in € 000‘s).
A small number of lease originations are earmarked for sale to banks. The acquisition cost
of this equipment is not depreciated.
[11] Property, plant and equipment
The table below shows a breakdown of property, plant and equipment (in € 000‘s).
in TEUR
Dec. 31, 11
Dec. 31, 10
Property, plant and equipment
29,504
28,479
Land and buildings
21,984
23,144
Office furniture and equipment
5,696
5,032
Assets under construction
1,824
303
in TEUR
Liabilities to banks
Dec. 31, 11
Dec. 31, 10
278,708
181,682
on demand
10,536
14,993
up to three months
52,178
20,299
more than three months, up to one year
68,859
52,433
more than one year, up to five years
146,119
91,352
1,016
2,605
more than five years
Receivables from finance leases have not been netted with non-recourse loans raised for
funding purposes. These liabilities, whose repayment is linked to the lessees‘ payments,
are reported as liabilities to banks of € 153.015 million (2010: € 70.159 million).
Land and buildings essentially relate to the land of the Company‘s site in Weingarten, which
is recognized at cost, and to the Company‘s head office building, which is depreciated on
a straight-line basis over 25 years
Assets under construction mainly comprise the cost of building a data center security room
at CML Services GmbH (€ 1.595 million).
[12] Other assets
The land of the Company‘s site in Weingarten and the building located thereon serve as
collateral specifically in respect of its liabilities to banks. € 8.705 million (2010: € 10.226
million) of these liabilities is secured by mortgages.
[16] Customer deposits
Customer deposits fall due as follows (in € 000‘s):
Customer deposits
Other assets essentially consist of VAT refund entitlements and other tax assets totaling
€ 31.827 million (2010: € 21.088 million) as well as anticipated deferred lease payments
of € 3.280 million (2010: € 6.532 million).
Dec. 31, 10
7,697
8,439
sundry liabilities
7,646
8.390
up to three months
on demand
0
0
more than three months, up to one year
0
0
51
49
0
0
more than one year, up to five years
[13] Prepaid expenses
Dec. 31, 11
more than five years
In 2011 this item related to prepaid invoices.
[14] Excess of plan assets over pension liabilities
The customer deposits shown consist solely of clients‘ advance payments.
The table below shows how the excess of plan assets over pension liabilities is calculated (in € 000‘s).
in TEUR
Excess of plan assets over pension liabilities
Dec. 31, 11
Dec. 31, 10
21
47
Fair value of plan assets
101
164
Present value of the defined benefit obligation
80
117
The fair value of plan assets is determined by expert appraisals.
64
65
3 notes to the consolidated financial statements
3 notes to the consolidated financial statements
[17] Debenture loans
[21] Other provisions and reserves
Debenture loans fall due as follows (in € 000‘s):
The main components of other provisions and reserves are as follows (in € 000‘s):
in TEUR
Debenture loans
Dec. 31, 11
Dec. 31, 10
12,033
12,018
33
18
0
0
12,000
12,000
0
0
debt securities issued
up to three months
more than three months, up to one year
more than one year, up to five years
more than five years
in TEUR
Outstanding invoices
Staff expenses (including sales commissions)
CHG-MERIDIAN AG issued a floating-rate bond with a par value of € 12.000 million in 2008.
The bond issue is divided into 240 equal-ranking bearer bonds with transfer restrictions,
each with a par value of € 50 thousand. The bond‘s term to maturity runs for five years from
September 1, 2008 to August 31, 2013. The benchmark interest rate is three-month Euribor.
The bondholders are joint owners of the global certificate. Although the bond is eligible
for a stock market listing, it has not been listed. Any stock market listing would require the
consent of CHG-MERIDIAN AG; there are no plans for any such listing. The interest of € 33
thousand shown falls due for payment in the following year.
Dec. 31, 11
Dec. 31, 10
21,500
21,559
8,789
7,032
[22] Stockholders‘ equity
Changes in the CHG-MERIDIAN Group‘s stockholders‘ equity and the reconciliation of net
income to the profit for the period attributable to the Group are shown in the consolidated
statement of changes in stockholders‘ equity.
The Annual General Meeting held on July 18, 2011 voted to increase the parent company‘s
share capital from € 40.0 million to € 50.0 million. The Company increased its share capital
by converting € 10.0 million of the amount transferred to the other retained earnings as a
result of the Annual General Meeting resolution on the appropriation of profit for the 2010
fiscal year. The Annual General Meeting held on July 18, 2011 also voted to retire 2,000,000
of the Company‘s own no-par-value shares after the share capital had been increased. The
subscribed capital of CHG-MERIDIAN AG consisted of 48,000,000 no-par-value shares at
the balance sheet date.
[18] Other liabilities
[23] Foreign currency
Other liabilities totaling € 127.524 million (2010: € 122.008 million) essentially comprised
trade payables of € 97.355 million (2010: € 100.137 million). These trade payables largely
related to obligations arising from the purchase of computer hardware and software from
manufacturers and systems houses and to sale-and-leaseback transactions with lessees.
This line item also includes tax liabilities of € 9.536 million (2010: € 8.393 million) and
accounts receivable with credit balances of € 8.118 million (2010: € 5.011 million).
The table below shows the amounts of assets and liabilities translated from foreign currencies (€ in 000‘s).
in TEUR
Dec. 31, 11
Dec. 31, 10
Assets
299,240
221,748
Liabilities
237,696
158,702
[19] Deferred income
[24] Hedge accounting
Deferred income includes the present value of lease income forfaited without recourse that
is attributable to the leased assets reported. To a lesser extent it also includes significant
advance lease payments and sliding-scale lease payments, the timing of whose proceeds
differs significantly from that of the corresponding expenses.
CHG-MERIDIAN AG uses derivatives (interest-rate and currency swaps) solely to hedge the
pertinent market risks. These derivatives are standardized instruments that are traded directly between market participants rather than being traded on an exchange.
[20] Deferred taxes
Deferred tax assets and liabilities have been netted in the provisions and reserves for deferred taxes. There are deferred tax assets of € 7.789 million (2010: € 6.015 million) and
deferred tax liabilities of € 18.191 million (2010: € 4.756 million).
The fair value of the swaps is determined by their counterparties. This is the carrying amount
determined at the balance sheet date at which it would be possible to unwind the position concerned or execute an offsetting transaction. The table below shows the relevant
amounts for each category (in € 000‘s).
in TEUR
Dec. 31, 11
Interest-rate risk
Book value of the hedged item
Fair value of the derivative
12,022
-300
Currency risk
Book value of the hedged items
Fair value of the derivatives
66
17,698
544
67
3 notes to the consolidated financial statements
3 notes to the consolidated financial statements
An interest-rate swap has been used to hedge the interest-rate risk arising from the bond.
The variable payments to be made under the derivative correspond to the variable interest rate on the bond and to its par value. The bond is reported on the balance sheet as a
debenture loan.
[30] Commission income
Currency risks have been hedged by several cross-currency swaps, which are presented as
perfect hedges in these consolidated financial statements. CHG-MERIDIAN AG has hedged
three loans of MXN 100 million each to CHG-El Camino S.A.P.I. de C.V., Mexico City (Mexico),
which are reported as loans to customers. Two leasing arrangements, under which the customers concerned are being invoiced in US dollars, have also been hedged. The inventories
underlying the leasing arrangements are reported as leased assets.
This largely consists of revenue earned from TESMA© Online, which is offered as an asset
management application for clients. To a lesser extent this line item also includes income
from the invoicing of transportation costs as well as revenue earned from data erasure and
GarantiePlus services.
