report for the first half year 2011 - gfk · 2015-12-04 · 2_gfk < < back report for the 1st...

Report for the f irst half year 20 1 1

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Report for the 1st Half Year 2011

in EUR million1) 2. Quarter 2010 2011

Change in %

1. Half Year 2010 2011

Change in %

2010

Earnings situation

Sales 328.7 349.9 6.4 609.6 660.1 8.3 1,294.2

Gross income from sales 109.1 118.5 8.6 190.1 209.8 10.4 421.9

EBITDA 51.1 62.6 22.4 82.3 101.4 23.2 200.4

published in 20103) 47.3 78.2 195.7

Adjusted operating income 46.6 53.5 14.8 71.9 83.9 16.8 185.0

Margin in per cent2) 14.2 15.3 11.8 12.7 14.3

Operating income 37.3 48.7 30.4 56.1 73.6 31.2 141.4

published in 20103) 33.6 52.0 136.7

EBIT 38.2 49.8 30.3 57.5 76.2 32.4 145.2

published in 20103) 34.4 53.5 140.6

Other financial income / expenses – 5.9 – 5.4 8.2 – 10.7 – 6.3 41.4 – 20.5

published in 20103) – 2.2 – 6.7 – 15.8

Consolidated total income 22.0 30.7 39.9 31.8 45.7 43.8 84.0

Basic earnings per share in EUR 0.52 0.75 44.2 0.75 1.07 42.7 1.99

Adjusted earnings per share in EUR4) 0.78 0.88 12.8 1.19 1.36 14.3 3.20

published in 20103) 0.89 1.31 3.33

Investment and finance

Cash flow from operating activity 56.9 44.5 – 21.8 64.0 53.5 – 16.4 172.0

Cash flow from investing activity – 33.1 – 20.0 – 39.7 – 51.3 – 30.2 – 41.1 – 86.2

Cash flow from financing activity – 18.5 20.2 – 18.4 12.6 – 168.7 – 76.9

Free cash flow after acquisitions, other investments and asset disposals

23.7

24.5

3.1

12.7

23.3

83.4

85.8

31.12.2010 30.06.2011 Change as of 31.12. in %

30.06.2010 30.06.2011 Change as of 30.06. in %

Asset and capital position

Total assets 1,649.9 1,670.6 1.3 1,685.1 1,670.6 – 0.9

Equity 677.5 659.4 – 2.7 662.2 659.4 – 0.4

Equity ratio 41.1 39.5 39.3 39.5

Liquidity5) 56.1 90.7 61.5 42.4 90.7 113.9

Net debt6) 428.5 431.1 0.6 494.2 431.1 – 12.8

Employees

No. of employees 10,546 11,133 5.6% 10,244 11,133 8.7

Share of employees in the GfK companies outside Germany in per cent

82.6

82.3

82.6

82.3

1) Rounded2) Adjusted operating income in relation to sales3) Starting from Q1/2011, currency exchange gains and losses resulting from financial transactions are reclassified from other operating income / expenses

to other financial income / expenses; This results in changes in the figures for the previous year. The figures are reported to facilitate a comparison4) Consolidated total income attributable to equity holders of the parent plus highlighted items divided by the weighted average number of shares

in the reporting period5) Cash and cash equivalents plus securities and fixed-term deposits 6) Liabilities to banks plus pension obligations, liabilities under leases and other interest-bearing liabilities less cash and cash equivalents and

securities and fixed-term deposits

The G fK Group at a glance

The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in the three business sectors Custom Research, Retail and Technology and Media. The No. 4 market research organization worldwide operates in more than 100 countries and employs over 11,000 staff. In 2010, the GfK Group’s sales amounted to EUR 1.29 billion.

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Sales in EUR million

Month Change

1-3

310.2 280.9

1-6

660.1 609.6

1-9

932.1

2010 2011

Adjusted operating income in EUR million

Month Change

1-3

30.5 25.3

1-6

83.9 71.9

1-9

120.4

2010 2011

Earnings per share in EUR

Month Change

1-3

0.32 0.23

1-6

1.07 0.75

1-9

1.36

2010 2011

Cash flow from operating activity in EUR million

Month Change

1-3 9.1

7.1

1-6

53.5 64.0

1-9

124.4

2010 2011

Share of sectors in total sales1)

1) Figures from the Management-Information System – rounded

Custom Research60.5 %

Retail and Technology 29.2 %

Media 9.9 %

Other 0.4 %

Share of regions in total sales1)


Germany27.3 %

Western Europe/ Middle East/Africa

38.3 %

Central and Eastern Europe 7.4 %

North America14.7 %

Latin Amerika 4.1 %

Asia and the Pacific 8.2 %

+ 10.4 %

+ 8.3 %

+ 20.5 %

+ 16.8 %

+ 39.1 %

+ 42.7 % – 16.4 %

+ 27.6 %

Business development at a glance of G fK Group

retail and technology

The sector sources data from retail (point of sale). Clients are provided with information and consultancy services, which are based on syndicated surveys and analysis of retail sales of consumer goods and services in more than 90 countries. Services include the regular publication of surveys of the market segments office communications, photographic technology and optics, domestic appliances, information technology, telecommunications, sports equipment, tourism, fashion, consumer electronics and entertainment media.

custom research

The sector offers information and consulting services for operational and strategic marketing decisions in more than 90 countries worldwide. Custom Research provides a wide range of tests and surveys, in particular regarding product and pricing policy, brand management, communications, distribution and customer loyalty. On this basis, GfK supports products and services according to the product life cycle model from their development and launch through to maturity and phase-out. The portfolio of the Custom Research sector comprises syndicated data, collected for example by the household and doctor panels, and custom research studies that are exclusively tailored to specific questions. Consum-ers represent the data sources for the Custom Research sector (point of consumers).

media

The Media sector provides information services on reach and the intensity and nature of media usage and acceptance in around 30 European countries and the USA. The offering is directed at clients from media companies, agencies and the branded goods industry. It comprises syndicated surveys as well as specific, one-off studies and analyses. The Media sector draws its information from the various media, including television, radio, print, outdoor advertising and online.

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The sectors at a glance

In EUR million

2. Quarter 2010 2011

Change in %

1. Half Year 2010 2011

Change in %

Sales 200.9 213.4 6.2 368.1 399.4 8.5

Adjusted operating income 15.6 18.0 14.9 19.5 24.2 23.9

Margin in per cent1) 7.8 8.4 5.3 6.1

Figures from the Management-Information System – rounded 1) Adjusted operating income in relation to sales

In EUR million

2. Quarter 2010 2011

Change in %

1. Half Year 2010 2011

Change in %

Sales 93.2 102.6 10.0 172.8 192.9 11.6

Adjusted operating income 27.8 33.5 20.8 47.5 56.3 19



In EUR million

2. Quarter 2010 2011

Change in %

1. Half Year 2010 2011

Change in %

Sales 33.4 32.7 – 1.9 66.1 65.3 – 1.2

Adjusted operating income 4.0 3.5 – 12.9 7.8 6.9 – 11.5



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Contents

Letter to the shareholders 6

GfK share performance 7

Interim management report 8

1. General economic situation 9

2. Economic and financial development in the GfK Group 9

3. Cash flow and investment 11

4. Assets and capital structure 12

5. Trends in the sectors 13

6. Regional trends 15

7. “Own the Future” – new corporate strategy focuses on global and digital customer requirements 16

8. Number of employees 17

9. Research and development 17

10. Organization and administration 18

11. Changes in participations in the second quarter of 2011 18

12. BISS fitness and efficiency program 19

13. Important events after the reporting date of June 30, 2011 19

14. Marketing and Corporate Communications 19

15. Opportunity and risk position 19

16. Outlook 20

Consolidated financial statements 21

Notes to the consolidated financial statements 30

Additional information 32

Following the pleasing start to the year, the success continues. The second quarter also outperformed our expectations and overall we have thus recorded an excellent half-year performance. We increased sales year-on-year by 8.3% to EUR 660.1 million. At 8.0 percent-age points, the major share of growth was organic. Adjusted operating income was up 16.8% on the first half of the previous year to EUR 83.9 million. In this period the margin improved from 11.8% to 12.7%. This excellent business development was again carried by the Custom Research and Retail and Technology sectors.

In comparison with the same period in the previous year, net debt was reduced by EUR 63.1 million. These extremely positive develop-ments confirm the guidance we gave at the start of the financial year of achieving organic sales growth of 5% to 6% and a margin at least at the previous year’s level, despite the uncertain economic situation.

But let us look now at the months ahead. With its “Own the Future” corporate strategy, GfK is reinventing itself with effect from Janu-ary 1, to ensure a successful future for the company and its clients. As part of the strategy, we will invest in globally consistent prod-ucts and solutions to key issues faced by our clients. The Group’s presence will be strengthened in countries and regions with a signifi-cant market profile and attractive growth prospects.

All our energy, knowledge and ingenuity is focused on achieving one goal, namely to understand consumers better than any other market research company. This is based on two new sectors with two clearly positioned, complementary businesses.

Our first new sector is Consumer Choices. It is a business that focuses on market sizing and trends in all major and increasingly conver-gent digital and information channels as well as media. Our second new sector will be Consumer Experiences. This business primarily explores consumers’ experiences, perceptions and attitudes.

In the context of the new corporate strategy entitled “Own the Future”, the Management Board has also introduced long-term growth and income targets. By 2015, sales of around EUR 2 billion are to be achieved with 16% profit. The goal is to gain market share by realizing organic growth on a scale that considerably outperforms the sector average.

Following my decision not to extend my contract as CEO for personal reasons, Matthias K. Hartmann will be my successor. He will be taking over from me on January 1, 2012 at the latest. In his present position as Global Head of Strategy and Industries, he is responsi-ble for the global strategy and direction of IBM Global Services, the consulting arm of the IBM Group. We look forward to welcoming Matthias K. Hartmann and I should like to take this opportunity to wish him every success.

As you can see, we can draw a positive balance for the first half of this year and there are plenty of challenges ahead. Challenges that GfK will certainly master with style with the support of all our colleagues and teams across the world.

And I would invite you to join GfK on this journey into the digital future.

