Notes to the Consolidated Financial Statements
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DO & CO Aktiengesellschaft Annual Financial Report Business Year 2017/2018 CONTENTS Group Management Report for 2017/2018 .................................................... 1 1. Highlights ....................................................................................................... 1 2. Key Figures of the DO & CO Group under IFRS .................................................... 2 3. Economic environment...................................................................................... 3 4. Business Development ...................................................................................... 5 4.1. Revenue ......................................................................................................... 5 4.2. Result ............................................................................................................. 6 4.3. Statement of financial position ........................................................................... 7 4.4. Employees ...................................................................................................... 7 4.5. Non-financial performance indicators .................................................................. 7 4.6. Airline Catering ................................................................................................ 8 4.7. International Event Catering ............................................................................ 11 4.8. Restaurants, Lounges & Hotel .......................................................................... 13 4.9. Share / Investor Relations / Information Pursuant to Section 243a UGB ................ 15 4.10. Significant events after the reporting period ...................................................... 21 5. Outlook ......................................................................................................... 21 6. Risk and Opportunity Management ................................................................... 23 7. Internal Control System .................................................................................. 28 Consolidated Corporate Governance Report ................................................. 30 1. Commitment to the Code of Corporate Governance ............................................ 30 2. The Management Board .................................................................................. 30 3. The Supervisory Board.................................................................................... 31 4. Remuneration Report...................................................................................... 34 5. Diversity Concept ........................................................................................... 35 6. Measures to promote Women to the Management Board, Supervisory Board and in Executive Positions ......................................................................................... 35 Report of the Supervisory Board .................................................................. 36 Consolidated Financial Statements 2017/2018 of DO & CO Aktiengesellschaft pursuant to IFRS .......................................................................................... 38 1. Consolidated Statement of Financial Position ..................................................... 39 2. Consolidated Income Statement ...................................................................... 40 3. Consolidated Statement of Comprehensive Income ............................................ 41 4. Consolidated Statement of Cash Flows .............................................................. 42 5. Consolidated Statement of Changes in Equity .................................................... 43 6. Segment Reporting ........................................................................................ 44 Notes to the Consolidated Financial Statements .......................................... 46 1. General information........................................................................................ 46 2. Effects of new and/or amended IFRS ................................................................ 47 3. Significant Accounting Principles ...................................................................... 51 3.1. Consolidation ................................................................................................. 51 3.2. Currency translation ....................................................................................... 52 3.3. Accounting methods ....................................................................................... 53 3.4. Significant discretionary decisions and estimates ............................................... 58 4. Comments on the Consolidated Statement of Financial Position ........................... 60 4.1. Intangible assets ............................................................................................ 60 4.2. Property, plant and equipment ......................................................................... 62 4.3. Investments accounted for using the equity method ........................................... 63 4.4. Other financial assets (non-current) ................................................................. 63 4.5. Inventories .................................................................................................... 63 4.6. Trade receivables ........................................................................................... 64 4.7. Other non-financial assets (current) ................................................................. 64 4.8. Cash and cash equivalents .............................................................................. 65 4.9. Shareholders’ equity ....................................................................................... 65 4.10. Bond ............................................................................................................ 67 4.11. Non-current provisions ................................................................................... 67 4.12. Income tax .................................................................................................... 68 4.13. Other financial liabilities (current) .................................................................... 69 4.14. Trade payables .............................................................................................. 69 4.15. Current provisions .......................................................................................... 69 4.16. Other liabilities (current) ................................................................................. 70 5. Comments on the Consolidated Income Statement ............................................. 71 5.1. Revenue ....................................................................................................... 71 5.2. Other operating income .................................................................................. 71 5.3. Cost of materials ............................................................................................ 71 5.4. Personnel expenses ........................................................................................ 71 5.5. Other operating expenses ............................................................................... 72 5.6. Amortisation/ depreciation and effects from impairment tests .............................. 72 5.7. Financial result .............................................................................................. 72 5.8. Income tax .................................................................................................... 73 5.9. Earnings per share ......................................................................................... 73 5.10. Proposed appropriation of profit ....................................................................... 73 6. Comments on the Consolidated Statement of Cash Flows (Cash Flow Statement) .. 74 7. Additional Disclosures ..................................................................................... 75 7.1. Additional disclosures on financial instruments ................................................... 75 7.2. Contingencies and financial liabilities ................................................................ 79 7.3. Significant events after the reporting period (subsequent report) ......................... 79 7.4. Related party disclosures ................................................................................ 80 7.5. Investments .................................................................................................. 81 7.6. Corporate boards ........................................................................................... 82 Auditor’s Report ........................................................................................... 84 Statements by all Legal Representatives Pursuant to Section 124 Austrian Stock Exchange Act ...................................................................................... 89 Glossary ....................................................................................................... 90 Group Management Report for 2017/2018 1. Highlights Outstanding net result despite decrease in revenue due to consistent positioning in the premium segment and further diversification Innovative products, new customers, a good performance with existing customers and numerous measures to improve efficiency have once again produced an outstanding result in this business year: