Half-Year Financial Report 2010 Logwin AG

Transcription

1 Half-Year Financial Report 2010 Logwin AG

2 Key Figures January 1 June 30, 2010 in thousand 6 Months 2nd Quarter Group (restated) in % (restated) in % Sales 649, , , , Gross Profit 49,745 41, ,638 14, Margin 7.7 % 7.7 % 6.9 % 5.7 % Operating Income (EBIT) 10,089 2,943 2,663 2,039 Margin 1.6 % 0.5 % 0.8 % 0.8 % Earnings of Continuing Business Operations 223 5,691 1,628 5,760 Margin 0.0 % 1.1 % 0.5 % 2.3 % Net Result 3,350 48,884 3,501 42,607 Attributable to Shareholders of Logwin AG 3,439 48,785 3,542 42,539 Earnings per Share (in 1) Operating Cash Flow* 1,245 1,554 5,592 3,070 Net Cash Flow* 197 2,002 5,810 4,349 in thousand 6 Months 2nd Quarter Business Segments (restated) in % (restated) in % Solutions Sales 339, , , , Operating Result (EBIT) 3,484 1, , Margin 1.0 % 0.3 % 0.5 % 2.1 % Air + Ocean Sales 309, , ,979 94, Operating Result (EBIT) 9,870 6, ,035 2, Margin 3.2 % 3.4 % 3.1 % 3.0 % in thousand Jun. 30, 2010 Dec. 31, 2009 in % Jun. 30, 2010 Mar. 31, 2010 in % Equity Ratio 24.0 % 21.0 % 24.0 % 21.6 % Net Financial Debt* 98,116 98, , , Number of Employees* 5,487 5, ,487 5, *Continuing Business Operations

3 Half-Year Financial Report 2010 Overview Overview Sales and earnings The Logwin Group generated sales of million euros in its continuing business operations in the first six months of This represents an increase of 20.7 % in comparison with last year. Operating income (EBIT) amounted to 10.1 million euros compared with 2.9 million euros for the first half of last year. Cash flow The operating cash flow of the continuing business operations of the Logwin Group amounted to 1.2 million euros at the end of the reporting period. The increase in working capital is largely due to the increase in business volume. Business segments The business segment Solutions generated sales of million euros in the first six months of 2010, in line with those last year. General Cargo, automotive and chemicals activities in particular benefited from the improving economic situation. In contrast, the development of volumes in the Fashion and Media special networks continued to be subdued. At 3.5 million euros, operating result (EBIT) was significantly above the negative earnings of the same period last year. As a result, the operating margin climbed to 1.0 %. The business segment Air + Ocean increased its sales in the reporting period compared with the previous year by 54.5 % to million euros. Besides increasing customer demand, this growth in sales could be attributed to the strong rise in air and sea freight rates. Major impulses came from the business units Europe Middle East, Far East Asia and South East Asia. Operating result (EBIT) increased by 44.0 % to 9.9 million euros. The operating margin reached 3.2 %. Sales in million Operating income (EBIT) in million Solutions Air + Ocean Solutions Air + Ocean 1

4 Long-time partners: Logwin and Douglas have been working together successfully in Germany and Austria for over ten years. Logwin put a new cross-docking center into operation at the beginning of 2010 on behalf of Douglas. In Renningen Logwin bundles the cosmetics and lifestyle products from around 100 suppliers. After performing quality inspection, labelling and other value-added services, Logwin distributes the articles to some 80 Douglas stores throughout the region. In addition to Renningen, Logwin operates further cross-docking centers for its customer in Aschaffenburg, Hamburg and Langenfeld. Logwin: News in brief from the world of Logwin Water on! for Danone Since the beginning of this year, Logwin has been ensuring that sources of Evian and Volvic for beverage markets and supermarkets in Austria do not dry up. Every year Logwin imports around 4,000,000 litres of this fine French water, transhipping it in Berndorf near Salzburg. New Balance is Logwin s new customer The innovative sports shoe manufacturer has been relying on services from Logwin since March Each month, up to 400 pallets are taken into storage in Logwin s lifestyle warehouse in Singapore, where add-on services are provided and the distribution of shoes, clothing and accessories to the retail trade and to New Balance s own shops are organized. Top customer rating for Logwin in Györ Logwin has been awarded the highest possible rating for the assembly of control housing covers at its location in Hungary for Audi Hungaria Motor Kft., acknowledging the successful, long-standing partnership. Logwin has been assembling control housing covers for Audi in Györ since 2006, but also assembles plates and water pumps. Business volume with MCA Furniture doubled Logwin has been responsible for managing MCA Furniture s entire logistics since mid Logwin in Lemgo has been providing various logistics services for many many years, including container unloading, warehouse storage, picking, route planning and scheduling and distribution to retailers. 2 Learn more about Logwin. Quick news: Success stories:

