3 1 0 2 t Repor Communications AG Highlight Annual Annual Report2013 Swiss-based Highlight Group is one of the most successful media stocks listed on the German capital market. Its unique selling proposition is its broad product portfolio. Highlight Communications AG at a glance (TCHF) 2013 2012 Consolidated Total assets 443,329 421,901 balance sheet Film assets 211,044 162,633 Cash and cash equivalents 44,259 72,517 Financial liabilities 151,997 136,034 Equity attributable to the shareholders 96,675 98,046 Consolidated Sales 386,197 432,814 income statement Profi t from operations 18,496 36,539 Net profi t (Highlight shareholders) 9,731 25,944 Earnings per share (CHF) 0.21 0.56 Earnings per share (EUR) 0.17 0.47 Consolidated Cash fl ow from operating activities 117,499 156,298 statement of cash fl ows Cash fl ow for investing activities –140,835 –137,246 thereof payments for fi lm assets –136,178 –126,646 Cash fl ow for fi nancing activities –5,563 –85,845 thereof dividend payments –9,424 –9,753 Cash fl ow for the reporting period –28,899 –66,793 Personnel Headcount as of December 31 761 732 Highlight Communications AG · Netzibodenstr. 23b · 4133 Pratteln BL, Switzerland · [email protected] Phone +41 (0)61- 816 96 96 · Fax +41 (0)61- 816 67 67 · www.highlight-communications.ch 3 1 0 2 t Repor Communications AG Highlight Annual Annual Report2013 Swiss-based Highlight Group is one of the most successful media stocks listed on the German capital market. Its unique selling proposition is its broad product portfolio. Highlight Communications AG at a glance (TCHF) 2013 2012 Consolidated Total assets 443,329 421,901 balance sheet Film assets 211,044 162,633 Cash and cash equivalents 44,259 72,517 Financial liabilities 151,997 136,034 Equity attributable to the shareholders 96,675 98,046 Consolidated Sales 386,197 432,814 income statement Profi t from operations 18,496 36,539 Net profi t (Highlight shareholders) 9,731 25,944 Earnings per share (CHF) 0.21 0.56 Earnings per share (EUR) 0.17 0.47 Consolidated Cash fl ow from operating activities 117,499 156,298 statement of cash fl ows Cash fl ow for investing activities –140,835 –137,246 thereof payments for fi lm assets –136,178 –126,646 Cash fl ow for fi nancing activities –5,563 –85,845 thereof dividend payments –9,424 –9,753 Cash fl ow for the reporting period –28,899 –66,793 Personnel Headcount as of December 31 761 732 Highlight Communications AG · Netzibodenstr. 23b · 4133 Pratteln BL, Switzerland · [email protected] Phone +41 (0)61- 816 96 96 · Fax +41 (0)61- 816 67 67 · www.highlight-communications.ch The companies of the Highlight Group The Highlight spectrum ranges Events2014 design, produce and market events from top feature fi lms and and premium formats TV formats, high-selling DVD and Blu-ray in the areas of fi lm, sports and music releases, European premium that are known worldwide. football to traditional music events. Highlight Communications AG, Pratteln, Switzerland Markets & Events of the Highlight Group Cinema Cannes Film Festival May 14 – 25 Locarno Film Festival August 6 – 16 Film Sports- & Event-Marketing Other Business Activities Cinema Home entertainment Football Music Highlight subsidiary The Highlight Group has Based in Lucerne, the Highlight Event & Entertain- Venice Film Festival August 27 – September 6 100 % 100 % 100 % 68.63 % Constantin Film Group its own distribution organiza- TEAM Group is one of the ment AG operates in the event Toronto Film Festival September 4 – 14 is Germany’s leading tion for the best possible world’s leading agencies in and entertainment business Constantin Film AG Highlight Team Holding AG Highlight Event producer and distributor exploitation of DVD/Blu-ray the global marketing of and owns the marketing Football UEFA Europa League fi nal May 14 MUNICH, GERMANY Communications LUCERNE, SWITZERLAND & Entertainment AG of feature fi lms. In 2013, rights to feature fi lms. major international sports mandates for the European UEFA Champions League fi nal May 24 (Deutschland) GmbH DÜDINGEN, the Constantin Film own Distribution in Switzerland events. On behalf of the Song Contest and the Vienna Subsidiaries of MUNICH, GERMANY T.E.A.M. Television SWITZERLAND production “Fack ju Göhte” and Austria is performed Union of European Football Philharmonic Orchestra. Music Eurovision Song Contest, semifi nals May 6 and 8 Constantin Film AG Event And Media was by far the best-visited by the Rainbow Home Associations, it exclusively As part of this cooperation, Rainbow Home Marketing AG Highlight Event AG fi lm in the German movie Entertainment subsidiaries. markets the it markets the internationally Eurovision Song Contest, fi nal May 10 Constantin Film Entertainment AG LUCERNE, SWITZERLAND LUCERNE, SWITZERLAND theaters – also in inter- Highlight Communications “UEFA Champions League”, known “New Year’s Day Vienna Philharmonic’s Summer Night Concert May 29 Schweiz AG PRATTELN, SWITZERLAND national comparison. (Deutschland) GmbH the “UEFA Europa League” Concert” and the orchestra’s PRATTELN, SWITZERLAND Team Football cooperates with Paramount and the “UEFA Super Cup”. “Summer Night Concert”. Investor Interim reports May/August/November Rainbow Home Marketing AG Television Home Entertainment to Relations Annual General Meeting May 30 Entertainment GmbH LUCERNE, SWITZERLAND Some of Constantin Film’s cover the German market. VIENNA, AUSTRIA subsidiaries produce very German Equity Forum November 24 – 26 successful TV formats on The bestsellers of 2013 were behalf of major TV stations the Constantin Film titles Members of the Highlight Group at home and abroad: daily „Resident Evil: Retribution“, shows, primetime shows, „Ostwind” and “Türkisch für crime series and TV movies/ Anfänger”. miniseries. The companies of the Highlight Group The Highlight spectrum ranges Events2014 design, produce and market events from top feature fi lms and and premium formats TV formats, high-selling DVD and Blu-ray in the areas of fi lm, sports and music releases, European premium that are known worldwide. football to traditional music events. Highlight Communications AG, Pratteln, Switzerland Markets & Events of the Highlight Group Cinema Cannes Film Festival May 14 – 25 Locarno Film Festival August 6 – 16 Film Sports- & Event-Marketing Other Business Activities Cinema Home entertainment Football Music Highlight subsidiary The Highlight Group has Based in Lucerne, the Highlight Event & Entertain- Venice Film Festival August 27 – September 6 100 % 100 % 100 % 68.63 % Constantin Film Group its own distribution organiza- TEAM Group is one of the ment AG operates in the event Toronto Film Festival September 4 – 14 is Germany’s leading tion for the best possible world’s leading agencies in and entertainment business Constantin Film AG Highlight Team Holding AG Highlight Event producer and distributor exploitation of DVD/Blu-ray the global marketing of and owns the marketing Football UEFA Europa League fi nal May 14 MUNICH, GERMANY Communications LUCERNE, SWITZERLAND & Entertainment AG of feature fi lms. In 2013, rights to feature fi lms. major international sports mandates for the European UEFA Champions League fi nal May 24 (Deutschland) GmbH DÜDINGEN, the Constantin Film own Distribution in Switzerland events. On behalf of the Song Contest and the Vienna Subsidiaries of MUNICH, GERMANY T.E.A.M. Television SWITZERLAND production “Fack ju Göhte” and Austria is performed Union of European Football Philharmonic Orchestra. Music Eurovision Song Contest, semifi nals May 6 and 8 Constantin Film AG Event And Media was by far the best-visited by the Rainbow Home Associations, it exclusively As part of this cooperation, Rainbow Home Marketing AG Highlight Event AG fi lm in the German movie Entertainment subsidiaries. markets the it markets the internationally Eurovision Song Contest, fi nal May 10 Constantin Film Entertainment AG LUCERNE, SWITZERLAND LUCERNE, SWITZERLAND theaters – also in inter- Highlight Communications “UEFA Champions League”, known “New Year’s Day Vienna Philharmonic’s Summer Night Concert May 29 Schweiz AG PRATTELN, SWITZERLAND national comparison. (Deutschland) GmbH the “UEFA Europa League” Concert” and the orchestra’s PRATTELN, SWITZERLAND Team Football cooperates with Paramount and the “UEFA Super Cup”. “Summer Night Concert”. Investor Interim reports May/August/November Rainbow Home Marketing AG Television Home Entertainment to Relations Annual General Meeting May 30 Entertainment GmbH LUCERNE, SWITZERLAND Some of Constantin Film’s cover the German market. VIENNA, AUSTRIA subsidiaries produce very German Equity Forum November 24 – 26 successful TV formats on The bestsellers of 2013 were behalf of major TV stations the Constantin Film titles Members of the Highlight Group at home and abroad: daily „Resident Evil: Retribution“, shows, primetime shows, „Ostwind” and “Türkisch für crime series and TV movies/ Anfänger”. miniseries. Contents Foreword by the Chairman 2 Members of the Board of Directors 8 Corporate governance 10 Highlight stock 22 Report on the Highlight Group’s situation 28 Basic information on the Group 30 Economic report 34 Report on business performance and the situation in the Film segment 36 Report on business performance and the situation in the Sports- and Event-Marketing segment 46 Report on business performance and the situation in the Other Business Activities segment 50 Results of operations, net assets and financial situation of the Highlight Group 55 Personnel report 59 Events after the balance sheet date 60 Report on risks and opportunities 60 Forecast 74 Consolidated financial