There is a critical terms match for all hedges because the transactions used have matching maturities and notional amounts.
The table below shows the main components of other operating income (in € 000‘s).
[25] Subordinated assets
The balance sheet line items below contain subordinated assets (in € 000‘s).
in TEUR
Dec. 31, 11
Dec. 31, 10
Cash in the bank
1,000
1,000
Loans to customers
4,171
4,088
Notes to Individual Items of the Profit and Loss Statement
Commission income comprises income from the CHG-MERIDIAN Group‘s services, which
are geared to the product lifecycles of its leased assets.
[31] Other operating income
in TEUR
2011
2010
Income from the release of provisions and reserves
1,334
1,354
Income from overpayments
375
50
Income from leased assets
344
380
34
105
Income from disposal of property, plant and equipment
[32] General administrative expenses – other administrative expenses
The table below shows the main components of other administrative expenses (in € 000‘s).
[26] Income from leasing
in TEUR
2011
2010
Rent and other office space costs
4,193
3,885
Income from leasing essentially consists of revenue received from lease payments and proceeds from the remarketing of leased equipment and the sale of goods.
Auditing and consultancy costs
1,991
3,201
Customer-related events and entertainment expenses
1,897
1,635
Other personnel cost
1,721
1,658
[27] Expenses from leasing
Expenses from leasing include the cost of purchasing leased equipment sold to banks (novated leases), the acquisition cost of traded equipment and the residual values resulting
from disposals of leased assets.
Car-related expenses
1,508
1,133
Travel expenses
1,472
1,467
Communication costs and postage
1,115
1,131
[28] Interest income from lending and money-market transactions
Interest income from lending and money-market transactions essentially comprises income
of € 7.908 million from exchange differences (2010: € 4.136 million) and interest income
of € 6.165 million from finance leases (2010: € 4.130 million).
[29] Interest expense
Interest expense largely consists of the cost of funding the CHG-MERIDIAN Group‘s leasing operations (€ 39.416 million in 2011 compared with € 39.878 million in 2010) and
ex-penses of € 6.104 million arising from exchange differences (2010: € 2.899 million).
68
69
3 notes to the consolidated financial statements
3 notes to the consolidated financial statements
Auditing and consultancy costs include the following services rendered by the auditors
KPMG, which were used by companies in the CHG-MERIDIAN Group (in € 000‘s):
in TEUR
2011
2010
296
301
Expenses for other attestation services
40
5
Expenses for other services
28
510
Expenses for tax advisory
20
25
384
841
Expenses for year-end auditing
Total
The auditing expenses incurred related to the cost of auditing the CHG-MERIDIAN Group‘s
consolidated financial statements as well as the legally required audits of the singleentity financial statements of CHG-MERIDIAN AG and some of its consolidated subsidiaries.
Total fees of € 174 thousand were paid to have CHG-MERIDIAN AG‘s single-entity and consolidated financial statements audited.
[35] Income broken down by geographical market
The table below gives a geographical breakdown of total income from leasing, interest
income from lending and money-market transactions, commission income and other operating income (in € 000‘s).
in TEUR
2011
2010
Germany
491,206
491,712
Europe (excl. Germany)
246,972
237,365
44,328
10,096
782,506
739,173
Americas
Total
[36] Contingent liabilities and other financial commitments
Details of contingent liabilities (section 340a (2) HGB and section 26 RechKredV) and other
financial commitments are provided below.
[33] Depreciation, amortization and write-downs of leased assets
Contingent liabilities
Depreciation, amortization and write-downs of leased assets comprise depreciation and
amortization of € 483.494 million (2010: € 476.098 million) and write-downs of € 1.339
million (2010: € 4.666 million). The write-downs largely arise from bankruptcies. Where
leases have been forfaited, these write-downs are partly offset by leasing income received
because obligations to banks no longer applied.
[34] Net income from investments accounted for using the equity method
The pro-rata net income or loss reported by CHG-El Camino S.A.P.I. de C.V., Mexico City
(Mexico), which is accounted for under the equity method, is recognized in the consolidated
profit and loss statement as „net income from investments accounted for using the equity
method”. Exchange differences arising from application of the equity method are recognized as „stockholders‘ equity difference arising from currency translation” in proportion
to the CHG-MERIDIAN Group‘s share of the company‘s stockholders‘ equity.
The pledging of leased assets as collateral to forfaiting and lending banks gives rise to
contingent liabilities of € 1,129.603 million (net) (2010: € 964.809 million) as security for
the legal validity and freedom from objection of the receivables sold.
There are also guaranteed loans amounting to € 406 thousand (2010: € 401 thousand),
which largely relate to deposits for rent.
[37] Other financial commitments
The table below gives a breakdown of future commitments under long-term agreements
(in € 000‘s).
in TEUR
Repurchase obligations under leases
Dec. 31, 11
Dec. 31, 10
1,592
2,232
11,597
12,131
569
290
Future obligations under leases on
offices
company cars
other commitments
Total
0
33
13,758
14,686
Future lease obligations in respect of offices stem largely from the lease on the new Technology and Service Center in Gross-Gerau. An annual rent of € 789 thousand has been
agreed. The lease commenced on January 1, 2011 and runs for ten years. The lease on certain parts of the Technology and Service Center can be terminated after just seven years.
70
71
3 notes to the consolidated financial statements
3 notes to the consolidated financial statements
The table below shows the maturity structure of these financial commitments at the balance sheet date (in € 000‘s).
in TEUR
up to one year
more than one year, up to five years
more than five years
Total
Dec. 31, 11
Dec. 31, 10
2,596
2,694
7,341
8,445
3,821
3,547
13,758
14,686
An average of 612 people were employed during the year under review (2010: 587).
Part-time staff are aggregated on a pro-rata basis.
The table below shows the average number of employees broken down by function.
2011
2010
Administration
416
395
Sales
176
170
592
565
20
22
612
587
Total
Jürgen Gelf, Palm Beach, Australia, Kaufmann (chairman)
Dr. Alexander Lienau, Munich, attorney & tax accountant (deputy)
Frank Gelf, Berg, Kaufmann
Susanne Gelf-Kapler, Berg, Kauffrau (until July 18, 2011)
Sibylle Broß-Buraty, Aulendorf, secretary (until July 18, 2011)
Bernhard Enste, Essen, Diplom-Kaufmann (until July 18, 2011).
The total remuneration paid to the Supervisory Board in 2011 amounted to € 413 thousand
(2010: € 679 thousand).
[38] Employees
Trainees
The members of the Supervisory Board of CHG-MERIDIAN AG in 2011 were:
Weingarten, March 1, 2012
CHG-MERIDIAN
Deutsche Computer Leasing AG
Jürgen Mossakowski
Peter Horne
Joachim Schulz Those employed in sales functions include field sales staff, sales trainees and staff working in brokerage.
[39] Additional information about the Management Board and Supervisory Board
The members of the Management Board of CHG-MERIDIAN AG in 2011 were:
• Jürgen Mossakowski, Ravensburg, Diplom-Kaufmann (chairman)
• Peter Horne, Reute, Diplom-Betriebswirt (BA)
• Joachim Schulz, Ravensburg, Diplom-Kaufmann
The total remuneration paid to the Management Board in 2011 amounted to € 4.318 million
(2010: € 6.206 million). One member of the Management Board was granted 480,000
options on the Company‘s shares as part of his remuneration. The market value of these
stock options as at December 31, 2011 was € 2.39 per share.
