mobile data r e p o r t f o r t h e f i r s t Q u a r t e r

Transcription

1 mobile data report for the first Quarter 2013

2 The GfK Group at a glance 2 GfK is one of the world s largest research companies, with more than 12,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK s sales amounted to EUR 1.51 billion. 1. Quarter Change 2012 In EUR million 1) in % Earnings situation Sales ,514.7 Gross income from sales EBITDA Adjusted operating income Margin in per cent 2) Operating income EBIT Consolidated total income Basic earnings per share in EUR Adjusted earnings per share in EUR 3) Investment and finance Cash flow from operating activity Cash flow from investing activity Cash flow from financing activity Free cash flow before acquisitions, other investments and asset disposals Change as of in % Asset and capital position Total assets 1, , Equity Equity ratio Liquidity 4) Net debt 5) Employees No. of employees 12,678 12, Share of employees in the GfK companies outside Germany in per cent ) Rounded 2) Adjusted operating income in relation to sales 3) 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 4) Cash and cash equivalents plus securities and fixed-term deposits 5) 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

3 Business development at a glance of GfK Group 3 Sales in EUR million Adjusted operating income in EUR million Month Change Month Change % % , Earnings per share in EUR Cash flow from operating activity in EUR million Month Change Month Change % % Share of sectors in total sales in percent 1) 59.5 Consumer Experiences 40.2 Consumer Choices 0.4 Other Share of regions in total sales in percent 1) 40.3 Northern Europe 18.5 Southern & Western Europe 8.7 Central Eastern Europe/META 4.0 Latin America 18.3 North America 10.2 Asia and the Pacific ) Figures from the Management-Information System rounded 1) Figures from the Management-Information System rounded

4 The sectors at a glance 4 Consumer Experiences The Consumer Experiences sector concentrates on consumers attitudes, perceptions and behavior and answers the questions who is buying, why they are buying and how they are buying. These are explored though highly creative, robust and flexible methodologies. GfK is pioneering sophisticated new ways of understanding how people experience brands and services. In EUR million 1. Quarter Change in % Sales Adjusted operating income Margin in per cent 1) Figures from the Management-Information System rounded 1) Adjusted operating income in relation to sales Consumer Choices The Consumer Choices sector investigates what s selling when and where. It focuses on the continuous assessment of market segments and trends by analyzing all major sales and information channels and media. In EUR million 1. Quarter Change in % Sales Adjusted operating income Margin in per cent 1) Figures from the Management-Information System rounded 1) Adjusted operating income in relation to sales

5 contents 5 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 Assets and capital structure Trends in the sectors Regional trends Own the Future implementation of new corporate strategy is progressing Number of employees Research and development Organization and administration Changes in participations in the first quarter of Important events after the reporting date of 31 March Opportunity and risk position Outlook 17 Consolidated financial statements 18 Notes to the consolidated financial statements 26 Additional information 28

6 Letter to the shareholders 6 matthias hartmann Chief Executive Officer of GfK se 2012 was a year of fundamental change for us. It was a year of transformation towards a business model that connects the knowledge of our people with data and systems. Much of what we set out to do has already been achieved. GfK now has a new matrix organization that is aligned with regions and industries, and the Group has a strong global management team. We now need to focus on the further globalization of our product range to benefit from economies of scale and leverage cost synergies by standardizing deals. This will enable us to achieve our growth and income targets. In the first quarter of 2013, we again implemented a series of measures based on the Own the Future corporate strategy and continued those already launched previously. For example, we have established synergy resources such as global service centers. Although this increased costs in the short term, these will be offset by long-term growth potential. For the first time, a uniform global CRM system has been in operation in a number of markets this year to optimize client management. In addition, regional and local organizations have been geared to marketing new global core products. In product management, new processes have been implemented to ensure further standardization in the range of products and services. These measures will generate potential for future sales growth while also improving cost effectiveness. The transformation process and measures taken impacted on our quarterly figures in the short term at least. We achieved sales growth of 0.8% in the first quarter of 2013 year-on-year to around 348 million. Organic growth was 0.6%. However, adjusted operating income of around 23 million (previous year: 33.5 million) and the margin of 6.6% (previous year: 9.7%) did not match the strong results for the first quarter of In the first quarter of 2013, the Consumer Experiences sector achieved a slight sales increase of 0.6% on the previous year s figure to around 207 million. Following a subdued start in January and February, we were pleased to record a substantial rise in the level of incoming orders in March. However, as a result of this delay in orders received, income in the first three months of the year was down from 7.9 million to 2.4 million. The first quarter margin of the Consumer Experiences sector only amounted to 1.2% compared with 3.8% in the same period of the previous year. The margin then improved considerably in March and was up 2.1 percentage points on the same month in the previous year. The Consumer Choices sector also achieved an increase in sales in comparison with the previous year s first quarter of 1.4% to around 140 million. Positive momentum came from the Consumer Electronics and Audience Measurement segments. The income of the Consumer Choices sector decreased by 4.2 million to 23.0 million, compared with the same quarter in the previous year. The sector s margin was 16.5% and therefore below the previous year s figure of 19.7%. In addition to the delayed conclusion of major orders, which meant that those profits were not recorded in the first quarter of 2013, expenses in the development of new products also had an impact on income. The sales potential of these product innovations will only take effect over the course of the year. We are not satisfied with these results. Nevertheless, we look to the future with confidence in view of the fact that after the weak start in the first couple of months of the year, January and February, both income and the order situation improved significantly in March. On this basis, we confirm our annual targets and anticipate that the modest sales increase at the start of the year will be offset by sharper growth in the subsequent quarters. For 2013 as a whole, we expect organic growth of between 3% and 4% and a 13% profit margin, and reaffirm our outlook. We will put all our strength and energy into achieving the targets we have set ourselves. We hope you will continue to place your trust, which we value highly, in us and accompany us on our path into the future of market research. I look forward to welcoming you to Stadthalle Fürth for our Annual General Meeting on 17 May Sincerely yours, Matthias Hartmann