5 Half-Year Financial Report 2010 Logwin AG Content 1 Overview 4 Group Interim Management Report 4 Stock 5 Corporate Bond and Rating 6 Sales and Earnings Development 12 Financial Position 14 Other Reporting 15 Outlook 15 Assurance by the Legal Representatives 16 Consolidated Interim Financial Statements 16 Consolidated Statement of Income 17 Consolidated Statement of Comprehensive Income 18 Consolidated Statement of Cash Flows 19 Consolidated Balance Sheet 20 Consolidated Statement of Changes in Shareholders Equity 21 Notes to Consolidated Interim Financial Statements 21 Basis of Accounting 21 Consolidation Scope 22 Segment Reporting 23 Discontinued Business Operations 23 Contingent Liabilities 24 External Review 24 Subsequent Events Financial Calendar (Cover) Imprint (Cover) 3

6 SOLUTIONS FROM A TO Z Our logistics solutions are as diverse as our customers requirements.... E X H I B I T I O N P L A N N I N G A N D O R G A N I Z A T I O N O F S T A N D C O N S T R U C T I O N F A B R I C C U T T I N G Stock Developments in the stock markets The stock markets were characterized by sharp swings of mood and price in the first half year of While share indices started slightly positive into the year, they suffered losses from the end of January onwards. The DAX recorded its lowest point for the year so far at 5,434 points on February 5. However, share prices recovered during March and April, with the DAX clearly exceeding the 6,000. From the end of April problems in the European banking market and the government debt crisis in Europe dampened the mood on the share markets. Share indices came under pressure, experiencing high volatility and price corrections, as a result of fears that the debt crisis could spread and influence economic growth. The DAX closed the reporting period at 5,966 points, slightly above its level at the end of last year. Key figures for the Logwin share Jun. 30, 2010 Jun. 30, 2009 Closing price (Xetra) in euros High / Low 52 weeks in euros 1.35 / / 0.59 Total number of shares in units 111,474, ,474,987 Market capitalization in million euros Earnings per share in euros Operating cash flow per share in euros Frankfurt (Prime Standard), ISIN LU , WKN Logwin share vs. benchmark index (rebased) in % in December 31, 2009 June 30, 2010 Logwin AG Prime Transport 4

7 Group Interim Management Report Stock Corporate Bond and Rating F A S T M O V I N G C O N S U M E R G O O D S F I N A N C I A L S E R V I C E S F I N I S H E D G O O D S W A R E H O U S E F I N I S H I N G F I R S T C L A S S Logwin share The price of the Logwin share increased steadily in value in the first quarter, climb - ing to its highest price of the year of 1.35 euros at the end of March. The share was not able to maintain this level in the second quarter and suffered significant losses. The Logwin share had a closing price on the Xetra of 1.03 euros on June 30, 2010, which was 4.6 % higher than at the end of last year. At the end of the reporting period the market capitalization was just under 115 million euros, after 110 million euros at the end of last year. A total of 2.0 million Logwin AG shares were traded on all German stock exchanges in the first six months. This represented a turnover of 2.2 million euros. Share ownership and shareholder structure The company has a stable shareholder structure. The majority shareholder remains DELTON AG, Bad Homburg (Germany), through its wholly owned subsidiary DELTON Vermögensverwaltung AG. Corporate Bond and Rating Development of the corporate bond The corporate bond developed positively in the first half of After a price at the end of last year of 92.00, which was also it lowest price in the reporting period so far, the bond experienced steady growth in value in the first three months of the year, reaching its highest point of on March 22. A slight course correction took place at this high level during the second quarter. The corporate bond closed on June 30, 2010 at a price of Corporate rating The ratings for the Logwin Group and for the subordinate corporate bond remained unchanged in the first half of Moody s Investors Service placed the Logwin Group in the B3 rating category. The corporate rating by Standard & Poor s was B-. Moody s Investors Service rated the corporate bond in the category Caa2 while Standard & Poor s rated it at CCC+. Both rating agencies judged the prospects for the corporate rating unchanged at stable. 5

8 C A R R I E R F I S C A L R E P R E S E N T A T I O N F L E E T M A N A G E M E N T F R E I G H T C O N C E P T F R E I G H T M A N A G E M E N T Abandonment of the business segment Road + Rail The Logwin Group realigned its business model in the second half of 2009 and the first quarter of 2010, disposing of almost all Road + Rail activities or integrating them into the business segment Solutions. The contracts of sale and transfer with Augustin Network relating to the general cargo network operated in Austria by Logwin Road + Rail Austria GmbH and to land transportation activities in Eastern Europe were signed on February 3, Transaction closing was on March 31, Furthermore, contracts with the JCL Logistics Group relating to the sale of Road + Rail activities in Vorarlberg (Austria), Switzerland, Hungary, France, Italy and Spain were signed on February 26, The sale of the activities in France, Spain and Italy became effective the same day. Transaction closing for the remaining activities took place on April 15, The tank and silo activities of Logwin Road + Rail Deutschland GmbH were sold to GREIWING logistics for you GmbH with effect from April 1, This half-year report therefore contains no assets and liabilities relating to these parts of the business. The purchase price payments have been included in these statements. 6