72
73
3 notes to the consolidated financial statements > Consolidated Statement of Changes in Fixed Assets
3 notes to the consolidated financial statements > Consolidated Statement of Changes in Fixed Assets
Consolidated Statement of Changes in Fixed Assets
Acquisition Cost
1.
b) investments accounted for at cost
b) prepayments
15,872
1,491
-1,557
0
0
15,806
487
0
0
0
11
0
0
0
0
11
0
0
0
0
15,883
1,491
-1,557
0
0
15,817
487
0
0
0
2,287,185
699,295
2,736
-36
477,935
2,511,245
1,385,443
0
2,543
1,171
1,173
0
173
48
2,469
970
0
88
68
0
0
0
156
0
1,259
1,241
0
173
48
2,625
970
33,073
181
5
0
0
33,259
9,929
0
3
0
0
21
36
Balance at
Jan. 1, 11
€ 000‘s
Reclassifications
€ 000‘s
Depreciation,
amortization and
write-downs in 2011
€ 000‘s
Disposals
€ 000‘s
Balance at
Dec. 31, 11
€ 000‘s
Balance at
Dec. 31, 11
€ 000‘s
Balance at
Dec. 31, 10
€ 000‘s
0
0
487
15,319
15,385
0
0
0
11
11
0
0
487
15,330
15,396
-36
484,833
459,274
1,413,509
1,097,736
901,742
0
0
275
35
1,210
1,259
201
0
0
0
0
0
0
156
88
0
0
0
275
35
1,210
1,415
289
1,343
0
11,275
21,984
23,144
1,790
877
9,710
5,696
5,032
Additions
€ 000‘s
Property, plant and equipment
a) land and buildings
b) office furniture and equipment
c) assets under construction
74
Disposals
€ 000‘s
Balance at
Dec. 31, 11
€ 000‘s
Intangible assets
a) software
4.
Additions
€ 000‘s
Reclassifications
€ 000‘s
Leased assets
Leased equipment
3.
Currency
translation
differences
€ 000‘s
Currency
translation
differences
€ 000‘s
Balance at
Jan. 1, 11
€ 000‘s
Book Value
Equity investments
a) investments accounted for using
the equity method
2.
Cumulative Depreciation, Amortization and Write-Downs
13,772
2,589
18
36
1,009
15,406
8,740
303
1,694
0
-173
0
1,824
0
0
0
0
0
0
0
1,824
303
47,148
4,464
23
-137
1,009
50,489
18,669
0
24
36
3,133
877
20,985
29,504
28,479
2,351,475
706,491
1,202
0
478,992
2,580,176
1,405,569
0
2,567
0
488,241
460,186
1,436,191
1,143,985
945,906
75
4auditor‘s report
Moscow, Russia
Geographical coordinates: 55° 45' 0" north, 37° 37' 0" east
Area: 1,100 km2 Population: 11.5 million Population density: 10,454 inhabitants/km2
Gross domestic product (GDP): € 240 billion/$US 320 billion
Resident companies: Gazprom, Lukoil, Rosneft Oil, TNK-BP, Sberbank, Sistema,
Surgutneftegas, Intel, Hewlett-Packard, Softline International, Metro, RUSAL,
Boeing, Microsoft, Siemens, Bosch
Growth sectors: Energy, biotechnology, nuclear technology,
IT, telecommunications, commerce
Innovation potential: 80 universities with approx. 250,000 students
Rollback and exchange on one workday
Branch
Consumer goods
Employees More than 170,000, of these 7,000 in Russia
Turnover More than € 46 billion/more than $US 61 billion
Rollback of leased IT clients on only one day, as the modernization
of the portfolio must take place on the same day in order to ensure
uninterrupted work capability; observance of a schedule for inventory,
Tasks packaging, transport, test phase and resale
Planning of the rollback and organization of several project teams with
a run-up of four weeks. Complete processing and communication via
Solutions CHG-MERIDIAN as direct and only project manager for the customer
Services Consultation, organization and execution
Products used End of Lifecycle Services, Re-Marketing of used and returned assets
The successful rollback of all leased IT clients at various locations in
Russia only required a single day. The resale of all clients already took
Special features place on the following day
76
77
4 auditor‘s report We have rendered our unqualified audit opinion as follows:
„Auditor‘s report
We have audited the consolidated financial statements prepared by CHG-MERIDIAN Deutsche
Computer Leasing AG, Weingarten, comprising the balance sheet, the income statement, statement of changes in equity, cash flow statement and the notes to the consolidated financial
statements, together with the group management report for the business year from January 1 to
December 31, 2011. The preparation of the consolidated financial statements and the group management report in accordance with German commercial law are the responsibility of the parent company‘s management. Our responsibility is to express an opinion on the consolidated
financial statements and on the group management report based on our audit.
We conducted our audit of the consolidated financial statements in accordance with § 317 HGB
[Handelsgesetzbuch „German Commercial Code“] and German generally accepted standards
for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute
of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the
audit such that misstatements materially affecting the presentation of the net assets, financial
position and results of operations in the consolidated financial statements in accordance with
German principles of proper accounting and in the group management report are detected with
reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account
in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated financial
statements and the group management report are examined primarily on a test basis within
the framework of the audit. The audit includes assessing the annual financial statements of
those entities included in consolidation, the determination of entities to be included in consolidation, the accounting and consolidation principles used and significant estimates made
by management, as well as evaluating the overall presentation of the consolidated financial
statements and group management report. We believe that our audit provides a reasonable
basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with the legal requirements and give a true and fair view of the net assets, financial position and results of operations of the Group in accordance with these requirements. The group
management report is consistent with the consolidated financial statements and as a whole
provides a suitable view of the Group’s position and suitably presents the opportunities and
risks of future development.“
Munich, March 28, 2012
KPMG AG
Wirtschaftsprüfungsgesellschaft
Pastor
Wirtschaftsprüfer
78
In 2008, about one billion computers were in use
around the world. This number is predicted to
double by 2014.
In 2011, 25 percent of the world‘s internet users
were located in China.
At the end of 2011, the number of cellphone contracts
in existence was around six billion, at a time when
the entire global population was about seven billion.
Global revenue from IT services was around US$ 800
billion in 2010.
In 2010, the world‘s ten biggest PC manufacturers
invested around US$ 23 billion in research and
development.
Göller
Wirtschaftsprüfer
79
5single-entity financial statements
St. Gallen, Switzerland
CHG-meridian deutsche computer leasing ag
Significant cost reduction
through increased transparency
Branch
Finance
Employees More than 1,000
Turnover € 396 million/$US 527 million
IT portfolio 215 output clients
Renewal of 215 output clients with the goals of reducing running costs and a
simultaneous increase in user satisfaction; the modernization and reduction
of the output client pool allow significant savings potential for running costs
and acquisition. To this purpose, maximum transparency with respect to proTasks curement costs and continuing operations must be ensured
Transparent possibilities for comparison of manufacturer offers and consultation for the definition of tendering provisions. Precise cost center invoicing
Solutions fulfils the accounting guidelines
Optimization of the output portfolio on the basis of transparent financing
Services and invoicing models
Products used „Rent+click” leasing model
Geographical coordinates: 47° 25' 24" north, 9° 22' 38" east
Area: 39 km2
Population: 73,000
Population density 1,870 inhabitants/km2
Resident companies: Helvetia Versicherungen, St. Galler Kantonalbank,
Raiffeisen Schweiz, Vadian Bank, Abacus Research AG, SAP, Stihl
Growth sectors: Commerce, tourism, culture and creative economy,
mechanical and automotive engineering, services, health
Innovation
potential: 3 Universities with more than 10,000 students
80
The required transparency resulted in better procurement conditions and
sustainable savings in running operations were achieved through a reduction
Special features from 215 to 185 modern output clients and a simultaneous volume reduction
81
>
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Business Performance
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Business Performance
5.1 Business Performance
The table below shows the key figures in CHG-MERIDIAN AG’s profit and loss statement
(in € 000‘s).