7 GfK share performance GfK share price performance from January 1, 2013, to MARCH 31, ) January February March 1) All values are indexed to the GfK share price, closing prices, in EUR GfK dax 30 Performance sdax Performance Dow Jones Euro Stoxx Media The opening price of GfK shares at the beginning of the year was With a steady upward trend, the share price climbed to a high of 45 in mid February. A sideways movement followed for a further month. In the course of March the share price adjusted, closing the quarter at 39.35, a slight increase on the price at the start of the year (+2%). This price performance was largely parallel to the SDAX, which outperformed the DAX in the first quarter of The average trading volume for GfK shares of 9,333 per day was below the previous year s average daily volume of 16,451 shares. At the sixth GfK Capital Market Day held in Frankfurt/Main in January 2013, more than 40 analysts and institutional investors from Germany, France, Italy and the UK seized the opportunity to speak with members of the GfK Management Board. GfK is covered by national and international financial analysts. At the end of September, of the 13 analysts rating GfK shares, 6 recommended the stock as buy, a further 6 as hold and one analyst gave a sell recommendation. As at 31 March 2013, the number of shares in free float stood at 43.9%. At the same time, 0.03% of the shares were held by GfK s Management and Supervisory Boards, with 39.24% in institutional hands and 4.6% held by private investors. GfK share performance 1. Quarter Change in % Full year 2012 Change Q vs. full year 2012 in % Share price at the end of the period in EUR % % High in EUR % % Low in EUR % % Number of no-par shares at the end of the period 36,503 36, % 36, % Stock market capitalization at the end of the period in EUR million 1,460 1,436 1, %

8 8 GfK optimistic for 2013 as a whole after subdued first quarter of the year Sales slightly up by 0.8% to million Slow start to the year and 7.4% rise in personnel expenses lowered adjusted operating income to 23.0 million (previous year: 33.5 million) Significant rise in cash flow from operating activities to 9.5 million (previous year: 1.0 million) Outlook: forecast for the year confirmed following a marked increase in incoming orders in March and April The GfK Group has closed the first quarter of financial year 2013, recording sales growth while income was down year-onyear. Sales rose by 0.8% to million (same period in the previous year: million). Organic growth was 0.6 percentage points. Both sectors contributed to the sales increase, with a sharp rise recorded in Asia and the Pacific and Central Eastern Europe/META. Conversely, a slight downward trend emerged in Northern and South-western Europe. Adjusted operating income decreased by 10.6 million to 23.0 million compared with the previous year s quarter. Accordingly, the margin of 6.6% was below the level achieved in the same quarter of the previous year (9.7%). The trend was unsatisfactory in the first two months of the year, in particular, whereas income and the order situation improved considerably in March compared with the preceding months. EBIT fell by 8.6 million on the previous year to 18.8 million. At the same time, consolidated total income was down by 5.5 million to 8.8 million. The order situation in the GfK Group remains satisfactory. At the end of March, a total of 55.1% of the annual sales required to achieve the forecast had already been posted or were in the order book. Although this percentage remains below the previous year s figure (57.5% of annual sales achieved), the trend in the level of orders received has consistently been positive since March following a slow start at the beginning of the year.

