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GfK Group: Annual Report 2008
No future without a past No future without a past
GfK. Growth from Knowledge
II
ContentsContents
146 5-year overview
150 Glossaries
156 List of GfK company abbreviations
V Financial calendar
VI Index
VII Acknowledgements and contacts
Additional information
99 Consolidated financial statements
104 Notes to the consolidated financial statements
143 Auditors‘ report
Financial statements of the GfK Group
30 1934 – The founding of GfK
34 1957 – Launch of household panel
38 1970 – Launch of retail panel
42 1984 – tv research takes off
46 1999 – Stock market launch
50 2005 – Merger with nop World
54 2008 – A time of acquisition and expansion
GfK Special
III The corporate values which govern our thoughts and actions
IV Mission Statement
The GfK Group 2008: key data
1 No future without a past
2 2008 at a glance
4 Report by the Supervisory Board
7 The Supervisory Board
8 Letter to shareholders
12 The Management Board
14 Corporate Governance
21 GfK shares
GfK Group
Management report of the GfK Group
59 Management report
86 The regions
III
Client driven
Our clients’ needs drive our business. We continuously seek to better understand our clients’
needs, improve all aspects of existing research products, offer innovative products and to be
an integral part of our clients’ information systems. Accuracy, sound methodology, excellent
client service, flexibility, timely delivery and cost effectiveness all ensure that we meet and even
exceed our clients’ expectations. We build long-term partnerships with our clients, contributing
to their success.
Our people
People are our main asset. Development through training, sharing ideas and sound experience is
essential to our business. Our people have the freedom to explore and develop their talents and
are empowered to achieve our common goals. We encourage and reward initiative, dedication and
hard work. Fairness, good communication and working relationships at all levels and locations are
key to our success.
Innovation
We recognize that investing in continuous innovation in both the process and the end product is
a prerequisite to meeting clients’ requirements. Our aim is to be at the cutting edge with our key
business activities. Clients’ needs, evolving markets, new technology and the expertise and ideas
of our people throughout the world are what drive innovation.
Global experience – local knowledge
We respect and learn from local business practices and cultures and provide knowledge tailored to
local needs. Our global network comprises international teams, tools and products to provide multi-
national clients with consistent services. As proud members of the GfK Group, we share local and
international expertise to continually improve all aspects of our business.
Growth
Profitable growth results in greater opportunities. As individuals, teams and business units, we are
aware of the impact of our decisions and actions at all levels. We use financial and non-financial
measurements to review and improve performance on an ongoing basis. Our growth provides
investors with a fair return on the financial resources they have entrusted to us.
Our corporate values
Change
20071) 2008 in %
Sales in eur m 1,162.1 1,220.4 + 5.0
ebitda in eur m 188.4 192.0 + 1.9
Adjusted operating income2) in eur m 157.6 158.7 + 0.7
Margin3) in % 13.6 13.0 –
Operating income in eur m 125.6 128.9 + 2.6
Income from ongoing business activity in eur m 104.2 113.0 + 8.4
Consolidated total income in eur m 78.9 82.0 + 4.0
Tax ratio in % 24.3 27.4 –
Cash flow from operating activity in eur m 168.1 145.8 – 13.3
Earnings per share eur 1.98 2.04 + 3.0
Dividend per share eur 0.45 0.46 + 2.2
Total dividend in eur m 16.1 16.5 + 2.5
Number of employees at year-end full-time 9,070 9,692 + 6.9
1) All figures in the profit and loss statement are adjusted for effects on income resulting from the settlement with ubm.
2) Adjusted operating income is calculated from operating income. The following expenses and earnings have been eliminated: integration
costs arising in connection with the acquisition of companies, amortization on hidden reserves and impairment of additional assets identi-
fied on acquisitions as part of purchase price allocation, personnel expenses for share-based payments and long-term incentives, any other
remaining operating income and expenses, in particular, currency effects resulting from the reporting date valuation.
3) Adjusted operating income in relation to sales in %
IV
GfK Group 2008 in figures
Mission StatementMission Statement
GfK. Growth from Knowledge
Companies need to make decisions. Knowledge is the basis for decision-making. Our business information
services provide the essential knowledge that industry, retail, the service sector and the media need in
order to make their decisions.
As a knowledge provider, we aim to be at the top in all the global markets in which we operate – in the
interests of our clients, our employees, our company, our shareholders and the general public.
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GfK is GfK is 7575 this year. A perfect example of tradition and innovation this year. A perfect example of tradition and innovation
in harmony. The image section of this Annual Report has taken in harmony. The image section of this Annual Report has taken
us on a journey through time on the tracks of innovative creativity, us on a journey through time on the tracks of innovative creativity,
extraordinary events and exceptional people. Separate chapters extraordinary events and exceptional people. Separate chapters
are devoted to seven of the most critical years for GfK. Each of the are devoted to seven of the most critical years for GfK. Each of the
contributions ref lects a special year in the history of the GfK Group contributions ref lects a special year in the history of the GfK Group
and we hear from colleagues who witnessed the events at f irst and we hear from colleagues who witnessed the events at f irst
hand. The eye witness portraits were taken by Swiss photographer, hand. The eye witness portraits were taken by Swiss photographer,
Michel Comte. Michel Comte.
No future without a past No future without a past Odo Marquard
01 / January
The GfK Group concentrates its organizational
structure from five business divisions into
the three sectors Custom Research, Retail
and Technology and Media.
Dr. Gérard Hermet, the Management Board
member responsible for the Retail and
Technology sector, is appointed to the
Management Board of GfK ag for a further
five years, until the end of 2013.
The takeover of Sydney-based Blue Moon
Group strengthens the GfK network in the
Asia and the Pacific region. GfK Blue Moon
is Australia’s leading Custom Research
company.
02 / February
The Management and Supervisory Boards
of GfK ag resolve that GfK will change from
an Aktiengesellschaft (German joint stock
company) to a Societas Europaea (se).
GfK Marketing Services Australia establishes
the first GfK subsidiary in New Zealand
03 / March
GfK Türkiye acquires Turkish market research
organization Bilesim International, and is
consequently ranked second on the Turkish
market.
The GfK Group is a silver sponsor at the
Advertising Research Foundation (arf)
conference in New York, and wins three Great
Mind Awards for a particularly innovative
market research concept and outstanding
dedication to arf. All three awards go to
GfK Custom Research North America.
04 / April
Europanel, the consumer panel partnership
between the GfK Group and uk market
research company, Taylor Nelson Sofres (tns),
cooperates with Information Resources (iri)
in the usa to create the most comprehensive
household panel network in the world.
GfK expands its Retail and Technology
network in Latin America with the takeover
of Brazilian organization, Shopping Brasil.
The GfK Group welcomes its 10,000th
employee.
05 / May
GfK ag shareholders approve the resolution
proposed by the Management and Super-
visory Boards that GfK will change from an
ag to an se.
Dr. Silvestre Bertolini, Managing Director
of GfK Marketing Services Italia and member
of the Global Retail and Technology Board,
is elected President of the Italian market
research association, Assirm.
06 / June
The Management and Supervisory Boards of
the GfK Group and the Board of Directors of
tns agree on a merger of equals.
German professional research association,
Berufsverband Deutscher Markt- und
Sozial forscher e.V. (bvm), awards the
GfK-Nürnberg e.V. with the 2008 Innovation
Prize for its development of the hilca tool
(Hierarchical Individual Limit Conjoint
Analysis).
Debra A. Pruent, member of the GfK ag
Management Board and coo of GfK Custom
Research North America, is appointed to
the Management Board of the arf.
2008 at a glance
01 02 03 04 05 06
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2008 at a glance
07 / July
The GfK Group and tns reach a mutual
agreement not to pursue the planned merger
of the two companies. GfK subsequently
pursues its intention to acquire tns.
The establishment of GfK Albania in Tirana
consolidates the leading role of the GfK Group
in Central and Eastern Europe.
According to American trade magazine,
Inside Research, GfK is the market research
company displaying the strongest growth
in the usa.
08 / August
The GfK Group decides not to pursue the
takeover bid for tns further.
us organization, the Arbor Strategy Group,
joins the GfK Group under its new name,
GfK Strategic Innovation.
09 / September
The GfK-Anholt Roper Nation Brands
Index (nbi), which measures the image of
50 countries, is published for the first time
by GfK Custom Research North America
in the usa.
GfK nop Custom Research, based in the uk,
receives the esomar Excellence Award at the
esomar annual congress in Canada.
Dr. Arno Mahlert is elected as the new Super-
visory Board Chairman of GfK ag.
10 / October
For the first time ever, GfK Custom Research
North America conducts opinion polls for the
American news agency Associated Press (ap)
in the usa.
GfK Indicator opens a retail test laboratory in
Brazil, in which different shopping situations
can be simulated.
11 / November
The GfK Group acts as the main sponsor
of the German market research trade fair,
Research & Results, held in Munich.
The GfK Group acquires 74% of Egyptian
market research organization, Market Insight.
The company, which now trades under the
name GfK Egypt, is one of the leading research
organizations in the Middle East and North
Africa.
12 / December
Through its subsidiary Encodex, the
GfK Group acquires the majority stake in
us company, Etilize, and consequently
strengthens its presence in the Retail and
Technology sector.
The traditional Christmas campaign
organized by the GfK Group – selling
traditional Nuremberger spicy gingerbread
Lebkuchen in tins with designs by children
from the local children’s home – raises eur
34,000. The money is donated to the home
for children and young people in
Reutersbrunnenstraße, as well as to other
welfare institutions in Nuremberg, Germany.
07 08 09 10 11 12
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Report by the Supervisory Board
In 2008, the Supervisory Board discharged its obligations according to the law, the Articles of
Association, the German Corporate Governance Code and the internal regulations of the company.
The Management Board kept the Supervisory Board regularly and comprehensively informed
at the appropriate times in written and oral form of issues of fundamental importance to the
Group’s business development, income and financial position, personnel situation, business
strategy, corporate planning, planned investments and risk management. The Supervisory Board
monitored and advised on the activities of the Management Board and discussed all significant
business developments with it. Between board meetings, the ceo of the Management Board
and Chairman of the Supervisory Board discussed every issue of importance to the company.
The Supervisory Board met ten times in 2008. At these sessions, the Management Board
reports were exhaustively discussed, the prospects for the Group’s growth examined and the
votes taken accordingly.
The main topics included deliberations on the strategic direction of the GfK Group, its inter-
national acquisitions activity, the annual accounts for 2007, the development of business during
2008 and the budget for financial year 2009.
Dr. Arno Mahlert
Supervisory Board Chairman
ceo maxingvest ag, Hamburg
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A particular focus of the Supervisory Board’s deliberations was the projected merger between
GfK ag and Taylor Nelson Sofres (tns), which was the object of a total of seven meetings of the
Supervisory Board. The Supervisory Board was actively involved in the process and saw in the
planned merger a good opportunity to create what would be the world’s second largest market
research organization. After exhaustive discussions with the Management Board, it was resolved
to pursue a merger of equals (based on both companies being of equal value) and on April 29,
2008, the fact that the two companies were in negotiations was publicly acknowledged.
On July 4, 2008, the majority shareholder, the GfK-Nürnberg e.V., passed the required board
resolution by majority vote approving the merger. In the meantime, however, British company,
wpp, had repeatedly expressed interest in acquiring tns, and this triggered a sudden speculative
rise in the tns share price on one hand, and a fall in the price of GfK shares on the other. This
development and the official wpp offer to tns shareholders on July 9, 2008 significantly changed
the original basis for the merger of equals. The same day, as a result, the Supervisory and
Management Boards of GfK and the relevant boards of tns announced that negotiations for the
planned merger of equals had been terminated.
Consequently, up to August 28, the GfK Supervisory and Management Boards pursued the
acquisition of tns with the involvement of a new investor. However, the development of the
price for tns and the potential influence of another investor eventually led to the decision not
to pursue the acquisition further.
Following the termination of merger negotiations, the Supervisory Board Chairman at the time,
Hajo Riesenbeck, resigned the chairmanship of the Supervisory Board of GfK se and the
presidency of the GfK-Nürnberg e.V. and left both boards with effect from September 26,
2008. The Supervisory Board wishes to thank Hajo Riesenbeck for his seven years of service
to the Supervisory Board, five of which as its Chairman.
On September 26, 2008 Dr. Arno Mahlert, ceo of maxingvest ag, Hamburg, and Chairman of
the Supervisory Board of Springer Science+Business Media s.a., Luxembourg, was unanimously
elected by the Board as the new Chairman of the Supervisory Board of GfK se. Dr. Mahlert,
formerly Deputy Chairman of the Supervisory Board of GfK, joined the board in 2004. At the
same time, Stefan Pfander was appointed Deputy Chairman of the Supervisory Board. Stefan
Pfander left the Management Board of Tchibo GmbH on December 31, 2008 to take up his
appointment to the Supervisory Board of Tchibo GmbH on January 1, 2009. Stefan Pfander is
also a member of the Supervisory Board of Beiersdorf ag and a member of the Administrative
Board of Barry Callebaut ag. Dr. Raimund Wildner, Vice President and Managing Director
of the GfK-Nürnberg e.V., was appointed by decision of the Nuremberg administrative court
on January 8, 2009 to replace Hajo Riesenbeck on the Supervisory Board.
In addition, the Supervisory Board debated the conversion of GfK ag to an Europäische Aktien-
gesellschaft (se), which was completed on February 2, 2009, in several sessions.
The Supervisory Board examined the regulations pertaining to the Corporate Governance Code
and on December 10, 2008, gave the Declaration of Compliance in accordance with the terms
of Article 161 of the German Joint Stock Corporation Act. The company fulfils the mandatory
provisions to the full extent with the exception of three requirements and the voluntary regulations
with the exception of one. The discrepancies are explained on page 19 f of the present Annual
Report under the section on Corporate Governance.
To enable it to carry out its remit efficiently, the Supervisory Board is supported in its work by
four committees: the Audit Committee, the Personnel Committee, the Presidial Committee and the
Nominations Committee.
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Report by the Supervisory Board
The Audit Committee met six times in the reporting period to discuss the company’s business
development, the income and financial position and planned investments by the company.
Additional focal points were issues of financing, questions pertaining to the accounting system
and interim reporting, the internal audit and subjects relating to Corporate Governance and
Compliance.
The Personnel Committee met four times in the reporting period and subjects under discussion
included Management Board remunerations, extending the service contract of Management
Board member, Dr. Gérard Hermet, and deliberations on the new form of the Supervisory Board
remuneration.
The Presidial Committee held two telephone conferences during the tns project for the purposes
of obtaining information on the current status of the tns project.
Since October 2008, the Nominations Committee has dealt with the preparations for nomination
of two new Supervisory Board members at the Supervisory Board sessions, as well as on the
telephone. This became necessary with the resignation of Hajo Riesenbeck, and the request
from Jürgen Schreiber that he be permitted to resign his post at the Annual General Meeting
on May 20, 2009.
Moreover, Dr. Raimund Wildner, who was appointed as successor to Hajo Riesenbeck on the
Supervisory Board by court decision, will leave this committee when the ordinary Annual General
Meeting appoints his successor at its meeting on May 20, 2009.
The 2008 annual report and accounts of GfK se and the GfK Group were audited and given
unqualified approval by the auditors, kpmg ag. Every member of the Supervisory Board received
the audited financial statements at the appropriate time.
The Audit Committee deliberated on these documents in a preparatory session and the Super-
visory Board gave it consideration at the plenary session held during its accounts’ meeting
on March 26, 2009. The auditors of the annual and consolidated accounts were present at
both meetings. They reported on the audit in general and on particular aspects specified as
mandatory for the issue of the auditor’s certificate. Beyond this, they responded in detail to
questions from members of the Audit Committee and the Supervisory Board.
The Supervisory Board noted and approved the auditors’ report, and having examined the
annual accounts prepared by the Management Board, gave its approval to discharge the
accounts. The Supervisory and Management Boards reached agreement on the proposal
for appropriation of the profits. GfK once again pursued a successful course in 2008, despite
the growing difficulties in the markets caused by the global economic and financial crisis.
This result is attributable to the superb achievements of the staff, directors and employee
representatives of GfK se. The Supervisory Board wishes to express its thanks to all in
appreciation of their dedication and performance. In spite of the considerable added burden
of work associated with the tns project, the commitment to current business remained firm at
all times. Thanks and appreciation are also due to clients and business associates of GfK se.
The Supervisory Board has no doubt that the strong basis forged by the GfK Group will enable
it to surmount the major challenges posed by 2009.
Nuremberg, March 26, 2009
Dr. Arno Mahlert
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Stephan Lindeman
Since February 2, 2009
Director Retail, Intomart GfK b.v.,
Hilversum, Netherlands
Shani Orchard
Since February 2, 2009
Director Human Resources, GfK Retail
and Technology uk Ltd, West Byfleet,
Surrey, uk
Jürgen Schreiber
ceo and President of Shoppers Drug Mart,
Toronto, Canada
Dieter Wilbois
Independent Works’ Council representative
(Chairman of the Works’ Council and Group
Works’ Council) at GfK se, Nuremberg
Dr. Raimund Wildner
Since January 8, 2009
Managing Director and Vice President
of the GfK-Nürnberg e.V., Berlin
Audit Committee
Dr. Christoph Achenbach (Chairman)
Stefan Pfander
Dieter Wilbois
Personnel Committee
Dr. Wolfgang C. Berndt (Chairman)
Dr. Arno Mahlert
Shani Orchard
Jürgen Schreiber
Presidial Committee
Dr. Arno Mahlert (Chairman)
Dr. Wolfgang C. Berndt
Stefan Pfander
Dieter Wilbois
Nominations Committee
Dr. Arno Mahlert (Chairman)
Dr. Wolfgang C. Berndt
Stefan Pfander
Dr. Arno Mahlert
Supervisory Board Chairman
Appointed September 26, 2008
ceo, maxingvest ag, Hamburg
Hajo Riesenbeck
Up to September 26, 2008
Supervisory Board Chairman
Stefan Pfander
Deputy Chairman of the Supervisory Board
Appointed September 26, 2008
Management Consultant
Dr. Christoph Achenbach
Managing Director and Partner of the
intes Group, Bonn
Dr. Wolfgang C. Berndt
Non-Executive Director
Kerstin Döpfert
Up to February 2, 2009
Independent Works’ Council representative
at GfK se, Nuremberg
Sandra Hofstetter
Up to February 2, 2009
Independent Works’ Council representative at
GfK se, Nuremberg
The Supervisory Board
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I have been writing this letter to you since 1998, and have almost always been able to report
increased sales and good profits. I am delighted to say that this is also the case for 2008.
However, I have seldom been so unsure as to what to write as I am this time. Will the
assumptions for 2009 still be correct by the time you receive the copy of the financial report?
Will reality overtake plans for the current year, and could the measures we intend potentially
lead us in the wrong direction?
Professor Dr. Klaus L. Wübbenhorst
Chief Executive Officer of GfK se
Letter to shareholders
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2008: a turbulent year
This financial year was eventful in many respects, and was certainly much more than just
another year in the long and successful history of the GfK Group.
A new organizational structure has been in place since the beginning of 2008. Taking as
a starting point the source of the information on which our business model is based, we
have concentrated our former five business divisions into the three sectors: Custom Research,
Retail and Technology and Media. Less is more was – and is – the idea behind this move.
With this new structure, we have achieved organic growth of 5.5% and sales of over eur 1.2
billion. We performed particularly well in the growth regions of Central and Eastern Europe,
Asia and the Pacific and Latin America. Our approach of using acquisitions as a foundation
for future organic growth is paying off.
In April, we also welcomed our 10,000th employee worldwide. My colleague, Debra A. Pruent,
joined the Management Board at the beginning of the year, and she is responsible for major
areas of our Custom Research sector. Her presence also makes our Management Board still
more international and contributes further to the gender balance.
Many months of the 2008 financial year were affected by the discussions between the GfK Group
and British market research organization, Taylor Nelson Sofres, with a view to creating the
industry’s undisputed No. 2. The negotiations were originally aimed at a merger of equals. In
late summer, we then considered attempting a takeover, but eventually abandoned this intention.
We judged the financial risks and potential influence of private equity investors to be too high.
Given the current financial and economic crisis, we can say that this decision was absolutely
the right one.
The discussions generated a very high level of uncertainty with some GfK Group staff, and in the
cooperation of the various boards, in particular the Management and Supervisory Boards and
the majority shareholder of the GfK Group, the GfK Association. Following the failed merger,
Hajo Riesenbeck resigned from his posts as Supervisory Board Chairman and President of the
GfK Association. I should like to thank him for his years of service on the Supervisory Board of the
GfK Group.
Since then, Dr. Arno Mahlert has chaired the Supervisory Board, of which he has been a member
for many years, and in this capacity, he will be contributing to the continuity and stability of the
development of the GfK Group.
Our dividends policy also shows continuity. Despite, or as a result of, the international economic
situation, the Supervisory and Management Boards are proposing the ninth consecutive dividend
increase to the Annual General Meeting on May 20, 2009. By giving a dividend of eur 0.46, we
are enabling our shareholders to share in the company’s success.
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2009: a year of uncertainty
The 2009 financial year and also large parts of 2010 will, without a doubt, be characterized
by a high level of uncertainty. How will our clients develop? Which industries will suffer more
than others as a result of the global economic crisis? When will economic recovery begin?
What is clear is that nobody knows for certain. The development in the dollar exchange rate
and the price of oil show this only too clearly.
How should we, in the GfK Group, face up to these particular challenges?
For GfK Management, the certainty is that it will not be “business as usual”.
The Management Board will not be making decisions based on a short-term view that does not
look beyond the next quarter. Equally, there will be no knee-jerk reactions in the wake of the
cancellation of an order.
Instead, we must act with a sense of proportion over the next few months. We must display
caution where appropriate. We must not simply save for the sake of saving costs, but we must
scrutinize expenditure and business processes. We must be proactive in the market wherever
possible. Any crisis has its risks, but it also presents opportunities, and we aim to grasp these.
Seizing the opportunities and overcoming the risks have been an integral part of the development
of the GfK Group for many years. Despite all the uncertainty, the year ahead is also a special one
for GfK. And in the spirit and letter of the Annual Report you are now holding, on the occasion
of our 75th anniversary, we can say: “No future without a past”.
Our predictions for financial growth in 2009 are cautious. Our aim will be to increase sales
organically in 2008 and to retain the margin, goals which will certainly not be easy to achieve.
Our Group-wide efficiency program, biss, is intended to support us in achieving these aims.
biss combines various projects that are divided into the four main categories of “Business,
it Services and Streamline Services create Synergies”. The program will make a significant
contribution to maintaining and fostering GfK’s competitive edges. From 2012 onwards, the
program should result in sustainable income growth of eur 30 million.
Letter to shareholdsers
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Until then, we will certainly have to chart some stormy seas and uncertain waters. The
GfK Management and Supervisory Boards still have a clear view of the way ahead,
and we know that we can rely on our global team.
It is clear that in stormy waters, navigation systems and navigators are essential. Our navigation
systems are the tools, methods and techniques that we employ for our market research.
And the navigators? All of us together – the more than 10,000 members of the GfK global team.
Sincerely yours,
Prof. Dr. Klaus L. Wübbenhorst
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Professor Dr. Klaus L. Wübbenhorst, Debra A. Pruent, Petra Heinlein (first row from left to right)
Dr. Gérard Hermet, Wilhelm R. Wessels (second row from left to right)
Christian Weller von Ahlefeld, Professor Dr. Klaus L. Wübbenhorst, Debra A. Pruent (third row from left to right)
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The Management Board
Petra Heinleinborn 1958
Responsibility in the Custom Research
sector, e.g. for the Financial Services
and Consumer and Retail segments
Professional career
Since 2002 Member of the Management Board
of GfK se, appointed until 2011
2001-2001 Integration management on behalf
of GfK ag
1992 – 2000 Managing Director of contest census
in Frankfurt
1985 Joined GfK as project manager with
GfK Marktforschung
1984 Research Assistant at the Arnold-
Bergstraesser Institute, Freiburg im Breisgau
Education
1984 Graduated in Political Science from the
University of Bamberg
Professor Dr. Klaus L. Wübbenhorst born 1956
Chief Executive Officer (ceo), responsibility
for Strategy, Internal Audit, Method
and Product Development, Corporate
Communications and it Services
Professional career
Since 1998 Spokesman and, since 1999, ceo of
GfK se, appointed until 2012
Since 2005 President of the Chamber of Industry
and Commerce for Middle Franconia in Nuremberg
1992 – 1997 Member of the Management Board
of GfK ag, responsible for Finances, Accounting,
Financial Controlling, Personnel, Purchasing,
Production and it
1991 – 1992 Member of the Management Board
of kba-Planeta ag, Radebeul near Dresden
1984 – 1991 Employee of Bertelsmann ag,
Gütersloh, becoming Managing Director of
Druck- und Verlagsanstalt Wiener Verlag,
Himberg near Vienna
Education
2005 Awarded the title of Honorary Professor by
Friedrich-Alexander University in Erlangen-
Nuremberg
1984 Doctorate from the Technische Hochschule,
Darmstadt
1981 Graduated in Business Administration from
the University/Gesamthochschule, Essen
Christian Weller von Ahlefeldborn 1958
Chief Financial Officer (cfo) and Human
Resources Director, responsibility for
Financial Services, Human Resources and
Central Services
Professional career
Since June 1, 2005 Member of the Management
Board of GfK se, appointed until 2013
2000 – 2005 cfo of the Tele-München Group
1996 – 2000 Director and Head of Group Finance
at Siemens ag and Manager of Siemens Financial
Services division
1995 – 1996 Executive Director of sbc Warburg
and member of the corporate management of
J. P. Morgan
1983 – 1995 J. P. Morgan in New York, London and
Frankfurt, becoming Vice President and member of
the European Corporate Finance Executive
Committee
1982 – 1983 Assistant to the management of
Heinrich D. Hansen in Flensburg
Education
1981 Graduated in Business Administration from
the Freie Universität Hamburg
Wilhelm R. Wesselsborn 1952
Responsibility for the Media sector and
in the Custom Research sector for the
Consumer Tracking and HealthCare
segments
Professional career
Since 1996 Member of the Management Board
of GfK se, appointed until 2011
1991 – 1996 Managing Director of GfK ag,
Gesundheitsforschung/i+g Gruppe Gesundheits-
und Pharma-Marktforschung
1986 – 1996 Managing Director of gpi, Gesellschaft
für Pharma-Informationssysteme, Nuremberg/
Frankfurt
1978 Joined GfK as a Research Associate
Education
1977 Graduated in Business Administration from
the University of Saarbrücken
Debra A. Pruentborn 1961
Responsibility in the Custom Research sector
for the Automotive and Business and Techno-
logy segments
Professional career
Since January 1, 2008 member of the Management
Board of GfK se, appointed until 2011
2006 – 2007 Chief Operation Officer (coo) of GfK
Custom Research North America
1992 – 2005 Employee of the us automotive-industry
market-researcher Allison-Fisher International, most
recently as ceo
1983 – 1992 Various management functions with
General Motors Corporation, usa
1988 – 1990 Extraordinary Professor of Statistics at
Oakland University, usa
Education
1986 Degree in Applied Statistics from Oakland
University, usa
1983 Degree in Mathematics and Computer Science
from Wayne State University, usa
Dr. Gérard Hermetborn 1951
Responsibility for the Retail and Technology
sector
Professional career
Since 1999 Member of the Management Board
of GfK se, appointed until 2013
1998 – 2000 Chairman of the French Marketing
Association (afm)
1988 – 1998 Managing Director of GfK Sofema,
France
1984 – 1998 Managing Director of GfK France, then
General Manager GfK Marketing Services, France
1978 – 1984 Employed by Burke Marketing
Research, Paris, France
Education
1978 Doctorate from the University of Grenoble
1975 mba from the French Business School (icn)
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The management of GfK is committed to increasing the value added of the company
on a responsible, transparent and sustained basis. This is documented by almost total
compliance with the Corporate Governance principles.
Declaration of compliance without material restrictions
The Management Board and the Supervisory Board issued their declarations of compliance
pursuant to Section 161 of the Joint Stock Corporation Act (AktG) on December 10, 2008.
The declaration of compliance is on page 19.
The company complies with all the recommendations under the Code apart from those
mentioned below and in the declaration of compliance.
For all other affiliated or associated companies, the company publishes their share of the
capital and their own equity capital, but not the respective income from the preceding
financial year. The decisive factor here is that transparency at the individual-company level
could be disadvantageous to the company’s competitiveness.
The interim report was published on August 28, 2008 (14 days after expiry of the 45-day
period). The delay was caused by the interim audit in connection with the strategic
negotiations with Taylor Nelson Sofres (tns). In 2009, GfK will again comply fully with the
prescribed publication dates.
GfK also complies with virtually all of the non-binding suggestions in the Code. There is only
one point where compliance is restricted. This relates to the contactability of the appointed proxy-
representative for the execution of shareholders’ voting rights in accordance with instructions
during the Annual General Meeting. This should guarantee that shareholders can issue
instructions to the company via their representative even during the Annual General Meeting.
From the Annual General Meeting in 2010, it is intended to secure the contactability of
shareholders’ representatives during the Annual General Meeting.
Management and control structure
GfK Aktiengesellschaft (since February 2, 2009, GfK se) is subject to the German Stock
Corporation Act and has a two-tier management and control structure comprising a
Management Board consisting of six persons and a Supervisory Board with nine members.
Two thirds of the members of the Supervisory Board are shareholder representatives
and one third employee representatives. In accordance with the standing rules of the
Supervisory Board, its representatives are independent. Alongside their activity for the
Supervisory Board, the majority of the members also held senior positions in other com-
panies during 2008.
The Supervisory Board advises and monitors the Management Board in the management
of business operations. Consequently, expertise from trade, industry and financial sector
at both national and international levels should be represented in the composition of the
Supervisory Board. The Supervisory Board has formed four independent committees, the
Presidial Committee, the Nominations Committee, the Personnel Committee and the Audit
Committee.
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The Code recommends that the Chairman of the Audit Committee has particular expertise
and experience in the application of accounting principles and internal financial controlling.
Until September, 2008, the Audit Committee was chaired by Dr. Arno Mahlert, who has
been a member of the Management Board since 2004 and Chairman of the Management
Board of maxingvest ag since May 1, 2007. Following the resignation of Hajo Riesenbeck,
Dr. Arno Mahlert was appointed Chairman of the Supervisory Board at the Supervisory Board
meeting on September 26, 2008. He was succeeded as Chairman of the Audit Committee
by Dr. Christoph Achenbach. Dr. Achenbach has been a partner and shareholder in intes
Beratung für Familienunternehmen since the beginning of 2008. He sits on various Advisory
and Supervisory Boards. Dr. Achenbach has many years’ operational experience in various
senior positions. He was previously Spokesman for the Klingel Group’s management.
In 2008, there were no consultancy and other service and works contracts between
members of the Supervisory Board and the company. Further details of the activities
of the Supervisory Board are given in the detailed Report by the Supervisory Board
on page 4 onwards.
The company has taken out a d&o insurance policy with an appropriate deductible for
members of the Management and Supervisory Boards.
Responsible risk management
Systematic risk management has been in place at the company for many years and has been
reviewed by the year-end auditors. Details are provided in the Risk Report on page 76 onwards.
Transparency in communications
With the aim of transparent communications, the company is pursuing its objective of
providing the same information to all the interested parties at the same time. All press
releases and corporate communications are available via the website www.gfk.com.
Newsletters in both electronic and printed form report on the latest news from the
Group, and the survey results from the three sectors provide the findings from market
research.
Remuneration report
Remuneration of the Management Board
The remuneration of the members of the Management Board comprises four components:
a fi xed element, a bonus (variable, short-term remuneration), the 5 Star Incentive Program
(variable, long-term remuneration) and the pension commitments. The structure of the
remuneration system is reviewed regularly by the Supervisory Board in line with the
recommendations of the Personnel Committee. The remuneration is based on the respective
remits of members of the Management Board, their personal performance and that of the
full Management Board. The non-performance related remuneration components comprise
a fi xed element and the pension commitments. The variable remuneration components
comprise variable components dependent upon internal annual performance targets (short-
term components) and stock options or a claim under the 5 Star Long Term Incentive
Program (long-term components).
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The 5 Star Incentive Program has the following objectives:
This program continues on the basis of the earlier stock option program, without issuing
new shares. The remuneration is based on cash benefi t. As with the previous program, the
intention is to bind the management to long-term operational and strategic corporate goals.
The term of each tranche is three years. Participation in the program is dependent on
individually-agreed performance targets. The contractually-agreed remuneration component
creates an entitlement to virtual shares on attainment of individual performance targets.
The number of virtual shares is calculated with reference to the amount of remuneration
divided by the price of the virtual shares. The price is the listed price of GfK shares, which
corresponds to the average price of the last 20 trading days before the year-end. For every
virtual GfK share acquired, the Management Board also receives a performance share. The
development of the long-term remuneration, composed of the virtual shares and performance
shares, depends on the development of the share price and attainment of two performance
targets: the Total Shareholder Return (tsr) of the GfK share by comparison with the tsr of
the shares of companies in the Dow Jones Euro Stoxx Media Index and the increase in the
operating income of GfK over a three-year period. The operating income index is measured
as an actual rise in the operating income over an expected rise of this parameter. The
expectation is stipulated by the Supervisory Board of GfK on an individual basis for each
tranche of the program. The Supervisory Board derives the performance targets from
the expected capital-market income to companies from the index noted above.
The performance shares granted by GfK shall lapse, reduce or increase, depending on
attainment of both targets. Under terms of the Corporate Governance Code, the increase
in value of a tranche is limited.
Structure of pension commitments
In principle, the pension contracts for Management Board members are uniformly structured.
After three service years as a member of the Management Board (waiting period), the
company grants a retirement pension, an early retirement pension, a disability pension and a
widows’/widowers’ and orphans’ pension. The fi xed annual remuneration of the benefi ciary
agreed in the contract of employment is deemed to be the pensionable income. Benefi ciaries
receive a retirement pension, when they leave the service of the company upon reaching the
normal retirement age. After three years’ service as a member of the Management Board,
the annual pension amounts to 30% of the pensionable income. This increases by three
percentage points for each additional full year. The retirement pension is limited to 60% of
pensionable income. The retirement pension is granted on leaving the company at the age
of 62. A reduced, early-retirement pension may be provided at the age of 60. If pension
benefi ciaries leave the service of the company before their 62nd birthday due to a partial or
complete reduction in earning capacity, they receive a disability pension for the duration of
the partial or complete reduction in earning capacity. If the reduction in earning capacity
still applies upon reaching the normal retirement age, the pension continues to be paid as a
life-long pension. The disability pension is calculated in the same way as the retirement
pension albeit only the service years until the benefi ciary leaves the company are included
in the calculation, which is based on the pensionable income at the time membership of the
Management Board ends. In the calculation it is assumed that the benefi ciary has been a
member of the Management Board for ten years. If he or she has been a member for more
than ten years, the benefi ciary’s disability pension will equal the entitlement acquired up to
Corporate Governance
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leaving the company. There is a different arrangement for Management Board member Debra
A. Pruent, in whose calculation the entitlement to a disability pension assumes that she has
been a member of the Management Board for three years. If she is a member for more than
three years, her disability pension will be equal to that acquired up to leaving the company.
The widows’/widowers’ pension amounts to 60% of the retirement pension or disability
pension last paid; the orphans’ pension amounts to 30% for full orphans and 15% for half
orphans. After the commencement of the pension, the current pension is increased annually
by two percentage points.
The company can grant higher adjustments, if the consumer price index shows a higher
increase in prices.
Remuneration of the Management Board
Annual salary
5 Star Incentive
Program Pensions
teur
Fixed
salary
Variable
Compo-
nent
Number
of shares
(units)
Value at
time of
issue Total
Liquidation
of / allocation
to pension
provisions
Pension
provisions at
year-end
2008
Prof. Dr. Klaus L.
Wübbenhorst
(ceo) 570.5 573.9 5,466 247.1 1,391.5 – 285.6 4,407.2
Christian Weller
von Ahlefeld 378.3 417.8 3,644 164.8 960.9 149.6 1,784.9
Petra Heinlein 391.5 305.3 3,644 164.8 861.6 – 110.3 2,003.8
Dr. Gérard Hermet 395.7 576.5 3,644 164.8 1,137.0 503.5 3,087.7
Debra A. Pruent 318.6 279.8 3,644 164.8 763.2 359.6 359.6
Wilhelm R. Wessels 376.9 378.7 3,644 164.8 920.4 – 26.6 2,918.6
Remuneration 2008 2,431.5 2,532,0 23,686 1,071.1 6,034.6 590.2 14,561.8
Remuneration 2007 2,067.7 2,905.0 6,540 348.7 5,321.4 – 1,380.0 13,971.5
In 2007, the Management Board of GfK Group comprised five and in 2008 six individuals.
As of December 31, 2008, the Management Board held a total of 375,787 shares and 302,107
options for GfK shares.
Former members of the management of GfK GmbH, Nuremberg, and of the Management Board
of GfK se, Nuremberg, and their dependents received a total remuneration of eur 0.9 million.
There are provisions of eur 11.4 million for pension obligations to former Management Board
members, their dependents and Managing Directors.
Remuneration of the Supervisory Board
The remuneration of the Supervisory Board is regulated by the Annual General Meeting and
stipulated in the Articles of Association. It is based on the remit and responsibility of Super-
visory Board members and on the commercial success of GfK. Essentially, this comprises the
following elements: in addition to expenses, members of the Supervisory Board receive a
fi xed remuneration of eur 9,000.00 payable at the end of the fi nancial year. They also receive
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annual remuneration, which is performance-linked and contingent on income per share. This
payment is linked to attainment of a minimum value, which is calculated as follows: a perfor-
mance-related remuneration of eur 500.00 is paid for every eur 0.10 income per share above
the threshold value of eur 0.30 income per share established in 2005, as shown in the
consolidated fi nancial statement in accordance with the International Financial Reporting
Standards (ifrs). The amount of eur 0.30 is increased annually by eur 0.10, so that the mini-
mum value for fi nancial year 2008 is therefore eur 0.60. The average income per share over
the current fi nancial year and the two preceding years is used as a basis for the calculation.
Performance-related remuneration may only amount to one and a half times the fi xed annual
remuneration. The Chairman of the Supervisory Board receives two and a half times the fi xed
and variable amounts mentioned above; the Deputy Chairman receives one and a half times
this amount. The remuneration increases by 25% for membership of the Personnel Committee
and the Audit Committee, and by 50% per chair of one of these two committees up to a
maximum of 100% of the fi xed and variable remuneration. GfK compensates every Super-
visory Board member for any vat applying to their remuneration and the reimbursement of
expenses. Supervisory Board members, who have only held their position for part of the
fi nancial year, are compensated on a pro rata basis.
As of December 31, 2008, the Supervisory Board held a total of 3,462 shares. Members of
the Supervisory Board hold no share options.
Details of transactions involving GfK shares by members of the Supervisory Board and
the Management Board are published on the website in accordance with the Corporate
Governance Code.
The remuneration report forms part of the consolidated fi nancial statements and the Group
management report.
Corporate Governance
Remuneration of the Supervisary Board
teur
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componets
Variable
components
Total
remuneration
Dr. Arno Mahlert (Chairman since September 26, 2008) 19.80 15.39 35.19
Hajo Riesenbeck (Chairman up to September 26, 2008) 19.90 15.47 35.37
Stefan Pfander (Deputy Chairman since September 26, 2008) 12.45 9.68 22.13
Dr. Christoph Achenbach 11.85 9.22 21.07
Dr. Wolfgang C. Berndt 11.85 9.22 21.07
Kerstin Döpfert 11.25 8.75 20.00
Sandra Hofstetter 9.00 7.00 16.00
Jürgen Schreiber 11.25 8.75 20.00
Dieter Wilbois 11.25 8.75 20.00
Remuneration 2008 118.60 92.23 210.83
Remuneration 2007 121.50 94.50 216.00
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Declaration of Compliance by the Management and Supervisory Boards of GfK Aktiengesellschaft in accordance with the provisions of Section 161 of the German Stock Corporation Act (AktG)
Pursuant to Section 161 of the German Stock Corporation Act (AktG), the Management
and Supervisory Boards of stock-exchange listed companies must declare each year, the
extent to which they have complied with and will continue to comply with the recommen-
dations of the Government Commission German Corporate Governance Code published
by the German Ministry of Justice in the official section of the online Federal Gazette and
which recommendations have not or will not be complied with. This declaration must be
made available to shareholders at all times.
The German Corporate Governance Code (the “Code”) contains regulations, some of which are
binding. In addition to outlining the prevailing company law, it also contains recommendations
from which companies may deviate, although in such cases, they are obliged to publish
information on such deviations every year. The Code also proposes suggestions from which
companies may deviate without the necessity for these to be disclosed.
Deviations from the recommendations and suggestions have been published since 2002.
These are reported separately below:
I. Recommendations
The Management and Supervisory Boards of GfK ag declare that they have complied with
and will continue to comply with the recommendations of the Government Commission
German Corporate Governance Code in the version of June 6, 2008 published by the German
Ministry of Justice on August 08, 2008 in the official section of the online Federal Gazette.
Only the following recommendations have not been applied:
1) Point 4.2.3 deals with variable remuneration components for the Management Board.
With regard to stock options, the requirement includes “the Supervisory Board shall
agree a limitation option (cap) for extraordinary, unforeseeable developments”.
GfK ag’s stock option program expired on December 31, 2004 and no cap is provided for
this program. Tranches already issued or still to be issued may be exercised up to and
including December 31, 2011. The Management and Supervisory Boards agreed on a new
program on December 12 and December 14, 2005 which complies with the requirements
of point 4.2.3.
2) Point 4.2.3 subsections 4 provides: “In concluding Management Board contracts,
care shall be taken to ensure that payments made to a Management Board member on
premature termination of his contract without serious cause do not exceed the value of
two years’ compensation (severance payment cap) and compensate no more than the
remaining term of the contract…”
In 2008 no new Management Board contracts were negotiated or concluded.
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Compliance Officer: Roland Fürst
Tel. + 1 212 240-5444 Fax + 1 212 240-5353 [email protected]
www.gfk.com/Investor
3) Point 7.1.2 provides for the publication of the consolidated financial statements
within 90 days and interim reports within 45 days.
Since January 1, 2005, GfK ag has consistently complied with the 45 day period for publication
of its quarterly results. In 2008 the Mid Year Report was published on August 28, 2008
(14 days after expiration of the 45 day period) as a result of the half year audit in connection
with the strategic negotiations with Taylor Nelson Sofres plc. (tns). Publication of the 2009
Annual Report is scheduled for 31 March, 2009, i.e. within the required period.
4) Point 7.1.4 provides for the publication of information concerning other companies.
Every year, GfK ag publishes a list of holdings which gives information on all affiliated and
associated companies and other major holdings. The information includes equity stake,
equity and fiscal year details.
Information beyond this level concerning the last year’s results of companies in which GfK ag
holds a not insignificant stake is not made available. The key criterion here is that transparency
at individual company level may prove a competitive disadvantage to GfK ag.
II. Suggestions
The Management and Supervisory Boards declare that they have complied with and will
continue to comply with the suggestions of the Government Commission German Corporate
Governance Code in the version of June 6, 2008 published by the German Ministry of Justice
on August 08, 2008 in the official section of the online Federal Gazette. Only the following
suggestions are not applied:
1) Point 2.3.3, third sentence provides: “The Management Board should ensure the
appointment of a representative to exercise voting rights for shareholders in accordance
with instructions: such persons should also be contactable during the annual General
Meeting.”
In the past, GfK ag has appointed a proxy to exercise the voting rights before the Annual
General Meeting and will continue to do so in then future. Voting proxies shall be determined
in accordance with the regulations listed in the invitation convening the Annual General Meeting.
The details are published in the agenda and on the website under www.gfk.com/Investor.
Voting during the Annual General Meeting is currently difficult for technical reasons. As soon
as a practicable solution has been found for the secure transmission of votes, GfK ag will
check the feasibility to introduce such a system.
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Stock market 2008 dominated by the crisis on financial markets
The crisis on the financial markets cast its shadow over 2008. It affected events on all
stock markets, albeit to a differing degrees. Players on Wall Street are looking back on one
of the most turbulent years on stock markets in living memory. In September, New York’s
Dow Jones index lost 4.4% in one day – the sharpest fall since trading resumed after
September 11, 2001. The exchange supervisory authority suspended trading at times
because of the dramatic falls in prices, short sales were forbidden. Over the course of the
year, the index lost 33.8% (2007: +6.4%). At the same time, the us’s s&p 500 fell 38.5%
(2007: +3.5%) in the reporting period. Share markets in Europe and Asia also slumped.
The leading European index, the eurostoxx 50, lost 44.4% of its value (2007: +6.8%)
in the course of the year. In a country comparison, the leading French index, the cac 40,
closed 42.7% down (2007: +1.3%), while the leading Spanish index, the ibex 35, was 39.4%
down (2007: +7.3%) and the leading British index, the ftse 100, lost 31.3% (2007: +3.8%).
The leading Asian indices were even more heavily hit. Having made substantial gains
in 2007, the Chinese Shanghai Composite lost 65.4% (2007: +96.7%) and the Indian
bse Sensex 52.5% (2007: +47.1%) of their value. At the 2008 year-end, the Japanese
Nikkei index was 42.1% down (2007: –11.1%). Leading indices in Central and Eastern
Europe recorded comparably sharp falls in value. In the reporting period, the cece Eastern
European index fell by 53.7% (2007: +10.5%), while the Russian rts lost a massive
72.4% (2007: +19.2%).
GfK shares: outperformed the comparable index
Even the heavyweights in the German stock market were subject to violent price fluctuations
and suffered substantial losses. After five successful years in succession, the leading index,
the dax, lost 40.4% of its value in the last financial year (2007: +22.3%) to stand at 4,810 points
at the year-end. In October alone, the blue chips fell by 22%, which is almost double
what had previously been the weakest week since the terrorist attacks in the USA in
September 2001. Investors reacted to the negative economic data and falling corporate pro-
fits by selling more shares.
GfK share key data
German Securities code 587530
isin (International Securities
Identification Number) DE0005875306
Reuters GFK.DE
Bloomberg GFK GR
Datastream D:GFKX
First Call GFK.DE
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GfK share price performance comparison
in 2008
From ipo to
31.12.20081)
GfK ag – 20.0 % + 42.9 %
dax – 40.4 % – 9.2 %
sdax – 46.1 % – 3.4 %
dj Euro Stoxx Media – 33.2 % – 33.5 %
1) Compared with the Initial Public Offering (ipo) of eur 15,41 at
the time of the stock exchange launch on September 23, 1999
(adjusted by the capital increase from corporate funds).
GfK_21
Having risen by 5.0% in 2007, the mid cap index mdax fell by 43.2% in 2008. The small
cap index sdax lost 46.1% of its value (2007: –6.8%) over the course of the year. The
Dow Jones Euro Stoxx Media, the index relevant to GfK listing international media and
market research stocks, fell by 33.2% (2007: –1.2%) in the same period.
Bond markets benefited from the turbulence on stock markets. In the course of the year,
the German bond index, the rex, which contains 30 fixed rate German government bonds,
recorded a gain of 10.1% (2007: +2.5%). Investors had more faith in fixed rate instruments,
which also corresponded with the decline in investors investing directly in shares.
According to the German Institute of Investors, the number of shareholders decreased from
4.0 million in 2007 to 3.6 million in 2008.
GfK shares closed the year down 20% at eur 22.02 (2007: –16.2%). Within the 50 sdax
stocks, the company ranked seventh best in terms of performance. For shareholders, who
acquired their shares as part of the ipo in 1999 and have held them since, their shares had
increased 42.9% at the end of 2008. This equates to an annual return on invested capital of
4.8%. In comparison with this, fixed rate German government bonds generated an average
return of 4.2% per year in the same period. In the same period, the average annual return
on a dax index certificate (1:1 copy) would be minus 1.0%, on an sdax index certificate it
would be minus 0.4% and on a Dow Jones Euro Stoxx Media index certificate, it would be
minus 3.7%.
GfK shares
GfK dax 30 Performance sdax Performance dj Euro Stoxx Media
1) All values are indexed to the GfK share price
GfK share price performance compared with the indices in 20081)
32
30
28
26
24
22
20
18
16
14
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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At the end of December 2008, GfK’s market capitalization stood at eur 791.6 million
(2007: eur 986.2 million). As a result, the company ranks number 5 in the sdax
(2007: number 13) and number 45 in the dax 100 (2007: number 63). In terms of
stock market turnover, GfK ranked number 30 in the sdax (2007: number 26) and
number 81 in the dax 100 (2007: number 77) in the reporting period. In the past financial
year, the average daily stock market turnover, at 32,000 shares, was lower than in the
previous year (2007: 48,000 shares).
Merger discussions: a significant impact on share price performance
GfK shares started 2008 at eur 27.49, but were unable to buck the trend on the international
stock markets and shares fell to eur 21 in January. Following publication of very good
provisional figures for 2007 at the end of February, the previous falls in the share price were
offset to some extent. The price of GfK shares rose to over eur 26. Six banks confirmed
their “buy” recommendations while one bank recommended holding the share. Citigroup,
the world’s second largest bank, recently included GfK shares in its coverage.
The second and third quarters of 2008 were dominated by merger negotiations with the
British market research company Taylor Nelson Sofres (tns). Share markets reacted very
positively to the announcement on April 29 that GfK planned to enter into a “merger of equals”
with tns. At this point a merger of equals was possible since both groups had roughly equal
market capitalizations. The GfK share gained 17% to eur 31.27 within a week, while the
tns share price increased by 23% in this period.
Highest and lowest share price Monthly closing price
34
32
30
28
26
24
22
20
18
16
14
12
Nov DezJan
21.81
Jul SeptFeb Mrz Apr Mai Jun Aug Okt
Highest and lowest value of the GfK share full year 2008 in eur
23.55
27.45
22.07
23.84
29.45
27.40
31.27
25.92
30.65
28.63
22.72
25.71
19.75
25.93
13.00
23.09
16.71
22.04
25.95
29.00
14.87
19.5117.82
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On May 5, the British media and market research group wpp expressed its interest in taking
over tns. The tns management immediately rejected its bid as too low. The tns share rose by
a further 26% in the course of the month, while the GfK share slipped slightly. The disparity
in the two companies’ performance at this time was detrimental to the shared notion of a
merger of equals.
On June 3, GfK and tns published additional detailed information on the planned merger,
which sent the group’s shares soaring on the capital market. On this date, the GfK was
the best performer in the sdax, gaining 7%. Stock market trading quadrupled to almost
180,000 shares. The French bank Natixis Securities subsequently included GfK in its
coverage and advised investors to “buy” GfK shares in its first recommendation.