Sincerely yours,

Prof. Dr. Klaus L. Wübbenhorst

Professor Dr. Klaus L. Wübbenhorst

Chief Executive Officer of GfK se

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After a strong price upturn to the end of 2010, GfK shares moved sideways at between EUR 36 and EUR 40 in the first half of the year. At the end of the reporting period, the shares closed at EUR 36.40, down slightly by -3.2% on the opening price on the first trading day in the current year. The Dow Jones Euro Stoxx Media was also marginally down, while the DAX and SDAX recorded small gains. On February 2, GfK shares posted a new ten-year high at EUR 41.15.

However, GfK shares were also unable to escape the effects of the dislocations seen on the global stock markets since the beginning of August and on August 9 recorded its lowest price in the year to date at EUR 27.13. Since then, the shares have rebounded slightly although volatility remains high.

In February, Bankhaus Hauck & Aufhäuser extended its coverage to include GfK with a buy recom-mendation. As of the end of the first six months, 14 analysts were covering GfK shares. Of these, nine recommended the stock as “buy”, four rated it as a “hold” and only one as a “sell”. The ratings by analysts therefore improved during the reporting period (December 2010: eight “buys”, six “holds” and one “sell”). Studies by other analysts are being prepared.

As at the end of June, the proportion of shares in free float was 43.9%. At this time, 0.4% of the shares were held by the GfK Management Board and Supervisory Board, 20.9% by institutional investors and 22.6% by private investors.

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G fK share performance

GfK share price performance from January 1, 2011, to June 30, 2011, in EUR1)

GfK SDAX DAX 30 Dow Jones Euro Stoxx Media

1) All values are indexed to the GfK share price, closing prices

41

40

39

38

37

36

35

34

33

Jan Feb March April May June

GfK share performance 2. Quarter 2010 2011

Change in %

1. Half Year 2010 2011

Change in %

2010

Share price at the end of the period in EUR 28.00 35.86 28.1% 28.00 36.40 30.0% 37.60

High in EUR 29.80 39.80 33.6% 29.80 41.15 38.1% 38.30

Low in EUR 25.26 35.70 41.3% 23.80 34.70 45.8% 23.80

Number of no-par shares at the end of the period 35,947,363 36,485,286 1.5% 36,274,090

Stock market capitalization at the end of the period in EUR million

1,006.5

1,328.1

31.9%

1,363.90

n First six months: sales up 8.3% to EUR 660.1 million, margin stands at 12.7% (same period in the previous year: 11.8%)

n Significant increase in adjusted operating income of 16.8% to EUR 83.9 million (previous year: EUR 71.9 million)

n Organic sales growth in all three sectors

n Regions: emerging markets with double-digit sales increase

n Successful placement of EUR 200 million bond issue considerably enhances maturity profile

n Net debt down by EUR 63.1 million like-for-like

n Forecast for the year confirmed despite uncertain economic developments

The GfK Group continued the pleasing growth trend already established in the first quarter of 2011 and increased sales in the first six months of 2011 by 8.3% to EUR 660.1 million (same period in the previous year: EUR 609.6 million). At 8.0 percentage points, a major share of growth was organic, with acquisitions contributing a further 1.2 percentage points. Exchange rate movements had a slight negative impact of -0.9 percentage points. Compared with the first half of the previous year, adjusted operating income rose by 16.8% to EUR 83.9 million. The margin was up from 11.8% in the same period of the previous year to 12.7%. The positive business development was carried by the Custom Research and Retail and Technology sectors.

GfK sales growth was particularly dynamic in the regions Latin America and Central and Eastern Europe. The regions with the highest level of sales – Western Europe/Middle East/Africa and Germany – also recorded double-digit growth rates. Consolidated total income increased 43.8% to EUR 45.7 million.

The order situation in the GfK Group remains very satisfactory. At the end of July, a total of 84.6% of sales expected for the whole of 2011 had already been booked or were in the order book. This was higher than the previous year’s level of 82.2%.

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G fK records excellent half-year performance

1. general economic situation

Economic developments were mixed in the first half of 2011. In its monthly report for July, the ECB described the economic situation as having been stabilized to the extent that the recovery has been increasingly self-sustaining. At the same time, a number of factors have slowed down economic growth. In the first quarter of the year, the natural disaster in Japan and political uncertainty in parts of the Arab world contributed to slowing down economic activity. In the meantime, the focus has shifted to concerns about the debt crisis in the eurozone and the USA and the politicians’ difficulties in responding appropriately to these problems. The announcement of budget consolidation has been perceived as an obstacle to economic growth. In this challenging environment, economic concerns have been exacerbated by the disappointing quarterly results of some US companies. Although companies in many emerging markets are producing close to capacity, this may in turn create greater inflationary pressure. Within Europe, developments have also been varied.

2. economic and financial development in the gfk group

In the second quarter of 2011, the GfK Group achieved a considerable upturn in sales and income year-on-year and continued the pleasing trend of the first quarter. GfK generated Sales of EUR 660.1 million in the first six months of 2011. This represents total sales growth of 8.3% on the same period in the previous year, with organic growth of 8.0 percentage points accounting for the major share. As a result, GfK has once again outperformed its key competitors and gained market shares. Acquisitions pushed up sales by 1.2 percentage points while currency fluctuations reduced growth by 0.9 percent-age points. All three sectors contributed to organic sales growth.

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GfK Group: key figures

in Millionen Euro

2. Quarter 2010

2. Quarter 2011

Change in %

1. Half Year 2010

1. Half Year 2011

Change in %

Sales 328.7 349.9 6.4 609.6 660.1 8.3

EBITDA (published in 2010)1

51.1 (47.3)

62.6 22.4 82.3 (78.2)

101.4 23.2

Adjusted operating income 46.6 53.5 14.8 71.9 83.9 16.8

Margin in percent2) 14.2 15.3 11.8 12.7

Operating income (published in 2010)1

37.3 (33.6)

48.7 30.4 56.1 (52.0)

73.6 31.2

EBIT (published in 2010)1

38.2 (34.4)

49.8 30.3 57.5 (53.5)

76.2 32.4

Other financial income / expenses (published in 2010)1

– 5.9 (– 2.2)

– 5.4 8.2 – 10.7 (– 6.7)

– 6.3 41.4

Consolidated total income 22. 0 30.7 39.9 31.8 45.7 43.8

Free cash flow after acquisitions, other investments and asset disposals

23.7

24.5

3.1

12.7

23.3

83.4

Earnings per share in EUR 0.52 0.75 44.2 0.75 1.07 42.7

Adjusted earnings per share in EUR3 (published in 2010)1

0.78 (0.89)

0.88 12.8 1.19 (1.31)

1.36 14.3

1) Starting from Q1/2011, currency exchange gains and losses resulting from financial transactions are reclassified from other operating income / expenses to other financial income / expenses; This results in changes in the figures for the previous year. The figures are reported to facilitate a comparison.

2) Adjusted operating income in relation to sales3) Consolidated total income attributable to equity holders of the parent plus highlighted items divided by the weighted average number of shares in the

reporting period

Interim management report

Adjusted operating income (hereinafter: income) rose even more sharply than sales. In the first half of 2011, adjusted operating income was up to EUR 83.9 million, which represents an increase of 16.8% on the same period of the previous year. In organic terms, growth in income amounted to as much as 18.0%. Acquisitions and currency effects marginally reduced income by 0.3 and 0.9 percentage points respectively.

Within the sectors, the trend from the first quarter continued with the Custom Research sector generating EUR 24.2 million and therefore making a profit contribution of 23.9%. Retail and Technology, the sector generating the highest profits in the GfK Group, also posted an upturn of 19.0% in income to EUR 56.3 million. Only the growth trend in the Media sector lagged behind expectations.

The Margin of the GfK Group rose to 12.7% in the first six months of 2011 compared with 11.8% in the same period of the previous year. The margin recorded in the second quarter was 15.3% after 14.2% in the corresponding quarter of the previous year.

Like its competitors, the GfK Group uses adjusted operating income as a key performance indicator. The explanations regarding business performance using the adjusted operating income 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. Adjusted operating income is determined by eliminating expenses and income items of the sectors and the Group that distort the evaluation of operating earnings power from operating income. These expenses and income are referred to as highlighted items and decreased considerably in the first half of 2011 to EUR -10.4 million, following a figure of EUR -15.8 million in the same period of the previous year.

The individual components of highlighted items developed as follows:

n In the first six months, reorganization expenses totaling EUR 1.5 million (previous year: EUR 3.1 million) were incurred for the BISS fitness and efficiency program, which will be com-pleted on schedule in the current year. These are reported under Expenses in connection with reorganization and business combinations.

n Amortization of disclosed hidden reserves from purchase price allocation (PPA) declined in the reporting period to EUR 5.1 million compared with the like-for-like figure of EUR 6.0 million. Any unscheduled amortization is applied regularly at the end of each financial year.

n Personnel expenses for share-based payment and long-term incentives amounted to EUR 3.5 million, which is at approximately the previous year’s level of EUR 3.4 million.

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Adjusted operating income1)

In EUR ’000

1. Quarter 2010 published

1. Quarter 2010 reclassified

1. Quarter 2011

Operating income 52,012 56,074 73,556

Expenses and income in connection with reorganization and business combinations

3,055

3,055

1,537

Amortization and impairment of additional assets on acquisitions 5,980 5,980 5,067

Personnel expenses for share-based payments and long-term incentives

3,383

3,383

3,495

Remaining other operating income – 12,617 – 6,638 – 7,013

Remaining other operating expenses 20,079 10,038 7,301

Adjusted operating income 71,892 71,892 83,943

1) Rounded

n The balance of Remaining other operating income and Other operating expenses was EUR -0.3 million after EUR -3.4 million in the previous year. This amount is impacted primarily by the profits already reported in the first quarter from the deconsolidation of a subsidiary, in which a stake was sold.

In the period from January to June 2011, EBITDA increased by EUR 19.1 million to EUR 101.4 million (previous year: EUR 82.3 million).

Operating income was improved by 31.2% year-on-year from EUR 56.1 million to EUR 73.6 million.

At EUR 2.6 million, Income from participations climbed significantly compared with EUR 1.5 million in the same quarter of the previous year.

EBIT totaled EUR 76.2 million. It rose by a pleasing 32.4% year-on-year to EUR 57.5 million.