9 Interim management report 1. General economic situation Irrespective of ongoing uncertainties, the economic trend stabilized in many regions during the first quarter of 2013, especially in the emerging markets. However, the recession has continued in Europe with the exception of Germany. As a result, overall global economic growth in the first quarter of 2013 was very weak Economic and financial development in the GfK Group In the first three months of 2013, GfK achieved a slight increase in sales year-on-year while income was down. Compared with the outstanding first quarter of 2012, sales were up by 0.8% in total to million. Organic growth amounted to 0.6 percentage points. Acquisitions pushed up sales by 1.2 percentage points, whereas currency effects impacted negatively with 0.9 percentage points. Both sectors achieved sales growth. The Consumer Experiences sector generated 0.6% growth and Consumer Choices 1.4%. In the Consumer Experiences sector, acquisitions accounted for an additional 1.9 percentage points, although sales in organic terms were down by 0.4 percentage points. The Consumer Choices sector recorded organic growth of 2.2 percentage points while currency effects had a negative impact of 0.9 percentage points. GfK Group: key figures In EUR million 1) in % 1. Quarter Quarter 2013 Change Sales EBITDA Adjusted operating income Margin in percent 2) Operating income EBIT Other financial income / expenses Consolidated total income Cash flow from operating activities Earnings per share in EUR Adjusted earnings per share in EUR 3) ) rounded 2) Adjusted operating income in relation to sales 3) 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

10 10 Adjusted operating income 1) In EUR million 1. Quarter Quarter 2013 Operating income Write-ups and write-downs of additional assets identified on acquisitions Income and expenses in connection with share and asset deals Income and expenses in connection with reorganization and improvement projects Personnel expenses for share-based incentive payments Currency conversion differences Income and expenses related to one-off effects and other exceptional circumstances Total highlighted items Adjusted operating income ) rounded Adjusted operating income (hereinafter: income) totaled 23.0 million in the first three months of 2013, which represents a decrease of 10.6 million on the same figure for the previous year of 33.5 million (-31.5%). Consequently, the Group s margin was also down to 6.6% (same quarter in the previous year: 9.7%). The trend was particularly unsatisfactory in the first two months of 2013, whereas both income and the order situation improved significantly in March, compared with the previous months. In both sectors, delayed incoming orders caused a shift in sales and the associated income. The establishment of global service and data processing centers resulted in higher personnel expenses, because existing local capacity remains available during the set-up phase and will only subsequently be reduced. Additionally, the Consumer Choices sector is investing in the development of new retail panels. These will initially require additional coding capacity during the start-up phase while not yet generating sales. 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 that distort the evaluation of operating earnings power from operating income. The balance of these expenses and income, which are referred to as highlighted items, was substantially reduced compared with the same quarter in the previous year. In the first three months of 2013, highlighted items totaled -4.5 million after -6.7 million in the same period of the previous year. The most marked changes in the highlighted items occurred in terms of personnel expenses for share-based remuneration, which were down from 2.3 million to 0.7 million. Costs for the introduction of a new ERP system of 1.3 million were the main reason for the increase in expenses from restructuring and improvement projects. EBIT fell by 8.6 million to 18.8 million. The other financial result, which represents the balance of other financial income and other financial expenses, stood at -5.1 million in the first quarter of 2013 after -4.3 million in the first quarter of The change was largely attributable to expenses for derivative financial instruments used to hedge against other exchange rate risks and resulted from exchange rate fluctuations, primarily the revaluation of the US dollar and Japanese yen. The tax ratio was down from 37.7% in the previous year to 35.5%. This reduced earnings per share compared with the same period in the previous year by 0.13 to As at 31 March 2013, the total number of GfK SE shares in circulation was 36,503,896 and unchanged compared with year-end To increase comparability with its peer group, GfK additionally publishes adjusted earnings per share. This is the consolidated total income attributable to the shareholders of the parent company plus highlighted items divided by the average number of shares in the reporting period. In the first quarter of 2013, adjusted earnings per share totaled 0.29 and therefore fell short of the previous year s figure of 0.48.