9 Group Interim Management Report Sales and Earnings Development F R E I G H T P R O C U R E M E N T G A T E W A Y F R E I G H T S Y S T E M G L O B A L A S S I S T A N C E I N D E V E L O P I N G N E W M A R K E T S Sales and Earnings Development Overall economic development The economic recovery of the global economy that started in the spring continued unabated in the summer of The emerging markets continue to drive the global upturn. As in previous years, China and India expanded particularly strongly. The economies of Japan and the USA, which were severely affected by the economic and financial crises of 2008 and 2009, are recovering more strongly than expected. Recovery in the European economic area is more hesitant mainly because of the uncertainty following the debt crisis. Nevertheless, growth figures for the first quarter of 2010 and leading indicators point to stronger growth. The collapse in production seen during the recession has not anywhere near been made up. The current recovery in the economy is being driven principally by foreign trade. The devaluation of the euro is supporting this trend. Economic activity in Germany shows a basically similar picture to the whole European region. Growth in the economy is moderate. Production grew significantly in the first half of the year. The main cause for this development was an increase in exports to industrialized countries outside Europe and to the fast-growing emerging markets. Export growth is proving to be increasingly robust and is benefiting from the weak euro. In contrast, stimulation for economic activity from a revival in domestic consumer demand has yet to emerge. The economic recovery and the accompanying increase in global exports and imports have resulted in a noticeable upturn for the logistics and transportation sector. This extends to all modes of trans - port and is reflected in increased transport volumes. Cargo handling activity is increasing once more. Freight rates have recovered. There are initial signs that the strategy of reducing freight capacity employed so far is being abandoned, and this slowed the further increases in the final weeks of the reporting period and resulted in stable transportation prices. 7

10 Sales in million Sales by regions in million Asia, Pacific region, Africa 98.7 Other 57.1 Switzerland 14.1 Eastern Europe 38.2 Austria Germany G O O D S C O N S O L I D A T I O N H A N D L I N G C O N T R O L H A N D L I N G O F G A R M E N T S - O N - H A N G E R H A N D L I N G January 1 - June 30, in thousand (restated) in % Sales 649, , Cost of sales 599, , Gross profit 49,745 41, Margin % 7.7 % 0.0 Operating income (EBIT) 10,089 2,943 Margin % 0.5 % 1.1 Net result 3,350 48, Attributable to shareholders of Logwin AG 3,439 48, EBITDA 16,841 10, EBITDA-Margin % 2.0 % Change in percentage points Logwin Group The Logwin Group abandoned its business segment Road + Rail in 2009 and the first quarter of Those Road + Rail activities in Germany that affect major Solutions customers were already transferred to Solutions in the middle of 2009, where they operate under the title of General Cargo. The figures for the previous year have been restated accordingly. The activities that were abandoned or sold and the remaining operations of the relinquished business segment Road + Rail are reported as discontinued business operations in accordance with IFRS 5. Transaction closings for the sale of those Road + Rail activities that were announced in releases by Logwin AG have been completed. This half-year report therefore contains no assets and liabilities relating to these parts of the business. The purchase price payments have been included in these statements. The continuing business operations of the Logwin Group were able to continue the positive development and growth of the first quarter in the second part of the first half year and generated sales of million euros (2009: million euros). Against the backdrop of a continuing recovery in the global economy and the associated increase in customer demand for logistics services, group sales increased by 20.7 % compared with the same period last year. The dramatic rise in freight rates compared with the previous year boosted volume-driven sales growth; however, this is having different effects on the individual business segments of the Logwin Group: while sales at Solutions largely remained at the same level as the previous year, sales growth at Air + Ocean, which is more strongly affected by the level of freight rates, increased over the previous year at a mid-range, doubledigit rate. 8

11 Operating income (EBIT) in million Group Interim Management Report Sales and Earnings Development S T R A T E G I E S H I G H L Y T A X A B L E C A R G O I M P O R T I N B O U N D L O G I S T I C S I N C O M I N G G O O D S P R O C E S S I N G Gross profit, at 49.7 million euros, was significantly above the figure for the previous year of 41.4 million euros thanks to the increasing growth in business and measures to increase efficiency while the gross margin of 7.7 % remained at the same level as the previous year. The steady devel - opment in the margin, despite significant sales growth, can be attributed to the dramatic increase in freight rates. They had an influence on sales revenues and the cost of sales to a similar degree. The continuing high competitive and cost pressures on margins in the transportation and logistics industry could be countered by ongoing cost-containment measures. However, long-term fixed-cost components such as amortization, rental and leasing obligation could only be reduced to a limit ed extent. In spite of successful cost-cutting and process optimization measures in the business segments Solutions and Air + Ocean, selling and general administrative costs in the first half of 2010, at 40.6 million euros, are above the level of the previous year (2009: 40.0 million euros). The moderate increase in operating expenses compared with the previous year can be attributed to currency effects resulting from the weaker euro in comparison to the same period last year. Employees in the Logwin Group As of June 30, 2010, the continuing business operations of the Logwin Group employed 5,487 people. This represents a reduction of 23 employees since December 31, Jun. 30, 2010 Dec. 31, 2009 Germany 3,103 2,975 Austria Eastern Europe Asia, Pacific region, Africa 1,025 1,007 Switzerland Other Total 5,487 5,510 Holdings/ Shared Service Center 306 Solutions 3,185 Air + Ocean 1,996 9