Brief outline of CHG-MERIDIAN AG’s performance
in TEUR
The parent company CHG-MERIDIAN Deutsche Computer Leasing AG, Weingarten (referred
to below as ‘CHG-MERIDIAN AG’), is the biggest company in the Group. Although the proportion of net income contributed by the subsidiaries has risen steadily in recent years,
CHG-MERIDIAN AG continues to have a material influence on the Group’s performance. 52.0
percent of total lease origination was generated in the German market and, for this reason,
a separate report on the performance of CHG-MERIDIAN AG is given below.
2010
Change %
97,078
120,356
-19.3
-23,863
-27,811
-14.2
Key figures from profit and loss statement
Net income from leasing
Net interest expense
CHG-MERIDIAN AG continued to strengthen its leading position in the German market in
2011. Coupled with lease originations in excess of the previous year’s volumes, its conservative financing policy and its high-quality leasing portfolio with low residual values helped
the Company to improve its financial situation.
Market position
According to its management accounts, CHG-MERIDIAN AG increased the volume of leases
that it originated by 29.6 percent year-on-year to € 446.5 million in 2011. The reason for
this increase was that the encouraging trend that had started in the last month of 2010
continued in 2011 and demonstrated that, although delayed, the recovery following the
financial crisis had spread to the IT leasing sector.
Leased assets
CHG-MERIDIAN AG generated a profit of € 34.4 million from ordinary activities in 2011 (2010:
€ 55.8 million). This decrease was largely attributable to a decline in lease payments from
renewals, lower revenue from disposals, and higher depreciation, amortization, and write-downs of leased assets. The rise in depreciation, amortization, and write-downs stemmed from the growth in the volume of lease originations and from the fact that the depreciation period for computer screens, printers, desktop PCs, and laptops was changed to
three years in 2011.
Profit from
ordinary activities
CHG-MERIDIAN AG witnessed a rise in customer insolvencies in 2009 and 2010 as a result
of the financial crisis. As expected, the volume of insolvencies in Germany last year fell
back to a very small proportion of the total value of business. The effective default last year
amounted to € 1.007 million as at December 31, 2011 (December 31, 2010: € 3.796 million).
The number of insolvencies declined from 21 in 2010 to 18 in 2011.
2011
Profit from ordinary activities
34,415
55,762
-38.3
Net income
23,115
39,280
-41.2
Market Trends
Trends in the German leasing market
The results of the latest ifo investment test suggest that capital expenditure by leasing
companies grew significantly in 2011 after rising only marginally in 2010. Equipment lease
originations are expected to have grown at an average rate of 11.8 percent during the year,
taking the total volume to approximately € 46 billion1. The equipment leasing ratio is forecast to have risen from 20.7 percent in 2010 to 21.4 percent in 20112.
Trends in
equipment leasing
The findings of the trend surveys conducted by the Federation of German Leasing Companies (BDL) also reveal that German industry’s pronounced willingness to invest is reflected in the consistently high growth rates achieved by leasing as an alternative form of
capital spending.
The rapid increase in corporate capital expenditure, which had begun back in late 2010,
reached the leasing sector after the usual delay, thereby boosting the volume of lease originations – especially in the first nine months of 2011 (as confirmed by the ifo Institute’s
surveys). The boom in capital expenditure was also supported by the fact that finance was
mostly available without too much difficulty and remained inexpensive. The investment
indicator used by ifo and the BDL points to a nominal increase of approximately 6 percent
in spending on capital equipment in 2012, including a sharp rise in the first quarter.
The volume of equipment lease originations grew by almost 14 percent in the first three quarters of 2011, whereas it had contracted by 2 percent in the corresponding period of 2010.
IT market trends
Analysts at CIO reckon that the German IT market as a whole will grow by 3.3 percent to
around €92 billion in 2012. The key driver here will be IT services, which already account
for half of the German market. Analysts at Experton are forecasting that this segment will
increase by more than 5 percent, although in the ailing hardware sector they expect to see
growth of only 0.5 percent. Like hardware, software accounts for roughly one quarter of the
total German IT market. Experton is predicting growth of only 2.5 percent for this segment.
Consequently, the B2B software market would amount to €23.9 billion in 2012.
1
2
3
82
See ifo Schnelldienst journal, 1/2012
See Städtler, Arno (2011): Leasing zurück auf der Überholspur (Leasing back in the fast lane) in ifo
Schnelldienst journal, 23/2011
See Städtler, Arno (2011): Leasing zurück auf der Überholspur (Leasing back in the fast lane) in ifo
Schnelldienst journal, 23/2011
83
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Business Performance
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Business Performance
Germany’s automotiveIT magazine believes that new devices with mobile internet access
have the greatest growth potential. According to a survey conducted by BITKOM (the German Federal Association for Information Technology, Telecommunications and New Media),
2.1 million tablet computers are likely to have been sold in Germany in 2011, which would
represent a year-on-year increase of 162 percent. Market research institute Gartner reckons
that global sales of personal computers rose by only 0.5 percent in 2011. PC manufacturers are being hit by the weak economies of the United States and western Europe and by
the growing competition from mobile devices such as smartphones and tablets. The telecommunications industry grew by a paltry 0.4 percent in Germany to €66 billion in 2011.
IT hardware
Market researchers at IDC expect sales of business software to grow in 2012. They estimate
that companies invested some US$ 37.9 billion in enterprise resource management (ERM)
and enterprise resource planning (ERP) software in 2011, which was 10 percent more than
in 2010. Growth in this fiercely contested market is forecast to fall back to 2010’s level of
6.3 percent in 2012
Software
A study conducted by IDC comes to the conclusion that competition among IT service providers is becoming increasingly strong. Although medium-sized companies are similar to
major corporations in terms of their needs, their organizational structures are typical of
SMEs. The personal touch and suitably customized advice are key for the relevant decision-makers. At the same time, companies of this size usually have production sites or sales
offices abroad, which creates demand for international support and IT service offerings.
IT services
CHG-MERIDIAN AG generated a profit from ordinary activities of € 34.4 million in 2011
(2010: € 55.8 million).
Income from leasing was broken down as follows (in € 000‘s):
• The average minimum term of the leases originated in 2011 decreased slightly from
42.1 months to 41.9 months. By contrast, the average effective term of the leases that
ended in 2011 rose as a result of the financial crisis.
Change %
433,877
438,999
-1.2
Revenue from disposals
23,236
29,993
-22.5
Revenue from brokerage
9,883
9,714
1.7
Other leasing income
1,389
3,132
-55.7
468,385
481,838
-2.8
Income from leasing fell by € 13.5 million year on year to € 468.4 million in 2011. Revenue
from disposals decreased by € 6.8 million year on year. This was attributable to the extended useful lives of the equipment sold both directly and from the warehouse. Income
arising from the discontinuation of payment obligations declined by € 2.1 million. This decrease related to payment obligations which, as a result of customer insolvencies, were
no longer released pro rata temporis. Current revenue from leasing fell from € 439.0 million to € 433.9 million, which stemmed primarily from the lower level of lease renewals.