11 3. Cash flow and investment Cash flow from operating activities for the first three months of 2013 was significantly up by 8.5 million to 9.5 million, despite the decrease in consolidated total income. This increase was achieved by considerably reducing operational working capital by 25.9 million. 11 Although a higher amount was invested into expanding intangible assets than in the previous year ( 8.4 million after 6.7 million in the same period of the previous year), the volume of total investments was down. This was due to a reduction in acquisitions, for which only 27.6 million were spent in the first quarter of 2013 (after 75.1 million in the same quarter of the previous year). The amount was almost exclusively used to increase shareholdings. Overall, the cash outflow from investing activities fell by 46.2 million to 41.8 million. Accordingly, free cash flow after acquisitions, other investments and asset disposals rose considerably from million in the first quarter of 2012 to million in the first three months of this year. At the end of March 2013, GfK had cash and cash equivalents of million (31 March 2012: 76.1 million). The unutilized credit lines amounted to million as at 31 March Assets and capital structure During the first three months of 2013, GfK SE s total assets were up by 25 million to 1,905 million on the figure at year-end This rise primarily resulted from the increase in cash and cash equivalents. As at 31 March 2013, equity was almost unchanged at 781 million (31 December 2012: 777 million). The share capital of GfK SE was constant at 153 million. On 31 March 2013, net debt amounted to million. This represents an increase on year-end 2012 of 9.2 million. As at 31 March 2013, the ratio of modified net debt to EBITDA was 1.85 (31 March 2012: 1.57) and the ratio of EBITDA to modified interest expenses 9.09 (31 March 2012: 11.95). The covenants agreed with the banks were therefore comfortably met once again. The GfK Group has further diversified its financing portfolio and accessed an additional circle of investors in March 2013 by issuing a loan note worth 125 million. Maturities of 7 and 10 years were agreed at historically low interest rates. A portion of the amount raised will be used for the short-term funding of bank loans due. The revolving credit facility of 200 million had not been drawn as at 31 March Trends in the sectors Structure of sales growth by sectors 1) Total 0.9% 0.4% 1.9% Consumer Experiences 0.6 % 0.9% 0.1% 2.2% Consumer Choices 1.4 % 0.9% 19.1% 0.0% Other 2) 20.0 % 0.9% 0.6% 1.2% Total 0.8 % 1) Figures from the Management-Information System rounded Currency Acquisitions Organic 2) Other division

12 12 GfK conducts its business activities in two sectors, Consumer Experiences and Consumer Choices. The Consumer Experiences sector deals with consumer habits, behavior, perceptions and attitudes and answers the who, why and how of consumption. GfK is developing pioneering and complex new procedures to deliver a profound understanding of how consumers experience brands and services. The Consumer Choices sector investigates what is bought by consumers, when and where. The main focus here is on continuous measurement of market volumes and trends. All the significant sales and information channels and media are included in the process of analysis. Consumer Experiences 1) in EUR million Quarter 2013 Change in % Sales Adjusted operating income Margin in per cent 2) ) Figures from the Management-Information System rounded 2) Adjusted operating income in relation to sales Consumer Experiences: In the first three months of 2013, the Consumer Experiences sector achieved a slight sales increase of 0.6% on the previous year s figure to million. Sales in organic terms were marginally down by 0.4 percentage points. Currency effects also had a minor negative impact, although this was more than offset by growth of 1.9 percentage points through acquisitions. The level of incoming orders was modest in the first two months of the year, but was very strong by the end of the period. A global order was received from a major financial services provider for analyzing brand perception in asset management and investment banking. The development of new products also generated new orders. For example, GfK s Market Opportunity and Innovation (MOI) is a new instrument that facilitates considerably improved sales forecasts of new products and also delivers data for product optimization. In contrast, the sector s profitability decreased. Income was down from 7.9 million to 2.4 million. However, the margin improved significantly in the course of the quarter: unlike the first two months, it was 2.1 percentage points up year-on-year if viewed in isolation for the month of March. The delay in receiving many orders impacted negatively on sales and consequently income. Alongside the structural changes mentioned above, setting up a Consumer Experiences presence in South Korea with around 80 employees also contributed to the rise in personnel expenses. Here, costs are not yet fully covered at present, but the trend in incoming orders is very pleasing. Consumer Choices 1) in EUR million Quarter 2013 Change in % Sales Adjusted operating income Margin in per cent 2) ) Figures from the Management-Information System rounded 2) Adjusted operating income in relation to sales Consumer Choices: At 1.4%, growth in the Consumer Choices sector was once again somewhat stronger than in the Consumer Experiences sector and sales totaled million. Organic growth accounted for 2.2% while currency effects reduced income by 0.9 percentage points.

