Ströer : Financial Statements of Ströer SE & Co. KGaA 2021

STRÖER SE & CO. KGAA, COLOGNE

FINANCIAL STATEMENTS AND COMBINED MANAGEMENT REPORT 2021

2

Ströer SE & Co. KGaA, Cologne

Balance sheet as at December 31, 2021

A S S E T S E Q U I T Y A N D L I A B I L I T I E S
Dec. 31, 2021 EUR	Dec. 31, 2020 EUR Equity Subscribed capital	Dec. 31, 2021 EUR	Dec. 31, 2020 EUR
NON-CURRENT ASSETSIntangible assets	56,691,571.00	56,646,571.00
Purchased concessions, industrial	-	Conditional capital: EUR 14,885,923.00 (prior year: EUR 15,249.845.00)
and similar rights and assets, and licenses in such rights and assets	10,336,787.60	9,019,108.38 864,783.72 9,883,892.10 Capital reserves Retained earnings Other retained earnings Accumulated profit PROVISIONS 7,665,411.98 799,124.33 8,464,536.31 Tax provisions Other provisions Liabilities 656,699,990.06 103,096,689.02 1,942,257.11 Liabilities to banks Trade payables	650,575,312.92	648,310,912.92
386,736,329.06	384,444,336.01
Prepayments	0.00
10,336,787.60	254,958,932.22	235,635,135.05
Property, plant, and equipment Other equipment, furniture, and fixtures	6,265,994.03	1,348,962,145.20	1,325,036,954.98
18,946,501.52	18,175,107.04
Prepayments and assets under construction	969,484.32
7,235,478.35	26,135,635.72	19,976,945.91
Financial assets Shares in affiliates	656,471,590.06	45,082,137.24	38,152,052.95
631,841,364.29	643,878,319.42
Loans to affiliates	101,526,717.02
Equity investments	1,385,986.41	5,553,415.35	4,566,329.34
Loans to other investees and investors	Lia	bilities to affiliates	218,353,744.70	200,522,280.53
0.00	350,000.00 Liabilities to other investees and investors
Other loans	4.00	4.00 762,088,940.19 Oth	9,539.37	0.06
759,384,297.49	er liabilities	756,426.52	5,396,828.26
776,956,563.44	780,437,368.60 -thereof for taxes: EUR 395,799.04 (prior year: EUR 5,098,360.24) 410,808.40 1,424,956,400.26 49,759.66 7,701,308.95 1,433,118,277.27 631,575.21 1,433,749,852.48 3,365,544.46 2,217,552,765.54
CURRENT ASSETSReceivables and other assets Trade receivables	202,086.11
856,514,490.23	854,363,757.61
Receivables from affiliates	1,462,718,028.67
Receivables from other investees and investors	36,183.73
Other assets	7,766,755.60
1,470,723,054.11
Cash on hand and bank balances	191,734.40
1,470,914,788.51
PREPAID EXPENSES	2,687,420.72
2,250,558,772.67	2,250,558,772.67	2,217,552,765.54

Ströer SE & Co. KGaA, Cologne Income statement for 2021

Revenue

Other operating income

Cost of materials

Cost of purchased services

Personnel expenses

Wages and salaries

Social security and pension costs

- thereof for old-age pensions: EUR 16,891.95 (prior year: EUR 33,304.62)

Amortization, depreciation, and impairment of intangible assets

and property, plant, and equipment

Other operating expenses

Income from profit transfer agreements

Income from other securities and loans classified as non-current financial assets

- thereof from affiliates: EUR 2,007,918.77 (prior year: EUR 2,172,697.76)

Other interest and similar income

Impairment of financial assets

Expenses from the transfer of losses

Interest and similar expenses

2021	2020
EUR	EUR
28,708,953.29	27,571,962.34
8,373,472.78	22,583,088.27
-8,528,196.96	-8,307,691.57
-18,753,309.89	-21,778,735.95
-3,159,491.21	-4,100,211.85
-6,426,418.90	-8,177,510.23
-48,152,684.28	-34,513,663.21
0.00	344,664.56
215,966,064.79	148,349,396.70
2,057,666.72	2,236,123.94
46,185.45	47,893.35
0.00	-7,789,998.00
0.00	-19,940,078.51
-9,837,225.54	-10,386,429.73
Income taxes	-25,222,590.06	-20,390,870.33
Post-tax profit or loss	135,072,426.19	65,747,939.78
Other taxes	-113,493.97	-112,804.73
Profit for the period	134,958,932.22	65,635,135.05
Profit carryforward from the prior year	120,000,000.00	170,000,000.00
Accumulated profit	254,958,932.22	235,635,135.05