12 Sales Solutions in million Operating result Solutions (EBIT) in million I N H O U S E T R A N S P O R T I N N O V A T I V E I T S Y S T E M S I N T E R M O D A L T R A N S P O R T A T I O N I N V E N T O R Y M A N A G E M E N T Operating income (EBIT) for the continuing business operations amounted to 10.1 million euros (2009: 2.9 million euros). As a result, the operating margin increased by around one percentage point to 1.6 % in the reporting period (2009: 0.5 %). At 8.3 million euros, finance expenses were slightly above the level of the corresponding period of the previous year (2009: 7.5 million euros). Income tax expenses increased to 1.6 million euros largely as a result of earnings (2009: 1.1 million euros). The result of the discontinued business operations after income taxes amounted to -3.6 million euros (2009: million euros). This affected the Logwin Group s net result which at the end of the reporting period was -3.4 million euros (2009: million euros). Solutions With its integrated contract logistics and specialist network solutions for customers from industry and trade, the business segment Solutions achieved sales of million euros in the first half of 2010, which was in line with the previous year s level (2009: million euros). In particular General Cargo, automotive and chemicals activities benefited from the improvement in overall economic conditions. In contrast, the development in volumes in the special network Fashion in the first half of 2010 continued to be modest as a result of weather-related seasonal variations and continued weak retail demand despite a revival at the end of the second quarter. Sales growth at the special network Media in the reporting period was affected by the decline in the print media market compared with the previous year. In the reporting period the business segment Solutions generated operating result (EBIT) of 3.5 million euros. Compared with the same period of the previous year this represents an increase of 4.7 million euros (2009: -1.2 million euros). In the first half of 2010 the operating margin grew accordingly to 1.0 % (2009: -0.3 %). Besides the accounting profit from the disposal of non-core activities, the improvement in earnings can be attributed to the positive sales-related contribution to earnings from the industrial field and the systematic implementation of cost-cutting and processoptimization measures. However, the unchanged high competitive and cost pressures in contract logistics and the capacity utilization of the special networks continued to impact realizable margins. 10

13 Sales Air + Ocean in million 400 Operating result Air + Ocean (EBIT) in million Group Interim Management Report Sales and Earnings Development I N V E N T O R Y P L A N N I N G I R O N I N G I S O I S O C E R T I F I C A T I O N I S O C E R T I F I C A T I O N I S O : Air + Ocean As an interface between the global growth markets and the Logwin Group s core markets in Europe, the business segment Air + Ocean combines intercontinental air and sea transpor - tation to form efficient logistics solutions. The business segment generated sales of million euros in the reporting period (2009: million euros). Besides an increase in customer demand resulting from a recovery in the overall economy and the related growth in volumes, the increase in sales of 54.5 % compared with the previous year could be attributed to the sharp rise in air and sea freight rates. Growth impulse came in particular from the business units Europe Middle East, Far East Asia and South East Asia, which showed dynamic sales growth in the first half of At the end of the reporting period freight rates stabilized for the time being at a high level. Operating result (EBIT) in the first six months of 2010 amounted to 9.9 million euros, which represented an increase in earnings of 44.0 % (2009: 6.9 million euros). In terms of volumes, the in - crease resulted mainly from the largest business units Europe Middle East and Far East Asia. The business unit South East Asia also showed pleasing growth. The operating margin of the business segment Air + Ocean, at 3.2 % (2009: 3.4 %), remained at a pleasingly level. The high freight rates, which increased in the reporting period, and the limited possibility of passing them on, presented a particular challenge in the first half of 2010 and affected margin growth. Against a backdrop of a market and competitive environment that continues to be difficult, the improvement in the operating result once more confirms the successful market positioning of the business segment Air + Ocean. The systematic expansion of the business segment s network of locations is and remains a significant cornerstone of the group s strategy. In the second quarter of the year the business segment launched its own country organization in Kenya with offices in Nairobi and Mombasa. 11