The Other financial result, which represents the balance of other financial income and other financial expenses, was improved to EUR -6.3 million (previous year: EUR -10.7 million). Two opposite trends impacted in this respect. Other financial income was down from EUR 12.6 million in the previous year to EUR 8.6 million. However, at the same time, the fall in other financial expenses was even sharper from EUR -23.3 million to EUR -14.8 million. Starting with the first quarter of 2011, currency gains and losses resulting from financial transactions have been reclassified from other result to the financial result in accordance with IFRS. This provides more appropriate reporting of the relevant items.

Current tax expenses rose from EUR 19.4 million in the same quarter of the previous year to EUR 21.5 million. The Tax ratio increased from 32.1% in the previous year to 34.6%. As already explained in the last quarterly report, this rise stems from the fact that certain tax expenses which were previously deductible are no longer recognized as such. As a result, the US dollar-related measurement of a cross-currency swap produced deferred tax expenses. This swap is expected to run to the end of 2012. Without this effect, the tax ratio would have decreased to 29.2%.

In the first six months of the year, Income attributable to minority interests was up by EUR 2.0 million to EUR 6.7 million compared with the previous year.

Basic and diluted Earnings per share for the first time exceeded the one euro mark after just six months of the year and amounted to EUR 1.07 (previous year: EUR 0.75). As at June 30, 2011, the total number of GfK SE shares in circulation was 36,485,286. The slightly higher number was due to the exercise of stock options. The program will end this year.

To increase comparability with its peer group, GfK has additionally published Adjusted earnings per share since the 2009 annual report. This is the consolidated total income attributable to the share-holders of the parent company plus the highlighted items divided by the average number of shares in the reporting period. As at the end of the reporting period, adjusted earnings per share totaled EUR 1.36 (previous year: EUR 1.19).

3. cash flow and investment

Cash flow from operating activities for the first six months of 2011 totaled EUR 53.5 million after EUR 64.0 million in the previous year. The decline was essentially attributable to three factors. Firstly, bonuses which had been deferred in the previous year were now paid out. Equally, profit participa-tions under the long-term incentive program (LTIP) were paid out. These increased as a result of the strong financial year in 2010. The payment is always made in the second quarter of the year. Further-more, as business picked up after the 2009 crisis year, commitments under orders in progress (advance payments) rose more rapidly at the beginning of 2010 than in the first half of 2011.

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Cash outflows from Investing activity were down to EUR 30.2 million during the first six months of the current financial year (previous year: EUR 51.3 million). Investments in operating business were increased to EUR 23.3 million (previous year: EUR 20.0 million), in order to boost organic growth. At EUR 8.8 million (first half of 2010: EUR 31.4 million), acquisitions totaled a far lower volume than in the previous year.

Accordingly, Free cash flow after acquisitions, other investments and asset disposals increased significantly to EUR 23.3 million (previous year: EUR 12.7 million).

In the reporting period, cash inflow from Financing activity amounted to EUR 12.6 million (previous year: cash outflow of EUR 18.4 million). Since not all the funds raised as part of the bond issue could be used to pay off existing liabilities, the balance of bank loans raised and repaid produced a positive cash flow of EUR 37.2 million. There has been a sharp rise in the outflow of funds to minority shareholders from EUR 3.2 million to EUR 10.2 million. This increase resulted from the purchase price paid to increase the shareholdings in two companies in the first quarter of 2011, without a change in control.

At the end of the first six months of 2011, GfK had Cash and cash equivalents of EUR 89.3 million (June 30, 2010: EUR 40.9 million).

4. assets and capital structure

During the first six months of 2011, GfK’s total assets were up by EUR 21 million on the figure at year-end 2010 to EUR 1,671 million. This was primarily due to an increase in cash and cash equiva-lents as well as trade receivables. In contrast, goodwill diminished, due almost entirely to currency effects.

As at June 30, 2011, equity totaled EUR 659 million (December 31, 2010: EUR 677 million). The downturn essentially resulted from the currency-driven decline in other reserves. Conversely, retained earnings were slightly up. The equity ratio was a good 40% (December 31, 2010: 41%). As at June 30, 2011, the share capital of GfK SE amounted to approximately EUR 152 million.

On June 30, 2011, Net debt totaled EUR 431.1 million. This includes the balance of liabilities to banks plus pension obligations, liabilities under leases and other interest-bearing liabilities less cash and cash equivalents and short-term securities. In comparison with the end of the first quarter of 2011, net debt fell by EUR 17.5 million and compared with June 30, 2010 by as much as EUR 63.1 million. This amount includes liabilities from purchase price payments already agreed of EUR 59.2 million.

On April 11, 2011, GfK SE successfully launched its first ever bond issue worth EUR 200 million and significantly enhanced the maturity profile for the Group. It features a coupon of 5.0% and a maturity of five years. The issue was at a price of 99.246%. The proceeds were used to repay existing bank loans and reduce a syndicated credit line. The remaining amount will be used to redeem loan notes, which will be due in November 2011 and April 2012 respectively. As a result of the repayments, unutilized credit lines have risen and amounted to EUR 304.8 million at the end of June. In addition, the GfK Group had access to cash and cash equivalents totaling EUR 89.3 million at the end of June.

As at June 30, 2011, the ratio of modified net debt to EBITDA stood at 1.50 (June 30, 2010: 2.13) and the ratio of EBITDA to modified interest expenses was 15.02 (June 30, 2010: 16.44). The bond issue has enhanced the maturity profile for GfK, however, it has also increased the interest level.

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5. trends in the sectors

Custom Research: In the first half of 2011, the Custom Research sector posted a pleasing sales upturn. The sector increased sales by 8.5% year-on-year to EUR 399.4 million. Organic growth amounted to 7.9% with acquisitions contributing a further 1.9 percentage points, while currency effects had a slightly negative impact with -1.2%.

The key growth drivers in particular were the Western Europe/Middle East/Africa and Germany regions, as well as Central and Eastern Europe. Overall, the trend in sales was boosted by good business with clients in the automotive industry, while other sectors such as telecommunications and fast moving consumer goods (FMCG) also contributed to the rise in sales. In the Netherlands, a five-year contract for use of the GfK Media Efficiency Panel was signed with Google. In contrast, the trend in sales in North America was adversely affected by the weaker order intake at the start of the year.

Good capacity utilization had a positive impact on income which climbed by 23.9% in the first half of 2011 to EUR 24.2 million. This corresponded to organic growth of 27.5%. On the other hand, acquisitions and currency effects reduced income by 1.3 and 2.2 percentage points respectively. The margin improved from 5.3% in the previous year to 6.1%.

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Custom Research1)

In EUR million

1. Half Year2010 2011

Change in %

Sales 368.1 399.4 8.5

Adjusted operating income 19.5 24.2 23.9

Margin in per cent2) 5.3 6.1

1) Figures from the Management-Information System – rounded 2) Adjusted operating income in relation to sales

Structure of sales growth by sectors1)

Total

Custom Research

8.5 %

Retail and Technology

11.6 %

Media

– 1.2 %

Other2)

– 7.4 %

Total

8.3 %

1) Figures from the Management-Information System – rounded Currency Acquisitions Organic2) Other division

– 1.2% 1.9% 7.9%

0.1% 0.3%

1.0%

6.5% – 13.9%

8.0% – 0.9% 1.2%

11.2%

– 2.2%

Retail and Technology: Compared with the first half of 2010, with sales of EUR 192.9 million the Retail and Technology sector generated a very pleasing increase of 11.6%. At 11.2 percentage points, this growth was largely organic in nature with the currency effects of 0.3 percentage points and acquisitions of 0.1 percentage points playing only a minor role. The sector therefore again achieved the strongest sales performance within the GfK Group.

Sales increases were reported in all regions. In Germany, the expansion of several large international contracts in particular had a positive impact. These contracts were concluded in Germany and passed on within the GfK network. In China, GfK benefited especially from increased spending on market research by large companies and additional sales were also generated by greater regional coverage. Despite the disaster in March of this year there was no significant downturn in Japan.

The sector also saw a substantial improvement in income. The rise from EUR 47.4 million in the previous year to EUR 56.3 million represents an increase of 19.0%. As with sales growth, at 18.5 percentage points the upturn in income was largely organic.

The margin in the sector was 29.2%, again surpassing the high level of 27.4% already achieved in the first six months of 2010.

Media: While sales declined slightly in organic terms in the first quarter of the year, the second quarter saw a return to growth with a rise of 3.0% on an organic basis. In the first half of 2011 as a whole, sales in the Media advanced slightly by 1.0 percentage points in organic terms. However, at 2.2 percentage points the negative impact of currency effects led overall to a marginal fall in sales of 1.2% to EUR 65.3 million.

Sales increased in the Central and Eastern Europe region. In the second quarter, the company won a further new contract in the field of radio audience measurement in Romania.

Income was down year-on-year by EUR 0.9 million to EUR 6.9 million. The sector margin was 10.6% (previous year: 11.8%).

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Media1)

In EUR million

1. Half Year2010 2011

Change in %

Sales 66.1 65.3 – 1.2

Adjusted operating income 7.8 6.9 – 11.5



Retail and Technology1)

In EUR million

1. Half Year2010 2011

Change in %

Sales 172.8 192.9 11.6

Adjusted operating income 47.5 56.3 19.0



Other: The sectors are complemented by Other, which comprises, in particular, the head office services of GfK for its subsidiaries and other non-market research-related services.

In the first half of 2011, sales generated by the Other segment amounted to EUR 2.4 million (previous year: EUR 2.6 million). Income in the sector amounted to EUR-3.5 million compared with EUR-2.8 million in the first half of 2010.

6. regional trends

The GfK Group’s network of subsidiaries covers over 100 countries worldwide. In geographic terms, the business is divided into six regions: Germany, Western Europe/Middle East/Africa, Central and Eastern Europe, North America, Latin America as well as Asia and the Pacific. Apart from North America, all regions recorded double digit sales growth in the first half of 2011.

In Germany, sales generated by the GfK companies posted organic growth of a very good 10.0%, with acquisitions contributing a further 3.0 percentage points, making total sales of EUR 180.3 million.

Western Europe/Middle East/Africa is the strongest sales region with EUR 252.7 million. In the reporting period, sales improved by 10.1% of which 9.2 percentage points related to organic growth, while currency effects contributed 0.9 percentage points.