On July 9, wpp made its first official takeover bid to tns shareholders. On the same day,
GfK and tns cancelled the joint merger agreement. In the meantime, the share prices of the
two companies had diverged by 56.7%. A merger of equals was no longer possible. GfK’s
management also announced that it was examining whether a cash bid involving a financial
investor to tns shareholders would be possible. While the price of the tns share climbed
sharply, the price of GfKs dropped back sharply to eur 19, then edged up to recover to eur 23
in the course of the month.
On August 27, the capital market rewarded the decision by GfK not to continue the dis-
cussions in connection with financing a possible takeover bid for tns. In pre-market trading,
the GfK share price rose by just under 6% to close at eur 24.50. One bank upgraded its
rating to “buy” and four further banks confirmed their “buy” recommendation. Analysts had
welcomed a merger, but were more sceptical about a takeover and the associated increase
in net debt.
The further deterioration in the financial crisis caused further price falls on the world’s
stock markets in the fourth quarter of 2008. GfK was also affected by this and the share
price fell back to eur 13. GfK subsequently stepped up its road show activities in the usa,
the uk and Germany and succeeded in adding three new banks to those covering GfK shares.
Cheuvreux, MainFirst and Merrill Lynch started their coverage with a “buy” rating and the
GfK share price subsequently climbed above the eur 20 threshold.
GfK shares
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Annual General Meeting resolves conversion to GfK se
At the Annual General Meeting in Nuremberg on May 21, 2008, GfK shareholders owning at
least 97% of the capital present at the meeting voted in favor of the resolutions proposed
by the Supervisory Board and the Management Board. Around 350 shareholders and proxy
representatives were there representing over 80% of all GfK shares. The key item put to
a vote was the change in form of GfK Aktiengesellschaft to a European company (Societas
Europaea) se. A resolution on authorizing the GfK Group to acquire and use its own shares
(share buyback program) was also voted on.
Dividend per share more than tripled since ipo
To ensure that shareholders benefit from the company’s positive performance, the GfK
Supervisory and Management Boards will propose a dividend of eur 0.46 per share to
the Annual General Meeting on May 20, 2009 (previous year: eur 0.45 per share). This
equates to a dividend yield of 2.8%. Based on the total of 35,947,363 shares entitled to a
dividend as of December 31, 2008, the total dividend will rise to eur 16.5 million (previous
year: eur 16.1 million). The ninth increase in the dividend in succession since the ipo
in 1999 demonstrates the confidence of the Supervisory Board and Management Board in
the company’s future growth. In this period, the dividend per share has increased by
318% in total.
GfK share indicators
Unit 2007 2008
High Euro 39.58 31.27
Low Euro 25.29 13.00
Closing price Euro 27.50 22.02
Average daily volume traded Stück 48,128 31,668
Number of no-par shares (weighted) Stück 35,682,085 35,884,308
Number of no-par shares as of Dec. 31 Stück 35,863,031 35,947,363
Stock market capitalization as of Dec. 31 Mio. Euro 986.2 791.6
Ranking in sdax
by sales
by market capitalization
Index weighting by market capitalization in %
26
13
2.5
30
5
3.4
Dividend1) Euro 0.45 0.46
Total dividend1) Mio. Euro 16.1 16.5
Earnings per share Euro 2.33 2.04
Free cash flow per share Euro 3.56 2.66
1) Applies to financial year 2008: proposal for the Annual General Meeting on May 20, 2009
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Private shareholders investing more heavily
The shareholder structure of GfK ag is balanced and global in its focus. With a 57.0% stake,
GfK-Nürnberg e.V. remains the largest single shareholder. The proportion of shares in free
float amounts to 43.0%. The Management Board and Supervisory Board hold 1.1% as in
the previous year. The distribution between institutional and private investors has shifted in
favor of private shareholders compared with the previous year. At the year-end 2008, the
share of institutional investors was 20.2% (2007: 25.1%) and the share of private investors
was 21.7% (2007: 17.3%). At country level, more than half the GfK free float is located in
Germany, a quarter in the usa, followed by the uk and France (with 8% each).
Successful start to the GfK Capital Market Day
In addition to the balance sheet press conference and the Annual General Meeting, GfK has
been present at
nine international investor conferences in Germany, the uk, France and the usa,
a dvfa analysts’ conference,
seven road shows in Germany, the uk, Italy, Canada, Austria and the usa,
eleven conference calls
and 139 one-to-one meetings with analysts, fund and sales managers.
In January 2008, GfK hosted a two day conference for investors, the GfK Capital Market Day,
for the first time and issued invitations to a series of lectures and one-to-one meetings.
A total of 35 analysts and institutional investors from Germany, France and the uk took this
opportunity for discussions with members of the GfK Management Board. The presentations
focused on market positions, regional profiles, customer relations, services, instruments and
methods as well as the company’s long-term strategies, targets and development potential.
For the fourth year in succession, GfK also hosted the Nuremberg stock market day for private
investors in cooperation with the Munich stock exchange and the Munich Investment Club.
Over 3,000 investors took this opportunity to talk to over 60 companies from the financial
sector and attend over 40 specialist presentations in February 2008.
GfK shares
Shareholder structure of GfK ag
GfK Association
57.0
Free Float1)
43.0
1) including the Management and Supervisary Boards of GfK ag (1,1 %), as at 31.12.2008
Shareholder structure (%) Breakdown of free float by country (%)
Other
2.8
Germany
56.3
UK
7.5
France
7.7
USA
25.7
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On the GfK website www.gfk.com in the “Investor” section, GfK gives detailed information
on current share price performance, dates and presentations, key data and financial reports,
the Annual General Meeting and the company’s corporate guidelines. The “gfk impuls”
newsletter for shareholders, published four times a year, provides additional information
such as the development of the corporate network, the latest survey results and develop-
ments in the market research sector.
Excellent communications activity
According to the results of the annual competition for the best annual report held by the
German financial magazine “Manager Magazin”, GfK ranks among the best. For the 14th
time, the financial magazine and the University of Münster analyzed the annual reports of
major German and European listed companies in the reporting year. In the sdax companies’
category, the GfK Annual Report moved up to 1st place from 2nd place in the previous year.
GfK also did well in the Capital Investor Relations Prize 2008, achieving 376.3 of a possible
500 points. It moved up from 3rd place to 2nd place in the ranking of sdax companies.
Financial magazine “Capital” and the Society of Investment Professionals in Germany (dvfa)
have been holding their Investor Relations awards since 1997. This year, 400 analysts and
fund managers, who often represent an entire team, provided 10,000 individual assessments
of 197 companies from the eurostoxx 50, dax, mdax, tecdax and sdax indices.
In the bird 2008 awards, the sixth survey carried out by financial and business magazine
“Börse Online” of private investors on the information and communication activities of the
160 largest listed German companies, GfK was ranked seventh in the overall listing covering
all indices. Within the sdax companies, GfK ranked 2nd with 64.5 points. The results are
based on 2,000 individual assessments of corporate dialogue on business development,
strategy and future prospects.
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GfK SpecialGfK Special
30 1934 – The founding of GfK People are at the center of the market > > >
34 1957 – Launch of household panel Making brand loyalty measurable
> > > 38 1970 – Launch of retail panel Spotlight on retail > > > 42 1984
– tv research takes off Establishment of a limited liability company > > >
46 1999 – Stock market launch A successful course on both bull and bear
markets > > > 50 2005 – Merger with nop World Stronger together > > >
54 2008 – A time of acquisition and expansion Well equipped for the
future
Professor Dr. Wilhelm Vershofen, Dr. Erich Schäfer
and Professor Dr. Ludwig Erhard were the founding
fathers of the Gesellschaft für Konsumforschung
(GfK). Wilhelm Vershofen placed the people in the
market at the center of his work – thereby creating a
milestone for contemporary, new market research
in Germany. He succeeded in making the voice of the
consumer heard.
Wilhelm Vershofen was convinced that market
research should not exist for itself alone, but rather
should be understood in the general context of
the market economy. Wilhelm Vershofen’s essay of
August 8, 1934, entitled “Broad-based consumer
surveying” was essentially GfK’s birth certificate.
One year later, the company was registered as an
Association based in Berlin, and Wilhelm Vershofen
became Chairman of the Association’s Management
Board, with Ludwig Erhard and Erich Schäfer as further
Management Board members. Wilhelm R. Mann
became the first President of the Administrative
Board, with Arthur Schütte, G. Mühlhens and Karl
Ries also appointed as members. Erich Schäfer was
soon recruited by the Handelshochschule Leipzig
(Leipzig Graduate School of Management), to be
succeeded on the Association Management Board
by Professor Georg Bergler.
Following the Second World War, he became the
driving force behind the re-establishment of the
Gesellschaft für Konsumforschung. An extract from
the company statutes documents the birth of insti-
tutional market research in Germany. It states that:
“The purpose of the company is to carry out continuous
research into the habits and behavior of consumers of
marketable goods within German territorial borders,
using appropriate measures and special surveys, and
to process the results of this research according to
academic principles, for the purposes of economic
practice and learning.“
Wilhelm Vershofen’s idea to obtain information about
consumer behavior through continuous consumer
surveys was completely new in Germany. No one had
ever collected data in this way before!
1934 – The founding of GfKPeople are at the center of the market
What else happened in the world 1934…
While GfK is beginning to research consumer markets, Hans Stuck
breaks the world motor racing record on the Berlin AVUS track in
the new car from Ferdinand Porsche. Porsche had developed the
car exactly one year earlier. The car was commissioned by clients
Audi, DKW, Wandere and Horch, which had come together to
form the “Auto Union” alliance.
A technical breakthrough: for the first time, a TV broadcast is
possible in Germany!
The Russian airship, CCCP-B6 (UdSSR-W6), embarks on its
maiden voyage under the direction of Umberto Nobile. It was
the most successful Russian airship.
Women’s World Games in London: for four days, the best female
athletes compete for victory at the fourth women’s world games.
The German team is ranked first overall out of 19 participating
countries.
With a win over Czechoslovakia in Rome, Italy become the new
football world champions.
A star is born: Donald Duck makes his first appearance in the
short film “The Wise Little Hen” in the USA.
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Professor Dr. Ludwig Erhard
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Whether ladies’ artificial silk stockings, pharma-
ceuticals, engine oils, the opinions of manual
laborers or vitamin supplements – GfK was soon
investigating opinions and markets across an
impressively broad spectrum.
The founders were convinced that consumers
themselves were the key factor to economic success,
because the fate of every product depends on the
attitudes, habits and purchasing decisions of con-
sumers.
Recording what consumers want is consequently
central to research interests. Ludwig Erhard, who
was originally an assistant to Wilhelm Vershofen, also
said that: “I cannot imagine that there is a single
person who is not constantly discovering new needs.”
Erhard was born in 1897, the year in which Kelloggs
Cornflakes and the diesel engine were invented.
After matriculating from school, he trained in busi-
ness in Nuremberg, joined the military and was
badly wounded in the First World War. After the war
ended, he studied at Nuremberg Handelshochschule
(commercial college) and graduated with a business
diploma. He also took Business Studies and Sociology
in Frankfurt and in 1925, he received his doctorate
for a PhD thesis entitled “the nature and content of
value as a unit”.
As early as 1932, it was Ludwig Erhard’s aim to foster
the production of consumer goods. An opponent of
protectionism, he promoted free market pricing and a
competitive economy. Later, he became a symbol of
post-war Germany’s success story, of the free market
economy and the rebuilding of Germany. As Erhard,
the future Minister for the Economy and Chancellor,
said: “Due to its high level of productivity, the market
economy will always be best placed to satisfy
intellectual and cultural needs as well as to produce
goods.”
GfK grew fast. After only one year of existence, the
Association had 17 members, growing to 150 eight
years later. Today, the Association boasts over
600 members, primarily companies, and is dedicated
to fostering market research.
Handwritten minutes taken by Ludwig Erhard for the GfK Annual General Meeting on December 4, 1935.
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It all started with the Henkel company. As early as
1956, GfK was carrying out regular surveys for the
company, and these were so successful that Henkel
awarded GfK the first household panel contract
in 1957. A total of 1,000 households were asked to
report regularly on their purchasing behavior.
It was the time of Germany’s economic miracle. Up to
then, no one had heard of panel research. However,
Henkel was convinced of the usefulness of this type of
survey, which required a particular discipline on the
part of the panelists, because they had to complete a
daily diary sheet consistently and regularly. Divided
into 53 calendar weeks, it was a kind of tear-off diary.
All purchases were noted in the diary pages themselves.
Housewives were first asked to complete each diary
page consistently, and second, reminded to send the
data promptly to GfK. This type of panel survey made
it possible for GfK to observe both the overall market
and individual groups of people with precision.
However, the quantity of data and the level of detail
demanded by Henkel created problems for the sorting
and counting equipment, because it was not designed
to cope with so many pages and such frequent use.
Luckily, Henkel had a modern tabulating machine in
Dusseldorf, and was therefore in a position to analyze
the data itself. This made Henkel the first GfK client to
work with raw data!
In its first year, the panel expanded from the initial
1,000 conscientious households to 1,500 households,
and today, it comprises 30,000 households. Professor
Dr. Gerhard Kleining also remembers the very high
level of overall discipline of the panel in 1957.
Born in Nuremberg in 1926, Gerhard Kleining studied
in Erlangen and in 1957, was given the opportunity to
join Reemtsma as the Manager of Market Research.
He was appointed by Max Pauli, a member of the
Reemtsma Management Board who had previously
set up the McCann Erickson subsidiary in Hamburg.
Gerhard Kleining describes his first impression of the
cooperation between Reemtsma and GfK as follows:
“Max Pauli had convinced Esso and Henkel, his former
advertising accounts, to take part in GfK’s advertising
effectiveness research together with Reemtsma. The
1957 – Start of household panel researchMaking brand loyalty measurable
What else happened in the world in 1957…
While people continue to regularly submit their purchase data,
something sensational is happening. Some think a taboo has been
broken, while others are interested primarily from a scientific
perspective: English TV shows a live broadcast of a birth for the
first time, filmed at the Withington hospital in England. The
screening is not stopped, even when a Caesarean is deemed
necessary.
John Lennon and Paul McCartney meet for the first time at a
church festival in Liverpool. They would later go down in music
history, together with George Harrison and Ringo Starr, as the
Beatles – the most famous band of all time.
Sailing training ship, the Pamir, sinks on the way from Hamburg
to Buenos Aires, having been hit by a strong hurricane south-west
of the Azores.
Russia sends the first satellite, Sputnik I, into space. For the first
time, humans succeed in sending an artificial satellite into orbit
beyond the earth’s atmosphere – and with a flight speed of 24,500
kilometers per hour to boot!
Leonard Bernstein’s musical West Side Story premieres at the
New York Winter Garden Theatre.
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Professor Dr. Gerhard Kleining
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question was: is billboard advertising really that
important for cigarettes, petrol and washing powders?
I was the manager of the research department at
Reemtsma and had just returned from the USA.
Georg Bergler appeared for the presentation with
his then assistants, Robert Radler and Werner Ott,
trailing behind him at a fair distance carrying large
briefcases. The boss did the explaining, and the
assistants did the assisting. The hierarchical nature
of things was very striking.”
Kleining summarizes the findings of the joint study
as follows:
“The results of the survey, which looked at the pre-
sumed effectiveness of the various advertising media,
showed that the most effective way of advertising
was to give away free samples. At the time, everyone
was very keen to receive free cigarettes.”
GfK later developed the “Familien-Lebenswelten”
(family social groups) segmentation method together
with Professor Dr. Kleining. Given that the circum-
stances of individual German households determine
their non-food budgets, the “family social groups”
tool helped to classify the population according to
typical living circumstances.
In his published work, Gerhard Kleining furthered
sociological and methodological debate. His market
research activities included extensive surveys with
very large samples, both within and outside Germany.
From 1968 onwards, he was an associate lecturer
at Hamburg University’s Institute for Sociology. He
was appointed Professor of General Sociology in
the Department of Philosophy and Social Sciences
in Hamburg in 1976, a position which he held until
his retirement in 1992.
Five questions to Gerhard Kleining
What do you consider to have been the most forma-
tive event of your youth?
The end of the war and the rebuilding of Germany,
and my student days.
What was the first thing that you bought with your
own money?
A cream cake and a cup of coffee in Café Mengin in
Erlangen out of the proceeds from a money-back
offer.
What brands still have significance for you today
because your parents used them?
VIM, ATA.
What do you think is the greatest change to have
occurred between 1957 and today?
The fact that democracy and freedom of the press
have survived and scandals can be made public, even
if there are still limits. The most important change for
society has been the development of capitalism.
What does GfK mean to you personally?
First in my capacity as a client and then in coopera-
tion with research colleagues, I have valued the fact
that my GfK colleagues were interested in and pro-
moted basic research. I congratulate you on having
given us the opportunity of creating something which
unites theory and practice to mutual advantage.
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Back in 1970, the big name in retail panel research
was not yet that of GfK, but of another well-known
market research company. This company made a
name for itself particularly in the areas of food, luxury
items, cosmetics and drinks – not just in Germany,
but also in America, Europe and Asia. Despite the
strong competition, GfK wanted to establish itself in
this field of research, and on January 1, 1970, the
company founded the retail panel research working
group under the leadership of Klaus Hehl and Bern-
hard Jackel and eight other members of the GfK staff.
“The segments that have been installed so far in
the market research department – the distribution
index and marketing intermediary panel – will be
outsourced on January 1, 1970, with the aim of
creating a new research department: GfK retail panel
research”, announced a staff information bulletin at
the end of 1969.
The aim was clear: GfK wanted to establish itself
within the food retail segment by monitoring
fast-moving consumer goods. Two instruments were
set up for this purpose: a leader panel and a basis
panel with the purpose of monitoring selected fast-
moving consumer goods.
It was only several decades later that the strategic
decision was taken to invest in the non-food instead
of the food retail markets.
Today, analysts describe this non-food retail panel,
which is run by the Retail and Technology sector, as
the star of the GfK Group.
Following the tradition of German branded com-
panies – namely Agfa and Kodak – GfK began to set
up a photo panel in 1970, which was closely followed
in 1972 by the car panel for car body care products.
After these first attempts to monitor selected non-
food markets, visible success was finally seen in the
mid-1970s.
Gunter Redwitz, born on June 24, 1944 and now
a member of the Retail and Technology Board and
General Manager Retail and Technology, was the
project leader of the non-food panel at that time.
He recalls:
“After a visit to the International Radio Show in Berlin,
I tried to convince Bernhard Jackel that we should
start monitoring selected product groups from the
1970 – Retail panel research is bornRetail in focus
What else happened in the world in 1970…
Brazil became the new world champions at the football World Cup
in Mexico City.
China sent its first satellite, the Dongfanghong 1, into space.
Paul McCartney left the Beatles.
Gary Gabelich succeeded in traveling at more than 1,000 kilometers
per hour in a land vehicle – his rocket car called “Blue Flame” – in
the US State of Utah.
Americans celebrated “Earth Day”, which is now a secular holiday
in over 175 countries, for the first time. The day is intended to
encourage people to think about their buying behavior.
The TV broadcasters ARD and ZDF used a map of Europe without
borders for the first time in their weather forecasts. Until then, the
broadcasters had displayed the borders of the German Reich of
1937 on their weather maps.
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consumer electronics segment. My persuasive efforts
were rewarded after several months, when we were
able to start producing a concept for the set-up of the
electronics panel. In contrast to the food segment,
where the preference was for category-led research,
we decided from the outset to monitor individual
models in the consumer electronics panel. This new
methodology represented a milestone, and it had
wide-reaching consequences. Only the eight-digit
product manufacturing code prevented the more
versatile use of the information on product features
and models for many years.”
The differences between the non-food and food
markets are considerable. In particular, not everyone
involved in the non-food markets was automatically
appreciative of market research. Back then, one
leading German manufacturer of consumer electronics
proclaimed that: “We don’t need market information,
I am the market.” Gunter Redwitz explains:
“Unlike in the food segment, which advanced strate-
gically, much of the progress in the non-food segment
was down to chance. After the monitoring of consumer
electronics, the next step happened to be into the
area of small electronic appliances, because the Braun
company had expressed its interest. Monitoring of
large electronic appliances came only years later,
because there was competition within the company
from the household panel, which was already moni-
toring large electronic appliances, and this initially
prevented the retail panel from expanding.”
The retail panel had to support itself economically at
the beginning of the 1970s – and it succeeded in this.
New markets came along: electronics, power tools
and do-it-yourself, office equipment and IT products.
The international suppliers that shape the technical
consumer good markets, such as Sony, Panasonic,
Toshiba, Pioneer and TDK, contributed to advancing
the internationalization of retail panel research in the
non-food markets. Gunter Redwitz reports:
In the 1990s, when research methods using external
salaried employees were superseded by electronic
data collection, Retail and Technology achieved
another breakthrough: data collection is now possible
at short intervals, and can now be carried out on a
weekly basis instead of every two months. Gunter
Redwitz explains the positive effects:
“This change had far-reaching consequences in terms
of how receivers of market information supplied by
GfK Retail and Technology could use that information.
Whereas the previous two-monthly data collection,
which was delivered four weeks later, predominantly
provided a look back at the market, weekly monitoring,
which is available one week later, enables a proactive
response to the movements in the market.
All of these developments were accompanied by
radical changes in production and reporting.
Whereas producing reports for the clients was often
still a difficult task in the 1970s, Retail and Techno-
logy now has a worldwide production and reporting
platform in its “StarTrack” system, which allows
it to produce reports in line with global benchmark
standards for every country in the world, and to
present a variety of features and ranges, both indi-
vidually and together.”
Today, the GfK Retail and Technology sector analyzes
retail data in more than 80 countries. The company
works for globally active manufacturers of technical
consumer goods in the market segments of consumer
electronics, information technology, office communi-
cation, photo, optics, large and small electronic appli-
ances, telecommunications, entertainment media,
software, tourism and textiles.
Questionnaire Gunter Redwitz
What do you consider to have been the most formative
event of your youth?
Moving from Hof to Nuremberg after taking the
Mittlere Reife (high school leaving certificate), and
starting a new school.
What was the first thing that you bought with your
own money?
I bought presents for my mother.
What brands still have significance for you today
because your parents used them?
The brands Nivea, Persil and Tempo.
What do you think is the greatest change to have
occurred between 1957 and today?
The establishment of “non-food” retail research.
What does GfK mean to you personally?
I feel a deep attachment to the company, because
my life’s work has been devoted to the establishment
of GfK “non-food” retail research and the further
development of the GfK Retail and Technology sector.
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It was less of a strategic consideration than a prag-
matic decision. GfK established a GmbH – limited
liability company – and market research activities were
then removed from the Association and integrated
into the company. The reason for this was that GfK
needed a different legal form in order to tender
for TV research contracts, to avoid accusations of
an unfair competitive playing field which might
cause bids to fail. As an Association, GfK was treated
differently from a fiscal perspective than other
trading companies. The management response
was to establish the GmbH, which was to become
the predecessor of today’s SE joint stock public
company.
GfK was successful and a year later, it won contracts
for TV research from Germany’s public service
broadcasters, ARD and ZDF, which had previously
been carried out by Teleskopie. And with this, the
Media sector was born!
Since 1985, GfK has been carrying out continuous
quantitative TV audience research in Germany and
since 1988, it has been doing the same for the AGF
(TV research consortium).
Dr. Hansjörg Bessler, born on May 4, 1939, head of
media research and later press spokesman of
Germany’s Süddeutscher Rundfunk (SDR), recalls
GfK’s early attempts at TV research.
“It was 1974. I had been media researcher for
SDR since autumn 1970, and incidentally, I was
the very first media researcher in the whole of the
ARD network. We were on the lookout for alter -
native methods to replace the Infratest and Infratam
audience research conducted for ARD and ZDF in
1963/64. In 1974, when we were looking at which
institutes to invite to tender for continuous audience
research for ARD and ZDF from 1975 onwards,
I remembered that GfK was a serious research
institution with a specialist household panel.”
At the time in 1974, GfK attempted to use a diary
panel, but this method could not compete with the
new measuring system from Teleskopie, which was
an alliance of Infas and the Institute for Demoscopy
Allensbach. The convincing argument was the new
technology, which Hansjörg Bessler describes as
follows:
“Infas had commissioned Heidelberg-based Teldix, a
BOSCH subsidiary at the time, to develop a measuring
device which would register and store data on the
individual TV consumption of household members at
the touch of a button, ready for overnight reporting
1984 – TV research takes off The establishment of a limited liability company
What else happened in the world in 1984…
The remains of a type of primate who lived 33 million years ago
are discovered to the south west of Cairo: they are identified as
belonging to a type of primate, Aegyptopithecus Zeuxis, also known
as the “Dawn Ape”, who is an ancestor common to both man and ape.
Californian computer company, Apple, launches the Macintosh.
The Beijing leadership embarks on a program of extensive eco-
nomic reforms aimed at establishing a centrally planned market
economy, which would give industry more autonomous responsibilty.
The term “cyberspace” is invented and makes a first appearance
in “Neuromancer”, a novel published in 1984 by American sci-fi
author, William Ford Gibson.
Ronald Reagan elected President of the USA.
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Dr. Hansjörg Bessler
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on the telephone via modem. This was a research
variant which had not been put into continuous
practice anywhere as yet, but which was specifically
mentioned as a possible alternative in the call to
tender”.
However, GfK did not give up and ten years later, in
1984, the company succeeded in winning the tender.
Eye witness Hansjörg Bessler recalls this success:
“The decisive factor in the successful outcome for
GfK was presumably, on the one hand, an excellent
reputation untarnished by any party political opinion
research as a tried and tested German panel institute
delivering reliable consumer research, and on the
other, the fact that unlike in 1974, GfK now offered
Telecontrol measuring technology trialed in Swiss
field tests, which also incorporated comprehensive
registration of all TV consumption and functional
overnight reporting. In 1984, GfK had another fact
in its favor, which would later prove invaluable in
the practical application of TV audience research:
a system capable of processing and delivering
meaningful analysis of the massive volumes of panel
data growing at a daily rate.”
Today, GfK is already on its sixth contract with the AGF,
which is an amalgam of the ARD, ProSiebenSat.1
Media AG, Mediengruppe RTL Deutschland and ZDF
networks. The TV panel comprises 5,640 households
with almost 13,000 members. This means that the
TV consumption habits of 72.20 million individuals
or 35.30 million TV households can be measured.
Five questions to Hansjörg Bessler
What do you consider to have been the most forma-
tive event of your youth?
- my first love.
What was the first thing that you bought with your
own money?
- I presume it was sweets.
What brands still have significance for you today
because your parents used them?
- because of what? None!
I don’t drive a Mercedes because my Dad drove one
and I don’t read the Stuttgarter Zeitung newspaper
because my parents did, although, unlike me, they
never actually lived in Stuttgart. (There are many
“old” company and product brands which meant
something to my parents, but which, for a variety of
reasons, still mean something to me. For example,
classic Swabian brands like the Breuninger depart-
ment store, Böhm gourmet foods, Birkel pasta and
BOSCH, to name a few just starting with the letter B
which spring to mind on the spur of the moment. By
the way, with the exception of BOSCH, the owners
of all the other companies have meanwhile changed,
although the brands have retained their significance.).
What do you think is the greatest change to have
occurred between 1984 and today?
- for me personally? Getting older.
- for the human society? Probably, the Internet.
What does GfK mean to you personally?
- That’s a long story.
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GfK grew. And so did its targets. A simpler way of
acquiring capital and a high degree of flexibility
were essential attributes for the further pursuit
of GfK’s high growth targets. So GfK made itself
attractive to investors, advanced the process of
internationalization and accelerated the development
of pioneering technologies.
This is why GfK needed to go public, since this was a
precondition for the company to exploit the dynamic
and future-oriented opportunities in the increasingly
global and more complex markets. GfK was aiming
to strengthen its global position and develop new
market potential. The principal initiators and driving
forces behind the stock exchange launch were Super-
visory Board Chairman at the time, Peter Zühlsdorff,
and CEO, Professor Dr. Klaus L. Wübbenhorst, who
identified the financing opportunities needed.
Going public also facilitated expansion into new
markets, and so one company like GfK was trans-
formed into an international service provider
expected to have a global presence. Added to this
was the fact that global competitors had already
taken this step and were listed on the stock exchange.
GfK resolved to raise its profile in its major inter-
national markets. The stock exchange launch itself
was originally planned for the year of the millennium,
but because of the company’s very positive business
development in the first six months of the year
before, this was brought forward and so at 09.09 on
September 23, 1999, GfK was launched on the stock
exchange. That morning, GfK shares were listed for
the very first time on the Frankfurt stock exchange
at a price of EUR 20.00, which was EUR 1.50 higher
than the subscription price. At the time of the stock
exchange launch, Kyoichi Hirano, born July 21,
1941, was Representative Director, President of
GfK Marketing Services Japan Ltd. Hirano, who is
today advisor to the Japan Group, and who also holds
the posts of Representative Director, Chairman of
GfK Marketing Services Japan Ltd., Representative
Director, President of GfK Optics Japan KK and
Representative Director, President of Encodex Japan
Ltd., recalls:
“As a result of the stock exchange launch, the value
and prestige of GfK went up, even in Japan. I had
confidence in this corporate decision and was proud
to work for GfK. For me personally, the stock exchange
launch meant a show of confidence in GfK, because
1999 – Stock market launchA successful course on both bull and bear markets
What else happened in the world in 1999…
While GfK goes public, the European Monetary Union is born
and the euro is introduced in eleven EU countries, although until
2002, it can only be used for cashless payments.
Ford takes over Volvo’s passenger vehicle division for a cost of
eleven billion Deutsche Mark.
Unlucky German hens: Germany’s constitutional court decrees
that they can continue to be kept in battery cages, only with a bit
more space.
French aid organization “Médecins sans frontières”, founded in
1971, and German author Günter Grass win the Nobel prizes for
peace and literature respectively.
In the whole of Europe and western Asia, millions of people gather
to watch the last total eclipse of the sun of the millennium.
According to UN statistics, the world population breaks the
6 billion barrier.
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Kyoichi Hirano
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there was no listed market research institute in
Japan at the time. I felt even more responsible in
my job, because now, I had a responsibility to the
shareholders!”
GfK was also thinking of its employees when it made
the decision to go public. Investing in the future
would not only increase job security, but raise the
prestige of the entire group. Kyoichi Hirano recounts:
“My personal prestige increased, because I was
working for a German listed company and I well
recall that when talking to my German colleagues,
we never failed to check out the share price. And
of course, we were absolutely delighted when it had
gone up.”
What is important to GfK is to make stakeholders out
of its employees, because the success of each and
every individual goes towards determining the price
of the company’s shares. And staff can also share in
the company’s success by buying shares, naturally, at
a preferential rate.
Kyoichi Hirano reports:
“Naturally, I also bought shares. This was a matter
of course: how could anyone represent a GfK group
company without having invested in it personally?
Of course, at the moment, I think the shares are
under-valued. Even in the knowledge that we are in
the middle of a crisis, it is clear that to be successful,
our customers will need information. Obtaining this
information is the core competence of GfK and this
is why I personally wish that the analysts would
sometimes be a bit less careful.“
Five questions to Kyoichi Hirano
What do you consider to have been the most
formative event of your youth?
My wedding and the birth of our child.
What was the first thing that you bought with your
own money?
A lighter for my father and a purse for my mother.
I presented my parents with these gifts at a meal
I had invited them to with my first earned money.
What brands still have significance for you today
because your parents used them?
Sharp electronics and Toyota cars.
What do you think is the greatest change to have
occurred between 1999 and today?
Before the stock exchange launch, the name GfK
was not so well known here in Japan. But after
going public, confidence in GfK grew along with its
reputation and it became easier to acquire business.
What does GfK mean to you personally?
GfK has given me the strength and energy to work
with so many different people, ranging from the
young to the more experienced, our employees and
our customers. What was also exciting was being
allowed to focus on employee management. When
I returned to Japan from Germany, I came back with
the responsibility for expanding GfK in Japan, and
this was a very great moment in my life.
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On June 1, 2005, GfK acquired market research
group NOP World. The company was ranked ninth in
the global list of market research organizations at the
time, and its arrival enriched GfK by 47 companies
and more than 1,500 colleagues.
Elizabeth Nolley, born June 28, 1968, is one of these
colleagues. Today, she holds the post of Vice President,
Marketing Communications, GfK Custom Research
North America. At the time of the takeover, she was
Associate Vice President, Marketing Communications,
NOP World, having joined the organization just a few
months prior. She told us:
“When I first heard that NOP World was merging
with GfK, I had mixed feelings. I was excited about
the idea of combining with another industry leader in
order to form a bigger even better organization and
I was thrilled that we were going to have a parent
company focused on the business of market research.
However, I was still nervous about losing my job.”
She wasn’t the only one worried. Many feared for
their jobs and wondered what would happen.
“We didn’t know where the acquisition would lead
us. For many of us, GfK was an unknown entity. So
we weren’t sure how the new organization would be
run, or how our culture and operations would merge
with that of our new parent company. However, it
didn’t take long to see that joining the GfK family was
a great move for NOP World.”
With this, Elizabeth Nolley was voicing the thoughts
and feelings of her colleagues.
Most of NOP World’s staff of 1,500-strong were
based in the UK, the USA and Italy. The US and
German monopoly commissions carefully reviewed
the merger and immediately after approval was
granted, GfK began work on the integration of
NOP World. Project teams comprising managers
from GfK as well as NOP World were set up. These
teams were tasked with creating a new organizational
structure that quickly combined the GfK and NOP
subsidiaries for future success. The remit included
optimization of the service offering, as well as all
aspects of operations and administration. But what
of the general mood among the staff? Elizabeth
Nolley recalls:
“Folks were very nervous and apprehensive at the
mention of the words ‘merger’ or ‘acquisition.’
When it became clear that GfK would become our
new parent company, there was a big sense of relief.
GfK was known as a people-focused company with a
strong global presence, great expertise and products,
who would appreciate what we had to offer. As
such, we knew we’d get more than a fair chance to
succeed.”
The amalgamation of GfK and NOP World was
very successful and produced a group that became
quickly established as the world’s fourth largest
market research organization. Today, the group
offers market research services in over a hundred
countries and out of the 10,000 employees, 80%
work outside Germany.
At the time of the merger, NOP World annual sales
were about half those of GfK. Together, the two
organizations broke the billion euro sales barrier in
record time.
Elizabeth Nolley tells us what her colleagues thought:
“We knew integrations of this size are never easy.
But today, we are pleased to be part of a client-
focused, employee-friendly company with such a
great reputation around the world.”
NOP World employees were delighted to become
part of a global leader that is not only well-known for
its professionalism, but also for its fairness. When
2005 – The merger with NOP WorldTogether we’re strong
What else happened in the world in 2005…
In Italy, a comprehensive smoking ban came into effect in
restaurants and public buildings.
The crude oil price reached a record high in more than 20 years
with a barrel (42 US gallons or 159 liters) costing 47 dollars.
In Toulouse, South Western France, the Airbus A380 – the world’s
biggest passenger aircraft – was introduced.
Cardinal Joseph Ratzinger was elected Pope, thereby becoming
the first ever German Pope. He took the name Benedict XVI.
The heat shield was damaged upon launch of the Discovery space
shuttle. The crew succeeded in carrying out a risky emergency
repair in space. On August 9, the shuttle landed safely at Edwards
Air Force Base in California.
Team Renault motor racing driver, Fernando Alonso, was 24 years
old when he became the youngest Formula 1 World Champion ever.
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Elizabeth Nolley
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people realized that the new owners welcomed the
staff and respected the local culture, they were finally
convinced that the merger was good news for every-
body.
Elizabeth Nolley concludes:
“We are proud that, in a relatively short period of
time, we’ve helped to raise GfK’s profile as a leading
full-service provider of syndicated and custom
research in the US and Canada. We’re truly excited
about the possibilities that our new “orange world”
holds for our clients, employees and shareholders.”
Questionnaire Elizabeth Nolley
What do you consider to have been the most
formative event of your youth?
While many things have shaped the person I continue
to become, I’d have to say that it was the summers
I spent as a little girl at my Grandmother’s in Virginia
that really helped to shape me. Things in the rural
South were very different from the suburban lifestyle
that I was used to growing up in New Jersey. But
being with my Grandma, Grandpa, uncles, aunts and
cousins all summer long taught me the value of
working hard, taking time to rest and play when the
sun was high, connecting with your Higher Power
regularly, being self-reliant (my Grandma either caught,
grew or made almost everything herself, including
soap!), and the importance of fresh air and fresh
food. I also learned how to cook a lot of things I still
make today!
What was the first thing that you bought with your
own money?
I was about 13 and my brother and I had just gotten
a brand new hi-fi record player for Christmas. So
with the birthday money I received the following June
I purchased Earth, Wind and Fire’s “Raise” album,
Kurtis Blow’s self-titled album and the “Controversy”
album by Prince.
What brands still have significance for you today
because your parents used them?
My parents were both school teachers, so to save
money they didn’t buy a lot of brand name products.
But I can remember in my parents’ house, as well
as my grandparents’ house, there was always Clorox
bleach in the bathroom, Karo syrup in the kitchen
cupboard and Arm & Hammer baking soda in the fridge
and freezer – and all three continue to be staples in
my home today.
What do you think is the greatest change to have
occurred between 2005 and today?
Externally, our economic and political environment
has changed significantly since 2005. Internally,
GfK’s profile as a leading, full-service provider of
market research solutions here in North America has
been raised significantly in a relatively short period
of time.
What does GfK mean to you personally?
For me, GfK is a place where the “best practice” wins,
regardless of the country, division or employee who
suggests them. This global, knowledge sharing culture
provides each of us as employees with tremendous
opportunities to hone existing skills as we learn and
grow. GfK is part corporate and part entrepreneurial,
which means it’s an extremely dynamic, creative
place to work – and one that is constantly striving
to find ways to make things better for clients, share-
holders and employees alike.
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2008 has been an eventful year for GfK and a time
of acquisition and expansion. In June 2008, the Super-
visory and Management Boards of the GfK Group had
agreed a merger of equals with the Board of Directors
of the Taylor Nelson Sofres group. One month later,
the agreement was cancelled by mutual agreement
and GfK subsequently attempted to acquire Taylor
Nelson Sofres on the basis of a pure cash offer with
help from an investor. However, in August 2008,
GfK finally withdrew from the takeover. The financial
terms and conditions had not enabled the company
to make an acceptable bid for Taylor Nelson Sofres,
in addition to which, the move was not in the best
interests of GfK shareholders.
However, 2008 continued to be a year of acquisitions
and expansion. GfK recorded organic growth of
5.5% to total sales of EUR 1,220.4 million, with the
adjusted operating result rising to EUR 158.7 million
and the margin at the forecast level of 13.0%.
GfK recorded particularly dynamic results in the
growth regions of Central and Eastern Europe, Asia
and the Pacific and Latin America. The strategy of
acquisitions as the basis for organic growth has also
paid off.
In April 2008, GfK welcomed its 10,000th member
of staff.
GfK is particularly proud of another event which
occurred in 2008: the professional association
of German market researchers awarded the 2008
innovation prize to a tool developed by GfK
itself, HILCA (Hierarchical Individualized Limit
Conjoint Analysis). The beginning of 2008 saw the
restructuring of the five former business areas of
Custom Research, Retail and Technology, Consumer
Tracking, Media and HealthCare into the three
sectors of Custom Research, Retail and Technology
and Media. The new structure facilitates even
better optimization of GfK’s cross-field services,
such as online panels, data gathering and survey
methodo logies. In addition, the new structure and
amalgamation of core competencies enables GfK to
sharpen its profile in the market still further. These
core competences and the sound basis of the GfK
Group will also sustain the company’s future growth.
And when it comes to growth, this is not only
im portant to the big corporates, but to children as
well, such as Johanna (6) and her sister Kathrin (8).
Children are our future. And they are the reason
why in 2008, GfK carried out a survey on behalf of
the association of toy and game manufacturers
and retailers to find out what children really want.
The clear findings of the survey of six to twelve
year-old youngsters carried out for International
Children’s Day were that most of all, children want a
pet and a computer. They also said they wanted to
2008 – A time of acquisition and expansion Well equipped for the future
What else happened in the world in 2008…
Indian corporation Ratan Tata produces the “Nano”, the
world’s cheapest car, which sells for the equivalent of
EUR 1,700.
German chancellor Angela Merkel is the first politician in ten
years to be added to Madam Tussaud’s waxworks museum,
where she stands next to George W. Bush and Tony Blair.
The 36 kilometer-long (approx. 27 miles) Hangzhou bridge
connecting the Chinese towns of Shanghai and Ningbo is officially
opened. It is currently the longest sea bridge in the world.
Barack Obama takes up residence in the White House as the
USA’s first black President
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spend more time with their parents on outings and
vacations. Money and school marks came in as less
important, while an amazing 21.9% responded to the
question: “What would you like most?” by naming an
animal. Next came computers, with 18.6% putting
this at the top of their list and ranked third with just
under 8% was the wish for a happy family with no
arguments or divorce. Question two was: “What
activities would you like to do with your Mum and
Dad?”, and to this, almost 30% said they wanted
to go on holiday with their parents, while around
26% wanted their parents to take them to a leisure
park or on outings. This goes to show that it is their
parents’ time and attention which children need
most. And here, Johanna and Kathrin are in agree-
ment with their contemporaries. To find out what
else they would like, read the questionnaire below.
Five questions to Johanna and Kathrin
What’s really important to you?
Spending lots of time with our parents and going to
the FunPark more often.
What do you buy with your own pocket money?
Magazines, CDs, toys and games.
Do you know the names of any particular food
products or toys and games?
Fruchtzwerge jelly beans, Kinderpinguin biscuits
and Langnese ice cream. And we love Lego and
Playmobil.
What do you think is very important for the world
today?
World peace and everyone having enough to eat.
That the ozone hole doesn’t get bigger and climate
change doesn’t get worse.
Have you ever heard of GfK??
Yes. You’re GfK, aren’t you?
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1. The economy 60
2. Economic and financial development 62
3. Research and development 72
4. Human Resources 73
5. Organization and administration 75
6. Purchasing 75
7. Environmental protection 75
8. Corporate communications and marketing 75
9. Opportunity and risk position 76
10. Major events since the end of the financial year 81
11. Outlook 82
Management report of the GfK GroupManagement report of the GfK Group
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1. The economy
1.1 Overall economic development: global recession
Growth in the global economy weakened considerably in 2008.
Year-on-year, global gdp increased by 3.8% in 2008 compared to
4.9% in 2007.
The real estate crisis in the usa triggered severe turmoil in the
fi nancial markets. The industrialized nations in particular are
reporting almost zero growth. However, economic development
in the three regions Central and Eastern Europe, Latin America
and Asia, especially China, positively infl uenced average growth
worldwide.
The following overview shows the development of the national
economies in the regions and countries important to GfK’s
operations over the past three years as well as for 2009:
Despite the economic downturn, germany recorded growth for
the fi fth year in a row for 2008 as a whole. Although at 1.3% the
increase in gdp declined again, there was a further recovery in
the labor market. The rate of unemployment dropped from 8.7%
in 2007 to 7.5%. Nevertheless, the propensity to buy fell in the
fi rst half of the year as a result of higher gasoline and heating oil
prices as well as the increase in some food prices. The trend in
the propensity to buy was not positive again until the end of the
year when energy costs fell and consumers had more disposable
income.
gdp growth 1)
In % 2006 2007 20082) 20093)
Germany 3.04) 2.54) 1.34) – 2.54)
France 2.2 2.1 0.8 0.1
uk 2.5 3.0 0.7 – 1.8
Euro-zone5) 2.9 2.6 1.0 – 0.8
eu 276) 3.2 2.9 1.3 – 0.3
Russia 4.0 8.1 6.9 3.0
Central and Eastern Europe 6.74) 4.4 3.0 2.0
usa 2.9 2.0 1.2 – 2.0
Latin America 5.0 4.5 4.0 3.0
China 10.8 11.9 9.4 6.5
Japan 2.2 2.1 0.1 – 1.0
Asia and the Pacifi c4) 7.6 7.2 6.2 6.4
World6) 5.0 4.9 3.8 1.9
Sources:
1) diw “Principles of Economic Development 2009/2010”
2) Estimate
3) Forecast for Economic Development 2008/2009
4) International Monetary Fund (imf)
5) without the Slovak Republic
6) The Euroframe Autumn Report 2008
Consumer climate in Germany: a rollercoaster ride 1)
Month Opinion trend
Propensity
to buy2)
Change
from
previous
month in %
Consumer
climate
indicator3)
Change
from
previous
month in %
January Consumer mood
wavering
– 8.8 + 1.9 4.5 + 2.3
February Consumer cli-
mate – Spring not
yet in sight
– 15.0 – 6.2 4.5 +/– 0
March GfK revises
consumer expec-
tation to 1 percent
– 10.2 + 4.8 4.6 + 2.2
April More consumer
confi dence
again
– 4.7 + 5.5 4.6 +/– 0
May Fears of infl ation
dampen consu-
mer confi dence
– 20.4 – 15.7 5.0 + 8.7
June Falling consumer
confi dence curbs
growth forecast
– 23.7 – 3.3 4.3 – 14.0
July Infl ation keeps
sending consumer
climate into fall
– 26.2 – 2.5 3.4 – 20.9
August Poor prospects
for the economy
continue to curb
consumer climate
– 27.9 – 1.7 1.8 – 47.1
Septem-
ber
Despite current
stabilization.
no growth in con-
sumption in 2008
– 12.8 + 15.1 1.5 – 16.7
October Consumer climate
despite fi nancial
crisis
– 18.2 – 5.4 1.7 + 13.3
Novem-
ber
Moderately
rising consumer
mood despite
adverse economic
conditions
– 6.7 + 11.5 1.9 + 11.8
Decem-
ber
Stable start to
consumer climate
into new year
– 6.3 + 0.4 2.1 + 10.5
1) These fi ndings are from the comprehensive “GfK consumer climate maxx” survey con-
ducted since 1980 each month on behalf of the eu Commission. In the fi rst half of the month
around 2,000 representatively selected people are asked about their perceptions of the
overall economic situation, their propensity to buy and their income expectations.
2) The consumer confi dence or propensity to buy indicator is based on the following question
to consumers: Do you think it is advisable to make purchases at the moment? (good time
– neither good time nor bad time – bad time).
3) The consumer climate indicator describes private consumption. Key factors are income
expectations and buying propensity. The economic outlook has a more indirect effect on the
consumer climate, generally as a result of income expectations.
Management report of the GfK Group
The economy in the euro zone remained on course for growth,
but here too there was a considerable slowdown in growth as
exports were curbed by the downswing in the global economy and
a strong euro.
The weak phase in the global economy also affected the eu
Member States in central and eastern europe, which export
a lot to countries in Western Europe. However, the catch-up
process in the new eu Member States was also checked by high
current account defi cits and a real estate crisis in the Baltic
states.
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In the wake of the real estate crisis in summer 2007, private
households in the usa signifi cantly restricted their spending
and corporate investment shrank. Moreover, export activities
weakened, further curbing the economy.
In contrast, the upswing in latin america continued. The trading
links between countries, such as Mexico, with the usa led to a
slight reduction in the upward trend. However, declining exports
were countered by a robust culture of consumption and invest-
ment and the region is stable overall.
As before, the People’s Republic of China is driving economic
growth in asia. Unlike countries such as Japan, the Chinese
economy is also supported by strong domestic demand. The fall in
exports to Western industrialized countries and Japan meant that
the Chinese economy reported only single-digit growth in 2008.
Although growth in India even stagnated in the second quarter of
2008, the country remains one of the fastest growing regions in
the world.
1.2 Market research sector: the upswing continues
The current data for 2007 from the Esomar “Global Market
Research 2008” industry report shows that the market research
sector demonstrated its dynamic upward trend again in that
year. Sales were up year-on-year by 3.9%.
In principle, it is to be assumed that the demand for information
on consumers and related interpretation and advisory services
will remain strong in the future. However, in diffi cult economic
times, other issues, and therefore other areas of research, come
to the fore. For example, since the dramatic rise in commodity
prices, an increasing number of studies have been carried out in
the food sector to determine the optimum selling price. Market
research enables clients to respond optimally to changes in market
conditions.
In addition, it is to be assumed that there will be an above-average
increase in market research budgets in countries with a booming
economy. For example, market research budgets have seen large
increases in the regions Rest of Europe, eu accession countries and
Middle East/Africa.
With market research sales of usd 270 million, Russia is the
biggest and most important market in the Rest of Europe region
and adjusted for infl ation, budgets are up by 10.7%. The fastest
growth was again achieved in Turkey with 22.0%, whereby at
usd 132 million, sales in the country are half those of Russia.
Of the eu accession countries, Poland has the largest market
research market with usd 209 million. Growth in the market
amounted to 8.8%.
The most attractive market in the Middle East/Africa region is
South Africa with sales of usd 208 million and growth of 25.2%.
However, Asia is still the region driving global growth. Japan is
the undisputed leader at usd 1,518 million, followed by the
People’s Republic of China at usd 712 million and Australia at
usd 623 million.
Of the top 10 countries accounting for almost 78% of sector sales,
China’s market has the strongest sales growth.
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Sales and Growth by region
Sales2006
Sales2007
Growth2006/2007
in %1)
Europe
eu 15
eu accession countries
Rest of Europe
10,662
9,566
431
665
12,882
11,467
565
850
3.2
2.4
9.5
10.8
America
North America
Latin America
10,103
8,890
1,213
10,823
9,494
1,329
3.32)
3.6
1.3
Asia/Pacifi c 3,590 4,064 6.2
Middle East/Africa 381 466 18.7
Overall 24,737 28,235 3.9
1) Growth adjusted by infl ation, based on turnover in local unit of currency
2) Own calculations
Source: esomar Industry Report 2008, published August 2008
Top 10 national consumer research markets: sales, growth and share of the sector‘s overall sales
in usd million
Sales
2006
Sales
2007
Growth
2006/20071)
in %
Share of
the sector
sales
2007 in %
usa 8,232 8,726 3.4 30.9
uk 2,369 2,771 0.4 9.8
Germany 2,206 2,659 2.5 9.4
France 2,214 2,644 2.3 9.4
Japan 1,444 1,518 5.2 5.4
Italy 706 858 3.7 3.0
Canada 658 768 6.0 2.7
Spain 580 730 6.4 2.6
China 583 712 12.7 2.5
Australia 532 623 0.5 2.2
Top 10 total 19,524 22,009 – 77.9
World 24,737 28,235 3.9 –
1) Growth adjusted by infl ation, based on turnover in local unit of currency
Source: esomar Industry Report 2008, published August 2008
Despite fast growth in market research in China, it should be noted
that rate of expansion equates to one and a half percent of the us
market. The usa is the main sales market for the industry, followed
by the uk, Germany and France. Together these account for around
60% of global market research sales.