Expenses from leasing rose by € 0.1 million to € 16.5 million, in 2011. The lower amount of
disposals was almost offset by the higher cost of IT equipment brokerage.
Leased assets
The rise in depreciation, amortization, and write-downs of leased assets stemmed from
the growth in the volume of lease originations and from application of the prudence principle, as a result of which the depreciation period for computer screens, printers, desktop
PCs, and laptops was changed to three years in 2011.
Despite the very high absolute increase in the volume of leases originated for existing customers, the proportion of business transacted with new customers was raised from 19.4
percent to 23.5 percent in 2011. The acquisition of new clients enables the CHG-MERIDIAN
Group to continually renew its portfolio and is vital to its lasting success. Its long-term objective is therefore to win a consistent level of new clients.
• A total of 8,688 leases were originated (2010: 7,731).
2010
Total
Lease originations
The leases originated in 2011 are broken down as follows:
2011
Revenue from leasing
Financial Performance of CHG-MERIDIAN AG
The volume of lease originations, which is the key performance indicator of the Company’s
future profitability, amounted to € 446.5 million in 2011, which was an increase of € 102.1
million, or 29.6 percent, compared with the previous year’s volume of € 344.4 million.
Results of operations
Profit from ordinary activities fell from € 55.8 million to € 34.4 million largely owing to the
lower income from leasing and the higher depreciation and write-downs of leased assets.
The lower revenue from disposals was attributable to lease renewals and the age of the
equipment sold.
Key performance indicators
for lease originations
Interest expense advanced by € 1.2 million year on year to € 34.2 million. Interest expense
for fixed-term liabilities actually fell by € 2.1 million to € 27.0 million. Interest expense
again included exchange-rate losses, which in 2011 amounted to € 5.6 million. Because
these losses are more than compensated for by the exchange-rate gains reported under
interest income, total net interest expense fell by € 3.9 million.
Taken together, the results of CHG-MERIDIAN AG’s operations were positive.
84
85
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Business Performance
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Business Performance
Funding
Net assets and financial position
The Company’s total assets amounted to € 1,011.2 million at the end of 2011 (December 31,
2010: € 896.4 million), which represents year-on-year growth of 12.8 percent.
The strongest growth in the assets shown on the balance sheet was attributable to leased
assets, which increased by € 85.5 million as a result of the larger volume of lease originations. Investments in affiliated companies rose by € 43.2 million; one of the main reasons
for this increase was that the share capital of CHG-MERIDIAN US Holding Ltd., Los Angeles (United States), was increased by € 30.7 million in support of its strategic growth objectives. The decrease in „cash in the bank- other claims” was connected with the higher
investments in affiliated companies.
Funding environment
CHG-MERIDIAN AG was not affected by funding difficulties either in 2009, at the time of
the crisis, or in the two subsequent years. Existing credit lines were extended and considerably increased. It was also possible to obtain new funding partners. This wide range of
funding sources meant that the CHG-MERIDIAN Group had sufficient funding lines available at all times in 2011.
Business relations
CHG-MERIDIAN AG’s efforts to enhance and broaden the stable, long-term relationships it
has with its funding partners – as well as to recruit new funding partners – contributed to
its success in maintaining a consistently high number of funding partners in 2011 that is
well above the industry average. Consequently, the loss of ING Lease as a partner in the
fourth quarter of 2011 and of KBC Lease in January 2012 can be compensated for without
causing any disruption because neither of these institutions was one of the Company’s
main funding partners. CHG-MERIDIAN AG has begun negotiations with individual funding
partners, which will result in new master agreements being signed in 2012. However, it will
only enter into new agreements if they add value for the Company.
The need for funding increased in line with the growth in lease originations. This trend is
reflected on the liabilities side of the balance sheet by the liabilities to banks with agreed
maturities and by deferred income. This illustrates the Company’s policy of stepping up its
use of loan-based funding for customers with excellent credit standings, thereby exploiting
synergies and margin potential.
In 2011, funding was sourced from 19 (2010: 22) different banking partners, which reflects
the fact that CHG-MERIDIAN AG is not reliant on individual banks.
The increase in deferred tax liabilities was mainly attributable to the tax depreciation
recognized on low-value assets, which in the HGB financial statements are depreciated
over their estimated useful life.
CHG-MERIDIAN AG increased its share capital by € 10.0 million in 2011 by converting other
retained earnings. Despite the fact that the Company earned net income of € 23.1 million,
its equity ratio fell by 0.4 percentage points to 12.1 percent owing to its strong growth in
2011. In addition, two million of the Company’s own shares were recalled and canceled.
However, this had no impact on its net assets or financial position because treasury shares
are already recognized as a negative line item within stockholders’ equity.
Although CHG-MERIDIAN AG has a solid base of stockholders’ equity, the equity ratio is not
particularly meaningful. As a lessor, CHG-MERIDIAN AG is required to report leased assets
that have been funded on a non-recourse basis, although the Company’s only obligation
in this type of transaction is to guarantee the existence of legally valid claims. At the same
time, the net present values of the lease receivables falling due after the balance sheet
date that have been sold on a non-recourse basis are reported under liabilities. These accounting principles result in balance sheet inflation which significantly reduces the ratio
of stockholders’ equity to total assets.
Overall, CHG-MERIDIAN AG is in a very healthy and sound financial position. In addition to
a strong free cash flow (€ 52.0 million) CHG-MERIDIAN AG also has substantial undrawn
credit lines available to enable it to grow further.
86
Roughly 51.2 percent (2010: 52.3 percent) of the total volume of funding raised was obtained from the three largest banking partners.
Funding structure
As in previous years, the Company’s funding structure was characterized by a high proportion of non-recourse financing (forfaiting). Based on the volume of non-recourse finance
of € 325.3 million (2010: € 272.2 million) that was disbursed in 2011, the forfaiting ratio
was around 72.9 percent last year compared with 79.3 percent in 2010. The forfaiting ratio is defined as the proportion of disbursed non-recourse finance to lease originations
during the year.
The fact that this ratio remains high reflects CHG-MERIDIAN AG’s unchanged principle
that most of its leases should be funded by its partners on a non-recourse basis. Funding
provided by the Company itself should take the form of bridging loans until non-recourse
finance becomes available. However, the Company is deliberately stepping up its loan-based
funding for customers with excellent credit standings and is therefore aiming to reduce
its forfaiting ratio to between 60 and 70 percent over the next few years. CHG-MERIDIAN AG
is looking to exploit significant synergies and margin potential by increasing its use of
loan-based finance. Consequently, part of the Company’s focus in Germany has been on obtaining further syndicated loans.
After a syndicated loan totaling € 25.0 million had been successfully arranged and provided
by LBBW in conjunction with six savings banks in 2009/2010, 2011 saw the structuring of a
second syndicated credit line in which ten savings banks are now involved. CHG-MERIDIAN
AG restricted the total amount of the loan to € 50.0 million during the structuring process
in order to ensure that the credit line could be mobilized promptly in 2011/2012. It was
encouraging to see that the savings banks’ interest extended beyond the credit line provided. LBBW’s share of the syndicate amounts to € 11.5 million. € 26.1 million was drawn
down in two tranches during the reporting year.
87
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Business Performance
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Business Performance
Skills training and
continuing professional
development
A further syndicate led by DZ BANK was arranged. DZ BANK managed to structure a syndicated loan for € 33.5 million in conjunction with twelve credit cooperatives. DZ BANK’s
share of the syndicated loan amounts to € 5.0 million. The first tranche of € 12.9 million
was disbursed in December 2011.