14 Operating cash flow (continuing business operations) in million 4 Net cash flow (continuing business operations) in million I T S E R V I C E S J U S T I N T I M E ( J I T ) / J U S T I N S E Q U E N C E ( J I S ) C O N C E P T S K A N B A N C O N C E P T S L A B E L L I N G Financial Position Cash flow The Logwin Group s operating cash flow of the continuing business operations amount - ed to 1.2 million euros at the end of the reporting period (2009: 1.6 million euros). As a result of the increased volume of business, working capital was built up leading to a decline in operating cash flow compared to the value for the previous year. Investing cash flow of the continuing business operations after the first six months at -1.4 million euros was below the figure for the previous year (2009: -3.6 million euros). The positive development was the result of the disposal of non-core activities of the business segment Solutions. This was reflected in the increase in revenues from divestments to 2.1 million euros (2009: 0.9 million euros). The separately reported cash flows for the discontinued business operations show the activities of the Road + Rail subsidiaries insofar as they were still part of the Logwin Group in the first six months of the year. As of the reporting date, all purchase price payments are included in their entirety in the investing cash flow of the discontinued business operations. January 1 - June 30, in thousand (restated) Operating income (EBIT) 10,089 2,943 Depreciation and amortization 6,752 7,630 Earnings before interest, income taxes, depreciation and amortization (EBITDA) 16,841 10,573 Interest payments 6,352 5,883 Income tax payments 1,763 1,036 Changes in working capital, cash effective 10,181 1,723 Other reconciliations 826 2,449 Operating cash flow of continuing business operations 1,245 1,554 Operating cash flow of discontinued business operations 10,621 2,877 Capital expenditure 3,340 3,059 Divestments 2, Acquisitions of subsidiaries ,261 Other cash flow from investing activities Investing cash flow of continuing business operations 1,442 3,556 Investing cash flow of discontinued business operations 11, Net cash flow of continuing business operations 197 2,002 Net cash flow of discontinued business operations 825 3,405 Financing cash flow of continuing business operations 2,934 3,476 Financing cash flow of discontinued business operations 1,304 1,591 Net cash flow = Operating cash flow - Investing cash flow 12

15 Shareholders equity in million Gross financial debt (continuing business operations) in million Group Interim Management Report Financial Position L A N G U A G E C O M P E T E N C E L C L T R A N S P O R T S F R O M T H E M A J O R A S I A N S E A P O R T S L E A D L O G I S T I C S P R O V I D E R in thousand 2 Jun. 30, 2010 Dec. 31, 2009 in % Assets 531, , Thereof: Cash and cash equivalents 62,729 64, Trade accounts receivable 168, , Assets of discontinued business operations 16, , Goodwill 153, , Liabilities and shareholders equity 531, , Thereof: Trade accounts payable 149, , Short-term financial liabilities 4,401 5, Liabilities of discontinued business operations 18, , Long-term financial liabilities 28,308 28, Bonds payable 128, , Shareholders equity (including minority interests) 127, , Key figures to the balance sheet Equity ratio % 21.0 % Gross financial debt 2 160, , Net financial debt 2 98,116 98, Changes in percentage points 2 Continuing business operations Balance sheet The main factor for the significant reduction in total assets compared with the end of the previous year by 77.8 million euros to million euros was the disposal of Road + Rail activities (December 31, 2009: million euros). The assets of the discontinued business operations decreased accordingly to 16.3 million euros (December 31, 2009: million euros). As at June 30, 2010, the residual liabilities of the discontinued business operations amounted to 18.3 million euros (December 31, 2009: million euros). Compared with March 31, 2010, an increase in cash and cash equivalents of 3.2 million euros was achieved. At the balance sheet date, cash and cash equivalents amounted to a stable 62.7 million euros (December 31, 2009: 64.6 million euros). Due to the increased level of sales in the continuing business operation compared with the end of the previous year, trade accounts receivable increased by 35.2 million euros to million euros (December 31, 2009: million euros). Trade accounts payable also increased as a result of sales to million euros (December 31, 2009: million euros). 13

16 L E S S T H A N C O N T A I N E R L O A D ( L T L ) T R A N S P O R T L O A D I N G L O A D I N G R A M P S E R V I C E M A N A G E M E N T O F Liabilities from issuing the senior subordinated bond amounted to million euros (December 31, 2009: million euros). Depreciation on the issuing costs over the term of the bond led to this slight change. At the end of the first half of 2010 shareholders equity amounted to million euros (December 31, 2009: million euros). The equity ratio increased to 24.0 % due to the declining balance sheet total (December 31, 2009: 21.0 %). The gross financial debt of the Logwin Group decreased in comparison to the figure at the end of last year to million euros (December 31, 2009: million euros). Net financial debt also decreased slightly, amounting to 98.1 million euros (December 31, 2009: 98.2 million euros). Other Reporting Annual General Meeting and Extraordinary General Meeting The General Meetings of Logwin AG were held in Luxembourg on April 14, The individual agenda items can be viewed in the notification to all shareholders on the Logwin website at: Investigations by Austrian Federal Competition Authorities In late February 2010, the Austrian Federal Competition Authorities have filed proceedings against more than 40 Austrian logistics companies, including three companies of the Logwin Group, with the Vienna Higher Regional Court (Oberlandesgericht), in its function as a cartel court, for alleged breaches of Austrian and European competition law. The Federal Competition Authorities have requested that fines be levied in an amount yet to be specified. According to information obtained so far, Logwin AG does not agree with the legal analysis made by the Austrian Federal Competition Authorities. Since it is impossible to make a reliable estimate of the potential financial impact, no provision has been made for the current financial report and no contingent liability has been estimated. Claim for payment of import sales tax Logwin Road + Rail Austria GmbH was served with a claim from the Austrian customs authorities in April 2010 demanding payment of import sales tax of around 16 million euros in duties for customs clearance that the company had performed with joint and several liability on behalf of customers in the period between December 2005 and March The exemption from import sales tax granted at that time was now revoked since the consignee of the goods was allegedly a participant in a missing trader (carousel) fraud. The company has lodged 14