From a global perspective, the growth drivers differ between the
developed regions in uncertain economic times and in emerging
countries, particularly China. While the need for explanations for
consumer behavior and maintaining market position is becoming
increasingly important in Western industrialized nations where
there is fi erce competition, for producers in emerging countries,
the spotlight is on developing new markets. In both cases, the
information delivered by market research is often indispensible.
in usd million
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The fi gures for income set out below refer to adjusted operating
income. Like its competitors, the GfK Group uses adjusted
operating income as a key performance indicator. GfK is convinced
that the explanations regarding business performance using
the adjusted operating income will facilitate interpretation of the
GfK Group’s business development and enhance the informative
value, in comparison with other major companies operating in
the market research sector. Where income is mentioned below,
this is the adjusted operating income. The margin is the ratio of
adjusted operating income to sales.
The adjusted operating income is calculated as follows:
In the previous year, several fi gures in the income statement
were infl uenced by the non-recurring effect from the settlement
agreed at the start of 2008 with the ubm, the vendor of the
nop World companies, as a result of which other operating
income of eur 10.2 million was received. Other operating expenses
fell by eur 0.5 million, fi nancial expenses by eur 2.1 million
and tax expenses rose by eur 0.3 million. The overall impact on
consolidated total income amounted to plus eur 12.5 million.
In the following analysis of the income statement for 2008, the
previous year’s fi gures are shown net of the non-recurring effect
to improve comparability.
Where statements herein refer to the number of employees, in
principle, this represents the total number of full-time posts.
For this purpose, part-time posts have been converted to equate
to full-time posts.
The fi gures on the business development of the GfK Group and
any percentage changes are based on fi gures in 1,000 euros.
Accordingly, rounding differences may occur.
The companies mentioned in the Management Report are referred
to by their abbreviated names. The “Additional information” of the
Annual Report includes a list of the full names of all the companies
indicated.
To meet these requirements better, there were more mergers
and acquisitions again in 2007. As a result of this process of
concentration, the top 10 market research companies now
account for 55% of total sector sales. In its “Global Market
Research 2008” report, Esomar expects the process of con-
solidation to continue among the 25 biggest market research
organizations and online market research providers.
With its global full-service network, the GfK Group is a leading
global market research organization. In 2007, the GfK Group
ranked fourth out of the top 10 companies in the market
research sector and also maintained this position in 2008.
2. Economic and financial development
2.1 Introduction
The GfK Group prepares its consolidated fi nancial statements in
accordance with the International Financial Reporting Standards
(ifrs). The fi nancial data for the sectors and regions originate
from the Management Information System.
For GfK, the order situation is an important early indicator for
the future development of the Group’s business. The development
in the assured volume of orders in relation to the expected annual
sales for the fi nancial year is determined monthly. This ratio is a
central management parameter for the Group and is monitored
by the management of GfK in a timely manner. In general, around
half the planned annual sales are already reported as assured
contracts in the fi rst quarter.
The picture varies from sector to sector. In Media, for example,
multi-year contracts were concluded for continual tv audience
research. In the panel-based Retail and Technology sector,
contracts are largely renewed in the fi rst three months of the
fi nancial year. As a result of the lower proportion of continual
data collection in Custom Research and greater weighting for
ad hoc studies, incoming orders in this sector tend to be more
evenly spread across the whole of the fi nancial year.
Economic and financial development: GfK Group
Top 10 of the Consumer Research Sector
Company
Sales 2007
usd million
Growth
in %1)
1 The Nielsen Company, usa 4,220.0 12.7
2 ims Health, usa 2,192.6 6.0
3 Taylor Nelson Sofres, uk 2,137.2 5.4
4 GfK Group, Germany 1,593.2 5.8
5 Kantar Group2), uk 1,551.4 2.7
6 Ipsos, France 1,270.3 9.1
7 Synovate, uk 867.0 7.8
8 iri, usa 702.0 5.6
9 Westat, usa 467.8 10.4
10 Arbitron, usa 352.1 6.9
1) Growth in national currency, adjusted according to acquisitions/sales
2) Estimate
Source: esomar Industry Report 2008, published August 2008
Reconciliation of adjusted operating income
In eur million 2007
20071)
adjusted 2008
Change
in %
Operating income 136.4 125.6 128.9 + 2.6
Expenditure and profi ts in
conjunction with restructuring
and company transactions 0.0 0.0 4.6 –
Write-ups and write-downs of
additional assets identifi ed
on acquisitions 30.1 30.1
24.1 – 19.9
Personnel expenses for share-
based payments and long-term
incentives
1.7 1.7 – 1.0 –
Other operating income
less remaining other operating
expenses
– 10.6 0.2
2.1 –
Total highlighted items 21.2 32.0 29.8 – 6.7
Adjusted operating income 157.6 157.6 158.7 + 0.7
1) Without income infl uences from settlement with ubm
GfK_63
2.2 GfK Group: successful income development
Sales and income
GfK increased its sales in 2008 by eur 58.4 million to eur 1,220.4
million. With organic growth of 5.5%, sales growth again out-
performed the industry.
At eur 379.8 million, gross income from sales almost matched
the previous year’s level (2007: EUR 380.7 million). The above
rise in sales is countered by a rise in the cost of sales of
eur 59.2 million to eur 840.6 million (2007: eur 781.4 million).
In contrast, selling and general administrative expenses
declined. These amounted to eur 248.9 million in the fi nancial
year 2008 compared to eur 252.0 million in the previous year.
Selling costs in 2007 included impairment losses on customer
relations amounting to eur 6.9 million. These declined in 2008
to eur 1.1 million.
income increased by eur 1.1 million from eur 157.6 million to
eur 158.7 million. The operating margin was again high at
13.0%. In the previous year, the margin amounted to 13.6%.
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Development of earnings1)
In eur million 2007
20072)
adjusted 2008
Change
in %
Sales 1,162.1 1,162.1 1,220.4 + 5.0
Cost of sales – 781.4 – 781.4 – 840.6 + 7.6
Gross income from sales 380.7 380.7 379.8 – 0.2
Selling and general administrative
expenses – 252.0 – 252.0 – 248.9 – 1.2
Other operating income 25.8 15.6 54.3 + 247.9
Other operating expenses – 18.1 – 18.7 – 56.3 + 202.3
eb itda 199.1 188.4 192.0 + 1.9
as a percentage of sales 17.1 16.2 15.7 –
Adjusted operating income 157.6 157.6 158.7 + 0.7
as a percentage of sales 13.6 13.6 13.0 –
Highlighted items – 21.2 – 32.0 – 29.8 – 6.7
Operating income 136.4 125.6 128.9 + 2.6
as a percentage of sales 11.7 10.8 10.6 –
Income from participations 3.0 3.0 3.9 + 28.2
ebit 139.4 128.6 132.8 + 3.2
as a percentage of sales 12.0 11.1 10.9 –
Financial Income 7.9 7.9 16.0 + 102.6
Financial expenses – 30.2 – 32.3 – 35.8 + 10.7
Net fi nancial income – 22.3 – 24.4 – 19.8 – 19.0
Income from ongoing business
activity 117.1 104.2 113.0 + 8.4
Tax on income from ongoing
business activity – 25.7 – 25.3 – 31.0 + 22.2
Tax ratio in % 21.9 24.3 27.4 –
Consolidated total income 91.4 78.9 82.0 + 4.0
Attributable to equity holders
of the parent 83.2 70.7 73.2 + 3.5
Attributable to minority interests 8.2 8.2 8.8 + 8.6
Consolidated total income 91.4 78.9 82.0 + 4.0
Earnings per share (undiluted)
in eur 2.33 1.98 2.04 + 3.0
1) Rounding differences may occur
2) Without earnings infl uencing the settlement with ubm
highlighted items include amortization, impairments and write-ups
on hidden reserves disclosed as part of purchase price allocation
amounting to eur 24.1 million (2007: eur 30.1 million). These relate
to the balance of scheduled amortization and depreciation which
was unchanged year-on-year at eur 14.8 million, impairments of
eur 10.5 million (2007: eur 16.2 million) and value write-ups of
eur 1.2 million (2007: eur 0.9 million).
The highlighted items include income and expenses relating
to reorganisation and business combinations which netted out at
eur –4.6 million. These include expenses amounting to eur
11.0 million, which were incurred from the planned amalgamation
with Taylor Nelson Sofres (tns), primarily including expenses
for consultancy services, as well as commitment fees for bank
loans and other expenses. These were offset by income from the
break fee of eur 13.4 million. Furthermore, the item includes costs
relating to the biss fi tness and effi ciency program of eur 5.8 million
as well as costs for the transformation changing the legal form of
GfK Aktiengesellschaft to GfK se amounting to eur 1.2 million.
The highlighted items also include the remaining other operating
income and expenses. Netted out, these amount to eur –2.1 million
(2007: adjusted eur –0.2 million). This item includes a gain
from exchange rate differences of eur 2.8 million (2007: eur 1.6
million).
operating income rose year-on-year by eur 3.3 million, or 2.6%,
from an adjusted fi gure of eur 125.6 million to eur 128.9 million.
The personnel cost ratio, which expresses the ratio of personnel
expenses to sales, stood at 40.5% (2007: 40.0%). In absolute
terms, personnel expenses stood at eur 494.3 million (previous year:
eur 465.2 million).
Scheduled depreciation and amortization, especially on
software and offi ce equipment, increased by 6.8% from
eur 44.2 million in the previous year to eur 47.2 million. There
were also impairments of eur 13.2 million (2007: eur 16.4 million).
The balance of write-ups and depreciation was reduced by a
reversal of impairment losses amounting to eur 1.2 million (2007:
eur 0.9 million).
The GfK Group increased ebit by 3.2% compared to the adjusted
fi gure for the previous year from eur 128.7 million to eur 132.8
million.
ebitda rose from the adjusted fi gure of eur 188.4 million in the
previous year by eur 3.6 million to eur 192.0 million in fi nancial
year 2008.
income from participations increased considerably
from eur 3.0 million in the previous year to eur 3.9 million
in 2008.
other fi nancial income, which is the balance of fi nancial income
and expenses, amounted to eur –19.8 million in fi nancial year 2008.
This represents a considerable improvement on the previous year,
when adjusted other fi nancial income would have stood at eur –24.4
million. Through active management and the targeted use of
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The changes on the liabilities side stem from the decline in other
non-current liabilities of eur 9.0 million, which mainly related to
purchase price obligations for minority interests in China which
have meanwhile been paid, as well as a fall in trade payables by
eur 8.0 million.
In addition, equity fell by eur 9.3 million from eur 509.6 million
in 2007 to eur 500.3 million. A rise in retained earnings of
eur 60.2 million was countered by a decline in earnings and
expenses recognized directly in equity of eur 74.3 million. The
major portion of these items is attributable to currency fl uctuations
not affecting income, which in 2008 was mainly caused by the
sharp fall in the value of the British pound (around eur – 43 million).
As of December 31, 2008 the equity ratio remained unchanged
on the previous year’s high level at 34.6%.
derivative fi nancial instruments, the income from currency hedging
contracts rose signifi cantly and made a material contribution to the
positive development.
Overall, this led to a pleasing increase in the income from ongoing
business activity of 8.4% from the adjusted fi gure of eur 104.2
million to eur 113.0 million in 2008.
At 27.4%, the income tax ratio was 3.1 percentage points above
the adjusted ratio for the previous year of 24.3%. In 2007, several
special effects led to a lower tax ratio.
The GfK Group therefore increased its consolidated total income
by eur 3.1 million from the adjusted fi gure of eur 78.9 million in
the previous year to eur 82.0 million in 2008. This equates to a rise
of 4.0%.
Asset and capital position
Compared with the previous year, the total assets of the GfK Group
decreased by eur 24.1 million to eur 1,446.6 million.
On the assets side of the balance sheet, the eur 3.3 million drop
in non-current assets was attributable to several effects:
goodwill fell by eur 9.2 million. Tangible assets increased by
eur 11.3 million, particularly through the expansion of digital
metering technology in tv research. Shares in associated
companies rose by eur 6.8 million primarily as a result of the
acquisition of a minority holding in Dmrkynetec. This was
countered by deferred tax assets of eur 14.2 million.
The change in current assets of eur –20.9 million essentially
comprises a fall in trade receivables as well as other current assets
and deferred items. In addition, the assets held for sale in the
previous year amounting to eur 9.5 million no longer applied
in 2008.
Economic and financial development: GfK Group
The GfK Group: Income and consolidated total income 2004 – 2008 in eur million
2004 + 82.9
+ 53.1
2005 + 125.1
+ 67.5
2006 + 150.5
+ 71.2
20071) + 157.6
+ 78.9
2008 + 158.7
+ 82.0
Income Consolidated total income
1) Consolidated total income for 2007 adjusted by the special effect from the ubm settlement
amounting to eur 12.5 million
Development of balance sheet growth
In eur million 31.12.2007 31.12.2008
Change
in %
Share
of total
assets
in %
Assets
Non-current
assets 1,088.3 1,085.0 – 0.3 75.0
Current
assets 382.5 361.6 – 5.5 25.0
Liabilities
Equity 509.6 500.3 – 1.8 34.6
Non-current
liabilities 458.2 448.5 – 2.1 31.0
Current
liabilities 503.0 497.8 – 1.0 34.4
Total assets 1,470.8 1,446.6 – 1.6 100.0
Development of equity ratio 2004 – 2008 in %
2004 45.6
2005 28.6
2006 31.2
2007 34.6
2008 34.6
GfK_65
Investment and fi nance
The GfK Group ensures that its investments are timely and
suitably balanced in relation to business development. For
management purposes, the Group differentiates between ongoing
investment, project investment and fi nancial investment. The
investment activity in ongoing investment primarily covers new
and replacement purchases of tangible and intangible assets.
For an innovative market research company, investment in panel
expansion and switching to digital recording devices, the expansion
and extension of production and evaluation systems as well as
the development of new measurement technologies, is essential.
This project investment is generally reported to the management
at regular intervals during the year as part of the management
information system. They make a decisive contribution to securing
the future success of the company through the expansion of its
leading edge in technology and raising the entry barriers for potential
competitors. Overall, the range for ongoing and project investment
regularly amounts to between 4% and 5% of sales. In addition,
the GfK Group regularly invests in the expansion of the international
network. Above a certain minimum level, this fi nancial investment
is subject to approval of the Supervisory Board.
In 2008, GfK spent eur 101.5 million on investments (2007: eur 73.7
million). Of this investment, eur 50.5 million (2007: eur 49.2 million)
related essentially to the procurement of software, offi ce equipment
and other tangible assets and eur 49.0 million (2007: eur 22.8 million)
to the acquisition of consolidated companies and other business
units.
With cash fl ow from ongoing operating activity of eur 145.8
million (previous year: eur 168.1 million), capital expenditure
was fully fi nanced. After a sharp decline in working capital in the
previous year, the very low level at the start of 2008 could not be
maintained, resulting in a rise in working capital by eur 11.4 million
by the year-end.
Taking account of expenses relating to capital expenditure amounting
to eur 50.5 million, free cash fl ow totaled eur 95.3 million
(2007: eur 118.9 million). Acquisitions in the fi nancial year 2008
were therefore fully fi nanced.
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net indebtedness, defi ned as the balance of cash, cash equiva-
lents and short-term securities less interest-bearing liabilities
and pension obligations, rose slightly by eur 8.6 million from
eur 472.9 million to eur 481.5 million. The main reason for this
rise was the increase in pension provisions.
gearing, which is the ratio of net indebtedness to equity, rose
marginally in fi nancial year 2008 to 96.2% (previous year: 92.8%).
The ratio of net indebtedness to the key fi nancial ratios ebit, ebitda
and free cash fl ow remained largely stable.
Development of free cash fl ow
In eur million 31.12.2007 31.12.2008
Change
in %
Cash fl ow from ongoing operating
activity 168.1 145.8 – 13.3
Capital expenditure – 49.2 – 50.5 + 2.5
Free cash fl ow before
acquisitions, other investments
and asset disposals 118.9 95.3 – 19.8
Acquisitions – 22.8 – 50.6 + 121.8
Other fi nancial investments – 1.6 – 0.3 – 78.2
Asset disposals 3.4 1.1 – 67.8
Free cash fl ow after
acquisitions, other investments
and asset disposals 97.9 45.5 – 53.6
Development of net indebtedness
In eur million 31.12.2007 31.12.2008
Change
in %
Liquid funds 37.8 36.7 – 2.9
Short-term securities and
time deposits 0.8 0.9 + 11.8
Liquid funds and
short-term securities 38.6 37.6 – 2.5
Liabilities
to banks 387.3 389.4 + 0.5
Pension obligations 34.8 41.5 + 19.4
Liabilities from
fi nance lease 13.6 14.3 + 5.3
Other interest-bearing
liabilities 75.8 73.9 – 2.5
Interest-bearing
liabilities 511.5 519.1 + 1.5
Net indebtedness – 472.9 – 481.5 + 1.8
Gearing and ratio of net indebtednessto ebit, ebitda and free cash fl ow
200720071)
adjusted 2008
Gearing (net indebtedness/equity) 92.8 % 92.8 % 96.2 %
Net indebtedness/ebit 3.39 3.67 3.63
Net indebtedness/ebitda 2.38 2.51 2.51
Net indebtedness/free cash fl ow 3.98 3.98 5.05
1) Without earnings influence from settlement with ubm
66_GfK
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time the authorization comes into force. The new authorization
applies until November 20, 2009. The authorization to acquire
own shares can be exercised by the company, or by third parties
for the account of the company, in whole or in part, once or on
several occasions, to meet one or several purposes. The acquisition
takes place as the Management Board chooses through an offering
addressed to all shareholders or by means of a public call to
issue such an offer or via the stock market. The shares acquired
by virtue of the authorization can be also be sold by means other
than via the stock market or through an offering to all shareholders,
providing the cash price for the shares at the time of the sale is
not signifi cantly below the stock exchange price for similar shares
in the company. The number of shares for sale may not exceed a
maximum of 10% of the share capital of the company at the time
the resolution was passed by the Annual General Meeting on
May 21, 2008 or – if lower – 10% of the registered capital of the
company at the time of the sale of the shares. If the Management
Board makes use of the authorization to call in its own shares in
the company, this is carried out such that the share capital is
reduced. In deviation from this, the Management Board can decide
that the share capital will not change as a result of the call-in
and that the proportion of other shares in the share capital will
increase as a result of the call-in pursuant to section 8 para. 3 of
the German Stock Corporation Act. In this case, the Management
Board is authorized to amend the number of shares in the Articles
of Association. The authorization to use the shares acquired can
be exercised once or on more occasions, separately or together,
for all or part of the volume of own shares acquired and with the
exception of calling in shares, can be carried out by third parties
for the account of the company. The subscription right of sharehol-
ders to own shares is excluded to the extent that the shares are
being used as part of a merger of acquisition of companies, parts of
companies, participations or to discharge obligations under the
convertible bonds and/or stock options to be issued in the future or
for disposal via the stock market or by other means.
GfK se does not have any compensation agreements in the event of
a takeover offer with the members of the Management Board and
the employees.
2.4 Sectors: spotlight on consumers and markets
GfK offers its clients from the consumer goods and pharmaceuticals
industry, retail, media and the service sector, a comprehensive
range of information and consulting services in a total of three
sectors. These deliver the fundamental knowledge which GfK clients
need to make their marketing decisions.
custom research: The Custom Research sector supplies information
and consulting services for operational and strategic marketing
decisions in over 30 countries, and via partnerships in more than
60 countries.
2.3 Mandatory information under company law
(Section 315 para. 4 hgb, German Commercial Code)
By resolution of the Annual General Meeting on May 21, 2008,
GfK se was created by changing the legal form of GfK Aktien-
gesellschaft (district court Nuremberg hrb 9398) (pursuant to
Section 2 para. 4 in conjunction with Section 37 se-vo, European
company law). The share capital of GfK Aktiengesellschaft became
the share capital of GfK se at the same level as at the date of
conversion and with the same denomination into no-par value
bearer shares as at that date.
The share capital of GfK se amounts to eur 150,296,541.94
divided into 35,947,363 no-par value bearer shares. There are
no restrictions in the Articles of Association relating to voting
rights or the assignment of shares. All shares carry the same
rights.
GfK-Nürnberg e.V., Berlin, has a direct holding of 56.96% of the
voting rights in GfK se. The company has not received notifi cation
of any other shareholders with a stake of 10% or more of the
capital.
Employees with an interest in the capital exercise their voting
rights directly.
Pursuant to Article 5 of the Articles of Association of GfK se,
the Supervisory Board is responsible for determining the number
of members of the Management Board. The Supervisory Board
appoints the members of the Management Board for a maximum
period of fi ve years. Appointment for one term or several
reappointments for a maximum term of fi ve years is permitted.
The Supervisory Board may appoint one member of the Manage-
ment Board as the ceo and one or more as Deputy ceos. In
addition, the legal regulations on appointing and removing
members of the Management Board (sections 84, 85 of the German
Stock Corporation Act, AktG) apply. The Articles of Association
do not contain any regulations that exceed the statutory require-
ments of sections 133, 179 of the German Stock Corporation
Act (AktG).
The authorization to acquire own shares dated May 23, 2007 has
been rescinded for the period from the coming into force of the
following new authorization. By resolution of the Annual General
Meeting on May 21, 2008 GfK se is authorized to acquire shares
in GfK se and to resell own shares held. The shares may be
acquired in order to offer them to third parties as part of a merger
of companies or acquisition of a company, part of a company or
participation or to enable the company to discharge its obligations
in relation to any convertible bonds and/or share options to be
issued by it or its Group companies in the future. The same applies
for calling in shares and the resale of shares on the stock market.
Trading in own shares is not admissible. The repurchase of shares
is limited to a maximum of 10% of the share capital in place at the
Economic and financial development: GfK Group
GfK_67
Custom Research offers a broad spectrum of services which include
tests and studies, in particular, for product and pricing policy,
brand management, communications, distribution and customer
loyalty. GfK monitors products and services from development and
launch through maturity to the degeneration phase. The sector’s
portfolio comprises continually collected data, for example from
household and doctor panels, as well as ad hoc studies tailored
specifi cally to individual questions. The data source for the Custom
Research sector is provided by consumers and physicians (point
of consumer and physicians).
The Custom Research sector comprises the segments Consumer
Tracking, HealthCare, Automotive, Business and Technology,
Financial Services, Consumer and Retail, Other Custom Research,
Custom Research Central and Eastern Europe, Custom Research
Latin America, Custom Research Asia and Pacifi c as well as the
multi-segment Custom Research.
retail and technology: Retail (point of sale) is the data source
for the Retail and Technology sector. The sector supplies clients
with information and consulting services based on retail data from
continuous surveys and analyses of sales of technical consumer
goods and services in the retail sector in more than 70 countries
worldwide. The services comprise regular surveys on the market
segments offi ce communications, photographic technology and
optics, electrical household appliances, information technology,
telecommunications, sports equipment, tourism and consumer
electronics and entertainment media.
media: The Media Sector delivers information services on range,
intensity and nature of media usage and acceptance in more than
20 countries in Europe and the usa. The data source for the Media
sector stems from the media (point of media).
The services are directed at clients from media companies,
agencies and the branded goods industry. The range of available
services includes continuous, as well as special one-off studies and
analyses. The data sources for the Media sector come from tv,
radio, print, outdoor advertising and online.
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other: The sectors are supplemented by the Other division,
which, in particular, covers GfK’s central services for its
subsidiaries and other services not related to market research.
The division mainly includes some elements of GfK Switzerland,
GfK Data Services, GfK Methoden- und Produktentwicklung
and departments of GfK Group Services
Economic development: successful rise in sales and income
In 2008, the GfK Group continued the successful business develop-
ment of the previous year and further increased sales and income.
Breakdown of growth of sales and income in %1)
Total growth
+ 5.0
+ 0.7
Growth from acquisitions
+ 2.5
+ 2.2
Organic growth
+ 5.5
+ 0.7
Currency effects
– 2.9
– 2.1
Sales Income
1) Rounding differences may occur
Proportion of sector sales to total sales in %1)
1) Rounding differences may occur
Custom Research
64.1
Other
0.3
Retail and Technology
24.9
Media
10.7
Proportion of sector income to total income in %1)
1) Rounding differences may occur; “Other” – 2.3 % not taken into account on the chart
Custom Research
35.3
Media
15.0
Retail and Technology
52.0
Margin by sector in %
Custom Research
8.6
7.2
Retail and Technology
25.8
27.2
Media
20.6
18.3
Actual 2007 Actual 2008
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custom research: Custom Research is the sector with the highest
sales in the GfK Group and more than half of the total sales are
generated here. Custom Research increased its sales slightly
in 2008 by 1.3% to eur 782.8 million. Of this, organic growth
accounted for 2.4 percentage points, while acquisitions added
2.6 percentage points. The development in business activities in
the regions Central and Eastern Europe, Latin America and
Asia and the Pacifi c was particularly pleasing. In addition, GfK
improved its market position in Australia through the takeover
of the Blue Moon Group and in Turkey through the acquisition
of Bilesim International. Currency effects reduced overall growth
by 3.7 percentage points.
The Custom Research sector generated operating income of
eur 56.1 million in 2008. Compared to the previous year, income
declined by 15.3%. Of this, minus 2.0 percentage points were
attributable to currency effects. Acquisition-related changes
contributed 1.7 percentage points to overall growth. A con-
siderable portion of the fall in income was due to the regional
differences in the HealthCare business. While HealthCare
companies in Germany, Latin America and Asia and the Pacifi c
recorded pleasing growth rates, sales and income at the us
American and British companies slowed. The American pharma-
ceuticals industry is fi ghting against slumping sales caused
by generics, the time-consuming process for approval of new,
patented products as well as with numerous inspections from
both political and regulatory aspects. Comprehensive restructuring
measures were implemented at the relevant HealthCare business
Economic and financial development: sectors
units to counter this trend. These measures were completed by
the start of 2009 and will generate signifi cant cost savings. The
decline in income is also attributable to the automotive segment.
The global fi nancial and economic crisis led to contracts not being
renewed in the last quarter of the fi nancial year and this was
partially offset by the two multi-year contracts signed in relation to
Brand Monitor and Mystery Shopping activities in October in this
segment.
The Custom Research sector achieved a margin of 7.2% in 2008
compared to 8.6% in the previous year.
retail and technology: The Retail and Technology sector
ended fi nancial year 2008 very successfully. It increased its sales
considerably by 16.6% to eur 304.1 million, thereby exceeding
the eur 300 million mark for the fi rst time. This corresponds to
the highest percentage total growth in the GfK Group. Organic
growth improved year-on-year by 2.4 percentage points to
14.0 percentage points. The outstanding rise in sales was due
in part to the systematic expansion of the range of services and
the growing frequency of reports. The basis for this is the global
production and reporting system, StarTrack. Moreover, the sector
further expanded its network in fi nancial year 2008, particularly
in the regions Western Europe/Middle East/Africa as well as Asia
and the Pacifi c. Overall, acquisitions contributed 3.2 percentage
points to the growth in sales, while currency effects reduced
growth by 0.6 percentage points.
Custom Research: breakdown of growth of salesand income in %1)
Total growth
– 15.3
+ 1.3
Growth from acquisitions
+ 2.6
+ 1.7
Organic growth
– 15.0
+ 2.4
Currency effects
– 3.7
– 2.0
Sales Income
1) Rounding differences may occur
Custom Research: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 773.0 782.8 + 1.3
Income 66.2 56.1 – 15.3
Margin in % 8.6 7.2 – 1.42)
Number of employees 5,632 5,876 + 4.3
1) Rounding differences may occur
2) Percentage points
Retail and Technology: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 260.8 304.1 + 16.6
Income 67.3 82.6 + 22.8
Margin in % 25.8 27.2 + 1.42)
Number of employees 2,458 2,757 + 12.2
1) Rounding differences may occur
2) Percentage points
Retail and Technology: breakdown of growth of salesand income in %1)
Total growth
+ 16.6
+ 22.8
Growth from acquisitions
+ 3.2
+ 3.4
Organic growth
+ 14.0
+ 21.0
Currency effects
– 0.6
– 1.7
Sales Income
1) Rounding differences may occur
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Retail and Technology also recorded the highest percentage
overall growth in income. There was a disproportionately high
increase in income of 22.8% to eur 82.6 million in this sector
which has the highest income in the GfK Group. Organic growth
contributed an excellent 21.0 percentage points to overall growth,
while 3.4 percentage points were attributable to acquisition-related
changes. In contrast, currency effects reduced growth by 1.7 per-
centage points.
At 27.2%, the margin in Retail and Technology is considerably
higher than the previous year’s fi gure of 25.8%, and is again the
highest margin of all the sectors.
media: Sales in the media sector amounted to eur 130.1 million
in 2008. This represents a signifi cant rise of 4.5% on the previous
year. Developments in the regions North America and Central and
Eastern Europe were particularly pleasing. The North American
subsidiary gained additional market share through new products
especially. Against the backdrop of the diffi cult market environ-
ment, developments in this subsidiary were slower in the last
quarter of 2008. In the Ukraine, GfK won a multi-year contract
in media usage. There were other successful contract renewals,
including in the uk with the renewal of the bbc Cross Media
contract and in Belgium for tv audience measurement and radio
audience measurement. Of the overall growth, 7.3 percentage
points were attributable to organic development. Currency effects
reduced income by 2.7 percentage points. There were no acquisition-
related changes.
At eur 23.8 million, income in the sector was below the previous
year’s fi gure of eur 25.7 million. Income in the fi nancial year
was adversely affected by investment in and costs for special
production and evaluation software. Organic growth amounted
to minus 4.0 percentage points. Currency effects led to a fall in
income of 3.4 percentage points.
The margin of 18.3% is the second highest margin in the
GfK Group.
other: Sales in the Other division fell by eur 0.2 million to eur 3.5
million (previous year: eur 3.7 million).
As a result of higher personnel expenses and higher costs for
services and premises, the income shortfall in this division
stood at eur 3.7 million in fi nancial year 2008 (previous year:
eur –1.5 million).
2.5 Regions: global competence in local markets
The GfK Group operates a network consisting of its own
subsidiaries in over 100 countries. In geographic terms,
the business is divided into six regions:
germany – founded in 1934, GfK has been conducting research
in its home market for 75 years. Since the 1960s, GfK has
been extending its international network from its base in
Germany.
western europe/middle east/africa – GfK has been active
in Western Europe since the 60s and covers 17 countries in total.
GfK is represented in 12 countries in the Middle East and in a
total of 13 countries in Africa.
central and eastern europe – GfK established its fi rst
subsidiary here in 1989. Today GfK has 27 companies covering
21 countries.
north america – GfK fi rst represented in the usa in 1999 with
a subsidiary. In 2005, GfK also entered the market in Canada.
Three years later, in 2008, there are a total of 13 companies in
the usa and Canada.
latin america – having started with its own company here in
2002, GfK now has 12 companies in 20 countries.
asia and pacifi c – this region joined the GfK network in 1985.
In 2008, GfK had 27 companies in 16 countries.
Media: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 124.5 130.1 + 4.5
Income 25.7 23.8 – 7.5
Margin in % 20.6 18.3 – 2.32)
Number of employees 559 594 + 6.3
1) Rounding differences may occur
2) Percentage points
Media: breakdown of growth of salesand income in %1)
Total growth
– 7.5
+ 4.5
Growth from acquisitions
+ 0.0
+ 0.0
Organic growth
– 4.0
+ 7.3
Currency effects
– 2.7
– 3.4
Sales Income
1) Rounding differences may occur
Other: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 3.7 3.5 – 7.0
Income – 1.5 – 3.7 k. A.
Number of employees 421 465 + 10.5
1) Rounding differences may occur
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Compared to the previous year, fi ve of the six regions reported
good organic growth in sales in fi nancial year 2008. In the
emerging regions of Central and Eastern Europe, Latin America as
well as Asia and the Pacifi c, in particular, the GfK Group recorded
dynamic double digit growth and further expanded its market
position.
germany: As in previous years, the GfK Group was again the
undisputed market leader in Germany in fi nancial year 2008.
In terms of sales, Germany is the second biggest region in 2008
with eur 316.1 million (previous year: eur 290.3 million). All of
the sales growth is organic and GfK recorded a rise of 8.9% in
the fi nancial year compared to 7.7% in 2007.
western europe/middle east/africa: At eur 487.2 million, the
highest contribution to sales in 2008 came from the region Western
Europe/Middle East/Africa (previous year: eur 480.5 million) which
therefore generated around 40% of group-wide sales. Organic
growth in sales amounted to a good 3.9%, while currency effects
reduced sales by 4.1%. Acquisitions contributed 1.7 percentage
points to growth in sales.
Economic and financial development: regions
Material changes in the GfK network
Company
Invest-
ment
activity
Stake
changes
in % Sector Region
Blue Moon Group Acquisition from 0
to 100
Custom Research Asia and
the Pacifi c
Bilesim
International
Acquisition from 0
to 100
Custom Research Central- and
Eastern
Europe
Societé V Asset Deal Retail and
Technology
Western Europe/
Middle East/
Africa
GfK Research
Matters
Share
increase
from 66
to 100
Custom Research Western Europe/
Middle East/
Africa
Shopping Brasil Majority
acquisition
from 0
to 51
Retail and
Technology
Latin
America
Qosmos Minority
interest
from 0
to 7.81
Retail and
Technology
Western Europe/
Middle East/
Africa
Dmrkynetec Minority
interest
from 0
to 26
Custom Research Western Europe/
Middle East/
Africa
GfK Denmark Share
increase
from 87
to 100
Custom Research Western Europe/
Middle East/
Africa
Chart Track Share
increase
from 9
to 55
Retail and
Technology
Western Europe/
Middle East/
Africa
GfK ms Nigeria Acquisition from 0
to 100
Retail and
Technology
Western Europe/
Middle East/
Africa
GfK Albania Acquisition from 0
to 100
Custom Research Central- and
Eastern
Europe
The Arbor Strategy
Group
Acquisition from 0
to 100
Custom Research North America
Market Insight Majority
acquisition
from 0
to 74
Custom Research Western Europe/
Middle East/
Africa
GfK mediacontrol
Latina sl
Majority
acquisition
from 0
to 53.5
Retail and
Technology
Western Europe/
Middle East/
Africa
Regional breakdown of sales in %1)
1) Rounding differences may occur
Germany
25.9
Western Europe/Middle East/
Africa
39.9
Latin America
2.9
Central and Eastern Europe
7.1
North America
18.0
Asia and the Pacific
6.1
Germany: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 290.3 316.1 + 8.9
Number of employees 1,714 1,746 + 1.8
1) Rounding differences may occur
Germany: breakdown of sales growth in %1)
Total growth + 8.9
Growth from acquisitions + 0.0
Organic growth + 8,9
Currency effects + 0.0
1) Rounding differences may occur
Western Europe/Middle East/Africa: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 480.5 487.2 + 1.4
Number of employees 3,341 3,526 + 5.5
1) Rounding differences may occur
Western Europe/Middle East/Africa: breakdown of sales growth in %1)
Total growth + 1.4
Growth from acquisitions + 1.7
Organic growth + 3.9
Currency effects – 4.1
1) Rounding differences may occur
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central and eastern europe: The GfK companies in the region
Central and Eastern Europe increased their sales contribution
by 19.3% to eur 87.2 million (previous year: eur 73.1 million).
Organic growth in sales improved by 1.6 percentage points from
12.4% in the previous year to eur 14.0% in 2008. Currency effects
led to a rise in sales of 1.0 percentage points, while acquisition-
related growth made a positive contribution of 4.4 percentage points.
north america: As a result of the faster fall in the us dollar
against the euro which was still strong, growth in sales declined
by 6.1 percentage points due to currency effects. This is the main
reason for the reduction in sales of 8.7% to eur 219.7 million
(previous year: eur 240.7 million). In organic terms, sales dropped
by 3.1%, while acquisitions made a slight positive contribution to
sales of 0.5%.
latin america: Growth in the region Latin America was again
extraordinarily dynamic in 2008. Compared to the previous year,
the GfK Group increased its sales by an outstanding 32.7% to
eur 35.5 million. With organic growth of 27.0 percentage points,
this region reported the highest organic growth rate out of all the
regions. Currency effects slightly reduced sales by 2.5%, while
acquisitions increased sales by 8.2%.
asia and the pacifi c: GfK achieved the highest relative growth in
sales in the region Asia and the Pacifi c in fi nancial year 2008 with
a rise of 47.3%. Sales increased from eur 50.8 million in 2007 to
eur 74.8 million. At 18.6 percentage points, the region reported
the second highest organic growth rate in the GfK Group after Latin
America. GfK achieved a rise in sales of 27.3% from acquisitions
and further expanded its market position in the region. Currency
effects contributed 1.4 percentage points to sales growth.
Central and Eastern Europe: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 73.1 87.2 + 19.3
Number of employees 1,284 1,495 + 16.4
1) Rounding differences may occur
Central and Eastern Europe: breakdown of sales growth in %1)
Total growth + 19.3
Growth from acquisitions + 4.4
Organic growth + 14.0
Currency effects + 1.0
1) Rounding differences may occur
North America: breakdown of sales growth in %1)
Total growth – 8.7
Growth from acquisitions + 0.5
Organic growth – 3.1
Currency effects – 6.1
1) Rounding differences may occur
North America: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 240.7 219.7 – 8.7
Number of employees 1,092 1,039 – 4.9
1) Rounding differences may occur
Latin America: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 26.7 35.5 + 32.7
Number of employees 403 525 + 30.3
1) Rounding differences may occur
Latin America: breakdown of sales growth in %1)
Total growth + 32.7
Growth from acquisitions + 8.2
Organic growth + 27.0
Currency effects – 2.5
1) Rounding differences may occur
Asia and the Pacifi c: key fi gures1)
In eur million 2007 2008
Change
in %
Sales 50.8 74.8 + 47.3
Number of employees 1,236 1,362 + 10.2
1) Rounding differences may occur
Asia and the Pacifi c: breakdown of sales growth in %1)
Total growth + 47.3
Growth from acquisitions + 27.3
Organic growth + 18.6
Currency effects + 1.4
1) Rounding differences may occur
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3. Research and development
The development of innovative methods and systematic further
development of established research instruments is of central
importance to the GfK Group in order to intensify existing customer
relationships and attract new customers. For this reason, the
continual development of innovative methods and instruments
constitutes an important part of day-to-day business operations.
Most of the necessary development work is carried out by GfK
Methoden- und Produktentwicklung in Nuremberg. The 22-strong
team focuses on questions relating to statistics and methods,
defi ning populations, optimizing random samples and extrapolation
procedures as well as program concepts for data collection and
analysis software. In addition, the individual sectors and subsidiaries
– sometimes in cooperation with clients, universities and manage-
ment consultants – also carry out projects on a decentralized basis,
especially those which serve to establish new information services
in consumer goods markets, countries or regions. GfK worked on
the following research and development projects in 2008.
3.1 GfK Methoden- und Produktentwicklung
In cooperation with the Marketing faculty at the University of
Saarbrücken, GfK Methoden- und Produktentwicklung developed
the GfK EmoSensor for the Custom Research sector. This instru-
ment can record the emotions triggered in consumers by marketing
measures such as tv spots or new products on a differentiated basis.
The hierarchical bayes method was used to estimate price
elasticities for data from the household panel for the fi rst time in
2008. This method can be used to determine the price elasticities
for a brand, even when the data available is actually insuffi cient.
To make up for the defi cit, data from other brands is used in order to
obtain an optimum assessment that takes account of all information.
This provides clients with stable results, even when the data situation
is not ideal.
In the fi eld of conjoint analysis, GfK used the genetic algorithm for
product optimization with the hilca (Hierarchical Individual Limit
Conjoint) software for the fi rst time. hilca is aimed at optimizing
products that can be described by a large number of properties.
Computerized run-throughs of all possibilities in full usually fail
because of the huge number of possible combinations. Here, the
genetic algorithm helps deliver a speedy, targeted and virtually
optimum result.
3.2 Custom Research
GfK Custom Research North America developed an innovative
software solution known as gfk smart (Superior Mystery
Shopping Administration and Reporting Technology) that
improves the research process for complex mystery shopping
projects. It also enhances the speed and quality of interpretations.
The GfK Mystery Shopping test method is used for example to
analyze the service quality provided by supermarkets, restaurants,
insurance companies and banks and to determine measures to
optimize service quality.
An innovation at GfK subsidiary, GfK Strategic Innovation is the
GfK NewProductWorks® (npw) database. This is the world’s
largest data collection covering all the product innovations
successfully launched in the market in the last 25 years. The
database catalogues product and brand positioning, core
statements and slogans. It enables links to be established between
developments within individual categories and sectors as well
as across the categories and sectors. Based on the theory that
successful innovations emerge and evolve from concepts that
are already accepted by consumers, GfK is able to make forecasts
regarding the future development of certain products and
categories.
Together with a Milan-based electronics manufacturer, Italian
subsidiary GfK Eurisko developed GfK dialogatore. This device
looks like an organizer and has a touch screen, microphone,
speakers, a camera, sound matching options and a gps system.
It is suitable for all types of questions in a panel and panel
members can use the GfK Dialogatore to scan in the bar codes
of products, newspapers and magazines. Through the sound
matching options, the device can also be used for interviewing
tv- and radio audiences. The device is fi tted with a gprs modem
so the data can be transferred continually by telephone to a
central computer for analysis and reporting.
The GfK target group profi ler (tgp) identifi es core groups for
marketing, that is households or persons with the highest
potential for a particular brand. The focus is on people who so far
have rarely or never bought the brand but display a high level of
the characteristics that defi ne the group of regular buyers. These
represent groups that can be brought closer to the brand with
targeted marketing. The tgp analyzes circumstances, lifestyles,
and consumer preferences in products, stylization and food for
this target group. Individual marketing measures are derived from
the results.
How will a planned price increase affect individual target groups?
GfK price performance planner (ppp) was developed to carry
out this type of simulation. The impact on unit sales and sales
revenue resulting from a change in price is determined on the
basis of a market model. The modeling includes all brands in
the relevant competitive environment as well as purchases in
discount stores. The relevant brands and stores where they are
purchased per household are known. Information is also available
as to which brands are offered in what stores at what price. The
Research and development
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instrument also takes the loyalty of households to individual
brands and stores into account. If the price of a brand in a
store increases and this exceeds the consumer’s price threshold,
the consumer has the option of buying the brand in a different
store where it is cheaper or choosing an alternative brand in
the same store. The third option is to delay the purchase for a
certain amount of time and wait until the item is on special
offer. This facilitates the simulation of complex scenarios which
simultaneously take into account the factors price, frequency
of promotions, distribution, advertising, time and competitors’
response.
GfK segment tracker is used to identify the needs and motives
of people in the medical fi eld with regard to their preferences in
terms of sales promotions. The instrument was developed by the
us subsidiary GfK Market Measures in 2008. It helps clients in
the pharmaceuticals industry target their customers correctly
so that they can meet the various needs and requirements of
doctors. GfK Segment Tracker splits doctors into six different
groups according to how they evaluate various advertising
contacts or how they defi ne the perception of their profession.
This segmentation can assist pharmaceutical companies in
making more effective marketing decisions. Marketing depart-
ments can tailor content more specifi cally and better address
the needs of the different doctors. Optimum use can be made
of budgets, while maximising doctor satisfaction and receipts
and enhancing the advertising impact.
3.3 Retail and Technology
mobile content tracking and downloads, was developed
by the Retail and Technology sector, attracting a high level of
awareness among the mobile phone and provider industry in 2008.
Millions of mobile phone users download highly diverse mobile
content onto their phones and this opens up increased advertising
opportunities for companies. The research method is based on
deep-packet inspection technology (dpi), which collects exact,
standardized and detailed measurements for the three main
sources of mobile content – internet-based tv, computers and
mobile phones. For GfK, dpi technology quite simply represents
the audience measurement that clients need for commercial
success on the world wide web.
3.4 Media
Markets and the media have changed considerably in the past few
years with pressure from competition in the markets intensifying,
target groups becoming increasingly fragmented, consumers
becoming less transparent and media budgets spread across a
growing number of media. Media planning that is based purely
on socio-demographic features such as age, sex or income is no
longer enough and additional information about consumers is
required to reach them effectively and effi ciently. To obtain this
information, market researchers transfer features from one data
source to another. Using this method, the Research, Consulting &
Development department at GfK Fernsehforschung in Germany has
developed four new instruments for the market:
Using t.o.m. fmcg tv (target optimizer for markets), data from
the GfK ConsumerScan panel is transferred into the agf/GfK tv
panel. Information about viewers not available from the tv panel
data alone is made transparent through data fusion. The same
principle is applied in t.o.m. pharma tv, only here the data is
transferred from the GfK HealthCare panel. This can show
which viewers occasionally buy a particular headache remedy
for example. tdw t.o.m. pharma can be used to record responses
to print advertising, whereby information on purchasing supplied
by the HealthCare panel is transferred into the Typology of Wishes
(TdW), one of the leading market media studies. The TdW method
is particularly suitable for this project, as it maps both general
interest and pharmacy customer magazines. This instrument
enables pharmaceutical companies to place advertising on a more
targeted basis, while publishing companies can also use it to
improve the positioning of their titles on the basis of buyer data.
Combining this with t.o.m. Pharma tv also facilitates optimized
cross-medial planning. The internet is covered by web.consumer.
Here GfK uses data fusion to transfer buyer target groups from the
GfK ConsumerScan panel into the United Internet Media (uim)
customer database. This can be used to determine whether a certain
consumer group looks at a particular internet page especially
frequently so that companies can optimize the placement of their
advertising accordingly.
4. Human Resources
The sustained internationalization of the GfK Group is accompanied
by the increasing internationalization of its personnel activities.
The Human Resources International department, which is responsible
for implementing the global Human Resources strategy and provides
support to the operating units when introducing hr instruments,
was strengthened in 2008. The service offering was extended and
cooperation increasingly expanded through the introduction of
international project teams. The resultant processes for the
introduction or optimization of hr will be presented to the local
GfK companies at the annual Human Resources Conference before
they are rolled out in the Group.
4.1 Scorecard and Best Practice award
The Human Resources scorecard was introduced in 2008 and
is used to regularly measure the implementation of the global
hr strategy using key performance indicators (kpis) such as staff
turnover, the length of the recruitment process, the number and
quality of applications, the quota of key positions fi lled internally
and the number of management successors. This provides
important information on the status of hr activities at regional
and global level. The fi ndings are incorporated in the long-term
planning and indicate which instruments are proving effective.
In addition, the scorecard opens up the possibility of comparing the
kpis, not just within the GfK Group but also externally, for example
with other companies in the home market, and of setting targets for
hr activities.
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Human Resources
The Best Practice Award was introduced in 2008 with regard to
the communication and dissemination of effective personnel
instruments and processes. Representatives of a large number
of GfK companies select from the many candidates presenting
their instruments to a group of hr representatives from all over
the world. These are the best instruments in the recruit, refresh
and retain categories. The candidates and the winners will be
presented and receive their awards at the annual international
hr Conference.
4.2 Global employee survey
GfK’s success depends to a great extent on the commitment of its
employees at all levels. In the light of this, the GfK Group carried
out its fi rst global “Employee Engagement Survey” in 2008. The
response rate was very good at 77%.
The Management Board and management are looking very closely
at the results of the global employee survey and what they mean.
In a process managed by hr International, the results of the
Employee Engagement Index will be discussed with the employees
from a global as well as regional and local perspective and
measures derived to enhance engagement.
From now on, the Employee Engagement Index will be determined
every year and forms a core part of hr’s activities.
4.3 Employees
The number of employees in the GfK Group rose in fi nancial year
2008 by 622, or 6.9%, to 9,692 as of December 31, 2008.
With a total staff complement of 7,946, the number of employees
at foreign GfK companies increased by 590 compared to 2007. In
total, 82% of GfK employees work outside Germany, continuing
the trend towards internationalization of the workforce.
In regional terms, around half of the total rise in personnel was
attributable to Central and Eastern Europe and Latin America.
The region Asia and the Pacifi c also saw the number of employees
rise, but at 20% the increase was lower than in previous years.
As a result of adjustment measures, North America was the only
region in the GfK Group to record a decline in the number of
employees.
The number of employees increased in all sectors of the GfK
Group. At 48%, most of the rise was attributable to the Retail
and Technology sector followed by Custom Research at 39%.
While the increase in the Custom Research sector stemmed
from the acquisition of new companies, in Retail and Technology,
the Group’s presence increased organically in Central and Eastern
Europe as well as Asia and the Pacifi c. Moreover, personnel
numbers increased in the growth region of Latin America, partly
as a result of the acquisition of a company in Brazil.
Number of employees by sector in %1)
Total 100% � 9,692 full-time-positions
1) Rounding differences may occur
Custom Research
60.6
Other
4.8
Retail and Technology
28.5
Media
6.1
Number of employees by region in %1)
Total 100% � 9,692 full-time-positions
1) Rounding differences may occur
Germany
18.0
Western Europe/Middle East/
Africa
36.4
Latin America
5.4
Central and Eastern Europe
15.4
North America
10.7
Asia and the Pacific
14.1
4.4 Staff turnover: continues to vary sharply from region to
region
The staff turnover rate at the GfK Group is the ratio of employee
resignations in relation to the average number of employees
in the Group in the fi nancial year. In 2008, this indicator rose by
0.5 percentage points to 13.5% (previous year: 13.0%).
At 3.5% (previous year: 2.2%), the rate in Germany had increased
slightly, but was still the lowest rate of all GfK regions. Outside
Germany, staff turnover varied sharply from region to region.
Compared to the previous year, employee retention improved
signifi cantly in Latin America and the staff turnover rate fell by
7 percentage points to 13.4%. In the dynamic market environment
in the growth regions in Asia and the Pacifi c as well as Central and
Eastern Europe, at over 20% the rates were similar to those in the
previous year and again considerably higher than in the other
regions.
4.5 Total remuneration and shares of the Management Board
and Supervisory Board
Information on the remuneration of the Management and
Supervisory Boards and their shareholdings is given in the tables
and explanations in the remuneration report in the Corporate
Governance report on page 14ff.
There were no loans or advances to members of the Management
and Supervisory Boards.
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5. Organization and administration
The range of products and services offered by the GfK Group
comprises information services based on market research
data. The Group has faced the challenges posed by increasing
globalization and has put in place an organizational structure
that enables the local GfK companies to respond quickly and
effi ciently to opportunities in the market. This also applies to the
head offi ce department, GfK Group Services. GfK se functions
as both the holding company and an operating unit. In Germany,
the GfK Group’s network encompasses the parent company as well
as ten consolidated, 19 associated companies and three minority
interests. Worldwide there are 136 consolidated subsidiaries active
in over 100 countries. The Group is based in Nuremberg.
5.1 Management Board, sectors and segments: new structure
The GfK Group was run by a Management Board consisting of six
members in 2008. The Chief Executive Offi cer (ceo), Professor
Dr. Klaus L. Wübbenhorst, is responsible for the strategy of the
GfK Group, the executive personnel development strategy, the
it strategy, contact with the executive bodies and participations
of a non-operational nature as well as research and development
and Corporate Communications. The Chief Financial Offi cer (cfo),
Christian Weller von Ahlefeld, is responsible for the Financial
Services, Human Resources and Central Services departments.