13 With the exception of Northern and South-western Europe, all regions recorded rising sales figures. Developments in Northern Europe were affected by the delayed conclusion of major orders, which are recorded in Germany and then assigned within the Group. 13 Business with clients in Consumer Electronics, which showed a negative trend in the same period of the previous year, returned to a slight increase in sales. Audience Measurement, now with a global direction based on the new strategy, also posted various successes. In Australia, a three-year contract was concluded for measuring radio ratings. Ratings are to be measured from 1 January 2014 onwards. However, preproduction costs will be incurred for this project in the current year. Following the renewal of the TV research contract for Germany in December 2012, GfK was awarded several additional contracts by other German TV channels. The GfK Mobile Insights and GfK Location Insights (formerly: NIS, LPS and Geo.gfk) projects developed according to schedule, with the market launch of both products planned for the second quarter of Income of the Consumer Choices sector decreased by 4.2 million to 23.0 million in the first three months of 2013, compared with the same quarter in the previous year. The sector s margin was 16.5% and therefore below the previous year s figure of 19.7%. Two factors were responsible for the decline in income. On the one hand, the conclusion of a number of major contracts was delayed and on the other, expenses for the new products, GfK Mobile Insights and GfK Location Insights, as well as the ongoing modernization of the StarTrack production platform pushed up costs. Other 1) in EUR million Quarter 2013 Change in % Sales Adjusted operating income ) Figures from the Management-Information System rounded Other: Complementary to these two sectors is the Other category, which unites the central services that GfK provides for its subsidiary companies and other services unrelated to market research. In the first three months of 2013, sales generated by the Other category amounted to 1.3 million (previous year: 1.6 million). Of the costs incurred by the segment, 2.5 million were not covered compared with 1.6 million in the same period of the previous year. This figure has therefore returned closer to previous levels (Q1 2011: -2.0 million). 6. Regional trends The GfK Group s network of subsidiaries covers over 100 countries. In geographic terms, business is divided into six regions: Northern Europe, Southern and Western Europe, Central and Eastern Europe/META, Latin America, North America as well as Asia and the Pacific. In Northern Europe, the region with the highest sales volume, sales of the GfK companies was down 1.4% from million to million. As a large number of major global contracts are posted in this region, the delayed awarding of such contracts had a particularly marked impact on this region s figures. In many countries in the region Southern and Western Europe, including Greece, Portugal and France, the prevailing business climate was difficult, as was already the case in the previous year. Nevertheless, GfK essentially maintained the same level of sales in this region, with only a minor decrease of 1.7% to 64.3 million. The GfK companies in this region continued to be resilient to the crisis. In Central Eastern Europe/Meta (Middle East, Turkey and Africa), GfK again recorded significant sales growth. The Group achieved a 12.6% increase in sales to 30.1 million in the first three months of Organic growth of 10.9 percentage points accounted for the major contribution to growth, with acquisitions further boosting growth by 2.9%. In this region, the measures taken as part of implementing the new strategy impacted favorably. Particularly the larger countries in the region, such as Russia, Ukraine and Romania, contributed to growth with new global solutions based on a sharper focus on syndicated products and the Consumer Panel. In addition, the process of combining some smaller countries was launched to create a more efficient structure.

14 14 Structure of sales growth in the regions 1) Total 1.3% 0.6% 0.5% Northern Europe 1.4 % 1.7% Southern & Western Europe 1.7 % 1.2% 2.9% 10.9% Central Eastern Europe/META 12.6 % 5.8% 1.3% Latin America 4.5 % 2.8% 0.7% 4.1% North America 1.9 % 4.5% 10.6% Asia and the Pacific 6.1 % 0.9% 0.6% 1.2% Total 0.8 % 1) Figures from the Management-Information System rounded Currency Acquisitions Organic Following sharp growth in the previous year, LATIN AMERICA also recorded slight growth of 1.3% in the first quarter of 2013, in organic terms. However, currency effects of -5.8 percentage points had a considerable negative impact, which meant that total sales fell by 4.5% to 13.9 million. The significantly better offer pipeline relating to new mobile products and media business provides a positive set-up for stronger future growth in the region. In the North America region, a minor sales increase was generated with growth of 1.9% to 63.7 million. Growth was based on acquisitions, which accounted for 4.1 percentage points. In organic terms, sales were down by 2.8 percentage points. Here too, the delayed receipt of some orders impacted on sales. The business trend in Consumer Choices was positive in terms of the Media segment and for the GfK Etilize product data catalog. The first quarter of 2013 also saw preparations for the market launch of Location Insights, a new mobile device product, which is scheduled for the second quarter of The GfK companies in Asia and the Pacific increased sales by 6.1% to 35.6 million. Organic growth amounted to as much as 10.6%, although currency effects of -4.5 percentage points had the opposite effect. Pleasing business developments in Australia/New Zealand and India contributed to sales growth, in particular. Regions: sales growth 1) in EUR million Quarter 2013 Change in % Northern Europe Southern & Western Europe Central Eastern Europe/META Latin America North America Asia and the Pacific Total ) Figures from the Management-Information System rounded 7. Own the Future implementation of new corporate strategy is progressing Since January 1, 2012, GfK has pursued its new strategy Own the Future. The aim of the strategy is to make global use of the numerous strengths existing within GfK for specific client groups and in various regions in the future. For this purpose, products are being harmonized and adapted for an increasingly networked digital world. A new organizational structure with global and regional responsibilities has been created to support shared utilization of existing data and resources as well as the transfer of expertise on various sectors, client groups and regions among GfK experts.

15 In the first three months of the current year, further progress was made on implementing the Own the Future strategy. Key areas included the continuing set-up of global centers to increase efficiency in the operations of the two business sectors in the future. In the Consumer Experiences sector, a global product management process was defined. A pilot project has already been conducted to ensure further standardization in the range of products and services. Roll-out of the new global core products has also advanced and the regional organizations have been geared to marketing these. In another pilot project, the new CRM system was tested and introduced in the first core markets to support integrated pipeline management. The digital product platforms nurago and DRIVE System, an in-house development, secured major orders in the first quarter of In the Consumer Choices sector, the launch of new mobile products planned for the second quarter of this year was prepared in the first target markets and data production started. The trend in the pipeline relating to media business was very promising year-on-year. 15 The GfK Management Board also presented long-term sales and income targets in the context of the new Own the Future corporate strategy. By the end of 2015, the GfK Group s target is a sales volume of between 1.9 billion and 2.0 billion, assuming that future acquisitions will account for a sales contribution of around 100 million in The target profit margin is 15% to 16%. The intention is for the Consumer Choices sector to expand more rapidly than the Consumer Experiences sector. 8. Number of employees As at 31 March 2013, the GfK Group had 12,881 employees, 203 more than at the end of A large number of new employees joined the Group as part of creating centralized services in line with the corporate strategy, especially the new coding centre in Bulgaria for the Consumer Choices sector. There was no increase in staff numbers resulting from the first-time consolidation of companies in the reporting period. At the end of the first quarter, the Group employed 10,712 staff outside Germany and 2,169 in Germany. In the first three months of the current year, personnel expenses amounted to million (same quarter of the previous year: million). The personnel cost ratio, which expresses the ratio of personnel expenses to sales, increased from 46.6% to 49.7%. As a result of legal changes and changes in the organizational structure, many ex-freelancers are now employed. In addition, services in some countries have been insourced. Consequently, costs which were previously reported as services bought in are now stated under personnel expenses. The latest employee survey carried out within the GfK Group confirmed the broad acceptance of the strategy and employees commitment to GfK s success. 9. Research and development Together with the GfK Verein and Vienna University, GfK has designed the TANEP project (Towards an Analytics of Networked Publics) to conduct basic research. The aim is to develop a method for analyzing Web content, which expressly takes into account the structure of links between various content items. On this basis, in-depth insight will be gained into communication structures and opinion forming on the internet. A further project focuses on linking traditional social media analysis with the successful GfK Media Efficiency Panel (MEP). The MEP is used, for example, to analyze in detail the online usage behavior of people from 15,000 households. The systematic, content-based analytical processing of this user data with known demographic details, using social media analysis methods and text mining, will deliver insights far beyond those gained on the basis of traditional online surveys and social media analysis. 10. Organization and administration The Group has embraced the challenges associated with globalization and set up an organizational structure that enables the local GfK companies to respond to market opportunities quickly and efficiently. GfK SE simultaneously acts as a holding company and operating unit. In Germany, the GfK Group network comprises the parent company, 13 consolidated associates and another associate as well as five non-consolidated affiliated companies. Worldwide, the GfK Group has 145 consolidated associates and 15 other associates, three participations and 35 non-consolidated affiliated companies. The Group headquarters is located in Nuremberg.

16 Changes in participations in the first quarter of 2013 In the first quarter of the year, GfK increased its shareholdings in three subsidiaries. media control GfK International is a full service provider for media monitoring, analysis and evaluation. GfK and media control founded the joint venture media control GfK International in 2003, which has since developed into the world s leading comprehensive information provider for the entertainment industry. Its international database gives clients worldwide round-theclock access to online applications as well as access to market research data and hit lists for books, music, DVDs, videos and computer games. With its individual, tailored analyses of companies, markets and products, media control GfK International provides a daily overview of consumers listening, gaming, watching and reading habits. The GfK Group s stake in media control GfK International was increased from 70% to 100% of the shares. The Group s shareholding in GfK-Conecta, with registered office in Peru, was stepped up from 51% to 100%. This company s activities are based in Custom Research. GfK acquired all the remaining shares in GfK UK Entertainments Limited, increasing its stake from 70% to 100%. GfK UK Entertainments Limited is the holding company for GfK Chart-Track, which is a leading sales data provider for the games industry and home entertainment in the UK and Ireland as well as the music and video industries in Ireland. All three companies were already fully consolidated prior to the share increase. Changes in the GfK Network during the first quarter of 2013 Company Reason for investment Shareholding in % Sector Region GfK - Conecta Share increase from 51 to 100 Consumer Experiences Northamerica GfK UK Entertainments Share increase from 70 to 100 Consumer Choices Northern Europe media control GfK International Share increase from 70 to 100 Consumer Choices Northern Europe 12. Important events after the reporting date of 31 March 2013 GfK increased its share in the American subsidiary GfK Etilize from 75% to 100% in April GfK Etilize has the world s largest, most comprehensive electronic catalog of technical consumer goods. It provides product information for transactions within the e-commerce segment for a wide assortment of technical consumer goods. GfK Etilize s clients include some of the world s largest manufacturing organizations, wholesalers and retailers as well as operators of online shopping Websites, search engines and price comparison platforms. 13. Opportunity and risk position The risk position and opportunities of the GfK Group are described in the Group Management Report as at 31 December No material changes have occurred compared with the description and no risks have been identified that could jeopardize the continued existence of the Group. The GfK Group s risk position has been impacted by the ongoing uncertainties relating to the economic environment. If the global economic situation should worsen significantly 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 fourth quarter than the other quarters, given that the year-end business is highly relevant to GfK clients operations. 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.