The Company signed a third syndicated loan agreement at the end of December 2011;
this syndicate is led by Bremer Landesbank. Bremer Landesbank approached five savings
banks which, along with the syndicate leader, each contributed € 5.0 million to the syndicated credit line. The first tranche is scheduled to be drawn down in the first half of 2012.
The total amount of € 113.5 million in new syndicated loans agreed in 2011 is proof positive that this product offers an attractive investment opportunity for German savings banks
and cooperatives, which have a surplus of deposits.
Given that total funding4 of € 402.8 million was obtained from banking partners in 2011
(2010: € 331.3 million) and that total leases amounting to € 446.5 million were originated
during the reporting year (2010: € 344.4 million), the proportion of leases funded externally
came to 90.2 percent (2010: 96.2 percent). The year-on-year decrease in the percentage
of externally funded leases was largely attributable to the fact that the Company’s strong
cash flow enabled it to fund its leases with a certain time lag, which meant that some of
its acquisition costs were funded from its own capital resources. The proportion of leases
funded externally remains very high, however, illustrating the considerable confidence and
trust that funding partners have in CHG-MERIDIAN AG. This is due to the high quality of
the Company’s customer portfolio and the fact that its default rates remain low compared
with the leasing sector as a whole.
Percentage of leases
funded externally
The headcount rose in virtually all business lines as a result of the growth generated by
CHG-MERIDIAN AG.
CHG-MERIDIAN AG also met its obligation as a responsible corporate citizen to provide
training and apprenticeships for young people. Four apprentices commenced their commercial and IT traineeships in 2011. Two DHBW students and three trainees who completed their studies/training in 2011 were offered jobs at CHG-MERIDIAN AG last year and
they now work in the IT/Organization, Internal Sales, and Sales departments. There were
a total of twelve people in traineeships and apprenticeships at CHG-MERIDIAN AG. The
Company also offered students and schoolchildren more internships in an international
setting, giving them the opportunity to translate theory into practice and explore their personal strengths and interests.
The year under review also saw CHG-MERIDIAN AG enter and win an award in the TOP JOB
competition to find the 100 best employers among Germany’s small and medium-sized
firms. The prize was presented by TOP JOB mentor Wolfgang Clement at the official awards
ceremony in Duisburg on January 26, 2012.
Companies looking to become a TOP JOB employer have to achieve excellent ratings in a
number of categories. The criteria assessed during the competition range from leadership
and dynamism to culture & communication, staff development & prospects, motivation,
entrepreneurship, and family friendliness. The results of this survey were largely based on
an online questionnaire sent to all members of staff in conjunction with information provided by HR employees about their work.
Human Resources
CHG-MERIDIAN AG employed 332 active members of staff as at December 31, 2011, which
was 22 more than at the end of the previous year (December 31, 2010: 310 people).
The CHG-MERIDIAN Group continued to give high priority to skills training and continuing professional development for its employees in 2011. The CHG-MERIDIAN Academy provides employees with CHG-specific knowledge and expertise, such as information about the Group’s
systems and processes. The Company continued to expand its extensive training program
and rolled it out to the foreign subsidiaries in 2011.
Human resources
Weingarten, February 6, 2012
CHG-MERIDIAN
Deutsche Computer Leasing AG
The new role of chief finance officer (CFO) was created at CHG-MERIDIAN AG in the fourth
quarter of 2011.
The total headcount in sales support units rose by eight, thereby illustrating the growing
importance of IT consulting for CHG-MERIDIAN AG.
Jürgen Mossakowski
Peter Horne
Joachim Schulz
The number of employees – including the members of the Management Board – who were
stockholders in the Company at the end of 2011 was 31 (December 31, 2010: 33).
4
88
The total amount disbursed includes both loan financing and non-recourse funding.
89
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Balance Sheet
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Balance Sheet
5.2 Balance Sheet
Assets
liabilities and stockholders‘ equity
Dec. 31, 11
€ 000‘s
1.
Cash
1.
Cash on hand
2.
Dec. 31, 11
€ 000‘s
Dec. 31, 10
€ 000‘s
13
123
9,205
b) with an agreed maturity
a) on demand
48,974
b) other claims
3,010
54,907
51,984
31,069
3.
Loans to customers
77,332
65,859
4.
Equity investments
1,862
1,862
5.
Investments in affiliated companies
119,237
76,065
6.
Leased assets
703,973
618,434
7.
Intangible assets
1,108
139
8.
Property, plant and equipment
26,186
26,755
9.
Other assets
28,154
19,874
10.
Prepaid expenses
1,350
1,251
11.
Excess of plan assets over
21
47
pension liabilities
Liabilities to banks
a) on demand
Cash in the bank
Dec. 31, 10
€ 000‘s
160,907
95,060
8,698
10,955
debt securities issued
12,033
12,018
4.
Other liabilities
63,770
72,191
5.
Deferred income
607,394
564,878
16,154
5,294
2.
151,702
7,463
Customer deposits
sundry liabilities
on demand
3.
Debenture loans
5a.
Deferred tax liabilities
6.
Provisions and reserves
a) for pensions
19
b) for taxes
50
c) other provisions and reserves
7.
29
19,676
58
19,745
16,233
Stockholders‘ equity
a) subscribed capital
minus notional value of treasury shares
50,000
40,000
-2,141
-3,447
issued capital
b) additional paid-in capital
47,859
36,553
618
618
c) retained earnings
ca) statutory reserve
cb) other retained earnings
d) net income
1,011,220
90
896,385
4,382
46,545
3,382
50,927
23,115
32,373
122,519
39,280
1,011,220
896,385
91
5 single-entity financial statements CHG-MERIDIAN deutsche computer leasing AG > Profit and Loss Statement
5.3 Profit and Loss Statement
2011
€ 000‘s
2010
€ 000‘s
468,385
481,838
-16,500
-16,421
1.
Income from leasing
2.
Expenses from leasing
3.
Interest income from
lending and money-market transactions
10,382
5,185
4.
Interest expense
-34,245
-32,996
5.
Current income from
investments in affiliated companies
61
61
6.
Commission income
9,941
10,654
7.
Commission expense
-3,303
-3,382
8.
Other operating income
1,920
1,251
9.
General administrative expenses
a) staff expenses
aa) wages and salaries
ab) social security contributions
and expenses for pensions
thereof for pensions:
€ 50 thousand (2010: € 85 thousand)
b) other administrative expenses
10.
-32,164
-2,942
-29,432
-35,106
-8,913
-2,893
-44,019
-9,794
Depreciation, amortization and
write downs of
a) leased assets
b) intangible assets and property,
plant and equipment
-354,807
-2,765
-345,061
-357,572
-2,760
-54
-113
-581
-375
34,415
55,762
11.
Other operating expenses
12.
Write-downs and value adjustments on claims
and additions to the provisions for leasing business
13.
Profit from ordinary activities
14.
Extraordinary income
0
74
15.
Extraordinary net income
0
74
16.
Income taxes
-11,212
-16,378
17.
Other taxes
(unless reported under line item 11)
-88
-178
18.
Net income
23,115
39,280
In 2011, 35 percent of the world population was using
the internet compared with just 18 percent in 2006.
In 2011, revenue in the global server market was
US$ 52.27 billion.
More than 350 million new computers were sold
in 2011.
The average lifetime of all printer hardware around
the world is now four years. By 2015 it is expected to
have risen to 4.2 years.