At the start of 2008, the fi ve business divisions Custom Research,
Retail and Technology, Consumer Tracking, Media and HealthCare
were restructured to form the three sectors Custom Research,
Retail and Technology and Media. This structure is based on the
assessment of market research services, which are essentially
based on data that stems from a variety of sources. In the Manage-
ment Information System, the sectors are further broken down into
segments.
The Custom Research sector is led by the three Management Board
members Petra Heinlein, Debra A. Pruent and Wilhelm R. Wessels.
Within the sector, Petra Heinlein is responsible for the segments
Financial Services, Consumer and Retail, Other Custom Research,
Custom Research Central and Eastern Europe, Custom Research
Latin America, Custom Research Asia and Pacifi c as well as Multi-
Segment Custom Research. Debra A. Pruent is responsible for
the segments Automotive and Business and Technology, while
Wilhelm R. Wessels heads up the segments Consumer Tracking
and HealthCare.
The Retail and Technology sector is managed by Dr. Gérard
Hermet and the Media sector by Wilhelm R. Wessels.
5.2 Administration: centralized approach for global services
In Group Services in the GfK Group, the Financial Services, Human
Resources, Central Services and Corporate Communications
departments fulfi ll centralized functions throughout the Group.
The Financial Services department includes Legal Services and
Transactions, Group Reporting, Group Taxes, Group Treasury,
Business Insights, Best Practice as well as Projects & it. Financial
Accounting and Operational Accounting in Financial Services
and the Central Services department provide services for most of
the companies in Germany. Outside Germany, the individual
GfK companies are largely responsible for these services them-
selves.
6. Purchasing
Purchasing traditional capital goods is of minor importance for
market research activities. In Germany, this purchasing is carried
out on a centralized basis by Central Services which is part of
GfK Group Services, as well as by it Services which is part of
GfK Data Services. This applies in particular for the purchase of
work materials and standard offi ce equipment.
it Services carries out centralized purchasing relating to standard
software, hardware infrastructure and telecommunications for the
German companies. With the support of the Chief Information
Offi cer (cio), it Services also concludes Group-wide agreements
and services enabling all companies in the GfK Group to purchase
it goods and services at favorable terms and conditions. The cost
budget for hardware, software and telecommunication services for
the whole Group amounted to around eur 60 million worldwide, of
which around eur 18 million was attributable to software.
7. Environmental protection
The careful and responsible use of natural resources is important
to the GfK Group. Through directives and recommendations,
all employees are urged to optimize consumption and observe
the principles of recyclability when carrying out their business
activities, especially with regard to the use of consumables.
Central Services and it Services at GfK are responsible for the
purchase and appropriate disposal of materials in Germany.
Outside Germany, the individual GfK companies are responsible
for these themselves.
8. Corporate communications and marketing
Corporate Communications is responsible Group-wide for internal
and external communications for the GfK Group and comprises
the three departments Public Relations, Corporate Design/Corporate
Identity and Investor Relations. The target groups include
representatives from the media, the general public, employees,
shareholders, investors and fi nancial analysts. The Investor
Relations department and its duties are outlined separately in the
section “GfK shares” in the image section of this Annual Report.
To effectively supply this extensive corporate network and the
general public throughout the world with information, the
Corporate Communications department at head offi ce made
greater use of innovative, digital technologies in 2008. This
included more webcasts, digital newsletters, rss (Rich Site
Summary) feeds on the internet and the relaunch of the global
online database.
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Opportunity and risk position
8.1 Corporate communications: providing information using new
and existing services
In the reporting year, GfK se published a total of 76 press releases
in Germany, around 15% more than in 2007. The coverage in the
print media comprised around 15,000 articles, an increase of 25%
compared to the previous year.
Since the rss feed function was set up on the GfK Group’s website
in May 2008, interested parties have been able to automatically
subscribe to new content posted in the Press section of the
website. By the end of 2008, this function was being used by
102,000 contacts.
GfK’s website recorded 6.6 million page views, around 15% more
than in 2007. The Corporate Communications department processed
4,000 e-mail enquiries.
In December 2008, the company picture database, GfK Image-
world, was relaunched, offering all employees worldwide access
to a pool of over 6,600 images for print media, presentations or
brochures.
8.2 Marketing: sharpening the brand image
Most of the marketing activities of the subsidiaries in the GfK Group
are carried out independently, but in close consultation with Corporate
Communications.
Trade fairs and conferences play a key role as marketing instru-
ments. GfK either organized or participated in a total of 185 events.
In addition, the GfK Group appeared at the main market research
trade fairs: at the end of March as the silver sponsor at the arf
(Advertising Research Foundation) Annual Convention (Re: think
2008) in New York, usa, as one of the main sponsors at the Esomar
Annual Congress in Montréal, Canada in September and at the
German market research trade fair Research & Results in Munich
in November.
At the end of 2008, as a further Group-wide marketing measure in
addition to the existing image campaign, Corporate Communications
developed a new corporate design concept for advertisements,
which should further harmonize and enhance the brand identity of
GfK at international level.
9. Opportunity and risk position
The early identifi cation, evaluation and professional management
of risks represent the basis for GfK for leveraging the opportunities
in the market research market in a responsible manner.
Risk and opportunity management in the GfK Group is continually
reviewed and further developed. In 2008 for example, more improve-
ments were made to systematic risk quantifi cation. As in previous
years, the Group’s external and internal auditors confi rmed the
effectiveness of GfK’s early opportunity and risk identifi cation
system.
9.1 Principles of opportunity and risk management:
integrated system
principles of risk management: to safeguard the continued
success of the GfK Group in the market, the GfK Group must
consistently exploit opportunities as they arise. However, no
opportunity is without risk. To ensure the professional manage-
ment of risks and guarantee the identifi cation of resulting
opportunities, risk policy principles were drawn up which form
the basis for the entire opportunity and risk management system
of the GfK Group. The key tenets of the system are:
Only those risks which are known can be managed.
Risks must be systematically assessed.
Risk management is a duty for everyone.
These principles are integral to the structures and business
processes of the GfK Group.
responsibilities and functions:
Risk management coordinators
The direct responsibility for early identifi cation, management
and communication of risks locally lies with the business manage-
ment of the individual GfK companies. Local risk management
coordinators promote risk awareness and ensure that the prescribed
central principles are implemented by the respective organizations.
Risk Management Committee
The Management Board has established a Risk Management
Committee under the terms of its overall responsibility for
the opportunity and risk management system whose standing
members include the cfo as Chairman, the Global Head of
Corporate Finance as well as an employee from the Business
Insights department responsible for risk management. The
Committee is charged with the continuous development and
updating of rules for group-wide effi cient and functional
opportunity and risk management. Beyond this, the Committee
remit also extends to identifying relevant risks and notifying the
Management and Supervisory Board of the current risk position
within the Group.
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Whistleblowing: taking the initiative
GfK encourages all its staff to report any actual or suspected
infringements of any statutory or internal regulations. Staff
members can contact their superiors, the risk management
coordinators, internal audit or Human Resources. If employees
do not wish to use these channels, they can also make an
anonymous report under the terms of the whistleblowing
regulations.
processes: In order to take full account of the opportunities and
risks, the GfK Group applies an integrated opportunity and risk
management strategy. This involves identifying and managing
the strategic and operating risks and arising opportunities at the
level of the various GfK companies, GfK regions, GfK sectors and
Group level.
All principles, functions and processes of the GfK Group opportunity
and risk management system are documented in a group handbook
to which all employees have access via the Group intranet, gfk4u.
The core of this system is the annual opportunity and risk inventory
carried out by the managing directors and risk management
coordinators covering developments relating to risks identifi ed in
the prior year and new risks that have emerged. Risks are assessed
according to the probability of their occurrence and extent of
potential damage for two consecutive years, so that concrete
measures can be specifi ed to manage them. In addition, the
individual Management Board members responsible for the
sectors identify the potential opportunities in their respective
sectors. If the risk situation changes signifi cantly or new risks arise
during the year, ad hoc reporting measures ensure that the
Management Board of the GfK Group is informed immediately.
A uniform Group-wide reporting system based on standard
criteria guarantees that fi nancial risks relating to current and
future business development trends are monitored and that
any opportunities arising are highlighted. Based on the com-
mercial data provided by GfK companies, the Group Reporting
and Business Insights departments produce monthly internal
reports which provide information on any potential risks to
business performance at an early stage. Further forecasts and
budget projections during the year provide key indicators of
any imminent commercial risks.
Comprehensive guidelines also form part of the internal controlling
process in which all mandatory approval processes and authorization
mandates are specifi ed. Internal Audit checks the structure and
functionality of the opportunity and risk management system at
regular intervals. The subject of opportunity and risk management
is also enshrined in all the audits carried out at subsidiary com-
panies and the insights from these audits and recommendations
made by the auditors in turn serve to further improve the system
for early identifi cation of risks and opportunities.
9.2 Assessing opportunities and risk: details
macro-economic: despite the repercussions of the inter national
economic crisis on the macro-economy which are currently still hard
to forecast, some experts expect a recovery in the global economy
as early as the second half of 2009. This assessment is based on the
expansive monetary policy and economy programs in the main
industrialized nations as well as weaker infl ation due to lower energy
prices. Sustained positive growth rates are also expected in Latin
America and China for example.
The GfK Group operates worldwide and is highly diversifi ed in
terms of its client, market and product portfolios. Consequently,
even a worsening in the macro-economy would not mean any
signifi cant acute risk to the Group. In addition, the stronger accent
on Asia and the Pacifi c and as well as Latin America as growth
regions gives GfK good opportunities for further positive
development in the overall market despite the weaker economic
position in the traditional industrial states.
Consequently, the GfK Group does not anticipate any signifi cant
risks arising from macro-economic developments which might lead
to any major erosion in orders or sales and income at Group level.
industry: the market research industry is unlikely to com pletely
escape the unfavorable economic framework conditions. However,
in the past it has proven to be relatively crisis-proof
and less susceptible to economic infl uences than other segments
in the marketing and advertising industry. With its global network,
the GfK Group is a full service provider offering a wide spectrum
of surveys and analyses and is therefore well placed to meet the
challenges posed by the impact of the fi nancial crisis and intensi-
fying competition.
GfK-Group: integrated opportunity and risk management system
Group level Sector level
Company level
GfK integrated
opportunity and
risk management
system
Elements of the opportunity and risk management system
Reporting system
Other(e.g. security standards,
integration concepts, etc.)Guidelines
Risk manage-
ment handbook
Opportunitiy and risk
inventory
Exceptional risk
reporting
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Furthermore, the diffi cult economic situation does open up
opportunities for international market research companies in
particular. For example, detailed analyses of the response and
behavior of consumers in the crisis will become increasingly
important as will information on the sales potential of products in
various countries. Through the fact-based consultancy approach
enshrined in its strategy, the GfK Group is already ideally
positioned to meet the increased need for consulting services on
the part of companies.
sector opportunities and risks: escalating concentration of the
client base due to mergers and acquisitions is affecting all three
GfK sectors. There is increased competition for the marketing
budgets of major companies, however, the dependency of the
GfK Group on such major companies continues to remain limited
and in fact, the share of Group sales accounted for by the 10 top
clients changed only slightly from 12% in 2007 to 14% in the
reporting year.
The risks relating to operational business are also only limited,
since none of the sectors generates more than 10% of Group
sales with a single client. The global presence of the GfK Group
further ensures that there is no substantial risk of any regional
dependency.
Despite the fi nancial crisis, the level of bad debts is also
insignifi cant in GfK’s broad-based client portfolio and the
liquidity position of the Group has not been detrimentally
affected.
To optimize the income situation in all sectors on a permanent
basis, GfK launched the group-wide biss fi tness and effi ciency
program (see also section 11.7. Development of the GfK Group),
which will make a substantial contribution to GfK’s continued
competitive-ness.
The specifi c risks and opportunities in the individual GfK sectors
are discussed below.
The portfolio in the custom research sector comprises continually
gathered data and ad hoc surveys tailored exclusively to individual
questions. In addition to the big, international groups, the ad hoc
segment is dominated by a large number of smaller, local providers.
This is due in part to the existence of market niches fi lled by
smaller suppliers and in part to the fact that market entry barriers
are lower, since they require a comparatively lower level of
investment than continuous market research. Smaller market
players frequently only cover a limited region or specialist
segment, and are therefore more narrowly positioned in the
market. Potential loss of orders to competitors in these segments,
for instance, because of a possible price advantage, presents a
risk here and this is countered by GfK with continuous analysis,
use of cost cutting potential and ongoing optimization of the range
of high quality, state-of-the-art products and methodologies on
offer. A prime example here is the online portal, GfK Octopus,
which clients can use to download and analyze data from surveys
they have commissioned.
Opportunity and risk position
In syndicated business, large-scale surveys are carried out
and offered to the market without any specifi c contract having
been received. One of the risks is the high cost of preparing the
surveys, when there are too few customers interested in buying the
analyses. However, syndicated business is predominantly on offer
where the experience of the past shows that there is an assured
number of takers. At the same time, this business area offers high
potential, since the smaller suppliers are not in a position to offer
such studies and each additional customer signifi cantly increases
the contribution margin.
The impact of the international fi nancial and economic crisis
represents a challenge for the Custom Research sector, especially
in the Automotive and Financial Services segments, as efforts to
cut costs here will affect the companies’ market research budgets.
National healthcare reforms, such as those in the usa, could mean
budget restrictions by the pharmaceutical industry. Greater use of
generic drugs is putting increasing pressure on the pharmaceutical
manufacturers, which ultimately impacts on their market research
budgets. The failure to obtain approvals from the Food and Drug
Administration (fda) in the face of increased obstacles in the light
of the more stringent political climate presents a continuing
problem in the HealthCare segment.
However, GfK is well equipped to deal with these problems as
well as the intensifi ed competition resulting from the economic
situation. Longstanding customer relationships and a comprehen-
sive portfolio of products and services provide GfK with a solid
foundation for success, as do its valuable databases, comprehen-
sive household panels and high data quality.
Global key account management has been developed further to
respond to the requirements of major clients operating globally.
In addition, customer expectations are evolving further in the
direction of the cross-sector services offered by the GfK Group
and the demand for online market research is continuing. Since
GfK has been able to establish its online panels and techniques
internationally at an early stage, the Group is well represented in
this area. GfK’s online business benefi ts from the fact that clients
are increasingly focusing on the quality of the research work
carried out. There are new opportunities arising in the HealthCare
segment, including in the fi eld of medical devices and the wellness
market which is continuing to boom.
In this market environment, GfK’s increasingly international
network is an advantage as international groups, and therefore the
top clients in the sector, consider this global aspect to be one of
the key criteria when awarding contracts. The demand for market
research in emerging markets in particular is also continuing. By
expanding its presence in these growth regions, especially in Asia
and the Pacifi c as well as Latin America, GfK is consolidating its
reputation as a global player as well as generating additional
business in local markets. Consequently, the further expansion of
the Group’s presence is seen as the greatest opportunity for the
Custom Research sector. Transferring existing market research
instruments to new countries also leverages synergetic effects.
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An attractive and modern range of products and services will
enhance the loyalty of existing clients and attract new ones to
create new opportunities. In Austria for example, the successful
switchover to scanning as the recording methodology in the
Consumer Tracking household panels led to improved data quality,
faster reporting and an increase in the product group spectrum.
This new technology will now be gradually rolled out in the GfK
companies in Central and Eastern Europe. The extension of
functionalities offered by the web-based evaluation software
Analyzeit also exploits the potential opportunity to enhance
customer loyalty. The GfK smart software solution which improves
the research process for mystery shopping processes and increases
the quality of the evaluation is another example of innovative
solutions in the Custom Research sector. The newly created position,
Global Head of Innovation, highlights the importance GfK attaches
to this new issue as an opportunity factor, especially in the current
economic environment.
GfK is the leading global provider in the retail and technology
sector and is well positioned in terms of risk with regard to
dependency on major clients and data suppliers.
GfK is distinguished above all by its global network based on an
uniform production and reporting system, as well as its own extensive
database. The StarTrack platform is a sophisticated tool through
which GfK offers up-to-date services to its clients with global
operations. The consistently maintained technological edge in the
market, systematic expansion of the service spectrum and consistent
worldwide expansion are the strategic cornerstones used by the
sector to exploit opportunities to further extend its market position.
In addition to the increased expansion of Retail and Technology
business activities in a number of African states, the sector’s
position in the emerging markets is also being improved. The
acquisition of Shopping Brasil for example strengthened its market
position in Latin America and the growing entertainment business
activities were also expanded.
For the future, increased reporting frequency, including in real
time, where fi ndings are delivered whilst data gathering is ongoing,
also offers the sector further sales potential. The introduction of
StarTrack-Explorer in 2008 offering a global standard format and
in-depth analysis, which clients can use to speedily create reports
tailored to their individual requirements online for the fi rst time,
further increases client loyalty and improves the already excellent
competitive position of the sector.
A signifi cant number of sales recorded by the media sector
resulted from long-term fi xed-volume contracts for continuous
tv and radio audience research. The client relationships emerging
from such contracts also offer a range of opportunities. On the
other hand, the associated dependency on major clients also
presents a signifi cant risk.
The current diffi cult market environment, especially in the us print
segment, represents a challenge for the sector. Alongside intensifi ed
customer services, this risk will be countered in particular through
the launch of new products in the market.
The new GfK tc Score measuring technology enables tv viewing
at a later time, e.g. via fi xed disk or dvd recorder, to be recorded.
The development of the Evogenius international software platform
represents a contemporary holistic instrument for the production
and analysis of media usage data. In the future, analysis will also
include information on radio, print and online usage. The growing
interest in cross-media studies, which deliver information on the
cross-media usage of a person combined with consumer and buyer
data, also offers GfK additional opportunities.
Delays arose during the development work on the reporting
element of the Evogenius media software compared to the original
project schedule. Negotiations were held with the main customer,
the German client on whose behalf the tv ratings are measured,
to resolve the diffi culties. As a result of these talks, GfK stopped
development of its own reporting software and in return was
granted the right to sell and use tv Scope, the client’s software,
on an international basis.
In recent years, the media market has been shaped by comprehen-
sive changes. New broadcast technologies, digitization and altered
tv audience behavior present particularly complex challenges to
the measurement of tv consumption. For instance, the mobile tv
offering is constantly on the increase and here, GfK is already very
well positioned, with a high level of potential for the future. GfK has
responded to out-of-home viewing, for example at major events
and in public places, with mobile data measurement systems, such
as MediaWatch, an electronic device integrated in a wristwatch
which records the use of various media.
personnel risks: The developments in the economic environment
also affect the labor market. However as before, recruiting and
retaining qualifi ed staff remains one of the most important tasks for
the GfK companies. GfK offers a varied qualifi cation and further
training program and is constantly working on optimizing its personnel
structures in order to recruit, integrate and keep management and
specialist staff in the longer term. The fi ndings from the Group-
wide employee survey carried out for the fi rst time in 2008 will also
be used for this purpose.
fi nancial risks: GfK has covered its fi nancial requirement with
a syndicated bank facility comprising a fi xed euro and us dollar
tranche and a variable revolving euro tranche. On the reporting
date, the fi xed tranches equated to eur 79.2 million and usd 74.8
million respectively and around 74% of the revolving credit
totaling eur 250 million had been drawn down at the fi nancial
year-end. Under the terms of an agreement, the revolving credit
line is available to GfK se until the end of October 2011. From
October 2011 to October 2012, the amount reduces to around
eur 218 million. In addition to the syndicated credit line, GfK also
has bilateral credit lines amounting to around eur 58 million at
its disposal, of which only a good 22% had been used by the
year-end. In total, on the reporting date, the balance of remaining
credit lines was eur 111.9 million (previous year: eur 165.3
million).
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interest rate hedging was reduced compared to the previous year
in order to take advantage of falling interest rates in the money
market and to utilize expectations of a lower level in the capital
market for medium-term interest rate hedging.
As at the reporting date of December 31, 2008, the interest rate
hedges had a positive fair value totaling eur 0.1 million. The
counterparty risk in connection with the positive fair value of all
derivatives is regarded as low, since transactions are only con-
ducted with reputable German and international banks. In addition,
the counterparty risk is reduced as transactions are spread across
several banks.
legal risks: In many countries, such as Germany, the uk
and France, the subject of apparent self-employment is still an
issue. This harbors the risk that the interviewers and other
freelancers working for GfK could become liable for social security
contributions. GfK avoids additional costs by adjusting the
employment terms to the respective national legislation as far as
possible.
The planned amendment of the German Data Protection Act would
make telephone market research in Germany more diffi cult.
Together with Arbeitskreis Deutscher Markt- und Sozialforschungs-
institute e.V. (adm), GfK has launched an initiative to exempt opinion
and market research from the planned restrictions.
GfK is involved in civil proceedings in a number of different
countries. However, the Management does not believe that these
present any signifi cant risks to the GfK Group.
risks ensuing from acquisitions: The acquisition of new
companies and their integration into the Group are associated with
risks. As part of its Excellence management training program, a
tailored concept was developed which describes the sequence of
measures required when integrating newly acquired companies
and which clearly indicates the areas of responsibility. The
participation of colleagues from the global GfK network ensures
compliance with all the requirements from an operating and
communications perspective.
Legal and accounting due diligence, usually carried out with the
support of experienced local teams of consultants, alternative
valuation methods and clear business plans are the precondition
for an acquisition. In most cases, the vendor’s management
remains with the company for several years as a minority share-
holder and/or director so as to ensure a clear motivation to assure
the sustained success of the company.
To further strengthen the fi nance base and extend the investor
group, despite the diffi cult market conditions, GfK se issued
a eur 50 million loan note at the end of 2008. The loan note
matures in November 2011 and the principal is repaid on maturity.
The funding elements indicated and an existing cash holding of
around eur 37 million at the reporting date assure the sound
fi nancial basis of the Group.
Overall, although the GfK Group expects higher margins will be
payable to its lenders, it does not anticipate any adverse liquidity-
related impact on its business from the fi nancial market crisis.
foreign currency risk: As a global company, the GfK Group is
exposed to transaction and currency translation risks.
The transaction risk results from the sale and purchase of goods
and services which are not paid for in the local currency of the
respective GfK business unit. Due to the fact that all GfK operating
companies have sales and expenses in the local currency, the
currency risk of the GfK Group is restricted. Group guidelines
regulate that all GfK companies monitor their currency risks and
hedge against currency fl uctuations for projects over a certain
size.
As a rule, GfK provides in-house fi nancing in the local currency for
subsidiaries. The ensuing currency risks in the Group’s Treasury
are hedged using derivatives. Hedging transactions usually run for
a maximum of 12 months. The offsetting effects of the underlying
transaction and the currency hedge are recognized in the income
statement and are consequently identifi able.
The currency translation risk is due to the fact that many GfK
companies are outside the euro zone, while GfK reports its
accounts in euro. In the consolidated fi nancial statements, the
balance sheets and income statements of companies outside the
euro zone must be converted into euros. The translation-related
effects from changes in exchange rates are shown under equity
in the GfK consolidated fi nancial statements. As the participations
are generally of a long-term nature, GfK dispenses with hedging
directly for net assets. Instead, the Group tries to use natural
hedges to provide cover for participations. To do this, the fi nancing
is in the currency of the respective company, so that the currency
fl uctuations are kept to a minimum. In order to eliminate volatility
in the income statement relating to the reporting date valuation
of currency liabilities, GfK uses hedge accounting according to
ifrs and valuation effects are reported under equity accordingly.
interest rate risk: At GfK, interest rate risks mainly arise for
fi nancial liabilities. In 2005, GfK used the favorable interest rate
conditions to fi nance the nop World acquisition and to safeguard
interest rates on a long-term basis and ensure greater accuracy
when calculating fi nancing requirements. For this reason, as of the
reporting date, GfK se had hedged 56% of its fi nancial liabilities
with interest rate swaps. The proportion of fi nancial liabilities with
Opportunity and risk position
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it and other risks: Installation, maintenance and further
development of security measures to protect information systems
and the data they contain are essential for GfK. Precautionary
measures serving to ensure the security of information technology
and its applications have always been given the highest priority.
The Group-wide security policy based on the recognized British
Standard 7799, adopted by the Management Board, was im-
plemented worldwide in 2008 and specifi es the mandatory it
security standards for the Group. In addition, the “moveit” project,
resolved by the Management Board as part of the Group-wide
biss initiative, includes concentrating the global computing center
services in a small number of global locations as well as extending
the Group-wide it standards. As a result all the security measures
and standards relevant to the Group will focus on these computing
center locations and any residual risks in it security will be
minimized as a result.
All the aforementioned measures as well as the it strategy of the
GfK Group and the Group-wide it security plans are coordinated
by the Chief Information Offi cer (cio), who reports directly to
the ceo. Security issues are dealt with in cooperation with the
it security specialists based in GfK companies in Germany and
abroad.
it audits also form an integral component of the audit conducted
by the Internal Audit department and are carried out locally by
it specialists.
GfK continuously assesses other risks beyond those relating
to it as part of its disaster recovery plan.
Material risks relating to losses and liabilities are either covered
locally or by Group-wide umbrella insurances.
No substantial risks relating to research and development activities
have currently been identifi ed. GfK monitors the development
of large-scale, cost-intensive innovation projects by a system of
regular reporting.
No major it risks or other risks have currently been identifi ed in
the GfK Group.
9.3 Assessing risks and opportunities: overall view
Despite the downturn in the macro-economy, the risks of GfK are
limited and should not materially affect the net assets, fi nancial
position or result of operations of the Group. An overall assessment
of the risk position of GfK also shows that no lasting threat to
business development is to be expected as a result of individual
risks or the interaction or accumulation of risks.
Potential opportunities for the GfK Group have been identifi ed,
particularly in relation to the further expansion of its global
network and the availability of an innovative product portfolio
incorporating state-of-the-art technology and which responds
optimally to client needs. The core competence of reliable and
high quality consulting opens up further opportunities to position
the company in the market, particularly in the current diffi cult
economic environment. The Group has also defi ned its future
opportunities in the strategic 5-Star Initiative program launched in
October 2005. The aims and objectives of this program continue to
form the basis for the future activities of GfK.
The following table provides an overview of the key points relating
to the risks and opportunities for the GfK Group:
To summarize, it can be concluded that the overall risk position
of the GfK Group continues to be assessed as low. No risks have
currently been identifi ed which might jeopardize the continued
existence of the GfK Group.
10. Major events since the end of the financial year
10.1 Changes in the GfK Network
The GfK Group expanded its network in North America at the start
of 2009 with the acquisition of a majority holding in the American
company Etilize and increase in its shareholding in Dmrkynetec
at the start of February 2009. Over the course of the year, GfK
increased its holding in the French company ifr from 24.2% to
100%.
Strengths Weaknesses
Internal factors – broad, high-quality and
innovative portfolio of
services and products
– fact-based consultancy
– high level of customer
loyalty
– international network
– high level of staff know-
how
– Dependence on major
customers
– Heterogeneous structures
in regions on account of
acquisitions
Opportunities Risks
External factors – relatively crisis-resistant
market research sector
– increasing need for
information and advice on
customers’ side
– Demand for high-quality
products
– overall macro-economic
development diffi cult
– sustained concentration
on customers’ side
– fi ercer competition
– changes in legislation and
policy
Changes in the GfK network
Company
Type of
investment
Share changes
in % Sector Region
Etilize Majority
interest
51 Retail and
Technology
North
America
Dmrkynetec Share
increase
from 26 to 75 Custom
Research
North Ame-
rica/Western
Europe/Middle
East/Africa
ifr Share
increase
from 75.8 to 100 Retail and
Technology
Western
Europe/Middle
East/Africa
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10.2 Conversion of GfK ag to a Societas Europaea
The conversion of GfK ag to a Societas Europaea, or European
Company, was completed on February 2, 2009. Through
this change in legal form, GfK is taking greater account of the
increasingly international direction. An se is a supranational
legal entity formed under European law, which corresponds to
the GfK Group’s understanding of itself and further underpins
its international perspectives and structure.
The se particularly promotes the further development of GfK’s
international corporate culture. This offers all employees and their
representatives the chance of European involvement. In future,
through their elected representatives on the se Employee Council,
all employees in the eu Member States and the European Economic
Area will be able to receive information direct from the management
of GfK se and enter into a structured dialogue on transnational
issues. At the centre of this dialogue are the employees, as through
their motivation and commitment they make a lasting commitment
to the success of the company. Furthermore, the interests of all
European employees covered by the scope of the agreement on
employee representation are represented on the Supervisory Board
of GfK se.
This agreement is not only intended to lead to a structured
dialogue between GfK se and the European employee represen-
tatives but also international cooperation among the European
employee representatives themselves. The aim is to have a
European dialogue between the management of GfK se and the
employee representatives as well as the representative inclusion
of the European employees.
From the date of registration of GfK se until the Annual General
Meeting on May 20, 2009, the following employees were appointed
as the employee representatives on the Supervisory Board: Dieter
Wilbois, GfK ag, already a member of the Supervisory Board,
Stephan Lindeman, Intomart GfK and Shani Orchard, GfK Retail
and Technology uk.
10.3 Placement of loan note
In March 2009, GfK started the placement of a second loan note
amounting to a minimum of eur 50 million with a term of three
years. In advance of the issue of the loan note, on March 9, 2009,
GfK obtained bridging fi nance for the same amount until the end
of the year at most from the lead bank.
11. Outlook*
11.1 Macro-economic situation: phase of uncertainty
Experts expect a recession in the main industrialized countries.
However, it is not yet possible to precisely estimate how severe
this recession will be because of the various economic programs
implemented by the countries and states. Moreover, it is still
unclear how much bad debt or overvalued assets the fi nancial
institutions still have on their books.
Yet the International Monetary Funds (imf) is expecting a recovery
in the global economy at the end of 2009. The reasons given for
this are the economic programs in the key countries and lower
infl ation due to the fall in energy prices. The latter is already having
a positive impact on private households and provides some
compensation for declining exports.
Positive growth rates are still expected for China, India and other
emerging countries, which could also push up the average for the
macro-economy.
11.2 Market research sector: crisis brings opportunities
The market research sector has so far proved comparatively crisis-
resistant in diffi cult times. International companies with a broad
base, in particular, have the prerequisites for continual growth.
For example, in the adverse economic environment of 2008, the
GfK Group recorded organic growth in sales of 5.5%. A similar
trend was evident in the economic crisis of 2001. While global
growth stood at 2.4%, the GfK Group achieved organic growth
of 6.1%.
2009 will be a diffi cult year and poses two challenges for the
market research sector. Alongside the repercussions of the
fi nancial market and economic crisis that as yet cannot be clearly
estimated, price pressure from customers is expected to intensify.
In this environment, GfK is well positioned with its global presence
and innovative products. GfK has a stable panel business and
the access barriers for the competition are very high. In times of
uncertainty regarding the future recovery in consumer behavior,
market research is essential.
It is to be assumed that in the wake of globalization, more and
more clients will instruct market research companies to conduct
international market research projects. Producers in industrialized
countries facing the threat of sales losses in 2009, and indeed the
emerging markets as well, want to know more about their export
countries. The spotlight is turning to the sales potential for the
respective products in the various countries and the need for general
information on the culture and particular nature of consumers
in the respective sales markets is also becoming increasingly
Outlook
*The outlook contains predictive statements on futures developments, which are based on current
management assessments. Words such as “anticipate”, “assume”, “believe”, “estimate”, “expect”,
“intend”, “could/might”, “planned”, “projected”, “should”, “likely” and other such terms are state-
ments of a predictive nature. Such predictive statements contain comments on the anticipated
development sales proceeds, income and personnel numbers for 2009. Such statements are subject
to risks and uncertainties, for example, economic effects such as exchange rate fl uctuations and
changes in interest rates. Some uncertainties and other unforeseen factors which might affect
ability to achieve targets are described under “risk position” in the Management Report. If these
or other uncertainties and unforeseen factors arise or the assumptions on which the statements
are based prove to be incorrect, actual income may vary considerably from the fi gures indicated
or implied in the statements results could materially differ from the results indicated or implied in
these statements. We do not guarantee that our predictive statements will prove to be correct.
The predictive statements contained herein are based on the current Group structure and are
made on the basis of the facts on the day of publication of the present document. We do not intend
nor accept any obligation to update predictive statements on an ongoing basis.
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important. Alongside this qualitative, ethnographic information,
comparability of the results of multi-country studies is also
becoming important. Cost-saving products and marketing plans
that are to be successful in more than one market can only be
created with comparable data. This requires international expertise
and a global presence on the part of the market research organi-
zations concerned. Increasing competition here will crowd
out smaller market research companies. This in turn opens up
opportunities for international companies, so the crisis brings with
it new chances. Consumers are reacting to the changing world and
the demand for market research information will rise long term.
Moreover, GfK has a good fi nancial base, a solid foundation and a
clear corporate strategy. A high degree of fl exibility allows GfK to
respond appropriately to changing market conditions.
More than ever, it is important to know how communications
works, how products and services need to be designed and which
innovations will be successful. The trend shows that clients are
becoming more demanding and the depth of analysis is increasing,
for example through complex multivariate procedures which assess
the interplay of various variables. Only companies with a high level
of expertise in methodology and highly qualifi ed employees can
meet these requirements.
As a research fi eld, customer satisfaction and loyalty surveys will
gain in importance, especially in markets with fi erce competition.
In saturated markets, it is more cost-effective to retain existing
customers than to go through the costly business of attracting new
customers. Integrating this survey data in Customer Relationship
management systems and the systematic use of all information to
improve customer relationships is a service increasingly provided
by market research consultancy companies.
Another emerging trend is that customers increasingly want the
results of their surveys in realtime but with top quality at the same
time; a requirement that is most closely met by online research.
Use of the internet is so widespread in most industrial and
emerging countries that reaching the target group is hardly a
problem any more. Online research is the market research
procedure offering the greatest growth potential due to its speed,
comparatively low cost and ease of reaching the target group.
Yet the internet will not only continue to gain ground as a survey
platform, but is also becoming increasingly important as a source
of information for companies. It is the task of market research to
offer companies the instruments they need to analyze the commu-
nications of customers in forums and blogs.
At a qualitative and quantitative level, hybrid procedures, i.e.
looking at the issue being surveyed using at least two different
methods, are likely to become more important. On the quanti-
tative side, this poses the challenge of having to merge data
from different sources, which in turn is likely to be feasible only
for those market research companies that possess outstanding
methodology expertise.
11.3 Research and development: ahead of the market
The GfK Group will also increase the benefi t for clients through
relevant innovations in 2009. To do this, the Group works closely
with the basic research of GfK-Nürnberg e.V. Work currently
underway includes a cooperation with the University of Geneva
and Fraunhofer-Institut to examine whether it is possible to
automatically identify emotions using software-supported analysis
of test person videos.
Custom Research
There are plans to carry out a study together with the Hartman
Group in Seattle to analyze the infl uence of the global economic
crisis on buying habits and customers’ perception of their
purchasing power. This study forms the basis for further discus-
sions with brand manufacturers and retailers on new, innovative
approaches to categorizing the experiences of consumers.
In cooperation with market research company tns, GfK will look
in depth at the behavior of consumers during the economic crisis
via the Europanel. The corresponding basic research studies will
be carried out in the household panels.
In the United States, GfK HealthCare will primarily concentrate
in 2009 on further improving existing products. This includes for
example Therapeutic Class Studies (multi-client studies), Detail
Tracker (advertising impact research) as well as the establish-
ment of centers of competence for diabetes, managed care and
immunology and biological preparations. An important component
of these research initiatives will be the option of carrying out
regular tracking studies.
Retail and Technology
GfK launched a new panel for mobile phones in Iraq. The fi rst
results are expected in April. The sector is also driving forward the
establishment of panels in Africa and panel starts for consumer
electronics and electrical household appliances are expected this
year in the Ivory Coast, Kenya, Mozambique, Nigeria, Tunisia,
Algeria, Uganda and Tanzania.
Media
Development activities in the Media sector are concentrated at
GfK Telecontrol, the sector’s center of technical competence. Here
work continues on further optimization of measurement systems
for future-proof electronic tv and radio research.
11.4 Human Resources: focus on internationalization
The internationalization of the Human Resources department
started successfully in 2008 and will be continued in 2009. The
central tasks for 2009 are the introduction of global succession
management, wider dissemination of hr methods via a centralized
system for personnel processes as well as greater support for the
local Human Resources departments to reduce the staff turnover
rate.
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11.5 Corporate Communications and Marketing: spotlight on
promising technologies
To meet the needs of a global communications strategy, the
GfK Group is increasingly using innovative, digital technologies.
In 2009, this trend will be further intensifi ed within the constantly
growing corporate group. Work was progressed in 2008 on the
development of a mobile website that went online in January 2009.
The content of the GfK website was reworked to make it accessible
using mobile devices. Among the global full-service organizations
in the market research industry, GfK is a pioneer in this fi eld.
In addition to further expanding its worldwide coordinated press
activities, Corporate Communications will also be updating the
visual GfK world and strengthening the presence of the company
in the international marketplace.
11.6 Investments and fi nance: network expansion and
debt reduction
Authorized capital, free capital lines as well as positive cash fl ow
development provide the GfK Group with suffi cient equity and
outside capital.
The GfK Group will again use a large portion of the free cash fl ow
to expand its own network and reduce debts in 2009. Furthermore,
the Group will continue to invest in new measurement technologies
and panels.
In the current fi nancial year, the GfK Group is planning to carry
out maintenance and replacement expenditure of around 4%
of planned sales, which corresponds to the previous year’s level.
The current fi nancial and economic crisis is not likely to have a
signifi cant impact on fi nancing at GfK. Through its longer-term
fi nancing under the syndicated credit facility which runs until
2012, as well as the recent issue of the borrowers’ note, GfK has
a balanced credit portfolio. Interest rate risks are also hedged
through interest rate hedges.
11.7 Development of the GfK Group: aiming to increase sales
and income
5 Star Initiative
GfK will continue to pursue the aims and objectives under the
5 Star Initiative in 2009. The fi rst Fact-Based Consultancy initiative
concerns the consistent establishment of a service package of high
quality, fact-based and continuous consultancy services for the
client’s top management. The second objective, top 3, enshrines
GfK’s vision for its positioning in the global market for market
research. GfK aims to be the number 3 in the industry and at the
same time the number 3 in every major market research country in
Europe, America and Asia and Pacifi c as well as in each of its three
sectors. The third objective relates to the Global Reach initiative
under which GfK aims to further expand its global network and
establish its own companies in all relevant countries. With its fourth
objective, the Full Service initiative, GfK intends to continue to
position itself as a full service market research company. Under the
fi fth initiative, Outstanding Financial Position, GfK is aiming in
the medium term for sales of eur 1.5 billion and includes plans for
further acquisitions, especially in the growth regions Central and
Eastern Europe, Latin America and Asia and Pacifi c. In addition,
the Group aims to achieve an income margin (adjusted operating
income in relation to sales) in the range of 13% to 15%.
biss fi tness and effi ciency program
To optimize income on a long-term basis and in all sectors, the
GfK launched the Group-wide biss fi tness and effi ciency program.
The program was launched in 2008 and will accompany the
GfK Group until 2011.
Various projects are pooled under biss, which can be divided into
four main categories Business, it-Services, Streamline Services
and Synergies. The fi rst category (Business) aims to achieve
organic growth from new technologies/services and their
international roll-out.
The second category (it-Services) focuses on the consolidation
of the it infrastructure with regard to cost reduction and quality
improvements. Here the “moveit” project includes a concen-
tration on the global computing center services at global
computing center locations as well as an expansion of Group-wide
it standards.
The Streamline Services department focuses on effi ciency increases
through the amalgamation of locations and structures. Synergies
comprise measures resulting from the identifi cation of potential
from various selected cost types.
biss will make a considerable contribution to maintaining GfK’s
competitiveness on a permanent basis. The program is set to
produce annual income increases of at least eur 30 million and its
effects will be felt in full as of 2012. Of this increase, 30% will
already be achieved in 2009, a total of 60% in 2010 and around
90% in 2011.
In the period 2009 to 2011, project expenses of around eur 40
million are expected in order to achieve the income improvement.
These project expenses will be incurred as follows: 30% in 2009,
35% in 2010 and 35% in 2011.
Of this eur 40 million, around eur 11 million will be reported as
highlighted items between 2009 and 2011. 40% will be allocated
to 2009, 25% to 2010 and 35% to 2011.
Overall, the biss effi ciency improvement program should therefore
already have a positive impact on ebit and adjusted operating
income in 2009.
Outlook
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Forecast and order intake
Against the backdrop of the current economic environment and
persistent downturn in framework conditions, the GfK Group
is still aiming to achieve organic growth in sales in fi nancial
year 2009 and will take measures to maintain the margin at the
previous year’s level.
The management assumes that the start to fi nancial year 2009 will
be considerably more restrained than 2008 and that the pace of
growth in sales and income will not pick up until the second half
of the year. The effects of the biss fi tness and effi ciency program
will also become more evident then.
As expected, the GfK Group was unable to fully escape the
downturn in the economic environment at the start of 2009
and the order intake in the new fi nancial year has been slower.
As at the end of February 2009, the order book covers a total
of 39.4% of the expected annual sales (previous year: 42.2%).
Traditionally however, the fi rst two months do not provide any
indication of business development for the full fi nancial year.
GfK anticipates that the highlighted items will be in the range
of eur 27 million to eur 32 million (including biss) (previous
year: eur 32.0 million net of ubm settlement).
income from participations is expected to match the previous
year.
net fi nancial expenses are set to stand at around eur 20
million.
In total, GfK aims to achieve a group tax ratio of approxi mately
30%.
Although the GfK Group cannot estimate how the economy will
develop in the longer term, the Management Board assumes
that the market research sector will return to its growth course in
the coming years. As a result of its very good competitive position,
the GfK Group aims to outperform the market research sector
in terms of organic growth in the medium term. The consistent
alignment with and implementation of the 5 Star Initiative will
continue to determine the actions and objectives of the GfK Group
in the future.
Nuremberg, March 12, 2009
Prof. Dr. Klaus L. Wübbenhorst
Christian Weller von Ahlefeld
Petra Heinlein
Dr. Gérard Hermet
Debra A. Pruent
Wilhelm R. Wessels
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Germany
The homeland of the GfK Group is the world’s third
largest research market. This is where GfK was born
in 1934, at the University of Erlangen-Nuremberg, as
Germany’s first market research institute. Germany is
where GfK achieved market leadership some 20 years
ago, where it went public in 1999 and from where it
pursues its policy of global expansion. These days,
the group’s network consists of 155 companies whose
services cover more than 100 countries. In Germany,
the GfK Group has 19 companies (firms, subsidiaries
and offices), which together account for around one
quarter of the Group’s worldwide sales.
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Oktoberfest in Munich / Germany
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Western Europe/the Middle East/Africa
Western Europe is the largest of the GfK regions.
The first subsidiaries were established in Austria,
the Netherlands and France in the 60s and today,
a total of 49 companies operate in 17 countries.
GfK Marketing Services South Africa opened its
doors in 2001 and in 2004, GfK-MEMRB Marketing
Services Maroc was born in Morocco, the gateway
to Africa. In 2008, GfK set up its first subsidiary in
Nigeria, GfK-MEMRB Marketing Services Nigeria,
while in the Middle East, GfK maintains an active
presence in 13 countries in the Retail and Technology
sector from its Dubai-based company, GfK-MEMRB
Marketing Services.
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Football fans in Johannesburg / South Africa
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Central and Eastern Europe
In 1989, GfK opened its Hungarian branch as the
opening gambit in its pursuit of Central and Eastern
Europe. Today, GfK has 27 companies carrying out
research in a total of 21 countries extending from
Albania via Kazakhstan to the Ukraine. GfK currently
directs its market research operations in most Central
and Eastern European countries from its springboard
in Austria.
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The Mariinsky Theater in St. Petersburg / Russia
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North America
GfK has been active in the USA, the world’s biggest
market research country, since 1999, the year of
its stock market flotation. The first step was to
acquire GfK Custom Research and this was followed
in 2005 by further milestone launches in Canada
and acquisitions including British market research
company, NOP World. In 2008, the US-based Arbor
Strategy Group joined the GfK Group to continue
operations under its new name, GfK Strategic
Innovation. GfK currently has 13 subsidiary companies
in the USA and Canada.
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Marathon in New York City / USA
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Latin America
GfK launched operations in Latin America with the
opening of its own company, GfK Indicator, in 2002,
having already offered clients information services
relating to several Latin American markets for many
years through its cooperation with partner associates
in the GfK Custom Research Worldwide network.
GfK has 12 subsidiaries delivering information on
20 countries in the Custom Research and Retail and
Technology sectors. GfK also acquired Shopping
Brasil and its 50-strong staff in 2008, making it the
market leader in Brazil in the Retail and Technology
sector.
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Carnival in Rio / Brazil
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Asia and the Pacific
GfK has been active in the Retail and Technology
sector in Asia for over 25 years. Today, the GfK Group
can boast 27 local subsidiaries covering a total of
16 countries in the region. In 2008, GfK strengthened
its network in Asia and the Pacific by acquiring
Sydney-based leading custom research organization,
the Blue Moon Group, in Australia. In addition,
GfK Marketing Services established its first branch in
New Zealand to come one step closer to its declared
aim of expanding its presence in the growth region of
Asia and the Pacific.
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Flood festival on the Ganges / India
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Consolidated income statement 100
Consolidated balance sheet 101
Consolidatet cash flow statement 102
Consolidatet statement of recognized income and expense 103
Notes to the consolidatet financial statements for 2008 104
Supervisory Board 134
Management Board 136
Declaration on the German Corporate Governance Code 137
Shareholdings of the GfK Group 138
Auditors’ report 143
Financial statements of the GfK GroupFinancial statements of the GfK Group
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Note 2007 2008
Sales 5. 1,162,055 1,220,433
Cost of sales 6. – 781,393 – 840,650
Gross income from sales 380,662 379,783
Selling and general administrative expenses 7. – 252,034 – 248,917
Other operating income 8. 25,813 54,296
Other operating expenses 9. – 18,064 – 56,254
Operating income1) 136,377 128,908
Income from associates 3. 3,001 3,614
Other income from participations 3. 48 294
ebit 139,426 132,816
Other fi nancial income 12. 7,901 16,010
Other fi nancial expenses 13. – 30,270 – 35,807
Income from ongoing business activity 117,057 113,019
Tax on income from ongoing business activity 14. – 25,664 – 30,997
Consolidated total income 91,393 82,022
Attributable to equity holders of the parent: 83,230 73,161
Attributable to minority interests: 8,163 8,861
Consolidated total income 91,393 82,022
Basic earnings per share (eur) 15. 2.33 2.04
Diluted earnings per share (eur) 15. 2.32 2.04
1) Reconciliation to internal management indicator “adjusted operating income” amounting to eur 158,747 thousand (2007: eur 157,621 thousand) is shown
in the Management Report.
Consolidated income statement of the GfK Group in accordance with ifrs in eur’000
for the period January 1 to December 31, 2008
Note 31.12.2007 31.12.2008
AssetsGoodwill 16. 745,692 736,466
Other intangible assets 16. 192,583 194,036
Tangible assets 17. 82,173 93,496
Investments in associates 18. 9,160 15,955
Other fi nancial assets 18. 8,542 6,614
Deferred tax assets 14. 44,255 30,048
Other non-current assets and deferred items 19. 5,878 8,413
Total non-current assets 1,088,283 1,085,028
Trade receivables 20. 277,462 270,700
Short-term income tax assets 14. 16,225 17,069
Securities and fi xed-term deposits 21. 830 928
Cash and cash equivalents 22. 37,746 36,670
Other current assets and deferred items 23. 40,677 36,234
Assets held for sale 23., 33. 9,530 0
Total current assets 382,470 361,601
Total assets 1,470,753 1,446,629
Equity and liabilitiesSubscribed capital 150,081 150,297
Capital reserve 195,750 197,278
Retained earnings 190,584 250,736
Income and expense recognized directly in equity – 47,039 – 121,342
Equity attributable to equity holders of the parent 489,376 476,969
Minority interests 20,175 23,327
Total equity 25. 509,551 500,296
Long-term provisions 26. 53,637 56,564
Long-term interest-bearing fi nancial liabilities 27. 317,884 313,200
Deferred tax liabilities 14. 72,380 73,432
Other long-term liabilities and deferred items 28. 14,275 5,296
Non-current liabilities 458,176 448,492
Short-term provisions 29. 7,723 9,259
Short-term income tax liabilities 14. 25,862 28,448
Short-term interest-bearing fi nancial liabilities 27. 158,803 164,438
Trade payables 3. 70,987 62,969
Liabilities on orders in progress 3. 114,462 111,211
Other short-term liabilities and deferred items 30. 124,014 121,516
Liabilities held for sale 30., 33. 1,175 0
Current liabilities 503,026 497,841
Total liabilities 961,202 946,333
Total equity and liabilities 1,470,753 1,446,629
GfK_101
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Consolidated balance sheet of the GfK Group in accordance with ifrs in eur’000
as of December 31, 2008
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Note 2007 2008
Consolidated total income 91,393 82,022
Write-downs/write-ups of intangible assets 16. 39,425 37,716
Write-downs/write-ups of tangible assets 17. 20,254 21,477
Write-downs/write-ups of other fi nancial assets 0 298
Total write-downs/write-ups 59,679 59,491
Increase/decrease in inventories and trade receivables – 12,801 – 1,171
Increase/decrease in trade payables and liabilities
on orders in progress 20,058 – 8,902
Change in other assets not attributable to investing or fi nancing activity – 3,230 – 6,056
Change in other liabilities not attributable to investing or fi nancing activity 8,812 4,774
Total changes in working capital 3. 12,839 – 11,355
Profi t/loss from disposal of non-current assets – 277 – 169
Non-cash income from associates 3. – 646 – 1,323
Increase/decrease in long-term provisions 3,845 511
Other non-cash income/expenses – 13,348 733
Net interest income 12., 13. 22,167 20,956
Change in deferred taxes 14. – 6,410 2,298
Current income tax expense 14. 32,075 28,627
Taxes paid – 33,188 – 35,955
a) Cash fl ow from operating activity 32. 168,129 145,836
Cash outfl ows for investments in intangible assets – 24,406 – 20,770
Cash outfl ows for investments in tangible assets – 24,843 – 29,713
Cash outfl ows for acquisition of consolidated companies and other business units, net of cash acquired – 22,836 – 48,980
Cash outfl ows for other fi nancial assets – 1,615 – 2,021
Cash infl ows from disposal of intangible assets 120 115
Cash infl ows from disposal of tangible assets 1,888 429
Cash infl ows from disposals of other fi nancial assets 1,488 582
Interest received 5,620 10,332
b) Cash fl ow from investing activity 32. – 64,584 – 90,026
Cash infl ows from equity contributions 25. 8,622 1,410
Cash outfl ows to equity holders of parent 25. – 12,781 – 16,138
Cash outfl ows to minority interests – 6,458 – 2,921
Cash infl ows from loans raised 51,820 108,569
Cash outfl ows for repayment of loans – 125,978 – 114,090
Interest paid – 28,126 – 33,579
c) Cash fl ow from fi nancing activity 32. – 112,901 – 56,749
Changes in cash and cash equivalents – 9,356 – 939
(total of a), b) and c))
Changes in cash and cash equivalents owing to exchange gains/losses and valuation – 760 – 137
Cash and cash equivalents at the beginning of the period 22. 47,862 37,746
Cash and cash equivalents at the end of the period 22. 37,746 36,670
Consolidated cash fl ow statement of the GfK Group in accordance with ifrs in eur’000
for the period January 1 to December 31, 2008
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Note 2007 2008
Currency translation differences – 49,897 – 61,013
Changes in fair value of equity securities available-for-sale – 40 14
Changes in fair value of cash fl ow hedges (effective portion) 36. – 1,436 – 5,108
Valuation of net investment hedges for foreign subsidiaries 36. 10,042 – 3,233
Actuarial gains/losses on defi ned benefi t plans 26. 3,704 – 4,856
Total income and expense recognized directly in equity – 37,627 – 74,196
Consolidated total income 91,393 82,022
Total recognized income and expense 53,766 7,826
Attributable to:
Equity holders of the parent 45,894 – 1,142
Minority interests 7,872 8,968
Total recognized income and expense 53,766 7,826
Consolidated statement of recognized income and expense for the GfK Group in eur’000
for the period January 1 to December 31, 2008
104_GfK
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1. General information
GfK se is a listed company, a Societas Europaea with its registered
offi ce on Nordwestring 101, Nuremberg, Germany. With entry
under hr b 25014 in the commercial register of the district court
of Nuremberg, GfK se was established on February 2, 2009 as
a result of a transformation changing the legal form of GfK Aktien-
gesellschaft. GfK se and its subsidiaries (GfK Group) are among
the world’s leading market research companies. The GfK Group
provides information services for its clients in the consumer goods,
pharmaceuticals, retail and services industries and media, which
they use in marketing decision-making.