17 Group Interim Management Report Other Reporting Outlook Assurance by the Legal Representatives ACCOUNTS RECEIVABLE AND PAYABLE MANAGEMENT OF GOODS AND INFORMATION FLOW... an appeal against the claim. Moreover, the company has an insurer s preliminary confirmation of cover. No provision has been made for this in the current financial report and no contingent liability has been estimated. Executive Committee The contract of employment with Helmut Kaspers, member of the Executive Committee and COO Air + Ocean, has been extended until March 31, Outlook Economic institutes have made a slight upward adjustment to their growth forecasts for 2010 as a result of the moderate stabilization in the economic situation. On the basis of the comparatively low level of the 2009 business year, the Logwin Group anticipates positive sales growth for the continuing business operations, supported in particular by the business segment Air + Ocean and the industry-oriented activities within the business segment Solutions. By focusing on the business segments Solutions and Air + Ocean the Logwin Group has made itself leaner and more efficient. This, together with the cost-saving measures that have been initiated, will have a positive effect on its earnings situation. The company controls aiming for profitable growth will enable the Logwin Group to benefit from the economic recovery that has already started in the industry-related sectors. Assurance by the Legal Representatives To the best of our knowledge, and in accordance with the applicable reporting principles for inter - im financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year. Berndt-Michael Winter (Chairman of the Board of Directors) Dr. Antonius Wagner (Deputy Chairman of the Board of Directors) 15

18 Consolidated Interim Financial Statements Consolidated Statement of Income 6 Months 2nd Quarter January 1 - June 30, in thousand (restated) (restated) Net sales 649, , , ,003 Cost of sales 599, , , ,441 Gross profit 49,745 41,425 22,638 14,562 Selling costs 12,837 13,396 7,161 6,417 General and administrative costs 27,799 26,563 13,049 10,570 Other income 4,740 5,076 2,508 1,580 Other expenses 3,760 3,599 2,273 1,194 Earnings before interest and income taxes (EBIT) 10,089 2,943 2,663 2,039 Finance expenses, net 8,288 7,502 4,563 3,721 Earnings of continuing business operations before income taxes 1,801 4,559 1,900 5,760 Income taxes 1,578 1, Earnings of continuing business operations after income taxes 223 5,691 1,628 5,681 Earnings of discontinued business operations after income taxes 3,573 43,193 1,873 36,926 thereof loss from valuation of discontinued business operations 33,286 33,286 thereof income taxes Net result 3,350 48,884 3,501 42,607 Attributable to: Shareholders of Logwin AG 3,439 48,785 3,542 42,539 Minority shareholders Months 2nd Quarter January 1 - June 30, in (restated) (restated) Earnings per share basic and fully diluted: Income (loss) of continuing business operations attributable to the shareholders of Logwin AG Income (loss) of discontinued business operations attributable to the shareholders of Logwin AG Income (loss) attributable to the shareholders of Logwin AG Weighted average number of shares outstanding 111,474, ,474, ,474, ,474,987 The accompanying notes are an integral part of these Consolidated Financial Statements. 16

19 Consolidated Interim Financial Statements Consolidated Statement of Income Consolidated Statement of Comprehensive Income Consolidated Statement of Comprehensive Income January 1 - June 30, in thousand (restated) Net result 3,350 48,884 Unrealized profit/loss on securities, available-for-sale 0 Realized profit/loss on securities, available-for-sale 14 Unrealized profit/loss on commodity forwards Neutral effects from change in fair value reserve Actuarial gains and losses from pensions and other long-term personnel obligations 106 Effects from income taxes Neutral effects from actuarial gains and losses from pensions and other long-term obligations 106 Unrealized profit/loss on translation reserve 3, Neutral effects from change in translation reserve 3, Total result directly recognized in equity 3,354 1,438 Total net result 4 47,446 Attributable to: Shareholders of Logwin AG 85 47,347 Minority interest The accompanying notes are an integral part of these Consolidated Financial Statements. 17

20 Consolidated Statement of Cash Flows January 1 - June 30, in thousand (restated) Earnings before income taxes 1,801 4,559 Finance expenses, net 8,288 7,502 Earnings before interest and income taxes (EBIT) 10,089 2,943 Adjustments to reconcile net result to operating cash flow: Depreciation and amortization 6,752 7,630 Result from disposal of assets Other, net 861 1,854 Income taxes paid 1,763 1,036 Interest expenses paid 6,352 5,883 Changes in working capital, cash effective: Change in trade accounts receivable and other assets, cash effective 38,339 11,881 Change in trade accounts payable and other liabilities, cash effective 28,587 17,022 Change in inventory, cash effective 429 3,418 Operating cash flow of continuing business operations 1,245 1,554 Operating cash flow of discontinued business operations 10,621 2,877 Capital expenditures 3,340 3,059 Proceeds from disposals of non-current assets Proceeds from disposals of consolidated subsidiaries and other business operations 1,586 Payments for acquisitions of subsidiaries, net of cash acquired 189 1,261 Other changes in investing activities Investing cash flow of continuing business operations 1,442 3,556 Investing cash flow of discontinued business operations 11, Net cash flow of continuing business operations 197 2,002 Net cash flow of discontinued business operations 825 3,405 Changes in short-term financial liabilities 1, Repayment in long-term financial liabilities Repayment in lease obligations 881 1,180 Amount paid out to minority interest Other changes in financing activities 204 Financing cash flow of continuing business operations 2,934 3,476 Financing cash flow of discontinued business operations 1,304 1,591 Effects of exchange rate changes on cash 1, Changes in cash and cash equivalents 1,834 9,679 Cash and cash equivalents at beginning of year 64,563 63,204 Change 1,834 9,679 Cash and cash equivalents at end of period 62,729 53,525 The accompanying notes are an integral part of these Consolidated Financial Statements. 18

