Annual Report 2015/16 CREATING SHARING TA K I N G MEET THE ORGANIZATION KNOWLEDGE KNOWLEDGE STOCK EXECUTIVE BOARD / BRANDS AND EDUCATION / ANNUAL FINANCIAL MEMBERS’ COUNCIL / MARKETS / PUBLICATIONS / STATEMENTS / ADVISORY BOARD / METHODS / EVENTS BALANCE SHEET / MEMBERS / ARTICLES STUDIES INCOME STATEMENT OF ASSOCIATION 2 2015/2016 ANNUAL REPORT / Greetings DEAR READERS » THESE DAYS, IT IS NO LONGER A QUESTION OF SPEED VERSUS QUALITY. « Prof. Hubert Weiler In the past 12 months, we have focused intensively on the issue of digitalization. The reason for this is that it puts the proven, market research business model in jeopardy. The “Digital Disruption” mainly affects the value added chain of market research, the exclusivity of data access and the expectations of precisely those who have referred to reports based on that data up to now. It has therefore become a significant challenge for our industry. For example, we are seeing consumers providing input as “prosumers.” In the meantime, companies as well as customers are collecting data themselves, in some cases at a lower cost and in real time. These days, it is no longer a question of speed versus quality. Speed is now seen as a mark of quality itself. In this regard, the quality of data and methods as well as integrity will continue to exist as undisputed hygiene factors. Greetings / 2015/2016 ANNUAL REPORT 3 These developments have consequences for our industry: We need to review and adjust the service we provide in those areas where it no longer meets the requirements of the market. As with every challenge, in addition to the risks there are also opportunities. This could be a window of opportunity for the industry to develop from a pure data provider into a consultant partner. This requires market expertise and the development of innovative tools to analyze new data sources. An example of this is our newly developed GfK PictureScan, which is able to automatically find and analyze brand images in social media channels. However, our industry is not the only one facing digital challenges. Our custo- mers’ areas of activity are also being affected. Market research that shows that it can cope with this challenge on its own enjoys natural authority with these customers. After this explorative outlook, I want to elaborate briefly on the new constellation of the GfK Verein and GfK SE for a specific reason. The “separation decision” of 2009, whereby no person may hold office in the GfK Verein and GfK SE at the same time, was repealed in February. At the time, this decision was made due to the failed merger with TNS in order to prevent too much power from residing with one person. This objective was also reflected in the change to the Articles of Association approved by the General Assembly in January 2009. Since then, all decisions that could result in a decrease of the GfK Verein’s shareholding in GfK SE require approval from the Executive Board as well as the Members’ Council. These changes to the Articles of Association have proved effective in preventing individuals from acting alone. Accordingly, in addition to two independent persons, two vice presidents of the Verein were also proposed as candidates for election to the Supervisory Board by the Verein at the Annual General Meeting of GfK SE on May 20, 2016. This once again gives the GfK Verein as majority shareholder of GfK SE the opportunity to make a direct contribution for the benefit of both sides and assume responsibility for its own interests. Diverse market research and fundamental knowledge will benefit GfK SE and make it more competitive through the active participation of the Verein in Super- visory Board activities. For this is what will allow GfK SE to be a winner in the area of digitalization over the long term. At the same time, the goal of the GfK Verein remains for GfK SE to keep achieving success as an independent entity. As you can see, the last 12 months have been exciting both from a research perspective and strate- gically. Furthermore, many new projects await us in the future. It goes without saying that this can only be done with the expertise and commitment of the individuals that are behind everything we do. I therefore want to express my heartfelt gratitude to our members, the members of the Executive Board, Advisory Board and Members’ Council, our cooperation partners from science and industry and most especially the employees of the GfK Verein. Their knowledge and motivation are an important building factor which enable us to fulfill our tasks successfully in the digital age. We hope you enjoy reading our report. Prof. Hubert Weiler President of the GfK Verein 4 2015/2016 ANNUAL REPORT / Contents CONTENTS 2 Greetings Prof. Hubert Weiler 6 Activities and Objectives of the