17 14. Outlook GfK expects global economic growth to remain sluggish in the course of this year. There are no signs of a swift solution to problems in the industrialized nations. Large parts of Europe, in particular, will probably continue to face recessionary tendencies. The outlook is brighter for the emerging markets, where GfK also remains on course for growth. 17 The March improvement in the level of incoming orders mentioned above continued in April. The Consumer Choices sector virtually closed the gap in April to match the level of orders received of the previous year. The Consumer Experiences sector also recorded an improved order situation. In view of this, the Management Board remains confident that GfK will once again outperform the market research industry in 2013 and be in a position to gain market shares. In 2013, GfK will continue to drive forward the optimization of the Group s structure and implementation of its strategy. This is likely to impact favorably on the future business trend. Provided that the economic situation will not worsen, GfK anticipates organic growth of between 3% and 4% in the current financial year. Despite the unsatisfactory income trend in the first quarter of 2013 and scheduled expenses for business development, GfK s Management Board expects to achieve the forecast for the year as a whole, as published in March, with a profit margin (adjusted operating income in relation to sales) of around 13%. Following the subdued start in the first two months of 2013, the level of incoming orders has developed well since then. At the end of March 2013, the order book already covered 55.1% of annual sales required to achieve the forecast for the year as a whole (2012: 57.5% of annual sales achieved). *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 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.

18 Consolidated income statement of GfK Group from January 1 to March 31, 2013 in EUR 000 (according to IFRS, not audited) 18 Q % of sales Q % of Change sales abs. % Sales 345, % 347, % 2, % Cost of sales 239, % 249, % 9, % Gross income from sales 105, % 98, % 6, % Selling and general administrative expenses 77, % 80, % 3, % Other operating income 4, % 7, % 3, % Other operating expenses 5, % 7, % 2, % Operating income 1) 26, % 18, % 8, % Income from associates % % % Other income from participations 0 0.0% % 31 ebit 27, % 18, % 8, % Other financial income 7, % 11, % 4, % Other financial expenses 11, % 16, % 5, % Income from ongoing business activity 23, % 13, % 9, % Tax on income from ongoing business activity 8,719 4,875 3, % Consolidated total income 14, % 8, % 5, % Attributable to equity holders of the parent: 10, % 6, % 4, % Attributable to minority interests: 3, % 2, % % Consolidated total income 14, % 8, % 5, % Basic earnings per share (eur) % Diluted earnings per share (eur) % Adjusted earnings per share (eur) % For information: Personnel expenses 160, % 172, % 11, % Depreciation/amortization 13, % 13, % % ebitda 41, % 32, % 8, % 1) Reconciliation to internal management indicator adjusted operating income amounting to EUR 23.0 million (Q1 2012: 33.5 million) as indicated on page 10.

19 Consolidated cash flow statement from January 1 to March 31, 2013 in EUR 000 (according to IFRS, not audited) 19 Consolidated total income 14,384 8,847 Q Q Write-downs/write-ups of intangible assets 7,490 7,028 Write-downs/write-ups of tangible assets 6,304 6,383 Write-downs/write-ups of other financial assets 0 0 Total write-downs/write-ups 13,794 13,411 Increase/decrease in inventories and trade receivables 26,213 30,014 Increase/decrease in trade payables and liabilities on orders in progress 24,007 4,121 Changes in other assets not attributable to investing or financing activity 6,074 7,932 Changes in other liabilities not attributable to investing or financing activity 24,962 22,892 Profit/loss from the disposal of non-current assets Non-cash income from associates Increase/decrease in long-term provisions 2,943 1,360 Other non-cash income/expenses 2,717 6,225 Net interest income 4,958 4,584 Change in deferred taxes 9 2,487 Current income tax expense 8,710 7,362 Taxes paid 12,112 12,352 a) Cash flow from operating activity 1,035 9,511 Cash outflows for investments in intangible assets 6,683 8,401 Cash outflows for investments in tangible assets 6,291 6,136 Cash out-/inflows for acquisition of consolidated companies and other business units, net of cash acquired 75,096 27,615 Cash outflows for other financial assets Cash inflows from disposal of intangible assets 93 5 Cash inflows from disposal of tangible assets Cash inflows from the sales of consolidated companies and other business units, net of cash disposed of 0 0 Cash inflows from disposal of other financial assets b) Cash flow from investing activity 88,074 41,836 Cash inflows from equity contributions 0 0 Dividend payments to equity holders of parent 0 0 Dividend payments to minority interests and other equity transactions 2, Cash inflows from loans raised 64, ,297 Cash outflows for repayment of loans 2,691 47,193 Interest received Interest paid 1,870 3,923 c) Cash flow from financing activity 58,083 73,540 Changes in cash and cash equivalents (total of a), b) and c)) 28,956 41,215 Changes in cash and cash equivalents owing to exchange gains/losses and valuation Cash and cash equivalents at the beginning of the period 105,869 66,376 Cash and cash equivalents at the end of the period 76, ,421

20 Calculation of net debt and free cash flow in EUR 000 (according to IFRS, not audited) 20 Calculation of net debt Liquid funds 66, ,421 Short-term securities and time deposits 1,466 1,161 Liquid funds, short-term securities and time deposits 67, ,582 Liabilities to banks 203, ,938 Pension obligations 70,014 70,110 Liabilities from finance leases Other interest-bearing liabilities 260, ,230 Interest-bearing liabilities 535, ,104 Net debt 467, ,522 Calculation of free cash flow Consolidated total income 14,384 8,847 Write-downs/write-ups of intangible assets 7,490 7,028 Write-downs/write-ups of tangible assets 6,304 6,383 Others 27,143 12,747 Cash flow from operating activity 1,035 9,511 Capital expenditure 12,975 14,537 Free cash flow before acquisitions, other investments and asset disposals 11,940 5,026 Acquisitions 75,096 27,640 Other financial investments Asset disposals Free cash flow after acquisitions, other investments and asset disposals 87,039 32,325

21 Consolidated balance sheet as of March 31, 2013 in EUR 000 (according to IFRS, not audited) 21 Assets Goodwill 919, ,569 Other intangible assets 249, ,248 Tangible assets 111, ,911 Investments in associates 15,193 15,506 Other financial assets 4,932 5,021 Deferred tax assets 50,099 52,533 Non-current other assets and deferred items 10,694 10,436 Non-current assets 1,361,675 1,366,224 Trade receivables 397, ,597 Current income tax assets 16,420 14,858 Securities and fixed-term deposits 1,466 1,161 Cash and cash equivalents 66, ,421 Current other assets and deferred items 37,001 47,792 Current assets 518, ,829 Assets 1,880,502 1,905,053

22 Consolidated balance sheet as of March 31, 2013 in EUR 000 (according to IFRS, not audited) 22 Equity and liabilities Subscribed capital 153, ,316 Capital reserve 212, ,403 Retained earnings 399, ,922 Other reserves 30,757 34,242 Equity attributable to equity holders of the parent 734, ,399 Minority interests 43,117 44,612 Equity 777, ,011 Long-term provisions 93,534 88,014 Non-current interest-bearing financial liabilities 308, ,062 Deferred tax liabilities 82,660 83,256 Non-current other liabilities and deferred items 4,422 3,756 Non-current liabilities 488, ,088 Short-term provisions 38,043 27,612 Current income tax liabilities 22,037 17,827 Current interest-bearing financial liabilities 156,756 95,932 Trade payables 86,957 77,045 Liabilities on orders in progress 143, ,021 Current other liabilities and deferred items 166, ,517 Current liabilities 614, ,954 Liabilities 1,103,235 1,124,042 Equity and liabilities 1,880,502 1,905,053 Equity ratio 41.3% 41.0%

23 Consolidated statement of comprehensive income from January 1 to March 31, 2013 in EUR 000 (according to IFRS, not audited) 23 Consolidated total income 14,384 8,847 Items that will not be reclassified to profit or loss: Actuarial gains/losses on defined benefit plans Items that will be reclassified in future to profit or loss: Currency translation differences 11,144 3,333 Changes in fair value of cash flow hedges (effective portion) 55 3 Changes in fair value of equity securities available-for-sale 0 0 Other comprehensive income (net of taxes) 11,334 3,177 Total comprehensive income 3,050 5,670 Q Q Attributable to: Equity holders of the parent 52 2,839 Minority interests 2,998 2,831 Total comprehensive income 3,050 5,670