The consolidated fi nancial statements of GfK se include the company
itself and all consolidated subsidiaries. They have been prepared
in compliance with the International Financial Reporting Standards
(ifrs), as they must be applied within the European Union.
All International Financial Reporting Standards (ifrs) binding for
fi nancial year 2008 and the announcements of the International
Financial Reporting Interpretations Committee (ifric) have been
applied where they have been adopted by the European Union.
Additionally, the accounting principles set out in § 315a sub-section 1
of the German Commercial Code (hgb) have been considered when
preparing the consolidated fi nancial statements.
The consolidated fi nancial statements have been prepared in euros
and rounded up to the nearest thousand euros. All fi gures are
specifi ed in thousand euros, unless otherwise indicated.
The annual fi nancial statements of the parent company, GfK se,
have been prepared in accordance with hgb and published in the
online Federal Gazette (Bundesanzeiger) under hr b 25014.
Section 41 of these notes describes standards, interpretations and
amendments to ifrs that have been applied for the fi rst time or that
have been published but not yet applied.
2. Consolidation principles
The annual fi nancial statements of GfK se and all material subsidiaries
whose fi nancial and operating policies are controlled directly or
indirectly are included in the consolidated fi nancial statements of
GfK se. The fi nancial statements of all companies included in the
consolidated fi nancial statements have been prepared according to
uniform accounting principles.
Companies in which the GfK Group has a participation of no more
than 50%, but over which signifi cant infl uence can be exercised, are
generally accounted for at equity as associates. All other companies
in the GfK Group are reported at acquisition cost.
A list of shareholdings of GfK se is attached to these notes.
Capital consolidation is carried out in accordance with ifrs 3,
“Business Combinations”, on the basis of purchase accounting,
whereby the acquisition costs of the participation are charged
against the parent company’s pro rata share in the revalued equity
of the subsidiary at the acquisition date. Intangible assets acquired
in business combinations and identifi ed as part of purchase price
allocation are entered on the balance sheet at fair value.
Any difference arising on the assets side after this crediting and
purchase price allocation is reported under non-current assets as
goodwill.
All transactions and balances between the companies of the
GfK Group which are included in the consolidated fi nancial
statements are eliminated when preparing the consolidated
fi nancial statements. Differences arising from debt consolidation
are recorded in the income statement. Intercompany results
from asset movements are eliminated with impact on the income
statement if they are signifi cant.
Associates and joint ventures are included at equity (one-line
consolidation). They are stated for the fi rst time at the acquisition
date. First-time valuation is in line with full consolidation. Any
difference on the assets side arising from offsetting the carrying
amount of the participation against the pro rata equity capital at
initial valuation is included in the equity book value.
The consolidation on transition from equity valuation to full
consolidation takes place with no impact on the income statement
but is carried out separately for every part-acquisition. The
acquisition costs included in capital consolidation comprise the
equity net book value and the acquisition costs for the majority
acquisition.
Profi ts or losses from mergers arising from the merger of two
consolidated companies in the GfK Group are eliminated.
Mergers, therefore, have no impact on the income statement of
the GfK Group. Company mergers involving external minority
shareholders do not give rise to any change in the total minority
interests or the consolidated total income.
If further shares are acquired in already fully consolidated
companies, the purchase price of the additional acquisition is
credited with the proportionate additionally acquired equity
with no impact on the income statement. Any difference on the
assets side arising from the entry is shown as goodwill.
Shares in the equity of subsidiaries attributable to external
minority interests are shown separately under equity. Shares
in the subsidiaries’ results attributable to external minority
interests are shown as a separate item in the income statement.
3. Accounting policies
Currency translation
Transactions in foreign currencies are translated into the functional
currency of the reporting company at the exchange rate on the
date on which they were carried out. As of the balance sheet date,
monetary items are translated at the exchange rate on that date
and non-monetary items are valued at the historical rate on the
transaction date. Differences resulting from these conversions are,
in principle, reported with impact on the income statement.
The balance sheets of foreign subsidiaries not prepared in euros
as well as hidden reserves disclosed as part of purchase price
allocation and goodwill from acquisitions are translated into euros
in accordance with the functional currency concept, based on the
mean exchange rates on the reporting date. The annual average
Notes to the consolidated financial statements for 2008
GfK_105
euro exchange rate, calculated as the mean of all month-end
exchange rates, is applied to the income statements of these
subsidiaries.
Differences arising from the translation of asset and liability items
at the exchange rate on the reporting date compared with the
translation on the prior reporting date, and differences arising from
translation of the annual result in the balance sheet (reporting date
rate) and the consolidated income statement (average rate) are
reported in equity without impact on the income statement.
Exchange rate differences arising from capital consolidation are
reported in income and expense recognized directly in equity.
The exchange rates against the euro of the key currencies for the
GfK Group are indicated in the table below.
Income statement
The income statement is prepared in accordance with the cost of
sales accounting method. Expenses are shown by function.
Sales
The method of recognizing sales is essentially determined according
to ias 18 and depends on the nature of the underlying transaction:
panel business involves surveying individuals, households
and companies and is characterized by the fact that the same
circumstances are analyzed at the same, regular intervals on the
basis of the same sample and always using the same methods.
For business involving panels, the GfK Group recognizes sales
pro rata temporis according to the progress of the project. Thus,
the sales for a project are distributed evenly over its duration.
Each month during the term of a contract, the same sales are
recognized in terms of amount.
ad hoc research business is systematic, empirical research used
as the basis of marketing decisions in all areas of the marketing
mix. This includes tests and surveys on product and pricing policy,
brand positioning and brand management relating to traditional
and modern forms of communication with consumers and users. It
is employed with the goal of optimizing distribution and enhancing
customer loyalty. Ad hoc research business is valued using the
per centage of completion method. Progress on the project is
determined as the ratio of the actual costs incurred to the overall
anticipated costs of the project. The estimate of total cost is
continuously checked during the life of the project. Changes in
the estimate of total cost fl ow into the calculation of recognizable
sales at the time at which they can be anticipated.
The costs to be included in this calculation comprise all direct
personnel expenses and other cost of sales as well as pro rata
indirect costs. Provisions are set up for expected losses on orders
in progress when they can be anticipated.
syndicated business analyzes markets and market players
without this being specifi cally commissioned by a client to whose
requirements the survey would be tailored. The completed survey
is marketed without customer-specifi c adjustments. Syndicated
surveys may be conducted once or on a recurring basis, without
fulfi lling the distinct and highly specifi c features of a panel. Various
market participants may be questioned in repeated surveys, or
the studies may be published at different intervals. In terms of
determining sales, syndicated business is treated like panel business
if it is comparable to panel business in nature because it involves
repeated surveys where the cost behavior pattern is relatively
evenly distributed over the term.
For other syndicated business, the method of recognizing sales
depends on the empirical estimate of the profi tability of the
respective survey:
If a profi t from the survey is probable, it is valued the same as an
ad hoc research contract.
If it is not yet suffi ciently certain that enough purchasers will be
found for a survey, sales are recognized corresponding to the
accumulated costs. If the value of the actual incoming orders is
below that of the costs incurred, recognizable sales are limited
to the value of incoming orders. As soon as it is certain that the
value of orders exceeds the costs, sales are recognized according
to the method used for ad hoc research contracts.
In all other business transactions, sales are only recognized
once the work has been completed and invoiced.
Cost of sales, selling and general administrative expenses
In addition to personnel expenses, services rendered and
scheduled depreciation/amortization of tangible and intangible
assets, the cost of sales, selling and general administrative
expenses comprise all other costs directly linked to the operational
activity of the GfK Group.
They also include personnel expenses from the stock option
program and the 5 Star long term incentive plan, as well as
scheduled write-downs on additional assets identifi ed on
acquisitions and impairments (unscheduled decreases in value)
of non-current assets.
Research and development costs
Research and development costs are basically recorded as expenses
at the time they are incurred and shown under cost of sales.
Development costs incurred within the GfK Group, particularly for
setting up new panels, are shown under other intangible assets if
the recognition criteria are met.
Internally generated intangible assets are only capitalized if they
have resulted from the development phase and not the research
phase and if further precisely defi ned preconditions have been
cumulatively fulfi lled. These include the technical viability of
project completion, the scheduled completion and use and the
usefulness to the company or saleability of the intangible asset.
Future economic benefi ts and the availability of the necessary
technical, fi nancial and other resources to complete the project
must also be reported. Reliable calculation of the costs associated
with the intangible asset during its development phase is also a
precondition for capitalization of internally generated intangible
assets.
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Main currencies
Euro mean rate on
balance sheet date
Euro average rate
during reporting period
Country
Unit of
currency 31.12.2007 31.12.2008 2007 2008
usa 1 USD 0.68 0.72 0.73 0.68
uk 1 GBP 1.36 1.03 1.45 1.25
Switzerland 100 CHF 60.41 67.59 60.77 63.37
Singapore 1 SGD 0.48 0.50 0.48 0.48
Japan 100 JPY 0.61 0.79 0.62 0.66
106_GfK
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Other operating income and expenses
Other operating income and expenses comprise income and
expenses relating to operations, of which the allocation to sales or
functional costs would not be appropriate. They include mainly
exchange rate gains and losses, profi t and loss from the disposal of
fi xed assets, impairments not attributable to functional costs and
recoverable value and expenses for legal disputes.
Operating income
Operating income in the GfK Group comprises gross income
from sales, less selling and general administrative expenses, and
net other income comprising other operating income and other
operating expenses.
Adjusted operating income
The indicator adjusted operating income is used internally to manage
the GfK Group’s business. It is derived from operating income. To
calculate adjusted operating income, the following expenses and
income items are excluded: expenses and income in connection with
reorganisation and business combinations, write-ups and write-downs
of additional assets identifi ed on acquisitions, personnel expenses
for share-based payments and long-term incentives and remaining
other operating income and expenses.
Income from associates
Income from associates comprises income and expenses resulting
from the valuation of pro rata shares in associates at equity.
Other income from participations
Other income from participations essentially comprises dividends
from non-consolidated affi liated companies and other participations
of the GfK Group, profi t and loss from the disposal of such com-
panies and income and expenses from profi t transfers with these
companies.
ebit
The performance indicator ebit (earnings before interest and taxes)
has been included as a sub-total in the income statement. ebit is
determined by adding income from associates and other income
from participations to operating income.
Other fi nancial income and expenses
Other fi nancial income and expenses comprise interest income and
expenses, income and expenses from the valuation of derivative
fi nancial instruments used to hedge against interest rate risks, trans-
action costs for loans from banks, expenses relating to write-offs of
lendings and other fi nancial income. Interest expenses also include
additional interest on previously discounted debt. Such additional
interest relates, for example, to future purchase price components
from acquisitions, which are stated on the liabilities side at fair
value. Profi t distributed to minority interests, which hold rights to
make delivery (put options or bonds), is also reported under interest
expenses.
Interest is recorded as income or expense at the time it is incurred.
Interest is deferred on the basis of the effective interest rate method.
At the GfK Group, interest expenses are not capitalized.
Income from ongoing business activity
The “income from ongoing activity” indicator has been included in
the income statement as a sub-total. Income from ongoing business
activity corresponds to consolidated total income before tax on
income.
Tax on income
Tax on income from ongoing business activity comprises current
and deferred taxes.
Current taxes are calculated by the companies within the GfK Group
according to valid tax law in their country of registration.
Deferred taxes are calculated according to the liability method
whereby deferred tax assets and liabilities are entered on the
balance sheet for temporary differences between the carrying
amounts attributed in the consolidated fi nancial statements and the
tax basis of the assets and liabilities. Any effects on deferred taxes
from changes in tax law are incorporated in the income statement
from the date on which the tax law is passed.
Deferred tax assets are only entered on the balance sheet if it is
probable that they can be recognized at a future date. This is
generally the case where the relevant company is suffi ciently
likely to achieve enough taxable profi t to use the tax benefi t.
If deferred tax assets already recorded are not expected to be
recognized within the foreseeable future as a result of new
information, carrying values are adjusted. Applying its discretionary
powers, the management assumes a maximum period of time for
the realization of deferred tax assets of seven years for subsidiaries
which are not making a loss, otherwise the period of time assumed
is shorter.
Tax on items recognized directly in equity is not included in the
income statement. In the year under review, no deferred taxes
arose in relation to currency differences from intra-Group loans in
foreign currency, which represent a net investment in the business
operations of subsidiaries and are recognized at equity. This is due
to the fact that there are no plans in place to realize temporary
differences in the foreseeable future.
Impairments
If an asset is impaired and is therefore depreciated, the cost of
impairment is included in the income statement.
The value of assets with an indefi nite life and intangible assets
under development is checked once a year by means of an
impairment test. An impairment test is also carried out if triggering
events occur, which may signifi cantly affect the value of the assets
concerned.
Impairments on intangible assets are applied if the recoverable
amount is below the amortized cost of acquisition or production.
The recoverable amount is defi ned as the higher of the two sums
of the fair value, less costs to sell or value in use of an asset
whose expected future cash fl ows at the GfK Group are based on a
minimum 3-year period and discounted on the basis of a discount
rate to be determined individually at market conditions. The growth
rate of the cash fl ows beyond the period of detailed planning is
usually taken into account by reducing the discount rate by one to
two percentage points.
Expenses arising from the decline in the value of brands is reported
in the income statement under other operating expenses while
impairments on surveys, panels, client bases, long-term contracts
and software are shown under functional costs.
Accounting policies
GfK_107
Earnings per share
The earnings per share (eps) reported in the consolidated income
statement show the proportion of consolidated total income
attributable to equity holders of the parent, which relates to the
weighted average number of shares in the reporting period.
To calculate diluted earnings per share, the average number of
shares is adjusted by the options as yet not exercised which are
in the money as of the reporting date, as well as pro rata by any
options exercised during the fi nancial year under review.
Stock options for employees and executives of the
GfK Group
Up until 2005, selected executives of the GfK Group were entitled
to convert part of their variable remuneration into stock options in
GfK se. The option term is fi ve years; options cannot be exercised
until two years after issue.
The GfK Group applies ifrs 2 for stock options issued after
November 7, 2002. This remuneration, which is to be settled with
equity instruments, is valued at the fair value on the grant date.
The obligation is entered as expense in the income statement
whilst the counter entry is made under capital reserve.
5 Star Long Term Incentive Plan for employees and executives
of the GfK Group
Since fi nancial year 2006, selected executives of the GfK Group
have been entitled to convert part of their variable remuneration
into virtual GfK shares. Virtual shares entitle the holders to cash
payments at the end of the three-year performance period. GfK
grants a corresponding volume of additional performance shares.
The payment for the performance shares, which is also due at the
end of the performance period, depends on the achievement of two
performance targets, the total shareholder return (tsr) on GfK shares
compared with the tsr on shares of companies listed in the DJ Euro
Stoxx Media Index, and on the increase in operating profi t at the
GfK Group, which corresponds to adjusted operating income, over
a three-year period.
The amount payable at the end of the performance period is
accumulated as provisions. The amount of the provision is based
on an actuarial opinion.
Intangible assets
Goodwill
Goodwill arising from the capital consolidation of subsidiaries and
that transferred from subsidiaries’ fi nancial statements into the
consolidated fi nancial statements is reported by the GfK Group under
intangible assets.
In business combinations, goodwill represents the remaining
difference in assets after the costs of acquisition of the participation
are offset against the proportion of acquired revalued equity.
Goodwill from the acquisition of companies which do not report in
euros is recorded in the reporting currency of the acquired subsidiary.
The exchange rate at the time of fi rst consolidation is used to calculate
the goodwill at initial recognition. Subsequent measurements are
based on the mean rate as of the reporting date.
The GfK Group checks the recoverability of its cash generating units,
including goodwill, as part of an impairment test once a year or when
triggering events or changed circumstances arise. For this purpose,
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goodwill is allocated to four cash generating units corresponding
to the sectors, matching the internal Group control. The cash
generating units are therefore the sectors Custom Research, Retail
and Technology, Media and Other.
Recoverability of goodwill is indicated when the recoverable amount is
not less than the carrying amount of the cash generating unit.
The recoverable amount corresponds to the fair value less costs to sell
or the value in use if higher. The GfK Group calculates the fair value
less costs to sell as part of the impairment test, using the discounted
cash fl ow procedure based on anticipated future cash fl ow from the
relevant current fi ve-year plan. The growth in cash fl ow after the fi ve-
year period (perpetuity) is taken into account by reducing the discount
interest rate by 1.8 percentage points (2007: 2 percentage points).
Similar to the discount interest rate, this deduction from the growth
rate is derived from available external capital market data.
The discount rate is determined by carrying out a weighted average
capital costs calculation, taking into account the standard industry
capital structure and standard industry fi nancing costs. The resulting
discount rate is 7.91% to 8.11% (2007: between 8.11% and 8.30%),
depending on the cash generating unit. The discount rate takes into
account the respective equity and country risks as well as tax
advantages from the external fi nancing of the cash generating unit
concerned.
Other intangible assets
Where an intangible asset has been subject to impairment, there is a
maximum write-up to the amount recoverable if a higher amount is
recoverable at a later date. The carrying value after the write-up may
not exceed the carrying value which would have resulted had the
impairment not taken place in the past. The write-up is reported in the
income statement.
Internally generated intangible assets
At the GfK Group, internally generated intangible assets mainly
comprise software and panel set-up costs.
As a rule, software developed by companies in the GfK Group is
used internally for analyzing and processing marketing research
data. In some cases, it is destined for external users and was written
specifi cally to meet user requirements. Internal costs of software
development are capitalized under non-current assets if the criteria
according to ias 38 are met. Amortization commences on
completion of the software.
Panel set-up costs generally involve capitalized development costs
for setting up new panels or expanding existing panels. Capitalized
panel set-up costs include:
Spending on materials and services used in constructing panels
Wages and salaries and other employment expenses for staff
directly involved in setting up panels
Overheads necessarily incurred in panel set-up and which can
reasonably and regularly be allocated to this, based on cost
accounting.
Cost arising from the preparation and application phase and
maintenance costs for current panels cannot be capitalized. They
are included in expenses.
108_GfK
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Panel set-up costs are only subject to scheduled amortization
if they are directly incurred in conjunction with a specifi c,
fi xed-term current client order. As a rule, the amortization period
in such cases is based on the duration of the contract or the
useful life. In all other cases, the useful life of panels is indefi nite
and they are not subject to scheduled amortization. The value
of panels is checked at least once a year as part of an impairment
test.
Expenses for research activities are reported as expenses in the
period under review. Development costs, which did not result in
a capitalizable intangible asset, are also reported as expenses.
Miscellaneous intangible assets
Miscellaneous intangible assets include, in particular, software
acquired, surveys, customer relations and brands.
Miscellaneous intangible assets are entered in the balance sheet
at amortized cost and are subject to scheduled, straight line
amortization. This does not apply to customer relations and brands.
As a rule, the useful life of software and miscellaneous intangible
assets is three to ten years.
Customer relations are generally written down over a period of
ten to 30 years at an individually determined customer churn rate
of between 7.5% and 20.6%.
Brands are not subject to scheduled amortization and have an
indefi nite useful life. They are subject to an impairment test at least
once a year.
Interest on borrowing is not capitalized. Intangible assets with an
indefi nite useful life are subject to an impairment test at least once
a year.
Tangible assets
Tangible assets are valued at cost less cumulative depreciation.
Interest on borrowing is not capitalized. Cumulative depreciation
generally includes scheduled straight line depreciation up to the
balance sheet date and any impairments recorded. The depreciation
period corresponds to the useful life. Assets in the course of set-up
are not subject to scheduled depreciation.
The GfK Group normally applies the useful life periods shown in the
following table.
The item fi xtures and fi ttings also includes unfi nished technological
equipment.
Lease arrangements are entered on the balance sheet according
to ias 17, with either a fi nance or an operating lease depending on
the type of contract.
Finance leases are characterized by the fact that risks and rewards
of leased assets are generally transferred to the lessee. With a
fi nance lease, the leased item is capitalized by the lessee and a
corresponding leasing liability is recorded. The leasing liability
is equivalent to either the present value of the minimum lease
payments or the fair value of the leased asset at the start of the
lease arrangement if lower.
The capitalized leased asset is subject to scheduled straight line
depreciation. The depreciation period is the lease term or the
economic useful life whichever is shorter. Subject to fulfi llment of
the preconditions, an impairment is recorded.
The lease liability is amortized over the contractual period through
lease payments. Discounts are written up by applying a constant
interest rate to the remaining debt and recorded in interest expenses
within other fi nancial expenses.
With operating leases, the leased assets are entered on the balance
sheet of the lessor. The lessee records the regular payments as
rental expenses.
Financial instruments
Financial instruments are contracts which result in a fi nancial
asset with one company and a fi nancial liability or an equity
instrument with another. In the GfK Group, fi nancial instruments
are entered on the balance sheet as bought or sold on the trade
date, i.e. on the date on which the obligation to buy or sell a
fi nancial instrument was entered into.
In the case of fi xed-income fi nancial instruments, interest rate
changes may result in a change in fair value and in the case of
variable rate fi nancial instruments, in fl uctuations in interest
payments. In principle, short-term receivables and liabilities are
not subject to interest rate risks.
Financial assets and fi nancial liabilities are recorded if the
GfK Group is a contractual party in relation to a fi nancial
instrument.
Financial assets are taken off the books if the contractual rights
to payments arising from the fi nancial assets expire or if the
fi nancial assets are transferred with all material risks and
rewards. Financial liabilities are taken off the books if the
contractual obligations have been settled, extinguished or have
expired.
Borrowing costs are recorded as expenses in the period in which
they were incurred. With regard to the accounting policies
applied to fi nancial investments, management has stipulated at
its discretion as the competent body that fi nancial investments are
never classifi ed as held to maturity, but instead always available-
for-sale.
Primary fi nancial instruments
Primary fi nancial assets are initially valued at fair value, taking
into account directly attributable transaction costs. Primary
fi nancial liabilities are initially valued at fair value, which usually
corresponds to the amount recovered. Subsequent valuation is at
amortized cost on the basis of the effective interest rate method.
Accounting policies
Asset
Useful life
in years
Administration buildings 50
it equipment 3 to 5
Cars and other vehicles 5
Offi ce equipment 3 to 5
Offi ce furniture 10 to 13
GfK_109
Loans granted, receivables and liabilities are valued at fair value
when they are added. This usually corresponds to the nominal
value of the liability or loan amount granted. Non-interest bearing
and low-interest long-term loans and receivables are recognized
at the present value. Subsequent valuation with impact on income
is at amortized cost and based on the effective interest rate method.
Liabilities are valued at amortized cost. This applies only where
receivables and liabilities do not relate to hedging transactions.
Shares in companies, which do not qualify as subsidiaries or
associated companies, are also shown as primary fi nancial
instruments at cost.
The GfK Group only reports trading securities under securities;
all other securities are reported under other fi nancial assets as
available-for-sale securities. The GfK Group does not hold any
securities as “held to maturity”.
Derivative fi nancial instruments, hedge accounting
The GfK Group concludes transactions throughout the world in
various currencies, which may involve currency risks. In addition,
short-term investments, investment in securities and borrowing
from banks take place in various currencies and can result in
risks due to changes in exchange rates, interest rates and market
prices.
More detailed information on currency and interest rate risks as
well as the goals, strategies and processes of the risk management
is provided in the risk report, which is part of the management
report.
The GfK Group uses currency forward transactions, combined
interest rate and currency swaps as well as interest rate swaps
to hedge against currency and interest rate risks. No derivative
fi nancial instruments are held for trading purposes.
Derivative fi nancial instruments are reported at cost as asset or
liability at the time of the transaction and subsequently valued at
fair value. The valuation of derivative fi nancial instruments is carried
out using standard market procedures based on instrument-specifi c
market parameters. Market prices are calculated on the basis of
present value and option price models. Where possible, the relevant
market prices and interest rates on the balance sheet date are used
as input parameters for these models.
Changes in the value of derivative fi nancial instruments used in
hedge accounting are recorded differently, depending on whether
the instrument is a fair value hedge, cash fl ow hedge or net
investment hedge.
If the derivative fi nancial instrument is used to hedge against the
risk of changes in the value of assets or liabilities, it represents a
fair value hedge. In this case, changes in the fair value of both the
hedged underlying item and the derivative fi nancial instrument are
taken to the income statement.
With changes in the fair value of cash fl ow hedges used to hedge
underlying transactions against risks from fl uctuations in future
payment fl ows, the effective portions of the fair value fl uctuations are
initially reported under income and expense recognized directly in
equity. If the effectiveness of a hedge is not in the range of 80% to
125%, the hedge is liquidated. The ineffective portions of hedges
are charged directly to the income statement.
Once the hedged transaction affects the income statement, the profi ts
and losses accumulated in the income and expense recognized
directly in equity must be released with impact on the income
statement.
Net investment hedges can be used to secure net investment in
foreign subsidiaries. This may, for example, involve a foreign
currency loan in the local currency of the acquired participation.
Any exchange gains or losses resulting from the cut-off date
valuation of the foreign currency loan relating to the effective
portion are recorded in income and expense recognized directly
in equity as is the case for cash fl ow hedges.
If the hedge is considered highly effective, the exchange gains and
losses from the hedging instrument are posted in the income and
expense recognized directly in equity. The release with impact on
the income statement of this item does not occur at the end of term
of the hedging instrument, but only upon sale or liquidation of the
hedged item.
The prerequisite for using any type of hedge accounting is that the
link between the hedged item and the hedging instrument must be
accurately documented. It must also be recorded how the hedging
instrument used effectively compensates the risk relating to the
hedged item highly effectively and which methods are used to
substantiate the effectiveness.
Generally, the part of the changes in value not covered by the
hedged item is taken to the income statement.
If the prerequisites for reporting an item as a hedging instrument
(hedge accounting) are not met as per the regulations in ias 39,
such instruments are recorded in the item “held for trading”. The
changes in value are immediately charged to the income state-
ment.
Fair values of forward currency transactions, combined interest rate
and currency swaps and interest rate swaps are determined on the
basis of market conditions as of the reporting date.
Receivables and other assets
Trade receivables include both billed and unbilled receivables.
Non-invoiced receivables can arise in the context of the valuation
of sales.
Receivables are stated at nominal value or, in the case of identifi able
specifi c risks, at the lower attributable value. These valuation
allowances take suffi cient account of the default risk. Group-wide
guidelines regulate hedging against the risk of non-payment.
Accordingly, a valuation allowance of 50% must be applied to
receivables that are six to nine months overdue. If receivables are
overdue by nine to twelve months, the valuation allowance amounts
to 75%. If receivables are more than twelve months overdue, or
the client company is in the process of being wound up, a valuation
allowance of 100% must be applied. Exceptions are possible,
subject to authorization by the relevant management.
A credit check of new clients should be obtained from a recognized
credit agency if the order volume exceeds 0.1% of the company’s
external sales. If no satisfactory data about the client is available,
two thirds of the order value is payable prior to delivery of the
relevant data. The credit rating of existing clients must also be
monitored on the basis of specifi ed rules. In addition, the credit
risk is minimized through issuing invoices for prepayments and
on-account payments.
Non-interest bearing or low-interest receivables with a time to
maturity of more than one year are discounted.
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Inventories
Inventories are valued at the lower of cost and net realizable value.
Due to their subordinated importance to the consolidated fi nancial
statements of the GfK Group, inventories are reported under other
current assets and deferred items.
Cash and cash equivalents
Cash and cash equivalents contain cash on hand and in banks as
well as liquid investments with a remaining term of less than three
months.
Equity
Capital reserve
The company’s equity which is not part of the subscribed capital
attributable to capital contributions of shareholders and which
does not result from generated income, is reported under the
capital reserve. Services that are linked to deposits for the
purposes of acquiring shares or granting privileges, as well as
other services aimed at strengthening equity, are also reported
under the capital reserve.
Retained earnings
Amounts created from income in the fi nancial year under review or
prior fi nancial years are reported as retained earnings. This includes
a statutory reserve to be created from income.
Income and expenses recognized directly in equity
Income and expenses recognized directly in equity include changes
in Group equity which have no impact on the income statement
and which do not involve deposits by shareholders or distributions
to shareholders.
These changes result from exchange rate differences, unrecognized
profi ts and losses from available-for-sale securities, from the
valuation of hedging transactions (cash fl ow and net investment
hedges) and actuarial gains and losses from provisions for
pensions.
Provisions
In principle, provisions are set up when an obligation to a third
party will probably result in an outfl ow of funds. In addition,
the level of the obligation needs to be estimated reliably. Long-
term provisions are discounted if they are interest-free or low-
interest.
Provisions for pensions are valued in accordance with the projected
unit credit method, in which future compensation increases are
taken into account. The amount shown on the balance sheet
represents the present value of the obligation, adjusted by the
unrecognized past-service costs after offsetting the fair value
of the plan assets. The discount rate is based on the interest rate
for prior-ranking fi xed-income corporate bonds.
Payments for defi ned contribution plans are stated as expenses
when they occur.
Actuarial gains and losses on defi ned benefi t plans are recorded in
income and expense recognized directly in equity in exercise of the
option in ias 19.
Financial liabilities
Financial liabilities include interest-bearing liabilities relating to
fi nancing, particularly loans from banks and other lenders,
liabilities under fi nance leases and other interest-bearing liabilities.
They are stated at the present value if they are interest-free or
low-interest. Further valuation is carried out at amortized cost
using the effective interest rate method.
The GfK Group reports rights to make delivery (put options or
bonds) held by minority shareholders as purchase price elements,
which depend on future events. The minority interests affected
by this are no longer reported as minority interests but are stated
under non-current or current liabilities. These fi nancial obligations
are valued at fair value.
Earnings distributed to minority interests and the interest added to
payment obligations are reported as interest expenses.
Trade payables and other liabilities
Trade payables and other liabilities are stated at repayment value.
Obligations under invoices outstanding are reported under trade
payables.
Interest-free or low-interest non-current liabilities are discounted
and stated at present value.
Liabilities are reported for the fi rst time at the date when the
obligation arises.
Liabilities on orders in progress
Liabilities on orders in progress comprise payments on account
and accrued amounts from the recognition of sales. Within this
item, sales are accrued which have arisen from contractually
agreed invoices for prepayments or payments on account, but
cannot yet be recognized as sales according to the above described
sales recognition methods.
Consolidated cash fl ow statement
The cash fl ow statement shows the changes to the balance sheet
item “cash and cash equivalents” resulting from cash fl ows from
operating activity, investing activity and fi nancing activity.
The cash fl ow from operating activity is derived indirectly from
changes to balance sheet entries. These are adjusted for the effects
of currency translation and changes in the scope of consolidation.
As a consequence, only a limited reconciliation is possible between
the changes in the balance sheet items according to the consolida-
ted cash fl ow statement and the arithmetical changes in the
consolidated fi nancial statements, the schedule of movements in
non-current assets and other information in the notes to the
fi nancial statements.
The internally used indicator “changes in working capital”
has been included in the consolidated cash fl ow statement.
This indicator comprises changes in trade receivables and
payables, liabilities on orders in progress, other assets, other debt
capital, securities and fi xed-term deposits as well as short-term
provisions.
Estimates
To a certain extent, estimates and assumptions cannot be avoided
in the consolidated fi nancial statements. They may affect assets and
liabilities as well as contingencies on the balance sheet date and
the income and expenses for the fi nancial year. These estimates
were made by the management, taking into account all known facts
Accounting policies
GfK_111
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to the best of their knowledge. Nevertheless, the actual amounts
may deviate from such estimates.
The business combination resulting from the acquisition of Beijing
Sino Market Research Co., Ltd. and China Market Monitor Co.,
Ltd., both with registered offi ce in Beijing, China, as of October 1
and 31, 2007 respectively was reported on the basis of provisional
values in the consolidated fi nancial statements as of December 31,
2007. The required adjustments to these preliminary fi gures were
made in 2008 within the 12-month period required under ifrs 3.
The following changes resulted in respect of the consolidated
fi nancial statements as of December 31, 2008: non-current intangible
assets from purchase price allocation (panel and customer relations)
increased by eur 2,078 thousand. Current assets also rose by
eur 345 thousand. Deferred tax liabilities climbed to eur 606
thousand. These changes resulted in a decrease in goodwill of
eur 1,817 thousand.
In connection with reporting on the business combination resulting
from the acquisition of Shopping Brasil Tecnologia da Informação
Ltda, Porto Alegre, Brazil, a material adjustment to assets and
liabilities may become necessary as a result of updated estimates
within one year from the date of fi rst-time consolidation, that is
April 1, 2009. Such an adjustment would have no impact on the
income statement. Intangible assets would possibly be affected as
well as the related deferred tax liabilities. The maximum adjustment
required will correspond to less than half a percent of consolidated
total assets.
The most important estimates regarding the future performance of
the GfK Group and its economic environment are described in the
outlook section of the management report.
4. Scope of consolidation and major acquisitions
Fully consolidated companies
As of December 31, 2008, the scope of consolidation in accordance
with ifrs included 10 (2007: 15) German and 126 (2007: 130)
foreign subsidiaries in addition to the parent company.
The table below shows the changes in fully consolidated subsidiaries
between January 1, 2008 and December 31, 2008.
In January 2008, 100% of the shares were acquired in GfK Blue
Moon Research and Planning Pty. Limited and GfK Blue Moon
Quantitative Research Pty. Limited, both with registered offi ce in
St Leonards, Australia, which have been consolidated for the fi rst
time. The activities of both companies are based in the Custom
Research sector. As early as December 2007, a holding company
was established for these companies, GfK Custom Research
Australia Holding Pty. Limited, Sydney, Australia, which has also
been fully consolidated since January 2008.
In March 2008, 100% of the shares were acquired in Bilesim
Internasyonal Arastirma Organizasyon Danismanlik ve Ticaret a.s.,
Istanbul, Turkey, which maintains activities in the Custom Research
sector and was consolidated for the fi rst time as of March 1, 2008.
As of April 1, 2008, GfK acquired 51% of the shares in Shopping
Brasil Tecnologia da Informação Ltda, Porto Alegre, Brazil, which
was consolidated for the fi rst time. The company’s activities are
based in the Retail and Technology sector.
As of July 1, 2008, the shareholding in Chart Track Limited,
London, uk, was increased from 9% to 55%. The company, whose
activities relate to the Retail and Technology sector, has been fully
consolidated since this date.
As of August 1, 2008, 100% of the shares were acquired in
The Arbor Strategy Group, Inc, Ann Arbor, Michigan, usa, which
is part of the Custom Research sector. The company has been
consolidated for the fi rst time.
The total purchase price for the acquisitions mentioned here was
eur 27,249 thousand over the reporting period. This fi gure
comprises eur 19,615 thousand covered by liquid funds including
incidental acquisition costs. The remaining purchase price is
not yet due; this relates to obligations regarding future purchase
price adjustments and put options of minority interests amounting
to eur 7,634 thousand. These acquisitions produced goodwill of
eur 19,759 thousand relating to the Retail and Technology and
Custom Research sectors. Goodwill represents mainly the expertise
of the employees of these companies, which cannot be capitalized
separately as such.
Previously unreported intangible assets and liabilities and the
relevant deferred taxes totaling eur 6,814 thousand as of the
balance sheet date, which related primarily to client relationships,
were disclosed as part of the acquisition procedures outlined.
The assets and liabilities, which were adopted during the
acquisition of these consolidated companies, are shown in the
following table.
The cumulative income from these companies for the period
during which they belonged to the GfK Group totaled eur 1,253
thousand. In 2008, the companies made a contribution to the
GfK Group’s consolidated total sales amounting to eur 13,792
thousand.
As of January 1, 2008, GfK Trustmark ag, Zollikon, Switzerland,
was fully consolidated for the fi rst time. The company, which
belongs to the Custom Research sector, was not previously
included in the consolidated fi nancial statements due to its
subordinated role.
GfK latinoamerica holding, s.l., Valencia, Spain, with activities
in the Retail and Technology sector, and its subsidiaries,
GfK Marketing Service Chile Limitada, Santiago, Chile, and
GfK marketing services ltda., São Paulo, Brazil, both with
activities in the same sector, and all not previously included in
the consolidated fi nancial statements due to their subordinated
role, were fully consolidated for the fi rst time as of January 1, 2008.
GfK uk Entertainments Ltd., London, uk, has activities in the
same sector. The company was established in April 2008 and
consolidated for the fi rst time.
As of January 1, 2008, GfK Martin Hamblin Inc., Hartford,
Connecticut, usa, was deconsolidated. This company no longer
conducts operational activities and is of minor importance to the
consolidated fi nancial statements of the GfK Group. Furthermore,
Strategic Marketing Asia, Ltd., Bala Cynwyd, Pennsylvania, usa, was
deconsolidated as of January 1, 2008 and subsequently wound up.
Fully consolidated
subsidiaries
(Number) 01.01.2008 Additions Disposals 31.12.2008
Germany 15 0 – 5 10
Abroad 130 12 – 16 126
Total 145 12 – 21 136
Prior to the
merger
As of the
acqui sition date
Non-current assets 1,214 11,562
Current assets 2,656 2,656
Cash and cash equivalents 1,319 1,319
Liabilities and provisions 3,721 7,255
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GfK cee Finance GmbH was merged with GfK Aktiengesellschaft as of
January 1, 2008. Both companies are based in Nuremberg, Germany.
Following the merger on January 1, 2008, of the general partner of
GfK Marketing Services GmbH & Co. kg, GfK Marketing Services
Verwaltungs-GmbH, which is not consolidated, with the limited
partner, GfK Non-Food Tracking Holding GmbH, GfK Marketing
Services GmbH & Co. kg was absorbed by GfK Non-Food Tracking
Holding GmbH, which subsequently changed its name to GfK Retail
and Technology GmbH. All three companies have their registered
offi ces in Nuremberg, Germany.
As of January 1, 2008, GfK u.s. Equity GmbH, GfK us Custom
Research Holding GmbH and GfK u.s. Automotive Holding GmbH,
all with registered offi ces in Nuremberg, Germany, were merged
with GfK North America Holding GmbH, Nuremberg, Germany.
GfK Custom Research Inc., Minneapolis, Minnesota, usa, was
merged as of January 1, 2008 with GfK Custom Research (the
former GfK nop), llc, New York, New York, usa.
In 2008, four companies were merged with Institut de Sondages
Lavialle (isl) s.a., Issy les Moulineaux, France: as of January 1,
Financière isl Société Anonyme, Issy les Moulineaux, France, as
of April 1, Satisteme sa, Paris, France, as of July 1, Institut de
Recherche d’Informations statistiques (irdis) sarl, Montigny le
Bretonneux, France, and as of December 31, audimedia sarl,
Issy les Moulineaux, France.
The shareholdings in GfK Animal Healthcare Limited, West Byfl eet/
Surrey, uk, and m2a s.a., Saint Aubin, France, both with activities
in the Custom Research sector, were exchanged for a minority
interest in the DmrKynetec Group Limited, St Peter Port, Guernsey,
uk, as of July 1, 2008.
As of July 1, 2008, Modata ag, Hergiswil, Switzerland, Liechti ag,
Kriegstetten, Switzerland, and Telecontrol ag, Hergiswil, Switzer-
land, were merged with Eiphos Holding ag, Hergiswil, Switzerland,
which changed its name to GfK Telecontrol ag.
As of September 1, 2008, GfK consumer and business information
italy S.p.A., GfK Panel Services Italia S.p.A. and Risposta Srl were
merged with GfK Eurisko S.r.l. All four companies are based in Milan,
Italy.
Intomart GfK Belgium n.v., Brussels, Belgium was wound up as of
December 9, 2008.
Companies of minor importance
The GfK Group did not include 53 (2007: 52) companies in the
consolidated fi nancial statements during the reporting year,
because they were of minor signifi cance for the net assets, fi nancial
position and income of the Group.
External sales, total assets and annual income from these compa-
nies together totaled between 0.75% and 1.9% of the correspon-
ding fi gures in the consolidated fi nancial statements.
Associated companies
The consolidated fi nancial statements as of December 31, 2008
report on participations in two (2007: two) associated companies in
Germany and 17 (2007: 17) abroad.
As of July 1, 2008, a 26% stake was acquired in the DmrKynetec
Group Limited, St Peter Port, Guernsey, uk, in return for inclusion
of the subsidiaries GfK Animal Healthcare Limited, West Byfl eet/
Surrey, uk, and m2a s.a., Saint Aubin, France.
Brand Index vof, Hilversum, Netherlands was wound up as of
January 1, 2008.
Other participations
The number of other participations amounts to four (2007: fi ve).
In April 2008, a shareholding of 7.8% was acquired in Qosmos sa,
Amiens, France.
The 10% shareholding in Mars Immo sas, Suresnes, France was sold.
Following the acquisition of additional shares in Chart Track Limited,
London, uk, this company has been reclassifi ed and is now an affi liated
company.
5. Sales
Sales are broken down according to type as shown in the table
below.
The breakdown of sales according to sector and region is shown
under section 37 Segment reporting.
6. Cost of sales
The breakdown of cost of sales is shown in the table below.
7. Selling and general administrative expenses
The breakdown of selling and general administrative expenses is
shown in the table below.
8. Other operating income
Other operating income of eur 54,296 thousand (2007: eur 25,813
thousand) contains exchange gains of eur 36,145 thousand (2007:
eur 11,006 thousand). Like the exchange losses of eur 33,360
thousand (2007: eur 9,386 thousand) included in other operating
expenses, these exchange gains also relate mainly to foreign
currency transactions of Group companies in the uk, Germany
and Russia.
Notes to the consolidated income statement
2007 2008
Sales in respect of third parties, billed 1,134,079 1,194,790
Sales in respect of third parties, unbilled 21,857 20,584
Sales in respect of related parties and groups 1,220 2,428
Sales in respect of related Group companies 4,899 2,631
Sales 1,162,055 1,220,433
2007 2008
Personnel expenses 345,910 372,338
Depreciation and amortization 43,827 49,372
Other cost of sales 377,039 404,084
Cost of sales relating to Group companies 7,743 7,233
Cost of sales (before research and
development costs) 774,519 833,027
Research and development costs 6,874 7,623
Cost of sales (including research and
development costs) 781,393 840,650
2007 2008
Personnel expenses 118,111 120,459
Depreciation and amortization 12,823 7,415
Other selling and general administrative expenses 119,450 120,586
Selling and administrative expenses relating to
Group companies 1,650 457
Selling and general administrative expenses 252,034 248,917
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In connection with the originally planned merger with Taylor Nelson
Sofres plc, London, uk, which did not go ahead, agreements were
concluded that would result in compensation payments in the
event of the merger not being completed. This resulted in other
income amounting to eur 13,416 thousand.
In 2005, GfK se acquired nop World from its former British parent
company, ubm. Following the acquisition, the seller asserted
claims, which GfK did not consider justifi ed. At the beginning of
2008, a settlement was achieved out of court in this respect. As
a result of the reduction in the liability amount reported in this
connection as of December 31, 2007, other operating income of
eur 2,260 thousand (2007: eur 10,205 thousand) is stated.
The remaining other income mainly comprises reversals of im-
pairments and income from earlier reporting periods.
9. Other operating expenses
Other operating expenses include the items shown in the table
below.
Miscellaneous other operating expenses mainly consist of charges
passed on, expenses from deconsolidation, expenses relating to
recovery claims, maintenance expenses and other expenses due to
authorities and insurance companies. In fi nancial year 2008, these
also included expenses for the transformation changing the legal
form of GfK Aktiengesellschaft to a Societas Europaea, as well as
expenses in connection with a construction project which was not
subsequently implemented.
10. Personnel expenses
The expense items in the income statement include the personnel
expenses listed in the table below.
11. Adjusted operating income
Adjusted operating income is the internal management indicator
for the GfK Group and is explained in detail in the management
report. It is derived as follows:
Expenses and income in connection with reorganisation and
business combinations
Expenses and income in connection with reorganisation and business
combinations comprise expenses of eur 11,006 thousand arising in
connection with the planned merger with Taylor Nelson Sofres plc,
London, uk, which was not implemented. These were compensated
by the income from the break fee of eur 13,416 thousand. In addition,
the item includes expenses for the transformation changing the
legal form of GfK Aktiengesellschaft to GfK se amounting to eur
1,244 thousand and expenses in connection with the biss fi tness
and effi ciency program of eur 5,805 thousand. The biss expenses
primarily include costs of external consultancy and training services,
severance pay and expenses from combining business premises.
Write-ups and write-downs on additional assets identifi ed on
acquisitions
The composition of write-ups and write-downs on additional assets
identifi ed on acquisitions and the allocation to items in the income
statement are shown in the table below.
Further details are provided in section 16, in the sub-section
“amortization and impairments on intangible assets”.
Personnel expenses for share-based payments and
long-term incentives
Personnel expenses shown here include tranche 7 of the stock
option program for GfK Group managers amounting to eur 334
thousand (2007: eur 1,312 thousand). The total value of each
tranche is notifi ed two years to the day after the options are issued,
which corresponds to the period between issue and the date on
which options can be exercised for the fi rst time.
The item also includes income relating to the 5 Star Long Term
Incentive Plan for GfK Group employees and managers of
eur 1,403 thousand (2007: expenses of eur 365 thousand).
This is the amount released from the relevant provisions in
addition to the premium waiver of the employees included for
2008, which is based on calculations by an expert. Details are
provided in the section entitled “accounting policies”.
The table below shows the number, term and value of virtual shares
and virtual performance shares issued as part of the 5 Star Long
Term Incentive Plan.
2007 2008
Current amortization
Cost of sales 14,769 14,767
Impairments
Cost of sales 6,175 8,136
Selling and general administrative expenses 6,894 1,116
Other operating expenses 3,136 1,308
Reversal of impairments
Cost of sales – 522 0
Other operating income – 369 – 1,201
Write-ups and write-downs on additional assets
identifi ed on acquisitions 30,083 24,126
2007 2008
Exchange losses 9,386 33,360
Costs in connection with the planned merger with
Taylor Nelson Sofres plc, London, uk 0 11,006
Non-operating depreciation/amortization 3,223 3,835
Miscellaneous 5,455 8,053
Other operating expenses 18,064 56,254
2007 2008
Wages and salaries 391,392 415,505
Social security contributions and expenses
for pensions 73,783 78,756
Personnel expenses 465,175 494,261
2007 2008
Operating income 136,377 128,908
Expenses and income in connection with
reorganisation and business combinations 0 4,639
Write-ups and write-downs of additional assets
identifi ed on acquisitions 30,083 24,126
Personnel expenses for share-based payment and
long-term incentives 1,677 – 1,069
Remaining other operating income – 25,444 – 39,679
Remaining other operating expenses 14,928 41,822
Adjusted operating income 157,621 158,747
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12. Other financial income
Other fi nancial income amounting to eur 16,010 thousand
(2007: eur 7,901 thousand) mainly comprises income from
derivative fi nancial instruments (eur 13,682 thousand;
2007: eur 6,019 thousand) as well as interest on bank credit
balances of eur 997 thousand (2007: eur 1,371 thousand).
13. Other financial expenses
Other fi nancial expenses break down as shown in the table below:
Other interest expenses comprise eur 6,550 thousand (2007: 259
thousand) in expenses from derivative fi nancial instruments and
eur 3,912 thousand (2007: eur 3,711 thousand) in interest expenses
on future purchase price liabilities (put options or bonds) for the
acquisitions of shareholdings. Further information about the use of
derivative fi nancial instruments is provided in section 36.
14. Tax on income from ongoing business activity
The main elements of the Group’s tax on income are shown in the
table below.
The balance sheet for 2008 recorded a deferred tax asset
due to non-utilized tax losses totaling eur 4,880 thousand
(2007: eur 10,879 thousand). In addition, there was a deferred
tax asset from interest carried forward and tax credits amounting
to eur 8,885 thousand (2007: eur 8,304 thousand).
The tax rate used to calculate deferred taxes for GfK se and its
German subsidiaries that form part of a tax group (“Organschaft”)
comprises corporation tax of 15% plus the solidarity surcharge of
5.5% on the corporation tax debt paid as well as the effective trade
tax rate of 15.645%. This results in a tax rate of 31.470% as of
December 31, 2008.
The deferred taxes of the remaining German companies are
calculated according to the relevant municipal factor of the trade
tax rate. The deferred taxes of the companies outside Germany are
calculated according to the respective country-specifi c tax rates.
The table below contains a reconciliation of the anticipated income
tax expense on the income tax expense stated in fi nancial year
2008. To calculate the anticipated tax expense, the tax rate of
the parent company, GfK se, valid during the reporting year of
31.470% (2007: 39.824%) is multiplied by the pre-tax result.
The following income tax receivables and liabilities have been
recorded in the balance sheet:
Long-term income tax assets are reported under the balance sheet
item “Other non-current assets and deferred items”.
Notes to the consolidated income statement
2007 2008
Total tax rate 39.824% 31.470%
Expected tax expense 46,617 35,567
Increase/reduction in income tax debt resulting
from:
Subsequent tax payments and/or
reimbursements for previous years – 5,834 – 8,741
Other tax-exempt income – 7,652 – 5,762
Differences in tax rates – 9,715 – 3,047
Change in permanent differences – 9 – 2,793
Income from participations valued at equity,
not eligible for tax – 58 – 6
Deviating tax base 4,042 1,538
Non-deductible expenses 1,547 2,130
Adjustment of deferred tax due to changes
in tax rates – 3,995 2,458
Consolidation of taxable income from
participations 1,308 2,967
Change in temporary differences not recognized
as deferred tax assets, loss carried forward,
interest carried forward and tax credits 675 6,274
Other – 1,262 412
Tax expense reported 25,664 30,997
2007 2008
Interest and similar expenses due to banks 22,334 20,241
Other interest expenses 6,559 12,173
Interest expenses 28,893 32,414
Miscellaneous other fi nancial expenses 1,377 3,393
Other fi nancial expenses 30,270 35,807
Tranche 1 2 3
Year issued 2006 2007 2008
Year of payment 2009 2010 2011
Number of virtual shares issued (qty.) 59,633 54,416 87,428
Number of virtual performance shares issued
(qty.) 59,633 54,416 87,428
Fair value of a virtual share at the time of issue
in eur 30.11 25.71 16.74
Fair value of a virtual performance share at the time
of issue in eur 16.43 9.68 8.71
2007 2008
Current tax expenses/income
Taxes on income from other periods – 4,360 – 4,896
Tax income resulting from tax losses not previously
utilized – 601 0
Other actual taxes on income 37,035 33,523
Current tax expenses 32,074 28,627
Deferred tax expenses/income
from the formation or conversion of temporary
differences 2,2381) 3,561
from changes in the tax rate/new taxes – 2,281 2,458
based on previously non-utilized tax losses and
interest carried forward/tax credits – 184 – 1,450
based on new tax losses recognized and interest
carried forward/tax credits – 3,172 – 1,382
from the utilization of loss carried forward and
interest carried forward/tax credits 7,268 7,041
from write-ups and write-downs on additional assets
identifi ed on acquisitions – 11,417 – 10,016
Other deferred tax expenses 1,1381) 2,158
Deferred tax expenses/income – 6,410 2,370
Taxes on income from ongoing business activity 25,664 30,997
1) Figures for prior year adjusted for partially inappropriate allocation.
31.12.2007 31.12.2008
Long-term income tax assets 1,054 3,787
Short-term income tax assets 16,225 17,069
Total income tax receivables 17,279 20,856
Long-term income tax liabilities 223 0
Short-term income tax liabilities 25,862 28,448
Total income tax liabilities 26,085 28,448
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The deferred taxes result from the balance sheet items shown in the
following table.
Deferred taxes are reported in the balance sheet as shown in the
following table.
Taxes on items posted directly to equity amounted to eur 6,044
thousand (2007: eur –3,680 thousand).
As of December 31, 2008, the Group had domestic tax loss
carryforwards amounting to eur 108 thousand (2007: eur 5,146
thousand), which can be utilized for corporation tax and trade tax
purposes. In addition, there are foreign tax loss carryforwards
totaling eur 36,895 thousand (2007: eur 33,308 thousand).
The domestic loss carryforwards can be carried forward without
restriction in terms of time and amount. Of the foreign loss
carryforwards, the amount of eur 8,334 thousand may be carried
forward without limit or for a period of more than 15 years, and
the amount of eur 22,575 thousand is available for carryforward
until 2018. eur 5,986 thousand can be carried forward until 2013.
The estimate of their future realizability governs the recognition
and valuation of deferred tax assets. This is dependent on the
generation of future taxable profi ts during accounting periods in
which tax valuation differences are reversed and tax loss carry-
forwards can be applied.
In view of expected future performance, it is assumed probable that
the relevant benefi ts of the recognized deferred tax assets will be
realized according to the provisions of ifrs. For companies which
reported deferred tax receivables for tax loss carryforwards and
which were in a loss-making situation in the year under review or
the previous year, deferred tax assets of eur 793 thousand are
stated, since there is suffi cient assumption of future profi ts.
The items for which no deferred tax assets have been stated are
shown in the table below.
Of the tax losses not recognized as deferred tax assets, an amount
of eur 2,642 thousand lapses within the next fi ve years. eur 11,627
thousand will lapse within the next six to ten years. The remaining
eur 6,879 thousand will lapse after more than 15 years or include
amounts with no time limit on their use. Of the taxable interest carried
forward/tax credits, eur 374 thousand will lapse within the next six
to ten years. The remaining eur 8,008 thousand are amounts with
no time limit on their use. These relate to interest expenses incurred
in Germany in 2008, which are not tax-deductible following the
introduction of the regulations on the interest limit by implementation
of the Corporation Tax Reform Act of 2008.
The GfK Group reports deferred taxes on retained profi ts from
foreign subsidiaries where these profi ts are distributable and are to
be distributed in the foreseeable future.
Pay-outs to shareholders of GfK se do not result in income tax
consequences at GfK se level.
15. Earnings per share
Earnings per share are derived as shown below:
The average number of shares is diluted by 20,148 shares from
options issued, not yet exercised and options under tranches 4 to 7
exercised in the fi nancial year under review, which are in the
money as of the reporting date. This does not result in a dilution
effect in respect of the earnings per share. Additional information
about the stock option program is provided in section 25 of these
Notes. Business events involving potential ordinary shares did not
arise after the balance sheet date.
31.12.2007 31.12.2008
Temporary differences 4 41
Tax losses carried forward 6,259 21,148
Interest carried forward/tax credits 2,970 8,382
Total 9,233 29,571
31.12.2007 31.12.2008
Goodwill 7,235 7,615
Other intangible assets 4,487 4,612
Tangible assets 1,952 3,339
Investments in affi liates 5,625 5,336
Investments in associates and other participations 77 94
Other fi nancial assets 22,816 5,065
Other non-current assets and deferred
items 832 4,916
Non-current assets 43,024 30,977
Receivibles and other current assets 614 480
Securities and fi xed-term deposits, cash and cash
equivalents 21 1
Current assets 635 481
Long-term provisions 6,660 7,533
Other long-term liabilities and deferred items 2,969 4,337
Non-current liabilities 9,629 11,870
Short-term provisions 897 1,120
Other short-term liabilities and deferred items 18,705 10,600
Current liabilities 19,602 11,720
Tax losses forward and interest carried forward/
tax credits 19,183 13,765
Deferred tax assets 92,073 68,813
Goodwill – 11,624 – 17,068
Other intangible assets – 59,311 – 60,575
Tangible assets – 7,325 – 9,851
Investments in affi liates – 1,304 – 1,711
Investments in associates and other participations – 144 – 202
Other fi nancial assets – 205 0
Other non-current assets and deferred
items – 119 – 223
Non-current assets – 80,032 – 89,630
Receivibles and other current assets – 22,249 – 14,443
Securities and fi xed-term deposits, cash and cash
equivalents 0 – 51
Current assets – 22,249 – 14,494
Long-term provisions – 633 – 335
Other long-term liabilities and deferred items – 13,691 – 4,579
Non-current liabilities – 14,324 – 4,914
Short-term provisions – 390 – 918
Other short-term liabilities and deferred items – 3,203 – 2,241
Current liabilities – 3,593 – 3,159
Deferred tax liabilities – 120,198 – 112,197
Net deferred tax liabilities – 28,125 – 43,384
31.12.2007 31.12.2008
Deferred tax assets 44,255 30,048
Deferred tax liabilities – 72,380 – 73,432
Net deferred tax liabilities – 28,125 – 43,384
2007 2008
Consolidated total income attributable to equity
holders of the parent 83,230 73,161
Weighted average of shares outstanding (no.)
– non-diluted – 35,682,085 35,884,308
Weighted average of shares outstanding (no.)
– diluted – 35,903,757 35,904,456
Earnings per share in eur 2.33 2.04
Earnings per share (diluted) in eur 2.32 2.04
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16. Intangible assets
The movement in intangible assets is shown in the table below.
Intangible assets of major importance
The sum total of all intangible assets of major importance is shown
in the table below. These fi gures relates to intangible assets with
an individual value of more than eur 5 million.
The major portion of goodwill relates to the former nop World
companies. Goodwill and brands have an indefi nite useful life and
are not subject to scheduled amortization.
Software relates to the internally developed StarTrack analysis and
production system in the Retail and Technology sector with a
remaining useful life of fi ve years as well as the Evogenius software,
which is still being developed for the Media sector and has a useful
life of ten years.
The surveys and brands stem primarily from the purchase price
allocation as part of the acquisition of the former nop World.
The useful life for the surveys is ten years. The customer relations
with an initial useful life of 19 years resulted from the purchase
price allocation as part of the acquisition of GfK arbor, llc, Media,
Pennsylvania, usa.
Amortization and impairments on intangible assets
Amortization and impairments charged on intangible assets are
included in the income statement under the items shown in the
following table.
An impairment test is carried out at least once a year to determine
whether and to what extent existing goodwill is to be impaired. No
impairment adjustment was required as a result of the impairment
tests for 2007 and 2008. There were therefore no impairment
expenses for either fi nancial year.
The recoverability of panel set-up costs and brands with an indefi nite
useful life was also reviewed as part of an impairment test.
The impairment expenses totaled eur 13,003 thousand (2007: eur
16,327 thousand). eur 1,308 thousand relate to impairment losses
on brands and eur 316 thousand to impairment on panels. Impair-
ments on surveys amounting to eur 7,128 thousand, on software of
eur 2,576 thousand, on customer relations of eur 1,116 thousand
and on long-term contracts of eur 559 thousand are also included.
The impairment adjustments were identifi ed in the impairment test,
which was based on updated capital market data and adjusted
business planning.
Notes to the consolidated balance sheet
31.12.2007 31.12.2008
Goodwill 696,813 660,829
Software 21,614 25,170
Surveys 48,698 37,924
Customer relations 14,626 7,183
Brands 26,014 25,424
2007 2008
Cost of sales 29,244 33,403
Selling and general administrative expenses 7,915 2,272
Other operating expenses 3,157 3,608
Total 40,316 39,283
Acquisition and
manufacturing costs Goodwill
Internally
generated
intangible
assets
Miscel-
laneous
intangible
assets
Total:
intangible
assets
As of
January 1, 2007 805,242 41,090 274,692 1,121,024
Exchange rate changes – 46,844 – 518 – 16,526 – 63,888
Change in scope of
consolidation 33,037 497 8,438 41,972
Additions 1,066 17,491 6,919 25,476
Disposals – 7,642 – 239 – 14,735 – 22,616
Reclassifi cations 0 0 – 261 – 261
As of
December 31, 2007 784,859 58,321 258,527 1,101,707
As of
January 1, 2008 784,859 58,321 258,527 1,101,707
Exchange rate changes – 44,168 975 1,859 – 41,334
Change in scope of
consolidation 32,884 498 16,128 49,510
Additions 495 15,355 7,860 23,710
Disposals – 81 – 108 – 1,710 – 1,899
Reclassifi cations 0 189 – 159 30
As of
December 31, 2008 773,989 75,230 282,505 1,131,724
Cumulative
amortization
As of
January 1, 2007 40,587 7,825 95,029 143,441
Exchange rate changes – 420 – 46 – 4,873 – 5,339
Change in scope of
consolidation 0 104 3 107
Additions 0 3,310 20,679 23,989
Disposals – 1,000 – 174 – 12,883 – 14,057
Impairments 0 35 16,292 16,327
Reversal of impairment 0 0 – 891 – 891
Reclassifi cations 0 0 – 145 – 145
As of
December 31, 2007 39,167 11,054 113,211 163,432
As of
January 1, 2008 39,167 11,054 113,211 163,432
Exchange rate changes – 1,915 343 3,045 1,473
Change in scope of
consolidation 271 115 16 402
Additions 0 5,593 20,687 26,280
Disposals 0 – 108 – 2,076 – 2,184
Impairments 0 2,443 10,560 13,003
Reversal of impairment 0 0 – 1,201 – 1,201
Reclassifi cations 0 0 17 17
As of
December 31, 2008 37,523 19,440 144,259 201,222
Carrying values
As of
January 1, 2007 764,655 33,265 179,663 977,583
As of
December 31, 2007 745,692 47,267 145,316 938,275
As of
January 1, 2008 745,692 47,267 145,316 938,275
As of
December 31, 2008 736,466 55,790 138,246 930,502
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Goodwill
The allocation of goodwill to the cash generating units is shown in
the following table.
The decrease in goodwill of eur 9,226 thousand resulted from a
rise of eur 32,613 thousand from changes in the scope of consoli-
dation, an exchange rate driven reduction of eur 42,253 thousand
as well as additions and disposals of eur 414 thousand.
Internally generated intangible assets
Internally generated intangible assets primarily comprise
internally developed software totaling eur 40,016 thousand
(2007: eur 30,403 thousand) as well as panel set-up costs of
eur 13,695 thousand (2007: eur 11,762 thousand).
Panel set-up costs only have a limited useful life if the panel was
created for a specifi c, fi xed-term client order. Capitalized panel
set-up costs amounting to eur 9,525 thousand (2007: eur 9,318
thousand) have an indefi nite useful life.
The allocation of panel set-up costs to the sectors is shown in
the table below.
Miscellaneous intangible assets
The breakdown of miscellaneous intangible assets is shown in the
table below.
Brands, which have been identifi ed and capitalized as part of the
purchase price allocation, have an indefi nite useful life. They are
established brands with a high degree of brand recognition.
The allocation of brands to the sectors is shown in the table
below.
17. Tangible assets
The movement in tangible assets is shown in the table below.
Acquisition and
manufacturing costs
Land and
buildings
Fixtures
and fi ttings
Total:
Tangible
assets
As of January 1, 2007 48,990 203,235 252,225
Exchange rate changes – 341 – 4,040 – 4,381
Change in scope of
consolidations 0 839 839
Additions 917 24,238 25,155
Disposals – 826 – 7,593 – 8,419
Reclassifi cations 50 211 261
As of December 31, 2007 48,790 216,890 265,680
As of January 1, 2008 48,790 216,890 265,680
Exchange rate changes 1,510 – 5,696 – 4,186
Change in scope of
consolidations 35 1,388 1,423
Additions 388 34,269 34,657
Disposals – 302 – 10,560 – 10,862
Reclassifi cations – 35 5 – 30
As of December 31, 2008 50,386 236,296 286,682
Cumulative depreciation
As of January 1, 2007 17,378 154,982 172,360
Exchange rate changes – 117 – 2,686 – 2,803
Change in scope of
consolidations 0 402 402
Additions 1,248 18,940 20,188
Disposals – 168 – 6,683 – 6,851
Impairments 0 66 66
Reversal of impairment 0 0 0
Reclassifi cations 0 145 145
As of December 31, 2007 18,341 165,166 183,507
As of January 1, 2008 18,341 165,166 183,507
Exchange rate changes 600 – 3,770 – 3,170
Change in scope of
consolidations 0 963 963
Additions 1,274 20,510 21,784
Disposals – 3 – 10,103 – 10,106
Impairments 0 225 225
Reversal of impairment 0 0 0
Reclassifi cations 0 – 17 – 17
As of December 31, 2008 20,212 172,974 193,186
Carrying values
As of January 1, 2007 31,612 48,253 79,865
As of December 31, 2007 30,449 51,724 82,173
As of January 1, 2008 30,449 51,724 82,173
As of December 31, 2008 30,174 63,322 93,496
31.12.2007 31.12.2008
Custom Research 486,262 476,929
Retail and Technology 112,928 125,124
Media 146,502 134,413
Goodwill 745,692 736,466
31.12.2007 31.12.2008
Disclosed hidden reserves from purchase
price allocation:
Surveys 53,941 40,794
Customer relations 32,093 36,520
Brands 32,704 32,155
Panels 5,259 7,225
Contracts 1,456 400
Order book 518 364
Software 14,026 16,056
Panels 351 404
Sundry intangible assets 4,968 4,328
Miscellaneous intangible assets 145,316 138,246
31.12.2007 31.12.2008
Custom Research 20,851 19,882
Retail and Technology 140 64
Media 11,713 12,209
Brands 32,704 32,155
31.12.2007 31.12.2008
Custom Research 6,165 6,972
Retail and Technology 1,709 1,478
Media 1,444 1,075
Panel set-up costs 9,318 9,525
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A land charge has been entered on a piece of land with company
buildings in Nuremberg with a carrying value of eur 9,304 thousand
(2007: eur 9,536 thousand) for the potential granting of a loan
by a bank. No secured liabilities existed as of the reporting date
(2007: eur 2,588 thousand).
Leasing
The GfK Group leases offi ce premises and business equipment
under long-term lease agreements. As a rule, the lease installments
consist of a minimum lease payment plus a contingent lease payment
whose level is governed by the level of use of the leased assets.
In cases in which the GfK Group bears the risks and opportunities
arising from the use of the leased assets to a substantial extent,
these are capitalized (fi nance lease). Otherwise, the lease install-
ments are carried as an expense (operating lease).
Operating Lease
The payments listed in the table below under operating lease
agreements were carried as expenses:
The future minimum lease payments under non-terminable
agreements are due as of December 31, 2008 as follows:
The main operating leases in the GfK Group involve leases on land
and buildings, some with options to extend the lease. They have
differing future expiry dates.
Finance Lease
The carrying values of capitalized leased assets as of December 31,
2008 are shown in the table below.
Determination of the present value and due date of future minimum
lease payments are shown in the tables below.
In the reporting year, there were no contingent lease installments
to be recognized as expenses. There were no sub-lease arrangements
under fi nance leases.
The main fi nance leases held by the GfK Group are for buildings
and part buildings, software as well as fi xtures and fi ttings.
In April 1992, GfK se entered into a sale-and-leaseback agreement
for part of the offi ce building at Nordwestring 101, Nuremberg,
which qualifi es as a fi nance lease. The lease was concluded for
30 years with an original obligation amount of eur 13,012 thousand.
The original lease period without right of cancellation ends
in March 2012, but with the option to acquire the building for
eur 7,533 thousand.
The fi nance lease liability is eur 14,343 thousand (2007: eur 13,618
thousand), of which eur 2,799 thousand (2007: eur 2,184 thousand)
has a remaining term of under one year.
18. Financial assets
Investments in associates
The GfK Group’s investments in associates are shown in the list of
shareholdings attached to these Notes as an appendix.
The table below gives a summary of fi nancial information on the
main investments in associates, which have been valued at equity
in the consolidated fi nancial statements.
The rise in the fi gures shown in the above table resulted essential-
ly from the Dmrkynetec Group. As of July 1, 2008, a participation
was acquired in the parent company of the group, whose activities
are mainly based in the usa and uk, DmrKynetec Group Limited,
St Peter Port, Guernsey, uk. This acquisition was part of an
exchange for participations in the GfK Group’s subsidiaries GfK
Animal Healthcare Limited, West Byfl eet/Surrey, uk, and m2a s.a.,
Saint Aubin, France.
During the reporting period, there were no material pro rata losses
on the shareholdings in associates.
As in the previous year, the equity valuation was based on fi nancial
statements with differing reporting dates for the following associated
companies:
Media Focus (arge), Hergiswil, Switzerland (November 30, 2008)
org-GfK Marketing Services (India) Private Limited, Mumbai,
India (März 31, 2008)
Sports Tracking Europe, b.v., Amstelveen, Netherlands
(September 30, 2008)
npd Intelect, l.l.c., Port Washington, New York, New York, usa
(September 30, 2008)
Notes to the consolidated balance sheet
2007 2008
Assets 44,220 99,383
Liabilities 18,215 37,339
Sales 59,296 75,365
Total income for the period 11,547 13,745
2007 2008
Minimum lease payments 28,476 29,022
Contingent lease payments 294 78
Less sub-lease payments received – 228 – 390
Lease payments 28,542 28,710
31.12.2007 31.12.2008
Buildings 10,033 9,635
Other leased assets 1,899 3,717
Capitalized leased assets 11,932 13,352
31.12.2008
Payable
Minimum
lease in-
stallments
Less
interest
Present value
minimum lease
installments
Within one year 2,932 – 133 2,799
Between one and fi ve years 13,446 – 1,902 11,544
After more than fi ve years 0 0 0
Future minimum lease installments 16,378 – 2,035 14,343
31.12.2007
Payable
Minimum
lease in-
stallments
Less
interest
Present value
minimum lease
installments
Within one year 2,281 – 97 2,184
Between one and fi ve years 13,590 – 2,373 11,217
After more than fi ve years 236 – 19 217
Future minimum lease installments 16,107 – 2,489 13,618
Payable 31.12.2007 31.12.2008
Within one year 26,335 27,531
Between one and fi ve years 68,824 69,940
After more than fi ve years 34,839 31,799
Future minimum lease payments under
operating lease 129,998 129,270
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The carrying amount for these shares and the income from
associates are not materially affected by including these fi nancial
statements with differing reporting dates. Moreover, preparing
interim fi nancial statements would not have been possible for
practical reasons.
Other fi nancial assets
The breakdown of other fi nancial assets is shown in the table
below.
The shares in affi liated, non-consolidated companies and other
participations are reported at amortized cost, as no market prices
exist for them and other methods of realistically estimating the
fair value are not practicable.
Further information on the GfK Group’s shares in affi liated
companies and other participations is provided in the list of
shareholdings in the appendix to these Notes.
19. Other non-current assets and deferred items
Other non-current assets of eur 8,413 thousand (2007: eur 5,878
thousand) comprise mainly other long-term income tax receivables
of eur 3,787 thousand (2007: eur 1,054 thousand), other long-term
receivables from insurance companies of eur 2,325 thousand (2007:
eur 1,993 thousand) and deposits amounting to eur 1,138 thousand
(2007: eur 1,523 thousand).
20. Trade receivables
Trade receivables break down as follows:
Impairment expenses amounted to eur 2,607 thousand (2007:
eur 1,734 thousand). They are shown in the income statement
under the item selling and general administrative expenses.
Allocations to valuation allowances totaled eur 2,607 thousand
(2007: eur 1,734 thousand) and reversals of valuation allowances
stood at eur 812 thousand (2007: eur 958 thousand). Valuation
allowances of eur 1,143 thousand (2007: eur 1,717 thousand) were
utilized.
21. Securities and fixed-term deposits
As of the balance sheet date, securities and fi xed-term deposits of
eur 928 thousand (2007: eur 830 thousand) comprised no money
market funds.
22. Cash and cash equivalents
A breakdown of cash and cash equivalents is shown in the table
below.
There are no material restrictions on the availability of cash and
cash equivalents.
23. Other current assets and deferred items including assets held for sale
The other current assets and deferred items break down as shown
in the table below.
The derivatives reported here are primarily part of cash fl ow hedges
used to hedge interest rate risk.
As of December 31, 2008, the company reported no assets held for
sale. Further details are provided in Note 33.
24. Due dates of non-impaired assets
The trade receivables and other current assets fall due for payment
as shown in the table below.
31.12.2007 31.12.2008
Deferred items 11,124 12,448
Receivables from tax and other authorities 4,665 4,440
Derivative fi nancial instruments 7,805 2,197
Inventories 2,447 754
Assets held for sale 9,530 0
Other current assets 16,438 17,413
52,009 37,252
Less valuation allowances – 1,802 – 1,018
Other current assets and deferred items
including asset held for sale 50,207 36,234
31.12.2007 31.12.2008
Shares in affi liated companies 4,654 3,410
Other participations 252 1,500
Loans to affi liated companies 2,980 992
Other loans 253 254
Other available-for-sale securities 340 343
Long-termed fi xed deposits 63 115
Other fi nancial assets 8,542 6,614
31.12.2007 31.12.2008
Billed trade receivables 232,518 230,751
Unbilled trade receivables 49,763 45,378
282,281 276,129
Less valuation allowances – 4,819 – 5,429
Trade receivables 277,462 270,700
31.12.2007 31.12.2008
Credit with banks 28,655 29,627
Cash equivalents and fi xed-term deposits
with a remaining term of less than 3 months 10,844 7,086
Checks in transit – 2,502 – 552
Cash in hand and checks 749 509
Cash and cash equivalents 37,746 36,670
31.12.2007 31.12.2008
Trade recivables 277,462 270,700
of which: neither impaired nor overdue 160,439 161,901
of which: non-impaired and overdue as follows
by up to 30 days 73,786 69,802
by between 31 and 90 days 30,126 24,681
by between 91 and 180 days 7,858 9,511
by between 181 and 360 days 1,552 4,135
by more than 360 days 3,701 670
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In the GfK Group, a considerable portion of the trade receivables
is due on the billing date. Trade receivables which are not due
include unbilled receivables amounting to eur 45,378 thousand
(2007: eur 49,763 thousand).
Information about the guidelines on monitoring receivables and the
credit rating of clients as well as the criteria for setting up valuation
allowances relating to receivables, which apply throughout the
Group, are provided in section 3 under Accounting policies.
25. Equity
Subscribed capital
The subscribed capital of GfK Aktiengesellschaft became the
subscribed capital of GfK se as of the transformation date on
February 2, 2009, in the amount in place on the transformation
date and divided into no-par bearer shares according to the division
existing on this date. The authorized and contingent capital of
GfK Aktiengesellschaft became authorized and contingent capital
of GfK se, in the amount existing on the date of transformation.
The stock options exercised in 2008 increased the share capital
of GfK se.
Under the stock option program, in 2008, the holders of option
rights from tranches 2003/2008, 2004/2009 and 2005/2010 were
entitled to acquire no-par shares in GfK se in the ratio 1:1.2 and
from tranche 2006/2011 in the ratio 1:1 against submission of the
option rights. In 2008, a total of 84,332 no-par shares were
acquired by exercising 70,277 options.
As a result of the issue of new shares, the subscribed capital,
capital reserve and the number of no-par bearer ordinary shares
issued developed as follows:
The 35,947,363 no-par shares are fully paid-up. Each shareholder
is entitled to receive dividends on his shares in accordance with
the respective profi t distribution resolution. Each share grants one
vote at the Annual General Meeting.
Authorized capital
GfK se has authorized capital, on the basis of which the Management
Board is authorized, with the consent of the Supervisory Board, to
increase the share capital against cash and/or contributions in kind on
one or more occasions until May 22, 2012 by up to a total amount of
eur 55,000 thousand, whereby the shareholders’ subscription rights
may be excluded.
Contingent capital
In June 1999, the shareholders passed a resolution for a contingent
increase of eur 5,120 thousand in the company’s share capital by
issuing up to 2,000,000 new no-par bearer shares. At the Extra-
ordinary General Meeting of September 3, 1999, the shareholders
passed a resolution to relate profi t entitlement to the start of the
fi nancial year in which the options are exercised. The aim of the
contingent capital increase is to grant option rights to the senior
management teams of the company and its affi liated companies
within the meaning of Section 15 ff. of the German Stock Corporation
Act. Acquiring shares is contingent on the achievement of a
minimum target, to be agreed with each individual entitled person,
for their immediate area of responsibility.
The number of options available to each entitled person is based on
the variable salary component advised to each entitled person in
an individual letter, which can be replaced by options in the ratio of
1:2.5 by waiving a portion of the promised bonus. The actual number
of options for tranches 1 to 3 results from division of this fi gure by
a factor of 4.5. The option right can be exercised at the earliest two
years after issue and only within defi ned exercise windows. The
exercise price for tranches 2000/2005 and 2001/2006 was the
equivalent of 120% of the average price of GfK shares in the Xetra
closing auction on the fi ve trading days prior to the issue of the
option rights or 120% of the price of GfK shares in the Xetra closing
auction on the date of issue, if this was higher than the aforementi-
oned average price.
In June 2002, the shareholders consented to cancelling the existing
authorization to grant option rights and approved a new authorization
and an increase in the contingent capital to eur 6,687 thousand.
In 2004, the contingent capital increased through the issue of bonus
shares in the ratio of 5:1 to eur 13,262 thousand.
The option terms resolved apply to tranches 2002/2007, 2003/2008,
2004/2009, 2005/2010 and 2006/2011 and deviate from those of
prior tranches of the program as follows:
Members of the Management Board of GfK se may hold a maximum
of 30% (previously 20%) of the option rights being granted.
Options may not be exercised during the 14 days before publication
of quarterly, half-yearly, annual or preliminary annual fi gures. In
addition, the company may set further periods at its discretion during
which options may not be exercised. For each of the tranches to be
issued, the exercise price to acquire a share is the share’s average
Xetra price between the respective previous accounts press con-
ference and the Annual General Meeting, or, if higher, the price of
the share in the Xetra closing auction on the trading day on which
the respective tranche is issued, plus a premium of 5%. Trading days
are those days on which the Frankfurt Stock Exchange determines a
price for the company’s shares.
Notes to the consolidated balance sheet
31.12.2007 31.12.2008
Other current assets and deferred items
(excluding inventories and receivables from
employees) 37,212 34,760
of which: neither impaired nor overdue 32,817 26,976
of which: non-impaired and overdue as follows
by up to 30 days 1,591 2,601
by between 31 and 90 days 1,669 2,867
by between 91 and 180 days 411 976
by between 181 and 360 days 186 1,147
by more than 360 days 538 193
Subscribed
capital
eur’000
Capital
reserve
eur’000
Number of
no-par shares
issued
Units
Carried forward as of
January 1, 2008 150,081 195,750 35,863,031
Issue of new shares through
conversion of options from
contingent capital 216 1,194 84,332
Personnel expenses for
stock options
0 1.334 0
As of December 31, 2008 150,297 197,278 35,947,363
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Tranche 4 5 6 7
Implicit volatility on issue date in % 51 34 26 22
Risk-free investment interest in %1) 2.2 3.2 2.5 3.9
Term in years 5.6 5.5 5.6 5.6
Fair value per option in eur 5.70 6.66 5.04 3.14
Total value per program 2,654 2,809 2,289 1,730
1) Interest rate of zero coupon bonds with a maturity of three years
2007 2008
Number
of options
Weighted
average price
in eur/share
Number
of options
Weighted
average price
in eur/share
Balance at
start of year 1,470,955 27.83 1,157,045 29.12
Options
granted – – – –
Exercised 299,109 22.72 70,277 16.72
Forfeited 14,801 30.35 11,574 31.00
Expired – – – –
Repayments – – – –
Balance at
year-end 1,157,045 29.12 1,075,194 29.91
Exercisable at
year-end 612,809 25.25 1,075,194 29.91
At the start of 2008, the contingent capital (contingent capital i and ii)
for exercising options amounted to eur 7,918 thousand, equivalent
to 2,544,690 no-par bearer shares. Following the exercise of options
in 2008, the company’s contingent capital was reduced by eur 216
thousand. By resolution of the Annual General Meeting on May 23,
2007, the company’s contingent capital was increased by eur 21,250
thousand through the issue of up to 5,000,000 new no-par bearer
shares (contingent capital iii). The contingent capital iii is used to
grant shares to holders or creditors of options and/or convertible
bonds issued on the basis of the authorization of the Annual General
Meeting of May 23, 2007.
The contingent capital of the company amounted to eur 28,952
thousand as of December 31, 2008, which corresponds to 7,460,358
no-par shares.
Stock Options
As a result of the capital increase in 2004 out of company funds
and the issue of bonus shares in the ratio of 5:1, the subscription
right in respect of the issued options of tranches 1 to 6 increased
from one share to 1.2 shares per option. The exercise prices were
adjusted accordingly. For tranche 7, to which GfK executives were
invited to subscribe after the capital increase in 2004, one option
corresponds to the right to subscribe one share.
The development of the stock options issued is shown in the table
below.
During fi nancial year 2008, the stock option program involved
personnel expenses of eur 334 thousand (2007: eur 1,312
thousand).
The fair value of the stock options issued by GfK in the years 2001
to 2006 was calculated as of the date of granting on the basis of
a Black-Scholes option pricing model, which takes account of the
issue terms and conditions. The parameters considered when
calculating the fair value and the overall amounts based on it are
shown in the table below.
The calculation of volatility is based on historical volatility data for
GfK shares (weekly average prices, net of any extraordinary past
prices) for the expected term of the options.
The average weighted remaining term for the stock options was
2.3 years (2007: 3.2 years) as of December 31, 2008.
The development of the individual items of equity is shown in the
table below.
Term
Total
options
Of which:
Manage-
ment
Board
Exercise
price
in eur from to
Options
exercised
Shares
issued
4 2003/
2008 457,319 149,9991) 15.44 2005 2008 457,319 548,780
5 2004/
2009 418,720 128,1101) 25.81 2006 2009 246,964 296,356
6 2005/
2010 440,021 122,2211) 26.60 2007 2010 73,415 88,098
7 2006/
2011 536,832 146,664 33.48 2008 2011 – –
1) Including members who have since left the Management Board.
Tra
nch
e
Exercisable
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The change in the difference from currency translation in the
year under review of eur –61,167 thousand, recognized directly
in equity, resulted mainly from the devaluation of the pound
sterling.
During the reporting year, eur 16,138 thousand (2007:
eur 12,781 thousand) were distributed to the shareholders.
This corresponds to eur 0.45 eur (2007: eur 0.36) per share.
Proposed appropriation of profi ts
In accordance with the German Stock Corporation Act, the dividend
that may be distributed is determined by the retained profi t reported
in the annual fi nancial statements of the parent company, GfK se.
These are prepared under the provisions of the German Commercial
Code (hgb). The retained earnings and retained profi t of GfK se re-
ported under the provisions of the hgb are available for distribution
to shareholders in their entirety. The capital reserve may not be
distributed to shareholders.
A proposal will be made to the Annual General Meeting to distribute
a dividend of eur 16,536 thousand (eur 0.46 per no-par share) to
shareholders out of the retained profi t of eur 133,020 thousand
and to transfer eur 116,484 thousand to other retained earnings.
26. Long-term provisions
The breakdown of long-term provisions is shown in the table below:
Pension provisions
Pension provisioning within the GfK Group is based on both
defi ned contribution plans and defi ned benefi t plans for each
company.
For defi ned contribution plans, which are fi nanced exclusively on
the basis of external funds, there are no further obligations for
GfK companies other than paying contributions. Expenses for
defi ned contribution plans also include employer contributions
to statutory pension plans.
Pension commitments are based on statutory or contractual
arrangements or are on a voluntary basis. The basis of assessment
for contributions to defi ned contribution plans is mainly the
length of service with the company and the wage or salary level of
the employee. However, the benefi ts can vary depending on the
legal, fi scal and economic framework conditions of the country
concerned. The expenses for defi ned contribution plans amounted
to eur 14,089 thousand in 2008 (2007: eur 12,827 thousand).
The pension obligations arising from defi ned benefi t plans are
reported according to the projected unit credit method. Actuarial
reports are produced annually by independent actuaries for
defi ned benefi t plans. The actuaries apply statistical and actuarial
calculations to determine the assets and provisions to be carried
on the balance sheet. Determining the present value of defi ned
benefi t plans and pension assets is based on empirical and
statistical estimated values, such as future salary raises, mortality
rates or expected long-term returns on the plan assets.
Discrepancies between the actual values and these estimated
values are expressed as actuarial gains or losses. The GfK Group is
utilizing the option under ias 19, whereby actuarial gains and
losses are not recognized in the income statement but recognized
directly in equity. In the year under review, actuarial losses of
Notes to the consolidated balance sheet
Attributable to equity holders of the parent
Income and expense
recognized directly in equity
Sub-
scribed
capital
Capital
reserve
Retained
earnings
Currency
trans-
lation
dif-
ferences
Fair
value of
securities
available-
for-sale
Valuation
of cash fl ow
hedges
(effective
portion)
Valuation
of net
investment
hedges
for foreign
subsidiaries
Actuarial
gains/losses
on defi ned
benefi t plans Total
Minority
interests
Total
equity
As of
January 1, 2007 150,847 185,050 122,700 – 20,243 28 6,423 8,807 – 4,718 448,894 17,511 466,405
Total income 83,230 – 49,651 – 38 – 1,436 10,041 3,748 45,894 7,872 53,766
New shares issued 919 7,703 8,622 8,622
Dividends to
shareholders – 12,781 – 12,781 – 6,354 – 19,135
Other changes – 1,685 2,997 – 2,565 – 1,253 1,146 – 107
As of
December 31, 2007 150,081 195,750 190,584 – 69,894 – 10 4,987 18,848 – 970 489,376 20,175 509,551
As of
January 1, 2008 150,081 195,750 190,584 – 69,894 – 10 4,987 18,848 – 970 489,376 20,175 509,551
Total income 73,161 – 61,167 14 – 5,108 – 3,233 – 4,809 – 1,142 8,968 7,826
New shares issued 216 1,194 1,410 1,410
Dividends to
shareholders – 16,138 – 16,138 – 3,611 – 19,749
Other changes 334 3,129 3,463 – 2,205 1,258
As of
December 31, 2008 150,297 197,278 250,736 – 131,061 4 – 121 15,615 – 5,779 476,969 23,327 500,296
31.12.2007 31.12.2008
Pension provisions 34,749 41,491
Other long-term provisions 18,888 15,073
Long-term provisions 53,637 56,564
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eur 5,283 thousand (2007 gains: eur 5,455 thousand) were
reported in this way. This change also comprises the effects of
currency translation. The cumulative amount of income and
expenses recognized directly in equity totaled eur –6,846 thousand
as of December 31, 2008 (2007: eur –1,563 thousand). The values
indicated represent the relevant fi gures before deferred taxes and
excluding minority interests.
The calculation of obligations and, in certain cases, associated plan
assets, is based on the actuarial and statistical assumptions listed
in the table below (weighted average).
Mortality rates for GfK companies in Germany were taken from the
2005 g guideline tables by Dr. Klaus Heubeck.
The breakdown of pension provisions reported in the balance sheet
is shown in the table below.
The movement in the present value of the defi ned benefi t obligation
(dbo) during the period under review is shown in the table below.
The table below shows the movement in plan assets.
The plan assets for funded pension obligations essentially comprise
fi nancial instruments amounting to eur 39,842 thousand (2007:
eur 35,987 thousand).
The general expected return on the plan assets was determined
based mainly on experience from the past ten years. The expected
return on plan assets reported in the fi nancial statements for 2008 is
on average 3.98% (2007: 4.42%). The actual results from the plan
assets amounted to eur –4,690 thousand in 2008 (2007: eur 821
thousand).
According to GfK estimates, contributions of around eur 2,067
thousand will be payable into funded pension plans over the coming
year.
The amounts reported in the income statement break down as
shown in the table below.
The pension expenses are included mainly in cost of sales, selling
and general administrative expenses and interest expenses.
The funding status is shown in the table below.
The fi rst-time valuation of pension provisions in accordance with
ias 19 was carried out in 2004. Accordingly, no empirical values
regarding the adjustment in liabilities and assets are available for
that year.
2007 2008
Fair value of plan assets as of January 1 41,627 40,754
Change in scope of consolidation 0 1,368
Expected return on plan assets 1,844 1,983
Actuarial gains/losses – 716 – 6,601
Exchange rate changes – 1,214 4,816
Employer contributions 1,755 3,265
Participant contributions 1,023 1,137
Benefi ts paid – 1,006 – 1,532
Plan settlements – 2,559 – 151
Fair value of plan assets as of December 31 40,754 45,039
2007 2008
Service cost 3,172 3,324
Interest cost 2,796 3,207
Expected return on plan assets – 1,850 – 1,983
Past service cost 121 33
Profi t/loss from curtailment or discontinuation
of pension plans – 846 – 23
Pension expenses 3,393 4,558
2004 2005 2006 2007 2008
Pension liabilities 61,325 77,831 81,998 75,336 86,450
Pension assets – 33,760 – 39,388 – 41,627 – 40,754 – 45,039
Impact of ceiling in accor-
dance with ias 19.58 (b) 0 0 0 58 80
Funding status 27,565 38,443 40,371 34,640 41,491
Empirical adjustment
in liabilities – 26.92 % 5.35 % – 8.12 % – 2.77 %
Empirical adjustment
in assets – 16.67 % 5.68 % – 2.10 % 15.60 %
2007 2008
Discount rate 4.27 % 4.38 %
Rate of salary increase 2.40 % 2.35 %
Fluctuation rate 0.38 % 0.41 %
Expected growth in pensions 1.18 % 1.05 %
Expected long-term return on plan assets 4.42 % 3.98 %
31.12.2007 31.12.2008
Present value of unfunded obligations 33,453 32,779
Present value of funded obligations 41,883 53,671
Present value of overall obligations 75,336 86,450
Fair value of plan assets – 40,754 – 45,039
Impact of ceiling in accordance with ias 19.58 (b) 58 80
Net present value of obligations 34,640 41,491
Pension provisions 34,749 41,491
Other assets – 109 – 162
Net amount reported on balance sheet 34,640 41,329
31.12.2007 31.12.2008
Present value of defi ned benefi t obligation
as of January 1 81,998 75,336
Change in scope of consolidation 8 1,813
Current service cost 3,172 3,324
Interest cost 2,796 3,207
Participant contributions 1,029 1,142
Actuarial gains/losses – 6,395 – 1,669
Exchange rate changes – 1,331 5,555
Benefi ts paid – 2,986 – 2,127
Past service cost 446 33
Plan reductions – 843 0
Plan settlements – 2,558 – 164
Present value of defi ned benefi t obligation
as of December 31 75,336 86,450
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27. Long-term and short-term interest-bearing financial liabilities
The breakdown of fi nancial liabilities is shown in the table below.
Other fi nancial liabilities included loan liabilities totaling eur 5,245
thousand as of December 31, 2008 (2007: eur 3,592 thousand), of
which eur 4,631 thousand (2007: eur 2,766 thousand) concerned
related parties.
In addition, other fi nancial liabilities comprise purchase price
liabilities which depend on future events (put options and bonds)
for the acquisition of participations amounting to eur 67,613
thousand (2007: eur 70,185 thousand).
As of December 31, 2008, the weighted average interest rate for
the amounts due to banks was 3.49% after interest rate hedging
(2007: 4.51%).
The fi nancial liabilities become due in the next fi ve years and
thereafter, as shown in the table below.
As of December 31, 2008, the GfK Group had confi rmed loans and
credit lines of eur 501,264 thousand (2007: eur 553,332 thousand),
of which eur 111,880 thousand (2007: eur 165,265 thousand) have
not been used. The weighted average rate of interest on the loans
and credit lines is 3.51% (2007: 5.35%) before interest rate hedging.
Notes to the consolidated balance sheet
Other long-term provisions
The movement in other long-term provisions in the period under
review is shown in the table below.
Personnel provisions comprise mainly commitments relating to
employees leaving and from provisions for anniversary expenses
based on contractual agreements. In addition, they comprise
provisions for the Long Term Incentive Plan of eur 3,376 thousand
(2007: eur 4,421 thousand).
The provision for potential contractual losses relates essentially
to a long-term lease agreement at non-standard terms. The
agreement has been in place since 2002 at a company of the
former nop World. The remaining term is eight years. The agreed
rent has been compared with the current and estimated future
market rates and the amount in excess has been recognized in
the provisions. As this is an interest-free commitment, the present
value has been used. The discount was calculated at an interest
rate of 7%. The nominal amount of the commitment as of the
reporting date was eur 6,513 thousand (usd 9,054 thousand).
In the year under review, a write-up on this discounted provision
amounting to eur 312 thousand was applied.
Personnel
Potential
contractual
losses Sundry Total
As of January 1, 2008 10,974 4,807 3,107 18,888
Currency effects – 50 212 – 20 142
Change in scope of
consolidation 87 0 0 87
Write-ups to discounted
provisions 0 312 0 312
Additions 3,463 0 67 3,530
Utilization – 879 0 – 39 – 918
Release – 651 0 – 2,346 – 2,997
Reclassifi cations to
short-term provisions – 3,050 – 961 40 – 3,971
As of December 31, 2008 9,894 4,370 809 15,073
31.12.2007 31.12.2008
Amounts due to banks 387,261 389,384
of which with a remaining term
of less than one year 93,083 103,374
of which with a remaining term
of between one and fi ve years 294,178 286,010
of which with a remaining term
of over fi ve years 0 0
Liabilities under fi nance leases 13,618 14,343
of which with a remaining term
of less than one year 2,184 2,799
of which with a remaining term
of between one and fi ve years 11,217 11,544
of which with a remaining term
of over fi ve years 217 0
Other fi nancial liabilities 75,808 73,911
of which with a remaining term
of less than one year 63,536 58,265
of which with a remaining term
of between one and fi ve years 11,639 14,004
of which with a remaining term
of over fi ve years 633 1,642
Financial liabilities 476,687 477,638
of which with a remaining term
of less than one year 158,803 164,438
of which with a remaining term
of between one and fi ve years 317,034 311,558
of which with a remaining term
of over fi ve years 850 1,642
Due date 31.12.2007 31.12.2008
Within one year1) 158,803 164,438
One to two years 96,384 60,155
Two to three years 55,747 54,616
Three to four years 158,420 195,766
Four to fi ve years 6,483 1,021
More than fi ve years 850 1,642
Financial liabilities 476,687 477,638
1) Includes current account liabilities payable on demand in the context of credit lines
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Collateral of eur 113 thousand (2007: eur 2,704 thousand) is
in place for amounts due to banks and liabilities under leases
of eur 403,727 thousand (2007: eur 400,880 thousand). The
collateral breakdown is shown in the following table.
The GfK Group has undertaken to meet certain covenants as part
of a syndicated credit facility and the issue of a borrower’s note
loan. The ratio of net indebtedness in relation to modifi ed ebitda,
which is established on the basis of specifi c criteria, must be lower
than 3.25. The ratio of modifi ed ebitda to interest expenses must
be higher than 4.0. In the event of these covenants being breached,
the credit margin of the banks providing the fi nance increases
and a new agreement on the covenants to be met in future must
be concluded with the creditors. Both covenants were met by the
GfK Group as of December 31, 2008.
The GfK Group only concludes fi nancing transactions with
renowned German and foreign banks. The default risk is further
reduced by spreading the transactions across several banks.
Despite the fi nancial crisis, GfK se succeeded in issuing a
borrower’s note loan worth eur 50 million at the end of 2008,
thereby expanding the investor base.
28. Other long-term liabilities and deferred items
Other long-term liabilities and deferred items of eur 5,296 thousand
(2007: eur 14,275 thousand) include long-term liabilities under
leases of eur 1,495 thousand (2007: eur 672 thousand), long-term
liabilities due to pension funds, long-term liabilities from share and
asset deals and long-term liabilities stated as part of purchase price
allocation.
29. Short-term provisions
The movement in short-term provisions in the year under review is
shown in the table below.
30. Other short-term liabilities and deferred items including liabilities held for sale
The breakdown of other short-term liabilities and deferred items is
shown in the table below.
Short-term liabilities to employees mainly comprise liabilities for
the payment of bonuses (eur 23,855 thousand) and holiday and
fl exitime claims (eur 13,646 thousand), liabilities arising from
social security (eur 9,464 thousand) and liabilities from wages
and salaries (eur 5,571 thousand).
Other liabilities from operating business mainly comprise amounts
owed to households and respondents (eur 5,749 thousand), inter-
viewers (eur 4,465 thousand) as well as to customers (eur 3,784
thousand).
Liabilities from non-operating business mainly include liabilities
under leases (eur 2,980 thousand) as well as liabilities for external
year-end closing costs and legal and consultancy costs (eur 2,545
thousand).
The other short-term liabilities mainly comprise repayment
obligations and short-term liabilities in connection with derivatives
as well as short-term liabilities under share and asset deals.
As of December 31, 2008, no liabilities were held for sale. Further
explanations are provided in section 33.
31.12.2007 31.12.2008
Accounts payable to employees 58,929 59,402
Liabilities from other taxes 23,159 23,672
Other operating liabilities 18,779 18,566
Non-operating liabilities 7,809 7,981
Interest owed 5,353 2,117
Liabilities to related parties 5,311 2,501
Liabilities held for sale 1,175 0
Sundry liabilities 4,674 7,277
Other short-term liabilities and deferred items
including liabilities held for sale 125,189 121,516
31.12.2007 31.12.2008
Amounts due to banks secured by mortgage 2,588 0
Liabilities under leases secured by transfer of
movable assets 116 113
Secured liabilities 2,704 113
Per-
sonnel
Potential
contractual
losses
Authori-
ties and
insurance
companies Sales Sundry Total
As of
January 1,
2008 2,839 1,148 1,519 755 1,462 7,723
Currency
effects – 119 58 – 52 21 27 – 65
Change in
scope of
consolidation 18 0 0 0 0 18
Additions 729 426 1,119 619 193 3,086
Utilization – 753 – 982 – 1,015 – 493 – 638 – 3,881
Release – 943 0 – 115 – 40 – 495 – 1,593
Reclassifi -
cations from
long-term
provisions 3,050 961 – 40 0 0 3,971
As of
December 31,
2008 4,821 1,611 1,416 862 549 9,259
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31. Sensitivity analysis
Exchange rate risks can arise in the GfK Group from transactions
conducted in a currency other than the respective functional
currency. The main currencies are shown in thousand euros in the
table below.
The exchange rates of the most important currencies to the euro
are shown in section 3, Accounting policies.
The sensitivity analysis approximately quantifi es the risk that can
arise under certain assumed conditions if specifi c parameters
change. The table below shows how equity and net income are
affected by a simultaneous parallel appreciation of all foreign
currencies of 10% against the euro while all other factors remain
constant.
Interest rate risks can arise for variable rate fi nancial instruments
and for fi xed-income fi nancial instruments not measured at
amortized cost.
Changes in the market value of fi xed-income fi nancial assets and
liabilities are not recognized in the income statement; moreover,
there are no interest rate derivatives which are allocated to fi xed-
income instruments as fair value hedges in accordance with ias 39
and reported in fair value hedge accounting. A change in interest
rates on the reporting date, therefore, has no impact on the income
statement or the equity as these items are measured at amortized
cost.
The effects before tax on the equity and income statement of a
change in interest rates for variable rate fi nancial instruments of
100 basis points on the reporting date are shown in the table
below. This analysis assumes that all other variables, especially
exchange rates, remain constant.
The column headed “equity” only shows the impact of changes that
are recognized directly in equity. Changes which would impact on the
income statement are not shown in the column with the fi gures for
equity.
32. Notes to the consolidated cash flow statement
The cash fl ow statement is presented at the front of the Notes.
It shows the changes in the GfK Group balance sheet item,
cash and cash equivalents, during the year under review. In
accordance with ias 7, a distinction is made between cash
fl ows from operating activity and from investing and fi nancing
activity. The funding sources covered in the cash fl ow statement
comprise cash and cash equivalents. They encompass cash in
hand, checks, cash equivalents and fi xed-term deposits where
they are available within three months.