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Other1)

In EUR million

1. Half Year2010 2011

Change in %

Sales 2.6 2.4 – 7.4

Adjusted operating income – 2.8 – 3.5 – 23.7


Structure of sales growth in the regions1)

Total

Germany

13.0 %

Western Europe/ Middle East/Africa

10.1 %

Central and Eastern Europe

20.5 %

North America

– 11.0 %

Latin America

19.1 %

Asia and the Pacific

12.1 %

Total

8.3 %

1) Figures from the Management-Information System – rounded Currency Acquisitions Organic

3.0%

9.2%

– 2.1% 22.6%

2.1%

17.9%

– 0.9% 1.2% 8.0%

2.0% 0.4% 9.7%

0.9%

1.3%

10.0%

– 5.8%– 7.3%

The strongest growth in relative terms of 20.5% was recorded in the Central and Eastern Europe region. On an organic basis, growth was as high as 22.6%, while currency effects made a negative contribution of -2.1 percentage points.

In North America, GfK generated sales of EUR 96.8 million which equates to a decline of 11.0%. Most of this is due to currency effects which accounted for -7.3 percentage points, while organic growth stood at -5.8 percentage points. Acquisitions on the other hand increased sales in the region by 2.1 percentage points.

The GfK companies in Latin America achieved dynamic growth of 19.1% to generate total sales of EUR 27.2 million in the first six months of the current year (previous year: EUR 22.9 million). At 17.9 percentage points, growth was essentially organic in nature. Currency effects contributed a further 1.3 percentage points.

There was also a significant increase in sales to EUR 54.4 million in the Asia and the Pacific region. Of the overall growth of 12.1%, organic growth accounted for 9.7 percentage points and acquisitions, with currency effects contributing 0.4 and 2.0 percentage points respectively.

7. “own the future” – new corporate strategy focuses on global and digital customer requirements

On June 30, 2011, GfK presented its new corporate strategy – “Own the Future”. With it, the Group is responding to changing customer needs and the requirements of an increasingly globalized and digital world. With “Own the Future”, GfK is reinventing itself with effect from January 1, 2012 to ensure a successful future for the company and its clients.

As part of the strategy, GfK will make targeted investments in globally consistent products and solutions to key issues in its clients’ businesses. The Group’s presence will be strengthened in countries and regions with a significant market profile and attractive growth prospects. GfK will offer its clients convincing products and services for an increasingly digital world, based on a comprehen-sive innovation campaign. Ultimately, this will also facilitate even closer cooperation between the various departments in terms of acting as ONE GfK. As a result, coordinated solution packages across GfK’s entire services portfolio will be delivered to clients in all key global markets.

All our energy, knowledge and ingenuity is focused on achieving one goal: to understand consumers better than any other market research company. This is based on two new sectors with two clearly positioned complementary businesses.

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Regions: sales growth1)

EUR million

1. Half Year2010 2011

Change in %

Germany 159.6 180.3 13.0

Western Europe/Middle East/Africa 229.5 252.7 10.1

Central and Eastern Europe 40.3 48.6 20.5

North America 108.8 96.8 – 11.0

Latin America 22.9 27.2 19.1

Asia and the Pacific 48.5 54.4 12.1

Total 609.6 660.1 8.3


Our first new sector is Consumer Choices. It is a business that focuses on market sizing and trends in all major and increasingly convergent digital sales and information channels as well as media. Here, GfK’s aim is to deliver detailed, accurate and timely data on an international basis. At the same time, the goal is to further consolidate the Group’s market leadership in sales data on consumer goods. The Consumer Choices sector will represent GfK’s Retail and Technology business and the TV, radio and print measurement business from the Media sector. The combination of information from these two sources in conjunction with the global Retail and Technology network create an excellent basis for expanding our media services at global level.

Our second new sector will be Consumer Experiences. This business primarily explores consumers’ experiences, perceptions and attitudes through highly creative, robust and flexible methodologies. The sector will combine existing business in the Custom Research sector with the Ad hoc work done in the Media sector, creating new business and growth opportunities for Media’s ad hoc research.

Consumer Choices and Consumer Experiences stand for how consumers behave and how they feel. They are the natural evolution for GfK as a highly innovative, totally consumer-driven company which is at home in a globalized and digital world.

In the context of the new corporate strategy entitled “Own the Future”, the Management Board has also introduced long-term growth and income targets. By 2015, sales of around EUR 2 billion are to be achieved with 16% profit. The goal is to realize organic growth on a scale that considerably outper-forms the sector average.

8. number of employees

As of June 30, 2011, the GfK Group had 11,133 employees, 587 more than at the end of 2010. At the end of the first half of the year, the Group employed 9,162 staff outside Germany and 1,971 in Germany. The staff build-up took place primarily in the growth regions of Central and Eastern Europe, Asia and the Pacific as well as Latin America. Newly consolidated companies accounted for 151 employees. In the first six months of the current year, personnel expenses amounted to EUR 290.2 million (previous year: EUR 270.9 million). The personnel cost ratio, which expresses the ratio of personnel expenses to sales, decreased to 44.0% (previous year: 44.4%).

9. research and development

Together with nurago, GfK has been offering the option of cross-platform monitoring of user behavior on the internet using GfK Connected Life.dx since May 2011. This measures internet usage across PCs, laptops, smartphones, and in future also across tablets, and investigates the relationship between the different types of use. Survey participants are also asked directly about their attitudes and usage behavior on a regular basis. Unlike the usual forms of monitoring individual access channels, this consequently provides a comprehensive picture of internet usage and subsequent consumer decisions.

On behalf of GfK Media, nurago has also developed a new technology to measure consumption of TV content via digital streams. This is an important prerequisite for recording the consumption of TV offerings across all platforms on a user-centered basis.

In the UK, GfK NOP Media developed the GfK TV social TV app, the first GfK tool for the Apple iTunes store. The iPhone app enables TV viewers to evaluate and comment on the TV programs they are

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watching and to chat to family, friends or even third parties about the programs. GfK-TV is an experiment to test the collection and use of data from the social television communities that are currently emerging.

10. organization and administration

Petra Heinlein, the GfK SE Management Board member responsible for the Custom Research sector decided not to renew her contract of employment which ends on December 31, 2011. Heinlein, who has been with GfK for 26 years, was appointed to the Management Board in 2002 and for 2012 is aiming to fulfill a long-held ambition to move into politics. Dr. Arno Mahlert, Chairman of the Supervisory Board, and Professor Dr. Klaus L. Wübbenhorst, CEO of the GfK Group, regretfully respect this highly personal decision and thank Petra Heinlein for her extraordinary services to GfK and the Custom Research sector in particular.

When the new corporate strategy “Own the Future” is implemented on January 1, 2012, Debra A. Pruent will head up the Consumer Experiences sector and Dr. Gerhard Hausruckinger the Consumer Choices sector. The position of CEO will be assumed by Matthias Hartmann on January 1, 2012 at the latest; Pamela Knapp will continue in her role as Chief Financial Officer and Chief Personnel Officer. The Management Board will then comprise four members.

11. changes in participations in the second quarter of 2011

On June 1, GfK Custom Research Singapore acquired 49% of the shares in Thai market research company MarketWise. This acquisition strengthens GfK’s activities in South East Asia. The company will trade as GfK MarketWise from now on and is one of the leading full-service market research organizations in Thailand. Its main clients include AIA, GlaxoSmithKline, Hakuhodo, HSBC, Mercedes, Pepsi and the Department of Energy as well as other Thai government bodies.

The GfK Group increased its holding in the US American company Etilize from 51% to 75% at the beginning of May. Through Etilize, GfK’s Retail and Technology sector has the world’s largest and most comprehensive electronic catalogue for consumer durables, giving clients access to information worldwide on more than 9 million consumer durable items in 20 languages. This information includes marketing descriptions, videos and product manuals as well as a complete record of manufacturer article numbers. Etilize’s client base encompasses manufacturers, wholesalers and retailers, online shopping sites, search engines and price comparison platforms.

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Changes in the GfK Network during the second quarter of 2011

Company

Reason for investment

Shareholding in %

Sector

Country

GfK MarketWise Acquisition 49 Custom Research Asia and the Pacific

Etilize Share increase from 51 to 75 Retail and Technology North America

12. biss fitness and efficiency program

The Group-wide fitness and efficiency program BISS is on schedule and will have fully met its objectives by the end of this financial year. As of the end of the first half of 2011, 20 projects had been successfully completed. EBIT improved by EUR 18.2 million in the first half of the year as a result of BISS. Compared with the contribution of EUR 13.4 million in the first half of 2010, this is a further rise of EUR 4.8 million. Restructuring costs of EUR 1.5 million were reported under highlighted items.

13. important events after the reporting date of june 30, 2011

After Professor Dr. Klaus L. Wübbenhorst, the longstanding CEO of GfK SE, advised the Supervisory Board that he would not be extending his contract which runs until the end of July 2012 for personal reasons, on August 1, 2011 Matthias Hartmann was appointed to take over from Professor Wübben-horst on January 1, 2012 at the latest. In his present position as Global Head of Strategy and Indus-tries, the business management graduate is responsible for the global strategy and direction of IBM Global Services, the consulting arm of the IBM Group.

On August 12, 2011, GfK acquired a 25% stake (25% of the shares are held by The Nielsen Company and 50% by the two founding partners) in the US company Media Behavior Institute (MBI). Based in New York, MBI will provide 2,000 Americans with smartphones that have a special app as part of its syndicated USA TouchPoints survey. The survey measures the total media usage of consumers at half-hour intervals and combines this data with lifestyle habits, for example up-to-date information about location, person, activity and mood. The comprehensive measurements are virtually in real-time and thus enable the media, advertising companies and agencies to align advertising messages to their target groups with great accuracy.

14. marketing and corporate communications

The Corporate Communications department has Group-wide responsibility for the external and internal communications of the GfK Group and is divided into three teams: Public Relations, Corporate Design/Corporate Identity and Investor Relations.

GfK again ranked second out of the SDAX listed companies in the German Investor Relations Awards 2011, which evaluates the quality of financial market communications. The prize is bestowed on the basis of a survey of over 800 fund managers and analysts from 19 European countries working for around 300 fund companies, banks, brokers and insurance companies. The criteria of transparency and accuracy in reporting, reliability of forecasts and industry expertise are included in the evaluation.