92
93
6headquarters, subsidiaries
Barcelona, Spain
Geographical coordinates: 41° 24' 0" north, 2° 10' 0" east
Area: 101 km2 Population: 1.6 million
Population density: 15,991 inhabitants/km2
Gross domestic product (GDP): € 138 billion/$US 183 billion
Resident companies: Seat, Nissan, La Caixa, Gas Natural Andalucia, Abertis, Grifols, Edag
Growth sectors: IT, telecommunications, media, biotechnology, design, tourism, energy,
health, transport, food
Investments in R&D: More than € 3 billion/more than $US4 billion (Catalonia)
Employed in R&D: More than 45,000 (Catalonia)
and contact
[40] Grundlagen des Konzernabschlusses
Die CHG-MERIDIAN Deutsche Computer Leasing AG, Weingarten (CHG-MERIDIAN AG), hat den
Konzernabschluss nach den für Kreditinstitute und Finanzdienstleistungsinstitute geltenden, handelsrechtlichen Vorschriften der §§ 290 ff. HGB i.V.m. §§ 340 ff. HGB sowie unter
Berücksichtigung der Regelungen der Verordnung über die Rechnungslegung der Kreditinstitute und Finanzdienstleistungsinstitute (RechKredV; geändert am 9. Juni 2011) aufgestellt.
Efficient workflows through
Die Gliederung der Konzernbilanz und der Konzern-Gewinn- und Verlustrechnung erfolgt
customer-specific
E-procurement
grundsätzlich nach
den Formblättern der RechKredV. Eine Ausnahme ergibt sich für die
Branch
Employees
Erweiterung
des Gliederungsschemas in Verbindung mit dem Ausweis eigener Anteile im
Legal
Firm Association
Eigenkapital gemäß § 265 Abs. 5 HGB i.V.m. § 340a Abs. 2 HGB: Der Saldo aus gezeichnetem
Kapital
und dem rechnerischen Wert eigener Anteile wurde als „ausgegebenes
More
than
1,000
Kapital“ bezeichnet.
Turnover € 191 million/$US 250 million
Mit den Tochterunternehmen bestehen weder Beherrschungs- noch Gewinnabführungsver-
IT-portfolio More
than 1,000 IT and output clients
träge. Es liegen zum 31. Dezember 2011 keine steuerlichen Organschaftsverhältnisse vor.
Step-by-step modernization of 500 mobile IT clients by way of a simple,
Der Konzernabschluss ist auf den Stichtag des Jahresabschlusses der CHG-MERIDIAN AG
fully
electronic procurement workflow; significant simplification of the
(31. Dezember 2011) aufgestellt, der mit den Stichtagen der einbezogenen Tochterunterprocurement
processes; increased transparency of the IT portfolio mananehmen und Teilkonzernen übereinstimmt.
Tasks gement; workflow in harmony with the ambitious company standards
[41] Grundlagen
des Konzernabschlusses
Web-based
E-procurement
module (TESMA© Online) with standardized
Solutions product packages
Die Jahresabschlüsse der in den Konzern einbezogenen Unternehmen werden im
Consultation,
conceptualization of the workflow and the product packages,
Wesentlichen nach einheitlichen Bilanzierungs- und Bewertungsgrundsätzen aufgeServices user
training
stellt. Für die Unternehmen der UK-Gruppe (Teilkonzernabschluss der CHG-MERIDIAN
©
(Holdings)
UK Limited), US-Gruppe (Teilkonzernabschluss der CHG-MERIDIAN U.S.
Online
Products used TESMA
Holding Inc.), CHG-MERIDIAN Computer Spain S.L. und CHG-MERIDIAN Computer Leasing
Ireland Limited wird
Ausnahmeregelung
gemäßby
§ 308
Abs. 2
Satzweb-based
4 HGB Gebrauch
Implementation
ofvon
theder
E-procurement
module
way
of the
©
gemacht,
da die Ermittlung
der TESMA
historischen
Anschaffungskosten
wirtschaftlich unzumutOnline
from CHG-MERIDIAN
Special features asset
management
system
bar wäre und zu einer unverhältnismäßigen Verzögerung bei der Erstellung des Konzernabschlusses der CHG-MERIDIAN AG führen würde. Diese Gesellschaften klassifizieren
ihre Leasingverträge in Anlehnung an die IFRS-/US-GAAP-Rechnungslegungsgrundsätze1.
Dies führt dazu, dass ein Leasingvertrag mit einer Amortisation von über 90 % der Gesamtinvestitionskosten nicht als Leasingvermögen, sondern als mit dem Barwert angesetzte
Forderung2 und ggf. als Restwert3 (Finance Lease) ausgewiesen wird. Liegt die Amortisation unter 90 % der Gesamtinvestitionskosten, werden die Leasinggüter als Leasingvermögen in der Konzernbilanz ausgewiesen und über die Vertragslaufzeit auf den geschätzten
Restwert abgeschrieben. Die Vereinnahmung der Zinserträge von Finance Leases erfolgt
analog den deutschen handelsrechtlichen Vorschriften für Mietkäufe. Die unterschiedliche Klassifizierung führt bei Finance Leases dazu, dass bei diesen Gesellschaften die
Periodenergebnisse über finanzmathematisch errechnete Zinserträge erzielt werden.
Das Periodenergebnis der Leasingverträge, welche als Leasingvermögen bilanziert werden, wird
über die Leasingerträge (linearisierte Mietraten) abzüglich Abschreibungen und Wertberichtigungen auf das Leasingvermögen erzielt. Der degressive Ertragsverlauf bei Finanzierungsleasingverträgen hat zur Folge, dass das Periodenergebnis zu Beginn eines Leasingverhältnisses
höher ist als das linearisierte Periodenergebnis der als Leasingvermögen klassifizierten Leasingverträge. Am Ende der Laufzeit eines Leasingvertrages ist der Effekt gegenläufig. Die beiden
Methoden führen über die Gesamtlaufzeit des Leasingvertrags zu identischen Ergebnissen.
94
95
6 headquarters, subsidiaries and contact
germany
BRASIL
GREAT BRITAIN
Headquarter Weingarten
CHG-MERIDIAN
Deutsche Computer Leasing AG
Franz-Beer-Straße 111
88250 Weingarten
Phone +49 751 5030
Fax +49 751 50366
email: info@chg-meridian.de
www.chg-meridian.de
CHG-MERIDIAN
do Brasil Locação de
Equipamentos Ltda.
Alameda Grajaú, 129 – 12º andar Alphaville
CEP 06454-050 – Barueri –
São Paulo – Brasil
Phone +5511 9525-9950
email: info@chg-meridian.com.br
www.chg-meridian.com.br
Egham (Head office)
CHG-MERIDIAN UK Limited
Barons Court
22 The Avenue
Egham, Surrey TW20 9AB
Phone +44 (0) 1784 470701
Fax +44 (0) 1784 439183
email: uk@chg-meridian.com
www.chg-meridian.com
Berlin
Karlplatz 7
10117 Berlin
Phone +49 30 2840680
Fax +49 30 28406866
Dusseldorf
Fritz-Vomfelde-Straße 6
40547 Düsseldorf
Phone +49 211 557270
Fax +49 211 5572766
Groß-Gerau
Technology and Service Center
Wasserweg 2
64521 Groß-Gerau
Phone +49 6152 18710
Fax +49 6152 1871499
Hamburg
Lombard-Haus
Pelzerstraße 9-13
20095 Hamburg
Phone +49 40 4191570
Fax +49 40 41915766
Munich
Wilhelm-Wagenfeld-Straße 28
80807 Munich
Phone +49 89 238856300
Fax +49 89 238856366
AUSTRIA
CHG-MERIDIAN
Computer Leasing Austria GmbH
Landstraßer Hauptstraße 1
1030 Vienna
Phone +43 1 71807520
Fax +43 1 718075266
email: austria@chg-meridian.com
www.chg-meridian.at
BELGIUM
CHG-MERIDIAN
Computer Leasing Belgium NV/SA
Romeinsesteenweg/
Chaussée Romaine 468
1853 Grimbergen
Phone +32 2 7054600
Fax +32 2 7053587
email: belux@chg-meridian.com
www.chg-meridian.be
96
6 headquarters, subsidiaries and contact
CHG-MERIDIAN
Canada Finance, Ltd.