The cash fl ow from operating activity amounted to eur 145,836
thousand (2007: eur 168,129 thousand). It covered investments
in full, which totaled eur 101,484 thousand (2007: eur 73,700
thousand). Of this, eur 50,483 thousand (2007: eur 49,249
thousand) related to capital expenditure. The disbursements for
Supplement disclosures
31.12.2008 EUR USD GBP CHF SGD JPY
Loans 946 297,789 55,021 4,974 595 0
Trade receivables 11,093 4,261 125 289 623 92
Cash and cash
equivalents 1,717 338 23 2 0 19
Interest-bearing
fi nancial liabilities 650 247,463 5,302 8,777 0 4,365
Trade payables 3,289 3,899 1,009 6,968 297 279
Liabilities
from orders in
progress 1,272 2,022 7 0 82 12
31.12.2007 31.12.2008
Equity
Income
statement
Overall
impact Equity
Income
statement
Overall
impact
EUR 0 – 617 – 617 0 – 941 – 941
USD 7,2781) – 4,3401) 2,938 9,072 – 4,172 4,900
GBP 9,3041) – 3,1301) 6,174 5,309 – 424 4,885
CHF 0 – 86 – 86 0 – 1,048 – 1,048
SGD 0 – 115 – 115 0 84 84
JPY 0 – 187 – 187 0 – 455 – 455
Total 16,582 – 8,475 8,107 14,381 – 6,956 7,425
1) Figures for the prior year adjusted for partially inappropriate allocation
31.12.2007
Equity
Income
statement
Interest rate change
in percentage points + 1 – 1 + 1 – 1
Variable rate
instruments 0 0 – 3,783 3,783
Interest rate swaps 3,409 – 3,088 2,936 – 2,822
Cash fl ow
sensitivity 3,409 – 3,088 – 847 961
31.12.2008
Equity
Income
statement
Interest rate change
in percentage points + 1 – 1 + 1 – 1
Variable rate
instruments 0 0 – 3,792 3,792
Interest rate swaps 1,528 – 1,558 2,047 – 2,047
Cash fl ow
sensitivity 1,528 – 1,558 – 1,745 1, 745
31.12.2007 EUR USD GBP CHF SGD JPY
Loans 945 354,618 93,466 18 0 0
Trade receivables 11,514 3,653 148 0 5 52
Cash and cash
equivalents 1,202 314 2 0 0 5
Interest-bearing
fi nancial liabilities 650 323,370 29,365 0 998 1,837
Trade payables 4,972 3,289 2,494 880 99 76
Liabilities
from orders in
progress 1,255 2,546 14 0 53 17
GfK_127
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the acquisition of consolidated companies and other business
units amounted to eur 48,980 thousand (2007: eur 22,836
thousand), while the total cash purchase prices stood at
eur 19,615 thousand according to the section on the scope of
consolidation and major acquisitions. The difference is mainly
attributable to additional acquisitions in already consolidated
companies and subsequent purchase price payments for parti-
cipations acquired in previous years.
In addition, cash fl ow from operating activity was partly used
for loan repayments (eur 114,090 thousand; 2007: eur 125,978
thousand). At the same time, new loans totaling eur 108,569
thousand (2007: eur 51,820 thousand) were raised. In net terms,
the cash fl ow from fi nancing activity resulted in a negative fi gure
(eur –56,749 thousand; 2007: –112,901 thousand). In the year
under review, interest paid amounted to eur 33,579 thousand
(2007: eur 28,126 thousand). The cash infl ow from interest
totaled eur 10,332 thousand (2007: eur 5,620 thousand). The
interest paid as well as the interest received comprises payments
in connection with derivative interest hedging contracts.
Dividends totaling eur 19,059 thousand (2007: eur 19,239
thousand) were paid to shareholders of GfK se and minority
shareholders in subsidiaries. The cash and cash equivalents
reported in the balance sheet fell by eur 1,076 thousand
(2007: eur –10,116 thousand).
Income tax payments resulted overall in a cash outfl ow of
eur 35,955 thousand (2007: eur 33,188 thousand) in fi nancial
year 2008. The previous year’s fi gure was impacted positively
by various special factors.
Funds acquired through the purchase of subsidiaries amounted
to eur 1,841 thousand (2007: eur 2,573 thousand).
33. Disposal groups
The GfK Group was planning to sell its holdings in GfK Animal
Healthcare Limited, West Byfl eet/Surrey, uk, and m2a s.a.,
Saint Aubin, France at the beginning of 2008. All assets of the
two companies were reported separately on the balance sheet
as of December 31, 2007, in the line item “assets held for sale”
(eur 9,530 thousand). The liabilities of the operations being sold
were reported under liabilities held for sale (eur 1,175 thousand).
The planned sale was implemented on July 1, 2008 through
exchanging the participations in the above-mentioned companies
in return for a minority holding in the DmrKynetec Group Limited,
St Peter Port, Guernsey, uk. The subsidiaries were deconsolidated.
34. Related parties
Related parties are persons or groups, which could be infl uenced
by the GfK Group or could have an infl uence on the GfK Group.
In the year under review, the following major transactions were
carried out involving related parties:
Liabilities relating to as yet unpaid profi t shares of eur 1,191
thousand (2007: eur 936 thousand) arose vis-à-vis The npd Group
Inc., Port Washington, New York, usa.
Dividend liabilities no longer exist vis-à-vis Emer Marketing
Research s.a., Valencia, Spain, the minority shareholder in
GfK Marketing Services España, s.a., Valencia, Spain (2007:
eur 1,710 thousand ). The liabilities due to the former share-
holders of Beijing Sino Market Research Co., Ltd., Beijing, China,
mainly comprised purchase price obligations of eur 437 thousand
(2007: eur 9,884 thousand ).
There were mainly loan obligations amounting to eur 1,900
thousand (2007: eur 665 thousand) due to GfK-nürnberg,
Gesellschaft für Konsum-, Markt- und Absatzforschung e.V., Berlin,
the majority shareholder of GfK se. The corresponding interest
expenses stood at eur 141 thousand (2007: eur 217 thousand).
Provisions in connection with the 5 Star Long Term Incentive Plan
(eur 5,250 thousand; 2007: eur 4,451 thousand) represent a
commitment to selected managers of the GfK Group. Of this,
eur 3,376 thousand (2007: eur 4,421 thousand) had a remaining
term of more than one year.
Unless stated otherwise, amounts owed to and by related parties
mainly have a remaining term of less than one year.
Material receivables, liabilities, income and expenses with non-
consolidated affi liated companies, associated companies and other
participations of the GfK Group are specifi ed in the Notes under the
respective items.
35. Contingent liabilities and other financial commitments
The contingent liabilities and other fi nancial commitments that
are not carried as liabilities in the consolidated balance sheet are
reported at nominal values and break down as shown in the
following table.
Of these commitments, eur 8,166 thousand (2007: eur 4,033
thousand) had a remaining term of less than one year.
In addition, there are the following contingent liabilities and
fi nancial commitments:
bwv Holding ag, St. Gallen, Switzerland, sold holdings in two Swiss
and one Austrian joint stock company with agreement dated July
28, 2004. GfK se has assumed a purchase price payment obligation
of up to eur 5,745 thousand (chf 8,500 thousand) to cover claims
by the purchaser arising from contractual infringements. From July
28, 2009, the guarantee drops to eur 5,069 thousand (chf 7,500
thousand) and ends as of December 31, 2014.
Following the acquisition of the nop World Group in 2005, the
GfK Group was restructured in part and sub-groups and inter-
mediate holding companies were set up. GfK se has issued a
conditional declaration to three of the managing directors of
the holding companies, which releases them from any future
claims that may be made by third parties in connection with their
positions as managing directors of these companies.
It is possible that subsequent tax payments may be necessary
following future tax audits at GfK Group companies. This also
applies in terms of possible liabilities due to social security
agencies. The occurrence and amount of such future liabilities
cannot be estimated.
Future commitments arising from lease agreements are described
in section 17, Tangible assets, in the sub-heading “Leasing”.
31.12.2007 31.12.2008
Commitments arising from
maintenance, service and license agreements 6,327 6,996
guarantees and sureties 2,406 4,656
order commitments 2,370 2,658
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36. Financial instruments and derivatives
The default risk linked to the positive fair values of the derivatives
is estimated to be low, as transactions are only concluded with
renowned German and foreign banks. Furthermore, the default risk
is reduced by spreading the transactions across several banks.
The maximum default risk of the GfK Group amounts essentially to
the carrying value of all fi nancial assets. The global activities of the
GfK Group and the large number of customers, which include many
established major companies, reduce the concentration of the default
risk.
The carrying values of the derivative fi nancial instruments of the
GfK Group are shown in the table below.
The carrying values of all fi nancial instruments approximately
correspond to the fair values.
The derivative fi nancial instruments are valued on a marking-to-
market basis, in accordance with the market conditions as of the
reporting date. In addition, the Group’s own calculations are
checked for plausibility on the basis of the market assessments
provided by the banks.
As of December 31, 2008, the GfK Group had currency hedging
contracts relating to the Australian dollar, us dollar, Singapore
dollar, Swedish krona, Norwegian krone, Japanese yen, pound
sterling, Swiss franc, Polish zloty and the Czech koruna. The
nominal volume of the currency hedging contracts totaled
eur 24,833 thousand (2007: eur 20,874 thousand), whereby
all contracts had a remaining term of less than one year.
In addition, as of the reporting date, the GfK Group had com-
bined interest rate and currency swaps with a nominal value
of eur 8,555 thousand (2007: eur 6,634 thousand). Of these,
eur 4,541 thousand (2007: eur 5,130 thousand) had a remaining
term of more than one year. The fair value as of the reporting
date amounted to eur 815 thousand (2007: eur 302 thousand).
The GfK Group also holds an amortizing interest rate cap with
a nominal volume of eur 11,078 thousand (2007: eur 17,235
thousand) and a fair value as of the reporting date of eur 0
thousand. eur 4,028 thousand of the nominal volume had a
remaining term of more than one year.
As of the year-end, the GfK Group also held interest rate hedging
contracts of a total nominal amount of eur 212,435 thousand
(2007: eur 282,215 thousand) and a positive fair value of eur 85
thousand (2007: eur 7,428 thousand). As a result, an interest rate
of between 2.6% and 2.7% was secured for loans in euros. The
interest rate secured for loans in us dollars is 3.7% or 4.1%
(all fi gures before credit margin). Of this, interest rate swaps with
a nominal volume of eur 212,435 thousand (2007: eur 281,990
thousand) are classifi ed as cash fl ow hedges.
Segment reporting
The total interest rate swaps mature in the next fi ve years as shown
in the table below.
In the case of derivatives used as part of cash fl ow hedges, changes
in fair values are reported in the income and expenses recognized
directly in equity. For the year under review, the amount posted
under income and expenses recognized directly in equity amounted
to eur –7,224 thousand before tax (2007: eur –3,206 thousand)
and eur – 4,951 thousand after tax (2007: eur –2,197 thousand).
During the year under review, there was also a reduction totaling
eur 157 thousand after tax (2007: eur 761 thousand including the
change in the tax rate in Germany).
The GfK Group used net investment hedges to hedge net invest-
ments in foreign subsidiaries. In the year under review, effective
changes in the value of a loan in us dollars, which was concluded
as part of the acquisition of the former nop World, as well as
existing us dollar loans for the fi nancing of GfK arbor, llc, Media,
Pennsylvania, usa, and GfK v2, llc, Blue Bell, Pennsylvania, usa,
amounting to eur –4,717 thousand before tax (2007: eur 12,869
thousand) and eur –3,233 thousand after tax (2007: eur 10,041
thousand), were recognized directly in equity.
Gains and losses from derivative fi nancial instruments are posted
in other fi nancial income or expenses respectively. The income
from fi nancial instruments contained in this fi gure, which was
not reported as part of hedge accounting, amounted to a total of
eur 8,776 thousand (2007: eur 1,063 thousand), while expenses
amounted to eur 8,822 thousand (2007: eur 743 thousand).
37. Segment reporting
In November 2006, the International Accounting Standards Board
(iasb) adopted ifrs 8 “Operating Segments”. ifrs 8 replaces ias 14
“Segment Reporting” and must be applied to reporting periods which
commence on or after January 1, 2009. However, earlier application
is permissible. The GfK Group opted for early application of ifrs 8,
starting from fi nancial year 2008. In accordance with ifrs 8, external
segment reporting is based on the Group’s internal organizational and
management structure as well as internal fi nancial reporting to the
chief operating decision makers. At the GfK Group, the Management
Board is responsible for the valuation and management of business
performance in the operating sectors and is considered to be the top
management body in accordance with ifrs 8. The comparative sector
information for the previous year has been adjusted and reported
accordingly, in line with the requirements specifi ed in ifrs 8.
At the beginning of the year, the GfK Group remodeled its organi-
zational structure from the previous fi ve business divisions of
Custom Research, Retail and Technology, Consumer Tracking,
Media and HealthCare to focus on three sectors, Custom Research,
Retail and Technology and Media, supplemented by Other. The
31.12.2007 31.12.2008
Assets
Currency hedging contracts including
cross currency swaps 339 1,258
Interest rate hedging contracts 7,428 1,006
Liabilities
Currency hedging contracts 98 379
Interest rate hedging contracts 0 921
Maturity 31.12.2007 31.12.2008
Less than one year 71,417 72,125
Between one and two years 71,055 140,310
Between two and three years 139,743 0
Between three and four years 0 0
Between four and fi ve years 0 0
Nominal volume of interest rate swaps 282,215 212,435
GfK_129
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segmentation of the GfK Group into sectors is based on the origin
of market research data. Internal reporting to the chief operating
decision makers has been adjusted accordingly.
In the Custom Research sector, the GfK Group provides information
and consultancy services that support operating and strategic
marketing decisions. Custom Research offers a wide range of tests
and surveys, in particular relating to product and pricing policy,
brand management, communications, distribution and customer
loyalty. Consequently, GfK provides support for products and
services from the initial idea to the fi nal development stages of the
product life cycle. The sector’s portfolio comprises syndicated
data, for example from household and doctor panels, as well as
exclusive ad hoc surveys that are tailored to individual require-
ments. Consumers and physicians represent the data sources for
the Custom Research sector.
In the Retail and Technology sector, data is collected from retail.
Clients are provided with information and consultancy services,
which are based on regular surveys and analysis of sales of
consumer goods and services in retail. Services comprise regularly
published surveys on offi ce communications, photographic tech-
nology and the optical segment, domestic appliances, information
technology, telecommunications, sports equipment, tourism and
consumer electronics as well as entertainment media.
The Media sector provides information services on reach, intensity
and how media and media offerings are used as well as on their
acceptance. The services are aimed at clients from media compa-
nies, agencies and the branded goods industry. The sector makes
available regular as well as special, one-off surveys and analysis.
The source of information for the Media sector encompasses tv,
radio, print, outdoor advertising and online media.
The sectors are complemented by Other, which comprises, in
particular, the head offi ce services of GfK for its subsidiaries and
non market research related services. The division primarily
combines some departments of GfK Switzerland ag, Hergiswil,
Switzerland, and the following GfK se divisions: GfK Data Services,
GfK Methoden- und Produktentwicklung (method and product
development) and certain departments within GfK Group Services.
The Group measures the success of its sectors by reference to the
adjusted operating income according to internal reporting. The
adjusted operating income of a sector is determined on the basis
of the operating income before interest and taxes, by deducting
the following expense and income items: expenses and income in
connection with reorganisation and business combinations, write-
ups/write-downs on additional assets identifi ed on acquisitions,
personnel expenses from share-based payment and long-term
incentives, other operating income and other operating expenses.
Segment reporting on the sectors includes no information about
segment assets and investments, since these are not calculated for
the individual sectors for the purposes of internal reporting and
internal management and are not reported to the Management Board.
Income from third parties comprise sales established in accordance
with ifrs. Income from other sectors is only generated by the Other
division and excluded in the reconciliation account for consolidated
sales. In principle, intra-Group transactions are recorded at the same
conditions as for third parties. Scheduled amortization (excluding
impairments) comprise depreciation and amortization on tangible and
intangible assets respectively in accordance with ifrs, excluding
write-downs on additional assets identifi ed on acquisitions.
Segment information about the sectors for fi nancial years 2007 and
2008 is shown in the table below.
Income from third parties Inter-sector income
Scheduled depreciation/
amortization
Adjusted
operating income
2007 2008 2007 2008 2007 2008 2007 2008
Custom Research 773,007 782,754 0 0 19,047 19,645 66,167 56,072
Retail and Technology 260,803 304,052 0 0 6,279 8,109 67,276 82,599
Media 124,497 130,143 0 0 3,799 5,612 25,684 23,766
Other 3,748 3,484 53,960 55,105 351 343 – 1,506 – 3,690
Reconciliation 0 0 – 53,960 – 55,105 0 0 0 0
Group 1,162,055 1,220,433 0 0 29,476 33,709 157,621 158,747
The reconciliation of scheduled depreciation/amortization to the
additions stated under (scheduled) depreciation/amortization for
tangible and intangible assets in the consolidated schedule of
movement in assets is as follows:
With regard to the reconciliation of adjusted operating income to
operating income, reference is made to section 11 of the Notes.
Information about geographical regions comprises details about
the regions in which the GfK Group operates. These are Germany,
Western Europe/Middle East/Africa, Central and Eastern Europe,
North America, Latin America and Asia and the Pacifi c.
The regions Western Europe/Middle East/Africa and Central and
Eastern Europe comprise all the countries in the European Union
with the exception of Germany, as well as other European countries
where the GfK Group is represented. In addition, Egypt, Nigeria,
South Africa, the United Arab Emirates and Israel are allocated to
the segment Western Europe/Middle East/Africa. The segment
North America includes the United States of America and Canada.
Brazil, Chile, Venezuela, Argentina and Mexico are allocated to the
segment Latin America. Asia and the Pacifi c includes subsidiaries
in the countries Hong Kong, Japan, Thailand, Singapore, Malaysia,
Indonesia, South Korea, China, India and Australia.
Segment information about geographical regions is based on
fi nancial information, which is used to prepare the consolidated
fi nancial statements. In accordance with ifrs 8, the non-current
assets to be stated do not comprise fi nancial instruments, deferred
tax assets, services after termination of employment and rights
arising from insurance policies.
2007 2008
Scheduled depreciation/amotization 29,476 33,709
Amortization on additional assets identifi ed on
acquisitions 14,701 14,355
Depreciation/amotization in consolidated schedules
of movement in assets (see sections 16 and 17) 44,177 48,064
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The information about the regions for fi nancial years 2007 and
2008 is shown in the table below. Income from third parties has
been allocated to the individual regions according to where the
relevant subsidiary’s head offi ce is located. Non-current assets
also include shares in associated companies.
Supplementary disclosures
The reconciliation of non-current assets to the consolidated
balance sheet is as follows:
The division of income from third parties according to groups of
comparable services corresponds to the above segment information
for the Custom Research, Retail and Technology and Media sectors.
As in the previous year, none of the sectors recorded income from
third parties in excess of 10% of consolidated sales with a single
client in the year under review.
38. Pro forma statements in accordance with ifrs 3
As a result of company acquisitions, the previous year’s fi gures are
not unreservedly comparable with the fi gures in the consolidated
fi nancial statements as of December 31, 2008. The following pro
forma statement in accordance with ifrs 3 is aimed at facilitating
comparability.
The pro forma statement in the table below shows the sales and
consolidated total income for 2008 under the assumption that all
major acquisitions in affi liated companies, which took place in the
fi nancial year, had already taken place on January 1, 2008. The
following transactions are taken into account in the pro forma
statement:
First-time consolidation of Bilesim Internasyonal Arastirma
Organizasyon Danismanlik ve Ticaret a.s., Istanbul, Turkey
First-time consolidation of Shopping Brasil Tecnologia da
Informação Ltda, Porto Alegre, Brazil
First-time consolidation of The Arbor Strategy Group, Inc,
Ann Arbor, Michigan, usa
First-time consolidation of Chart Track Limited, London, uk.
Income from third
parties
Non-current
assets
2007 2008 2007 2008
Germany 290,371 316,053 134,903 157,587
Western Europe/
Middle East/Africa 480,438 487,257 501,516 463,991
Central and
Eastern Europe 73,068 87,190 17,800 18,700
North America 240,678 219,706 322,871 333,964
Latin America 26,723 35,458 22,279 26,173
Asia and the Pacifi c 50,777 74,769 36,117 47,951
Group 1,162,055 1,220,433 1,035,486 1,048,366
39. Pending litigation and claims for compensation
At the end of January 2008, agreement was reached with the seller
of the former nop World companies regarding the amount which
will settle all disputed claims of the seller. The amount actually
agreed essentially confi rms the Management Board’s assessment
as of December 31, 2007.
No material disputes involving GfK se or one of its subsidiaries
were pending as of December 31, 2008.
40. Events after the balance sheet date
As of January 1, 2009, GfK acquired a 51% stake in market
researchers Etilize Inc. in the usa. Etilize will strengthen the
Group’s Encodex business, which is rooted in the Retail and
Technology sector. In February 2009, GfK acquired the majority
of the shares in the DmrKynetec Group, whose Custom Research
activities are mainly based in the uk and usa. In early March 2009,
GfK acquired the remaining 24% stake in the global ifr Group
from the minority shareholder. Previously, GfK’s shareholding
amounted to around 76%.
The transformation to change the form of the former GfK Aktien-
gesellschaft to a European company (Societas Europaea, se) was
entered in the commercial register on February 2, 2009.
At the beginning of March 2009, GfK se obtained a commitment
from a bank for a bridging loan facility worth eur 50 million in
connection with the placement of a further loan note.
There were no further events materially affecting the GfK Group
after the reporting date.
41. Amendments to ifrs standards and interpretations
First-time application of standards or interpretations
ifrs 8 (Operating Segments) changes segment reporting from
the risk and reward approach relating to segment identifi cation
under ias 14 to the management approach. Under this approach,
the decisive information is that regularly made available to the
chief operating decision maker for decision-making purposes.
At the same time, valuation of the segments is switched from the
fi nancial accounting approach under ias 14 to the management
approach. ifrs 8 was published in November 2006 and adopted
by the European Union in November 2007. Application of the
standard is mandatory for fi nancial years commencing on or after
January 1, 2009. Earlier application is permissible. The GfK Group
has applied ifrs 8 as of January 1, 2008. The relevant effects are
described in section 37.
ifric 11 (ifrs 2 – Group and Treasury Share Transactions), which
was published by the iasb in November 2006, deals with the issue
of how group share-based remuneration should be reported,
which are the effects of staff changes within a group and how
share-based payments should be treated when the company
issues its own shares or needs to acquire shares from a third
party. ifric 11 was adopted by the European Union in June 2007
and its application is mandatory for fi nancial years starting on or
after March 1, 2007. ifric 11 will have no material impact on the
consolidated fi nancial statements of the GfK Group.
2007 2008
Non-current assets 1,035,486 1,048,366
Other fi nancial assets 8,542 6,614
Deferred tax assets 44,255 30,048
Non-current assets according to the consolidated
balance sheet 1,088,283 1,085,028
2008 Difference
Actual Pro forma Absolute %
Sales 1,220,433 1,224,361 3,928 0.3
Consolidated total income 82,022 81,634 – 388 – 0.5
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ifric 14 (ias 19 The Limit on a Defi ned Benefi t Asset, Minimum
Funding Requirements and their Interaction), which was
published by the iasb in July 2007, provides an indication of how
the limit is to be set on net income which can be stated as an
asset. In addition, it explains the effects on valuation of assets
and provisions under defi ned benefi t plans on the basis of the
legal obligation to make a minimum contribution. The inter-
pretation was adopted by the European Union in December 2008
and its application is mandatory for fi nancial years commencing
on or after January 1, 2008. ifric 14 has no material impact on
the consolidated fi nancial statements of the GfK Group.
The amendments to ias 39 and ifrs 7 (Reclassifi cation of
Financial Instruments), which were published by the iasb in
October 2008, create the option of reclassifying non-derivative
fi nancial instruments from the category of fi nancial assets that
are recognized in income at fair value, provided that they were
not originally allocated to this category as a result of exercising
the fair value option, as well as from the category of fi nancial
assets available for sale. The standard was adopted by the
European Union in October 2008 and its application is mandatory
from July 1, 2008. In the period from July 1, 2008 to October 31,
2008, retrospective change in the accounting treatment in line
with the new regulations is possible. From November 1, 2008,
the regulations apply only for subsequent treatment. The
amendments to ias 39 and ifrs 7 will have no impact on the
GfK Group’s consolidated fi nancial statements.
Standards and interpretations adopted by the eu whose
application is not yet mandatory for fi nancial years starting
on January 1, 2008
As a result of the amendment to ias 23 (Borrowing Costs)
borrowing costs, which can directly be allocated to the acquisition,
construction or manufacturing of a qualifying asset, must be
capitalized. The previously applicable option relating to the
capitalization of borrowing costs has been withdrawn. The
amendment to ias 23 was published in March 2007 and adopted
by the European Union in December 2008. It must be applied
for the fi rst time to borrowing costs for qualifying assets whose
starting date for capitalization is on or after January 1, 2009.
However, earlier application is recommended. The amendments
to ias 23 have no impact on the consolidated fi nancial statements
of the GfK Group.
In January 2008, the iasb published the amendment to ifrs 2
(Share-based Payment: Vesting Conditions and Cancellations).
The amendment clarifi es that exercise conditions are only service
and goal fulfi llment conditions. As a result of the changes in the
defi nition of exercise conditions, non-exercise conditions are now
to be taken into account when measuring the fair value of the
equity instruments granted. The amendment to ifrs 2 was adopted
by the European Union in December 2008. The amendments must
be applied retrospectively to fi nancial years starting on or after
January 1, 2009. Earlier application is permissible. The amend-
ments to ifrs 2 will not result in material effects on the consoli-
dated fi nancial statements of the GfK Group.
ifric 13 (Customer Loyalty Programmes) deals with the treatment
and measurement of customer loyalty programs. According to
the interpretation, any rewards granted as part of customer loyalty
programs must be treated separately from the underlying trans-
action as a future sales transaction. ifric 13 was published in
June 2007 and adopted by the European Union in December 2008.
Application of the interpretation is mandatory for fi nancial years
starting on or after January 1, 2009. Earlier application is recom-
mended. ifric 13 will not result in a material impact on the con-
solidated fi nancial statements of the GfK Group.
The amendments to ias 1 (Presentation of Financial Statements:
A revised Presentation) are intended to make it easier for users
to analyze and compare fi nancial statements. Under this, all non-
equity holder related changes must be shown in one single
statement of comprehensive income or in two separate reporting
components with an income statement fi rst extracted from the
statement of comprehensive income. The corresponding income
tax effect is to be shown for the individual components of other
comprehensive income. The amendments to ias 1 were published
in September 2007 and adopted by the European Union in
December 2008. Application of the new version of ias 1 is
mandatory for fi nancial years starting on or after January 1, 2009.
The GfK Group will adjust the presentation of the income statement
and changes in equity in line with the new regulations of ias 1 from
fi nancial year 2009 onwards.
In February 2008, in a document entitled “Puttable Financial
Instruments and Obligations Arising on Liquidation”, the iasb
published the amendments to ias 32 (Financial Instruments:
Presentation) and ias 1 (Presentation of Financial Statements).
The amendments refer essentially to questions relating to the
demarcation between equity and liabilities. In particular, the
revision now permits, under certain circumstances, the option
of classifying puttable instruments as equity. The amendments
to ias 32 and ias 1 were adopted by the European Union in January
2009. The amendments are to be applied to fi nancial years starting
on or after January 1, 2009. The amendments to ias 32 will have
no material impact on the consolidated fi nancial statements of the
GfK Group.
In a document entitled “Cost of an Investment in a Subsidiary,
Jointly Controlled Entity or Associate”, the iasb published the
amendments to ifrs 1 (First-time Adoption of International
Financial Reporting Standards) and ias 27 (Consolidated and
Separate Financial Statements) in May 2008. The changes enable
companies to determine the cost of acquisition of a participation
either in the amount of the fair value or carrying value in accordance
with the previously applied national accounting standards upon
fi rst-time application of the ifrs in their ifrs company fi nancial
statements. The amendments to ifrs 1 and ias 27 were adopted
by the European Union in January 2009. The changes must be
applied for fi nancial years starting on or after January 1, 2009.
Earlier application is permissible. The amendments to ifrs 1 and
ias 27 will have no impact on the consolidated fi nancial statements
of the GfK Group.
In May 2008, the iasb published the Improvements to ifrss as part
of its fi rst annual improvements project, which change a number
of ifrs standards. The aim is to adjust the wording of individual
ifrss, in order to clarify existing regulations and remove any
inconsistencies between individual standards. The amendments
were adopted by the European Union in January 2009. Unless
regulated separately in the relevant standard, the Improvements
to ifrss, are to be applied to fi nancial years starting on or after
January 1, 2009. Earlier application is permissible. The changes
will have no material impact on the consolidated fi nancial state-
ments of the GfK Group.
132_GfK
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Standards or interpretations resolved by the iasb but not yet
adopted by the eu
Through the publication of the revised version of ifrs 3 (Business
Combinations) and the amendments to ias 27 (Consolidated and
Separate Financial Statements) in January 2008, the iasb completed
the second phase of the Business Combinations project. The main
changes include the accounting treatment of minority interests
and the remeasurement, through profi t or loss, of already existing
shares at the time control was gained for successive company
acquisitions. Changes in the participation quota without loss of
control are to be recorded solely as equity transactions. In future,
acquisition-related incidental costs are to be recognized as expenses.
For possible adjustments to acquisition costs, as a result of future
events which are to be recognized as liabilities at the time of
acquisition, no adjustment to goodwill in subsequent valuation is
possible. The amendments to ifrs 3 and ias 27 must be applied in
fi nancial years commencing on or after July 1, 2009, whereby early
application is permitted. However, early application of one of the
two standards is contingent on the simultaneous early application
of the respective other standard. Adoption by the European Union
is currently outstanding. These amendments result, in particular,
in changes to liabilities from earn-outs and rights of minority share-
holders to make delivery (put options and bonds), which were
previously recognized directly in equity, now being charged to the
income statement of the consolidated fi nancial statements for the
GfK Group. Incidental acquisition costs in connection with business
combinations will also be recognized as expense in future.
In November 2008, the iasb published a revised version of ifrs 1
(First Time Adoption of ifrs), which replaced the existing ifrs 1
and is aimed at clarifying the content of the standard and making
it easier to apply. The changes relate exclusively to the format of
ifrs 1. The standard is to be applied for companies which prepare
fi nancial statements in accordance with ifrs for the fi rst time from
January 1, 2009 onwards. Earlier application is permitted.
Adoption by the European Union is currently outstanding. The
amendments will have no impact on the consolidated fi nancial
statements of the GfK Group.
In November 2006, the iasb published ifric 12 (Service Concession
Arrangements), which addresses accounting for infrastructure
services by private companies. Application of the interpretation is
mandatory for fi nancial years starting on or after January 1, 2008.
Earlier application is permitted. Adoption by the European Union
is currently outstanding. The amendments will have no impact on
the consolidated fi nancial statements of the GfK Group.
In July 2008, the iasb published ifric 15 (Agreements for the
Construction of Real Estate), which focuses on accounting at
companies that develop property and acquire units off-plan in this
capacity, i.e. prior to their completion. The interpretation defi nes
criteria, which specify that income must be recognized according
to either ias 1 or ias 18. Retrospective application of ifric 15 is
mandatory for the fi rst time for fi nancial years starting on or after
January 1, 2009. Earlier application is permitted. Adoption by the
European Union is currently outstanding. The changes will have no
impact on the consolidated fi nancial statements of the GfK Group.
Supplement disclosures
In July 2008, the iasb published ifric 16 (Hedges of a Net Invest-
ment in a Foreign Operation), which clarifi es issues relating to
the accounting of hedges against exchange rate risks within a
company and its international business operations in accordance
with the regulations in ias 21 and ias 39. The fi rst-time application
of ifric 16 is mandatory in fi nancial years starting on or after
October 1, 2008. Earlier application is permitted. Adoption by the
European Union is currently outstanding. The changes will have
no material impact on the consolidated fi nancial statements of the
GfK Group.
In November 2008, the iasb published ifric 17 (Distributions of
Non-cash Assets to Owners). The interpretation regulates how
a company should measure other assets as cash equivalents
(non-cash assets) when such assets are transferred to shareholders
as profi t distribution. Application of ifric 17 is mandatory for
fi nancial years starting on or after July 1, 2009. Earlier application
is permitted. Adoption by the European Union is currently
outstanding. The changes will have no impact on the consolidated
fi nancial statements of the GfK Group.
In January 2009, the iasb published ifric 18 (Transfers of Assets
from Customers), which provides additional hints on accounting for
transfers of assets from customers and which is particularly
relevant to the energy sector. The requirements of ifrs standards
on agreements are clarifi ed, under which a company receives
property, plant or equipment from a customer, which the company
must then use to either connect the customer to a grid or provide
the customer with permanent access to the supply of goods or
services. ifric 18 is to be applied to future transfers of assets from
customers, which are carried out on or after July 1, 2009. Earlier
application is permitted, subject to specifi c conditions. Adoption
by the European Union is currently outstanding. The changes
will have no impact on the consolidated fi nancial statements of
the GfK Group.
In July 2008, iasb published the amendment to ias 39 (Financial
Instruments: Recognition and Measurement: Eligible Hedge
Items). According to the existing regulations, companies may
comprehensively include the risk relating to an underlying
transaction in a hedge, or include specifi c risks only. In order
to simplify application of the unchanged basic principles, the
principles have been supplemented in terms of defi ning infl ation
risks as an underlying transaction and defi ning the unilateral
risk inherent in an underlying transaction. The amendment is to
be applied for fi nancial years starting on or after July 1, 2009.
Earlier application is permissible. Adoption by the European
Union is currently outstanding. The changes will have no material
impact on the consolidated fi nancial statements of the GfK Group.
In November 2008, the iasb published a revised version entitled
“Reclassifi cation of Financial Assets: Effective Date and Transition”
of the amendments to ias 39 (Financial Instruments: Recognition
and Measurements) and ifrs 7 (Financial Instruments: Disclosures)
published on October 13, 2008, which relate to the reclassifi cation
of certain fi nancial instruments. The motivation for these latest
changes is to clarify the date of application. Adoption by the
European Union is currently outstanding. The changes will have
no material impact on the consolidated fi nancial statements of the
GfK Group.
GfK_133
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In March 2009, the iasb published amendments to ifrs 7 (Impro-
ving Disclosures about Financial Instruments – Amendments to
ifrs 7). Information about determining the fair value is specifi ed
to the extent that an overview in table format has been introduced
for each class of fi nancial instruments on the basis of the three-tier
fair value hierarchy, as described in us gaap Standard sfas 157,
and the scope of the disclosure requirement has been expanded.
In addition, the information about liquidity risks is clarifi ed and
extended. The amendments must be applied for fi nancial years
starting on or after January 1, 2009. Earlier application is permit-
ted. Adoption by the European Union is currently outstanding.
The changes result in additional disclosures being provided in the
Notes to the consolidated fi nancial statements of the GfK Group.
42. Supplementary disclosures
Auditors’ service fee
In 2008, the expenses for the fee for the auditors of GfK se
amounted to eur 1,127 thousand (2007: eur 1,120 thousand) and
also included the auditors’ service fee for the fi nancial statements
of the English subsidiaries audited by the auditors of GfK se
and since 2008 also of the Spanish and Swiss subsidiaries. The
fee comprises the auditing of the annual fi nancial statements of
GfK se in accordance with the German Commercial Code (hgb),
the Group reporting package in accordance with ifrs and the
consolidated fi nancial statements in accordance with ifrs. In
addition, the auditors’ service fee includes the audited fi nancial
statements of the German, English, Spanish and Swiss subsidiaries
in accordance with national legislation as well as the ifrs reporting
package.
The cost of tax advice from the auditors in Germany, England,
Spain and Switzerland was eur 514 thousand (2007: eur 413
thousand) and eur 3,779 thousand (2007: eur 86 thousand) for
other services provided by the auditors. Other services related, in
particular, to consultancy in connection with the planned merger
with Taylor Nelson Sofres plc, London, uk, which was not
implemented.
Exemption of subsidiaries from the obligation to prepare
fi nancial statements
Pursuant to Section 264 (3) of the German Commercial Code (hgb),
GfK Retail and Technology GmbH, Nuremberg, and GfK GeoMarketing
GmbH, Bruchsal, are exempt from preparing, having audited and
disclosing annual fi nancial statements and a management report in
accordance with the provisions for joint stock companies pursuant
to Sections 264 ff. hgb.
Number of staff
In the year under review, 9,539 (2007: 8,655) staff were employed
on average. The annual average number of staff was determined
on the basis of full-time employees. The average was calculated
using the key dates of March 31, June 30, September 30 and
December 31.
The allocation of staff to segment is shown in the table below.
Total remuneration and shares of the Management Board and
Supervisory Board
Information about the remuneration of the Management Board and
the Supervisory Board and their shareholdings is shown in the
tables and explanations in the remuneration report on page 14f. of
the Corporate Governance report.
There were no loans and advances to members of the Management
Board and Supervisory Board.
2007 2008
Custom Research 5,387 5,789
Retail and Technology 2,223 2,629
Media 526 564
Other 364 401
8,500 9,383
Managing Directors/Management Board members 93 93
Trainees 62 63
Full-time employees 8,655 9,539
134_GfK
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Dr. Arno Mahlert
Chairman (since September 26, 2008)
Deputy Chairman (until September 26, 2008)
Chairman of the Management Board of maxingvest ag, Hamburg
Seats held on other supervisory boards and comparable
supervisory bodies:
� Tchibo GmbH, Hamburg (Chairman)
� Springer Science + Business Media s.a.,
Luxembourg, Luxembourg (Chairman)
� Saarbrücker Zeitung GmbH,
Saarbrücken (Deputy Chairman)
� Beiersdorf ag, Hamburg (Deputy Chairman)
Hajo Riesenbeck (until September 26, 2008)
Chairman
Stefan Pfander
Deputy Chairman (since September 26, 2008)
Business Consultant
Seats held on other supervisory boards and comparable
supervisory bodies:
� icga, Brussels, Belgium (Chairman)
� Sweet Global Network e.V., Munich
(Deputy Chairman)
� Barry Callebaut ag, Zurich, Switzerland
� Beiersdorf ag, Hamburg
� Tchibo GmbH, Hamburg
Dr. Christoph Achenbach
Managing Director and Partner, Intes Gruppe, Bonn
Seats held on other supervisory boards and comparable
supervisory bodies:
� SinnLeffers GmbH, Hagen
Dr. Wolfgang C. Berndt
Non-Executive Director
Seats held on other supervisory boards and comparable
supervisory bodies:
� Cadbury Schweppes plc, London, uk
� Lloyds tsb Bank plc, London, uk
� Lloyds tsb Group plc, London, uk
� miba ag, Laakirchen, Austria
� miba Beteiligungs ag, Laakirchen, Austria
� Bank of Scotland plc, Edinburgh, Scotland
� hbos plc, Edinburgh, Scotland
Kerstin Döpfert (until February 2, 2009)
Independent Works’ Council representative at GfK se,
Nuremberg
Sandra Hofstetter (until February 2, 2009)
Independent Works’ Council representative at GfK se,
Nuremberg
Supervisory Board
GfK_135
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Supervisory Board
Stephan Lindeman (since February 2, 2009)
Director Retail, Intomart GfK b.v., Hilversum, Netherlands
Shani Orchard (since February 2, 2009)
Director Human Resources, GfK Retail and Technology uk Ltd,
West Byfleet/Surrey, uk
Jürgen Schreiber
ceo and President, Shoppers Drug Mart, Toronto, Canada
Dieter Wilbois
Independent Works’ Council representative (Chairman of the
Works’ Council and Group Works’ Council) at GfK se, Nuremberg
Dr. Raimund Wildner (since January 8, 2009)
Managing Vice-President of GfK-nürnberg Gesellschaft für
Konsum-, Markt- und Absatzforschung e.V., Berlin
Seats held on other supervisory boards and comparable
supervisory bodies:
� cams Center of Applied Marketing Science GmbH, Merseburg
136_GfK
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Professor Dr. Klaus L. Wübbenhorst
Chief Executive Officer (ceo)
Responsible for the GfK Group’s strategy, strategic executive
development, it strategy, contact with executive bodies
and non-operating participations as well as the Research and
Development and Corporate Communications departments
Seats held on supervisory boards and comparable
supervisory bodies:
� bu Holding GmbH & Co. kg, Nuremberg (Chairman)
� ergo Versicherungsgruppe ag, Dusseldorf
Christian Weller von Ahlefeld
Chief Financial Officer (cfo)
Responsible for Financial Services, Human Resources
and Central Services
Seats held on supervisory boards and comparable
supervisory bodies:
� Brauns Heitmann GmbH & Co. kg, Warburg
Petra Heinlein
Chief Operation Officer (coo)
Responsible in the Custom Research sector, for example,
for the segments Financial Services and Consumer and Retail
Dr. Gérard Hermet
Chief Operation Officer (coo)
Responsible for the Retail and Technology sector
Seats held on supervisory boards and comparable
supervisory bodies:
� npd Intelect, l.l.c., New York, New York, usa
Debra A. Pruent
Chief Operation Officer (coo)
Responsible in the Custom Research sector for the segments
Automotive and Business and Technology
Wilhelm R. Wessels
Chief Operation Officer (coo)
Responsible for the Media sector and in the Custom Research
sector for the segments Consumer Tracking and HealthCare
Seats held on supervisory boards and comparable
supervisory bodies:
� Leoni ag, Nuremberg
� TriStyle Mode GmbH & Co. kg, Fürth
� staedtler Stiftung, Nuremberg
� staedtler Noris GmbH, Nuremberg
Management Board
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Declaration on the German Corporate Governance Code
The declaration prescribed by Section 161 of the German Stock
Corporation Act has been issued by the Management Board
and the Supervisory Board and made permanently available to
shareholders.
Release for publication
The Management Board of GfK se released the consolidated
financial statements for passing on to the Supervisory Board
on March 12, 2009. It is the duty of the Supervisory Board
to check the consolidated financial statements and to declare
whether it approves the consolidated financial statements.
Responsibility statement
To the best of our knowledge, and in accordance with the
applicable reporting principles, the consolidated financial state-
ments give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Group, and the management
report of the Group includes a fair review of the development
and performance of the business and the position of the Group,
together with a description of the principal opportunities and
risks associated with the expected development of the Group.