15. opportunity and risk position

At the moment, a series of factors is emerging that in the second half of the year could lead to a slowdown in the growth trend which has remained stable so far. Despite the considerable improve-ment in sales and income in the reporting period, the risk position of the GfK Group is affected by the uncertainty relating to the economic environment. Apart from these macroeconomic conditions, there are no material changes compared with the opportunity and risk position of the GfK Group described in the Group Management Report as at December 31, 2010. No risks have been identified that could jeopardize the continued existence of the Group.

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*The outlook contains predictive statements on future 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 statements of a predictive nature. Such predictive

statements contain comments on the anticipated development sales

proceeds and income for 2010. Such statements are subject to risks and

uncertainties, for example, economic effects such as exchange rate

fluctuations 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 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.

If the global economic situation should worsen dramatically and severely affect the business of GfK clients, this could also impact on GfK.

The GfK business model is subject to seasonally related fluctuations. Traditionally sales and income trends are significantly better in the second half of the year than in the first six months, given that the year-end business is highly relevant to clients’ operations. No reliable forecast can be made as to the extent to which this effect will occur in the current financial year.

Thanks to its global network as a full-service provider, the GfK Group is well-positioned. GfK meets new challenges in the market research industry with an innovative portfolio of products and services tailored to client requirements.

16. outlook*

The combination of the global debt crisis and associated fears of a slowdown in the economy have recently led to dramatic slumps on the stock markets. Whether this will be followed by a similarly strong impact on the real economy is currently hard to predict. ZEW economic expectations fell in July for the fifth time in succession as a result of the debt problems in several European countries in particular. At the same time, the Ifo business climate index was also down, having risen slightly in June. On the other hand, in its monthly report in July 2011 the ECB takes the view that the adverse impact on the global economy is primarily due to temporary factors and expects the economy to gain momentum once again. The International Monetary Fund (IMF) trimmed its forecast for global development by 0.1 percentage points in June but is still expecting growth of 4.3%. The downgrade in expectations for the USA of 0.3 percentage points to 2.5% was somewhat more pronounced, but the forecast for Germany was raised by as much as 0.7 percentage points to 3.2%. In its July report the Bundesbank also talked of a favorable medium-term assessment for economic development in Germany. However, both statements were made before the latest developments on the stock markets.

The well-filled order books, with 84.6% of the sales expected for 2011 as a whole posted or included in the order books at the end of July, also point to another successful financial year for GfK in 2011. The figure is significantly higher than the previous year’s level of 82.2%. GfK therefore confirms the guidance it gave at the start of the financial year, despite the severe dislocations in the capital and currency markets. The company expects organic sales growth of 5% to 6% in financial year 2011 based on the companies included in the scope of consolidation at the start of the year. All three sectors will contribute to this with positive organic growth in sales. Despite planned investments, especially in the digital segment and in growth regions, as well as the expenses for implementing the “Own the Future” strategy, GfK is setting itself a challenging target of achieving a margin of at least 14.3%.

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Consolidated income statement of GfK Groupfrom April 1 to June 30, 2011 in EUR ’000 (according to IFRS, not audited)

Q2 2010 published

% of sales

Q2 2010 reclassified

% of sales

Q2 2011

% of sales

abs.

%

Sales 328,746 100.0% 328,746 100.0% 349,898 100.0% 21,152 6.4%

Cost of sales – 219,643 – 66.8% – 219,643 – 66.8% – 231,426 – 66.1% – 11,783 5.4%

Gross income from sales 109,103 33.2% 109,103 33.2% 118,472 33.9% 9,369 8.6%

Selling and general administrative expenses – 68,906 – 21.0% – 68,906 – 21.0% – 69,082 – 19.7% – 176 0.3%

Other operating income 7,553 2.3% 3,079 0.9% 2,848 0.8% – 231 – 7.5%

Other operating expenses – 14,177 – 4.3% – 5,932 – 1.8% – 3,560 – 1.0% 2,372 – 40.0%

Operating income1) 33,573 10.2% 37,344 11.4% 48,678 13.9% 11,334 30.4%

Income from associates 841 0.3% 841 0.3% 1,026 0.3% 185 22.0%

Other income from participations 15 0.0% 15 0.0% 76 0.0% 61 406.7%

ebit 34,429 10.5% 38,200 11.6% 49,780 14.2% 11,580 30.3%

Other financial income 4,466 1.4% 8,940 2.7% 1,778 0.5% – 7,162 – 80.1%

Other financial expenses – 6,624 – 2.0% – 14,869 – 4.5% – 7,221 – 2.1% 7,648 – 51.4%

Income from ongoing business activity 32,271 9.8% 32,271 9.8% 44,337 12.7% 12,066 37.4%

Tax on income from ongoing business activity – 10,311 – 10,311 – 13,606 – 3,295 32.0%

Consolidated total income 21,960 6.7% 21,960 6.7% 30,731 8.8% 8,771 39.9%

Attributable to equity holders of the parent: 18,823 5.7% 18,823 5.7% 27,308 7.8% 8,485 45.1%

Attributable to minority interests: 3,137 1.0% 3,137 1.0% 3,423 1.0% 286 9.1%


Basic earnings per share (eur) 0.52 0.52 0.75 0.23 44.2%

Diluted earnings per share (eur) 0.52 0.52 0.75 0.23 44.2%

Adjusted earnings per share (eur) 0.89 0.78 0.88 0.10 12.8%

For information:

Personnel expenses 138,352 42.1% 138,352 42.1% 146,947 42.0% 8,595 6.2%

Depreciation/amortization 12,892 3.9% 12,892 3.9% 12,774 3.7% – 118 – 0.9%

ebitda 47,321 14.4% 51,092 15.5% 62,554 17.9% 11,462 22.4%

Change

22_GfK < < back


Consolidated income statement of GfK Groupfrom January 1 to June 30, 2011 in EUR ’000 (according to IFRS, not audited)

H1 2010 published

% of sales

H1 2010 reclassified

% of sales

H1 2011

% of sales

abs.

%

Sales 609,635 100.0% 609,635 100.0% 660,059 100.0% 50,424 8.3%

Cost of sales – 419,532 – 68.8% – 419,532 – 68.8% – 450,226 – 68.2% – 30,694 7.3%

Gross income from sales 190,103 31.2% 190,103 31.2% 209,833 31.8% 19,730 10.4%

Selling and general administrative expenses – 130,505 – 21.4% – 130,505 – 21.4% – 135,984 – 20.6% – 5,479 4.2%

Other operating income 12,617 2.1% 6,638 1.1% 7,013 1.1% 375 5.6%

Other operating expenses – 20,203 – 3.3% – 10,162 – 1.7% – 7,306 – 1.1% 2,856 – 28.1%

Operating income1) 52,012 8.5% 56,074 9.2% 73,556 11.1% 17,482 31.2%

Income from associates 1,459 0.2% 1,459 0.2% 1,667 0.3% 208 14.3%

Other income from participations 15 0.0% 15 0.0% 966 0.1% 951 6340.0%

ebit 53,486 8.8% 57,548 9.4% 76,189 11.5% 18,641 32.4%

Other financial income 6,630 1.1% 12,609 2.1% 8,554 1.3% – 4,055 – 32.2%

Other financial expenses – 13,300 – 2.2% – 23,341 – 3.8% – 14,839 – 2.2% 8,502 – 36.4%

Income from ongoing business activity 46,816 7.7% 46,816 7.7% 69,904 10.6% 23,088 49.3%

Tax on income from ongoing business activity – 15,024 – 15,024 – 24,182 – 9,158 61.0%


Attributable to equity holders of the parent: 27,084 4.4% 27,084 4.4% 39,069 5.9% 11,985 44.3%

Attributable to minority interests: 4,708 0.8% 4,708 0.8% 6,653 1.0% 1,945 41.3%


Basic earnings per share (eur) 0.75 0.75 1.07 0.32 42.7%

Diluted earnings per share (eur) 0.75 0.75 1.07 0.32 42.7%

Adjusted earnings per share (eur) 1.31 1.19 1.36 0.17 14.3%

For information:

Personnel expenses 270,863 44.4% 270,863 44.4% 290,195 44.0% 19,332 7.1%

Depreciation/amortization 24,737 4.1% 24,737 4.1% 25,169 3.8% 432 1.7%

ebitda 78,223 12.8% 82,285 13.5% 101,358 15.4% 19,073 23.2%

1) Reconciliation to internal management indicator „adjusted operating income“ amounting to EUR 83,943 thousand (2010: EUR 71,892 thousand) as indicated on page 10.

Change

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Consolidated cash flow statementfor the period January 1 to June 30, 2011 in EUR ’000 (according to IFRS, not audited)

H1 2010

H1 2011

Consolidated total income 31,792 45,722

Write-downs/write-ups of intangible assets 13,195 13,238

Write-downs/write-ups of tangible assets 11,542 11,931

Write-downs/write-ups of other financial assets 582 0

Total write-downs/write-ups 25,319 25,169

Increase/decrease in inventories and trade receivables – 27,986 – 17,970

Increase/decrease in trade payables and liabilities on orders in progress 29,972 12,812

Changes in other assets not attributable to investing or financing activity – 4,935 – 6,442

Changes in other liabilities not attributable to investing or financing activity – 1,855 – 18,425

Profit/loss from the disposal of non-current assets 139 – 1,374

Non-cash income from associates – 1,185 – 1,302

Increase/decrease in long-term provisions 3,061 4,068

Other non-cash income/expenses 6,580 – 4,182

Net interest income 9,062 7,892

Change in deferred taxes – 4,421 2,759

Current income tax expense 19,386 21,488

Taxes paid – 20,953 – 16,705

a) Cash flow from operating activity 63,976 53,510

Cash outflows for investments in intangible assets – 10,130 – 13,560

Cash outflows for investments in tangible assets – 9,902 – 9,729

Cash out-/inflows for acquisition of consolidated companies and other business units, net of cash acquired – 27,955 – 8,836

Cash outflows for other financial assets – 4,184 – 17

Cash inflows from disposal of intangible assets 58 171

Cash inflows from disposal of tangible assets 627 886

Cash inflows from the sales of consolidated companies and other business units, net of cash disposed of 0 600