21 Consolidated Interim Financial Statements Consolidated Statement of Cash Flows Consolidated Balance Sheet Consolidated Balance Sheet Assets in thousand 2 June 30, 2010 Dec. 31, 2009 Cash and cash equivalents 62,729 64,563 Trade accounts receivable 168, ,277 therof receivables from factoring 21,617 13,203 Inventories 3,095 2,537 Income tax receivables 3,412 6,320 Other current assets 25,749 16,111 Assets of discontinued business operations 16, ,521 Total current assets 279, ,329 Goodwill 153, ,788 Property, plant and equipment 70,471 73,908 thereof land and buildings 52,070 53,015 Intangible assets 8,453 10,508 thereof software 6,610 8,966 Financial assets 1,326 1,708 Deferred income taxes 17,082 15,195 Other non-current assets Total non-current assets 251, ,878 Total assets 531, ,207 Liabilities and Shareholders Equity in thousand 2 June 30, 2010 Dec. 31, 2009 Short-term financial liabilities 2,831 4,056 Trade accounts payable 149, ,354 Lease obligations, short-term 1,570 1,860 Tax liabilities 5,541 2,119 Other short-term liabilities 44,248 35,544 Other short-term provisions 6,652 7,206 Liabilities of discontinued business operations 18, ,618 Total current liabilities 228, ,757 Bonds payable 128, ,846 Long-term financial liabilities 6,324 6,627 Lease obligations, long-term 21,984 22,353 Retirement and other employee-related obligations 17,536 17,729 Deferred income taxes 580 2,267 Other long-term liabilities 1,360 1,390 Other long-term provisions Total non-current liabilities 175, ,227 Total shareholders equity 127, ,223 Total liabilities and shareholders equity 531, ,207 The accompanying notes are an integral part of these Consolidated Financial Statements. 19

22 Consolidated Statement of Changes in Shareholders Equity Capital and reserves attributable to the shareholders of Logwin AG Ordinary sharesvoting, no-par value Additional paid-in capital Retained earnings and other reserves Result directly recongnized in equity Total group equity Minority interest Total shareholders equity in thousand 2 January 1, , ,002 97,860 6, ,313 3, ,345 Net result 48,785 48, ,884 Result directly recognized in equity, net of tax: Translation reserve Fair value reserve Acturial gains and losses from pensions Total net result 48,785 1,438 47, ,446 Offsetting additional paid-in capital and net loss 17,955 17,955 Changes in translation reserve of foreign entities Acquisition of minority interests (outstanding) Neutral effects from minority interests (outstanding) June 30, , , ,097 4, ,775 2, ,128 January 1, , , ,754 3, ,332 1, ,223 Net result 3,439 3, ,350 Result directly recognized in equity, net of tax: Translation reserve 3,292 3,292 3,292 Fair value reserve Acturial gains and losses from pensions Total net result 3,439 3, Reduction in registered capital through transfer to a reserve that can be only set off against losses 39,344 39,344 Offsetting additional paid-in capital and net loss 60,734 60,734 Amount paid out to minority interest Changes in scope of consolidation Other June 30, ,000 95,313 69, ,245 1, ,323 The accompanying notes are an integral part of these Consolidated Financial Statements. 20

23 Consolidated Interim Financial Statements Consolidated Statement of Changes in Shareholders Equity Notes to Consolidated Interim Financial Statements Notes to Consolidated Interim Financial Statements as of June 30, 2010 As a listed company Logwin AG is required to prepare an interim reporting. These consolidated interim financial statements are prepared according to the International Financial Reporting Standards (IFRS) as adopted by the European Union and are in accordance with these standards. In particular, the regulations of IAS 34 on interim financial reporting were applied. 1 Basis of Accounting The accounting policies as well as disclosures are based on the Consolidated Financial Statement of Logwin AG as of December 31, The fiscal year is equal to the calendar year. In addition to Logwin AG as the parent company, the scope of fully consolidated companies includes two domestic and 84 foreign companies as of June 30, 2010 (as of December 31, 2009: four domestic and 100 foreign companies). 2 Consolidation Scope The consolidated entities including Logwin AG have developed as follows: Dec. 31, 2009 Additions Disposals Jun. 30, 2010 Luxembourg Abroad Total The disposals are due to the abandonment of the business segment Road + Rail and the closed disposals of these activities. With a portion of 50 % four companies were shown. Not included are 23 subsidiar ies either dormant or generating a negligible volume of business. Their influence on the group s assets, liabilities, financial position and earnings is immaterial. 21