GfK Verein 10 The Faces of the GfK Verein Contents / 2015/2016 ANNUAL REPORT 5 14 96 CREATING TAKING STOCK KNOWLEDGE 98 2015 Annual Financial Statements 16 Brands and Markets 100 Balance Sheet 32 Methods 101 Income Statement 48 Studies 102 66 MEET SHARING THE ORGANIZATION KNOWLEDGE 106 Executive Board 68 Education 108 Members’ Council and Advisory Board 82 Publications 110 GfK Verein Membership 88 Events 112 Membership Directory 118 Articles of Association 121 Imprint 6 2015/2016 ANNUAL REPORT / Activities and Objectives of the GfK Verein THE Gf K VEREIN– ANCHOR SHAREHOLDER AND PROMOTER OF MARKET RESEARCH Establishing and advancing market research – this is why the GfK Verein was founded in 1934. Market research has long since been an integral, important part of science and practice. However, it requires continuous research work, e.g., to inves- That also means that in case of doubt, it is more important tigate social media or adapt methods to other cultures. The for the GfK Verein to safeguard GfK SE against hostile take- GfK Verein plays a major role here. It sees itself as a think overs than to grow through acquisitions financed by equity tank that creates and shares relevant knowledge for market increases. research. This is accomplished by studying markets, devel- In accordance with the resolutions of the Annual General oping market research methods and furthering the training Meeting, the GfK Verein nevertheless makes sure GfK SE has of market researchers, both through its own academy and adequate capital resources so that it can take advantage of publications. opportunities that arise. The GfK Verein never depletes GfK With a share of 56.5%, the GfK Verein also acts as the stable SE of capital. Accordingly, distributions are to be made only and responsible anchor shareholder of GfK SE. from the net income of GfK SE. As a general rule, a significant share of the profits is not distributed but rather retained in GfK Verein as Shareholder of GfK SE GfK SE. In addition, the GfK Verein will not exclude reason- The aim of the GfK Verein is to achieve long-term value able capital increase measures as long as there is a secure enhancement for GfK SE. The GfK Verein’s shareholding in majority at the Annual General Meeting of the GfK Verein GfK SE is the key asset and basis of its earnings, and enables or an equivalent safeguarding of its interests has been pro- it to pursue its other goals. GfK SE is also indispensable to vided. It is also prepared to participate in capital increase the GfK Verein as a source of market research knowledge, for measures to the extent of its abilities. the validation of new concepts and as a valuable contractual Whenever it can, the GfK Verein conducts its research activi- partner for collecting data on markets. It is therefore essen- ties so that GfK SE is also able to benefit from them. When- tial for the GfK Verein that the value of the shareholding ever possible, the GfK Verein will conduct the research of in GfK SE is maintained and increased, resulting in steady, markets it has surveyed as well as studies for the develop- increasing revenue for the GfK Verein over the long term. ment of new market research methods together with GfK SE Through its controlling interest, the GfK Verein guarantees and commission them accordingly. In addition, the research that GfK SE will not be susceptible to hostile takeovers. Thus results achieved by the GfK Verein can be used by GfK SE the GfK Verein acts as a benevolent investor who is inter- in accordance with corresponding usage agreements. This ested in the long-term positive development of its company. close collaboration benefits both partners and is designed Activities and Objectives of the GfK Verein / 2015/2016 ANNUAL REPORT 7 GfK Verein to increase the participating interest in GfK SE for the GfK This expresses the aim of the GfK Verein to assume more Verein. direct responsibility in its role as shareholder. The usual status is thus reinstated: One anchor shareholder is repre- Representation of the GfK Verein on the Supervisory sented in the Supervisory Board of the company in which it Board of GfK SE holds the majority of the shares. However, the GfK Verein Since the last change to the Articles of Association in 2009 is not interested in having capital representatives on the to the last Annual General Meeting on May 20, 2016, the Supervisory Board of GfK SE that consist only of GfK Verein GfK Verein exerted its influence over GfK SE concerning the committee members. Instead, it places more importance on Annual General Meeting and its preparation. The commit- having external representatives who also bring their compe- tees of the GfK Verein and GfK SE were separated in terms tence and management experience to this committee.