Cash inflows from disposal of other financial assets 220 291

b) Cash flow from investing activity – 51,266 – 30,194

Cash inflows from equity contributions 0 7,071

Dividend payments to equity holders of parent – 10,784 – 17,412

Dividend payments to minority interests and other equity transactions – 3,174 – 10,183

Cash inflows from loans raised 106,350 206,730

Cash outflows for repayment of loans – 103,440 – 169,513

Interest received 1,388 944

Interest paid – 8,692 – 5,032

c) Cash flow from financing activity – 18,352 12,605

Changes in cash and cash equivalents (total of a), b) and c)) – 5,642 35,921

Changes in cash and cash equivalents owing to exchange gains/losses and valuation 4,188 – 1,415

Cash and cash equivalents at the beginning of the period 42,361 54,755

Cash and cash equivalents at the end of the period 40,907 89,261

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Calculation of net debt

31.12.2010

30.06.2011

Liquid funds 54,755 89,261

Short-term securities and time deposits 1,382 1,389

Liquid funds, short-term securities and time deposits 56,137 90,650

Liabilities to banks – 348,236 – 383,505

Pension obligations – 55,672 – 56,336

Liabilities from finance leases – 11,498 – 10,006

Other interest-bearing liabilities – 69,187 – 71,911

Interest-bearing liabilities – 484,593 – 521,758

Net debt – 428,456 – 431,108

Thereof: put options – 60,231 – 59,176

Without put options – 368,225 – 371,932

Calculation of free cash flow

30.06.2010

30.06.2011

Consolidated total income 31,792 45,722

Write-downs/write-ups of intangible assets 13,195 13,238

Write-downs/write-ups of tangible assets 11,542 11,931

Write-downs/write-ups of other financial assets 582 0

Others 6,865 – 17,381

Cash flow from operating activity 63,976 53,510

Capital expenditure – 20,032 – 23,289

Free cash flow before acquisitions, other investments and asset disposals 43,944 30,221

Acquisitions – 31,370 – 8,836

Other financial investments – 769 – 17

Asset disposals 905 1,948

Free cash flow after acquisitions, other investments and asset disposals 12,710 23,316

Calculation of net debt and free cash flowin EUR ’000 (according to IFRS, not audited)

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31.12.2010

30.06.2011

AssetsGoodwill 838,748 815,742

Other intangible assets 210,997 206,397

Tangible assets 108,387 105,235

Investments in associates 17,318 14,566

Other financial assets 11,015 10,821

Deferred tax assets 38,901 43,277

Non-current other assets and deferred items 6,826 7,425

Non-current assets 1,232,192 1,203,463

Trade receivables 315,569 326,197

Current income tax assets 13,307 11,402

Securities and fixed-term deposits 1,382 1,389

Cash and cash equivalents 54,755 89,261

Current other assets and deferred items 32,703 38,893

Current assets 417,716 467,142

Assets 1,649,908 1,670,605

Consolidated balance sheet as of June 30, 2011 in EUR ’000 (according to IFRS, not audited)

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31.12.2010

30.06.2011

Equity and liabilitiesSubscribed capital 151,157 152,078

Capital reserve 206,868 213,018

Retained earnings 329,357 346,906

Other reserves – 45,626 – 87,510

Equity attributable to equity holders of the parent 641,756 624,492

Minority interests 35,702 34,951

Equity 677,458 659,443

Long-term provisions 81,965 77,552

Non-current interest-bearing financial liabilities 326,324 320,737

Deferred tax liabilities 72,175 77,873

Non-current other liabilities and deferred items 4,456 3,605

Non-current liabilities 484,920 479,767

Short-term provisions 16,531 18,276

Current income tax liabilities 25,919 28,230

Current interest-bearing financial liabilities 102,597 144,685

Trade payables 66,103 60,968

Liabilities on orders in progress 136,696 150,372

Current other liabilities and deferred items 139,684 128,864

Current liabilities 487,530 531,395

Liabilities 972,450 1,011,162

Equity and liabilities 1,649,908 1,670,605

Equity ratio 41.1% 39.5%

Consolidated balance sheet as of June 30, 2011 in EUR ’000 (according to IFRS, not audited)

GfK_27forward > >

Consolidated statement of comprehensive incomeIncome for the period January 1 to June 30, 2011 in EUR ’000 (according to IFRS, not audited)

H1 2010

H1 2011

Pre-tax amount

Tax effect Post-tax amount

Pre-tax amount

Tax effect Post-tax amount

Consolidated total income 46,816 – 15,024 31,792 69,904 – 24,182 45,722

Currency translation differences 98,166 0 98,166 – 45,592 0 – 45,592

Valuation of net investment hedges for foreign subsidiaries

– 7,264

2,286

– 4,978

2,524

– 794

1,730

Changes in fair value of cash flow hedges (effective portion)

128

– 40

88

1,293

– 407

886

Changes in fair value of securities available-for-sale

– 1

0

– 1

0

0

0

Actuarial gains/losses on defined benefit plans – 1,156 183 – 973 – 407 56 – 351

Other comprehensive income 89,873 2,429 92,302 – 42,182 – 1,145 – 43,327

Total comprehensive income 136,689 – 12,595 124,094 27,722 – 25,327 2,395

Attributable to:

Equity holders of the parent 116,883 – 3,165

Minority interests 7,211 5,560

Total comprehensive income 124,094 2,395

28_GfK < < back


Consolidated equity change statement of G fK Group for the period January 1 to June 30, 2011 in EUR ’000 (according to IFRS, not audited)

Attributable to equity holders Attributable to equity holders of the parent of the parent

Other reserves

Subscribed capital Capital reserve

Retained earnings

Translation reserve

Hedging reserve

Fair value reserve

Total

Minority interests

Total equity

Balance at January 1, 2010 150,297 197,278 277,467 – 118,163 17,773 – 12 524,640 28,374 553,014Total comprehensive income for the periodConsolidated total income 27,084 27,084 4,708 31,792Other comprehensive income Foreign currency translation differences 95,707 95,707 2,459 98,166 Net gain/loss on hedge of net investment in foreign operation – 4,978 – 4,978 – 4,978 Effective portion of changes in fair value of cash flow hedges, net of tax 88 88 88 Net change in fair value of available-for-sale financial assets, net of tax – 1 – 1 – 1 Defined benefit plan actuarial gains and losses, net of tax – 1,017 – 1,017 44 – 973Total other comprehensive income 0 0 – 1,017 95,707 – 4,890 – 1 89,799 2,503 92,302Total comprehensive income for the period 0 0 26,067 95,707 – 4,890 – 1 116,883 7,211 124,094Transactions with owners, recorded directly in equity Dividends to shareholders – 10,784 – 10,784 – 3,174 – 13,958Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 608 – 608 – 514 – 1,122 Other changes – 144 – 144 288 144Total transactions with owners, recorded directly in equity 0 0 – 11,536 0 0 0 – 11,536 – 3,400 – 14,936

Balance at June 30, 2010 150,297 197,278 291,998 – 22,456 12,883 – 13 629,987 32,185 662,172Balance at July 1, 2010 150,297 197,278 291,998 – 22,456 12,883 – 13 629,987 32,185 662,172Total comprehensive income for the periodConsolidated total income 44,567 44,567 7,625 52,192Other comprehensive income Foreign currency translation differences – 39,620 – 39,620 – 556 – 40,176 Net gain/loss on hedge of net investment in foreign operation 3,244 3,244 3,244 Effective portion of changes in fair value of cash flow hedges, net of tax 338 338 338 Net change in fair value of available-for-sale financial assets, net of tax – 2 – 2 – 2 Defined benefit plan actuarial gains and losses, net of tax – 7,059 – 7,059 6 – 7,053Total other comprehensive income 0 0 – 7,059 – 39,620 3,582 – 2 – 43,099 – 550 – 43,649Total comprehensive income for the period 0 0 37,508 – 39,620 3,582 – 2 1,468 7,075 8,543Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders 0 – 3,366 – 3,366 Issuing of ordinary shares (stockoptions) 860 9,590 10,450 10,450Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 15 – 15 0 – 15 Other changes – 134 – 134 – 192 – 326Total transactions with owners, recorded directly in equity 860 9,590 – 149 0 0 0 10,301 – 3,558 6,743

Balance at December 31, 2010 151,157 206,868 329,357 – 62,076 16,465 – 15 641,756 35,702 677,458Balance at January 1, 2011 151,157 206,868 329,357 – 62,076 16,465 – 15 641,756 35,702 677,458Total comprehensive income for the periodConsolidated total income 39,069 39,069 6,653 45,722Other comprehensive income Foreign currency translation differences – 44,500 – 44,500 – 1,092 – 45,592 Net gain/loss on hedge of net investment in foreign operation 1,730 1,730 1,730 Effective portion of changes in fair value of cash flow hedges, net of tax 886 886 886 Net change in fair value of available-for-sale financial assets, net of tax 0 0 0 Defined benefit plan actuarial gains and losses, net of tax – 350 – 350 – 1 – 351Total other comprehensive income 0 0 – 350 – 44,500 2,616 0 – 42,234 – 1,093 – 43,327Total comprehensive income for the period 0 0 38,719 – 44,500 2,616 0 – 3,165 5,560 2,395Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders – 17,412 – 17,412 – 4,539 – 21,951 Issuing of ordinary shares (stockoptions) 921 6,150 7,071 7,071Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 4,924 – 4,924 – 1,751 – 6,675 Other changes 1,166 1,166 – 21 1,145Total transactions with owners, recorded directly in equity 921 6,150 – 21,170 0 0 0 – 14,099 – 6,311 – 20,410

Balance at June 30, 2011 152,078 213,018 346,906 – 106,576 19,081 – 15 624,492 34,951 659,443

GfK_29forward > >

Attributable to equity holders Attributable to equity holders of the parent of the parent