443 Ouellette Avenue, Suite 300
Windsor, Ontario N9A 6R4
Phone +1 818 7021800
Fax. +1 818 7021821
email: canada@chg-meridian.com
www.chg-meridian.ca
Daventry
CHG-MERIDIAN
Capital Limited
Innovation House
20-21 Cottesbrooke Park
Heartlands
Daventry
Northants NN11 8YL
Phone +44 1327 301099
Fax +44 1327 315388
email: capital@chg-meridian.com
www.chg-meridiancapital.com
CZECH REPUBLIK
IRELAND
CHG-MERIDIAN
Computer Leasing Czech Republic s.r.o.
Bohdalecká 8/1460
101 00 Praha 10
Phone +420 272 102111
Fax +420 272 102766
email: czech@chg-meridian.com
www.chg-meridian.cz
CHG-MERIDIAN
Computer Leasing Ireland Limited
One Spencer Dock
North Wall Quay
Dublin 1
Phone +44 1784 470701
Fax +44 1784 439183
email: ireland@chg-meridian.com
www.chg-meridian.com
CANADA
FRANCE
Paris (Head office)
CHG-MERIDIAN
Computer Finance France SAS
5 rue Scribe
75009 Paris
Phone +33 1 53058510
Fax +33 1 53058511
email: france@chg-meridian.com
www.chg-meridian.fr
Lyon
CHG-MERIDIAN
Computer Finance France SAS
4 quai des Etroits
Espace DMCI
69005 Lyon
Phone +33 4 72565145
Fax : +33 4 78381537
Lille
CHG-MERIDIAN
Computer Finance France SAS
12 place Saint Hubert
59000 Lille
Phone +33 3 59561924
Fax : +33 3 59560601
ITALY
Monza (Head office)
CHG-MERIDIAN
Italia S.p.A.
Via Sempione, 11
20900 Monza (MB)
Phone +39 039 390681
Fax +39 039 3906861
email: italia@chg-meridian.com
www.chg-meridian.it
Rome
CHG-MERIDIAN
Italia S.p.A.
Via del Casale Solaro 119
00143 Rome
Phone +39 06 51573329
Fax +39 039 3906861
email: italia@chg-meridian.com
www.chg-meridian.it
Guadalajara
José Guadalupe Zuno No. 2302 PB-1
Col. Americana, Guadalajara, Jalisco,
CP. 44100
Phone +52 33 14047700
Monterrey
Avenida Calzada del Valle Oriente
No. 225
Despacho 115 Planta Baja
Colonia del Valle
San Pedro Garza García, Nuevo León,
CP. 66220
Phone +52 81 82628386
NETHERLANDS
CHG-MERIDIAN
Computer Leasing Netherlands BV
K.P. van der Mandelelaan 110
3062 MB Rotterdam
Phone +31 10 4509094
Fax +31 10 4505383
email: nederland@chg-meridian.com
www.chg-meridian.nl
POLAND
CHG-MERIDIAN
Computer Leasing Polska sp. z o.o.
Al. Jana Pawla II 15
00-828 Warszawa
Phone +48 22 5269900
Fax +48 22 5269966
email: poland@chg-meridian.com
www.chg-meridian.pl
RUSSIA
OOO CHG-MERIDIAN Leasing
Ilyinka str. 3/8, bld. 5
Moscow, 109012
Phone +7 495 9212115
Fax +7 495 9212116
email: russia@chg-meridian.com
www.chg-meridian.ru
SLOVAKIA
CHG-MERIDIAN
Computer Leasing Slovakia s.r.o.
Mateja Bela 8
811 06 Bratislava
Phone +420 272 102111
Fax +420 272 102766
email: slovakia@chg-meridian.com
www.chg-meridian.sk
MEXIKO
SLOVENIA
México City (Head office)
CHG-EI Camino S.A.P.I. de C.V.
Juan Salvador Agraz No. 40 Piso 12
Col. Santa Fé
Del. Cuajimalpa de Morelos
CP. 05109 México D.F.
Phone +52 55 59807000
Fax +52 55 59807030
email: info@chg-elcamino.com.mx
www.chg-elcamino.com.mx
CHG-MERIDIAN
Computer Leasing d.o.o.
Linhartova 11 a
1000 Ljubljana
Phone +386 1 4341800
Fax +386 1 4341810
email: slovenia@chg-meridian.com
www.chg-meridian.com
SPAIN
Barcelona (Head office)
CHG-MERIDIAN
Computer Spain S.L.
Avda. Diagonal, 523-40 4a
(Edificio Atalaya)
08029 Barcelona
Phone +34 902 350065
Fax +34 902 350066
email: spain@chg-meridian.com
www.chg-meridian.es
Madrid
CHG-MERIDIAN
Computer Spain S.L.
Goya, 115 - 6a Planta
28009 Madrid
Phone +34 902 350095
Fax +34 902 350096
SWITZERLAND
CHG-MERIDIAN
Schweiz AG
Täfernstrasse 7a
5405 Baden
Phone +41 56 2031800
Fax +41 56 2031809
email: schweiz@chg-meridian.com
www.chg-meridian.ch
USA
Los Angeles (Head office)
CHG-MERIDIAN
U.S. Finance, Ltd.
21800 Oxnard Street, Suite 400
Woodland Hills, CA 91367
Phone +1 818 7021800
Fax +1 818 7021821
email: usa@chg-meridian.com
www.chg-meridian.us
Atlanta
CHG- MERIDIAN
U.S. Finance, Ltd.
160 Clairmont Ave, Suite 200
Decatur, GA 30033
email usa@chg-meridian.com
www.chg-meridian.us
Chicago
CHG-MERIDIAN
U.S. Finance, Ltd.
208 South LaSalle, Suite #1690
Chicago, IL 60604
email: usa@chg-meridian.com
www.chg-meridian.us
New York
CHG-MERIDIAN
U.S. Finance, Ltd.
245 Park Ave , 39th Floor
New York, NY 10167
email: usa@chg-meridian.com
www.chg-meridian.us
Dallas
CHG-MERIDIAN
U.S. Finance, Ltd.
14643 Dallas Parkway, Suite 680
Dallas, TX 75254
email: usa@chg-meridian.com
www.chg-meridian.us
97
Contact
CHG-MERIDIAN
Deutsche Computer Leasing AG
Franz-Beer-Straße 111
88250 Weingarten
Germany
Phone +49 751 5030
Fax +49 751 50366
email: info@chg-meridian.de
www.chg-meridian.com
98
As a Portfolio Manager, CHG-MERIDIAN facilitates sophisticated client projects on a
global basis and delivers genuine solutions. Large and medium-sized companies
and public sector entities have placed their trust in our outstanding portfolio
management expertise and in our ability to devise customized concepts
for capital spending on technology.
www.chg-meridian.com
CHG-MERIDIAN Annual Report 2011
Intelligent Portfolio Management
Annual Report 2011
CHG-MERIDIAN
Deutsche Computer Leasing AG