Nuremberg, March 12, 2009
Declaration on the German Corporate Governance Code
Prof. Dr. Klaus L. Wübbenhorst
Christian Weller von Ahlefeld
Petra Heinlein
Dr. Gérard Hermet
Debra A. Pruent
Wilhelm R. Wessels
138_GfK
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Company name and registered offi ce
Share in the capital
in %
Financial
year
Equity
(eur‘000)
Affi liated companies (Germany) included in the consolidated fi nancial
statements (details according to hgb commercial balance sheet i)
encodex International GmbH, Nuremberg 95.00 2008 – 311)
enigma GfK Medien- und Marketingforschung GmbH, Wiesbaden 100.00 2008 6141)
GfK GeoMarketing GmbH, Bruchsal 100.00 2008 5471)
GfK North America Holding GmbH, Nuremberg 100.00 2008 179,4931)
GfK North America Investment GmbH, Nuremberg 100.003) 2008 210,6521)
GfK Retail and Technology GmbH, Nuremberg 95.00 2008 134,8421)
ifr Deutschland GmbH, Düsseldorf 100.003) 2008 – 1,8442)
media control GfK international GmbH, Baden-Baden 70.004) 2008 2,4372)
Media Markt Analysen GmbH & Co. kg, Frankfurt/Main 100.00 2008 232
Modata GmbH, Berlin 100.003) 2008 1662)
Affi liated companies (abroad) included in the consolidated fi nancial statements
(details according to ifrs commercial balance sheet ii)
Adimark Investigaciones de Mercado Ltda., Providencia, Santiago, Chile 99.003) 2008 1,881
Adimark s.a., Providencia, Santiago, Chile 65.90 2008 205
afi Investments ulc, London, uk 100.003) 2008 219
Barterstore ulc, London, uk 100.003) 2008 4,407
Beijing Sino Market Research Co., Ltd., Beijing, China 100.003) 2008 306
Bilesim Internasyonal Arastirma Organizasyon Danismanlik ve Ticaret a.s.,
Istanbul, Turkey 100.003) 2008 246
Chart Track Limited, London, uk 55.003) 2008 185
China Market Monitor Co., Ltd., Beijing, China 100.003) 2008 741
Collect Investigaciones de Mercado s.a., Providencia, Santiago, Chile 100.003) 2008 323
Corporación Empresarial asa sa de cv, Mexico City, Mexico 51.003) 2008 85
Dealtalk Limited, London, uk 100.003) 2008 2,720
Encodex Japan k.k., Osaka, Japan 63.003) 2008 427
GfK - Centar za istrazivanje trzista d.o.o., Zagreb, Croatia 100.003) 2008 680
GfK (u.k.) Ltd., West Byfl eet/Surrey, uk 100.003) 2008 5,145
GfK Arastirma Hizmetleri a.s., Istanbul, Turkey 100.00 2008 3,330
GfK arbor, llc, Media, Pennsylvania, usa 100.003) 2008 41,397
GfK Asia Pte Ltd., Singapore, Singapore 89.503) 2008 11,157
GfK Audimetrie n.v., Brussels, Belgium 100.003) 2008 2,557
GfK Austria GmbH, Vienna, Austria 94.803) 2008 11,527
GfK Automotive, llc, Southfi eld, Michigan, usa 100.003) 2008 30,447
GfK Belgrade d.o.o., Belgrade, Serbia 100.003) 2008 385
GfK bh d.o.o., Sarajevo, Bosnia and Herzegovina 100.00 3) 2008 118
GfK Blue Moon Quantitative Research Pty. Limited, St Leonards, Australia 100.003) 2008 313
GfK Blue Moon Research and Planning Pty. Limited, St Leonards, Australia 100.003) 2008 586
GfK Custom Research Australia Holding Pty. Limited, Sydney, Australia 100.00 2008 1,286
GfK Custom Research Beijing Co., Ltd., Beijing, China 66.00 2008 852
gfk custom research france sarl, Rueil-Malmaison, France 100.00 2008 5,673
GfK Custom Research, llc, New York, New York, usa 100.003) 2008 – 19,750
GfK Danmark a/s, Frederiksberg, Denmark 100.00 2008 632
GfK Daphne Communication Management b.v., Amstelveen, Netherlands 100.003) 2008 – 275
Shareholdings of the GfK GroupAs of December 31, 2008
1) Profit and loss transfer agreement
2) Details according to commercial balance sheet II
3) Full indirect shareholding
4) Partially indirect shareholding
5) Details not available
6) Details as per provisional financial statements
drawn up under national law
7) Newly established in 2008
8) In liquidation
9) Stub period
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gfk emer Ad Hoc Research, s.l., Valencia, Spain 50.10 2008 4,483
GfK Equity Research Inc., Boston, Massachusetts, usa 100.003) 2008 1,153
GfK Eurisko S.r.l., Milan, Italy 100.003) 2008 – 18,656
GfK HealthCare Asia Pte Ltd., Singapore, Singapore 100.00 2008 2,035
GfK Healthcare Holding, Inc., Wilmington, Delaware, usa 100.003) 2008 25
gfk hellas e.p.e., Athens, Greece 99.50 2008 870
gfk holding mexico, s.a. de c.v., Mexico City, Mexico 100.00 2008 707
GfK Holding, Inc., Wilmington, usa 100.003) 2008 169,415
GfK Hungária Piackutató Kft., Budapest, Hungary 100.003) 2008 1,943
GfK Immobilier Société à responsabilité limitée, Rueil-Malmaison, France 100.003) 2008 203
GfK Indicator Ltda., São Paulo, Brazil 95.00 2008 2,196
GfK Kleiman Sygnos s.a., Buenos Aires, Argentina 80.00 2008 320
gfk latinoamerica holding, s.l., Valencia, Spain 51.003) 2008 11
GfK Malta Holding Limited, Portomaso, Malta 100.00 2008 236,571
GfK Malta Services Limited, Portomaso, Malta 100.003) 2008 135,959
GfK Market Consulting (Beijing) Co. Ltd., Beijing, China 99.003) 2008 787
GfK Market Consulting (China) Co. Ltd., Shanghai, China 100.003) 2008 18,946
GfK Marketing Service Chile Limitada, Santiago, Chile 100.003) 2008 335
GfK Marketing Services (Malaysia) Sdn. Bhd., Kuala Lumpur, Malaysia 100.003) 2008 562
GfK Marketing Services (Thailand) Limited, Bangkok, Thailand 100.003) 2008 82
GfK Marketing Services España, s.a., Valencia, Spain 50.103) 2008 11,105
GfK Marketing Services France sas, Rueil-Malmaison, France 100.003) 2008 7,029
GfK Marketing Services Hong Kong Limited, Hong Kong, China 89.503) 2008 174
GfK Marketing Services Indonesia, pt, Jakarta, Indonesia 100.003) 2008 69
GfK Marketing Services Italia S.r.l., Milan, Italy 100.003) 2008 5,869
GfK Marketing Services Japan k.k., Tokyo, Japan 84.203) 2008 7,519
GfK Marketing Services Korea Limited, Seoul, Korea 100.003) 2008 518
GfK Marketing Services Ltd., Hong Kong, China 100.003) 2008 1,609
GfK marketing services ltda., São Paulo, Brazil 95.003) 2008 937
GfK Marketing Services South Africa (Proprietary), Sandton, South Africa 100.003) 2008 204
GfK Mode Pvt Ltd, Kolkata, India 51.003) 2008 1,011
GfK Mystery Shopping Services Ltd., London, uk 100.003) 2008 – 2
GfK nop Field Interviewing Services Limited, London, uk 100.003) 2008 – 11
GfK nop Field Marketing Services Limited, London, uk 100.003) 2008 – 2
GfK nop Limited, London, uk 100.003) 2008 50,289
GfK nop Mystery Shopping Services Limited, London, uk 100.003) 2008 – 3
GfK nop Services Limited, London, uk 100.003) 2008 – 6
GfK nop Telephone Interviewing Services Limited, London, uk 100.003) 2008 – 10
GfK nop u.k. Holding Limited, London, uk 100.003) 2008 29,686
GfK Norge a/s, Oslo, Norway 100.00 2008 506
GfK Optics Japan kk, Tokyo, Japan 100.00 2008 242
GfK Panelservices Benelux b.v., Dongen, Netherlands 100.003) 2008 16,055
GfK Panelservices Benelux Holding b.v., Dongen, Netherlands 100.003) 2008 809
GfK Polonia Sp. z o.o., Warsaw, Poland 100.003) 2008 2,315
GfK portugal – Marketing Services, Limitada, Lisbon, Portugal 80.003) 2008 2,407
GfK Research Dynamics, Inc., Mississauga, Canada 100.00 2008 671
GfK Research Matters ag, Basel, Switzerland 100.00 2008 697
GfK Retail and Technology Benelux b.v., Amstelveen, Netherlands 100.003) 2008 7,007
GfK Retail and Technology uk Ltd., West Byfl eet/Surrey, uk 100.003) 2008 8,979
GfK Retail and Technology, Australia Pty. Ltd., Sydney, Australia 100.003) 2008 3,650
GfK Romania-Institut de Cercetare de Piata Srl, Bucharest, Romania 100.003) 2008 991
Company name and registered offi ce
Share in the capital
in %
Financial
year
Equity
(eur‘000)
1) Profit and loss transfer agreement
2) Details according to commercial balance sheet II
3) Full indirect shareholding
4) Partially indirect shareholding
5) Details not available
6) Details as per provisional financial statements
drawn up under national law
7) Newly established in 2008
8) In liquidation
9) Stub period
140_GfK
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Shareholdings of the GfK Group
GfK Slovakia Inštitút pre prieskum trhu s r.o., Bratislava, Slovakia 100.003) 2008 190
gfk slovenija, tržne raziskave d.o.o., Ljubljana, Slovenia 100.003) 2008 300
GfK Sverige Aktiebolag, Lund, Sweden 100.00 2008 1,472
GfK Switzerland ag, Hergiswil, Switzerland 100.00 2008 34,371
GfK Telecontrol ag, Hergiswil, Switzerland 100.003) 2008 7,126
GfK Trustmark ag, Zollikon, Switzerland 100.003) 2008 169
GfK u.s. Healthcare Companies lp, East Hanover, New Jersey, usa 100.003) 2008 – 509
GfK uk Entertainments Ltd., London, uk 70.007) 2008 – 859)
GfK Ukraine, Kiev, Ukraine 100.003) 2008 845
GfK us Holdings, Inc., Wilmington, Delaware, usa 100.003) 2008 92,626
GfK v2, llc, Blue Bell, Pennsylvania, usa 100.003) 2008 – 839
GfK-Bulgaria, Institut für Marktforschung EGmbH, Sofi a, Bulgaria 100.003) 2008 506
GfK-Memrb Marketing Services fz-llc, Dubai, United Arab Emirates 100.003) 2008 2,198
GfK-memrb Marketing Services Limited, Nicosia, Cyprus 60.003) 2008 372
GfK-Praha, spol s r.o., Prague, Czech Republic 100.003) 2008 1,050
GfK-rus Gesellschaft mbH, Moskow, Russia 100.003) 2008 3,492
ifr Europe Ltd., London, uk 93.013) 2008 1,640
ifr France s.a., Rueil-Malmaison, France 99.973) 2008 844
ifr Italia S.r.L., Milan, Italy 93.013) 2008 222
ifr Marketing España s.a., Madrid, Spain 93.013) 2008 390
ifr Monitoring Canada Inc., Niagara Falls, Canada 100.003) 2008 106
ifr Monitoring usa Inc., Niagara Falls, New York, usa 100.003) 2008 380
incoma Research, s.r.o., Prague, Czech Republic 75.003) 2008 262
Informark Pty. Ltd., Braddon, Australia 100.003) 2008 75
Institut de Sondages Lavialle (isl) s.a., Issy les Moulineaux, France 82.703) 2008 2,323
Institut Français de Recherche-i.f.r. s.a., Rueil-Malmaison, France 75.79 2008 14,129
Interactive Research Limited, London, uk 100.003) 2008 – 589
intercampus-recolha, tratamento e distribuição
de informação, Limitada, Lisbon, Portugal 50.103) 2008 1,204
Intomart GfK b.v., Hilversum, Netherlands 100.003) 2008 12,534
Intomart GfK Group b.v., Hilversum, Netherlands 100.003) 2008 – 2,347
Jan Schipper Compagnie b.v., Bussum, Netherlands 100.003) 2008 289
Mediamark Research & Intelligence, llc, New York, New York, usa 100.003) 2008 17,357
merc Analistas de Mercados s.a. de c.v., Mexico City, Mexico 51.003) 2008 3,771
metris-métodos de recolha e investigação social, lda, Lisbon, Portugal 51.003) 2008 994
mil Research Group Limited, London, uk 100.003) 2008 509
National Opinion Polls Limited, London, uk 100.003) 2008 2,393
nop World Limited, London, uk 100.003) 2008 43,373
Numbers Services Limited, London, uk 100.003) 2008 845
Orange Interactive Research ab, Stockholm, Sweden 100.003) 2008 1,397
Oz Toys Marketing Services Pty. Ltd., Sydney, Australia 51.003) 2008 – 97
Roperasw Europe Limited, Leatherhead/Surrey, uk 100.003) 2008 3,381
Shopping Brasil Tecnologia da Informação Ltda, Porto Alegre, Brazil 51.003) 2008 1,088
Signifi cant GfK bvba, Heverlee, Belgium 100.003) 2008 3,173
Telecontrol Bulgaria – Switzerland ag, Hergiswil, Switzerland 100.003) 2008 – 1,093
The Arbor Strategy Group, Inc., Ann Arbor, Michigan, usa 100.003) 2008 – 442
Affi liated companies (Germany) not included in the consolidated fi nancial statements
(details according to hgb commercial balance sheet i)
dm-plus Direktmarketing GmbH, Nuremberg 100.003), 8) 2008 56
GfK Vierte Vermögensverwaltungs GmbH, Nuremberg 100.00 2008 251)
Company name and registered offi ce
Share in the capital
in %
Financial
year
Equity
(eur‘000)
1) Profit and loss transfer agreement
2) Details according to commercial balance sheet II
3) Full indirect shareholding
4) Partially indirect shareholding
5) Details not available
6) Details as per provisional financial statements
drawn up under national law
7) Newly established in 2008
8) In liquidation
9) Stub period
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GfK Fünfte Vermögensverwaltungs GmbH, Nuremberg 100.00 2008 22
GfK Sechste Vermögensverwaltungs GmbH, Nuremberg 100.007) 2008 239)
GfK Siebte Vermögensverwaltungs GmbH i.Gr., Nuremberg 100.007) 2008 249)
Media Markt Analysen Verwaltungs-GmbH, Frankfurt/Main 100.00 2008 29
mil Handels- und Investitions GmbH, Nuremberg 100.003) 2008 392
Affi liated companies (abroad) not included in the consolidated fi nancial statements
Adfi nders b.v., Hoofddorp, Netherlands 100.003) 2008 – 6546)
bdi Research Limited, London, uk 100.003) 2008 0
bem Limited, London, uk 100.003) 2008 0
bwv Holding ag, St. Gallen, Switzerland 100.003) 2008 – 1,2346)
caticall - recolha de informação assistida por computador, lda., Lisbon, Portugal 100.003) 2008 10
dragon eye Ltd., Hergiswil, Switzerland 100.003) 2008 – 281
Eurisko nopWorld rom s.r.l., Iasi, Romania 100.003) 2008 – 15
GeoAdimark s.a., Providencia, Santiago, Chile 100.003) 2008 93
GfK Albania, Tirana, Albania 100.003), 7) 2008 209)
GfK Audience Research Bulgaria ag, Sofi a, Bulgaria 100.003) 2008 – 6176)
GfK Custom Research Baltic, Riga, Latvia 51.003) 2008 – 3776)
GfK Custom Research Development and Training Center eig , Brussels, Belgium 81.004) 2008 06)
GfK Custom Research Latam Holding, s.l., Valencia, Spain 95.00 2008 23
gfk Egypt ltd, Cairo, Egypt 74.003) 2008 799
GfK Kasachstan too, Almaty, Kazakhstan 100.003) 2008 586)
GfK m2 GmbH, Hergiswil, Switzerland 70.00 2008 – 363
GfK Marketing Services Argentina s.a., Buenos Aires, Argentina 95.103) 2008 252
GfK Marketing Services Baltic sia, Riga, Latvia 100.003) 2008 299
GfK Marketing Services Eastern Europe Holding spol. z o. o., Warsaw, Poland 100.003) 2008 – 86)
GfK Marketing Services Taiwan Ltd, Taipei City, Taiwan, China 100.003), 7) 2008 496), 9)
GfK Marknadsundersökning Sverige ab, Lund, Sweden 100.003) 2008 235
GfK Martin Hamblin Inc., Hartford, Connecticut, usa 100.008) 2008 49
GfK Martin Hamblin Limited, London, uk 100.008) 2008 06)
GfK Mediacontrol Latina s.l., Valencia, Spain 53.457) 2008 279)
GfK memrb Marketing Services Maroc, Casablanca, Morocco 100.003) 2008 63
GfK Retail & Technology Ltd., Ramat Gan, Israel 98.003) 2008 – 743
gfk Skopje ltd Skopje, Skopje, Macedonia 51.003) 2008 191
GfK Stratégie et développement Groupement d‘intérêt Economique,
Rueil-Malmaison, France 100.003) 2008 116
GfK-Media Research Middle East sa, Hergiswil, Switzerland 67.003) 2008 32
GfK-memrb Marketing Services Nigeria Limited, Lagos, Nigeria 100.003), 7) 2008 09)
ifr Asia Co. Ltd., Beijing, China 100.003) 2008 194
ifr Central Europe Market Research llc, Budapest, Hungary 100.003) 2008 170
ifr Field sarl, Rueil-Malmaison, France 100.003) 2008 51
ifr Nederland b.v., Amsterdam, Netherlands 100.003) 2008 56
ifr Polska Sp. z o.o., Warsaw, Poland 100.003) 2008 24
ifr rus Limited, Moskow, Russia 99.003) 2008 5
ifr South America, sa, Buenos Aires, Argentina 51.003) 2008 252
ifr u.k. Ltd., London, uk 93.013) 2008 80
intercampus estudos de mercado, lda, Maputo, Mozambique 80.003) 2008 37
Intomart DataCall b.v., Hilversum, Netherlands 100.003) 2008 – 337
Media Control ag, Zurich, Switzerland 100.003) 2008 186
Media Control Marketing Research España, s.l., Madrid, Spain 100.003) 2008 136
merc Analistas de Mercados c.a., Caracas, Venezuela 100.003) 2008 3936)
Company name and registered offi ce
Share in the capital
in %
Financial
year
Equity
(eur‘000)
1) Profit and loss transfer agreement
2) Details according to commercial balance sheet II
3) Full indirect shareholding
4) Partially indirect shareholding
5) Details not available
6) Details as per provisional financial statements
drawn up under national law
7) Newly established in 2008
8) In liquidation
9) Stub period
142_GfK
1) Profit and loss transfer agreement
2) Details according to commercial balance sheet II
3) Full indirect shareholding
4) Partially indirect shareholding
5) Details not available
6) Details as per provisional financial statements
drawn up under national law
7) Newly established in 2008
8) In liquidation
9) Stub period
Shareholdings of the GfK Group
nop Market Research Limited, London, uk 100.003), 8) 2008 0
nopw Limited, London, uk 100.003) 2008 1
Server s.a., Providencia, Santiago, Chile 100.003) 2008 – 18
Associated companies (Germany) (details according to hgb commercial balance sheet i)
Ernst und GfK Grundstücksgesellschaft, Nuremberg 50.00 2008 6192)
Infotab Research GmbH, Munich 20.003) 2008 326)
Associated companies (abroad)
agb Nielsen, medijske raziskave, d.o.o., Ljubljana, Slovenia 21.003) 2008 6596)
Bureau voor Reclame Statistiek Hoofddorp b.v., Hoofddorp, Netherlands 49.003), 8) 2008 – 306)
Common Technology Centre eeig, London, uk 25.003) 2008 5)
Consumer Zoom sas, Rueil-Malmaison, France 30.004) 2008 – 4192)
DmrKynetec Group Limited, St Peter Port, Guernsey, uk 26.00 2008 21,423
Europanel Raw Database gie, Brussels, Belgium 50.004) 2008 5)
ggc-nop Limited, London, uk 25.003) 2008 66)
i + g Infratest Medical Research Inc., Rhode Island, usa 50.008) 2008 5)
MarketingScan snc, Rueil-Malmaison, France 50.00 2008 2,9582)
Media Focus (arge), Hergiswil, Switzerland 50.003) 2007/2008 4982)
mrc-Mode Pvt. Limited, Dhaka, Bangladesh 36.003) 2007/2008 16)
npd Intelect, l.l.c., Port Washington, New York, usa 25.003) 2007/2008 33,7922)
org-GfK Marketing Services (India) Private Limited, Mumbai, India 40.003) 2007/2008 2852)
Phononet ag, Zurich, Switzerland 20.003) 2008 5)
Sports Tracking Europe b.v., Amstelveen, Netherlands 25.00 2007/2008 – 6352)
St. Mamet Saisie Informatique (smsi) s.a.r.l., St Mamet la Salvetat, France 20.403) 2008 6902)
Starch Research Services Limited, Toronto, Ontario, Canada 20.003) 2007/2008 416)
Other participations (Germany)
tmc Thomson Media Control GmbH & Co. kg, Baden-Baden 5.00 2008 – 74
Other participations (abroad)
iri Infoscan Ltd., Maidenhead/Berkshire, uk 5.804) 2008 5)
Qosmos sa, Amiens, France 7.80 2008 6,1846)
Company name and registered offi ce
Share in the capital
in %
Financial
year
Equity
(eur‘000)
KO
NZ
ER
NA
BS
CH
LU
SS
GfK_143
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We have audited the consolidated financial statements prepared
by the GfK se, Nuremberg, comprising the balance sheet, the
income statement, statement of recognized income and expense,
cash flow statement and the notes to the consolidated financial
statements, together with the Group management report for the
business year from 1 January 2008 to 31 December 2008. The
preparation of the consolidated financial statements and the Group
management report in accordance with ifrs, as adopted by the
eu, and the additional requirements of German commercial law
pursuant to § 315a section 1 hgb (and supplementary provisions
of the shareholder agreement/articles of incorporation) 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 (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 the applicable financial reporting framework 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 ifrs, as adopted by the eu,
the additional requirements of German commercial law pursuant
to § 315a section 1 hgb (and supplementary provisions of the
shareholder agreement/articles of incorporation) 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.
Nuremberg, March 13, 2009
kpmg ag
Wirtschaftsprüfungsgesellschaft
(formerly
kpmg Deutsche Treuhand-Gesellschaft
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft)
Maurer Kiesewetter
German Public Auditor German Public Auditor
Auditors’ Report
144_GfK
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GfK_145
Additional InformationAdditional Information
5-year overview 146
Glossary of financial terminology 150
Glossary of specialist GfK terms 153
List of GfK companies 156
Financial calendar V
Index VI
Acknowledgements VII
146_GfK
Key fi gures – income statement
eur million/percent 2004 2005 2006 20072) 2008
Sales 669.1 937.3 1,112.2 1,162.1 1,220.4
Change in % on prior year – + 40.1 + 18.7 + 4.5 + 5.0
Personnel expenses 282.7 373.1 442.3 465.2 494.3
Change in % on prior year – + 32.0 + 18.5 + 5.2 + 6.3
Depreciation/amortization1) 25.8 44.6 51.2 59.7 59.2
Change in % on prior year – + 72.5 + 14.8 + 16.6 – 0.8
Adjusted operating income 82.9 125.1 150.5 157.6 158.7
Change in % on prior year – + 50.9 + 20.3 + 4.7 + 0.7
ebitda 107.8 153.5 173.1 188.4 192.0
Change in % on prior year – + 42.4 + 12.8 + 8.8 + 1.9
ebitda margin in % 16.1 16.4 15.6 16.2 15.7
Operating income 77.6 80.7 118.5 125.6 128.9
Change in % on prior year – + 3.9 + 46.9 + 6.0 + 2.6
Margin in % 11.6 8.6 10.7 10.8 10.6
Income from participations 4.4 28.3 3.4 3.0 3.9
Change in % on prior year – + 550.2 – 87.9 – 10.8 + 28.2
ebit 82.0 109.0 121.9 128.6 132.8
Change in % on prior year – + 32.9 + 11.9 + 5.5 + 3.2
Margin in % 12.2 11.6 11.0 11.1 10.9
Income from ongoing business activity 81.4 92.2 93.5 104.2 113.0
Change in % on prior year – + 13.3 + 1.4 + 11.5 + 8.4
Consolidated total income 53.1 67.5 71.2 78.9 82.0
Change in % on prior year – + 27.1 + 5.5 + 10.7 + 4.0
Tax ratio in % 34.7 26.8 23.8 24.3 27.4
1) Tangible and intangible assets
2) Adjusted by the effects of the settlement with ubm. For more detailed information, please see the Management Report. Section 2.1.
5-year overview2004 to 2008 according to ifrs
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Key indicators – balance sheet
eur million/percent 2004 2005 2006 2007 2008
Non-current assets 347.6 1,097.8 1,120.8 1,088.3 1,085.0
Change in % on prior year – + 215.8 + 2.1 – 2.9 – 0.3
Current assets 215.6 391.1 375.4 382.5 361.6
Change in % on prior year – + 81.4 – 4.0 + 1.9 – 5.5
Asset structure in % 161.2 280.7 298.6 284.5 300.1
Investments 84.6 681.9 56.6 73.7 101.5
Change in % on prior year – + 705.8 – 91.6 + 30.2 + 37.7
thereof in tangible assets1) 22.4 35.4 42.6 49.2 50.5
Change in % on prior year – + 58.2 + 20.2 + 15.7 + 2.5
thereof in fi nancial assets 62.2 646.5 14.0 24.5 51.0
Change in % on prior year – + 938.5 – 97.8 + 74.1 + 108.6
Equity 256.7 426.4 466.4 509.6 500.3
Change in % on prior year – + 66.1 + 9.4 + 9.3 – 1.8
Borrowings 306.5 1,062.5 1,029.8 961.2 946.3
Change in % on prior year – + 246.7 – 3.1 – 6.7 – 1.5
Total assets 563.2 1,488.9 1,496.2 1,470.8 1,446.6
Change in % on prior year – + 164.4 + 0.5 – 1.7 – 1.6
Net indebtedness – 39.3 – 523.0 – 542.5 – 472.9 – 481.5
Change in % on prior year – + 1,231.5 + 3.7 – 12.8 + 1.8
5-year overview2004 to 2008 according to ifrs
GfK_147
Key indicators – cash fl ow statement
eur million/percent 2004 2005 2006 2007 2008
Cash fl ow from operating activity 92.1 128.9 110.3 168.1 145.8
Change in % on prior year – + 40.0 – 14.5 52.5 – 13.3
Cash fl ow from investing avtivity – 81.0 – 651.8 – 48.0 – 64.6 – 90.0
Change in % on prior year – + 705.0 – 92.6 + 34.6 + 39.4
Cash fl ow from fi nancing activity – 14.0 550.3 – 90.9 – 112.9 – 56.7
Change in % on prior year – + 4,030.7 – 116.5 + 24.3 – 49.7
Free cash fl ow 69.7 93.5 67.7 118.9 95.4
Change in % on prior year – + 34.1 – 27.6 + 75.6 – 19.8
1) Tangible and intangible assets
148_GfK
5-year overview2004 to 2008 according to ifrs
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Key indicators – company valuation 2004 2005 2006 20072) 2008
Earnings per share in eur1) 1.35 1.77 1.86 1.98 2.04
Change in % on prior year – + 31.1 + 4.7 + 6.8 + 2.9
Free cash fl ow per share in eur1) 2.22 2.79 1.93 3.33 2.66
Change in % on prior year – + 25.7 – 31.0 + 73.0 – 20.2
Gearing in % 15.3 122.6 116.3 92.8 96.2
Net indebtedness in relation to
ebit in % 47.9 480.1 444.8 367.5 362.6
ebitda in % 36.4 340.6 313.3 251.0 250.8
Free cash fl ow in % 56.3 559.2 801.2 397.8 505.0
Dividend per share in eur 0.30 0.33 0.36 0.45 0.46
Total dividend 9.4 11.6 12.8 16.1 16.5
Change in % on prior year – + 23.4 + 10.5 + 26.3 + 2.5
Dividend yield in % 1.05 1.17 1.10 1.64 2.09
Year-end share price in eur1) 28.65 28.30 32.82 27.50 22.02
Weighted number of shares (in thousand) 31,367 33,486 35,156 35,682 35,884
Number of shares as of December 31 31,475 35,048 35,502 35,863 35.947
1) Adjusted for capital increase
2) Adjusted by the effects of the settlement with ubm. For more detailed information, please see the Management Report. Section 2.1.
Key indicators – profi tability 2004 2005 2006 20072) 2008
Capex as a percentage
of sales 3.3 3.8 3.8 4.2 4.1
Return on capital employed in % 15.4 10.6 8.2 8.7 9.1
Profi t to sales ratio in % 7.9 7.2 6.4 6.8 6.7
Ratio of net indebtedness to cash fl ow. in years 0.6 5.6 8.0 4.0 5.0
Pay-out ratio in % 17.7 17.2 18.0 20.4 20.1
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5-year overview2004 to 2008 according to ifrs
Sales by sectors and region1)
eur million/percent 2004 2005 2006 2007 2008
Sectors
Custom Research 411.9 624.0 755.2 773.0 782.8
Change in % on prior year + 51.5 + 21.0 + 2.4 + 1.3
Retail and Technology 187.0 209.6 235.4 260.8 304.1
Change in % on prior year + 12.1 + 12.3 + 10.8 + 16.6
Media 62.2 96.2 117.0 124.5 130.1
Change in % on prior year + 54.5 + 21.7 + 6.4 + 4.5
Regions
Germany 236.3 253.6 269.6 290.3 316.1
Change in % on prior year + 7.3 + 6.3 + 7.7 + 8.9
Western Europe/Middle East/Africa 457.7 480.5 487.2
Change in % on prior year + 5.0 + 1.4
Western and Southern Europe 215.7 257.5 290.3
Change in % on prior year + 19.4 + 12.7
Northern Europe 55.6 127.2 167.4
Change in % on prior year + 128.8 + 31.6
Central and Eastern Europe 40.2 52.7 64.4 73.1 87.2
Change in % on prior year + 31.2 + 22.4 + 13.4 + 19.3
North America 257.3 240.7 219.7
Change in % on prior year – 6.5 – 8.7
Latin America 23.7 26.7 35.5
Change in % on prior year + 12.9 + 33.0
America 82.0 207.0 280.9
Change in % on prior year + 152.4 + 35.7
Asia and the Pacifi c 39.3 39.4 39.6 50.8 74.8
Change in % on prior year + 0.3 + 0.4 + 28.4 + 47.3
1) Data taken from the Management Information System
Number of employees
at year-end 5,539 7,515 7,903 9,070 9,692
Change in % on prior year + 35.7 + 5.1 + 14.8 + 6.9
150_GfK
A
Adjusted operating income
Adjusted operating income does not take into
account � highlighted items. The management
uses this financial indicator in the Group-wide
management of GfK’s operating business.
Affiliated companies
Companies which are controlled by the parent.
As a rule, the parent holds the majority of the
voting rights and capital of the company.
Assets
Resources that are at the disposal of the company
as a result of events in the past and which should
represent an economic benefit in future.
Asset structure
The asset structure describes the relationship
between non-current assets and current assets.
It is determined on the basis of the ratio of non-
current assets to current assets multiplied by 100.
Associated companies
� Minority participations in companies on whose
business or company policy a decisive, but not a
controlling influence is exercised. Associated com-
panies are in principle valued at equity.
B
Borrowings
Total assets less equity.
C
Cash flow
Balance of funds inflow and outflow affecting
payment.
Consolidated total income (ifrs)
Consolidated total income attributable to the
equity holders of the parent company plus con-
solidated total income attributable to minority
interests; also referred to as consolidated total
income before minority interests.
Cost of sales
Total of all types of operating costs which can be
directly allocated to clients’ orders. These include
in particular costs for external data procurement,
costs for interviewees and interviewers.
Cost of sales accounting
Form of income statement which shows the
income achieved in the market during the
accounting period. Opposite: total cost accoun-
ting. Here the total operating income for the
period is shown, whereby the sales and changes
in inventories are shown against the total cost.
Both forms of accounting produce the same
income for the accounting period.
Current assets
The total of all short-term receivables, deferrals,
funds, securities and inventories reported on the
assets side of the balance sheet.
Current liabilities
The total of all short-term provisions, liabilities
and deferrals reported on the liabilities side of
the balance sheet.
D
Deferred taxes
Tax assets or liabilities reported in the balance
sheet to equalize the difference between the
tax debt actually assessed and the commercial
tax burden based on the financial reporting in
accordance with � ifrs for the commercial
balance sheet. The basis for determining deferred
taxes is the difference between the value of the
assets and liabilities reported in the balance sheet
in accordance with ifrs and the local tax balance
sheet.
Dividend yield
Dividend per share in relation to the annual
closing price.
E
ebit
Abbreviation for earnings before interest and
taxes calculated as � Operating income plus
income from associates plus � Other income
from participations.
ebitda
Earnings before interest, taxes, depreciation and
amortization calculated as � ebit plus depreciation
and amortization charges.
Equity (ifrs)
Equity comprises funds from the equity holders
available to the company as capital contributions
and/or deposits and retained profit as well as
equity attributable to minority interests.
Equity ratio
Balance sheet equity in relation to total assets.
The higher the indicator, the lower the level of
indebtedness.
F
Free cash flow
Cash flow from operating activity less capex.
Financial expenses
Financial expenses that do not result directly from
participating interests. These are calculated as
interest expense plus other financial expenses.
Financial income
Financial income that does not result directly
from participating interests. This is calculated as
interest income plus other financial income.
G
Goodwill
Intangible business asset that represents the value
of the intangible assets of a company at the time of
its acquisition that are not separately capitalizable,
such as the expertise of staff. This is calculated as
the purchase price of the company less revalued
equity on a pro rata basis.
Gross income from sales
Sales less � Cost of sales.
Glossary of financial terminology
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H
Highlighted items
The costs that are not taken into account in
� Adjusted operating income: expenses and
income connected with restructuring and
corporate transactions, write-ups and amorti-
zation on disclosed hidden reserves as part of the
purchase price allocation, share-based payments
and long-term incentives, other income and
expenses, including, in particular, effects from
the valuation of foreign exchange items on the
reporting date.
I
ias
The International Accounting Standards (ias)
were developed and published by the iasc from
1973 to 2000. Unless specific standards have
been revoked, they are still valid in full today.
Since the reworking of ias 1 in 2003, the “old”
ias have been collectively referred to as ifrs. Any
existing standards are developed further as ias
and all new standards are known as ifrs.
ifrs
The International Financial Reporting Standards
(ifrs) are accounting principles developed and
published by the iasb. In addition to the actual
ifrs, the ias that are still valid and the interpre-
tations of the ifric and sic are grouped under the
ifrs.
Impairment
Write-down of assets in addition to scheduled
amortization/depreciation, or in place of
scheduled amortization/depreciation in the
case of intangible assets with an indefinite
useful life. Impairment tests are used to establish
whether the carrying value of assets is higher
than the recoverable amount for the asset. The
asset is written down to the recoverable value
as necessary.
Income
� Adjusted operating income.
Income from operating activity
� ebit plus � Financial income less
� Financial expenses.
M
Majority participations
� Affiliated companies.
Margin
A margin represents the relationship of an
indicator (� Income, � ebit, � ebitda etc.) to
sales.
Minority participations
Generic term for � Associated companies and
� Other participations. The participation quota
is below 50%.
N
Net indebtedness
Assets that benefit business operations in the
long term. In addition to intangible assets, tangible
assets and investments, these include deferred
tax assets and other non-current receivables and
deferrals.
Non-current assets
Assets that benefit business operations in the long
term. In addition to intangible assets, tangible
assets and investments, these include tax assets
and other non-current receivables and deferrals.
Non-current liabilities
Total of all long-term provisions, liabilities, deferred
tax liabilities and other deferrals reported on the
liabilities side of the balance sheet.
O
Operating income (ifrs)
Gross income from sales less � Sales and general
administrative expenses plus � Other operating
income less � Other operating expenses.
Other income from participations
Income from � Affiliated companies not included
in the scope of consolidation and � Other parti-
cipations as well as expenses and income from
write-ups or write-downs of book values of invest-
ments plus gains/losses from the disposal of parti-
cipations.
Other operating expenses
Expenses in connection with ongoing business
activity, excluding financial expenses, not
attributable to � Cost of sales or � Selling and
general adminis-trative expenses. Examples are
� Impairments, losses from the disposal of fixed
assets or exchange losses.
Other operating income
Income from ongoing business activity, excluding
financial income, which does not represent sales.
Examples are profits on the disposal of fixed
assets and exchange gains.
Other participations
Companies in which a participation is held but on
whose business policy no decisive influence is
exercised. The participation quota is below 20%.
P
Pay-out ratio
Total dividend in relation to consolidated total
income.
Profit to sales ratio (ifrs)
� Consolidated total income in relation to sales.
Purchase Price Allocation
Allocation of the purchase price when companies
are acquired to assets and liabilities not previously
reported or not in such amounts.
R
Ratio of net indebtedness to cash flow
Net indebtedness in relation to � Free cash flow.
Return on capital employed
� ebit in relation to average total assets.
Return on equity
Consolidated total income in relation to average
shareholders’ equity.
S
Selling and general administrative costs
Operating costs, not directly aligned to individual
client orders, such as general marketing or
accounting measures.
Sector
GfK manages its business via the three sectors,
Custom Research, Retail and Technology and
Media. The additional subdivision below sector
level used in the management information system
is termed � Segments. The three sectors emer-
ged from the five divisions Custom Research,
Retail and Technology, Consumer Tracking,
Media and HealthCare, which existed until the
end of 2007.
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Glossary of financial terminology
Segment
GfK uses the term segment for an additional
subdivision below the level of � Sectors in the
management information system. This relates to
the Custom Research sector, which encompasses
the Consumer Tracking, HealthCare, Automotive,
Business and Technology, Financial Services,
Consumer and Retail, Other Custom Research,
Custom Research Central and Eastern Europe,
Custom Research Latin America, Custom Research
Asia and Pacific as well as Multi Segment Custom
Research segments.
T
Tax ratio
Tax on income from operating activity in relation
to � Income from ongoing business activity.
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A
Ad hoc research
Systematic empirical research as a basis of marke-
ting decisions. One of GfK’s business divisions »
Custom Research.
agf
agf – tv research partnership. Association of
the broadcasters ard, ProSiebenSat.1 Media ag,
rtl Media Group Germany and zdf to carry out
continuous, quantitative � tv audience research
in Germany.
agf/GfK tv panel
A representative group of households selected
using statistical methods, whose tv viewing is
continuously determined by GfK tv research via
tv meters and used as a basis for audience share
and ratings: � Research, � Panel.
Automotive
Automotive is one of GfK‘s segments, which is
involved in automotive market research.
B
Basic research
Market research is based on the findings of many
different sciences, including psychology, sociology
and statistics. Basic research reviews those findings
and establishes by means of its own research
whether and under which circumstances these
findings can be applied in market research.
Basic unit
The set of all the elements, about which information
is to be provided. A � Sample is a subset of this
basic unit. As a rule, the aim is to draw conclusions
about the features of the basic unit by considering
a sample.
Business and Technology
Business and Technology is one of GfK‘s segments.
C
Conjoint Analysis
Multivariate analysis method to determine complex
patterns of consumer preference.
Consumer and Retail
Consumer and Retail is one of GfK‘s segments.
Consumer climate
Indicator that is calculated on the basis of the
findings of a monthly consumer survey carried out
on behalf of the European Commission. It gives
insight into the level and general trends of private
consumption in specific countries: � Propensity
to buy
Consumer Electronics
Also known as brown goods, which comprise
products such as tv sets, dvd players, games
consoles, mp3 players: � Retail and Technology.
Consumer Panel
A � sample of households, which provide regular
information on their purchases: � ConsumerScan,
� ConsumerScope, � Panel.
ConsumerScan
� Consumer panel in which the purchasing
behaviour of households and individuals is
recorded. Covers purchases of nearly all fast
moving consumer goods: � Consumer Tracking,
� Household Panel.
ConsumerScope
Mail panel, carrying out continuous surveys
of purchases of consumer goods with slow
moving acquisition cycles and the use of service:
� Consumer Tracking, � Panel, � Consumer
Panel.
Consumer Tracking
A survey of households and individual consumers
that is repeated at regular intervals. Tracking
is one of GfK‘s segments: � Household Panel,
� Panel, � Tracking.
Custom Research
Custom Research is one of GfK‘s sectors, one of
GfK‘s segments: � Ad hoc research.
Custom Research Asia and the Pacific
Custom Research Asia and Pacific is one of GfK‘s
segments, which is involved in � Ad hoc research
in Asia and the Pacific region.
Custom Research Latin America
Custom Research is one of GfK‘s segments, which
is involved in � Ad hoc research in Latin America.
Custom Research Central and Eastern Europe
Custom Research Central and Eastern Europe is
one of the GfK‘s segments, which is involved in
� Ad hoc research in Central and Eastern Europe.
D
Data fusion
A statistical method to transmit features from a
sample’s sources to another sample’s sources.
Data point
A data point is a single measurement within a
dataset.
E
Evogenius
IInstrument used to produce and analyze media
usage data. Initially designed for � tv audience
research, it has since been expanded to include
radio, print, posters, online and cross-media:
� Media.
Excellence Team
As part of the Excellence program set up in 2001,
GfK managers selected globally work together on
a project of strategic importance for GfK for one
year at a time. The current Excellence viii Team is
identifying trends, which will influence the market
research industry up to 2015 and discussing how
GfK could react to them.
Extrapolation
Derived total result based on partial results. In
order to extrapolate as precisely as possible, the
partial results must take account of all conceivable
aspects and be sufficient in size. This is known as
a representative � Sample.
F
5 Star Incentive Programm
Part of the remuneration system for the GfK
Group‘s management. The amount of these
partial remuneration payments varies, depending
on the share price trend and the key figures in
the consolidated accounts.
Face-to-Face Interview
Oral, direct interview conducted by an interviewer.
Respondents do not see the questionnaire, but are
asked the relevant questions by the interviewer.
Fact-based consultancy
Strategic client consulting based on figures. One of
the five aims of GfK’s corporate strategy.
Financial Services
Financial Services is one of GfK‘s segments, which
is involved in financial market research.
G
Genetic algorithms
A research method, which imitates evolution,
to find the best possible solution in a complex
environment.
GfK Analyzeit
Panel analysis software used by the � Consumer
Tracking segment, which allows both customers
and GfK employees to download and initiate
reports and special analyses flexibly from the
� Household Panel via the Internet.
Glossary of specialist GfK terms
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GfK EmoSensor
Instrument for recording emotions in a diffe-
rentiated manner, which triggers marketing
measures such as a commercial or a new
consumer product.
GfK NewProductWorks (npw)
World‘s largest collection of all the innovative
products that have been successfully launched in
the last 25 years.
GfK Octopus
GfK‘s online portal, which allows customers to
download the studies they have commissioned
and analyze them independently.
GfK Price Performance Planner (ppp)
Market model, which analyzes the effects of price
changes on a specific product’s sales units and
volume.
GfK Retail Analytics
An addition to the � Retail Panel for � Retail and
Technology, this is an instrument which delivers
clients additional knowledge on subjects such as
pricing, competitive analysis, range structuring
and product marketing and also supplies details
on market movements in individual stores.
GfK Segment Tracker
Instrument for identifying the needs and motivation
of doctors so that the pharmaceuticals industry
can address this target group most effectively.
GfK smart
Superior Mystery Shopping Administration
and Reporting Technology. Software, which
improves the research process for complex
mystery shopping projects and enhances the
quality of analysis. � Mystery Shopping.
GfK Target Group Profiler (tgp)
Instrument for the identification of which
marketing core groups, i.e. households or
individuals offering the greatest potential
for a specific brand.
Global Key Account Management
Selected GfK employees in the � Custom
Research sector who manage global corporate
client accounts.
H
Household Panel
Representative sample of households, which
report regularly on their purchases: � Consumer-
Scan, � ConsumerScope, � Consumer Tracking,
� Panel.
HealthCare
HealthCare is one of GfK‘s segments, which
supplies information services on product
development, communication, image and nba
for drugs and devices and services in healthcare.
Hierarchical Bayes method
A method for determining price elasticity for a
brand, even if only a few data points are available.
hilca
Hierarchical Individual Limit Conjoint software,
the aim of which is to optimize products which
can be described through a large number of
features.
Hybrid procedure
Using at least two different methods to approach
the survey topic.
K
kes
Knowledge Exchange Solution. GfK initiative on
global knowledge sharing between employees.
M
Market segmentation
Division of an overall market into sub-markets
using different categories. Segmentation can be
by product type, price class, geographic demo-
graphy or psychological and socio-economic life-
style features and value categories of consumers.
Media
Media is one of GfK’s sectors, which provides
information services on reach, intensity and type
of use of media and media offering and their
acceptance: � tv audience research, � tv Panel,
� Media research, � Reach research.
Media research
Systematic, empirical research used as a basis
for media planning by media companies and their
advertising clients: � Media, � tv audience
research, � Reach, � Reach research.
MediaWatch
An electronic metering device incorporated
into a wristwatch, used to measure consumption
of various media: � Media, � Media research,
� Reach research.
Mobile Content Tracking and Downloads
Research method, which collects exact and
standardized measured data in detail within the
three most important sources for mobile content:
internet based tv, computer and mobile phone.
Mystery Shopping
Test method for analyzing the service quality of
supermarkets, restaurants, insurance companies
or banks and determining measures to rectify
defects.
N
Neuromarketing
Interdisciplinary field of research. Previously
unknown patterns and processes, which control
the decision of potential customers for or against a
product, are researched on the basis of changes in
the flow of blood in the brain and contrasted with
actual visible behaviour.
O
Online research
Questionnaires sent to people and other survey
units via the Internet
Other Custom Research
Other Custom Research is one of GfK’s segments.
P
Panel
A survey of individuals, households, companies
etc. to obtain data on a single subject at regular
intervals over a longer period, using the same
� Sample and carried out using the same
methods each time: � Consumer Tracking,
� ConsumerScan, � ConsumerScope, � House-
hold Panel, � tv Panel, � Panel maintenance,
� Tracking.
Panel maintenance
Instrument used to ensure the quality of Panel
surveys. Following the departure of Panel
participants or their familiarity with a survey
topic, participants are removed from the Panel
at specific intervals and replaced by new Panel
members. Panel maintenance also comprises
the exclusion of incentive hunters who only
participate in Panels to benefit from the reward
system: � Consumer Tracking, � Panel.
Propensity to buy
The intention of consumers to make major acqui-
sitions in the near future. The propensity to buy
is one of the indicators used in the GfK consumer
climate survey based on consumers being asked
the following question: “Do you think that it is
wise to make major purchases at the moment?”
� Consumer climate.
Glossary of specialist GfK terms
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Radio research
Measuring the listening habits of radio audiences:
� Media, � MediaWatch.
Reach
The percentage of the total population or a specific
target group reached by a medium. A central
concept in media planning and � Media research:
� tv Panel, � Reach research.
Reach research
The continuous recording of media usage: � Media,
� Reach.
Retail and Technology
One of GfK’s sector: � Retail Panel.
Retail Panel/research
Regular recording of sales, product categories
and products via a representative sample of
retailers with different retail types and sales
channel: � Retail and Technology, � Tracking.
S
Segmentation
� Market segmentation.
StarTrack
it platform used to produce and evaluate data in
the » Retail and Technology sector.
StarTrack Explorer
Online portal of the Retail and Technology sector,
which allows customers to create reports in a
uniform global format offering great analytical
depth tailored to their individual requirements
online.
Sample
The observation data and/or survey units which
are selected from all of the units and included in
a specific survey: � Extrapolation, � Panel.
Syndicated business
Market or market player surveys not necessarily
commissioned by a client or tailored to suit client
requirements, which are offered on the market
without client-specific adaptation. Syndicated sur-
veys can be carried out on a one-off or repeated
basis, without the need to conform to the strict
limitations of a panel.
T
tc Score
A measuring system used in � tv audience
research, which consists of a central device
and several measuring modules with the
characteristics of a receiver, a set-top box or
a dvd player. By surveying tv consumption
and the use of accessories via tc Score devices,
customers can obtain particularly detailed data:
� tv audience panel, � Media, � Media
Research.
Test market
Largely self-contained sub-market, in which a
new product is tested in a reality-based situation,
e.g. a superstore specifically equipped for this
purpose or in a region that is representative of a
whole country.
TdW
Typology of Wishes. A study that puts various
lifestyles and trends and their different con-
sumption and media habits into one context. This
is achieved by a comprehensive description of
all the various permutations of human behaviour.
TdW t.o.m. Pharma
Purchasing information from the HealthCare
Panel is transferred into the Typology of Wishes
(TdW), to record consumer reaction to adverti-
sing in print media: � TdW, � HealthCare, �
Panel.
t.o.m. fmcg tv
Target optimizer for markets. By merging data
from the GfK ConsumerScan Panel with that
from the agf/GfK tv Panel, GfK can analyze the
groceries that a particular group viewing a
broadcast will buy, for example: � agf, � agf/
GfK tv Panel, � Panel, � ConsumerScan, � Data
fusion.
t.o.m. Pharma tv
By merging data from the GfK HealthCare
Panel with that from the agf/GfK tv Panel,
GfK can analyse the non-prescription drugs
that a particular group viewing a broadcast
will buy, for example: � agf, � agf/GfK tv
Panel, � Panel, � HealthCare, » Data fusion.
Tracking
Surveys of individuals, households and com-
panies, repeated at regular intervals and using
the same interview method each time. Unlike
a � Panel, the data is not necessarily collected
from the same sources each time, but the struc-
ture of the sample is the same in each case �
Sample � Consumer Tracking.
tv audience research
tv audience research is used to determine
audience share: � Media, � Media research,
� Reach, � tv Panel.
tv Panel
A representative group of households whose
tv viewing is continuously determined via tv
meters and used as a basis for audience share
and ratings: � tv audience research, � Media,
� Panel, � Reach.
tv reach research
� Reach research.
W
web.Consumer
Purchaser target groups from the GfK Consu-
merScan Panel are transferred to the United
Internet Media (uim) customer database using
data fusion to establish whether a particular
consumer group views a specific Internet page
particularly frequently: � ConsumerScan,
� Panel 11
Glossary of specialist GfK terms
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Beijing Sino Market Research
Beijing Sino Market Research Co., Ltd., China
Bilesim International
Bilesim International Arastirma ve Danismanlik
a.s., Turkey
Blue Moon Group
GfK Blue Moon Research and Planning Pty.
Limited, Australia
GfK Blue Moon Quantitative Research Pty.
Limited, Australia
Chart Track
Chart Track Limited, uk
China Market Monitor
China Market Monitor Co., Ltd., China
Dmrkynetec
DmrKynetec Group Limited, uk
Encodex
encodex International GmbH, Germany
Encodex Japan
Encodex Japan k.k., Japan
Etilize
Etilize Inc., Rolling Hills Estates, ca, usa
GfK Albania
GfK Albania, Albania
GfK Custom Research Australia
GfK Custom Research Australia Holding Pty.
Limited, Australia
GfK Custom Research North America
GfK arbor, llc, Media, usa
GfK Automotive, llc, usa
GfK Custom Research, llc, usa
GfK Research Dynamics, Inc., Canada
The Arbor Strategy Group, Inc., usa
GfK Denmark
GfK Danmark a/s, Danmark
GfK Egypt
gfk Egypt ltd, Egypt
GfK Eurisko
GfK Eurisko S.r.l., Italy
GfK Fernsehforschung
GfK se, GfK tv research division
GfK Indicator, Brazil
GfK indicator Ltda., Brazil
GfK Marketing Services Australia
GfK Retail and Technology, Australia Pty. Ltd.,
Australia
GfK Marketing Services Chile
GfK Marketing Service Chile Limitada, Chile
GfK Marketing Services Japan
GfK Marketing Services Japan k.k., Japan
GfK Marketing Services New Zealand
GfK Retail and Technology Australia Pty. Ltd.,
Australien, office in New Zealand
GfK Marketing Services South Africa
GfK Marketing Services South Africa
(Proprietary), South Africa
GfK Market Measures
GfK u.s. Healthcare Companies lp, usa,
Bereich GfK Market Measures
GfK mediacontrol Latina
GfK Mediacontrol Latina s.l., Spain
GfK-memrb Marketing Services Dubai
GfK-Memrb Marketing Services fz-llc,
United Arab Emirates
GfK-memrb Marketing Services Maroc
GfK memrb Marketing Services Moroccro,
Moroccro
GfK-memrb Marketing Services Nigeria
GfK-memrb Marketing Services Limited, Nigeria
GfK Methoden- und Produktentwicklung
GfK se, GfK Methoden- und Produktentwicklung
division
GfK ms Nigeria
GfK-memrb Marketing Services Nigeria Limited,
Nigeria
GfK nop Custom Research
GfK nop Limited, Sektor Custom Research, uk
GfK-Nürnberg e.V.
GfK-nürnberg Gesellschaft für Konsum-, Markt-
und Absatzforschung e.V., Germany
GfK Optics Japan
GfK Optics Japan kk, Japan
GfK Research Matters
GfK Research Matters ag, Switzerland
GfK se, Deutschland
GfK Societas Europaea, Germany
GfK Strategic Innovation
The Arbor Strategy Group, Inc., Ann Arbor, usa
GfK Telecontrol
GfK Telecontrol ag, Switzerland
GfK Türkiye
GfK Arastirma Hizmetleri a.s., Turkey
Bilesim Internasyonal Arastirma Organizasyon
Danismanlik ve Ticaret a.s., Turkey
ifr
ifr Deutschland GmbH, Germany
Market Insight
gfk Egypt ltd, Egypt
Qosmos
Qosmos sa, France
Shopping Brasil Tecnologia
Shopping Brasil Technologia da Informação Ltda,
Brazil
The Arbor Strategy Group
The Arbor Strategy Group, Inc., Ann Arbor, usa
List of GfK companies
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fK c
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V
Dates for 2009
March 31, 2009
Accounts press conference, Nuremberg
March 31, 2009
Analysts’ conference, Frankfurt/Main
May 14, 2009
Quarterly report as at March 311)
May 20, 2009
Annual General Meeting, Fürth
August 13, 2009
Interim half-year report as at June 301)
November 16, 2009
Interim nine-month report as at September 301)
Dates for 2010
February 25, 2010
Provisional result for financial year 20091)
March 31, 2010
Accounts press conference, Nuremberg
March 31, 2010
Analysts’ conference, Frankfurt/Main
May 12, 2010
Quarterly report as of March 311)
May 19, 2010
Annual General Meeting, Fürth
August 16, 2010
Interim half-year report as of June 301)
November 15, 2010
Interim nine-month report as of September 301)
1) Publication is scheduled for before the start of the trading season
Provisional key dates in the financial calendarProvisional key dates in the financial calendar
VI
64, 104ff. Accounting and valuation methods
54 Acquisitions
Adjusted operating income
see Income
112, 118 Affiliated companies
9, 54, 69f., 96, 149 Asia and the Pacific
109 Assets
108 – intangible
101 Balance sheet
– Notes to the accounts
147 – Total assets
10, 84 biss
124, 147 Borrowings
Cash flow
102, 147 – from financing activity
IV, 65, 102, 147 – from ongoing operating activity
102, 147 – from investment activity
102, 110 Cash flow statement
9, 54, 69f., 90, 149 Central and Eastern Europe
Consolidated
99ff. – financial statements
IV, 63f. 100, 146 – income
111 Consolidation
54 Consumer Tracking
75f., 84 Corporate Communications
and Marketing
4, 14ff., Corporate Governance
107, 117 Corporate value/goodwill
9, 50ff., 54, 67f., 72, Custom Research
78, 83, 149
102, 110 Deferred taxes
IV, 25, 148 Dividend
148 Dividend yield
63ff., 106, 146 ebit
IV, 63ff., 146 ebitda
IV, 74, 133, 149 Employees
Employees
see Human Resources
75 Environmental issues
110, 120, 147 Equity
65 – ratio
108, 128 Financial instruments
110 Financial liabilities
15ff., 81, 84, 107 5 Star Incentive
65, 148 Gearing
60, 69f., 86, 149 Germany
54 HealthCare
73ff. Human Resources
IV, 62ff. Income
63, 146 – from ongoing business activity
63, 107 – per share
see share
– operating
see Operating income
63, 85, 146 Income from participations
IV, 25, 67, 115 Income
25 – Key indicators
21f., 48 – Share price performance
100 Income statement
106 Income tax
84, 147 Investments
9, 54, 61,69f., 94, Latin America
149
118 Leasing
12f., 85, 136 Management Board
IV, 67, 85, 146 Margin
9, 42, 54, 67f., 73, Media
79, 84, 149
5, 23 Merger of Equals
65, 147 Net indebtedness
69f., 92, 149 North America
IV, 62, 113, 146 Operating Income
Operating income
see Income
76ff. Opportunities and risks
78, 83, 149
75 Organization and administration
Profit for the year
see Consolidated income
148 Profit to sales ratio
130 Pro forma statements (ifrs 3)
110, 122f. Provisions
75 Purchasing
60 Recession
72f., 83 Research and Development
2, 9, 38f., 54, 67f., Retail and Technology
73, 79, 84, 147
148 Return on assets employed
IV, 63, 67, 105, 146 Sales
128f. Segment reporting
126 Sensitivity analysis
26 Shareholder structure
138ff. Shareholdings
9, 16, 21f., 100 Shares
25, 130 Societas Europaea
4ff., 14, 134f. Supervisory Board
108 Tangible assets
Taxes
see Income tax
IV, 63, 146 Tax Ratio
42f. tv research
69f., 88, 149 Western Europe, the Middle East
and Africa
Yield
See Margin
Index
VII
AcknowledgementsAcknowledgements
The present Annual Report is available in
German and English. Both versions and
supplementary press information are available
for download online from www.gfk.com
Annual reports, interim reports and press
information are available from
Corporate Communications
Contacts
Bernhard Wolf
Global Head of Corporate Communications
Tel. + 49 911 395 – 2012
Fax + 49 911 395 – 4075
Marion Eisenblätter
Public Relations
Tel. + 49 911 395 – 2645
Fax + 49 911 395 – 4041
Publisher
GfK se
Nordwestring 101
90419 Nuremberg
http://www.gfk.com
Design
A & Z, Zurich
Scheufele Hesse Eigler Kommunikations-
agentur GmbH, Frankfurt/Main
Photography
Michel Comte: cover, pages 8, 12, 35, 37, 39,
41, 43, 45, 47, 49, 71, 53, 54, 56
Getty Images: pages 86-97
Bundesbildstelle der Bundesregierung
Deutschland: page 31
Bundesbildstelle der Bundesregierung
Deutschland/Gerhard Heisler: page 33
Michel Comte
Born in 1953 in Zurich, Michel Comte origi-
nally trained as an art restorer. A self-taught
photographer, he won his first international
assignments in 1978, and made his home
in Paris from 1979 onwards. In 1981, he
traveled to New York, where he worked for
American Vogue. He later moved to Los
Angeles.
During his 30 years of experience, Michel
Comte has photographed countless stars
from the worlds of the arts, entertainment
and sport. In recent years, he has worked
increasingly with reportage photography, in
addition to portrait and fashion photography.
For example, he has traveled as a photographer
with the International Red Cross to war zones
and areas conflict in Iraq, Afghanistan and
Bosnia. Today, Michel Comte is one of the
most important photographers of our time,
with an impressive style that manages to be
both uncompromising and sensitive