Other reserves

Subscribed capital Capital reserve

Retained earnings

Translation reserve

Hedging reserve

Fair value reserve

Total

Minority interests

Total equity

Balance at January 1, 2010 150,297 197,278 277,467 – 118,163 17,773 – 12 524,640 28,374 553,014Total comprehensive income for the periodConsolidated total income 27,084 27,084 4,708 31,792Other comprehensive income Foreign currency translation differences 95,707 95,707 2,459 98,166 Net gain/loss on hedge of net investment in foreign operation – 4,978 – 4,978 – 4,978 Effective portion of changes in fair value of cash flow hedges, net of tax 88 88 88 Net change in fair value of available-for-sale financial assets, net of tax – 1 – 1 – 1 Defined benefit plan actuarial gains and losses, net of tax – 1,017 – 1,017 44 – 973Total other comprehensive income 0 0 – 1,017 95,707 – 4,890 – 1 89,799 2,503 92,302Total comprehensive income for the period 0 0 26,067 95,707 – 4,890 – 1 116,883 7,211 124,094Transactions with owners, recorded directly in equity Dividends to shareholders – 10,784 – 10,784 – 3,174 – 13,958Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 608 – 608 – 514 – 1,122 Other changes – 144 – 144 288 144Total transactions with owners, recorded directly in equity 0 0 – 11,536 0 0 0 – 11,536 – 3,400 – 14,936

Balance at June 30, 2010 150,297 197,278 291,998 – 22,456 12,883 – 13 629,987 32,185 662,172Balance at July 1, 2010 150,297 197,278 291,998 – 22,456 12,883 – 13 629,987 32,185 662,172Total comprehensive income for the periodConsolidated total income 44,567 44,567 7,625 52,192Other comprehensive income Foreign currency translation differences – 39,620 – 39,620 – 556 – 40,176 Net gain/loss on hedge of net investment in foreign operation 3,244 3,244 3,244 Effective portion of changes in fair value of cash flow hedges, net of tax 338 338 338 Net change in fair value of available-for-sale financial assets, net of tax – 2 – 2 – 2 Defined benefit plan actuarial gains and losses, net of tax – 7,059 – 7,059 6 – 7,053Total other comprehensive income 0 0 – 7,059 – 39,620 3,582 – 2 – 43,099 – 550 – 43,649Total comprehensive income for the period 0 0 37,508 – 39,620 3,582 – 2 1,468 7,075 8,543Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders 0 – 3,366 – 3,366 Issuing of ordinary shares (stockoptions) 860 9,590 10,450 10,450Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 15 – 15 0 – 15 Other changes – 134 – 134 – 192 – 326Total transactions with owners, recorded directly in equity 860 9,590 – 149 0 0 0 10,301 – 3,558 6,743

Balance at December 31, 2010 151,157 206,868 329,357 – 62,076 16,465 – 15 641,756 35,702 677,458Balance at January 1, 2011 151,157 206,868 329,357 – 62,076 16,465 – 15 641,756 35,702 677,458Total comprehensive income for the periodConsolidated total income 39,069 39,069 6,653 45,722Other comprehensive income Foreign currency translation differences – 44,500 – 44,500 – 1,092 – 45,592 Net gain/loss on hedge of net investment in foreign operation 1,730 1,730 1,730 Effective portion of changes in fair value of cash flow hedges, net of tax 886 886 886 Net change in fair value of available-for-sale financial assets, net of tax 0 0 0 Defined benefit plan actuarial gains and losses, net of tax – 350 – 350 – 1 – 351Total other comprehensive income 0 0 – 350 – 44,500 2,616 0 – 42,234 – 1,093 – 43,327Total comprehensive income for the period 0 0 38,719 – 44,500 2,616 0 – 3,165 5,560 2,395Transactions with owners, recorded directly in equityContributions by and distributions to owners Dividends to shareholders – 17,412 – 17,412 – 4,539 – 21,951 Issuing of ordinary shares (stockoptions) 921 6,150 7,071 7,071Changes in ownership interest in subsidiaries that do not result in a change of control Acquisition of non-controlling interest – 4,924 – 4,924 – 1,751 – 6,675 Other changes 1,166 1,166 – 21 1,145Total transactions with owners, recorded directly in equity 921 6,150 – 21,170 0 0 0 – 14,099 – 6,311 – 20,410

Balance at June 30, 2011 152,078 213,018 346,906 – 106,576 19,081 – 15 624,492 34,951 659,443

general information

The consolidated financial statements of GfK SE include the company itself and all consolidated subsidiaries. The GfK SE interim consoli-dated financial statements as of June 30, 2011 have been prepared on the basis of IAS 34 in accordance with the International Financial Reporting Standards (IFRS) and the relevant interpretations of the International Accounting Standards Board (IASB), as applicable under Regulation No. 1606/2002 of the European Parliament and Council, which relates to the application of international accounting standards within the EU. The interim financial statements do not include all explanations and details required for annual financial statements and readers should therefore refer to the annual financial statements as of December 31, 2010 (www.gfk.com).

The requirements of the applicable standards have been fully complied with, resulting in a true and fair view of the net assets, financial position and results of operations of the GfK Group. No voluntary audit in accordance with Article 317 HGB (German Commercial Code) or review of the quarterly financial statements or interim management report as at June 30, 2011 has been performed by auditors.

principles of consolidation and accounting policies

With the exception of the change described below, the consolidated financial statements of GfK SE as of June 30, 2011 are based on the same IFRS principles of consolidation and accounting policies as the consolidated financial statements as at December 31, 2010.

From financial year 2011, GfK no longer reports currency gains and losses resulting from financial transactions such as loans in foreign currency or financial liabilities in foreign currency in the “Other operating income” and “Other operating expenses” items of the income statement, but in the items “Other financial income” and “Other financial expenses”. This changed classification of currency gains and losses within the income statement broken down into operational and financial currency gains and losses results in more appropriate reporting. In the reporting period, currency gains with a financial character totaling EUR 4,553 thousand were reclassified from other operating income to other financial income and currency losses with a financial character of EUR 1,446 thousand were reclassified from other operating expenses to other financial expenses. In the comparative period of January 1 to June 30, 2010, there was a similar reclassification of currency gains totaling EUR 5,979 thousand and currency losses totaling EUR 10,041 thousand. As a result of these reclassifications, operating income was reduced by EUR 3,107 (January 1 to June 30, 2010: improved by EUR 4,062 thousand). The same applied to EBIT. There was no impact on income from ongoing business activities, consolidated total income and earnings per share.

estimates

The estimates and assumptions in the consolidated financial statements as at June 30, 2011 have been prepared using the same methods as in the financial statements as at December 31, 2010.

scope of consolidation and major acquisitions

As at June 30, 2011, the scope of consolidation comprised 153 subsidiaries in addition to the parent company (December 31, 2010: 152).

In the Custom Research sector, the stake in GfK SirValUse Consulting GmbH, Hamburg, was increased as at January 1, 2011 by acquiring a further 20% stake to hold 60%. nurago GmbH, Hanover, wholly owned by GfK SirValUse Consulting GmbH, Hamburg, was fully consoli-dated for the first time as at January 1, 2011, as was GfK SirValUse Consulting GmbH.

The purchase price and the goodwill from this acquisition as well as the off-balance intangible assets disclosed in the context of the acquisi-tion process were of subordinate importance for the GfK Group as were the assets and liabilities assumed. The same applied to the cumula-tive result of the company for the time it belonged to the GfK Group.

For reasons of materiality, the 80% participation in INTERCAMPUS ESTUDOS DE MERCADO, LDA, Maputo, Mozambique, acquired in 2008, was not consolidated until January 1, 2011. The same applied to the 74% participation in G F K Egypt LTD, Cairo, Egypt. The activities of both companies are based in the Custom Research sector.

The previous 51% participation in Oz Toys Marketing Services Pty. Ltd., Sydney, Australia, was reduced in January 2011 by selling 26% of the shares. The company, whose activities are based in Retail and Technology, was deconsolidated as at January 1, 2011. The remaining shareholding of 25% is reported as an associated company from 2011 onwards.

In the Custom Research sector, on January 1, 2011, GfK Daphne Communication Management B.V., Amstelveen, Netherlands, was merged with Intomart GfK B.V., Hilversum, Netherlands. This internal Group merger was solely to improve the Group structure and had no direct economic effect. For the same reason, GfK Animal Healthcare Limited, West Byfleet/Surrey, UK, was wound up in April 2011. Its business activities were first transferred to GfK Kynetec Limited, Bristol, UK.

diluted earnings per share

The earnings per share for the period from January 1 to June 30, 2011 were EUR 1.07 (January 1 to June 30, 2010: EUR 0.75). The diluted earnings per share also amounted to EUR 1.07 (January 1 to June 30, 2010: EUR 0.75). The average number of shares is diluted by 36,267 unexercised options issued in tranche 7, which are in the money as at the reporting date. This does not result in any dilutive effect.

Notes to the consolidated financial statements of G fK SE as at June 30, 2011

30_GfK < < back


related parties

Related parties are persons or groups who could be influenced by the GfK Group or could have an influence on the GfK Group. The following significant transactions with related parties are reported in the consolidated financial statements as at June 30, 2011:

Liabilities relating to as yet unpaid profit shares of EUR 2,266 thousand (2010: EUR 1,334 thousand) arose vis-à-vis The NPD Group Inc., Port Washington, New York, USA.

Loan obligations amounting to EUR 7,206 thousand (2010: EUR 4,315 thousand) were due to GfK-Nürnberg, Gesellschaft für Konsum-, Markt- und Absatzforschung e.V., Nuremberg, the majority shareholder of GfK SE. Furthermore, there were purchase price liabilities to joint partners of SirValUse Consulting GmbH, Hamburg, amounting to EUR 2,955 thousand (December 31, 2010: EUR 1,971 thousand). Short-term financial liabilities of EUR 1,015 thousand (December 31, 2010: EUR 469 thousand) are due to Mr Karlheinz Kögel, a partner in media control GfK INTERNATIONAL GmbH, Baden-Baden.

The provisions for the 5 Star Long-Term Incentive Program (EUR 16,634 thousand; December 31, 2010: EUR 17,342 thousand) represent an obligation to selected members of the management of the GfK Group. Of this, EUR 8,422 thousand (2010: EUR 11,822 thousand) have a remaining term of more than one year.