- thereof expenses from currency translation:

EUR 34,111.37 (prior year: EUR 43,299.32) Income from equity investments

• - thereof from affiliates:

  EUR 0.00 (prior year: EUR 344,664.56)

• - thereof to affiliates: EUR 223,992.36 (prior year: EUR 206,910.64)

• - thereof expenses from unwinding the discount: EUR 841.21 (prior year: EUR 704.36)

Ströer SE & Co. KGaA, Cologne

Notes to the financial statements for 2021

A. General

Ströer SE & Co. KGaA, Cologne ('Ströer KGaA'), was established by transforming Ströer SE, Cologne (Co-logne local court, HRB no. 82548), by way of a change in legal form in accordance with the resolu-tion adopted by the extraordinary shareholder meet-ing on September 25, 2015. Its articles of association are dated June 23, 2016. It was entered in commer-cial register B of Cologne local court under HRB no. 86922 on March 1, 2016.

These separate financial statements were prepared in accordance with sections 242 et seq. and sections 264 et seq. of the German Commercial Code (HGB) and in accordance with the relevant provisions of the German Stock Corporation Act (AktG). The provi-sions for large corporations apply.

The income statement is structured in accordance with the nature-of-expense method.

B. Accounting policies

The following accounting policies, which essentially remained unchanged in comparison to the prior year, were used to prepare the separate financial statements.

Intangible assets and property, plant, and equipment are recognized at cost and, where appli-cable, are amortized/depreciated on a straight-line basis over their useful lives.

Amortization/depreciation is based on the followinguseful lives:

• ■ Purchased concessions, industrial and simi-lar rights and assets, and licenses in suchrights and 3 to 10 years

  assets

• ■ Other equipment, furniture, and fixtures 3 to 13 years

Low-value assets with an individual net value not ex-ceeding EUR 250.00 are written off/fully expensed in the year of acquisition, with their immediate dis-posal being assumed. For reasons of efficiency, a col-lective item is recognized for assets with an individ-ual net value of more than EUR 250.00 but no greater than EUR 1,000.00 and depreciated at a flat rate of 20% p.a. in the year of acquisition and in each of the following four years. All other deprecia-tion on additions to property, plant, and equipment is recognized pro rata. Depreciation of the collective item amounted to EUR 148k in 2021 (prior year: EUR 200k).

Under financial assets, equity investments are rec-ognized at the lower of cost and fair value, while loans are recognized at nominal value. Interest-free or low-interest loans are discounted to their present value.

Receivables and other assets are recognized at their nominal value. Specific loss allowances are rec-ognized for items subject to risk, while a general loss allowance is recognized for general credit risk.

Interest-free and low-interest receivables due in more than one year are discounted.

Payments made before the reporting date that con-stitute expenses for a certain period after this date are recognized as prepaid expenses.

Tax provisions and other provisions are recog-nized for all contingent liabilities and losses ex-pected to be incurred from executory contracts. They are recognized at the settlement value deemed nec-essary according to prudent business judgment (i.e. including future cost and price increases). Provisions with a residual term of more than one year are dis-counted.

Liabilities are recorded at the settlement value.

To determine deferred taxes arising due to tempo-rary or quasi-permanent differences between the carrying amounts of assets, liabilities, prepaid ex-penses, and deferred income in the statutory ac-counts and their tax carrying amounts or due to tax loss carryforwards, these differences are valued us-ing the Company-specific tax rate of 31.546% at the time they are reversed; the amounts of any resulting tax charge or benefit are not discounted. Deferred tax assets and liabilities are offset. The option not to recognize deferred tax assets is exercised due to the surplus of deferred tax assets.

Foreign currency assets and liabilities are trans-lated using the middle spot rate on the reporting date. If they have residual terms of more than one year, the realization principle (section 252 (1) no. 4 half-sentence 2 HGB) and the historical cost principle (section 253 (1) sentence 1 HGB) are applied.

All entities that are fully consolidated in Ströer KGaA's consolidated financial statements are classi-fied as affiliates.