24 3 Segment Reporting The classification of segments is made according to the business segments of the Logwin Group. The segment structure reflects the current organizational and management structure of the Logwin Group. This means that reporting is in line with the requirements of IFRS 8. Transactions between the segments are measured at arm s length, similar to transactions with third parties. The information about the business segments is reported after consolidation of the intersegment transactions. Transactions between the segments have been eliminated in the column Consolidation. The result of each segment is measured by management based on operating income. This operating income is defined as EBIT before special items such as impairment on long-lived assets or goodwill and restructuring costs, as long as they have a relevant impact on the financial condition and results of operations. As far as possible, the gener - al administrative expenses of the holding companies have been allocated to the business segments in line with the principle of causality. The tables below set forth segment information of the continuing business segments for the periods ended June 30, 2010 and 2009: January 1 - June 30, 2010 in thousand 2 Solutions Air + Ocean Other Consolidation Group External sales 337, ,998 3, ,547 Intersegment sales 2,169 1,517 2,030 5,716 Net sales 339, ,515 6,009 5, ,547 Operating income (EBIT) 3,484 9,870 3,265 10,089 Finance expenses, net 8,288 Earnings before income taxes 1,801 January 1 - June 30, 2009 in thousand 2 Solutions Air + Ocean Other Consolidation Group External sales 337, ,983 2, ,105 Intersegment sales 2,511 2, ,475 Net sales 340, ,271 2,807 5, ,105 Operating income (EBIT) 1,179 6,856 2,734 2,943 Finance expenses, net 7,502 Earnings before income taxes 4,559 22

25 Consolidated Interim Financial Statements Notes to Consolidated Interim Financial Statements Assets and liabilities of discontinued business operations as of June 30, 2010 were as follows: 4 Discontinued Business Operations in thousand 2 Jun. 30, 2010 Dec. 31, 2009 Property, plant and equipment 7,928 51,880 Trade accounts receivable 1,785 66,754 Miscellaneous 6,552 11,887 Assets of discontinued business operations 16, ,521 Trade accounts payable 2,404 62,085 Financial liabilities 30,207 Retirement and other employee-related obligations 5,507 12,162 Miscellaneous 10,431 24,164 Liabilities of discontinued business operations 18, ,618 The change in the balance sheet item results primarily from planned deconsolidation in accordance with the dates of transfer (so-called closing) contractually determined in the relevant agreements. We would refer you to note 2 Consolidation Scope concerning the deconsolidated companies. In the first six months of 2010 there were no material changes in contingent liabilities in respect of bank and other guarantees, letters of comfort, assessments and other matters arising in the ordinary course of business. 5 Contingent Liabilities In late February 2010, the Austrian Federal Competition Authorities have filed proceedings against more than 40 Austrian logistics companies, including three companies of the Logwin Group, with the Vienna Higher Regional Court (Oberlandesgericht), in its function as a cartel court, for alleged breaches of Austrian and European competition law. The Federal Competition Authorities have requested that fines be levied in an amount yet to be specified. According to information obtained so far, Logwin AG does not agree with the legal analysis made by the Austrian Federal Competition Authorities. Since it is impossible to make a reliable estimate of the potential financial impact, no provision has been made for the current financial report and no contingent liability has been estimated. Logwin Road + Rail Austria GmbH was served with a claim from the Austrian customs au - thor ities in April 2010 demanding payment of import sales tax of around 16 million euros in duties for customs clearance that the company had performed with joint and several liability on behalf of customers in the period between December 2005 and March The exemption from import sales tax granted at that time was now revoked since the consignee of the goods was allegedly a participant in a missing trader (carousel) fraud. The company has lodged an appeal against the claim. Moreover, the company has an insurer s preliminary confirmation of cover. No provision has been made for this in the current financial report and no contingent liability has been estimated. 23

26 6 External Review The consolidated interim financial statements were neither audited according to articles 256 and 340 of the Luxembourg law dated August 10, 1915 nor limited reviewed by an auditor. 7 Subsequent Events There have been no major events between June 30, 2010 and the date of authorisation of the half-year financial report by the Logwin Group s Audit Committee. 24

27 Dates November 3, 2010 Publication of Nine-Month Financial Report 2010 April 13, 2011 Annual General Meeting Contact Public Relations Mara Hancker Phone: Telefax: Investor Relations Peer Brauer Phone: Telefax: Imprint Publisher Logwin AG 5, an de Laengten 6776 Grevenmacher Luxembourg Responsible Public Relations This report is available in both German and English and can be downloaded from our website Further copies of the report and additional information can be obtained from us free of charge. Telephone: Fax: ir-info@logwin-logistics.com

28 Logwin AG ZIR Potaschberg 5, an de Laengten 6776 Grevenmacher Luxembourg