Unless stated otherwise, receivables and liabilities in respect of related parties have a remaining term of up to one year.

contingent liabilities and other financial commitments

There were no significant changes in contingent liabilities and other financial obligations compared with December 31, 2010.

unusual circumstances

Circumstances which affect the assets, liabilities, equity, profit or loss for the period or cash flow and which are of an extraordinary nature, extent or frequency are dealt with in the introduction to this quarterly report and in the section of the interim management report on the risk and opportunity position.

segment reporting

The organizational structure of the GfK Group comprises the three sectors, Custom Research, Retail and Technology and Media, plus Other. The segmentation of the GfK Group into sectors is based on the origin of market research data.

Income from third parties comprises sales established in accordance with IFRS. Income with other sectors is earned only in the Other division. This is eliminated in the reconciliation to consolidated sales. In principle, intra-Group transactions are recorded under the same conditions as for third parties. The Group measures the success of its sectors by reference to the adjusted operating income according to internal reporting. Adjusted operating income of a sector is determined from operating income before interest and taxes by eliminating the following expenses and income items: expenses and income in connection with reorganization and business combinations, write-downs of additional assets identified on acquisitions, personnel expenses for share-based remuneration systems and long-term incentives and remaining other operating income and expenses.

The table below shows the information relating to the individual sectors for the first six months of 2010 and 2011.

statement by the legal representatives

To the best of our knowledge and in accordance with the applicable accounting principles for interim reporting, we confirm that the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim Group management report 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 throughout the remaining months of the financial year.

GfK_31forward > >

in EUR‘000 Income from third parties Inter-sector income Adjusted operating income

H1 2010 H1 2011 H1 2010 H1 2011 H1 2010 H1 2011

Custom Research 368,099 399,417 0 0 19,543 24,221

Retail and Technology 172,805 192,919 0 0 47,351 56,329

Media 66,123 65,308 0 0 7,832 6,928

Other 2,608 2,415 24,602 28,060 – 2,834 – 3,535

Reconciliation 0 0 – 24,602 – 28,060 0 0

Group 609,635 660,059 0 0 71,892 83,943

32_GfK < < back


Key indicators – income statement eur million/percent

2006

2007 2)

2008

2009

2010

Sales 1,112.2 1,162.1 1,220.4 1,164.5 1,294.2

Change in % on prior year + 18.7 + 4.5 + 5.0 – 4.6 + 11.1

Personnel expenses 442.3 465.2 494.3 510.5 550.7

Change in % on prior year + 18.5 + 5.2 + 6.3 + 3.3 + 7.9

Depreciation/amortization1) 51.2 59.7 59.2 66.3 55.1

Change in % on prior year + 14.8 + 16.6 – 0.8 + 11.9 – 16.8

Adjusted operating income 150.5 157.6 158.7 147.2 185.0


Margin in % 13.5 13.6 13.0 12.6 14.3

ebitda 173.1 188.4 192.0 159.1 195.7


Margin in % 15.6 16.2 15.7 13.7 15.1

Operating income 118.5 125.6 128.9 88.9 136.7


Margin in % 10.7 10.8 10.6 7.6 10.6

Income from participations 3.4 3.0 3.9 3.9 3.9

Change in % on prior year – 87.9 – 10.8 + 28.2 – 0.6 – 1.5

ebit 121.9 128.6 132.8 92.8 140.6


Margin in % 11.0 11.1 10.9 8.0 10.9

Income from ongoing business activity 93.5 104.2 113.0 75.5 124.8


Consolidated total income 71.2 78.9 82.0 60.5 84.0


Tax ratio in % 23.8 24.3 27.4 19.8 32.7

1) Tangible and intangible assets 2) Adjusted by the effects of the settlement with ubm

5-year overview2006 to 2010 according to ifrs

GfK_33forward > >

Key indicators – balance sheeteur million/percent

2006

2007

2008

2009

2010

Non-current assets 1,120.8 1,088.3 1,085.0 1,157.9 1,232.2

Change in % on prior year + 2.1 – 2.9 – 0.3 + 6.7 + 6.4

Current assets 375.4 382.5 361.6 363.5 417.7

Change in % on prior year – 4.0 + 1.9 – 5.5 + 0.5 + 14.9

Asset structure in % 298.6 284.5 300.1 318.5 295.0

Investments 56.6 73.7 101.5 106.7 89.6

Change in % on prior year – 91.6 + 30.2 + 37.7 + 5.1 – 16.0

thereof in tangible assets1) 42.6 49.2 50.5 49.0 48.6

Change in % on prior year + 20.2 + 15.7 + 2.5 – 3.0 – 0.8

thereof in financial assets 14.0 24.5 51.0 57.7 41.0


Equity 466.4 509.6 500.3 553.0 677.5

Change in % on prior year + 9.4 + 9.3 – 1.8 + 10.5 + 22.5

Borrowings 1,029.8 961.2 946.3 968.4 972.4

Change in % on prior year – 3.1 – 6.7 – 1.5 + 2.3 + 0.4

Total assets 1,496.2 1,470.8 1,446.6 1,521.4 1,649.9

Change in % on prior year + 0.5 – 1.7 – 1.6 + 5.2 + 8.4

Net debt – 542.5 – 472.9 – 481.5 – 499.8 – 428.5

Change in % on prior year + 3.7 – 12.8 + 1.8 + 3.8 – 14.3

1) Tangible and intangible assets


Key indicators – cash flow statement eur million/percent 2006 2007

2008

2009

2010

Cash flow from operating activity 110.3 168.1 145.8 134.7 172.0

Change in % on prior year – 14.5 + 52.5 – 13.3 – 7.7 + 27.7

Cash flow from investing activity – 48.0 – 64.6 – 100.4 – 104.4 – 86.2


Cash flow from financing activity – 90.9 – 112.9 – 46.4 – 26.2 – 76.9


Free cash flow 67.7 118.9 95.4 85.7 123.4


34_GfK < < back


Key indicators – company valuation

2006

2007

2008

2009

2010

Earnings per share in eur1) 1.86 1.98 2.04 1.42 1.99

Adjusted earnings per share in eur1) 2.77 2.88 2.87 3.04 3.33

Free cash flow per share in eur1) 1.93 3.33 2.66 2.38 3.43

Net debt in relation to

equity in % (gearing) 116.3 92.8 96.2 90.4 63.2

ebit in % 444.8 367.5 362.6 538.6 304.8

ebitda in % 313.3 251.0 250.8 314.2 218.9

free cash flow in % 801.2 397.8 505.0 583.4 347.2

Dividend per share in eur 0.36 0.45 0.46 0.30 0.48

Total dividend in eur million 12.8 16.1 16.5 10.8 17.4

Dividend yield in % 1.10 1.64 2.09 1.24 1.28

Year-end share price in eur1) 32.82 27.50 22.02 24.13 37.60

Weighted number of shares (in thousands) 35,156 35,682 35,884 35,947 35,967

1) Adjusted for capital increase2) Adjusted by the effects of the settlement with ubm

Key indicator – profitability

2006

2007 2)

2008

2009

2010

ROCE in % 12.0 12.5 12.8 9.7 14.1


GfK_35forward > >

Sales by sectors and regions1) eur million/percent

2006

2007

2008

2009

2010

Sectors

Custom Research 755.2 773.0 782.8 709.2 785.6


Retail and Technology 235.4 260.8 304.1 325.8 370.8


Media 117.0 124.5 130.1 126.4 133.1


Regions

Germany 269.6 290.3 316.1 301.3 340.8


Western Europe/Middle East/Africa 457.7 480.5 487.2 458.1 483.0

Change in % on prior year + 5.0 + 1.4 – 6.0 + 5.4

Western and Southern Europe 290.3

Change in % on prior year + 12.7

Northern Europe 167.4


Central and Eastern Europe 64.4 73.1 87.2 71.7 89.7


North America 257.3 240.7 219.7 207.2 219.3

Change in % on prior year – 6.5 – 8.7 – 5.7 + 5.9

Latin America 23.7 26.7 35.5 39.4 54.9

Change in % on prior year + 12.9 + 33.0 + 11.0 + 39.5

America 280.9


Asia and the Pacific 39.6 50.8 74.8 86.9 106.5


1) Data taken from the Management Information System

Number of employees at year-end

7,903

9,070

9,692

10,058

10,546



Glossary of financial terminology

A adjusted operating incomeAdjusted operating income does not take into account highlighted items. The management uses this financial indicator in the Group-wide manage-ment 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.

—

Associated companies Minority participations in companies on whose business or company policy a decisive, but not controlling influence is exercised. Associated companies are in principle valued at equity.

C Cash flow Balance of funds inflow and outflow affecting pay-ment.

—

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.

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 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.

G Gross income from sales Sales less Cost of sales.

I 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 interpretations of the ifric and sic are grouped under the ifrs.

—

Income Adjusted operating income.

—

Income from ongoing business activity ebit plus financial income less financial expenses.

M Minority participations Generic term for Associated companies and other participations. The participation quota is below 50%.

N Net debt Liquid funds and securities less pension liabilities and financial liabilities.

O Operating income Gross income from sales less selling and general administrative expenses plus other operating income less Other operating expenses.

—

Other operating expenses Expenses in connection with ongoing business activity, excluding financial expenses, not attributable to Cost of sales or selling and gene-ral administrative expenses. Examples are impairments, losses from the disposal of fixed assets and exchange losses.

P Pay-out ratio Total dividend in relation to consolidated total income.

R Ratio of net debt to cash flow Net debt 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.

T Tax ratio Tax on income from ongoing business activity in relation to Income from ongoing business activity.

36_GfK < < back


GfK_37forward > >

Global Head of Corporate Communications Bernhard Wolf Tel +49 911 395-2012 Fax +49 911 395-4075 [email protected]

Publisher GfK SE Nordwestring 101 90419 Nuremberg www.gfk.com [email protected]

This quarter report is available in German and English. Both versions and supplementary press information are available for download online from www.gfk.com.

Date: August 15, 2011

Dates 2011

14 november 2011

Quarterly report as at 30 September1)

Dates 2012

12 march 2012

Annual Accounts Press Conference,

Nuremberg

—

15 may 2012

Annual General Meeting, Fürth

—

15 may 2012

Quarterly report as at 31 March1)

—

14 august 2012

Interim report as at 30 June1)

—

14 november 2012

Quarterly report as at 30 September1)

Provisional key dates in the financial calendar

Contacts

1) Publication is scheduled for before the start of the trading session in Germany

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